Digiliti Money (DGLT) 10-Q 15 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 05, 2017
Document And Entity Information
Entity Registrant Name	DIGILITI MONEY GROUP, INC.
Entity Central Index Key	1,487,906
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,877,280
Trading Symbol	DGLT
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 5,731	$ 7
Restricted cash	725
Accounts receivable, net	4,030	2,885
Deferred commissions	29	36
Prepaid expenses and deferred costs	1,306	313
TOTAL CURRENT ASSETS	11,821	3,241
PROPERTY AND EQUIPMENT, net	646	696
GOODWILL	204	204
INTANGIBLE ASSETS, net		76
DEFERRED COMMISSIONS	11	13
OTHER NON-CURRENT ASSETS	308	266
TOTAL ASSETS	12,990	4,496
CURRENT LIABILITIES
Accounts payable	2,314	2,205
Checks issued in excess of deposits		199
Accrued expenses	332	241
Accrued interest	262	675
Deferred revenue	823	697
Warrant and conversion feature liability, current		2,870
Current maturities of capital lease obligations	311	379
Short-term debt and current portion of long-term debt	1,463	4,229
TOTAL CURRENT LIABILITIES	5,505	11,495
CAPITAL LEASE, net of current maturities	195	238
LONG TERM DEBT, net of current portion	288	316
WARRANT LIABILITY, net of current portion	1,206	7,352
DEFERRED REVENUE	241	306
ACCRUED RENT	118	121
TOTAL LIABILITIES	7,553	19,828
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY (DEFICIT)
Convertible preferred stock, $.0001 Par Value, 20,000,000 shares authorized, 0 and 43,530 shares issued and outstanding
Common shares, $.0001 Par Value, 500,000,000 shares authorized, 9,757,448 and 2,103,392 shares issued and outstanding	1
Additional paid-in capital	93,453	69,119
Accumulated deficit	(88,017)	(84,451)
TOTAL SHAREHOLDERS' EQUITY (DEFICIT)	5,437	(15,332)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)	$ 12,990	$ 4,496

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares authorized	20,000,000	20,000,000
Convertible preferred stock, shares issued	0	43,530
Convertible preferred stock, shares outstanding	0	43,530
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common Stock, shares, issued	9,757,448	2,103,392
Common stock, shares outstanding	9,757,448	2,103,392

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
REVENUE	$ 2,518	$ 1,460
COST OF REVENUE	1,681	1,151
GROSS PROFIT	837	309
OPERATING EXPENSES
Sales and Marketing	1,096	938
Research and Development	552	445
General and Administrative	1,344	1,036
TOTAL OPERATING EXPENSES	2,992	2,419
OPERATING LOSS	(2,155)	(2,110)
INTEREST EXPENSE AND OTHER NON-CASH FINANCING CHARGES	1,483	1,051
MARK-TO-MARKET WARRANT AND DEBT (INCOME) EXPENSE	(904)	1,396
NET LOSS	(2,734)	(4,557)
LESS: CUMULATIVE UNPAID PREFERRED STOCK DIVIDENDS	(95)	(372)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (2,829)	$ (4,929)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic and fully diluted	3,397,782	1,637,099
Net loss per common share - basic and diluted	$ (0.83)	$ (3.01)

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Shareholders' Equity (Deficit) (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands	Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2016			$ 69,119	$ (84,451)	$ (15,332)
Balance, shares at Dec. 31, 2016	43,530	2,103,392
Conversion of preferred stock and dividends to common stock			832	(832)
Conversion of preferred stock and dividends to common stock, shares	(43,530)	1,440,310
March 2017 equity offering, net of costs			8,769		8,769
March 2017 equity offering, net of costs, shares		2,333,334
Conversion of convertible notes		$ 1	13,798		13,798
Conversion of convertible notes, shares		3,795,042
Issuance of warrants			510		510
Issuance of common stock for professional services			316		316
Issuance of common stock for professional services, shares		75,669
Share-based compensation			52		52
Issuance of common stock under Associate Stock Purchase Plan			57		57
Issuance of common stock under Associate Stock Purchase Plan, shares		9,701
Net loss				(2,734)	(2,734)
Balance at Mar. 31, 2017		$ 1	$ 93,453	$ (88,017)	$ 5,437
Balance, shares at Mar. 31, 2017		9,757,448

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
OPERATING ACTIVITIES
Net loss	$ (2,734)	$ (4,557)
Adjustments to reconcile net loss to net cash used in operating activities:
Accretion of discount/amortization of financing costs	965	19
Change in fair value of warrant liability	(117)	1,678
Depreciation and amortization of intangibles	179	196
Stock-based compensation	109	129
Warrants and common stock issued for professional services	82	172
Amortization of deferred commissions	13	22
Other items related to debt and warrant conversion	(155)	618
Net loss after adjustments for net cash operating activities	(1,658)	(1,723)
Changes in operating assets and liabilities:
Accounts receivable	(1,186)	34
Deferred commissions	(5)	(2)
Prepaid expenses	(867)	(253)
Accounts payable	(91)	468
Accrued expenses	87	81
Accrued interest	21	114
Deferred revenue	61	(236)
Net cash used in operating activities	(3,638)	(1,517)
INVESTING ACTIVITIES
Purchase of fixed assets	(53)	(14)
Investment in certificate of deposit, subject to compensating balance	(725)
Net cash used in investing activities	(778)	(14)
FINANCING ACTIVITIES
Proceeds from issuance of notes and warrants	3,289	375
Repayment of notes	(2,219)	(152)
Issuance of shares of common stock, net of costs	8,769	1,047
Warrants exercised		657
Payment of debt issuance costs	(275)
Repayment of capital lease	(122)	(87)
Proceeds from bank borrowing	725	69
Repayment of bank borrowing	(27)	(26)
Net cash provided by financing activities	10,140	1,883
NET DECREASE IN CASH AND CASH EQUIVALENTS	5,724	352
CASH AND CASH EQUIVALENTS
Beginning of period	7	45
End of period	5,731	397
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	136	17
NON-CASH INVESTING AND FINANCING TRANSACTIONS
Conversion of debt and interest to equity	13,798
Fixed asset additions financed through capital lease		36
Common stock issued for preferred stock dividends	832	4
Conversion of warrant liability to additional paid-in-capital		$ 258

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
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 Digiliti Money Group, 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. The Company’s business operations are conducted through its wholly owned subsidiary, Digiliti Money, Inc. (formerly Cachet Financial Solutions, Inc.), a Minnesota corporation (the “Subsidiary”). The Company was incorporated in Delaware in February 2010 and acquired the business of the Subsidiary in February 2014. In April 2017, the Company changed its corporate name from Cachet Financial Solutions, Inc. to Digiliti Money Group, Inc. The Company’s common stock trades on the Nasdaq Capital Market under the symbol “DGLT”. 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 Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2017 (the “March 2017 8-K”). Capital Structure Change On July 27, 2016, the Company effected a reverse split of its outstanding shares of common stock at a ratio of 1:15, and on March 9, 2017, the Company effected a reverse split of its outstanding shares of its common stock at a ratio of 1:1.5 (together, the “Reverse Stock Splits”). As a result of the Reverse Stock Splits, the Company’s historical financial statements have been revised to reflect share counts and per share data as if the Reverse Stock Splits had been in effect for all periods presented. On March 10, 2017, the Company’s common stock began trading on the Nasdaq Capital Market. On March 15, 2017, the Company closed an underwritten public offering of 2,333,334 shares of its common stock at a public offering price of $4.50 per share (the “Offering”). Proceeds received from the Offering were approximately $8.8 million after deducting $1.7 million of underwriting discounts, commissions and other offering costs. Simultaneously with the closing of the Offering, certain noteholders converted approximately $3.0 million of the aggregate principal balance of certain convertible notes into 844,446 shares of the Company’s common stock. Upon closing of the Offering, the Company issued 1,440,310 shares of restricted common stock to holders of the Company’s Series C Convertible Preferred Stock upon the automatic conversion of the Series C Convertible Preferred Stock triggered by the closing of the Offering. Additionally, the Company issued 150,878 shares of common stock upon the conversion of approximately $679,000 of indebtedness outstanding under a line of credit. On March 21, 2017, the Company issued 2,799,718 shares of restricted common stock upon the Company’s exercise of its option, triggered by the listing on the Nasdaq Capital Market, to cause the mandatory conversion of approximately $10.1 million of the aggregate principal balance of certain convertible notes. See Note 4 and Note 8 to the Condensed Consolidated Financial Statements in this report. As a result of these events, on March 31, 2017, the Company’s independent registered public accounting firm, Lurie, LLP, reissued its report in connection with the Company’s consolidated financial statements for the fiscal years ended December 31, 2016 and 2015, to eliminate the going concern uncertainty paragraph. Summary of Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies during the three months ended March 31, 2017, 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 March 2017 8-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 (In thousands, except share and per share data) March 31, 2017 March 31, 2016 Net loss $ (2,734 ) $ (4,557 ) Less: Cumulative unpaid preferred stock dividends (95 ) (372 ) Net loss attributable to common shareholders (2,829 ) (4,929 ) Weighted average common shares outstanding 3,397,782 1,637,099 Net loss per common share – basic and diluted $ (0.83 ) $ (3.01 ) 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 March 31, 2017 March 31, 2016 Convertible preferred stock — 638,328 Stock options 217,450 212,148 Warrants 3,597,242 1,273,246 3,814,692 2,123,722 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, the following three levels of inputs apply: 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 instruments that are carried at fair value are valued using level 3 inputs utilizing the Black-Scholes option pricing model or a Monte Carlo simulation, depending on the instrument. 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 months ended March 31, 2017. 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 allowance for doubtful accounts, percentage of completion used to recognize revenue from professional services, assumptions used to value stock options and warrants, conversion feature liabilities, conversion incentive and share purchase price adjustments. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, “ Improvements to Employee Share-Based Payment Accounting. Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers. In January 2016, the FASB issued No. ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities, In February 2016, the FASB issued No. ASU 2016-02 “ Leases, In June 2016, the FASB issued ASU No. 2016-13, “ Measurement of Credit Losses on Financial Instruments, In August 2016, the FASB issued ASU No. 2016-15, “ Classification of Certain Cash Receipts and Cash Payments, In January 2017, the FASB issued ASU No. 2017-01, “ Clarifying the Definition of a Business, In January 2017, the FASB issued ASU No. 2017-04, “ Simplifying the Test for Goodwill,

Prepaid Expenses and Deferred C

Prepaid Expenses and Deferred Costs	3 Months Ended
	Mar. 31, 2017
Prepaid Expenses
Prepaid Expenses and Deferred Costs	2. Prepaid Expenses and Deferred Costs Prepaid expenses and deferred costs primarily consist of prepayment of licenses and maintenance fees, or deposits with, the providers of RDC software capabilities to the Company.

