Digiliti Money (DGLT) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 11, 2016
Document And Entity Information
Entity Registrant Name	CACHET FINANCIAL SOLUTIONS, INC.
Entity Central Index Key	1,487,906
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		3,049,648
Trading Symbol	CAFN
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 51	$ 45
Accounts receivable, net	2,123	703
Deferred commissions	43	66
Prepaid expenses	1,555	286
TOTAL CURRENT ASSETS	3,772	1,100
PROPERTY AND EQUIPMENT, net	633	664
GOODWILL	204	204
INTANGIBLE ASSETS, net	280	632
DEFERRED COMMISSIONS	17	36
OTHER NON-CURRENT ASSETS	184
TOTAL ASSETS	5,090	2,636
CURRENT LIABILITIES
Accounts payable	2,119	1,110
Accrued expenses	299	126
Accrued interest	979	632
Deferred revenue	657	890
Warrant and conversion feature liability, current	324
Current maturities of capital lease obligations	366	321
Short-term debt and current portion of long-term debt	6,586	4,768
TOTAL CURRENT LIABILITIES	11,330	7,847
CAPITAL LEASE, net of current maturities	179	271
LONG TERM DEBT, net of current portion	344	192
WARRANT LIABILITY, net of current portion	5,506	2,800
DEFERRED REVENUE	252	460
ACCRUED RENT	124	120
TOTAL LIABILITIES	17,735	11,690
SHAREHOLDERS' DEFICIT
Convertible preferred stock, $.0001 Par Value, 20,000,000 shares authorized, 43,530 and 44,030 shares issued and outstanding
Common shares, $.0001 Par Value, 500,000,000 shares authorized, 2,981,517 and 2,318,139 issued and outstanding
Additional paid-in capital	68,829	60,226
Accumulated deficit	(81,474)	(69,280)
TOTAL SHAREHOLDERS' DEFICIT	(12,645)	(9,054)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$ 5,090	$ 2,636

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Convertible preferred stock, par value	$ 0.0001	$ .0001
Convertible preferred stock, shares authorized	20,000,000	20,000,000
Convertible preferred stock, shares issued	43,530	44,030
Convertible preferred stock, shares outstanding	43,530	44,030
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common Stock, shares, issued	2,981,517	2,318,139
Common stock, shares outstanding	2,981,517	2,318,139

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
REVENUE	$ 2,307	$ 1,030	$ 5,771	$ 3,037
COST OF REVENUE	1,334	945	3,942	2,813
GROSS PROFIT	973	85	1,829	224
OPERATING EXPENSES
Sales and Marketing	1,015	734	3,103	2,490
Research and Development	479	488	1,407	2,134
General and Administrative	1,191	1,035	3,246	3,035
TOTAL OPERATING EXPENSES	2,685	2,257	7,756	7,659
OPERATING LOSS	(1,712)	(2,172)	(5,927)	(7,435)
INTEREST EXPENSE AND OTHER NON-CASH FINANCING CHARGES	2,482	168	4,650	1,653
SHARE PRICE CONVERSION ADJUSTMENT				3,705
MARK-TO-MARKET WARRANT AND DEBT (INCOME) EXPENSE	(108)	4,624	1,938	6,209
OTHER (INCOME) EXPENSE	(33)		(325)	14
NET LOSS	(4,053)	(6,964)	(12,190)	(19,016)
LESS: CUMULATIVE UNPAID PREFERRED STOCK DIVIDENDS	(122)	(110)	(355)	(144)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (4,175)	$ (7,074)	$ (12,545)	$ (19,160)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic and fully diluted	2,855,973	2,040,156	2,704,358	1,644,889
Net loss per common share - basic and diluted	$ (1.46)	$ (3.47)	$ (4.64)	$ (11.65)

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Shareholders' Deficit (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands	Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2015			$ 60,226	$ (69,280)	$ (9,054)
Balance, shares at Dec. 31, 2015	44,030	2,318,139
Conversion of preferred stock to common stock
Conversion of preferred stock to common stock, shares	(500)	10,132
Preferred dividend paid with common stock			4	(4)
Preferred dividend paid with common stock, shares		802
March 2016 equity offering, net of costs			1,182		1,182
March 2016 equity offering, net of costs, shares		245,226
Warrant exercises			1,605		1,605
Warrant exercises, shares		328,710
Issuance of warrants and price adjustments			3,823		3,823
Conversion of warrant liability to additional paid-in capital			1,230		1,230
Issuance of common stock for professional services			262		262
Issuance of common stock for professional services, shares		43,860
Share-based compensation			435		435
Share-based compensation, shares		22,539
Issuance of common stock under Associate Stock Purchase Plan			62		62
Issuance of common stock under Associate Stock Purchase Plan, shares		12,109
Net loss				(12,190)	(12,190)
Balance at Sep. 30, 2016			$ 68,829	$ (81,474)	$ (12,645)
Balance, shares at Sep. 30, 2016	43,530	2,981,517

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
OPERATING ACTIVITIES
Net loss	$ (12,190)	$ (19,016)
Adjustments to reconcile net loss to net cash used in operating activities:
Accretion of discount/amortization of financing costs	853	191
Change in fair value of warrant liability	1,938	7,270
Depreciation and amortization of intangibles	600	670
Stock compensation	475	302
Warrants and common stock issued for professional services	262	179
Amortization of deferred commissions	54	95
Debt/warrant inducement and share price adjustment	3,410	3,712
Net loss after adjustments for non-cash operating activities	(4,598)	(6,597)
Changes in operating assets and liabilities:
Accounts receivable	(1,604)	(249)
Deferred commissions	(11)	(24)
Prepaid and other expenses	(1,270)	131
Accounts payable	1,008	494
Accrued expenses	137	82
Accrued interest	348	195
Deferred revenue	(440)	291
Net cash used in operating activities	(6,430)	(5,677)
INVESTING ACTIVITIES
Purchase of fixed assets	(36)	(78)
Net cash used in investing activities	(36)	(78)
FINANCING ACTIVITIES
Proceeds from issuance of notes and warrants	5,181	750
Repayment of notes	(1,086)	(157)
Issuance of shares of common stock, net of costs	1,244	34
Warrants exercised	1,605
Issuance of shares of convertible preferred stock, net of costs		5,221
Payment of debt issuance costs	(180)
Repayment of capital lease	(291)	(116)
Proceeds from bank borrowing	69	113
Repayment of bank borrowing	(70)	(79)
Net cash provided by financing activities	6,472	5,766
NET INCREASE IN CASH AND CASH EQUIVALENTS	6	11
CASH AND CASH EQUIVALENTS
Beginning of period	45	112
End of period	51	123
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	66	157
NON-CASH INVESTING AND FINANCING TRANSACTIONS
Conversion of debt and interest to equity		752
Debt issuance costs in exchange for warrants		127
Capital lease obligations	209	838
Accounts payable cancelled		80
Fixed asset additions financed through capital lease	181	135
Common stock issued for preferred stock dividends	4	86
Conversion of warrant liability to additional paid-in-capital	1,230	420
Notes issued for capital lease obligation assumed by a director	$ 466

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Nature of Operations and Summary of Significant Accounting Policies	1. Nature of Operations and Summary of Significant Accounting Policies Nature of Business and Operations Overview Cachet Financial Solutions, Inc. (the “Company”) is a leading provider of software-as-a-service, or SaaS, financial technology, or fintech, solutions to the financial services industry. The Company provides traditional financial institutions and alternative financial service, or AFS, providers with innovative mobile and other solutions to enable them to offer a suite of leading-edge mobile financial services to their customers through the Internet, or cloud-based, access. As a SaaS provider, the Company develops, hosts and maintains software solutions that it licenses to its clients. The Company serves three primary markets in the United States: banks, credit unions and AFS providers, which includes providers of non-traditional banking services such as reloadable prepaid cards and check cashing services. In the future, the Company intends to expand outside of the United States, including Latin America and Europe, as opportunities present themselves. The Company has been expanding its suite of available fintech solutions. One of the Company’s recent solutions, Select Mobile™ Money, is an award-winning prepaid mobile money platform that seamlessly links various mobile banking features with a prepaid debit card issued by financial institutions or AFS providers. This solution enables card users to conveniently manage their card accounts through an easy-to-use integrated mobile application, or app, with multiple features downloaded onto their smart phone or tablet and, by adding a suite of available mobile financial services linked to their card accounts, enhances the card’s usefulness and the cardholder’s mobile banking experience. For example, prepaid cardholders using the Company’s application may deposit paper checks and direct payroll deposits into their prepaid card account, access cash from their prepaid card account at any automated teller machine, or ATM, and check their prepaid card account balance and transaction history. The Company believes that its Select Mobile Money solution is setting the industry standard for reloadable prepaid mobile money solutions. The Company’s Select Mobile Money solutions comprise two distinct mobile banking technology solutions: first, a white label mobile money platform for larger financial institutions and AFS providers that already have a reloadable prepaid card program and wish to enhance it by integrating a feature rich app; and second, an end-to-end reloadable prepaid card program, called Select Mobile Money-Express, or SMM-X, offered to all banks, credit unions and AFS providers of all sizes that would like to deploy a complete reloadable prepaid card program, comprising a prepaid debit card, an integrated mobile app and program management. The Company’s business has historically focused on offering a full suite of consumer and business remote deposit check capture, or RDC, products that enable financial institutions to provide their customers with the ability to conveniently deposit their checks remotely anytime, anywhere. While the Company continues to offer these solutions, the Company recently expanded its focus to include prepaid mobile money solutions. The Company’s latest innovations are a mobile remote payment capture solution, which the Company calls Select Mobile™ NowPay, which enables enterprises to accept check payments submitted via their customers’ mobile devices, and the Company’s mobile account opening solution, which the Company calls Select Mobile™ Account Opening, which streamlines the account opening process by utilizing photo imaging to capture customer data and auto-populate an account opening application form for checking, savings, credit card and other types of accounts. The Company’s business operations are conducted through its wholly owned subsidiary, Cachet Financial Solutions Inc., a Minnesota corporation (the “Subsidiary”). The Company was incorporated in Delaware in February 2010. In February 2014, the Company acquired the business of the Subsidiary, and changed its corporate name to “Cachet Financial Solutions, Inc.” Basis of Presentation The accompanying condensed consolidated financial statements of the Company included herein were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and Articles 8 and 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The information furnished includes all adjustments and accruals of a normal recurring nature, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods. The Subsidiary is the only entity with operational activity and therefore no intercompany transactions exist with the parent entity which would require elimination. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained within the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2015, filed with the SEC on April 14, 2016 (the “10-K”). Certain prior period amounts have been reclassified to conform to the current year’s presentation. These reclassifications did not have an impact on reported net loss for any of the periods presented. Capital Structure Change On June 2, 2016, the board of directors of the Company (the “Board of Directors”) adopted resolutions approving and recommending to the Company’s shareholders to approve a proposal to amend the Company’s Amended and Restated Certificate of Incorporation to effect a reverse split of outstanding shares of common stock of the Company, which was subsequently approved by the Company’s shareholders, and the ratio was set by the Board of Directors at 1:15 (the “Reverse Stock Split”). The Reverse Stock Split became effective on July 27, 2016. As a result of the Reverse Stock Split, the Company’s historical financial statements have been revised to reflect share counts and per share data as if the Reverse Stock Split had been in effect for all periods presented. Going Concern The accompanying condensed consolidated financial statements have been prepared on the basis that the Company will continue as a going concern. From inception to September 30, 2016, the Company has accumulated a deficit of approximately $81.5 million, and, as of September 30, 2016, current liabilities exceeded current assets by approximately $7.6 million. The Company believes, based on its current cash flow forecast, it has enough cash to continue operations through December 31, 2016 and beyond. This forecast is dependent upon successful completion of the October Private Placement (described below). If the Company does not successfully complete the October Private Placement, the Company may not be able to continue operations. In October 2016, the Company commenced a private placement (the “October Private Placement”), in which it intends to raise up to $8.0 million of cash proceeds to fund its marketing and sales activities, working capital, debt service and other corporate purposes. See Note 12 “Subsequent Events.” Summary of Significant Accounting Policies There have been so significant changes to the Company’s significant accounting policies during the nine months ended September 30, 2016, other than the updates described below and in the subsequent notes. Further information regarding the Company’s significant accounting policies can be found in the 10-K. Net Loss Per Common Share Basic and diluted net loss per common share for all periods presented is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common shares outstanding and common share equivalents outstanding, when dilutive. Potentially dilutive common share equivalents include common shares which would potentially be issued pursuant to stock warrants, stock options, convertible preferred stock and convertible note agreements. Common share equivalents are not included in determining the fully diluted loss per share if their effect is antidilutive. The following table reflects the amounts used in determining net loss per share: Three Months Ended Nine Months Ended (In thousands, except share and September 30, September 30, September 30, September 30, per share data) 2016 2015 2016 2015 Net loss $ (4,053 ) $ (6,964 ) $ (12,190 ) $ (19,016 ) Less: Cumulative unpaid preferred stock dividends (122 ) (110 ) (355 ) (144 ) Net loss attributable to common shareholders (4,175 ) (7,074 ) (12,545 ) (19,160 ) Weighted average common shares outstanding 2,855,973 2,040,156 2,704,358 1,644,889 Net loss per common share – basic and diluted $ (1.46 ) $ (3.47 ) $ (4.64 ) $ (11.65 ) The following potential common shares were excluded from the calculation of diluted loss per share from continuing operations and diluted net loss per share attributable to common shareholders because their effect would have been anti-dilutive for the periods presented: As of September 30, 2016 September 30, 2015 Convertible Preferred Stock 1,006,100 670,475 Stock Options 334,173 250,234 Warrants 2,936,889 1,615,617 4,277,162 2,536,326 Fair Value of Financial Instruments The Company uses fair value measurements to record fair value adjustments for certain financial instruments and to determine fair value disclosures. Warrants issued with price protection features are recorded at fair value on a recurring basis. The Company considers the carrying value of cash and cash equivalents, accounts receivable and accounts payable to approximate fair value due to the short maturity of these instruments. With respect to the determination of fair values of financial instruments, there are the following three levels of inputs: Level 1 Inputs – Quoted prices for identical instruments in active markets. Level 2 Inputs – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Inputs – Instruments with primarily unobservable value drivers. The warrants that are carried at fair value are valued using level 3 inputs utilizing a Black-Scholes option pricing model under probability-weighted estimated outcomes. The conversion features that are carried at fair value are valued by a third-party valuation specialist. There were no transfers into or out of level 3 of the fair value hierarchy during the three or nine months ended September 30, 2016. Use of Estimates The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that may affect certain reported amounts and disclosures in the consolidated financial statements. Actual results could differ from those estimates. Significant estimates include the Company’s ability to continue as a going concern, the allowance for doubtful accounts, assumptions used to value stock options and warrants, conversion incentive and share purchase price adjustment, and the value of shares of common stock issued for services. Recent Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers. In August 2014, the FASB issued ASU 2014-15, “ Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In April 2015, the FASB issued ASU 2015-03, “ Simplifying the Presentation of Debt Issuance Costs, In January 2016, the FASB issued ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities, In February 2016, the FASB issued ASU 2016-02 “ Leases, In March 2016, the FASB issued ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting. In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments – Credit Losses, In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows,

