Touchpoint (TGHI) 10-Q/A 5 May 14 2013 Q1 Quarterly report (amended) Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2013	30-May-13
Document And Entity Information	'	'
Entity Registrant Name	'One Horizon Group, Inc.	'
Entity Central Index Key	'0000225211	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-13	'
Amendment Flag	'true	'
Amendment Description	'This amendment is being filed to comply with regulations.	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	31,714,839
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2013	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Assets	'	'
Cash	$460	$699
Accounts receivable, current portion	1,908	977
Other assets	130	136
Total current assets	2,498	1,812
Property and equipment, net	324	350
Intangible assets, net	12,073	12,329
Other asset	126	0
Total assets	15,021	14,491
Current liabilities:	'	'
Accounts payable	925	747
Accrued expenses	463	436
Accrued compensation	36	38
Income taxes	94	94
Amounts due to related parties	4,000	3,500
Current portion of long-term debt	59	59
Total current liabilities	5,577	4,874
Long-term liabilities	'	'
Long term debt	207	219
Deferred income taxes	445	445
Mandatorily redeemable preferred shares	90	90
Total liabilities	6,319	5,628
Stockholders' Equity (Deficiency)	'	'
Preferred stock: $0.0001 par value, authorized 50,000,000; no shares issued or outstanding	0	0
Common stock: $0.0001 par value, authorized 200,000,000,000 shares; issued and outstanding 31,563 shares (December 2012 30,845,844)	3	3
Additional paid-in capital	27,630	21,630
Stock subscriptions receivable	-6,500	-500
Accumulated deficit	-12,823	-12,725
Accumulated other comprehensive income	392	455
Total stockholders' equity	8,702	8,863
Total liabilities and stockholders' equity	$15,021	$14,491

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, Authorized	50,000,000	50,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value	$0.00	$0.00
Common stock, Authorized	200,000,000,000	200,000,000,000
Common stock, Issued	31,563	30,845,844
Common stock, outstanding	31,563	30,845,844

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013	Mar. 31, 2012
Income Statement [Abstract]	'	'
Revenue	$1,919	$917
Cost of revenue - Hardware	7	51
Amortization of software development costs	446	202
Gross margin	1,466	664
Expenses:	'	'
General and administrative	1,473	1,693
Depreciation	36	97
Total Expenses	1,509	1,790
Income (loss) from operations	-43	-1,126
Other income and expense:	'	'
Interest expense	-5	-11
Interest expense - related parties	-50	-50
Other income and expense	-55	-61
Income (loss) before income taxes	-98	-1,187
Income taxes	0	0
Discontinued operations:	'	'
Net Income (loss) for the period	($98)	($1,187)
Earnings per share	'	'
Basic net income per share	$0	($0.05)
Diluted net income per share	$0	($0.05)
Weighted average number of shares outstanding	'	'
Basic (in thousands)	31,213	22,214
Diluted (in thousands)	31,213	22,214

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2013	Mar. 31, 2012
Consolidated Statements Of Comprehensive Income	'	'
Net (loss) income	($98)	($1,187)
Other comprehensive income:	'	'
Foreign currency translation adjustment gain (loss)	-63	0
Total comprehensive income (loss)	($161)	($1,187)

Consolidated_Statements_of_Sto

Consolidated Statements of Stockholders' Equity (USD $)	Common Stock	Additional Paid-In Capital	Retained Earnings (Deficit)	Subscriptions Receivable	Accumulated Other Comprehensive Income (Loss)	Total
In Thousands, except Share data
Beginning Balance, Amount at Dec. 31, 2012	$3	$21,630	($12,725)	($500)	$455	$8,863
Beginning Balance, Shares (in thousands) at Dec. 31, 2012	30,846	'	'	'	'	'
Net loss (Restated)	'	'	-98	'	'	-98
Foreign currency translation adjustment	'	'	'	'	-63	-63
Common stock issued for subscription receivable, Shares (in thousands)	807	'	'	'	'	'
Common stock issued for subscription receivable, Amount	0	6,000	'	-6,000	'	'
Ending Balance, Amount at Mar. 31, 2013	$3	$27,630	($12,823)	($6,500)	$392	$8,702
Ending Balance, Shares (in thousands) at Mar. 31, 2013	31,563	'	'	'	'	'

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2013	Mar. 31, 2012
Cash provided by (used in) operating activities:	'	'
Net income (loss) for the period	($98)	($1,187)
Adjustment to reconcile net income (loss) for the period to net cash provided by (used in) operating activities:	'	'
Depreciation of property and equipment	36	97
Amortization of software development costs	446	202
Changes in operating assets and liabilities net of effects of acquistions:	'	'
Accounts receivable	-931	-34
Other assets	6	-6
Accounts payable and accrued expenses	197	2,140
Income taxes	0	0
Net cash provided by (used in) operating activities	-344	1,212
Cash used in investing activities:	'	'
Acquisition of intangible assets	-245	-822
Acquisition of property and equipment	-12	0
Investments	-126	0
Net cash provided by (used in) investing activities	-383	-822
Cash flow from financing activities:	'	'
Increase (decrease) in long-term borrowing, net	-12	-400
Advances from related parties, net of repayment	500	0
Net checks issued in excess of funds	0	-361
Net cash provided by (used in) financing activities	488	-761
Decrease in cash during the period	-239	-371
Cash at beginning of the period	699	371
Cash at end of the period	460	0
Supplementary Information:	'	'
Interest paid	0	0
Income taxes paid	0	0
Non-cash transactions:	'	'
Common stock issued for subscription receivable	$6,000	$0