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment	3. Property and Equipment Property and equipment consists of the following: As of (In thousands) March 31, 2017 December 31, 2016 Computer equipment $ 259 $ 255 Data center equipment 1,252 1,230 Purchased software 833 814 Furniture and fixtures 95 90 Leasehold improvements 81 78 Total property and equipment 2,520 2,467 Less: accumulated depreciation (1,874 ) (1,771 ) Net property and equipment $ 646 $ 696 Depreciation expense for the periods presented was as follows: Three Months Ended (In thousands) March 31, 2017 March 31, 2016 Depreciation expense $ 103 $ 79

Financing Arrangements

Financing Arrangements	3 Months Ended
	Mar. 31, 2017
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 Company’s financing arrangements contain various covenants. There are no financial covenants required by these financing arrangements and as of March 31, 2017, the Company believes that it is in compliance with all covenants. 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 to the Condensed Consolidated Financial Statements in this report. The Company’s debt and accrued interest outstanding as of the periods presented consisted of the following: Principal Balance Accrued Interest (In thousands) March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 Note Payable – Bank, due January 2018, interest at 2.85% $ 725 $ — $ — $ — Notes Payable to Directors 221 3,078 12 411 Convertible Notes, due 2016 and 2017, interest between 0% and 8% (1) — 9,211 — 4 Series Subordinated Note, due January 2016, interest at 12% 415 415 250 228 Notes Payable, due October 2016, interest between 8.25% and 12% — 67 — 32 Note Payable, due August 2021, interest at 0% 192 192 — — Installment Note Payable – Bank 207 234 — — Total debt 1,760 13,197 262 675 Discount on notes payable — (8,519 ) Unamortized deferred financing costs (9 ) (133 ) Total debt, net 1,751 4,545 Less: short-term debt and current portion of long-term debt 1,463 4,229 Long-term debt, net of current portion $ 288 $ 316 (1) Includes notes payable to Messrs. Hanson and Davis totaling approximately $906,000 as of December 31, 2016. Future maturities of long-term debt as of March 31, 2017 are as follows (in thousands): Nine months ending December 31, 2017 $ 658 2018 901 2019 9 2020 — 2021 192 Total debt $ 1,760 Note Payable – Bank On March 29, 2017, the Company executed a commercial loan note payable with Venture Bank and received proceeds of $725,000, which was primarily used for working capital purposes. The loan bears interest at 2.85% and requires a balloon repayment of the principal and interest due on the maturity date of January 2, 2018. Upon the occurrence of an event of default, as defined by the debt agreement, the interest rate would increase to 8.85%. The loan is secured by a $725,000 certificate of deposit which the Company is required to maintain at Venture Bank for a nine-month term. The certificate of deposit is classified as restricted cash. Notes Payable to Directors 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 to the Condensed Consolidated Financial Statements in this report. Convertible Notes, due 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 as of December 31, 2016 had been reduced and was being accreted to face value through each of the maturity dates. Convertible notes that converted upon listing Between June 2016 and January 2017, the Company issued to several investors convertible notes, which were unsecured and did not bear any interest, and warrants to purchase the Company’s common stock. On March 10, 2017, the Company’s common stock began trading on the Nasdaq Capital Market (the “Triggering Event”) and on March 15, 2017, the Company closed an underwritten public offering of 2,333,334 shares of common stock at a public offering price of $4.50 per share. As a result of the Triggering Event, the Company exercised its right to mandatorily convert outstanding principal on the convertible notes totaling $10.8 million into 2,950,596 shares of common stock with approximately $679,000 converted at $4.50 and $10.1 million converted at a price equal to 80% of the Offering price, or $3.60 per share. Additionally, three investors elected to convert outstanding principal on the convertible notes totaling approximately $3.0 million into 844,446 shares of common stock at a price equal to 80% of the Offering price, or $3.60 per share. Convertible notes to other investors In December 2016, the Company entered into a securities purchase agreement with FirstFire Global Opportunities Fund, LLC (“FirstFire”), pursuant to which the Company issued to FirstFire a Convertible Promissory Note in the amount of $550,000 (the “FirstFire Note”). FirstFire funded $550,000 of principal due under the FirstFire Note and after giving effect to original issue discount the Company received gross proceeds of $500,000. The FirstFire Note bore interest at a rate of 5% per annum and was due June 12, 2017. On March 15, 2017, the Company repaid the FirstFire Note from the Offering proceeds. The repayment including principal, accrued interest and prepayment premium totaled approximately $640,000. On December 23, 2016, the Company issued a Convertible Term Promissory Note to FLMM Ltd. (“FLMM”) in the amount of $1,440,000, payable in cash (the “FLMM Note”). The FLMM Note was secured by substantially all of the assets of the Subsidiary, bore interest at a rate of 8% per annum and was payable in full on March 15, 2017. FLMM elected to convert $240,000 of principal into 66,667 shares of common stock at a price equal to 80% of the Offering price, or $3.60 per share. On March 15, 2017, the Company repaid the remaining principal balance of $1.2 million, plus accrued interest. On December 22, 2016, the Company issued a Convertible Term Promissory Note to Jon D and Linda W Gruber Trust (“Gruber”) in the amount of $75,000, payable in cash (the “Gruber Note”). The Gruber Note was unsecured, bore interest at a rate of 8% per annum and was payable in full on March 22, 2017, which under certain circumstances, could be extended to May 31, 2017. Gruber consented to receiving prepayment of the Gruber Note and on March 15, 2017, the Company repaid in full the total balance of approximately $76,000, including accrued interest. Series Subordinated Note, due January 2016, interest at 12% The series subordinated note, in original principal amount of approximately $415,000, was due in January 2016. As of March 31, 2017, the Company had not repaid the note. On March 31, 2016, the holder of the note commenced legal action against the Company. During April 2017, after the close of its fiscal quarter, the Company settled this legal action and paid approximately $665,000 in full satisfaction of the claim. See Note 6 to the Condensed Consolidated Financial Statements in this report. 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 year ended December 31, 2016, the Company repaid three of the notes for approximately $11,000, including principal and accrued interest, and extended the maturity date of the remaining notes to August 2016 and then to October 2016. The Company agreed to a settlement with the holder of these notes and, on January 24, 2017, the Company settled the principal and accrued but unpaid interest due under the remaining notes for a cash payment of $80,000 and the issuance of 6,667 shares of the Company’s common stock to the holder. 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 covenants associated with the loan, which has a maturity date of August 2021, at which time the full principal amount of $192,000 is due. The loan contains a provision whereby, if the Company transfers more than a majority of its current 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. The Company is in compliance with all covenants and has no past due obligations under the loan. 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 outstanding principal of this note at March 31, 2017 was approximately $207,000. The prime rate of interest was 4% as of March 31, 2017 and 3.75% as of December 31, 2016.