Prepaid Expenses

Prepaid Expenses	9 Months Ended
	Sep. 30, 2016
Prepaid Expenses
Prepaid Expenses	2. Prepaid Expenses Prepaid expenses of $1.6 million as of September 30, 2016 primarily consisted of prepaid offering costs, licenses and maintenance fees, or deposits with, the providers of RDC software capabilities to the Company. In October 2016, the Company decided not to proceed with the offering pursuant to the Company’s Registration Statement on Form S-1 (File No. 333-212610) previously filed by the Company with the SEC (the “Registration Statement,” and collectively, the “Offering”). As a result, the Company will recognize as an expense the prepaid costs associated with the Offering in the fourth quarter of 2016. See Note 12 “Subsequent Events.” Prepaid expenses of approximately $286,000 as of December 31, 2015 primarily consisted of licenses and maintenance fees, or deposits with, the providers of RDC software capabilities to the Company.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	3. Property and Equipment Property and equipment consists of the following: As of (In thousands) September 30, 2016 December 31, 2015 Computer equipment $ 251 $ 227 Data center equipment 1,122 1,011 Purchased software 770 692 Furniture and fixtures 94 90 Leasehold improvements 75 75 Total property and equipment 2,312 2,095 Less: accumulated depreciation (1,679 ) (1,431 ) Net property and equipment $ 633 $ 664 The Company’s depreciation expense for the periods presented is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) 2016 2015 2016 2015 Depreciation expense $ 88 $ 96 $ 248 $ 228

Financing Arrangements

Financing Arrangements	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Financing Arrangements	4. Financing Arrangements The Company has obtained debt financing through bank loans, loans from directors and other affiliated parties and unaffiliated third party investors. Certain of the debt was issued with warrants that permit the investor to acquire shares of the Company’s common stock at prices as specified in the individual agreements. See Note 8 “Shareholders’ Deficit.” The Company’s debt and accrued interest outstanding as of the periods presented consisted of the following: Principal Balance Accrued Interest (Dollar amounts in thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Notes Payable to Directors and Affiliates $ 2,697 $ 1,748 $ 367 $ 232 Convertible Term Loan, due December 2016, interest at 10% 2,300 2,300 543 370 Convertible Notes, due 2016 and 2017, interest at 0% 1,093 — — — Series Subordinated Note, due January 2016, interest at 12% 415 415 39 2 Notes Payable, due October 2016, interest between 8.25% and 12% 67 75 30 28 Note Payable, due August 2021, interest at 0% 192 192 — — Installment Note Payable – Bank 260 261 — — Total 7,024 4,991 979 632 Unamortized deferred financing costs (94 ) (31 ) Total debt, net 6,930 4,960 Less: short-term debt and current portion of long-term debt 6,586 4,768 Long-term debt, net of current portion $ 344 $ 192 Future maturities of long-term debt as of September 30, 2016 are as follows (in thousands): Three months ending December 31, 2016 $ 3,894 2017 2,814 2018 115 2019 9 2020 - 2021 192 Thereafter - $ 7,024 Notes Payable to Directors and Affiliates The Company has historically relied on two directors of the Company, Michael J. Hanson (“Mr. Hanson”) and James L. Davis (“Mr. Davis,” and collectively with Mr. Hanson, “Messrs. Hanson and Davis”), to provide financing to fund the Company’s operations. See Note 10 “Related Party Transactions.” Convertible Term Loan, due December 2016, interest at 10% In December 2013, the Company entered into a loan and security agreement with Trooien Capital, LLC (“Trooien Capital,” and the Company refers to this note as the “Trooien Capital Note”) for a principal amount of up to $4 million. Borrowings under the Trooien Capital Note bear interest at 10% and mature in December 2016. Under the agreement, Trooien Capital has the right, but not the obligation, to advance additional amounts up to the $4 million. Trooien Capital has the right to request shares of common stock, rather than cash, as payment for interest. Trooien Capital had two conversion rights under the Trooien Capital Note, the first of which has expired. Under the second conversion right, Trooien Capital has the right, through the maturity date of the note, to convert the principal and accrued interest into common stock at a conversion rate equal to 125% of the price at which the common stock was sold in the Company’s July 2014 initial public offering. Under the terms of this conversion agreement, Trooien Capital will receive 100% warrant coverage. On or about May 24, 2016, Trooien Capital commenced legal action against the Company. See Note 6 “Commitments and Contingencies.” Convertible Notes, due 2016 and 2017, interest at 0% For accounting purposes, the Company accounts for the debt, warrants and conversion features of the following convertible notes using an allocation process. As a result, the reported amount of the debt has been reduced and will be accreted to face value through each of the maturity dates. Convertible notes that will convert upon listing During the nine months ended September 30, 2016, the Company issued to several investors convertible notes, which are unsecured and do not bear any interest. Each of the investors may elect to convert the principal amount of the notes into shares of the Company’s common stock at any time before the maturity date of the notes at a conversion price equal to the lower of $5.55 and 80% of the per share sale price of the Company’s common stock in its next underwritten public offering. The Company has the right to require each of the investors to convert the notes into shares of its common stock at that conversion price if the Company’s common stock is listed on the Nasdaq Capital Market, the Nasdaq Global Market or the Nasdaq Global Select Market. In addition, under the Company’s agreement with each of the investors, it is required to file with the SEC a registration statement covering the resale of the shares of its common stock issuable under the notes and the warrants within 21 days after the offering, or 90 days following the date on which the Company’s current financing plan is terminated. If the Company fails to file a registration statement in a timely manner, the Company will be required to issue to each of the investors additional warrants to purchase shares of its common stock. The following table provides additional information about each financing. Note Date Maturity Date Proceeds (1) Principal (1) Fair Value (2) (in thousands) June 1, 2016 June 1, 2017 $ 1,000 $ 1,053 $ 1,262 August 11, 2016 August 11, 2017 500 526 631 September 15, 2016 September 15, 2017 95 100 120 (1) As provided for in the relevant agreements (2) As of September 30, 2016 Convertible notes to June 9, 2016 Investors On June 9, 2016, the Company agreed to issue to each of Old Main Capital, LLC , The notes do not bear any interest, other than during an event of default. Each tranche funded under a note is due and payable in full six months after the date of funding. The first tranche is due on December 9, 2016. In addition to providing three days’ advance written notice to the June 9, 2016 Investors, under the terms of each note upon repayment of the note (including on the maturity date), the Company is obligated to pay a 20% premium on the then outstanding principal and any accrued default interest then due on the note, which in the aggregate is equal to 120% of the then outstanding principal and any accrued default interest then due on the note. Series Subordinated Note, due January 2016, interest at 12% The series subordinated note was due in January 2016. As of September 30, 2016, the Company has not repaid the note. On March 31, 2016, the holder of the note commenced legal action against the Company. See Note 6 “Commitments and Contingencies.” Notes Payable, due October 2016, interest between 8.25% and 12% In January 2014, the Company assumed notes payable in connection with the reverse merger transaction pursuant to which the Company acquired the Subsidiary. During the nine months ended September 30, 2016, the Company repaid three of the notes for approximately $11,000, including principal and accrued interest. During 2016, the Company also extended the maturity date of the remaining notes to August 2016 and then to October 2016. In October 2016, the Company further extended the maturity date of these notes to [March 2017]. See Note 12 “Subsequent Events.” Note Payable, due August 2021, interest at 0% In August 2014, the Company entered into a 0% interest, $192,000 note payable to the State of Minnesota as part of an angel loan program fund. There are no financial loan covenants associated with the loan, which has a maturity date of August 2021. The loan contains a provision whereby if the Company transfers more than a majority of its ownership, the loan becomes immediately due, along with a 30% premium amount of the principal balance. In addition, if the Company is more than 30 days past due on any payments owed under the loan, the interest rate increases to 20% per annum. Installment Note Payable – Bank In January 2016, the Company entered into an installment note payable with a bank, replacing a previous note, for a principal amount of approximately $330,000. The company received the net amount between the two notes, or approximately $69,000, which was primarily used for working capital purposes. The note bears interest at the prime rate plus 1%, but not less than 5%. The note is due in January 2019. The prime rate of interest was 3.50% as of September 30, 2016 and December 31, 2015. Other Information Regarding Debt Except for the Convertible Notes, Due 2016 and 2017, as a result of either the short term duration or recency of its financings or refinancings, the Company believes that the estimated fair value of its outstanding indebtedness approximates market value.