1_Description_of_Business_Orga

1. Description of Business, Organization and Principles of Consolidation	3 Months Ended
	Mar. 31, 2013
Accounting Policies [Abstract]	'
1. Description of Business, Organization and Principles of Consolidation	'
	Description of Business
	One Horizon Group, Inc., (the “Company” or “Horizon”) develops proprietary software primarily in the Voice over Internet Protocol (VoIP) and bandwidth optimization markets (“Horizon Globex”) and provides it under perpetual license arrangements (“Master License”) throughout the world. The Company sells related user licenses and software maintenance services as well.
	Organization
	On November 30, 2012, the predecessor company “ICE” acquired all of the stock of One Horizon Group plc (“OHG”), a company incorporated in the United Kingdom through the issuance of 29,755,794 shares of common stock of the Company. Upon completion of this transaction the former shareholders of OHG controlled approximately 96% of the outstanding stock of the Company and OHG was deemed the acquiring entity The share exchange has been accounted for as a reverse acquisition. The historical combined financial statements of OHG form the consolidated financial statements presented. For accounting purposes ICE was considered to have been acquired as of November 30, 2012.
	The consolidated financial statements reflect the deemed acquisition of ICE by OHG and the recognition of the 1,160,051 shares of common stock, with a fair value of $170,000, at November 30, 2012.
	On December 31, 2012, the Company sold the operations of Global Integrated Media Limited and Modizo for the return of 70,000 shares of common stock with a fair value of $420,000. These companies were subsidiaries and divisions of ICE.
	Interim Period Financial Statements
	The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the Securities and Exchange Commission’s instructions. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The results of operations reflect interim adjustments, all of which are of a normal recurring nature and, in the opinion of management, are necessary for a fair presentation of the results for such interim period. The results reported in these interim consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. Certain information and note disclosure normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the six months ended December 31, 2012, as filed with the Securities and Exchange Commission on May 13, 2013 and the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the   Securities and Exchange Commission on April 15, 2014.
	Principles of Consolidation and Combination
	The March 31, 2013 consolidated financial statements include the accounts of One Horizon Group, Inc. and its wholly owned subsidiaries OHG, Horizon Globex GmbH, Abbey Technology Gmb and One Horizon Hong Kong Limited.
	The comparative statement of operations, comprehensive income and cash flows for the three months ended March 31, 2013 and 2012 include the combined accounts of One Horizon Group plc, Horizon Globex GmbH and Abbey Technology GmbH. These combined financial statements present the carve-out combined financial position and results of operations of OHG without including the accounts of Satcom Global, a former wholly-owned subsidiary of OHG, which was disposed of in October 2012. All revenues, expenses, gains and losses, assets and liabilities related to the Satcom Global business have been eliminated from these combined financial statements.
	All significant intercompany balances and transactions have been eliminated.