Employee Benefit Plan

Employee Benefit Plan	3 Months Ended
	Mar. 31, 2017
Retirement Benefits [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 either of the three-month periods ended March 31, 2017 or 2016.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies Operating Leases Rent expense pursuant to operating leases for the periods presented is as follows: ` Three Months Ended (In thousands) March 31, 2017 March 31, 2016 Rent expense $ 99 $ 102 The lease for office space of the Company’s headquarters contains 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 March 31, 2017 are as follows (in thousands): Nine months ending December 31, 2017 $ 211 2018 242 2019 241 2020 248 2021 255 Thereafter 21 $ 1,218 The Company is due $8,400 in future minimum lease receivables through June 30, 2017, the expiration date of its sublease on office space in Dallas, Texas. Capital Leases The total cost of capital leased assets, net of accumulated depreciation, included in property and equipment as of March 31, 2017 and December 31, 2016 totaled approximately $516,000 and $575,000, respectively. Future minimum lease payments pursuant to capital leases as of March 31, 2017 are as follows (in thousands): Nine months ending December 31, 2017 $ 305 2018 154 2019 89 2020 5 Total payments 553 Less: portion representing interest (13 ) Principal portion 540 Less: unamortized deferred financing costs (34 ) Capital lease balance 506 Less: current maturities of capital lease obligations (311 ) Capital lease, net of current maturities $ 195 Litigation Cachet Banq 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. On October 27, 2016, the Court entered a judgment against the Company which, effective from April 15, 2017, enjoins the Company 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. In April 2017, the Company changed its name to “Digiliti Money Group, Inc.” and the name of its subsidiary to “Digiliti Money, Inc.”. The Court denied Cachet Banq’s request for attorney’s fees and costs. Series Subordinated Note On March 31, 2016, the holder of the series subordinated note referred to in Note 4 to the Condensed Consolidated Financial Statements in this report, 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 alleged that the Company was in default and owed the note holder approximately $695,000 plus interest and assessments accruing after April 1, 2016. The dispute centered on the note holder’s interpretation of the agreement. Based on the note holder’s interpretation of the agreement, the note holder sought an extraordinary amount in alleged liquidated damages (approximately $300,000 on an outstanding debt of approximately $415,000). The Company continued to dispute the allegations of the note holder and intended 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 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. On October 19, 2016, the Court entered an order granting in part and denying in part the note holder’s motion for summary judgment. If the plaintiff in this matter were successful in its lawsuit, the Company would have been subject to a penalty of $500 per day for each day that the Company was in default of the note. As of March 31, 2017 and December 31, 2016, the Company had accrued approximately $250,000 and $176,000, respectively, related to this $500 per day penalty, which is reflected in accrued interest on the condensed consolidated balance sheets. In April 2017, after close of the Company’s fiscal quarter, the Company paid approximately $665,000 in full satisfaction and settlement of this claim, consisting of outstanding debt of approximately $415,000 plus accrued interest and penalty. 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 17,778 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 another payment totaling $30,000. In February 2016, the Company renewed the services agreement and issued the firm an additional 20,667 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 8,000 shares of common stock. In January 2017, the Company again renewed the services agreement and issued the firm an additional 33,334 shares of common stock, a warrant to purchase 12,974 shares of the Company’s common stock and a non-refundable expense deposit of $12,500, in exchange for another six months of services. In January 2017, the Company entered into an agreement with a firm to provide public relations, investor relations, shareholder communications and other consulting services. The agreement required the issuance of 16,667 shares of the Company’s common stock and a warrant to purchase 6,487 shares of the Company common stock, in addition to a non-refundable expense deposit of $6,250. Additionally, in January 2017, the Company entered into an agreement with another firm to provide investor relations, shareholder communications and other consulting services. The agreement required the issuance of 2,334 shares of the Company’s common stock and payments totaling $18,000. The term of each agreement is three months commencing January 18, 2017. In February 2017, the Company entered into an agreement with a firm to provide general investor relations, shareholder communications and other consulting services. The agreement required the issuance of 16,667 shares the Company’s common stock and payments totaling $96,000. The term of the agreement is 12 months commencing February 15, 2017.

Goodwill and Finite Lived Intan

Goodwill and Finite Lived Intangible Assets	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Finite Lived 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 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 both March 31, 2017 and December 31, 2016. The Company conducted its annual goodwill impairment test as of December 31, 2016 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 March 31, 2017 and will continue to monitor conditions and changes that could indicate an impairment of goodwill. Amortization expense for identified intangible assets is summarized below: Three Months Ended Statement of March 31, March 31, Operations (In thousands) 2017 2016 Classification Customer contracts $ 23 $ 41 Cost of Revenue Proprietary software 53 76 Cost of Revenue Total amortization on identified intangible assets $ 76 $ 117

Shareholders' Deficit

Shareholders' Deficit	3 Months Ended
	Mar. 31, 2017
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 446,983 shares of its common stock at $7.41 per share, as adjusted, in a private placement. As of December 31, 2016, 43,530 shares of Series C Preferred Stock were outstanding. On March 15, 2017, upon closing of the Offering, all outstanding Series C Preferred Stock and accumulated dividends were automatically converted into 1,440,310 shares of common stock. Also, effective simultaneously with the closing of the Offering, certain noteholders converted principal owed under convertible promissory notes into shares of common stock at a conversion price of $3.60 per share (the “Note Conversions”). Because the conversion price of the Note Conversions was less than $7.41 per share, the conversion price of all Series C Preferred Stock was automatically set at $3.60 per share. Common Stock The Company’s common stock issuances for the three months ended March 31, 2017 were as follows: Shares of Common Stock Balance, December 31, 2016 2,103,392 Conversion of preferred stock and dividends to common stock 1,440,310 Conversion of convertible notes 3,795,042 March 2017 equity offering 2,333,334 Issuance of common stock under Associate Stock Purchase Plan 9,701 Issuance of common stock for professional services 75,669 Balance, March 31, 2017 9,757,448 Warrants The Company’s warrant activity for the three months ended March 31, 2017 consisted of the following: Number of Weighted Shares Issuable Weighted Avg. Remaining Under Warrants Exercise Price Life (Years) Balance, December 31, 2016 2,895,685 $ 11.60 4.23 Issued 706,642 3.95 Expired (5,085 ) 31.50 Exercised — — Balance, March 31, 2017 3,597,242 $ 8.13 4.16 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. As of March 31, 2017 and December 31, 2016, the Company’s warrant and conversion feature liabilities consisted of the following (in thousands except share and per share data): Current Balance as of Shares Exercise March 31, December 31, Counterparty Issuable Price 2017 2016 Series A, B and C preferred shareholders 45,004 $ 3.60 $ 119 $ 1,164 Lincoln Park Capital Fund 66,667 3.60 179 234 Trooien Capital, LLC 333,333 3.60 908 968 Convertible noteholders — — — 7,369 June 2016 investors — — — 406 Lender of October 2016 notes payable — — — 10 Messrs. Hanson and Davis — — — 64 Sutter Securities Incorporated — — — 5 Craft Capital Management LLC — — — 2 Warrant and conversion feature liability, total $ 1,206 10,222 Less: current portion of warrant and conversion feature liability — (2,870 ) Warrant liability $ 1,206 7,352 Warrants that contain anti-dilution protection are carried as liabilities on the 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 is determined at the issuance date, and each quarter for warrants recognized as liabilities and carried at fair value, using the Black-Scholes option pricing model and the following significant assumptions, or a Monte Carlo simulation, depending on the instrument. Stock price: Published trading market values of the Company’s common stock as of the grant date of the warrants or at the valuation date. Exercise price: The stated exercise price of the warrant. Expected term: Generally, the Company utilizes the contractual 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 was 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 that corresponds to the term of the security The conversion features on the Company’s convertible notes were accounted for as derivative financial instruments. The Company recorded all derivatives on the balance sheet at fair value as of the end of each reporting period. Changes in the value of the conversion features are reflected in mark-to-market warrant and debt (income) expense on the consolidated statements of operations. The Company obtained 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 during the periods presented was determined using a Monte Carlo simulation or the Black-Scholes option pricing model. For the warrants valued using the Black-Scholes option pricing model, the following assumptions were used: Three Months Ended March 31, 2017 March 31, 2016 Stock price $3.70 to $4.59 $8.10 to $11.25 Exercise price $3.60 to $4.95 $7.40 to $7.88 Expected term 5.0 years 2.5 years Expected dividend 0% 0% Volatility 73% to 74% 65% to 75% Risk-free interest rate 1.87% to 2.11% 0.81% to 1.31%