Employee Benefit Plan

Employee Benefit Plan	9 Months Ended
	Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plan	5. Employee Benefit Plan The Company has a defined contribution 401(k) saving plan covering all employees satisfying certain eligibility requirements. The plan permits, but does not require, contributions by the Company. The Company did not make any contributions pursuant to the plan during the three and nine months ended September 30, 2016 and 2015.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies Operating Leases The Company leases approximately 22,000 square feet of office space in Chanhassen, Minnesota. The lease commenced on May 1, 2012 and extends through January 2022. In addition to the office space, the Company leases certain office furniture and equipment under operating leases through November 2018. The Company has two vehicles on 36-month leases which commenced in January 2015 and June 2015, respectively. The Company also entered into a lease agreement, in April 2014, for a total of 1,812 square feet of office space in Dallas, Texas related to the employees retained as part of its acquisition of Select Mobile Money. The lease commenced on May 1, 2014 and extends through June 30, 2017. The Company has sub-leased the Dallas, Texas office space, commencing on November 19, 2015 and expiring on June 30, 2017. The Company also has various computer leases with three year terms. The Company is recording rental expense on a monthly basis. Rent expense pursuant to operating leases for the periods presented is as follows: Three Months Ended Nine Months Ended (In thousands) September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Rent expense $ 109 $ 112 $ 345 $ 365 The Company’s headquarters office space lease calls for rent increases over the term of the lease. The Company records rent expense on a straight-line basis using the average rent for the term of the lease. The excess of the expense over cash rent paid is shown as accrued rent. Future minimum lease payments pursuant to operating leases as of September 30, 2016 are as follows (in thousands): Three months ending December 31, 2016 $ 87 2017 292 2018 242 2019 241 2020 248 Thereafter 277 $ 1,387 Capital Leases The total cost of capital leased assets, net of accumulated depreciation, included in property and equipment as of September 30, 2016 and December 31, 2015 totaled approximately $512,000 and $501,000, respectively. Future minimum lease payments pursuant to capital leases as of September 30, 2016 are as follows (in thousands): Three months ending December 31, 2016 $ 117 2017 374 2018 80 2019 33 2020 3 Total payments 607 Less: portion representing interest (4 ) Principal portion 603 Less: unamortized deferred financing costs (58 ) Capital lease balance 545 Less: current maturities of capital lease obligations (366 ) Capital lease, net of current maturities $ 179 Litigation Cachet Banq An entity named Cachet Banq contacted the Company in December 2010 relative to their U.S. Trademark Registration No. 2,857,465 (registered on June 29, 2004) for the standard character mark “CACHET” covering “financial services, namely automated clearing house processing services for the payroll service industry.” Cachet Banq has alleged that the Company’s use of “CACHET” infringes on their federal trademark registration. On or about March 4, 2013, Cachet Banq filed a trademark infringement lawsuit against the Company in the United States District Court for the Central District of California. The parties filed cross motions for summary judgment. The initial brief was filed on May 30, 2014, replies were filed on June 26, 2014 and the court took these motions under advisement on July 8, 2014. The Company has denied that its use of the character mark “CACHET” infringes on Cachet Banq’s purported rights in their mark. On September 21, 2015, the court issued an order (1) granting Cachet Banq’s motion for summary judgment, (2) denying the Company’s motion for summary judgment, and (3) ordering the parties to submit memoranda regarding remedies. The last of those memoranda were submitted on October 12, 2015. On November 30, 2015, the Court entered an additional order providing for an additional period of discovery and additional briefing regarding remedies. Pursuant to the Court’s order, the parties engaged in a renewed period of discovery focused on remedies and submitted additional briefing. The discovery was completed and all additional briefing was submitted to the Court by April 19, 2016. According to their briefing on the remedies, Cachet Banq is not presently seeking any monetary damages as a result of the alleged infringement, but rather an injunction. On October 27, 2016, the Court entered a judgment and permanent injunction against the Company which, effective from April 15, 2017, enjoins the Company and its officers, directors, agents, servants, employees and attorneys and all persons in active concert or participation with any of the foregoing from (i) using any mark, name, symbol, logo or other indicia that incorporates or is confusingly similar to the term “CACHET” in any way that relates to financial services, and (ii) offering for sale, soliciting sales, promoting, distributing, importing, advertising, or selling any products or services, in any medium, under any mark, name, symbol, logo or other indicia that incorporates or is confusingly similar to the term “CACHET” which in any way relate to financial services. The Company is also ordered to destroy or discard all signs, products, advertisements, packaging, literature, business cards, and any other promotional material, which feature the term “CACHET” or a term confusingly similar thereto, both physical and electronic, which are in any way related to financial services, in each case except for the permitted use described below. Under the injunction, the Company must complete its transition to a yet-to-be determined new company name by no later than April 15, 2017. The Company is permitted to reference its current name in an explanatory fashion on signs, products, advertisements, packaging, literature, business cards, and any other promotional material to introduce the new name of the Company in a font size no greater than one-third the font-size of the yet-to-be determined new company name. This permitted use provision terminates on June 30, 2017, by which date the Company must cease from using the explanatory statement in any manner and destroy or discard all materials featuring the explanatory statement. By no later than July 12, 2017, the Company must file a declaration, under penalty of perjury, setting forth in detail the manner and form in which the Company has complied with the injunction. The Company intends to comply with the injunction and will pursue a re-branding of the Company. The Company has not yet begun to assess the financial impact of re-branding the Company. While the Company expects that the re-branding of the Company will require the Company to devote significant resources to advertising and marketing new brands and will cause the Company to incur substantial costs, the Company has yet to determine the scope of the costs and other implications associated with such re-branding, as such, the Company has not provided for an accrual of costs associated with complying with the injunction. The Court denied Cachet Banq’s request for attorney’s fees and costs. The Company’s insurance covered much of the legal fees related to this legal proceeding and the Company’s lawyers agreed to write-off certain accounts payable to them and owed by the Company in excess of the insurance proceeds received. As a result, the Company has recognized other income of approximately $33,000 and $325,000 for the three and nine months ended September 30, 2016, respectively. Series Subordinated Note On March 31, 2016, the holder of the series subordinated note referred to in Note 4 “Financing Arrangements” commenced an action against the Company in Hennepin County Court in the State of Minnesota, alleging that the Company breached the terms of the note and seeking to collect alleged amounts due and owing under the note. The holder of the note alleges that the Company is in default and owes the note holder approximately $695,000 plus interest and assessments accruing after April 1, 2016. The dispute centers on the note holder’s interpretation of the agreement. Based on the note holder’s interpretation of the agreement, the note holder seeks an extraordinary amount in alleged liquidated damages (approximately $300,000 on an outstanding debt of approximately $415,000). The Company disputes the allegations of the note holder and intends to vigorously defend the claim. Among other things, the Company contends the note holder’s interpretation of the agreement is unenforceable under Minnesota law. The note holder recently moved for summary judgment and a hearing on that motion was held on August 9, 2016 before the Fourth Judicial District in Hennepin County in Minnesota where the Court heard both arguments and took the motion under advisement. On October 19, 2016, the Court entered an order granting in part and denying in part the motion for summary judgment. The alleged default could subject the Company to claims of default or cross default by the Company’s other lenders. At this time no other lender has asserted such a claim. Trooien Capital Note On or about May 24, 2016, the Company received notice from Trooien Capital alleging that the Company has not made interest payments in accordance with the terms of the Trooien Capital Note, and as a result of such alleged breach, all outstanding amounts under the Trooien Capital Note are accelerated. Pursuant to the Trooien Capital Note, the Subsidiary granted to Trooien Capital a security interest in all of the Subsidiary’s property and assets, including all property that the Subsidiary will acquire in the future, as collateral security for the payment and performance of the Subsidiary’s obligations under the Trooien Capital Note. The Company disputes Trooien Capital’s claim because the Company has been accruing interest expense in accordance with the terms of the agreement for more than two years and Trooien Capital has not objected to that practice. On or about May 27, 2016, the Subsidiary filed a verified complaint with the Fourth District Court of Hennepin County in Minnesota naming Trooien Capital as a defendant and seeking a declaratory judgment against Trooien Capital with respect to this claim. On June 10, 2016, Trooien Capital answered the Subsidiary’s complaint and asserted counterclaims. On June 20, 2016, Trooien Capital moved to appoint a receiver for the Subsidiary. On June 30, 2016, the Company filed a notice of motion and motion to dismiss a portion of the counterclaims. On July 19, 2016, the Company filed with the Fourth District Court of Hennepin County in Minnesota a memorandum of law and supporting documents requesting that the Court deny Trooien Capital’s motion to appoint a receiver for the Subsidiary. The Company believes that Trooien Capital’s claim is inconsistent with the Trooien Capital Note and the parties’ conduct during the two years since the Subsidiary entered into that agreement. The Company also believes that Trooien Capital’s motion and the remedy sought lacks sufficient evidence and factual support under the applicable legal standard and that Trooien Capital’s motion failed to establish, by clear and convincing evidence, that the appointment of a receiver is necessary. On October 18, 2016, a hearing on the motions was held and the Court took both motions under advisement. On October 21, 2016, the Court entered an order denying Trooien Capital’s motion to appoint a receiver and denying the Company’s motion to dismiss a portion of Trooien Capital’s counterclaims. Financial Service Agreements In August 2015, the Company entered into an agreement with a firm to provide investor relations and financial advisory services. The initial six-month term of the agreement required the issuance of 26,667 shares of the Company’s common stock and payments totaling $30,000. After the initial six-month term, the Company had the option to extend for an additional six months which required issuing the firm additional shares of common stock and payment totaling $30,000. In February 2016, the Company renewed the services agreement and issued the firm an additional 31,000 shares of common stock for another six months of investor relations and financial advisory services. The Company renewed the services agreement further in August 2016 and issued to the firm an additional 12,000 shares of common stock. In January 2016, the Company entered into an agreement with an independent contractor to provide investor relations, capital raising services and other consulting duties. The agreement requires annual compensation for services of $100,000 as well as discretionary bonuses paid in cash or stock based on the consultant’s ability to complete particular projects for the Company. The term of this agreement is for 12 months commencing on January 1, 2016. The agreement is cancelable by either party with a 30-day notice.

Goodwill and Finite Life Intang

Goodwill and Finite Life Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Finite Life Intangible Assets	7. Goodwill and Finite Life Intangible Assets The Company assesses the carrying amount of its goodwill for potential impairment annually or more frequently if events or a change in circumstances indicate that impairment may have occurred. The Company performs an impairment test for finite-lived assets, such as intangible assets, and other long-lived assets, such as fixed assets, whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The Company has only one operating and reporting unit that earns revenues, incurs expenses and makes available discrete financial information for review by the Company’s chief operating decision maker. Accordingly, the Company completes its goodwill impairment testing on this single reporting unit. In conducting the annual impairment test of the Company’s goodwill, qualitative factors are first examined to determine whether the existence of events or circumstances indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a two-step impairment test is applied. In the first step, the Company calculates the fair value of the reporting unit and compares that amount with the reporting unit’s carrying amount, including goodwill. If the carrying amount exceeds the fair value, the Company performs the second step of measuring the amount of the goodwill impairment loss, if any, by comparing the implied fair value of the reporting unit’s goodwill to the carrying amount of goodwill. This requires performing a hypothetical application of the acquisition method to determine the implied fair value of goodwill after measuring the reporting unit’s identifiable assets and liabilities. The Company had recorded Goodwill of $204,000 as of September 30, 2016 and December 31, 2015. The Company conducted its annual goodwill impairment test as of December 31, 2015 and determined there to be no indication of impairment related to the Company’s goodwill. The Company does not believe that an indicator of impairment exists as of September 30, 2016 and will continue to monitor conditions and changes that could indicate an impairment of goodwill. Identified intangible assets are summarized as follows: Amortizable September 30, 2016 Period Gross Accumulated Net (Dollar amounts in thousands) (years) Assets Amortization Assets Customer Contracts 3 - 5 $ 784 $ (633 ) $ 151 Proprietary Software 3 917 (788 ) 129 Total identified intangible assets $ 1,701 $ (1,421 ) $ 280 Amortizable December 31, 2015 Period Gross Accumulated Net (Dollar amounts in thousands) (years) Assets Amortization Assets Customer Contracts 3 - 5 $ 784 $ (510 ) $ 274 Proprietary Software 3 917 (559 ) 358 Total identified intangible assets $ 1,701 $ (1,069 ) $ 632 Amortization expense for identified intangible assets is summarized below: Three Months Ended Nine Months Ended Statement of Operations (In thousands September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Classification Customer Contracts $ 41 $ 71 $ 123 $ 213 Cost of Revenue Proprietary Software 76 76 229 229 Cost of Revenue Total amortization on identified intangible assets $ 117 $ 147 $ 352 $ 442 Based on the identified intangible assets recorded as of September 30, 2016, future amortization expense is expected to be as follows (in thousands): Three months ending December 31, 2016 $ 118 2017 114 2018 38 2019 10 $ 280

Shareholders' Deficit

Shareholders' Deficit	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Shareholders' Deficit	8. Shareholders’ Deficit Convertible Preferred Stock In June 2015, the Company issued 44,030 shares of Series C Convertible Preferred Stock at $100.00 per share and issued five-year warrants to purchase 670,475 shares of its common stock at $4.94 per share, as adjusted, in a private placement. The Series C Preferred Stock entitles its holders to a 10% per annum dividend, payable quarterly in cash or in additional shares of Series C Preferred Stock (or a combination of both) as determined by the Company, and may be converted to the Company’s common stock at the option of a holder at a conversion price of $4.94 per share. The Series C Preferred Stock contains anti-dilution conversion price protection allowing the stock’s conversion price to adjust, prior to conversion, should the Company sell common stock at a price below the then current conversion price. The Series C Preferred Stock will automatically convert into common stock upon the occurrence of any of the following: (a) an underwritten public offering of shares of the Company’s common stock providing at least $10 million in gross proceeds, (b) the Company’s common stock closing price being greater than 100% above the conversion price then in effect for at least 40 of 60 consecutive trading days, (c) four years after the closing of the offering of the Series C Preferred Stock, or (d) the written consent of holders representing 50% of the issued and outstanding Series C Preferred Stock. The holders of the Series C Preferred Stock are entitled to vote their shares on an as-converted basis and are entitled to a liquidation preference equal to the stated value (i.e., purchase price) of their shares plus any accrued but unpaid dividends thereon. In March 2016, an investor converted 500 shares of Series C Convertible Stock at the conversion price of $4.94 per share, as well as received credit for all unpaid cumulative dividends earned through the date of conversion. The investor received a total of 10,934 shares of common stock. As of September 30, 2016 and December 31, 2015, the Company had outstanding 43,530 and 44,030, respectively of its Series C Preferred Stock. Common Stock The Company’s common stock issuances for the nine months ended September 30, 2016 are as follows: Common Stock Balance, December 31, 2015 2,318,139 Conversion of preferred stock to common stock and payment of preferred dividend paid with common stock 10,934 Issuance of common stock for professional services 43,860 March 2016 equity offering 245,226 Share-based compensation 22,539 Issuance of common stock under Associate Stock Purchase Plan 12,109 Warrant exercises 328,710 Balance, September 30, 2016 2,981,517 Net proceeds to the Company pursuant to common stock issuances for the nine months ended September 30, 2016 totaled $3.6 million. Warrants The Company’s warrant activity for the nine months ended September 30, 2016 consisted of the following: Number of Weighted Shares Issuable Weighted Avg. Remaining Under Warrants Exercise Price Life (Years) Balance, December 31, 2015 1,723,674 $ 10.95 3.98 Issued 319,392 5.44 Exercised (133,148 ) 4.94 Balance, March 31, 2016 1,909,918 10.35 3.88 Issued 613,380 5.52 Exercised (63,345 ) 4.94 Balance, June 30, 2016 2,459,953 9.30 3.94 Issued 613,135 5.44 Exercised (136,199 ) 4.94 Balance, September 30, 2016 2,936,889 $ 8.70 3.92 Certain of the Company’s warrants have a cashless exercise provision, whereby the Company issues shares of common stock based on the difference between the weighted-average trading price of the Company’s common stock for the five consecutive trading days ending on the date immediately preceding the date of the warrant exercise and the stated exercise price of the warrants. As a result of these cashless exercise provisions, the number of common shares issued pursuant to warrant exercises may be different than the total number of warrants exercised during a given period. Warrants that contain anti-dilution price protection are carried as liabilities on the condensed consolidated balance sheets until they are either exercised or no longer subject to anti-dilution protection, after which the value of the warrants is reclassified to additional paid-in capital. The fair value of warrants recognized as liabilities and carried at fair value is determined each quarter using the Black-Scholes option pricing model. As of September 30, 2016 and December 31, 2015, the Company’s warrant and conversion feature liabilities consisted of the following: Shares Current Exercise Balance as of Counterparty Issuable Price September 30, 2016 December 31, 2015 (In thousands) Former senior lender 175,911 $ 3.90 $ 691 $ 537 Mr. Davis - - - 45 Series A, B and C preferred shareholders 597,790 4.94 2,632 2,175 Lincoln Park 115,400 4.94 516 43 Lender of October 2016 notes payable 10,000 4.94 45 - June 9, 2016 Investors 200,000 4.94 894 - Convertible noteholders (1) 754,957 Various 903 - Messrs. Hanson and Davis 33,334 4.94 149 - Warrant and conversion feature liability, total 5,830 2,800 Less: current portion of warrant and conversion feature liability (324 ) - WARRANT LIABILITY $ 5,506 $ 2,800 (1) Shares issuable includes warrants to purchase 170,698 shares of commom stock at $5.55 per share, 186,914 shares of common stock at the lower of $5.55 per share and 80% of the per share offering price in the Company’s next underwritten public offering and 397,345 shares issuable upon conversion of the principal amount of the underlying notes at the conversion price of $5.55 per share. The terms of the convertible note agreements specify that the Company will issue shares of common stock at the lower of $5.55 per share or 80% of the price paid per share in an underwritten public offering. The Company utilizes the Black-Scholes option pricing model when determining the value of warrants issued using the following significant assumptions: Stock price: Published trading market values of the Company’s common stock as of the grant date of the warrants. Exercise price: The stated exercise price of the warrant. Expected term: The Company’s assumption of the term of the warrant. Expected dividend: The rate of dividends that the Company expects to pay over the term of the warrant. Volatility: For periods prior to the Company’s public offering, volatility is estimated based on the volatility of comparable peer companies that are publicly traded, and for later periods the Company includes its actual common stock trading history. Risk-free interest rate: The daily United States Treasury yield curve rate. The Company obtains a valuation report prepared by a third-party valuation specialist to assist in determining the fair value of the conversion features associated with certain of its convertible notes. The fair value of the warrants issued was determined using the Black-Scholes option pricing model and the following assumptions for the periods presented: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Stock price $5.75 to $8.85 N/A $4.05 to $11.25 $6.57 to $16.80 Exercise price $4.94 to $6.90 N/A $4.94 to $6.90 $6.60 to $17.25 Expected term 2.5 years N/A 2.5 years 2.5 years Expected dividend 0 % N/A 0 % 0 % Volatility 86% to 94 % N/A 65% to 94 % 27 % Risk-free interest rate 0.69% to 0.92 % N/A 0.69% to 1.31 % 0.85% to 1.37 % There were no warrants issued during the three months ended September 30, 2015.