2_Restatement_of_Financial_Sta

2. Restatement of Financial Statements	3 Months Ended
	Mar. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
2. Restatement of Financial Statements	'
	One Horizon Group, Inc. (the "Company") is amending its Quarterly Report on Form 10-Q/A2 for the quarter ended March 31, 2013 to restate its consolidated financial statements as of March 31, 2013 and December 31, 2012 and for the three month periods ending March 31, 2013 and 2012 to correct errors related to the recognition of revenue from sales of perpetual licenses to larger, top-tier ("Tier 1") and other ("Tier 2) telecom entities.  Contracts with Tier 1 entities typically require agreed-upon fixed payments over fixed future periods extending beyond one year.  Contracts with Tier 2 entities have long-term variable payment terms based on customer usage.  The Company historically recognized the present value of Tier 1 contracts at the time of delivery.  Revenue from Tier 2 contracts was historically recognized over the initial 5-year term on a straight-line basis.
	The Company's decision to restate the aforementioned financial statements was made as a result of management's identification of errors related to the recognition of revenue from sales of perpetual licenses to certain Tier 1 and Tier 2 telecom entities.  Management subsequently determined, and the Audit Committee of the Board of Directors adopted management's conclusion that, as a result  of applying the guidance in ASC 985-605-25-32, a portion of the revenue recognized at the time of the sale of perpetual licenses to certain Tier 1 entities should have been deferred and recognized in future periods as payments became due.  The conclusion was also reached that revenue from contracts with Tier 2 entities should have been recognized based on the timing of when payments became due (which is based on usage). The errors impacted accounts receivable and deferred revenue in the consolidated balance sheets as well as revenue in the consolidated statements of operations.  As a result, revenue and net income were misstated in the consolidated statements of operations for the three months ended March 31, 2013 and 2012. Accounts receivable and deferred revenue were misstated in the consolidated balance sheet as of March 31, 2013 and December 31, 2012. The effect of these errors on the consolidated results of operations for the three months ended March 31, 2013 was to reduce revenues by $1.09 million and net income by $994,000. Revenues for the three months ended March 31, 2012 were reduced by $1.37 million and net income was reduced by $1.36 million.
	The consolidated financial statements have been restated as follows.  The errors had no impact on the Company's consolidated net cash flows from operating, investing and financing activities.  The Company has also reclassified amortization of software development costs from the prior presentation as operating expenses to cost of revenue.
		Consolidated Balance Sheet
		(in thousands)
		As of March 31, 2013
		As previously
		Reported			Adjustments			As Restated
	Assets
	Accounts receivable, current portion	$	8,752			(6,844	)	$	1,908
	Total current assets		9,342			(6,844	)		2,498
	Accounts receivable, net of current portion		31,512			(31,512	)		-
	Total assets	$	53,377			(38,356	)	$	15,021
	Liabilities and Stockholders' Equity
	Current portion of deferred revenue	$	7,600			(7,600	)	$	-
	Income taxes		1,411			(1,317	)		94
	Total current liabilities		14,494			(8,917	)		5,577
	Deferred revenue		20,500			(20,500	)		-
	Total liabilities		35,736			(29,417	)		6,319
	Accumulated deficit		(3,884	)		(8,939	)		(12,823	)
	Total stockholders' equity		17,641			(8,939	)		8,702
	Total liabilities and stockholders' equity	$	53,377			(38,356	)	$	15,021
		Consolidated Balance Sheet
		(in thousands)
		As of December 31, 2012
		As previously
		Reported			Adjustments			As Restated
	Assets
	Accounts receivable, current portion	$	5,899			(4,922	)	$	977
	Total current assets		6,734			(4,922	)		1,812
	Accounts receivable, net of current portion		26,263			(26,263	)		-
	Total assets	$	45,676			(31,185	)	$	14,491
	Liabilities and Stockholders' Equity
	Current portion of deferred revenue	$	6,000			(6,000	)	$	-
	Income taxes		1,332			(1,238	)		94
	Total current liabilities		12,114			(7,240	)		4,874
	Deferred revenue		16,000			(16,000	)		-
	Total liabilities		28,868			(23,240	)		5,628
	Accumulated deficit		(4,780	)		(7,945	)		(12,725	)
	Total stockholders' equity		16,808			(7,945	)		8,863
	Total liabilities and stockholders' equity	$	45,676			(31,185	)	$	14,491
		Consolidated Statements of Operations
		(in thousands)
		Three Months Ended March 31, 2013
		As previously
		Reported			Adjustments			As Restated
	Revenue	$	3,013			(1,094	)	$	1,919
	Cost of revenue		7			446			453
	Gross margin		3,006			(1,540	)		1,466
	Expenses		1,955			(446	)		1,509
	Income (loss) from operations		1,051			(1,094	)		(43	)
	Other income and expense		(55	)		-			(55	)
	Income  (loss) from operations before income taxes		996			(1,094	)		(98	)
	Income taxes		100			(100	)		-
	Net income (loss) for the period	$	896			(994	)	$	(98	)
	Earning per share:
	Basic	$	0					$	(0.00	)
	Diluted	$	0					$	(0.00	)
		Consolidated Statements of Operations
		(in thousands)
		Three Months Ended March 31, 2012
		As previously
		Reported			Adjustments			As Restated
Revenue	$	2,292			(1,375	)	$	917
Cost of revenue		51			202			253
Gross margin		2,241			1,577			664
Expenses		1,992			(202	)		1,790
Income from operations		249			(1,375	)		(1,126	)
Other income and expense		(61	)		-			(61	)
Income (loss)from operations before income taxes		188			(1,375	)		(1,187	)
Income taxes		16			(16	)		-
Net income for the period	$	172			(1,359	)	$	(1,187	)
Earning per share:
Basic	$	-			(0.05	)	$	(0.05	)
Diluted	$	-			(0.05	)	$	(0.05	)
	Consolidated Statements of Comprehensive Income
	(in thousands)
	Three months ended March 31, 2013
	As previously
	Reported			Adjustments			As Restated
Net income (loss)	$	896		$	(994	)	$	-98
Comprehensive income (loss)		833			(994	)		-161
	Consolidated Statements of Comprehensive Income
	(in thousands)
	Three months ended  March 31, 2012
	As previously
	Reported			Adjustments			As Restated
Net income	$	172		$	(1,359	)	$	-1,187
Comprehensive income		172			(1,359	)		-1,187
	Consolidated Statements of Cash Flows
	(in thousands)
	Three months ended March 31, 2013
	As previously
	Reported			Adjustments			As Restated
Cash provided by (used in) operating activities:
Operating activities
Net income (loss)	$	896			(994	)		(98	)
Changes in operating assets and liabilities:
Accounts receivable		(8,102	)		7,171			(931	)
Deferred revenue		6,100			(6,100	)		-
Income taxes		79			(79	)		-
Net cash provided by (used in) operating activities	$	(344	)		-			(344	)
	Consolidated Statements of Cash Flows
	(in thousands)
	Three months ended March 31, 2012
	As previously
	Reported			Adjustments			As Restated
Cash provided by (used in) operating activities:
Operating activities
Net income	$	172			(1,359	)		(1,187	)
Changes in operating assets and liabilities:
Accounts receivable		(11,709	)		11,675			(34	)
Deferred revenue		10,300			(10,300	)		-
Income Taxes		16			(16	)		-
Net cash provided by (used in) operating activities	$	1,212			-			1,212