Stock-Based Compensation and Be

Stock-Based Compensation and Benefit Plans	3 Months Ended
	Mar. 31, 2017
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 and 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 adopted the 2014 Stock Incentive Plan (the “2014 SIP”) and on June 2, 2016, the Board of Directors adopted the 2016 Stock Incentive Plan (the “2016 SIP”). Pursuant to 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 4,445 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, 17,778 shares of common stock in any fiscal year. The term of each stock option shall be determined by the Board or committee of the Board, 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 2016 SIP 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 March 31, 2017: Maximum Outstanding Exercisable 2010 EIP 30,000 4,965 4,965 2014 SIP 67,628 37,142 29,161 2016 SIP 400,000 31,034 12,277 Issued outside of plans — 144,309 120,729 Shares issuable pursuant to options granted 217,450 167,132 The following is a summary of stock option activity for the three months ended March 31, 2017: Weighted Number of Remaining Intrinsic Shares Issuable Weighted Avg. Contractual Value Under Options Exercise Price Life (Years) (in thousands) Balance, December 31, 2016 225,231 $ 21.99 3.52 $ 29 Granted — — Exercised — — Forfeited or expired (7,781 ) 12.04 Balance, March 31, 2017 217,450 $ 22.35 3.19 — Exercisable at March 31, 2017 167,132 $ 25.48 2.96 — Information with respect to stock options outstanding and exercisable was of March 31, 2017 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 (in thousands) Number Exercisable Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) $6.15 to $9.22 34,703 3.94 $ 8.33 $ — 19,859 $ 8.48 $ — $9.22 to $13.95 49,318 3.84 10.48 — 26,639 10.24 — $15.75 to $30.38 49,780 3.21 19.13 — 36,985 19.31 — $33.74 to $90.00 83,649 2.47 37.09 — 83,649 37.09 — 217,450 3.19 $ 22.35 $ — 167,132 $ 25.48 $ — 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 and 2016 SIP. The Company issued 9,701 shares to associates pursuant to the Performance Bonus Plan during the three months ended March 31, 2017. 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: For periods prior to the Company’s public offering, volatility was 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 that corresponds to the term of the security. There were no stock options issued during the three months ended March 31, 2017. 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 is classified in each of the operating expense categories in our consolidated statements of operations as follows: Three Months Ended (In thousands) March 31, 2017 March 31, 2016 Cost of revenue $ 22 $ 21 Sales and marketing expenses 33 31 Research and development expenses 21 30 General and administrative expenses 33 47 Total stock-based compensation expense $ 109 $ 129 As of March 31, 2017, the total compensation cost related to unvested option awards not yet recognized was approximately $156,000, which will be recognized over a weighted-average period of approximately one year. 2014 Associate Stock Purchase Plan On September 8, 2014, the Company’s Board of Directors adopted the 2014 Associate Stock Purchase Plan and authorized the Company to issue up to 22,223 shares of its common stock under this plan. On December 29, 2016, the Company’s Board of Directors authorized an additional 100,000 shares of common stock under this plan. The 2014 Associate Stock Purchase Plan permits eligible associates (employees) to purchase shares of the Company’s common stock at the end of pre-established offering periods at a maximum 15% discount from the common stock’s fair market value on the date of purchase or the offering date, whichever is lower. Offering periods are every six months ending on June 30 and December 31. Eligible associates may designate up to 10% of their compensation for the purchase of shares under the plan. As of March 31, 2017, there are 99,564 shares available for purchase remaining in the plan.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
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 for the periods presented. No debt is held by executive officers of the Company. As of (In thousands, except warrants held) March 31, 2017 December 31, 2016 Notes Payable to Directors (1) $ 221 $ 3,078 Convertible Notes, due 2016 and 2017, interest between 0% and 8%, held by related parties — 906 Accrued interest to related parties 12 411 Warrants held by Directors 1,055,871 888,802 (1) Included within this line item as of December 31, 2016 are two convertible notes, issued December 22, 2016, for proceeds of $135,000, a principal amount of $135,000 and a fair value, as of December 31, 2017, of approximately $194,000. Three Months Ended (In thousands) March 31, 2017 March 31, 2016 Related party interest expense $ 55 $ 44 On January 24, 2017, the Company entered into an Amended and Restated Term Promissory Note with Mr. Davis, pursuant to which the Company and Mr. Davis agreed to consolidate the following debt due to Mr. Davis, totaling $896,243, including accrued but unpaid interest thereon, into a single note due April 30, 2018: (i) the note dated February 1, 2016, in the principal amount of $150,000, (ii) the note dated July 13, 2016, in the principal amount of $432,000 (including a 20% repayment premium as outlined in the agreement), (iii) the note dated August 12, 2016, in the principal amount of $263,158 and (iv) the note dated December 22, 2016, in the principal amount of $50,000. The consolidated note was unsecured and bore interest at a rate of 7% per annum, with all principal and accrued interest due and payable at the close of business on April 30, 2018. On March 15, 2017, in connection with the Offering, Mr. Davis converted the total indebtedness of $896,243 into 248,957 shares of the Company’s common stock. On January 24, 2017, the Company entered into an Amended and Restated Term Promissory Note with Mr. Hanson, pursuant to which the Company and Mr. Hanson agreed to consolidate the following debt due to Mr. Hanson, totaling $1,973,735, including accrued but unpaid interest thereon, into a single note, due April 30, 2018: (i) the note dated July 30, 2014, in the principal amount of $598,000, (ii) the note dated December 22, 2015, in the principal amount of $150,000, (iii) the note dated February 11, 2016, in the principal amount of $75,000, (iv) the note dated July 14, 2016, in the principal amount of $288,888 (including a 20% repayment premium, as outlined in the agreement) and (v) that note dated December 22, 2016, in the principal amount of $85,000. In addition, the consolidated note amends the Line of Credit dated May 7, 2014 by reducing the principal debt thereunder by $617,957 and incorporating that amount into the principal amount of the consolidated note. The consolidated note was unsecured and bore interest at a rate of 8% per annum with all principal and accrued interest due and payable at the close of business on April 30, 2018. On March 15, 2017, in connection with the Offering, Mr. Hanson converted $1,903,757 into 528,822 shares of the Company’s common stock. On January 25, 2017, 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 $238,950, together with all accrued interest thereon, in six monthly installments of $40,983 each, which includes interest and equates to an imputed interest rate of 9.9% per annum. As an additional inducement to Mr. Davis to advance amounts under the note, on January 25, 2017, the Company also issued to Mr. Davis a warrant to purchase 28,704 shares of the Company’s common stock, subject to adjustments. The warrants issued to Mr. Davis have an exercise price per share equal to the lower of $8.33 and 80% of the per share price of the Company’s common stock in the Company’s next underwritten public offering, subject to adjustments, and are exercisable for a five-year period. On February 22, 2017, 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 consummation of the Offering, $678,947 of indebtedness outstanding under the Line of Credit into shares of the Company’s common stock at a conversion price-per-share equal to the public offering price-per-share in the Offering. As consideration for this conversion, the Company agreed to issue to Mr. Hanson, upon consummation of the Offering, five-year warrants to purchase 90,526 shares of the Company’s common stock, at an exercise price equal to the public offering price-per-share in the Offering. On March 15, 2017, in connection with the Offering, Mr. Hanson converted the total indebtedness outstanding under the Line of Credit into 150,878 shares of the Company’s common stock.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2017
Risks and Uncertainties [Abstract]
Concentrations	11. Concentrations The Company’s revenues consist of recurring revenue, professional services and implementation fees. For the three months ended March 31, 2017 and 2016, recurring revenues represented 56.2% and 71.9% of consolidated revenues, respectively, professional services represented 41.3% and 18.9% of consolidated revenues, respectively, and implementation fees represented 2.5% and 9.2% of consolidated revenues, respectively. As of March 31, 2017, the Company had net payables of $775,000 owed to technology partners for software licenses, representing 35.3% of its accounts payable balance. As of December 31, 2016, the Company had net payables of approximately $317,000 owed to a law firm for legal services rendered in connection with our previous failed offering, representing 14.4% of its accounts payable balance, and approximately $558,000 owed to a technology partner for software licenses, representing 25.3% of its accounts payable balance. For the three months ended March 31, 2017, three customers accounted for 23.8%, 22% and 10.7% of the Company’s consolidated revenues. For the three months ended March 31, 2016, one customer accounted for 12% of the Company’s total revenue. As of March 31, 2017, the Company had receivables due from two customers totaling $1.9 million and $705,000, representing 43.7% and 16.3%, respectively, of the Company’s total receivables. As of December 31, 2016, the Company had receivables due from one customer totaling $1.3 million, representing 42.8% of the Company’s total receivables. These receivables are due to the Company in various installments, pursuant to each agreement, through December 2019.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events As more fully described in Note 6 to the Condensed Consolidated Financial Statements in this report under the caption Series Subordinated Note, On April 21, 2017, the Company entered into a 36-month capital lease for hardware and software upgrades to its data centers at a cost of approximately $906,000. Future minimum lease payments related to this capital lease, including sales tax and financing costs, are estimated to be approximately $269,000 in 2017, $381,000 in each of 2018 and 2019 and $111,000 in 2020. On May 1, 2017, the Company entered into a 36-month installment note payable with a bank, replacing a previous note, for a principal amount of $250,000. The Company received the net amount between the two notes, or approximately $51,000, which will be used primarily for expenditures related to office expansion. The note bears interest at the prime rate plus 1%. The prime rate of interest was 4% as of March 31, 2017.

Nature of Operations and Summ19

Nature of Operations and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	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 Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2017 (the “March 2017 8-K”). Capital Structure Change On July 27, 2016, the Company effected a reverse split of its outstanding shares of common stock at a ratio of 1:15, and on March 9, 2017, the Company effected a reverse split of its outstanding shares of its common stock at a ratio of 1:1.5 (together, the “Reverse Stock Splits”). As a result of the Reverse Stock Splits, the Company’s historical financial statements have been revised to reflect share counts and per share data as if the Reverse Stock Splits had been in effect for all periods presented. On March 10, 2017, the Company’s common stock began trading on the Nasdaq Capital Market. On March 15, 2017, the Company closed an underwritten public offering of 2,333,334 shares of its common stock at a public offering price of $4.50 per share (the “Offering”). Proceeds received from the Offering were approximately $8.8 million after deducting $1.7 million of underwriting discounts, commissions and other offering costs. Simultaneously with the closing of the Offering, certain noteholders converted approximately $3.0 million of the aggregate principal balance of certain convertible notes into 844,446 shares of the Company’s common stock. Upon closing of the Offering, the Company issued 1,440,310 shares of restricted common stock to holders of the Company’s Series C Convertible Preferred Stock upon the automatic conversion of the Series C Convertible Preferred Stock triggered by the closing of the Offering. Additionally, the Company issued 150,878 shares of common stock upon the conversion of approximately $679,000 of indebtedness outstanding under a line of credit. On March 21, 2017, the Company issued 2,799,718 shares of restricted common stock upon the Company’s exercise of its option, triggered by the listing on the Nasdaq Capital Market, to cause the mandatory conversion of approximately $10.1 million of the aggregate principal balance of certain convertible notes. See Note 4 and Note 8 to the Condensed Consolidated Financial Statements in this report. As a result of these events, on March 31, 2017, the Company’s independent registered public accounting firm, Lurie, LLP, reissued its report in connection with the Company’s consolidated financial statements for the fiscal years ended December 31, 2016 and 2015, to eliminate the going concern uncertainty paragraph.
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 (In thousands, except share and per share data) March 31, 2017 March 31, 2016 Net loss $ (2,734 ) $ (4,557 ) Less: Cumulative unpaid preferred stock dividends (95 ) (372 ) Net loss attributable to common shareholders (2,829 ) (4,929 ) Weighted average common shares outstanding 3,397,782 1,637,099 Net loss per common share – basic and diluted $ (0.83 ) $ (3.01 ) 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 March 31, 2017 March 31, 2016 Convertible preferred stock — 638,328 Stock options 217,450 212,148 Warrants 3,597,242 1,273,246 3,814,692 2,123,722
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, the following three levels of inputs apply: 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 instruments that are carried at fair value are valued using level 3 inputs utilizing the Black-Scholes option pricing model or a Monte Carlo simulation, depending on the instrument. 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 months ended March 31, 2017.
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 allowance for doubtful accounts, percentage of completion used to recognize revenue from professional services, assumptions used to value stock options and warrants, conversion feature liabilities, conversion incentive and share purchase price adjustments.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, “ Improvements to Employee Share-Based Payment Accounting.
Accounting Pronouncements Not Yet Adopted	Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers. In January 2016, the FASB issued No. ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities, In February 2016, the FASB issued No. ASU 2016-02 “ Leases, In June 2016, the FASB issued ASU No. 2016-13, “ Measurement of Credit Losses on Financial Instruments, In August 2016, the FASB issued ASU No. 2016-15, “ Classification of Certain Cash Receipts and Cash Payments, In January 2017, the FASB issued ASU No. 2017-01, “ Clarifying the Definition of a Business, In January 2017, the FASB issued ASU No. 2017-04, “ Simplifying the Test for Goodwill,