Stock-Based Compensation and Be

Stock-Based Compensation and Benefit Plans	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation and Benefit Plans	9. Stock-Based Compensation and Benefit Plans Stock Options and Performance Awards On February 9, 2010, the board of directors adopted the 2010 Equity Incentive Plan (the “2010 EIP”), which was approved by the shareholders of the Company. Participants in the plan include the Company’s employees, officers, directors, consultants, or independent contractors. On February 12, 2014, the Board of Directors approved the assumption of the 2010 EIP as part of the Merger; however, it was agreed that no new grants would be made under the 2010 EIP. On February 12, 2014, the board of directors also adopted the 2014 Stock Incentive Plan (the “2014 SIP”). On June 2, 2016, the board of directors adopted the 2016 Stock Incentive Plan (the “2016 SIP”). The Company’s Chief Executive Officer may, on a discretionary basis and without committee review or approval, grant non-qualified (non-statutory) stock options for up to 6,667 common shares to new employees of the Company who are not officers of the Company during each fiscal year. Incentives under the plan may be granted in one or a combination of the following forms: (a) incentive stock options and non-statutory stock options; (b) stock appreciation rights (“SARs”); (c) stock awards; (d) restricted stock; (e) restricted stock units; and (f) performance shares. Eligible participants include officers and employees of the company, members of the Board of Directors, and consultants or other independent contractors. No person is eligible to receive grants of stock options and SARs under the 2014 SIP that exceed, in the aggregate, 26,667 shares of common stock in any one year. The term of each stock option shall be determined by the board or committee, but shall not exceed ten years. Vested stock options may be exercised in whole or part by the holder giving notice to the Company. Options under the plan may provide for the holder of the option to make payment of the exercise price by surrender of shares equal in value to the exercise price. Options granted to employees generally vest over two to three years. Stock awards granted to non-employee directors generally vest 50% on the grant date and 50% on the first anniversary of the date of the grant. Options expire five years from the date of grant. The following is a summary of shares issuable pursuant to options granted as of September 30, 2016: Maximum Outstanding Exercisable 2010 EIP 45,000 7,607 7,607 2014 SIP 101,442 62,662 35,869 2016 SIP 600,000 47,449 16,341 Issued outside of plans — 216,455 158,460 Shares issuable pursuant to options granted 334,173 218,277 The following is a summary of stock option activity for the nine months ended September 30, 2016: Weighted Number of Remaining Shares Issuable Weighted Avg. Contractual Intrinsic Under Options Exercise rice Life (Years) Value (In thousands) Balance, December 31, 2015 249,951 $ 19.80 3.95 $ - Granted 99,605 6.07 Exercised — — Forfeited or Expired (31,295 ) 12.15 Balance, March 31, 2016 318,261 16.35 3.70 122 Granted 6,668 6.78 Exercised — — Forfeited or Expired (34,549 ) 16.18 Balance, June 30, 2016 290,380 16.08 3.82 $ 83 Granted 49,005 7.28 Exercised — — Forfeited or Expired (5,212 ) 13.12 Balance, September 30, 2016 334,173 $ 14.84 3.77 210 Exercisable at September 30, 2016 218,277 $ 18.22 3.47 $ 71 Information with respect to stock options outstanding and exercisable as of September 30, 2016 is as follows: Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Number Exercisable Weighted Average Exercise Price Aggregate Intrinsic Value (In thousands) (In thousands) $5.10 to $7.85 128,387 4.49 $ 6.52 $ 209 43,323 $ 6.53 $ 70 $8.25 to $12.44 14,983 3.62 10.67 1 10,475 10.57 1 $12.45 to $20.25 64,986 3.89 13.01 — 42,551 13.02 — $22.50 to $60.00 125,817 2.99 24.77 — 121,928 24.84 — 334,173 3.77 $ 14.84 $ 210 218,277 $ 18.22 $ 71 The Company has also adopted a performance bonus plan (the “Performance Bonus Plan”), which is intended to provide incentive for associates to establish quarterly goals and objectives as defined by management and achieve those goals and objectives above the established criteria. Shares issued pursuant to the Performance Bonus Plan to date have been issued under the 2014 SIP. The Company issued 22,539 shares to associates pursuant to the Performance Bonus Plan during the nine months ended September 30, 2016. Stock Compensation Expense Information The Company utilizes the Black-Scholes option pricing model when determining the compensation cost associated with stock options issued using the following significant assumptions: Stock price: Published trading market values of the Company’s common stock as of the grant date of the stock options. Exercise price: The stated exercise price of the stock option. Expected term: The Company’s assumption of the term of the stock options based on historical exercise data. Expected dividend: The rate of dividends that the Company expects to pay over the term of the stock options. Volatility: The historical volatility of the Company’s common stock while the Company was publicly listed or the volatility of comparable peer companies that are publicly traded for periods prior to the Company’s public offering. Risk-free interest rate: The daily United States Treasury yield curve rate. The fair value of the stock options issued was determined using the Black-Scholes option pricing model and the following assumptions for the periods presented: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Stock price $5.10 to $7.85 $8.25 to $12.45 $5.10 to $7.85 $8.25 to $20.25 Exercise price $5.10 to $7.85 $8.25 to $12.45 $5.10 to $7.85 $8.25 to $20.25 Expected term 3 Years 2 to 3 Years 3 Years 2 to 3 Years Expected dividend 0 % 0 % 0 % 0 % Volatility 78% to 83 % 31% to 45 % 61% to 83 % 26% to 45 % Risk-free interest rate 0.71% to 0.86 % 0.90% to 1.08 % 0.71% to 1.31 % 0.22% to 1.08 % The Company estimates forfeitures when recognizing compensation expense and this estimate of forfeitures is adjusted over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment, which is recognized in the period of change, and impacts the amount of unamortized compensation expense to be recognized in future periods. Compensation expense recognized for the issuance of warrants, stock options, restricted stock grants and stock bonuses for the periods presented was as follows: Three Months Ended Nine Months Ended (In thousands) September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Stock-based compensation costs included in: Cost of revenue $ 14 $ 17 $ 87 $ 33 Sales and marketing expenses 47 27 130 58 Research and development expenses 12 24 86 63 General and administrative expenses 94 80 172 148 Total stock-based compensation expense $ 167 $ 148 $ 475 $ 302 As of September 30, 2016, the total compensation cost related to unvested options awards not yet recognized was approximately $281,000, which will be recognized over a weighted-average period of 1.4 years. 2014 Associate Stock Purchase Plan In September 2014 and August 2015, the Company’s Board of Directors and stockholders, respectively, approved the 2014 Associate Stock Purchase Plan, under which 33,334 shares were reserved for purchase by the Company’s associates (employees). The purchase price of the shares under the plan is the lesser of 85% of the fair market value on the first or last day of the offering period. Offering periods are every six months ending on June 30 and December 31. Associates may designate up to ten percent of their compensation for the purchase of shares under the plan. As of September 30, 2016, there are 7,456 shares available for purchase remaining in the plan.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	10. Related Party Transactions In order to finance its operations, the Company has historically relied upon Messrs. Hanson and Davis for financing through the issuance of debt, equity and warrants. Balances with related parties consisting of members of the Board of Directors for borrowings and warrants were as follows. No debt is held by executive officers of the Company. As of September 30, 2016 December 31, 2015 Debt held by related parties (in thousands) $ 2,697 $ 1,748 Accrued interest to related parties (in thousands) $ 367 $ 232 Warrants held by related parties 1,144,221 691,043 Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) 2016 2015 2016 2015 Related party interest expense $ 51 $ 34 $ 144 $ 115 On May 7, 2014, the Company entered into a $1.5 million line-of-credit agreement with Mr. Hanson, as subsequently amended (the “Line of Credit”). The stated interest rate on the Line of Credit is 10% on the principal amount outstanding and the maturity date is January 31, 2017, with all outstanding principal and accrued interest due in full on that date. There are no financial covenants associated with the Line of Credit. On July 7, 2016, the Company entered into an amendment #3 to the borrowing agreement with Mr. Hanson in connection with the Line of Credit. Pursuant to that amendment, which is effective as of June 30, 2016, the parties agreed that the Company will make an interest-only payment on January 31, 2017. The interest-only payment is for interest accrued on the principal balance from February 1, 2016 to date of payment. On October 6, 2016, Mr. Hanson agreed to convert the $1.0 million owed under the Line of Credit to equity upon consummation of an underwritten public offering. See Note 12 “Subsequent Events.” On July 30, 2014, the Company entered into a financing commitment letter with Messrs. Hanson and Davis to lend the Company up to $2.5 million through December 31, 2014, bearing interest at 10% (which increases to 18% under certain circumstances in the event of default). The maturity date of the financing commitment letter is January 31, 2017, on which date the total principal balance and accrued interest thereon will be due in full. On July 7, 2016, the Company entered into an addendum #4 to this commitment letter with Mr. Hanson. Pursuant to that addendum, which is effective as of June 30, 2016, the parties extended the payment date of the interest-only payments that were or will be due and payable to January 31, 2017. The interest-only payments are for interest accrued on the principal balance from February 1, 2016 to date of payment. On December 22, 2015, the Company issued a $150,000 demand promissory note to Mr. Hanson. The note bears an interest rate of 10% and was due on June 30, 2016. On July 13, 2016, the Company entered into an addendum #1 to this demand promissory note. Pursuant to that addendum, which is effective as of June 30, 2016, the parties extended the maturity date under the demand promissory note from June 30, 2016 to January 31, 2017. In February 2016, the Company entered into a thirty-day note payable with Mr. Davis for $150,000 and Mr. Hanson for $75,000. Under the note agreements, in lieu of interest, the Company agreed to issue five-year cashless warrants to purchase 16,667 and 8,334 shares of common stock at $4.94 per share to Messrs. Davis and Hanson, respectively. Additionally, for each 30 days the principal amount is outstanding, the Company issued to Messrs. Davis and Hanson an additional 16,667 and 8,334 warrants, respectively, with the same terms as described above. On March 29, 2016, both notes were amended to change the due dates of the principal amounts owed to January 11, 2017 and January 31, 2017, under Messrs. Hanson’s and Davis’ notes, respectively. Messrs. Davis and Hanson will continue to earn warrants on a 30-day basis until the principal is repaid. As of September 30, 2016, Messrs. Davis and Hanson have received a total of 150,003 and 66,672 warrants, respectively. On October 6, 2016, Mr. Davis agreed to convert his $150,000 note to equity upon consummation of an underwritten public offering. See Note 12 “Subsequent Events.” On May 9, 2016, the Company entered into a promissory note agreement for approximately $227,000 with Mr. Davis. The note accrues interest at the per annum rate of 10%. As an additional inducement to Mr. Davis to advance amounts under the note, the Company agreed to issue to Mr. Davis a warrant to acquire 22,665 shares of the Company’s common stock at an exercise price of $4.94 per share as an inducement to enter into a promissory note agreement. On July 13, 2016, the Company issued to Mr. Davis a convertible promissory note in the principal amount of $360,000 and a warrant to purchase up to 20,000 shares of the Company’s common stock, subject to adjustments, in exchange for an aggregate purchase price of $300,000. On July 14, 2016, the Company issued to Mr. Hanson a convertible promissory note in the principal amount of $240,000 and a warrant to purchase up to 13,334 shares of the Company’s common stock, subject to adjustments, in exchange for an aggregate purchase price of $200,000. The warrants have an exercise price of $6.00 per share, subject to adjustments, and are exercisable for a five year period. The notes do not bear any interest, other than during an event of default (in which case default interest at a rate of 24% per annum is applicable). The notes are due and payable six months after the respective issuance dates. In addition to the Company providing three days advance written notice prior to repayment, under the terms of the note upon repayment of the note (including on the maturity date) the Company is obligated to pay a 20% premium on the principal amount and any accrued default interest then due on the note, which in the aggregate is equal to 120% of the principal amount and any accrued default interest then due on the note. For accounting purposes, the Company accounts for the debt and warrants using an allocation process. As a result, the reported amount of the debt has been reduced and will be accreted to face value through each of the maturity dates. On October 12, 2016, Mr. Davis agreed to convert $250,000 of the $432,000 aggregate amount outstanding under his note upon consummation of an underwritten public offering. See Note 12 “Subsequent Events.” On August 12, 2016, the Company entered into a securities purchase agreement with Messrs. Hanson and Davis, pursuant to which the Company issued to each of Messrs. Hanson and Davis a convertible note, due August 2017, in a principal amount of $263,158 and a warrant to purchase shares of the Company’s common stock in exchange for a purchase price of $250,000 paid in cash by each such director. The notes are unsecured, do not bear any interest and are payable in full on August 12, 2017. Each of Messrs. Hanson and Davis may elect to convert the principal amount of the note issued to him into shares of the Company’s common stock at any time before August 12, 2017 at a conversion price per share equal to the lower of $5.55 and 80% of the per share sale price of the Company’s common stock in the Company’s next underwritten public offering. The Company has the right to require each of Messrs. Hanson and Davis to convert the notes into shares of the Company’s common stock at that conversion price if the Company’s common stock is listed on the Nasdaq Capital Market, the Nasdaq Global Market or the Nasdaq Global Select Market. For accounting purposes, the Company accounts for the debt, warrants and conversion features using an allocation process. As a result, the reported amount of the debt has been reduced and will be accreted to face value through each of the maturity dates. On August 1, 2016, Mr. Davis entered into a financial lease agreement to fund the purchase of certain licenses for the exclusive use and benefit of the Company, in an aggregate amount of approximately $239,000, together with accrued interest thereon. On August 22, 2016, the Company entered into an unsecured promissory note with Mr. Davis, pursuant to which the Company is obligated to pay to Mr. Davis the sum of approximately $239,000, together with all accrued interest thereon, in six monthly installments. The Company is required to make the payments under the note directly to the lessor in satisfaction of the Company’s obligations to Mr. Davis under the note and Mr. Davis’ obligations to the lessor. As consideration for entering into a financial lease to fund the purchase of certain licenses for the exclusive use and benefit of the, the Company issued to Mr. Davis a warrant to purchase 24,000 shares of the Company’s common stock at an exercise price of $6.75 per share. The warrants are exercisable for a five-year period.