3_Summary_of_Significant_Accou

3. Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2013
Accounting Policies [Abstract]	'
3. Summary of Significant Accounting Policies	'
	Basis of Accounting and Presentation
	These consolidated and combined financial statements have been prepared in conformity with accounting principles generally accepted in the United States. The financial position, results of operations and cash flows of the Company as of and for the three months ended March 31, 2013 and 2012 have been derived from the Company’s historical accounting records and are presented as a combined group. The combined financial statements do not include revenues, expenses, assets and liabilities of the former Satcom Global business which was operated through separate corporate subsidiaries. Management of the Company considers the basis on which the expenses have been allocated to the combined group to be a reasonable reflection of the utilization of the services provided to or received from during the periods presented.
	The reporting currency of the Company is the United States dollar. Assets and liabilities of operations other than those denominated in U.S. dollars, primarily in Switzerland and the United Kingdom, are translated into United States dollars at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the average rate of exchange throughout the period. Gains or losses from these translations are reported as a separate component of other comprehensive income (loss) until all or a part of the investment in the subsidiaries is sold or liquidated. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations.
	Transaction gains and losses that arise from exchange-rate fluctuations on transactions denominated in a currency other than the functional currency are included in general and administrative expenses.
	Cash
	Cash and cash equivalents include bank demand deposit accounts and highly liquid short term investments with maturities of three months or less when purchased. Cash consists of checking accounts held at financial institutions in the United Kingdom, Switzerland and Singapore which, at times, balances may exceed insured limits. The Company has not experienced any losses related to these balances, and management believes the credit risk to be minimal.
	Accounts Receivable
	Accounts receivable result primarily from sale of software and licenses to customers and are recorded at their principal amounts. Receivables are considered past due once they exceed the terms of the sales transaction. When necessary, the Company provides an allowance for doubtful accounts that is based on a review of outstanding receivables, historical collection information, and current economic conditions. There was an allowance of $218,000 for doubtful accounts at both March 31, 2013 and December 31, 2012, respectively. Receivables are generally unsecured. Account balances are charged off against the allowance when the Company determines it is probable the receivable will not be recovered. The Company does not have off-balance sheet credit exposure related to its customers. As of March 31, 2013 and December 31, 2012, three customers accounted for 30% and 33%, respectively, of the accounts receivable balance. Long-term payment terms for Master Licenses are provided to customers on an interest free basis, typically over five years.
	Payments due from customers beyond one year are recorded as long term at their net present value, to the extent revenue has been recorded as described. Accounts receivable includes amounts that are due for which revenue has not been recognized. Such amounts are recorded as deferred income, classified as current or long term liabilities, based on the expectation of revenue to be recognized and collections to be received.
	Property and Equipment
	Property and equipment is primarily comprised of leasehold property improvements, motor vehicles and equipment that are recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives as follows: motor vehicles – 5 years, equipment – between 3 and 5 years, leasehold property improvements, over the lesser of the estimated remaining useful life of the asset or the remaining term of the lease.
	Repairs and maintenance are charged to expense as incurred. Expenditures that substantially increase the useful lives of existing assets are capitalized.
	Fair Value Measurements
	Fair value is defined as the exchange price that will be received for an asset or paid to transfer a liability (an exit price) in the principal. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which the first two are considered to be observable and the third unobservable:
	Level 1 – Quoted prices in active markets for identical assets or liabilities.
	Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	Level 3 – Unobservable inputs are supported by little or no market activity and are significant to the fair value of the assets or liabilities.
	Intangible Assets
	Intangible assets include software development costs and customer relationships.  Customer relationships are amortized on a straight-line basis over their estimated useful lives of five years. Amortization of capitalized software development costs is computed using the greater of (a) the ratio of the product’s current gross revenues to the total of current and expected gross revenues or (b) the straight-line method, computed by dividing the remaining unamortized cost by the estimated economic life of the product.  The Company periodically evaluates whether changes have occurred that would require revision of the remaining estimated useful life.
	The Company expenses software development costs as incurred until technological feasibility has been established, at which time those costs are capitalized until the product is available for general release to customers.  Judgment is required in determining when technological feasibility of a product is established.  The Company has determined that after technological feasibility for software products is reached, the Company continues to address all high-risk development issues through coding and testing prior to the release of the products to customers.  The amortization of these costs is included in cost of revenue over the estimated life of the products.
	During the three months ended March 31, 2013 and 2012, software development costs of $245,000, and $770,000, respectively, have been capitalized.
	Impairment of Long-Lived Assets
	The Company evaluates the recoverability of its property and equipment and other long-lived assets, including software development costs and customer relationships, whenever events or changes in circumstances indicate impairment may have occurred. An impairment loss is recognized when the net book value of such assets exceeds the estimated future undiscounted cash flows attributed to the assets or the business to which the assets relate. Impairment losses, if any, are measured as the amount by which the carrying value exceeds the fair value of the assets. During the three months ended March 31, 2013 and 2012, respectively, the Company identified no impairment losses related to the Company’s long-lived assets.
	Revenue Recognition
	The Company recognizes revenue when it is realized or realizable and earned.  The Company establishes persuasive evidence of a sales arrangement for each type of revenue transaction based on a signed contract with the customer and that delivery has occurred or services have been rendered, the price is fixed and determinable, and collectability is reasonably assured.
	●	Software licenses – revenue from sales of perpetual licenses to customers when payments for the licenses are fixed is recognized at the inception of the arrangement, unless the payment term exceeds one year and then only if the presumption that the license fee is not fixed or determinable can be overcome, presuming all other relevant revenue recognition criteria are met. If the presumption cannot be overcome, revenue is recognized as payments from the customer become due. Revenue from sales of perpetual licenses when payments for the licenses are payable over a period exceeding a year, and those payments are variable based on customer usage,  are recognized as payments from the customer become due.
	●	Revenues for user licenses purchased by customers is recognized when the user license is delivered.
	●	Revenues for maintenance services are recognized over the period of delivery of the services.
	The Company enters into arrangements under which a customer purchases a combination of software licenses, maintenance services and post-contract customer support (“PCS”). As a result, judgment is sometimes required to determine the appropriate accounting, including how the price should be allocated among the deliverable elements if there are multiple elements. PCS may include rights to upgrades, when and if available, support, updates and enhancements. When vendor specific objective evidence (“VSOE”) of fair value exists for all elements in a multiple element arrangement, revenue is allocated to each element based on the relative fair value of each of the elements. VSOE of fair value is established by the price charged when the same element is sold separately. Accordingly, the judgments involved in assessing the fair values of various elements of an agreement can impact the recognition of revenue in each period. Changes in the allocation of the sales price between deliverables might impact the timing of revenue recognition, but would not change the total revenue recognized on the contract. When elements such as software and services are contained in a single arrangement, or in related arrangements with the same customer, revenue is allocated to each element based on its relative fair value, provided that such element meets the criteria for treatment as a separate unit of accounting. In the absence of fair value for a delivered element, revenue is first allocated to the fair value of the undelivered elements and then allocated to the residual delivered elements. In the absence of fair value for an undelivered element, the arrangement is accounted for as a single unit of accounting, resulting in a delay of revenue recognition for the delivered elements until the undelivered elements are fulfilled. No sales arrangements to date include undelivered elements for which VSOE does not exist.
	For purposes of revenue recognition for perpetual licenses, the Company considers payment terms exceeding one year as a presumption that the fee in the transaction is not fixed or determinable.   This presumption however, may be overcome if persuasive evidence demonstrates that the Company has a business practice of extending payment terms and has been successful in collecting under the original terms, without providing any concessions.  In doing so, the Company considers if the arrangement is sufficiently similar to historical arrangements in terms of similar customers and products is assessing whether there is evidence of a history of successful collection.
	In order to determine the Company’s historical experience is based on sufficiently similar arrangements, the Company considers the various factor including the types of customers and products, product life cycle, elements included in the arrangement, length of payment terms and economics of license arrangement.
	If the presumption cannot be overcome due to a lack of such evidence, revenue is recognized as payments become due, assuming all other revenue recognition criteria has been met.  Through March 31, 2013, the Company had no sales contracts for which revenue had been recognized since inception of the arrangements.
	Leases
	Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease.
	Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight-line basis over the lease term.
	Advertising Expenses
	It is the Company’s policy to expense advertising costs as incurred.  No advertising costs were incurred during each of the three months ended March 31, 2013 and 2012.
	Research and Development Expenses
	Research and development expenses include all direct costs, primarily salaries for Company personnel and outside consultants, related to the development of new products, significant enhancements to existing products, and the portion of costs of development of software required to be expensed.  Research and development costs are charged to operations as incurred with the exception of those software development costs that may qualify for capitalization. The Company incurred no research and development costs in the three months ended March 31, 2013 and 2012, respectively.
	Income Taxes
	Deferred income tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, operating loss, and tax credit carryforwards, and are measured using the enacted income tax rates and laws that will be in effect when the differences are expected to be recovered or settled. Realization of certain deferred income tax assets is dependent upon generating sufficient taxable income in the appropriate jurisdiction. The Company records a valuation allowance to reduce deferred income tax assets to amounts that are more likely than not to be realized. The initial recording and any subsequent changes to valuation allowances are based on a number of factors (positive and negative evidence). The Company considers its actual historical results to have a stronger weight than other, more subjective, indicators when considering whether to establish or reduce a valuation allowance.
	The Company continually evaluates its uncertain income tax positions and may record a liability for any unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties are recorded as a component of interest expense and other expense, respectively.
	Because tax laws are complex and subject to different interpretations, significant judgment is required when making certain determinations with regard to the Company’s tax positions. As a result, the Company makes certain estimates and assumptions in: (1) calculating its income tax expense, deferred tax assets, and deferred tax liabilities; (2) determining any valuation allowance recorded against deferred tax assets; and (3) evaluating the amount of unrecognized tax benefits, as well as the interest and penalties related to such uncertain tax positions. The Company’s estimates and assumptions may differ significantly from tax benefits ultimately realized.
	Net Income per Share
	Basic earnings per share of common stock is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per share of common stock reflects the maximum potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and would then share in the net income of the company. Common shares issuable are considered outstanding as of the original approval date for purposes of earnings per share computations. (in thousands)
			31-Mar
			2013		2012
	Basic			31,213		22,214
	Incremental shares under stock compensation plans			2,217		1,531
	Incr					-
	Potentially  Diluted			33,430		23,745
	Accumulated Other Comprehensive Income (Loss)
	Other comprehensive income (loss), as defined, includes net income, foreign currency translation adjustment, and all changes in equity (net assets) during a period from non-owner sources. To date, the Company has not had any significant transactions that are required to be reported in other comprehensive income (loss), except for foreign currency translation adjustments.
	Use of Estimates
	The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the fiscal year. The Company makes estimates for, among other items, useful lives for depreciation and amortization, determination of future cash flows associated with impairment testing for long-lived assets, determination of the fair value of stock options and warrants, determining fair values of assets acquired and liabilities assumed in business combinations, valuation allowance for deferred tax assets, allowances for doubtful accounts, and potential income tax assessments and other contingencies. The Company bases its estimates on historical experience, current conditions, and other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates and assumptions.
	Financial Instruments
	The Company has the following financial instruments: cash, amounts due to related parties, and long-term debt.  The carrying value of cash and long-term debt approximates their fair value due to their liquidity or their short-term nature as valued consistent with the use of level 2 inputs. The fair value of amounts due to related parties is not determinable.
	Share-Based Compensation
	The Company accounts for stock-based awards at fair value on date of grant and recognition of compensation over the service period for awards expected to vest. The fair value of stock options is determined using the Black-Scholes valuation model, which is consistent with the Company’s valuation techniques previously utilized for options in footnote disclosures.