Nature of Operations and Summ20

Nature of Operations and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
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 (In thousands, except share and per share data) March 31, 2017 March 31, 2016 Net loss $ (2,734 ) $ (4,557 ) Less: Cumulative unpaid preferred stock dividends (95 ) (372 ) Net loss attributable to common shareholders (2,829 ) (4,929 ) Weighted average common shares outstanding 3,397,782 1,637,099 Net loss per common share – basic and diluted $ (0.83 ) $ (3.01 )
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 March 31, 2017 March 31, 2016 Convertible preferred stock — 638,328 Stock options 217,450 212,148 Warrants 3,597,242 1,273,246 3,814,692 2,123,722

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consists of the following: As of (In thousands) March 31, 2017 December 31, 2016 Computer equipment $ 259 $ 255 Data center equipment 1,252 1,230 Purchased software 833 814 Furniture and fixtures 95 90 Leasehold improvements 81 78 Total property and equipment 2,520 2,467 Less: accumulated depreciation (1,874 ) (1,771 ) Net property and equipment $ 646 $ 696
Summary of Depreciation Expense	Depreciation expense for the periods presented was as follows: Three Months Ended (In thousands) March 31, 2017 March 31, 2016 Depreciation expense $ 103 $ 79

Financing Arrangements (Tables)

Financing Arrangements (Tables)	3 Months Ended
	Mar. 31, 2017
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 (In thousands) March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 Note Payable – Bank, due January 2018, interest at 2.85% $ 725 $ — $ — $ — Notes Payable to Directors 221 3,078 12 411 Convertible Notes, due 2016 and 2017, interest between 0% and 8% (1) — 9,211 — 4 Series Subordinated Note, due January 2016, interest at 12% 415 415 250 228 Notes Payable, due October 2016, interest between 8.25% and 12% — 67 — 32 Note Payable, due August 2021, interest at 0% 192 192 — — Installment Note Payable – Bank 207 234 — — Total debt 1,760 13,197 262 675 Discount on notes payable — (8,519 ) Unamortized deferred financing costs (9 ) (133 ) Total debt, net 1,751 4,545 Less: short-term debt and current portion of long-term debt 1,463 4,229 Long-term debt, net of current portion $ 288 $ 316 (1) Includes notes payable to Messrs. Hanson and Davis totaling approximately $906,000 as of December 31, 2016.
Schedule of Future Maturities of Long-term Debt	Future maturities of long-term debt as of March 31, 2017 are as follows (in thousands): Nine months ending December 31, 2017 $ 658 2018 901 2019 9 2020 — 2021 192 Total debt $ 1,760

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
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 (In thousands) March 31, 2017 March 31, 2016 Rent expense $ 99 $ 102
Schedule of Future Minimum Lease Payments for Operating Leases	Future minimum lease payments pursuant to operating leases as of March 31, 2017 are as follows (in thousands): Nine months ending December 31, 2017 $ 211 2018 242 2019 241 2020 248 2021 255 Thereafter 21 $ 1,218
Schedule of Future Minimum Lease Payments for Capital Leases	Future minimum lease payments pursuant to capital leases as of March 31, 2017 are as follows (in thousands): Nine months ending December 31, 2017 $ 305 2018 154 2019 89 2020 5 Total payments 553 Less: portion representing interest (13 ) Principal portion 540 Less: unamortized deferred financing costs (34 ) Capital lease balance 506 Less: current maturities of capital lease obligations (311 ) Capital lease, net of current maturities $ 195

Goodwill and Finite Lived Int24

Goodwill and Finite Lived Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Amortization Expense for Identified Intangible Assets	Amortization expense for identified intangible assets is summarized below: Three Months Ended Statement of March 31, March 31, Operations (In thousands) 2017 2016 Classification Customer contracts $ 23 $ 41 Cost of Revenue Proprietary software 53 76 Cost of Revenue Total amortization on identified intangible assets $ 76 $ 117

Shareholders' Deficit (Tables)

Shareholders' Deficit (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Schedule of Common Stock Issuance	The Company’s common stock issuances for the three months ended March 31, 2017 were as follows: Shares of Common Stock Balance, December 31, 2016 2,103,392 Conversion of preferred stock and dividends to common stock 1,440,310 Conversion of convertible notes 3,795,042 March 2017 equity offering 2,333,334 Issuance of common stock under Associate Stock Purchase Plan 9,701 Issuance of common stock for professional services 75,669 Balance, March 31, 2017 9,757,448
Summary of Warrant Activity	The Company’s warrant activity for the three months ended March 31, 2017 consisted of the following: Number of Weighted Shares Issuable Weighted Avg. Remaining Under Warrants Exercise Price Life (Years) Balance, December 31, 2016 2,895,685 $ 11.60 4.23 Issued 706,642 3.95 Expired (5,085 ) 31.50 Exercised — — Balance, March 31, 2017 3,597,242 $ 8.13 4.16
Schedule of Warrant and Conversion Feature Liabilities	As of March 31, 2017 and December 31, 2016, the Company’s warrant and conversion feature liabilities consisted of the following (in thousands except share and per share data): Current Balance as of Shares Exercise March 31, December 31, Counterparty Issuable Price 2017 2016 Series A, B and C preferred shareholders 45,004 $ 3.60 $ 119 $ 1,164 Lincoln Park Capital Fund 66,667 3.60 179 234 Trooien Capital, LLC 333,333 3.60 908 968 Convertible noteholders — — — 7,369 June 2016 investors — — — 406 Lender of October 2016 notes payable — — — 10 Messrs. Hanson and Davis — — — 64 Sutter Securities Incorporated — — — 5 Craft Capital Management LLC — — — 2 Warrant and conversion feature liability, total $ 1,206 10,222 Less: current portion of warrant and conversion feature liability — (2,870 ) Warrant liability $ 1,206 7,352
Summary of Assumptions used to Determine Fair Value of Warrants	The fair value of the warrants issued during the periods presented was determined using a Monte Carlo simulation or the Black-Scholes option pricing model. For the warrants valued using the Black-Scholes option pricing model, the following assumptions were used: Three Months Ended March 31, 2017 March 31, 2016 Stock price $3.70 to $4.59 $8.10 to $11.25 Exercise price $3.60 to $4.95 $7.40 to $7.88 Expected term 5.0 years 2.5 years Expected dividend 0% 0% Volatility 73% to 74% 65% to 75% Risk-free interest rate 1.87% to 2.11% 0.81% to 1.31%

Stock-Based Compensation and 26

Stock-Based Compensation and Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017: Maximum Outstanding Exercisable 2010 EIP 30,000 4,965 4,965 2014 SIP 67,628 37,142 29,161 2016 SIP 400,000 31,034 12,277 Issued outside of plans — 144,309 120,729 Shares issuable pursuant to options granted 217,450 167,132
Summary of Stock Option Activity	The following is a summary of stock option activity for the three months ended March 31, 2017: Weighted Number of Remaining Intrinsic Shares Issuable Weighted Avg. Contractual Value Under Options Exercise Price Life (Years) (in thousands) Balance, December 31, 2016 225,231 $ 21.99 3.52 $ 29 Granted — — Exercised — — Forfeited or expired (7,781 ) 12.04 Balance, March 31, 2017 217,450 $ 22.35 3.19 — Exercisable at March 31, 2017 167,132 $ 25.48 2.96 —
Schedule of Stock Options Outstanding and Exercisable	Information with respect to stock options outstanding and exercisable was of March 31, 2017 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 (in thousands) Number Exercisable Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) $6.15 to $9.22 34,703 3.94 $ 8.33 $ — 19,859 $ 8.48 $ — $9.22 to $13.95 49,318 3.84 10.48 — 26,639 10.24 — $15.75 to $30.38 49,780 3.21 19.13 — 36,985 19.31 — $33.74 to $90.00 83,649 2.47 37.09 — 83,649 37.09 — 217,450 3.19 $ 22.35 $ — 167,132 $ 25.48 $ —
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 is classified in each of the operating expense categories in our consolidated statements of operations as follows: Three Months Ended (In thousands) March 31, 2017 March 31, 2016 Cost of revenue $ 22 $ 21 Sales and marketing expenses 33 31 Research and development expenses 21 30 General and administrative expenses 33 47 Total stock-based compensation expense $ 109 $ 129

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	As of (In thousands, except warrants held) March 31, 2017 December 31, 2016 Notes Payable to Directors (1) $ 221 $ 3,078 Convertible Notes, due 2016 and 2017, interest between 0% and 8%, held by related parties — 906 Accrued interest to related parties 12 411 Warrants held by Directors 1,055,871 888,802 (1) Included within this line item as of December 31, 2016 are two convertible notes, issued December 22, 2016, for proceeds of $135,000, a principal amount of $135,000 and a fair value, as of December 31, 2017, of approximately $194,000. Three Months Ended (In thousands) March 31, 2017 March 31, 2016 Related party interest expense $ 55 $ 44