Concentrations

Concentrations	9 Months Ended
	Sep. 30, 2016
Risks and Uncertainties [Abstract]
Concentrations	11. Concentrations The Company continues to rely on vendors to provide technology and licensing components that are critical to its solutions. In addition, the Company engaged a development firm located in Toronto, Canada beginning in March 2014 to augment its software development efforts. During the three and nine months ended September 30, 2016, the Company incurred expenditures of approximately $344,000 and $790,000 to the law firm representing the Company in connection with the Offering and Listing, respectively, which was approximately 14.4% and 10.7%, respectively, of the Company’s total expenditures. The Company also incurred approximately $261,000 and $746,000 to its technology partner, respectively, representing approximately 10.9% and 10.1%, respectively of the Company’s total expenditures during the three and nine months ended September 30, 2016. During the nine months ended September 30, 2015, the Company incurred approximately $679,000 to its technology partner in Toronto, Canada, representing 13% of its total supplier expenditures. As of September 30, 2016, the Company had net payables of approximately $412,000 owed to a law firm for legal services rendered in connection with the Offering and Listing, representing 23.4% of its accounts payable balance and $250,750 owed to a technology partner for software licenses, representing 14.3% of its accounts payable balance. The Company also owed to its independent registered public accounting firm approximately $186,000, representing 10.6% of its accounts payable balance. As of December 31, 2015, the Company had payables of approximately $342,000 owed to a law firm for legal services, representing 30.8% of its accounts payable balance. During the three months ended September 30, 2016, one customer represented approximately $467,000, or 20.3% of the Company’s consolidated revenues. There was no single customer whose revenue exceeded 10% of the Company’s consolidated revenues for the nine months ended September 30, 2016 or for the three and nine months ended September 30, 2015. Within accounts receivable are receivables from two customers of approximately $480,000 and $240,000, respectively, representing 22.0% and 11.0%, respectively, as of September 30, 2016. As of December 31, 2015, the Company had receivables due from three customers of approximately $121,000, $113,000 and $95,000 representing 17.0%, 15.8% and 13.3%, respectively, of its gross accounts receivable balance.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events On October 6, 2016, the Company entered into an agreement with Mr. Hanson in connection with the Line of Credit. Pursuant to the agreement, Mr. Hanson agreed to convert, upon the consummation of an underwritten public offering, the principal amount of $1,000,000 of indebtedness outstanding under the Line of Credit into shares of common stock at the public offering price-per-share in an underwritten public offering. In consideration for this conversion, the Company agreed to issue to Mr. Hanson, upon consummation of an underwritten public offering, five-year warrants to purchase 200,000 shares of common stock, exercisable at the public offering price-per-share in an underwritten public offering. On October 6, 2016, the Company and the Subsidiary entered into an agreement with Mr. Davis in connection with a demand promissory note issued by the Subsidiary to Mr. Davis on February 1, 2016. Pursuant to the agreement, Mr. Davis agreed to convert, upon the consummation of an underwritten public offering, the principal amount of $150,000 of indebtedness outstanding under the note into shares of common stock at a price equal to the public offering price-per-share in an underwritten public offering. In consideration for this conversion, the Company agreed to issue to Mr. Davis, upon the consummation of an underwritten public offering, five-year warrants to purchase 30,000 shares of common stock, exercisable at the public offering price-per-share in an underwritten public offering. On October 12, 2016, the Company entered into an agreement with Mr. Davis, whereby Mr. Davis agreed to convert, upon the consummation of an underwritten public offering, $250,000 of the $432,000 aggregate amount outstanding under the convertible promissory note issued to him on July 13, 2016, into shares of common stock at a price equal to the public offering price-per-share in an underwritten public offering. In consideration for this conversion, the Company agreed to issue to Mr. Davis, upon the consummation of an underwritten public offering, five-year warrants to purchase 50,000 shares of Common Stock, exercisable at the public offering price-per-share in an underwritten public offering. On October 19, 2016, the Company filed with the SEC an application to withdraw its Registration Statement. The Company has determined not to proceed with the Offering at this time. The Company intends to raise up to $8 million in cash proceeds by way of one or more private placements to fund its marketing and sales activities, working capital and for other general corporate purposes. Because of the withdrawal of the Registration Statement, the Company will be required to expense $1.2 million of prepaid offering costs in the fourth quarter of 2016. On October 21, 2016, the Company commenced the October Private Placement. Pursuant to the October Private Placement, through the date on which these financial statements were available to be issued, the Company has issued to individual investors convertible notes for an aggregate principal balance of $4.0 million and aggregate gross proceeds to the Company of $3.8 million. The Company has issued to the individual investors in the October Private Placement warrants to purchase an aggregate of 643,528 shares of common stock at $5.55 per share, subject to adjustment. In October 2016, the Company extended the notes payable, due October 2016 referenced in Note 4 “Financing Arrangements,” to [March 31, 2017]. As consideration for extending the maturity date of the notes, the Company issued to the lender a warrant to purchase 5,000 shares of common stock at $4.94 per share.

Nature of Operations and Summ19

Nature of Operations and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Net Loss Per Common Share	Net Loss Per Common Share Basic and diluted net loss per common share for all periods presented is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common shares outstanding and common share equivalents outstanding, when dilutive. Potentially dilutive common share equivalents include common shares which would potentially be issued pursuant to stock warrants, stock options, convertible preferred stock and convertible note agreements. Common share equivalents are not included in determining the fully diluted loss per share if their effect is antidilutive. The following table reflects the amounts used in determining net loss per share: Three Months Ended Nine Months Ended (In thousands, except share and September 30, September 30, September 30, September 30, per share data) 2016 2015 2016 2015 Net loss $ (4,053 ) $ (6,964 ) $ (12,190 ) $ (19,016 ) Less: Cumulative unpaid preferred stock dividends (122 ) (110 ) (355 ) (144 ) Net loss attributable to common shareholders (4,175 ) (7,074 ) (12,545 ) (19,160 ) Weighted average common shares outstanding 2,856,168 2,040,156 2,704,422 1,644,889 Net loss per common share – basic and diluted $ (1.46 ) $ (3.47 ) $ (4.64 ) $ (11.65 ) The following potential common shares were excluded from the calculation of diluted loss per share from continuing operations and diluted net loss per share attributable to common shareholders because their effect would have been anti-dilutive for the periods presented: As of September 30, 2016 September 30, 2015 Convertible Preferred Stock 1,006,100 670,475 Stock Options 334,173 250,234 Warrants 2,932,889 1,615,617 4,273,162 2,536,326
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company uses fair value measurements to record fair value adjustments for certain financial instruments and to determine fair value disclosures. Warrants issued with price protection features are recorded at fair value on a recurring basis. The Company considers the carrying value of cash and cash equivalents, accounts receivable and accounts payable to approximate fair value due to the short maturity of these instruments. With respect to the determination of fair values of financial instruments, there are the following three levels of inputs: Level 1 Inputs – Quoted prices for identical instruments in active markets. Level 2 Inputs – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Inputs – Instruments with primarily unobservable value drivers. The warrants that are carried at fair value are valued using level 3 inputs utilizing a Black-Scholes option pricing model under probability-weighted estimated outcomes. The conversion features that are carried at fair value are valued by a third-party valuation specialist. There were no transfers into or out of level 3 of the fair value hierarchy during the three or nine months ended September 30, 2016.
Use of Estimates	Use of Estimates The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that may affect certain reported amounts and disclosures in the consolidated financial statements. Actual results could differ from those estimates. Significant estimates include the Company’s ability to continue as a going concern, the allowance for doubtful accounts, assumptions used to value stock options and warrants, conversion incentive and share purchase price adjustment, and the value of shares of common stock issued for services.
Recent Accounting Pronouncements	Recent Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers. In August 2014, the FASB issued ASU 2014-15, “ Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In April 2015, the FASB issued ASU 2015-03, “ Simplifying the Presentation of Debt Issuance Costs, In January 2016, the FASB issued ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities, In February 2016, the FASB issued ASU 2016-02 “ Leases, In March 2016, the FASB issued ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting. In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments – Credit Losses, In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows,

Nature of Operations and Summ20

Nature of Operations and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Schedule of Net Loss Per Common Share	The following table reflects the amounts used in determining net loss per share: Three Months Ended Nine Months Ended (In thousands, except share and September 30, September 30, September 30, September 30, per share data) 2016 2015 2016 2015 Net loss $ (4,053 ) $ (6,964 ) $ (12,190 ) $ (19,016 ) Less: Cumulative unpaid preferred stock dividends (122 ) (110 ) (355 ) (144 ) Net loss attributable to common shareholders (4,175 ) (7,074 ) (12,545 ) (19,160 ) Weighted average common shares outstanding 2,855,973 2,040,156 2,704,358 1,644,889 Net loss per common share – basic and diluted $ (1.46 ) $ (3.47 ) $ (4.64 ) $ (11.65 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following potential common shares were excluded from the calculation of diluted loss per share from continuing operations and diluted net loss per share attributable to common shareholders because their effect would have been anti-dilutive for the periods presented: As of September 30, 2016 September 30, 2015 Convertible Preferred Stock 1,006,100 670,475 Stock Options 334,173 250,234 Warrants 2,936,889 1,615,617 4,277,162 2,536,326

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consists of the following: As of (In thousands) September 30, 2016 December 31, 2015 Computer equipment $ 251 $ 227 Data center equipment 1,122 1,011 Purchased software 770 692 Furniture and fixtures 94 90 Leasehold improvements 75 75 Total property and equipment 2,312 2,095 Less: accumulated depreciation (1,679 ) (1,431 ) Net property and equipment $ 633 $ 664
Summary of Depreciation Expense	The Company’s depreciation expense for the periods presented is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) 2016 2015 2016 2015 Depreciation expense $ 88 $ 96 $ 248 $ 228

Financing Arrangements (Tables)

Financing Arrangements (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Summary of Debt and Accrued Interest Outstanding	The Company’s debt and accrued interest outstanding as of the periods presented consisted of the following: Principal Balance Accrued Interest (Dollar amounts in thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Notes Payable to Directors and Affiliates $ 2,697 $ 1,748 $ 367 $ 232 Convertible Term Loan, due December 2016, interest at 10% 2,300 2,300 543 370 Convertible Notes, due 2016 and 2017, interest at 0% 1,093 — — — Series Subordinated Note, due January 2016, interest at 12% 415 415 39 2 Notes Payable, due October 2016, interest between 8.25% and 12% 67 75 30 28 Note Payable, due August 2021, interest at 0% 192 192 — — Installment Note Payable – Bank 260 261 — — Total 7,024 4,991 979 632 Unamortized deferred financing costs (94 ) (31 ) Total debt, net 6,930 4,960 Less: short-term debt and current portion of long-term debt 6,586 4,768 Long-term debt, net of current portion $ 344 $ 192
Schedule of Future Maturities of Long-term Debt	Future maturities of long-term debt as of September 30, 2016 are as follows (in thousands): Three months ending December 31, 2016 $ 3,894 2017 2,814 2018 115 2019 9 2020 - 2021 192 Thereafter - $ 7,024
Schedule of Convertible Notes Payable	The following table provides additional information about each financing. Note Date Maturity Date Proceeds (1) Principal (1) Fair Value (2) (in thousands) June 1, 2016 June 1, 2017 $ 1,000 $ 1,053 $ 1,262 August 11, 2016 August 11, 2017 500 526 631 September 15, 2016 September 15, 2017 95 100 120 (1) As provided for in the relevant agreements (2) As of September 30, 2016

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Summary of Rent Expense to Operating Lease	Rent expense pursuant to operating leases for the periods presented is as follows: Three Months Ended Nine Months Ended (In thousands) September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Rent expense $ 109 $ 112 $ 345 $ 365
Schedule of Future Minimum Lease Payments for Operating Leases	Future minimum lease payments pursuant to operating leases as of September 30, 2016 are as follows (in thousands): Three months ending December 31, 2016 $ 87 2017 292 2018 242 2019 241 2020 248 Thereafter 277 $ 1,387
Schedule of Future Minimum Lease Payments for Capital Leases	Future minimum lease payments pursuant to capital leases as of September 30, 2016 are as follows (in thousands): Three months ending December 31, 2016 $ 117 2017 374 2018 80 2019 33 2020 3 Total payments 607 Less: portion representing interest (4 ) Principal portion 603 Less: unamortized deferred financing costs (58 ) Capital lease balance 545 Less: current maturities of capital lease obligations (366 ) Capital lease, net of current maturities $ 179

Goodwill and Finite Life Inta24

Goodwill and Finite Life Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Identified Intangible Assets	Identified intangible assets are summarized as follows: Amortizable September 30, 2016 Period Gross Accumulated Net (Dollar amounts in thousands) (years) Assets Amortization Assets Customer Contracts 3 - 5 $ 784 $ (633 ) $ 151 Proprietary Software 3 917 (788 ) 129 Total identified intangible assets $ 1,701 $ (1,421 ) $ 280 Amortizable December 31, 2015 Period Gross Accumulated Net (Dollar amounts in thousands) (years) Assets Amortization Assets Customer Contracts 3 - 5 $ 784 $ (510 ) $ 274 Proprietary Software 3 917 (559 ) 358 Total identified intangible assets $ 1,701 $ (1,069 ) $ 632
Schedule of Amortization Expense for Identified Intangible Assets	Amortization expense for identified intangible assets is summarized below: Three Months Ended Nine Months Ended Statement of Operations (In thousands September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Classification Customer Contracts $ 41 $ 71 $ 123 $ 213 Cost of Revenue Proprietary Software 76 76 229 229 Cost of Revenue Total amortization on identified intangible assets $ 117 $ 147 $ 352 $ 442
Schedule of Future Amortization Expense	Based on the identified intangible assets recorded as of September 30, 2016, future amortization expense is expected to be as follows (in thousands): Three months ending December 31, 2016 $ 118 2017 114 2018 38 2019 10 $ 280

Shareholders' Deficit (Tables)