4_Property_and_Equipment_net

4. Property and Equipment, net	3 Months Ended
	Mar. 31, 2013
Property, Plant and Equipment [Abstract]	'
4. Property and Equipment, net	'
	Property and equipment consist of the following: (in thousands)
		31-Mar			31-Dec
		2013			2012
	Leasehold improvements	$	265		$	265
	Motor vehicle		120			120
	Equipment		187			177
			572			562
	Less accumulated depreciation		(248	)		( 212	)
	Property and equipment, net	$	324		$	350

5_Intangible_Assets

5. Intangible Assets	3 Months Ended
	Mar. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
5. Intangible Assets	'
	Intangible assets consist primarily of software development costs and customer and relationships. (in thousands)
		31-Mar			31-Dec
		2013			2012
	Horizon software	$	16,266		$	16,085
	Customer relationships		885			885
			17,151			16,970
	Less accumulated amortization		(5,078	)		( 4,641	)
	Intangible assets, net	$	12,073		$	12,329
	Amortization of intangible assets for each of the next five years is estimated to be $1,500,000 per year.

6_Longterm_Debt

6. Long-term Debt	3 Months Ended
	Mar. 31, 2013
Debt Disclosure [Abstract]	'
6. Long-term Debt	'
	Long – term liabilities consist of the following (in thousands)
		31-Mar			31-Dec
		2013			2012
	Vehicle loan	$	66		$	67
	Office term loan		200			211
			266			278
	Less current portion		(59	)		( 59	)
	Balance	$	207		$	219

7_RelatedParty_Transactions

7. Related-Party Transactions	3 Months Ended
	Mar. 31, 2013
Related Party Transactions [Abstract]	'
7. Related-Party Transactions	'
	Amounts due to related parties include the following: (in thousands)
			31-Mar		31-Dec
			2013		2012
	Loans due to stockholders		$	4,000	$	3,500
	Loans due to stockholders include:
		●	loans advanced during 2011 totaling $2,000,000 which are unsecured and have an interest rate of 10%. During the three months ended March 31, 2013 and 2012 interest of $50,000 and $50,000, respectively, has been accrued.
		●	loans advanced by two officers and directors during 2012 totaling $1,500,000 which are unsecured and have an interest rate of 0.21%. The loans are due on or before December 31, 2014, and can be repaid in cash or shares of ordinary shares of OHG at an exchange price of $1.50 per share.
		●	convertible loans advanced in January 2013 from two officers and directors in the amount of $250,000 each. These convertible loans bear an interest rate of 0.21% and are repayable on or before January 22 2014. The Company has the option to repay the loans at any time, without penalty, in cash or shares of common stock of the Company at a price of $0.0086 per share. If the Company elects to repay the convertible loans in full by the issuance of shares, the Company will issue 48,650 shares of common stock.
		●	The Company entered into a sales contract, in the normal course of business with a customer in which the Company holds an equity interest. The customer purchased perpetual software license with total commitment of $2.0 million, of which $100,000 has been recognized in each of the three months ended March 31, 2013 and 2012. The Company owns a cost based investment interest of 18% of the voting capital of the customer.
		●	During the three months ended March 31, 2012, a company owned by a director and officer of the Company provided services in the amount of $125,000.