Nature of Operations and Summ28

Nature of Operations and Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Mar. 21, 2017	Mar. 15, 2017	Mar. 10, 2017	Jul. 27, 2016	Jan. 31, 2017	Mar. 31, 2017	Mar. 31, 2016
Reverse stock split description				On July 27, 2016, the Company effected a reverse split of its outstanding shares of common stock at a ratio of 1:15, and on March 9, 2017, the Company effected a reverse split of its outstanding shares of its common stock at a ratio of 1:1.5 (together, the “Reverse Stock Splits”).
Number of common stock shares issued					2,334
Debt conversion of converted amount			$ 3,000			$ 13,798
Debt converted into shares of common stock			844,446
Number of common stock shares issued upon conversion			150,878
Common stock shares issued upon conversion value			$ 679
Series C Convertible Preferred Stock [Member]
Debt conversion of converted amount	$ 10,100
Number of restricted common stock shares issued	2,799,718		1,440,310
Underwritten Public Offering [Member]
Number of common stock shares issued		2,333,334
Public offering price per share		$ 4.50
Proceeds from offering amount received		$ 8,800
Underwriting discounts, commissions and other offering costs		$ 1,700

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
	Mar. 31, 2017	Mar. 31, 2016
Nature Of Operations And Summary Of Significant Accounting Policies - Schedule Of Net Loss Per Common Share Details
Net loss	$ (2,734)	$ (4,557)
Less: Cumulative unpaid preferred stock dividends	(95)	(372)
Net loss attributable to common shareholders	$ (2,829)	$ (4,929)
Weighted average common shares outstanding	3,397,782	1,637,099
Net loss per common share - basic and diluted	$ (0.83)	$ (3.01)

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	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive securities	3,814,692	2,123,722
Convertible Preferred Stock [Member]
Antidilutive securities		638,328
Stock Options [Member]
Antidilutive securities	217,450	212,148
Warrants [Member]
Antidilutive securities	3,597,242	1,273,246

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,520	$ 2,467
Less: accumulated depreciation	(1,874)	(1,771)
Net property and equipment	646	696
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	259	255
Data Center Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,252	1,230
Purchased Software [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	833	814
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	95	90
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 81	$ 78

Property and Equipment - Summar

Property and Equipment - Summary of Depreciation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Depreciation expenses	$ 103	$ 79

Financing Arrangements (Details

Financing Arrangements (Details Narrative) - USD ($)	Mar. 29, 2017	Mar. 15, 2017	Mar. 10, 2017	Dec. 23, 2016	Dec. 22, 2016	Jan. 31, 2017	Dec. 31, 2016	Jan. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Proceeds from note payable									$ 3,289,000	$ 375,000
Number of common stock shares issued						2,334
Debt conversion of converted amount			$ 3,000,000						13,798,000
Debt converted into shares of common stock			844,446
Debt principal amount					$ 135,000
FLMM Ltd [Member]
Debt bears interest rate				8.00%
Debt instrument maturity date				Mar. 15, 2017
Debt conversion of converted amount				$ 240,000
Debt converted into shares of common stock				66,667
Conversion price per share				$ 3.60
Percentage of conversion price equal to price of common stock				80.00%
Repayment of debt				$ 1,200,000
Cash				$ 1,440,000
Securities Purchase Agreement [Member] | FirstFire Global Opportunities Fund, LLC [Member]
Debt bears interest rate							5.00%
Debt instrument maturity date							Jun. 12, 2017
Convertible promissory note							$ 550,000
Debt principal periodic payment							550,000
Proceeds from issuance of debt							$ 500,000
Repayment of debt		$ 640,000
Underwritten Public Offering [Member]
Number of common stock shares issued		2,333,334
Public offering price per share		$ 4.50
Convertible Notes, Due 2017 [Member] | Between June 2016 and January 2017 [Member]
Debt conversion of converted amount									$ 10,100,000
Conversion price per share									$ 3.60
Percentage of conversion price equal to price of common stock									80.00%
Convertible Notes, Due 2017 [Member] | Between June 2016 and January 2017 [Member] | Underwritten Public Offering [Member]
Number of common stock shares issued		2,333,334
Public offering price per share		$ 4.50
Debt conversion of converted amount		$ 10,800,000							$ 679,000
Debt converted into shares of common stock		2,950,596
Conversion price per share									$ 4.50
Gruber Note [Member]
Debt bears interest rate					8.00%
Debt instrument maturity date					Mar. 22, 2017
Conversion price per share					$ 7
Repayment of debt					$ 76,000
Cash					$ 75,000
Debt maturity date description					Extended to May 31, 2017
Series Subordinated Note, Due January 2016 [Member]
Debt bears interest rate									12.00%
Debt maturity date description									January 2,016
Debt principal amount									$ 415,000
Series Subordinated Note, Due January 2016 [Member] | April 2017 [Member]
Payment for legal settlement amount									$ 665,000
Notes Payable Due October 2016 [Member]
Number of common stock shares issued									6,667
Repayment of debt									$ 11,000
Debt maturity date description									extended the maturity date of the remaining notes to August 2016 and then to October 2016.
Debt principal amount									$ 80,000
Notes Payable Due October 2016 [Member] | Minimum [Member]
Debt bears interest rate									8.25%
Notes Payable Due October 2016 [Member] | Maximum [Member]
Debt bears interest rate									12.00%
Notes Payable Due August 2021 [Member]
Debt bears interest rate									0.00%
Debt principal periodic payment									$ 192,000
Debt maturity date description									August 2,021
Debt principal amount									$ 192,000
Percentage of premium amount of principal balance									30.00%
Notes Payable Due August 2021 [Member] | Maximum [Member]
Debt bears interest rate									20.00%
Installment Note Payable [Member]
Proceeds from issuance of debt								$ 69,000
Debt maturity date description								January 2,019
Debt principal amount								$ 330,000
Installment Note Payable [Member] | Prime Rate [Member]
Debt bears interest rate							3.75%		4.00%
Installment Note Payable [Member] | Minimum [Member] | Prime Rate [Member]
Debt bears interest rate								1.00%
Installment Note Payable [Member] | Maximum [Member] | Prime Rate [Member]
Debt bears interest rate								5.00%
Venture Bank [Member]
Proceeds from note payable	$ 725,000
Debt bears interest rate	2.85%
Debt instrument maturity date	Jan. 2, 2018
Changes in interest rate of debt	8.85%
Deposits	$ 725,000
Invsetor [Member] | Convertible Notes, Due 2017 [Member] | Between June 2016 and January 2017 [Member]
Debt conversion of converted amount									$ 3,000,000
Debt converted into shares of common stock									844,446
Conversion price per share									$ 3.60
Percentage of conversion price equal to price of common stock									80.00%

Financing Arrangements - Summar

Financing Arrangements - Summary of Debt and Accrued Interest Outstanding (Details) - USD ($)		Mar. 31, 2017	Dec. 31, 2016
Total debt		$ 1,760,000	$ 13,197,000
Accrued Interest		262,000	675,000
Discount on notes payable			(8,519,000)
Unamortized deferred financing costs		(9,000)	(133,000)
Total debt, net		1,760,000	4,545,000
Less: short-term debt and current portion of long-term debt		1,463,000	4,229,000
Long-term debt, net of current portion		288,000	316,000
Note Payable – Bank, due January 2018, interest at 2.85% [Member]
Total debt		725,000
Accrued Interest
Notes Payable to Directors [Member]
Total debt		221,000	3,078,000
Accrued Interest		12,000	411,000
Convertible Notes, Due 2016 And 2017, Interest at 0% and 8% [Member]
Total debt	[1]		9,211,000
Accrued Interest	[1]		4,000
Series Subordinated Note, Due January 2016 Interest at 12% [Member]
Total debt		415,000	415,000
Accrued Interest		250,000	228,000
Notes Payable, Due October 2016, Interest Between 8.25% And 12% [Member]
Total debt			67,000
Accrued Interest			32,000
Note Payable, Due August 2021, Interest at 0% [Member]
Total debt		192,000	192,000
Accrued Interest
Installment Note Payable - Bank [Member]
Total debt		207,000	234,000
Accrued Interest
[1]	(1) Includes notes payable to Messrs. Hanson and Davis totaling approximately $906,000 as of December 31, 2016.

Financing Arrangements - Summ35

Financing Arrangements - Summary of Debt and Accrued Interest Outstanding (Details) (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Messrs Hanson and Davis [Member]
Notes payable			$ 906,000
Note Payable – Bank, due January 2018, interest at 2.85% [Member]
Debt due date	January 2,018	January 2,018
Debt interest rate	2.85%			2.85%
Convertible Notes, Due 2016 And 2017, Interest at 0% and 8% [Member]
Debt maturity date start	Dec. 31, 2016	Dec. 31, 2016
Debt maturity date end	Dec. 31, 2017	Dec. 31, 2017
Convertible Notes, Due 2016 And 2017, Interest at 0% and 8% [Member] | Minimum [Member]
Debt interest rate	0.00%			0.00%
Convertible Notes, Due 2016 And 2017, Interest at 0% and 8% [Member] | Maximum [Member]
Debt interest rate	8.00%			8.00%
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) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Nine months ending December 31, 2017	$ 658
2,018	901
2,019	9
2,020
2,021	192
Total debt	$ 1,760	$ 4,545