Shareholders' Deficit (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of Common Stock Issuance	The Company’s common stock issuances for the nine months ended September 30, 2016 are as follows: Common Stock Balance, December 31, 2015 2,318,139 Conversion of preferred stock to common stock and payment of preferred dividend paid with common stock 10,934 Issuance of common stock for professional services 43,860 March 2016 equity offering 245,226 Share-based compensation 22,539 Issuance of common stock under Associate Stock Purchase Plan 12,109 Warrant exercises 328,710 Balance, September 30, 2016 2,981,517
Summary of Warrant Activity	The Company’s warrant activity for the nine months ended September 30, 2016 consisted of the following: Number of Weighted Shares Issuable Weighted Avg. Remaining Under Warrants Exercise Price Life (Years) Balance, December 31, 2015 1,723,674 $ 10.95 3.98 Issued 319,392 5.44 Exercised (133,148 ) 4.94 Balance, March 31, 2016 1,909,918 10.35 3.88 Issued 613,380 5.52 Exercised (63,345 ) 4.94 Balance, June 30, 2016 2,459,953 9.30 3.94 Issued 613,135 5.44 Exercised (136,199 ) 4.94 Balance, September 30, 2016 2,936,889 $ 8.70 3.92
Schedule of Warrant and Conversion Feature Liabilities	As of September 30, 2016 and December 31, 2015, the Company’s warrant and conversion feature liabilities consisted of the following: Shares Current Exercise Balance as of Counterparty Issuable Price September 30, 2016 December 31, 2015 (In thousands) Former senior lender 175,911 $ 3.90 $ 691 $ 537 Mr. Davis - - - 45 Series A, B and C preferred shareholders 597,790 4.94 2,632 2,175 Lincoln Park 115,400 4.94 516 43 Lender of October 2016 notes payable 10,000 4.94 45 - June 9, 2016 Investors 200,000 4.94 894 - Convertible noteholders (1) 754,957 Various 903 - Messrs. Hanson and Davis 33,334 4.94 149 - Warrant and conversion feature liability, total 5,830 2,800 Less: current portion of warrant and conversion feature liability (324 ) - WARRANT LIABILITY $ 5,506 $ 2,800 (1) Shares issuable includes warrants to purchase 170,698 shares of commom stock at $5.55 per share, 186,914 shares of common stock at the lower of $5.55 per share and 80% of the per share offering price in the Company’s next underwritten public offering and 397,345 shares issuable upon conversion of the principal amount of the underlying notes at the conversion price of $5.55 per share. The terms of the convertible note agreements specify that the Company will issue shares of common stock at the lower of $5.55 per share or 80% of the price paid per share in an underwritten public offering.
Summary of Assumptions used to Determine Fair Value of Warrants	The fair value of the warrants issued was determined using the Black-Scholes option pricing model and the following assumptions for the periods presented: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Stock price $5.75 to $8.85 N/A $4.05 to $11.25 $6.57 to $16.80 Exercise price $4.94 to $6.90 N/A $4.94 to $6.90 $6.60 to $17.25 Expected term 2.5 years N/A 2.5 years 2.5 years Expected dividend 0 % N/A 0 % 0 % Volatility 86% to 94 % N/A 65% to 94 % 27 % Risk-free interest rate 0.69% to 0.92 % N/A 0.69% to 1.31 % 0.85% to 1.37 %

Stock-Based Compensation and 26

Stock-Based Compensation and Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Shares Issuable Pursuant to Options Granted	The following is a summary of shares issuable pursuant to options granted as of September 30, 2016: Maximum Outstanding Exercisable 2010 EIP 45,000 7,607 7,607 2014 SIP 101,442 62,662 35,869 2016 SIP 600,000 47,449 16,341 Issued outside of plans — 216,455 158,460 Shares issuable pursuant to options granted 334,173 218,277
Summary of Stock Option Activity	The following is a summary of stock option activity for the nine months ended September 30, 2016: Weighted Number of Remaining Shares Issuable Weighted Avg. Contractual Intrinsic Under Options Exercise rice Life (Years) Value (In thousands) Balance, December 31, 2015 249,951 $ 19.80 3.95 $ - Granted 99,605 6.07 Exercised — — Forfeited or Expired (31,295 ) 12.15 Balance, March 31, 2016 318,261 16.35 3.70 122 Granted 6,668 6.78 Exercised — — Forfeited or Expired (34,549 ) 16.18 Balance, June 30, 2016 290,380 16.08 3.82 $ 83 Granted 49,005 7.28 Exercised — — Forfeited or Expired (5,212 ) 13.12 Balance, September 30, 2016 334,173 $ 14.84 3.77 210 Exercisable at September 30, 2016 218,277 $ 18.22 3.47 $ 71
Schedule of Stock Options Outstanding and Exercisable	Information with respect to stock options outstanding and exercisable as of September 30, 2016 is as follows: Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Number Exercisable Weighted Average Exercise Price Aggregate Intrinsic Value (In thousands) (In thousands) $5.10 to $7.85 128,387 4.49 $ 6.52 $ 209 43,323 $ 6.53 $ 70 $8.25 to $12.44 14,983 3.62 10.67 1 10,475 10.57 1 $12.45 to $20.25 64,986 3.89 13.01 — 42,551 13.02 — $22.50 to $60.00 125,817 2.99 24.77 — 121,928 24.84 — 334,173 3.77 $ 14.84 $ 210 218,277 $ 18.22 $ 71
Schedule of Fair Values of Stock Options Granted and Assumptions used for Black-Scholes-Merton Option Pricing Model	The fair value of the stock options issued was determined using the Black-Scholes option pricing model and the following assumptions for the periods presented: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Stock price $5.10 to $7.85 $8.25 to $12.45 $5.10 to $7.85 $8.25 to $20.25 Exercise price $5.10 to $7.85 $8.25 to $12.45 $5.10 to $7.85 $8.25 to $20.25 Expected term 3 Years 2 to 3 Years 3 Years 2 to 3 Years Expected dividend 0 % 0 % 0 % 0 % Volatility 78% to 83 % 31% to 45 % 61% to 83 % 26% to 45 % Risk-free interest rate 0.71% to 0.86 % 0.90% to 1.08 % 0.71% to 1.31 % 0.22% to 1.08 %
Summary of Stock Based Compensation	Compensation expense recognized for the issuance of warrants, stock options, restricted stock grants and stock bonuses for the periods presented was as follows: Three Months Ended Nine Months Ended (In thousands) September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Stock-based compensation costs included in: Cost of revenue $ 14 $ 17 $ 87 $ 33 Sales and marketing expenses 47 27 130 58 Research and development expenses 12 24 86 63 General and administrative expenses 94 80 172 148 Total stock-based compensation expense $ 167 $ 148 $ 475 $ 302

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	Balances with related parties consisting of members of the Board of Directors for borrowings and warrants were as follows. No debt is held by executive officers of the Company. As of September 30, 2016 December 31, 2015 Debt held by related parties (in thousands) $ 2,697 $ 1,748 Accrued interest to related parties (in thousands) $ 367 $ 232 Warrants held by related parties 1,144,221 691,043 Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) 2016 2015 2016 2015 Related party interest expense $ 51 $ 34 $ 144 $ 115

Nature of Operations and Summ28

Nature of Operations and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Jun. 02, 2016	Sep. 30, 2016	Dec. 31, 2015
Accumulated deficit		$ 81,474,000	$ 69,280,000
Working capital deficit		7,600,000
Board Of Directors [Member]
Reverse stock split description	On June 2, 2016, the board of directors of the Company (the “Board of Directors”) adopted resolutions approving and recommending to the Company’s shareholders to approve a proposal to amend the Company’s Amended and Restated Certificate of Incorporation to effect a reverse split of outstanding shares of common stock of the Company, which was subsequently approved by the Company’s shareholders, and the ratio was set by the Board of Directors at 1:15 (the “Reverse Stock Split”).
October Private Placement [Member]
Amount raised through private placement		$ 8,000,000

Nature of Operations and Summ29

Nature of Operations and Summary of Significant Accounting Policies - Schedule of Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Nature Of Operations And Summary Of Significant Accounting Policies - Schedule Of Net Loss Per Common Share Details
Net loss	$ (4,053)	$ (6,964)	$ (12,190)	$ (19,016)
Less: Cumulative unpaid preferred stock dividends	(122)	(110)	(355)	(144)
Net loss attributable to common shareholders	$ (4,175)	$ (7,074)	$ (12,545)	$ (19,160)
Weighted average common shares outstanding	2,855,973	2,040,156	2,704,358	1,644,889
Net loss per common share - basic and diluted	$ (1.46)	$ (3.47)	$ (4.64)	$ (11.65)

Nature of Operations and Summ30

Nature of Operations and Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Antidilutive securities	4,277,162	2,536,326
Convertible Preferred Stock [Member]
Antidilutive securities	1,006,100	670,475
Stock Options [Member]
Antidilutive securities	334,173	250,234
Warrants [Member]
Antidilutive securities	2,936,889	1,615,617

Prepaid Expenses (Details Narra

Prepaid Expenses (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Prepaid Expenses
Prepaid expenses	$ 1,555	$ 286

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,312	$ 2,095
Less: accumulated depreciation	(1,679)	(1,431)
Net property and equipment	633	664
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	251	227
Data Center Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,122	1,011
Purchased Software [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	770	692
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	94	90
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 75	$ 75

Property and Equipment - Summar

Property and Equipment - Summary of Depreciation Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation expenses	$ 88,000	$ 96,000	$ 248,000	$ 228,000

Financing Arrangements (Details

Financing Arrangements (Details Narrative) - USD ($)	Jun. 09, 2016	Jan. 31, 2016	Dec. 31, 2013	Sep. 30, 2016	Dec. 31, 2015
June 9, 2016 Investors [Member]
Debt face value	$ 450,000
Payment to acquire investments	375,000
Company owes amount	$ 1,000,000
Debt default interest rate	120.00%
Percentage of premium amount of principal balance	20.00%
Convertible Notes [Member] | Trooien Capital, LLC [Member]
Debt face value			$ 4,000,000
Debt interest rate			10.00%
Debt maturity date description			December 2,016
Maximum borrowing capacity under financing agreement			$ 4,000,000
Convertible Notes [Member] | Trooien Capital, LLC [Member] | First Conversion Right [Member]
Percentage of conversion price equal to price of common stock sold			125.00%
Convertible Notes [Member] | Trooien Capital, LLC [Member] | Second Conversion Right [Member]
Warrants coverage percentage			100.00%
Convertible Notes, Due 2016 and 2017 [Member]
Percentage of conversion price equal to price of common stock sold				80.00%
Conversion price per share				$ 5.55
Series Subordinated Note, Due January 2016 [Member]
Debt interest rate				12.00%
Debt maturity date description				January 2,016
Notes Payable Due October 2016 [Member]
Debt maturity date description				During 2016, the Company also extended the maturity date of the remaining notes to August 2016 and then to October 2016. In October 2016, the Company further extended the maturity date of these notes to [March 2017].
Repayment of debt				$ 11,000
Notes Payable Due October 2016 [Member] | Minimum [Member]
Debt interest rate				8.25%
Notes Payable Due October 2016 [Member] | Maximum [Member]
Debt interest rate				12.00%
Notes Payable Due August 2021 [Member]
Debt face value				$ 192,000
Debt interest rate				0.00%
Debt maturity date description				August 2,021
Percentage of premium amount of principal balance				30.00%
Notes Payable Due August 2021 [Member] | Maximum [Member]
Debt interest rate				20.00%
Installment Note Payable [Member]
Debt face value		$ 330,000
Debt maturity date description		January 2,019
Proceeds from issuance of debt		$ 69,000
Installment Note Payable [Member] | Prime Rate [Member]
Debt interest rate				3.50%	3.50%
Installment Note Payable [Member] | Minimum [Member] | Prime Rate [Member]
Debt interest rate		1.00%
Installment Note Payable [Member] | Maximum [Member] | Prime Rate [Member]
Debt interest rate		5.00%
Other Debt [Member]
Debt maturity date description				Due 2016 and 2017, as a result of either the short term duration or recency of its financings or refinancings, the Company believes that the estimated fair value of its outstanding indebtedness approximates market value.

Financing Arrangements - Summar

Financing Arrangements - Summary of Debt and Accrued Interest Outstanding (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Total	$ 7,024	$ 4,991
Accrued Interest	979	632
Unamortized deferred financing costs	(94)	(31)
Total debt, net	6,930	4,960
Less: short-term debt and current portion of long-term debt	6,586	4,768
Long-term debt, net of current portion	344	192
Notes Payable to Directors and Affiliates [Member]
Total	2,697	1,748
Accrued Interest	367	232
Convertible Term Loan, Due December 2016, Interest at 10% [Member]
Total	2,300	2,300
Accrued Interest	543	370
Convertible Notes, Due December 2016 and 2017, interest 0% [Member]
Total	1,093
Accrued Interest
Series Subordinated Note, Due January 2016 Interest at 12% [Member]
Total	415	415
Accrued Interest	39	2
Notes Payable, due October 2016, interest between 8.25% and 12% [Member]
Total	67	75
Accrued Interest	30	28
Note Payable, Due August 2021, Interest at 0% [Member]
Total	192	192
Accrued Interest
Installment Note Payable - Bank [Member]
Total	260	261
Accrued Interest

Financing Arrangements - Summ36

Financing Arrangements - Summary of Debt and Accrued Interest Outstanding (Details) (Parenthetical)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Convertible Term Loan, Due December 2016, Interest at 10% [Member]
Debt due date	December 2,016	December 2,016
Debt interest rate	10.00%	10.00%
Convertible Notes, Due December 2016 and 2017, interest 0% [Member]
Debt interest rate	0.00%	0.00%
Debt maturity date start	Dec. 31, 2016	Dec. 31, 2016
Debt maturity date end	Dec. 31, 2017	Dec. 31, 2017
Series Subordinated Note, Due January 2016 Interest at 12% [Member]
Debt due date	January 2,016	January 2,016
Debt interest rate	12.00%	12.00%
Notes Payable, due October 2016, interest between 8.25% and 12% [Member]
Debt due date	October 2,016	October 2,016
Notes Payable, due October 2016, interest between 8.25% and 12% [Member] | Minimum [Member]
Debt interest rate	8.25%	8.25%
Notes Payable, due October 2016, interest between 8.25% and 12% [Member] | Maximum [Member]
Debt interest rate	12.00%	12.00%
Note Payable, Due August 2021, Interest at 0% [Member]
Debt due date	August 2,021	August 2,021
Debt interest rate	0.00%	0.00%

Financing Arrangements - Schedu

Financing Arrangements - Schedule of Future Maturities of Long-term Debt (Details) $ in Thousands	Sep. 30, 2016USD ($)
Debt Disclosure [Abstract]
Three months ending December 31, 2016	$ 3,894
2,017	2,814
2,018	115
2,019	9
2,020
2,021	192
Thereafter
Total debt, net	$ 7,024