8_Share_Capital

8. Share Capital	3 Months Ended
	Mar. 31, 2013
Equity [Abstract]	'
8. Share Capital	'
	Preferred Stock
	The Company’s authorized capital included 150,000,000 shares of preferred stock of $0.0001 par value.  The designation of rights including voting powers, preferences, and restrictions shall be determined by the Board of Directors before the issuance of any shares.
	On August 6, 2013 the shareholders approved the reduction of the authorized preferred stock to 50 million with the par value remaining unchanged at $0.0001 per preferred share.
	No shares of preferred stock are issued and outstanding as of March 31, 2013, and December 31, 2012.
	Mandatorily Redeemable Preferred Shares (Deferred Stock)
	The Company’s subsidiary OHG is authorized to issue 50,000 shares of deferred stock, par value of £1.These shares are non-voting, non-participating,  redeemable and have been presented as a long-term liability.
	Common Stock
	The Company is authorized to issue 200 million shares of common stock, par value of $0.0001.
	On August 6, 2013, the shareholders approved the reduction of the authorized common stock to 200 million, with the par value remaining unchanged at $0.0001 per common share, and the consolidation of the issued and outstanding common stock on the basis of one new share for each 600 shares, effective upon approval of the regulatory authorities.  The Company’s common stock was consolidated effective as of August 29, 2013
	The application of this stock consolidation has been shown retroactively in these condensed consolidated financial statements.
	During the three months ended March 31, 2013, the Company:
	●	issued 806,452 shares of common stock for subscription receivable of $6 million, of which $2.79 million was collected as of May 16, 2013. The outstanding balance is secured by a pledge of the shares, pro-rata to amount owing, and carries an interest rate of 3%.
	During the six months ended December 31, 2012, the Company:
	●	issued 195,573 shares of common stock for cash proceeds of $502,000
	●	issued 1,459,500 shares of common stock for subscription receivable of $500,000.
	●	issued 3,502,800 shares of common stock for services received from related parties with a fair value of $1,200,000
	●	issued 145,950 shares of common stock for services received with a fair value of $50,000
	●	accounted for the reverse acquisition of Intelligent Communication Enterprise Corporation and subsidiaries and issued 1,160,051 shares of common stock with a fair value of $341,000.
	●	returned to treasury for cancellation 70,000 shares of common stock with a fair value of $420,000 being proceeds received on the disposal of shares of Global Interactive Media Limited and the Modizo business.
	Stock Purchase Warrants
	At March 31, 2013, the Company had reserved 1,687,586 shares of its common stock for the following outstanding warrants:
	Number of Warrants		Exercise Price	Expiry
	1,167,600		$  nil	no expiry date
	116,760		0.86	no expiry date
	403,226		5.94	Jan-18
	There were 403,226 warrants issued and none exercised during the three months ended March 31, 2013.

9_StockBased_Compensation

9. Stock-Based Compensation	3 Months Ended
	Mar. 31, 2013
Equity [Abstract]	'
9. Stock-Based Compensation	'
	Although the Company does not have a formal stock option plan, it issues stock options to directors, employees, advisors, and consultants.
	A summary of the Company’s stock options as of March 31, 2013, is as follows:
			Number of				Weighted Average
			Options				Exercise Price
	Outstanding at June 30, 2012			360,221			$	0.77
	Options issued			291,900				0.53
	Outstanding at December 31, 2012 and March 31, 2013			652,121			$	0.66
	The following table summarizes stock options outstanding at March 31, 2013:
					Number				Average		Number		Intrinsic
					Outstanding				Remaining		Exercisable		Value
					at				Contractual		at		at
					March 31,				Life		March 31,		March 31,
	Exercise Price				2013				(Years)		2013		2013
	$	0.51				5,748				2.58		5,748	$	37,934
		0.53				291,900				7.25		291,900		1,926,540
		0.53				291,900				9.75		-		-
		1.82				29,722				2.08		29,722		196,168
		1.95				32,851				3.25		32,851		79,129
	At March 31, 2013, 652,121 shares of common stock were reserved for outstanding options.
	The fair value of each option granted is estimated at the date of grant using the Black-Scholes option-pricing model. The assumptions used in calculating the fair value of the options granted were: risk-free interest rate of 5.0%, a 3 year expected life, a dividend yield of 0.0%, and a stock price volatility factor of 40%
	There were no options issued or exercised during the three months ended March 31, 2013 and 2012, respectively.