Commitments and Contingencies37

Commitments and Contingencies (Details Narrative) - USD ($)	1 Months Ended						3 Months Ended
	Feb. 28, 2017	Jan. 31, 2017	Aug. 31, 2016	Mar. 31, 2016	Feb. 29, 2016	Aug. 31, 2015	Mar. 31, 2017	Dec. 31, 2016	Dec. 22, 2016
Cost and accumulated amortization included in property and equipment							$ 516,000	$ 575,000
Accrued interest							262,000	675,000
Debt principal amount									$ 135,000
Number of common stock issued, shares		2,334
Number of common stock issued for agreement		$ 18,000
Financial Service Agreements [Member]
Number of common stock issued, shares		33,334	8,000		20,667
Issuance of warrants to purchase of common stock, shares		12,974
Non-refundable expense deposits		$ 12,500
Financial Service Agreements [Member] | Initial Six Month Term [Member]
Number of common stock issued, shares						17,778
Number of common stock issued for agreement						$ 30,000
Financial Service Agreements [Member] | Additional Six Months [Member]
Number of common stock issued for agreement						$ 30,000
Agreement with Public Relations, Investor Relations, Shareholder Communications and Other Consulting Services [Member]
Number of common stock issued, shares		16,667
Issuance of warrants to purchase of common stock, shares		6,487
Non-refundable expense deposits		$ 6,250
Agreement with General Investor Relations, Shareholder Communications and Other Consulting Services [Member]
Number of common stock issued, shares	16,667
Number of common stock issued for agreement	$ 96,000
Series Subordinated Note [Member]
Interest expense				$ 695,000
Liquidated damages				300,000
Series Subordinated Note [Member]
Outstanding debt				415,000
Accrued interest							250,000	176,000
Penalty per day				$ 500				$ 500
June 30, 2017 [Member]
Operating lease future minimum lease receivables							8,400
April 2017 [Member] | Series Subordinated Note [Member]
Payment for legal settlement amount							665,000
Debt principal amount							$ 415,000

Commitments and Contingencies -

Commitments and Contingencies - Summary of Rent Expense to Operating Lease (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 99	$ 102

Commitments and Contingencies39

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Details) $ in Thousands	Mar. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Nine months ending December 31, 2017	$ 211
2,018	242
2,019	241
2,020	248
2,021	255
Thereafter	21
Total future minimum contractual lease payments	$ 1,218

Commitments and Contingencies40

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Capital Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Nine months ending December 31, 2017	$ 305
2,018	154
2,019	89
2,020	5
Total payments	553
Less: portion representing interest	(13)
Principal portion	540
Less: unamortized deferred financing costs	(34)
Capital lease balance	506
Less: current maturities of capital lease obligations	(311)	$ (379)
Capital lease, net of current maturities	$ 195	$ 238

Goodwill and Finite Lived Int41

Goodwill and Finite Lived Intangible Assets (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 204		$ 204
Impairment

Goodwill and Finite Lived Int42

Goodwill and Finite Lived Intangible Assets - Schedule of Amortization Expense for Identified Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Total amortization on identified intangible assets	$ 76	$ 117
Customer Contracts [Member]
Total amortization on identified intangible assets	$ 23	$ 41
Statement of operations classification	Cost of Revenue	Cost of Revenue
Proprietary Software [Member]
Total amortization on identified intangible assets	$ 53	$ 76
Statement of operations classification	Cost of Revenue	Cost of Revenue

Shareholders' Deficit (Details

Shareholders' Deficit (Details Narrative) - $ / shares	Mar. 15, 2017	Jun. 30, 2015	Mar. 31, 2017	Dec. 31, 2016
Issuance of convertible preferred stock, shares			0	43,530
Convertible preferred stock price per share			$ 0.0001	$ 0.0001
Preferred stock shares outstanding			0	43,530
Note Conversions [Member]
Debt convertible price per share			$ 3.60
Note Conversions [Member] | Maximum [Member]
Debt convertible price per share			7.41
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		446,983
Warrants price per share		$ 7.41
Conversion of stock, shares converted	1,440,310
Debt convertible price per share			$ 3.60

Shareholders' Deficit - Schedul

Shareholders' Deficit - Schedule of Common Stock Issuance (Details) - shares	Mar. 10, 2017	Mar. 31, 2017
Conversion of convertible notes	844,446
Common Stock [Member]
Balance, shares		2,103,392
Conversion of preferred stock and dividends to common stock, shares		1,440,310
Conversion of convertible notes		3,795,042
March 2017 equity offering		2,333,334
Issuance of common stock under Associate Stock Purchase Plan		9,701
Issuance of common stock for professional services		75,669
Balance, shares		9,757,448

Shareholders' Deficit - Summary

Shareholders' Deficit - Summary of Warrant Activity (Details)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Weighted Avg-Exercise Price, Beginning Balance	$ 21.99
Weighted Avg Exercise Price, Issued
Weighted Avg Exercise Price, Exercised
Weighted Avg-Exercise Price, Ending Balance	$ 22.35
Warrants [Member]
Number of Shares Issuable Under Warrants, Balance beginning | shares	2,895,685
Number of Shares Issuable Under Warrants, Issued | shares	706,642
Number of Shares Issuable Under Warrants, Expired | shares	(5,085)
Number of Shares Issuable Under Warrants, Exercised | shares
Number of Shares Issuable Under Warrants, Balance ending | shares	3,597,242
Weighted Avg-Exercise Price, Beginning Balance	$ 11.60
Weighted Avg Exercise Price, Issued	3.95
Weighted Avg Exercise Price, Expired	31.50
Weighted Avg Exercise Price, Exercised
Weighted Avg-Exercise Price, Ending Balance	$ 8.13
Weighted Remaining Life (Years) Beginning Balance	4 years 2 months 23 days
Weighted Remaining Life (Years) Ending Balance	4 years 1 month 28 days

Shareholders' Deficit - Sched46

Shareholders' Deficit - Schedule of Warrant and Conversion Feature Liabilities (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Warrant and conversion feature liability, total	$ 1,206	$ 10,222
Less: current portion of warrant and conversion feature liability		(2,870)
Warrant liability	$ 1,206	7,352
Series A, B and Convertible Preferred Shareholders [Member]
Shares Issuable	45,004
Current Exercise Price	$ 3.60
Warrant and conversion feature liability, total	$ 119	1,164
Lincoln Park Capital Fund [Member]
Shares Issuable	66,667
Current Exercise Price	$ 3.60
Warrant and conversion feature liability, total	$ 179	234
Trooien Capital, LLC [Member]
Shares Issuable	333,333
Current Exercise Price	$ 3.60
Warrant and conversion feature liability, total	$ 908	968
Convertible Noteholders [Member]
Shares Issuable
Current Exercise Price
Warrant and conversion feature liability, total		7,369
June 2016 Investors [Member]
Shares Issuable
Current Exercise Price
Warrant and conversion feature liability, total		406
Lender of October 2016 Notes Payable [Member]
Shares Issuable
Current Exercise Price
Warrant and conversion feature liability, total		10
Messrs Hanson and Davis [Member]
Shares Issuable
Current Exercise Price
Warrant and conversion feature liability, total		64
Sutter Securities Incorporated [Member]
Shares Issuable
Current Exercise Price
Warrant and conversion feature liability, total		5
Craft Capital Management LLC [Member]
Shares Issuable
Current Exercise Price
Warrant and conversion feature liability, total		$ 2

Shareholders' Deficit - Summa47

Shareholders' Deficit - Summary of Assumptions used to Determine Fair Value of Warrants (Details) - Warrants [Member] - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Expected term	5 years	2 years 6 months
Expected dividend	0.00%	0.00%
Minimum [Member]
Stock price	$ 3.70	$ 8.10
Current Exercise price	$ 3.60	$ 7.40
Volatility	73.00%	65.00%
Risk-free interest rate	1.87%	0.81%
Maximum [Member]
Stock price	$ 4.59	$ 11.25
Current Exercise price	$ 4.95	$ 7.88
Volatility	74.00%	75.00%
Risk-free interest rate	2.11%	1.31%

Stock-Based Compensation and 48

Stock-Based Compensation and Benefit Plans (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 29, 2016	Sep. 08, 2014
Compensation cost related to unvested options awards not yet recognized	$ 156
Cost recognized over weighted average period	1 year
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
2016 Stock Incentive Plan [Member] | New Employees [Member]
Number of common stock shares issued for covering the plan	4,445
2014 Equity Incentive Plan [Member]
Number of common stock shares issued for covering the plan	17,778
Stock option term description	The term of each stock option shall be determined by the Board or committee of the Board, 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 2016 SIP 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.
2014 Equity Incentive Plan [Member] | Employees [Member] | Minimum [Member]
Stock option vest over period	2 years
2014 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	9,701
Performance Bonus Plan [Member]
Number of stock issued for plan during the period		9,701
2014 Associate Stock Purchase Plan [Member]
Percentage of Pre-estabilished offering discount from common stock's fair market value percentage	10.00%
Number of stock options outstanding shares granted	99,564
2014 Associate Stock Purchase Plan [Member] | Stockholders [Member]
Number of shares of common stock reserved for issuance			10,000	22,223
Percentage of Pre-estabilished offering discount from common stock's fair market value percentage	15.00%

Stock-Based Compensation and 49

Stock-Based Compensation and Benefit Plans - Summary of Shares Issuable Pursuant to Options Granted (Details)	3 Months Ended
	Mar. 31, 2017shares
2010 EIP [Member]
Options granted, Maximum	30,000
Options granted, Outstanding	4,965
Options granted, Exercisable	4,965
2014 SIP [Member]
Options granted, Maximum	67,628
Options granted, Outstanding	37,142
Options granted, Exercisable	29,161
2016 SIP [Member]
Options granted, Maximum	400,000
Options granted, Outstanding	31,034
Options granted, Exercisable	12,277
Issued Outside of Plans [Member]
Options granted, Maximum
Options granted, Outstanding	144,309
Options granted, Exercisable	120,729
Shares Issuable Pursuant to Options Granted [Member]
Options granted, Maximum
Options granted, Outstanding	217,450
Options granted, Exercisable	167,132