Financing Arrangements - Sche38

Financing Arrangements - Schedule of Convertible Notes Payable (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
June 1, 2016 Note [Member]
Note Date	Jun. 1, 2016
Maturity Date	Jun. 1, 2017
Proceeds	$ 1,000	[1]
Principal	1,053	[1]
Fair Value	$ 1,262	[2]
August 11, 2016 Note [Member]
Note Date	Aug. 11, 2016
Maturity Date	Aug. 11, 2017
Proceeds	$ 500	[1]
Principal	526	[1]
Fair Value	$ 631	[2]
September 15, 2016 Note [Member]
Note Date	Sep. 15, 2016
Maturity Date	Sep. 15, 2017
Proceeds	$ 95	[1]
Principal	100	[1]
Fair Value	$ 120	[2]
[1]	As provided for in the relevant agreements
[2]	As of September 30, 2016

Employee Benefit Plan (Details

Employee Benefit Plan (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Employee benefit plan

Commitments and Contingencies40

Commitments and Contingencies (Details Narrative) $ in Thousands	1 Months Ended						3 Months Ended	9 Months Ended
	Aug. 31, 2016shares	Mar. 31, 2016USD ($)	Feb. 29, 2016shares	Jan. 31, 2016USD ($)	Aug. 31, 2015USD ($)shares	Apr. 30, 2014ft²	Sep. 30, 2016USD ($)ft²	Sep. 30, 2016USD ($)ft²	Dec. 31, 2015USD ($)
Cost and accumulated amortization included in property and equipment							$ 512	$ 512	$ 501
Other income							$ 33	325
Annual compensation for services				$ 100
Financial Service Agreements [Member]
Number of common stock shares issued for agreements | shares	12,000		31,000
Financial Service Agreements [Member] | Initial Six Month Term [Member]
Number of common stock shares issued for agreements | shares					26,667
Number of common stock issued for agreement					$ 30
Financial Service Agreements [Member] | Additional Six Months [Member]
Number of common stock issued for agreement					$ 30
Series Subordinated Note [Member]
Liquidated damages		$ 300
Series Subordinated Notes [Member]
Interest expense								$ 695
Series Subordinated Note [Member]
Outstanding debt		$ 415
Computer Leases [Member]
Lease term								3 years
Chanhassen [Member]
Area of square feet leases | ft²							22,000	22,000
Operating lease description								The lease commenced on May 1, 2012 and extends through January 2022. In addition to the office space, the Company leases certain office furniture and equipment under operating leases through November 2018.
Chanhassen [Member] | Two Vehicles [Member]
Lease term								36 months
Dallas [Member]
Area of square feet leases | ft²						1,812
Operating lease description						The lease commenced on May 1, 2014 and extends through June 30, 2017. The Company has sub-leased the Dallas, Texas office space, commencing on November 19, 2015 and expiring on June 30, 2017.

Commitments and Contingencies -

Commitments and Contingencies - Summary of Rent Expense to Operating Lease (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 109	$ 112	$ 345	$ 365

Commitments and Contingencies42

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Details) $ in Thousands	Sep. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Three months ending December 31, 2016	$ 87
2,017	292
2,018	242
2,019	241
2,020	248
Thereafter	277
Total future minimum contractual lease payments	$ 1,387

Commitments and Contingencies43

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Capital Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Three months ending December 31, 2016	$ 117
2,017	374
2,018	80
2,019	33
2,020	3
Total payments	607
Less: portion representing interest	(4)
Principal portion	603
Less: unamortized deferred financing costs	(58)
Capital lease balance	545
Less: current maturities of capital lease obligations	(366)	$ (321)
Capital lease, net of current maturities	$ 179	$ 271

Goodwill and Finite Life Inta44

Goodwill and Finite Life Intangible Assets (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 204	$ 204
Impairment

Goodwill and Finite Life Inta45

Goodwill and Finite Life Intangible Assets - Schedule of Identified Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Identified intangible assets Gross	$ 1,701	$ 1,701
Identified intangible assets Accumulated Amortization	(1,421)	(1,069)
Total identified intangible assets net	280	632
Customer Contracts [Member]
Identified intangible assets Gross	784	784
Identified intangible assets Accumulated Amortization	(633)	(510)
Total identified intangible assets net	$ 151	$ 274
Customer Contracts [Member] | Minimum [Member]
Amortizable Period (years)	3 years	3 years
Customer Contracts [Member] | Maximum [Member]
Amortizable Period (years)	5 years	5 years
Proprietary Software [Member]
Identified intangible assets Gross	$ 917	$ 917
Identified intangible assets Accumulated Amortization	(788)	(559)
Total identified intangible assets net	$ 129	$ 358
Amortizable Period (years)	3 years	3 years

Goodwill and Finite Life Inta46

Goodwill and Finite Life Intangible Assets - Schedule of Amortization Expense for Identified Intangible Assets (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Amortization expense	$ 117,000	$ 147,000	$ 352,000	$ 442,000
Customer Contracts [Member]
Amortization expense	$ 41,000	$ 71,000	$ 123,000	$ 213,000
Statement of operations classification	Cost of Revenue	Cost of Revenue	Cost of Revenue	Cost of Revenue
Proprietary Software [Member]
Amortization expense	$ 76,000	$ 76,000	$ 229,000	$ 229,000
Statement of operations classification	Cost of Revenue	Cost of Revenue	Cost of Revenue	Cost of Revenue

Goodwill and Finite Life Inta47

Goodwill and Finite Life Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Three months ending December 31, 2016	$ 118
2,017	114
2,018	38
2,019	10
Total identified intangible assets	$ 280	$ 632

Shareholders' Deficit (Details

Shareholders' Deficit (Details Narrative) - USD ($)	1 Months Ended		9 Months Ended
	Mar. 31, 2016	Jun. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Jul. 13, 2016	Dec. 31, 2015
Issuance of convertible preferred stock, shares			43,530			44,030
Convertible preferred stock price per share			$ 0.0001			$ .0001
Warrants price per share					$ 6
Proceeds from issuance of common stock			$ 1,244,000	$ 34,000
Preferred stock shares outstanding			43,530			44,030
Common Stock [Member]
Proceeds from issuance of common stock			$ 3,600,000
Series C Convertible Preferred Stock [Member]
Issuance of convertible preferred stock, shares		44,030
Convertible preferred stock price per share		$ 100
Warrant term		5 years
Warrants to purchase of common stock, shares		670,475
Warrants price per share		$ 4.94
Preferred stock dividend rate		10.00%
Proceeds from issuance of common stock		$ 10,000,000
Preferred stock converted of common stock closing price percentage		100.00%
Percentage of preferred stock shares issued and outstanding		50.00%
Series C Convertible Preferred Stock [Member] | Investor [Member]
Warrants price per share	$ 4.94
Conversion of stock, shares converted	500
Number of common stock shares issued	10,934
Preferred stock shares outstanding			43,530			44,030

Shareholders' Deficit - Schedul

Shareholders' Deficit - Schedule of Common Stock Issuance (Details) - Common Stock [Member]	9 Months Ended
	Sep. 30, 2016shares
Balance, shares	2,318,139
Conversion of preferred stock to common stock and payment of preferred dividend paid with common stock	10,934
Issuance of common stock for professional services	43,860
March 2016 equity offering	245,226
Share-based compensation	22,539
Issuance of common stock under Associate Stock Purchase Plan	12,109
Warrant exercises	328,710
Balance, shares	2,981,517

Shareholders' Deficit - Summary

Shareholders' Deficit - Summary of Warrant Activity (Details) - $ / shares	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2016
Weighted Avg-Exercise Price, Beginning Balance	$ 16.08	$ 16.35	$ 19.80	$ 19.80
Weighted Avg Exercise Price, Issued	7.28	6.78	6.07
Weighted Avg Exercise Price, Exercised
Weighted Avg-Exercise Price, Ending Balance	$ 14.84	$ 16.08	$ 16.35	$ 14.84
Warrants [Member]
Number of Shares Issuable Under Warrants, Balance beginning	2,459,953	1,909,918	1,723,674	1,723,674
Number of Shares Issuable Under Warrants, Issued	613,135	613,380	319,392
Number of Shares Issuable Under Warrants, Exercised	(136,199)	(63,345)	(133,148)
Number of Shares Issuable Under Warrants, Balance ending	2,936,889	2,459,953	1,909,918	2,936,889
Weighted Avg-Exercise Price, Beginning Balance	$ 9.30	$ 10.35	$ 10.95	$ 10.95
Weighted Avg Exercise Price, Issued	5.44	5.52	5.44
Weighted Avg Exercise Price, Exercised	4.94	4.94	4.94
Weighted Avg-Exercise Price, Ending Balance	$ 8.70	$ 9.30	$ 10.35	$ 8.70
Weighted Remaining Life (Years) Beginning Balance	3 years 11 months 9 days	3 years 10 months 17 days	3 years 11 months 23 days
Weighted Remaining Life (Years) Ending Balance	3 years 11 months 1 day	3 years 11 months 9 days	3 years 10 months 17 days

Shareholders' Deficit - Sched51

Shareholders' Deficit - Schedule of Warrant and Conversion Feature Liabilities (Details) - USD ($) $ / shares in Units, $ in Thousands		9 Months Ended
		Sep. 30, 2016	Dec. 31, 2015
Warrant and conversion feature liability, total		$ 5,830	$ 2,800
Less: current portion of warrant and conversion feature liability		(324)
WARRANT LIABILITY		$ 5,506	2,800
Former Senior Lender [Member]
Shares Issuable		175,911
Current Exercise Price		$ 3.90
Warrant and conversion feature liability, total		$ 691	537
Mr. Davis [Member]
Shares Issuable
Current Exercise Price
Warrant and conversion feature liability, total			45
Series A, B and C Preferred Shareholders [Member]
Shares Issuable		593,790
Current Exercise Price		$ 4.94
Warrant and conversion feature liability, total		$ 2,632	2,175
Lincoln Park [Member]
Shares Issuable		115,400
Current Exercise Price		$ 4.94
Lender of October 2016 Notes Payable [Member]
Shares Issuable		10,000
Current Exercise Price		$ 4.94
Warrant and conversion feature liability, total		$ 45
June 9, 2016 Investors [Member]
Shares Issuable		200,000
Current Exercise Price		$ 4.94
Warrant and conversion feature liability, total		$ 894
Convertible Noteholders [Member]
Shares Issuable	[1]	754,957
Current Exercise Price Description	[1]	Various
Warrant and conversion feature liability, total	[1]	$ 903
Messrs. Hanson and Davis [Member]
Shares Issuable		33,334
Current Exercise Price		$ 4.94
Warrant and conversion feature liability, total		$ 149
Replacement Warrant to Lincoln Park [Member]
Warrant and conversion feature liability, total		$ 516	$ 43
[1]	Shares issuable includes warrants to purchase 357,612 shares of common stock at the lower of $5.55 per share and 80% of the per share offering price in the Company's next underwritten public offering and 397,345 shares issuable upon conversion of the principal amount of the underlying notes at the conversion price of $5.55 per share. The terms of the convertible note agreements specify that the Company will issue shares of common stock at the lower of $5.55 per share or 80% of the price paid per share in an underwritten public offering.

Shareholders' Deficit - Sched52

Shareholders' Deficit - Schedule of Warrant and Conversion Feature Liabilities (Details) (Parenthetical) - Convertible Noteholders [Member]	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Percentage of per share offering price	80.00%
Shares issuable upon conversion of principal amount of note | shares	397,345
Debt conversion price | $ / shares	$ 5.55
Percentage of conversion price paid	80.00%
Warrant One [Member]
Warrants to purchase shares of common stock | shares	170,698
Common stock price per share | $ / shares	$ 5.55
Warrant Two [Member]
Warrants to purchase shares of common stock | shares	186,914
Common stock price per share | $ / shares	$ 5.55

Shareholders' Deficit - Summa53

Shareholders' Deficit - Summary of Assumptions used to Determine Fair Value of Warrants (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Minimum [Member]
Stock price	$ 5.10	$ 8.25	$ 5.10	$ 8.25
Exercise price	5.10	8.25	5.10	8.25
Maximum [Member]
Stock price	7.85	12.45	7.85	20.25
Exercise price	$ 7.85	12.45	$ 7.85	$ 20.25
Warrants [Member]
Stock price
Exercise price
Expected term	2 years 6 months	0 years	2 years 6 months	2 years 6 months
Expected dividend	0.00%	0.00%	0.00%	0.00%
Volatility		0.00%		27.00%
Risk-free interest rate		0.00%
Warrants [Member] | Minimum [Member]
Stock price	$ 5.75		$ 4.05	$ 6.57
Exercise price	$ 4.94		$ 4.94	$ 6.60
Volatility	86.00%		65.00%
Risk-free interest rate	0.69%		0.69%	0.85%
Warrants [Member] | Maximum [Member]
Stock price	$ 8.85		$ 11.25	$ 16.80
Exercise price	$ 6.90		$ 6.90	$ 17.25
Volatility	94.00%		94.00%
Risk-free interest rate	0.92%		1.31%	1.37%

Stock-Based Compensation and 54

Stock-Based Compensation and Benefit Plans (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Aug. 31, 2015	Sep. 30, 2014
Compensation cost related to unvested options awards not yet recognized	$ 281
Cost recognized over weighted average period	1 year 4 months 24 days
First Anniversary Grant Date [Member]
Percentage of stock awards granted to vest on the grant date	50.00%
Non-Employee Directors [Member]
Percentage of stock awards granted to vest on the grant date	50.00%
Stock options expiration period	5 years
2014 Stock Incentive Plan [Member] | New Employees [Member]
Number of common stock shares issued for covering the plan	6,667
2010 Equity Incentive Plan [Member]
Number of common stock shares issued for covering the plan	26,667
Stock option term description	The term of each stock option shall be determined by the board or committee, but shall not exceed ten years. Vested stock options may be exercised in whole or part by the holder giving notice to the Company. Options under the plan may provide for the holder of the option to make payment of the exercise price by surrender of shares equal in value to the exercise price. Options granted to employees generally vest over two to three years. Stock awards granted to non-employee directors generally vest 50% on the grant date and 50% on the first anniversary of the date of the grant. Options expire five years from the date of grant.
2010 Equity Incentive Plan [Member] | Employees [Member] | Minimum [Member]
Stock option vest over period	2 years
2010 Equity Incentive Plan [Member] | Employees [Member] | Maximum [Member]
Stock option vest over period	3 years
Performance Bonus Plan [Member]
Number of stock issued for plan during the period	22,539
2014 Associate Stock Purchase Plan [Member] | Board Of Directors [Member]
Percentage of stock awards granted to vest on the grant date	10.00%
Stock options expiration period	6 months
Number of shares of common stock reserved for issuance			33,334
Percentage of purchase price of shares under the plan of lesser of fair value of common stock shares	85.00%
Number of stock options outstanding shares granted	7,456
2014 Associate Stock Purchase Plan [Member] | Stockholders [Member]
Number of shares of common stock reserved for issuance		33,334