10_Commitments_and_Contingenci

10. Commitments and Contingencies	3 Months Ended
	Mar. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
10. Commitments and Contingencies	'
	The Company has an agreement with an employee to pay for certain services to be provided during 2013 by the issuance of options to purchase 291,900 shares of common stock of the Company at December 31, 2013.
	Lease Commitments
	The Company incurred total rent expense of $40,000 and $49,000, for the three months ended March 31, 2013 and 2012, respectively. Future lease commitments are as follows:
	2013   $54,000
	2014   $72,000
	2015   $72,000
	2016   $72,000
	2017   $72,000

11_Subsequent_Events

11. Subsequent Events	3 Months Ended
	Mar. 31, 2013
Subsequent Events [Abstract]	'
11. Subsequent Events	'
	Subsequent to March 31, 2013 the Company
		●	in April, 2013, received $2.79 million of subscription receivable in respect of a $6.0 million investment in the Company’s securities pursuant to a subscription agreement signed in February 2013 and reported in the Form 10-K. The balance of the subscription funds are expected to be received in June and September 2013 under the terms of the agreement.
		●	paid the remaining $1.4 million for our 75% equity interest in Horizon Network Technology Co., Ltd, a Chinese joint venture with ZTE Corporation.
		●	in April, 2013, entered into an advisory agreement with a consulting firm to provide business and corporate development services to the Company.  Pursuant to  the agreement dated April 15, 2013, the Company issued 62,543 shares of common stock.
		●	in May, 2013, signed an amendment to its agreement with an investor relations firm, pursuant to which the Company issued the firm a warrant to purchase up to 62,545 shares of the Company’s Common Stock, subject to vesting, at an exercise price of $7.20 per share, with 15,636 shares vesting on each of May 1, 2013, October 15, 2013, January 15, 2014, and April 14, 2014. Exercise of the warrants is also subject to certain performance metrics set forth in the warrant.