Stock-Based Compensation and 50

Stock-Based Compensation and Benefit Plans - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Options, Beginning Balance | shares	225,231
Number of Options, Granted | shares
Number of Options, Exercised | shares
Number of Options, Forfeited or Expired | shares	(7,781)
Number of Options, Ending Balance | shares	217,450
Number of Options, Exercisable | shares	167,132
Weighted Avg-Exercise Price, Beginning Balance | $ / shares	$ 21.99
Weighted Avg-Exercise Price, Granted | $ / shares
Weighted Avg-Exercise Price, Exercised | $ / shares
Weighted Avg-Exercise Price, Forfeited or Expired | $ / shares	12.04
Weighted Avg-Exercise Price, Ending Balance | $ / shares	22.35
Weighted Avg-Exercise Price, Exercisable | $ / shares	$ 25.48
Weighted Remaining Contractual Life (Years), Beginning Balance	3 years 6 months 7 days
Weighted Remaining Contractual Life (Years), Ending Balance	3 years 2 months 9 days
Weighted Remaining Contractual Life (Years), Exercisable, Balance	2 years 11 months 16 days
Intrinsic Value, Balance beginning | $	$ 29
Intrinsic Value, Balance ending | $
Intrinsic Value, Exercisable, Balance | $

Stock-based Compensation and 51

Stock-based Compensation and Benefit Plans - Schedule of Stock Options Outstanding and Exercisable (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding	217,450
Weighted Average Remaining Contractual Life	3 years 2 months 9 days
Weighted Average Price	$ 22.35
Aggregate Intrinsic Value		$ 29
Number Exercisable	167,132
Weighted Average Price, Exercisable	$ 25.48
Aggregate Intrinsic Value, Options Exercisable
Exercise Price Range One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock option, exercise price, Minimum	$ 6.15
Stock option, exercise price, Maximum	$ 9.22
Number Outstanding	34,703
Weighted Average Remaining Contractual Life	3 years 11 months 9 days
Weighted Average Price	$ 8.33
Aggregate Intrinsic Value
Number Exercisable	19,859
Weighted Average Price, Exercisable	$ 8.48
Aggregate Intrinsic Value, Options Exercisable
Exercise Price Range Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock option, exercise price, Minimum	$ 9.22
Stock option, exercise price, Maximum	$ 13.95
Number Outstanding	49,318
Weighted Average Remaining Contractual Life	3 years 10 months 2 days
Weighted Average Price	$ 10.48
Aggregate Intrinsic Value
Number Exercisable	26,639
Weighted Average Price, Exercisable	$ 10.24
Aggregate Intrinsic Value, Options Exercisable
Exercise Price Range Three [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock option, exercise price, Minimum	$ 15.75
Stock option, exercise price, Maximum	$ 30.38
Number Outstanding	49,780
Weighted Average Remaining Contractual Life	3 years 2 months 16 days
Weighted Average Price	$ 19.13
Aggregate Intrinsic Value
Number Exercisable	36,985
Weighted Average Price, Exercisable	$ 19.31
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	$ 33.74
Stock option, exercise price, Maximum	$ 90
Number Outstanding	83,649
Weighted Average Remaining Contractual Life	2 years 5 months 19 days
Weighted Average Price	$ 37.09
Aggregate Intrinsic Value
Number Exercisable	83,649
Weighted Average Price, Exercisable	$ 37.09
Aggregate Intrinsic Value, Options Exercisable

Stock-Based Compensation and 52

Stock-Based Compensation and Benefit Plans - Summary of Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 109	$ 129
Cost of Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	22	21
Sales and Marketing Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	33	31
Research and Development Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	21	30
General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 33	$ 47

Related Party Transaction (Deta

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

Mar. 15, 2017

Mar. 10, 2017

Feb. 22, 2017

Jan. 25, 2017

Jan. 24, 2017

Mar. 31, 2017

Mar. 31, 2016

Dec. 22, 2016

Aug. 12, 2016

Jul. 14, 2016

Jul. 13, 2016

Feb. 11, 2016

Jan. 02, 2016

Dec. 22, 2015

Jul. 30, 2014

May 07, 2014

Debt conversion of converted amount

$ 3,000,000

$ 13,798,000

Debt converted into shares of common stock

844,446

Mr. Davis [Member] | Unsecured Promissory Note [Member]

Unsecured and bears interest rate

9.90%

Debt instrument monthly installment

$ 40,983

Warrants to purchase of common stock, shares

28,704

Warrants exercise price per share

$ 8.33

Percentage of warrants exercise price per share

80.00%

Warrants expiration term

5 years

Mr. Hanson [Member]

Debt conversion of converted amount

$ 150,878

Line of credit

$ 678,947

Warrants to purchase of common stock, shares

90,526

Warrants expiration term

5 years

Amended and Restated Term Promissory Note [Member] | Mr. Davis [Member]

Notes payable to related parties

$ 896,243

$ 50,000

$ 263,158

$ 432,000

$ 150,000

Debt instruments maturity date

Apr. 30, 2018

Repayment premium percentage

20.00%

Unsecured and bears interest rate

7.00%

Debt conversion of converted amount

$ 896,243

Debt converted into shares of common stock

248,957

Amended and Restated Term Promissory Note [Member] | Mr. Hanson [Member]

Notes payable to related parties

$ 1,973,735

$ 85,000

$ 288,888

$ 75,000

$ 150,000

$ 598,000

Debt instruments maturity date

Apr. 30, 2018

Repayment premium percentage

20.00%

Unsecured and bears interest rate

8.00%

Debt conversion of converted amount

$ 1,903,757

Debt converted into shares of common stock

528,822

Line of credit

$ 617,957

Related Party Transactions - Sc

Related Party Transactions - Schedule of Related Party Transactions (Details) - Board Of Directors [Member] - USD ($)		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Notes Payable to Directors	[1]	$ 221,000		$ 3,078,000
Convertible Notes, due 2016 and 2017, interest between 0% and 8%, held by related parties				906,000
Accrued interest to related parties		$ 12,000		$ 411,000
Warrants held by related parties		1,055,871		888,802
Related party interest expense		$ 55,000	$ 44,000
[1]	Included within this line item as of December 31, 2016 are two convertible notes, issued December 22, 2016, for proceeds of $135,000, a principal amount of $135,000 and a fair value, as of December 31, 2017, of approximately $194,000.

Related Party Transactions - 55

Related Party Transactions - Schedule of Related Party Transactions (Details) (Parenthetical) - USD ($)	Dec. 22, 2016	Mar. 31, 2017
Related Party Transactions [Abstract]
Proceeds from convertible debt	$ 135,000
Debt face value	$ 135,000
Convertible debt, fair value		$ 194,000

Concentrations (Details Narrati

Concentrations (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Concentration Risk [Line Items]
Agreement description	These receivables are due to the Company in various installments, pursuant to each agreement, through December 2019.
Recurring Revenue [Member]
Concentration Risk [Line Items]
Concentration risk percentage	56.20%	71.90%
Professional Services [Member]
Concentration Risk [Line Items]
Concentration risk percentage	41.30%	18.90%
Implementation Fees [Member]
Concentration Risk [Line Items]
Concentration risk percentage	2.50%	9.20%
Revenue [Member] | One Customer [Member]
Concentration Risk [Line Items]
Concentration risk percentage	23.80%	12.00%
Revenue [Member] | Two Customer [Member]
Concentration Risk [Line Items]
Concentration risk percentage	22.00%
Revenue [Member] | Three Customer [Member]
Concentration Risk [Line Items]
Concentration risk percentage	10.70%
Accounts Receivable [Member] | One Customer [Member]
Concentration Risk [Line Items]
Concentration risk percentage	43.70%	42.80%
Accounts receivable	$ 1,900,000	$ 1,300,000
Accounts Receivable [Member] | Two Customer [Member]
Concentration Risk [Line Items]
Concentration risk percentage	16.30%
Accounts receivable	$ 705,000
Technology Partner [Member]
Concentration Risk [Line Items]
Accounts payable	$ 775,000
Technology Partner [Member] | Accounts Payable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	35.30%
Law Firm [Member]
Concentration Risk [Line Items]
Accounts payable	$ 317,000
Law Firm [Member] | Accounts Payable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	14.40%
Technology Partner 1 [Member]
Concentration Risk [Line Items]
Accounts payable	$ 558,000
Technology Partner 1 [Member] | Accounts Payable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	25.30%

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	May 02, 2017	Apr. 21, 2017	Apr. 30, 2017	Mar. 31, 2017	Dec. 22, 2016
Debt principal amount					$ 135,000
Capital lease future minimum payments				$ 553,000
Subsequent Event [Member]
Debt principal amount	$ 51,000
Capital lease term		36 months
Capital lease future minimum payments		$ 906,000
Number of monthly installment	36 months
Debt instruments periodic payment	$ 250,000
Subsequent Event [Member] | Prime Rate [Member] | Minimum [Member]
Debt interest rate				1.00%
Subsequent Event [Member] | Prime Rate [Member] | Maximum [Member]
Debt interest rate				4.00%
Subsequent Event [Member] | 2017 [Member]
Capital lease future minimum payments		269,000
Subsequent Event [Member] | 2018 [Member]
Capital lease future minimum payments		381,000
Subsequent Event [Member] | 2019 [Member]
Capital lease future minimum payments		381,000
Subsequent Event [Member] | 2020 [Member]
Capital lease future minimum payments		$ 111,000
Subsequent Event [Member] | Series Subordinated Notes [Member]
Payment for legal settlement amount			$ 665,000
Debt principal amount			$ 415,000