Stock-Based Compensation and 55

Stock-Based Compensation and Benefit Plans - Summary of Shares Issuable Pursuant to Options Granted (Details)	9 Months Ended
	Sep. 30, 2016shares
2010 EIP [Member]
Options granted, Maximum	45,000
Options granted, Outstanding	7,607
Options granted, Exercisable	7,607
2014 EIP [Member]
Options granted, Maximum	101,442
Options granted, Outstanding	62,662
Options granted, Exercisable	35,869
2016 EIP [Member]
Options granted, Maximum	600,000
Options granted, Outstanding	47,449
Options granted, Exercisable	16,341
Issued Outside of Plans [Member]
Options granted, Maximum
Options granted, Outstanding	216,455
Options granted, Exercisable	158,460
Shares Issuable Pursuant to Options Granted [Member]
Options granted, Outstanding	334,173
Options granted, Exercisable	218,277

Stock-Based Compensation and 56

Stock-Based Compensation and Benefit Plans - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Options, Beginning Balance	290,380	318,261	249,951
Number of Options, Granted	49,005	6,668	99,605
Number of Options, Exercised
Number of Options, Forfeited or Expired	(5,212)	(34,549)	(31,295)
Number of Options, Ending Balance	334,173	290,380	318,261
Number of Options, Exercisable	218,277
Weighted Avg-Exercise Price, Beginning Balance	$ 16.08	$ 16.35	$ 19.80
Weighted Avg-Exercise Price, Granted	7.28	6.78	6.07
Weighted Avg-Exercise Price, Exercised
Weighted Avg-Exercise Price, Forfeited or Expired	13.12	16.18	12.15
Weighted Avg-Exercise Price, Ending Balance	14.84	$ 16.08	$ 16.35
Weighted Average Price, Exercisable	$ 18.22
Weighted Remaining Contractual Life (Years), Beginning Balance	3 years 9 months 26 days	3 years 8 months 12 days	3 years 11 months 12 days
Weighted Remaining Contractual Life (Years), Ending Balance	3 years 9 months 7 days	3 years 9 months 26 days	3 years 8 months 12 days
Weighted Remaining Contractual Life (Years), Exercisable, Balance	3 years 5 months 19 days
Intrinsic Value, Balance beginning	$ 83	$ 122
Intrinsic Value, Balance ending	210	$ 83	$ 122
Intrinsic Value, Exercisable, Balance	$ 71

Stock-based Compensation and 57

Stock-based Compensation and Benefit Plans - Schedule of Stock Options Outstanding and Exercisable (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding	334,173
Weighted Average Remaining Contractual Life	3 years 9 months 7 days
Weighted Average Price	$ 14.84
Aggregate Intrinsic Value	$ 210	$ 83	$ 122
Number Exercisable	218,277
Weighted Average Price, Exercisable	$ 18.22
Aggregate Intrinsic Value, Options Exercisable	$ 71
Exercise Price Range One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock option, exercise price, Minimum	$ 5.10
Stock option, exercise price, Maximum	$ 7.85
Number Outstanding	128,387
Weighted Average Remaining Contractual Life	4 years 5 months 27 days
Weighted Average Price	$ 6.52
Aggregate Intrinsic Value	$ 209
Number Exercisable	43,323
Weighted Average Price, Exercisable	$ 6.53
Aggregate Intrinsic Value, Options Exercisable	$ 70
Exercise Price Range Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock option, exercise price, Minimum	$ 8.25
Stock option, exercise price, Maximum	$ 12.44
Number Outstanding	14,983
Weighted Average Remaining Contractual Life	3 years 7 months 13 days
Weighted Average Price	$ 10.67
Aggregate Intrinsic Value	$ 1
Number Exercisable	10,475
Weighted Average Price, Exercisable	$ 10.57
Aggregate Intrinsic Value, Options Exercisable	$ 1
Exercise Price Range Three [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock option, exercise price, Minimum	$ 12.45
Stock option, exercise price, Maximum	$ 20.25
Number Outstanding	64,986
Weighted Average Remaining Contractual Life	3 years 10 months 21 days
Weighted Average Price	$ 13.01
Aggregate Intrinsic Value
Number Exercisable	42,551
Weighted Average Price, Exercisable	$ 13.02
Aggregate Intrinsic Value, Options Exercisable
Exercise Price Range Four [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock option, exercise price, Minimum	$ 22.50
Stock option, exercise price, Maximum	$ 60
Number Outstanding	125,817
Weighted Average Price	$ 24.77
Aggregate Intrinsic Value
Number Exercisable	121,928
Weighted Average Price, Exercisable	$ 24.84
Aggregate Intrinsic Value, Options Exercisable

Stock-Based Compensation and 58

Stock-Based Compensation and Benefit Plans - Schedule of Fair Values of Stock Options Granted and Assumptions used for Black-Scholes-Merton Option Pricing Model (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Expected Term	3 years		3 years
Expected Dividend	0.00%	0.00%	0.00%	0.00%
Volatility, minimum	78.00%	31.00%	61.00%	26.00%
Volatility, maximum	83.00%	45.00%	83.00%	45.00%
Risk Free Interest Rate, minimum	0.71%	0.90%	0.71%	0.22%
Risk Free Interest Rate, maximum	0.86%	1.08%	1.31%	1.08%
Minimum [Member]
Stock price	$ 5.10	$ 8.25	$ 5.10	$ 8.25
Exercise price	5.10	$ 8.25	5.10	$ 8.25
Expected Term		2 years		2 years
Maximum [Member]
Stock price	7.85	$ 12.45	7.85	$ 20.25
Exercise price	$ 7.85	$ 12.45	$ 7.85	$ 20.25
Expected Term		3 years		3 years

Stock-Based Compensation and 59

Stock-Based Compensation and Benefit Plans - Summary of Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 167	$ 148	$ 475	$ 302
Cost of Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	14	17	87	33
Sales And Marketing Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	47	27	130	58
Research And Development Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	12	24	86	63
General And Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 94	$ 80	$ 172	$ 148

Related Party Transaction (Deta

Related Party Transaction (Details Narrative) - USD ($)

Aug. 12, 2016

Aug. 01, 2016

Jul. 14, 2016

Jul. 13, 2016

May 09, 2016

Dec. 22, 2015

May 07, 2014

Feb. 29, 2016

Dec. 31, 2014

Sep. 30, 2016

Sep. 30, 2015

Aug. 22, 2016

Conversion of debt into public offering

$ 752,000

Debt instruments interest rate

24.00%

Warrants exercise Price

$ 6

Percentage of interst for principal amount descriptions

In addition to the Company providing three days advance written notice prior to repayment, under the terms of the note upon repayment of the note (including on the maturity date) the Company is obligated to pay a 20% premium on the principal amount and any accrued default interest then due on the note, which in the aggregate is equal to 120% of the principal amount and any accrued default interest then due on the note.

Mr. Hanson [Member]

Line of credit

$ 1,500,000

Percentage of interest to line of credit

10.00%

Line of credit maturity date

Jan. 31, 2017

Proceeds from borrowings

$ 150,000

Debt instruments interest rate

10.00%

Debt instruments maturity date

Jun. 30, 2016

Debt instruments maturity date description

June 30, 2016 to January 31, 2017.

Notes payable

$ 75,000

Issuance of cashless warrants and stock during period

8,334

Equity issuance price per share

$ 4.94

Class of warrants issued during period

13,334

8,334

Warrants received during period

66,672

Convertible debt

$ 240,000

Proceeds from issuance of warrants

$ 200,000

Mr. Hanson [Member] | October 6, 2016 [Member]

Conversion of debt into public offering

$ 100,000

Hanson And Davis [Member]

Proceeds from borrowings

$ 2,500,000

Debt instruments maturity date

Aug. 31, 2017

Jan. 31, 2017

Notes payable

$ 239,000

Convertible debt

$ 263,158

Proceeds from issuance of warrants

$ 250,000

Percentage of interst for principal amount descriptions

conversion price per share equal to the lower of $5.55 and 80%

Debt instrument monthly installment

$ 239,000

Hanson And Davis [Member] | Minimum [Member]

Debt instruments interest rate

10.00%

Hanson And Davis [Member] | Maximum [Member]

Debt instruments interest rate

18.00%

Mr. Davis [Member]

Debt instruments interest rate

10.00%

Notes payable

$ 227,000

$ 150,000

Issuance of cashless warrants and stock during period

16,667

Equity issuance price per share

$ 4.94

Class of warrants issued during period

20,000

22,665

16,667

24,000

Warrants expiration term

5 years

5 years

Warrants received during period

150,003

Warrants exercise Price

$ 4.94

$ 6.75

Convertible debt

$ 360,000

Proceeds from issuance of warrants

$ 300,000

Mr. Davis [Member] | Warrants [Member]

Warrants exercisable period

5 years

Mr. Davis [Member] | October 6, 2016 [Member]

Conversion of debt into public offering

$ 150,000

Mr. Davis [Member] | October 12, 2016 [Member]

Conversion of debt into public offering

432,000

Conversion stock amount

$ 250,000

Related Party Transactions - Sc

Related Party Transactions - Schedule of Related Party Transactions (Details) - Board Of Directors [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Debt held by related parties	$ 2,697,000		$ 2,697,000		$ 1,748,000
Accrued interest to related parties	367,000		367,000		232,000
Warrants held by related parties	1,144,221		1,144,221		$ 691,043
Related party interest expense	$ 51,000	$ 34,000	$ 14,000	$ 115,000

Concentrations (Details Narrati

Concentrations (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Accounts Receivable [Member] | One Customer [Member]
Concentration Risk [Line Items]
Concentration risk (as a percent)			22.00%
Accounts Receivable [Member] | One Customer [Member]
Concentration Risk [Line Items]
Accounts receivable	$ 480,000		$ 480,000
Accounts Receivable [Member] | Two Customer [Member]
Concentration Risk [Line Items]
Accounts receivable	240,000		240,000
Law Firm [Member]
Concentration Risk [Line Items]
Expenditures amount	$ 344,000		$ 790,000
Concentration risk (as a percent)	14.40%		10.70%		30.80%
Accounts payable	$ 412,000		$ 412,000		$ 342,000
Law Firm [Member] | Accounts Payable [Member]
Concentration Risk [Line Items]
Concentration risk (as a percent)			23.40%
Technology Partner [Member]
Concentration Risk [Line Items]
Expenditures amount	$ 261,000		$ 746,000	$ 679,000
Concentration risk (as a percent)	10.90%		10.10%
Accounts payable	$ 250,750		$ 250,750
Technology Partner [Member] | Accounts Payable [Member]
Concentration Risk [Line Items]
Concentration risk (as a percent)			14.30%
Technology Partner [Member] | Supplier Expenditures [Member]
Concentration Risk [Line Items]
Concentration risk (as a percent)				13.00%
Public Accounting Firm [Member]
Concentration Risk [Line Items]
Accounts payable	$ 186,000		$ 186,000
Public Accounting Firm [Member] | Accounts Payable [Member]
Concentration Risk [Line Items]
Concentration risk (as a percent)			10.60%
Revenue [Member] | One Customer [Member]
Concentration Risk [Line Items]
Concentration risk (as a percent)	20.30%
Sales revenue	$ 467,000
Revenue [Member] | No Single Customer [Member] | Maximum [Member]
Concentration Risk [Line Items]
Concentration risk (as a percent)		10.00%	10.00%	10.00%
Accounts Receivable [Member] | One Customer [Member]
Concentration Risk [Line Items]
Concentration risk (as a percent)					17.00%
Accounts receivable					$ 121,000
Accounts Receivable [Member] | Two Customer [Member]
Concentration Risk [Line Items]
Concentration risk (as a percent)			11.00%		15.80%
Accounts receivable					$ 113,000
Accounts Receivable [Member] | Three Customer [Member]
Concentration Risk [Line Items]
Concentration risk (as a percent)					13.30%
Accounts receivable					$ 95,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)

Oct. 21, 2016

Oct. 19, 2016

Oct. 12, 2016

Oct. 06, 2016

Dec. 22, 2015

Oct. 31, 2016

Sep. 30, 2016

Sep. 30, 2015

Aug. 22, 2016

Jul. 14, 2016

Jul. 13, 2016

May 09, 2016

Feb. 29, 2016

Warrants price per share

$ 6

Proceeds from note payable

$ 5,181,000

$ 750,000

Subsequent Event [Member]

Outstanding principal

$ 4,000,000

Warrants to purchase of common stock, shares

643,528

5,000

Proceeds from private placements

$ 8,000,000

Warrants price per share

$ 5.55

$ 4.94

Proceeds from note payable

$ 3,800,000

Debt maturity date

Oct. 31, 2016

Subsequent Event [Member] | Fourth Quarter of 2016 [Member]

Prepaid offering costs

$ 1,200,000

Mr. Hanson [Member]

Warrants to purchase of common stock, shares

13,334

8,334

Convertible debt

$ 240,000

Debt maturity date

Jun. 30, 2016

Mr. Hanson [Member] | Subsequent Event [Member]

Outstanding principal

$ 1,000,000

Warrants term

5 years

Warrants to purchase of common stock, shares

200,000

Mr. Davis [Member]

Warrants to purchase of common stock, shares

24,000

20,000

22,665

16,667

Convertible debt

$ 360,000

Warrants price per share

$ 6.75

$ 4.94

Mr. Davis [Member] | Subsequent Event [Member]

Outstanding principal

$ 250,000

$ 150,000

Warrants term

5 years

5 years

Warrants to purchase of common stock, shares

50,000

30,000

Convertible debt

$ 432,000