3_Summary_of_Significant_Accou1

3. Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2013
Accounting Policies [Abstract]	'
Basis of Accounting and Presentation	'
	These consolidated and combined financial statements have been prepared in conformity with accounting principles generally accepted in the United States. The financial position, results of operations and cash flows of the Company as of and for the three months ended March 31, 2013 and 2012 have been derived from the Company’s historical accounting records and are presented as a combined group. The combined financial statements do not include revenues, expenses, assets and liabilities of the former Satcom Global business which was operated through separate corporate subsidiaries. Management of the Company considers the basis on which the expenses have been allocated to the combined group to be a reasonable reflection of the utilization of the services provided to or received from during the periods presented.
	The reporting currency of the Company is the United States dollar. Assets and liabilities of operations other than those denominated in U.S. dollars, primarily in Switzerland and the United Kingdom, are translated into United States dollars at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the average rate of exchange throughout the period. Gains or losses from these translations are reported as a separate component of other comprehensive income (loss) until all or a part of the investment in the subsidiaries is sold or liquidated. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations.
	Transaction gains and losses that arise from exchange-rate fluctuations on transactions denominated in a currency other than the functional currency are included in general and administrative expenses.
Cash	'
	Cash and cash equivalents include bank demand deposit accounts and highly liquid short term investments with maturities of three months or less when purchased. Cash consists of checking accounts held at financial institutions in the United Kingdom, Switzerland and Singapore which, at times, balances may exceed insured limits. The Company has not experienced any losses related to these balances, and management believes the credit risk to be minimal.
Accounts Receivable	'
	Accounts receivable result primarily from sale of software and licenses to customers and are recorded at their principal amounts. Receivables are considered past due once they exceed the terms of the sales transaction. When necessary, the Company provides an allowance for doubtful accounts that is based on a review of outstanding receivables, historical collection information, and current economic conditions. There was an allowance of $218,000 for doubtful accounts at both March 31, 2013 and December 31, 2012, respectively. Receivables are generally unsecured. Account balances are charged off against the allowance when the Company determines it is probable the receivable will not be recovered. The Company does not have off-balance sheet credit exposure related to its customers. As of March 31, 2013 and December 31, 2012, three customers accounted for 30% and 33%, respectively, of the accounts receivable balance. Long-term payment terms for Master Licenses are provided to customers on an interest free basis, typically over five years.
	Payments due from customers beyond one year are recorded as long term at their net present value, to the extent revenue has been recorded as described. Accounts receivable includes amounts that are due for which revenue has not been recognized. Such amounts are recorded as deferred income, classified as current or long term liabilities, based on the expectation of revenue to be recognized and collections to be received.
Property and Equipment	'
	Property and equipment is primarily comprised of leasehold property improvements, motor vehicles and equipment that are recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives as follows: motor vehicles – 5 years, equipment – between 3 and 5 years, leasehold property improvements, over the lesser of the estimated remaining useful life of the asset or the remaining term of the lease.
	Repairs and maintenance are charged to expense as incurred. Expenditures that substantially increase the useful lives of existing assets are capitalized.
Fair Value Measurements	'
	Fair value is defined as the exchange price that will be received for an asset or paid to transfer a liability (an exit price) in the principal. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which the first two are considered to be observable and the third unobservable:
	Level 1 – Quoted prices in active markets for identical assets or liabilities.
	Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	Level 3 – Unobservable inputs are supported by little or no market activity and are significant to the fair value of the assets or liabilities.
Intangible Assets	'
	Intangible assets include software development costs and customer relationships.  Customer relationships are amortized on a straight-line basis over their estimated useful lives of five years. Amortization of capitalized software development costs is computed using the greater of (a) the ratio of the product’s current gross revenues to the total of current and expected gross revenues or (b) the straight-line method, computed by dividing the remaining unamortized cost by the estimated economic life of the product.  The Company periodically evaluates whether changes have occurred that would require revision of the remaining estimated useful life.
	The Company expenses software development costs as incurred until technological feasibility has been established, at which time those costs are capitalized until the product is available for general release to customers.  Judgment is required in determining when technological feasibility of a product is established.  The Company has determined that after technological feasibility for software products is reached, the Company continues to address all high-risk development issues through coding and testing prior to the release of the products to customers.  The amortization of these costs is included in cost of revenue over the estimated life of the products.
	During the three months ended March 31, 2013 and 2012, software development costs of $245,000, and $770,000, respectively, have been capitalized.
Impairment of Long-Lived Assets	'
	The Company evaluates the recoverability of its property and equipment and other long-lived assets, including software development costs and customer relationships, whenever events or changes in circumstances indicate impairment may have occurred. An impairment loss is recognized when the net book value of such assets exceeds the estimated future undiscounted cash flows attributed to the assets or the business to which the assets relate. Impairment losses, if any, are measured as the amount by which the carrying value exceeds the fair value of the assets. During the three months ended March 31, 2013 and 2012, respectively, the Company identified no impairment losses related to the Company’s long-lived assets.
Revenue Recognition	'
	The Company recognizes revenue when it is realized or realizable and earned.  The Company establishes persuasive evidence of a sales arrangement for each type of revenue transaction based on a signed contract with the customer and that delivery has occurred or services have been rendered, the price is fixed and determinable, and collectability is reasonably assured.
	●	Software licenses – revenue from sales of perpetual licenses to customers when payments for the licenses are fixed is recognized at the inception of the arrangement, unless the payment term exceeds one year and then only if the presumption that the license fee is not fixed or determinable can be overcome, presuming all other relevant revenue recognition criteria are met. If the presumption cannot be overcome, revenue is recognized as payments from the customer become due. Revenue from sales of perpetual licenses when payments for the licenses are payable over a period exceeding a year, and those payments are variable based on customer usage,  are recognized as payments from the customer become due.
	●	Revenues for user licenses purchased by customers is recognized when the user license is delivered.
	●	Revenues for maintenance services are recognized over the period of delivery of the services.
	The Company enters into arrangements under which a customer purchases a combination of software licenses, maintenance services and post-contract customer support (“PCS”). As a result, judgment is sometimes required to determine the appropriate accounting, including how the price should be allocated among the deliverable elements if there are multiple elements. PCS may include rights to upgrades, when and if available, support, updates and enhancements. When vendor specific objective evidence (“VSOE”) of fair value exists for all elements in a multiple element arrangement, revenue is allocated to each element based on the relative fair value of each of the elements. VSOE of fair value is established by the price charged when the same element is sold separately. Accordingly, the judgments involved in assessing the fair values of various elements of an agreement can impact the recognition of revenue in each period. Changes in the allocation of the sales price between deliverables might impact the timing of revenue recognition, but would not change the total revenue recognized on the contract. When elements such as software and services are contained in a single arrangement, or in related arrangements with the same customer, revenue is allocated to each element based on its relative fair value, provided that such element meets the criteria for treatment as a separate unit of accounting. In the absence of fair value for a delivered element, revenue is first allocated to the fair value of the undelivered elements and then allocated to the residual delivered elements. In the absence of fair value for an undelivered element, the arrangement is accounted for as a single unit of accounting, resulting in a delay of revenue recognition for the delivered elements until the undelivered elements are fulfilled. No sales arrangements to date include undelivered elements for which VSOE does not exist.
	For purposes of revenue recognition for perpetual licenses, the Company considers payment terms exceeding one year as a presumption that the fee in the transaction is not fixed or determinable.   This presumption however, may be overcome if persuasive evidence demonstrates that the Company has a business practice of extending payment terms and has been successful in collecting under the original terms, without providing any concessions.  In doing so, the Company considers if the arrangement is sufficiently similar to historical arrangements in terms of similar customers and products is assessing whether there is evidence of a history of successful collection.
	In order to determine the Company’s historical experience is based on sufficiently similar arrangements, the Company considers the various factor including the types of customers and products, product life cycle, elements included in the arrangement, length of payment terms and economics of license arrangement.
	If the presumption cannot be overcome due to a lack of such evidence, revenue is recognized as payments become due, assuming all other revenue recognition criteria has been met.  Through March 31, 2013, the Company had no sales contracts for which revenue had been recognized since inception of the arrangements.
Leases	'
	Leases
	Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease.
	Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight-line basis over the lease term.
Advertising Expenses	'
	It is the Company’s policy to expense advertising costs as incurred.  No advertising costs were incurred during each of the three months ended March 31, 2013 and 2012.
Research and Development Expenses	'
	Research and development expenses include all direct costs, primarily salaries for Company personnel and outside consultants, related to the development of new products, significant enhancements to existing products, and the portion of costs of development of software required to be expensed.  Research and development costs are charged to operations as incurred with the exception of those software development costs that may qualify for capitalization. The Company incurred no research and development costs in the three months ended March 31, 2013 and 2012, respectively.
Income Taxes	'
	Deferred income tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, operating loss, and tax credit carryforwards, and are measured using the enacted income tax rates and laws that will be in effect when the differences are expected to be recovered or settled. Realization of certain deferred income tax assets is dependent upon generating sufficient taxable income in the appropriate jurisdiction. The Company records a valuation allowance to reduce deferred income tax assets to amounts that are more likely than not to be realized. The initial recording and any subsequent changes to valuation allowances are based on a number of factors (positive and negative evidence). The Company considers its actual historical results to have a stronger weight than other, more subjective, indicators when considering whether to establish or reduce a valuation allowance.
	The Company continually evaluates its uncertain income tax positions and may record a liability for any unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties are recorded as a component of interest expense and other expense, respectively.
	Because tax laws are complex and subject to different interpretations, significant judgment is required when making certain determinations with regard to the Company’s tax positions. As a result, the Company makes certain estimates and assumptions in: (1) calculating its income tax expense, deferred tax assets, and deferred tax liabilities; (2) determining any valuation allowance recorded against deferred tax assets; and (3) evaluating the amount of unrecognized tax benefits, as well as the interest and penalties related to such uncertain tax positions. The Company’s estimates and assumptions may differ significantly from tax benefits ultimately realized.
Net Income per Share	'
	Basic earnings per share of common stock is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per share of common stock reflects the maximum potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and would then share in the net income of the company. Common shares issuable are considered outstanding as of the original approval date for purposes of earnings per share computations. (in thousands)
			31-Mar
			2013		2012
	Basic			31,213		22,214
	Incremental shares under stock compensation plans			2,217		1,531
						-
	Potentially  Diluted			33,430		23,745
Accumulated Other Comprehensive Income (Loss)	'
	Other comprehensive income (loss), as defined, includes net income, foreign currency translation adjustment, and all changes in equity (net assets) during a period from non-owner sources. To date, the Company has not had any significant transactions that are required to be reported in other comprehensive income (loss), except for foreign currency translation adjustments.
Use of Estimates	'
	The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the fiscal year. The Company makes estimates for, among other items, useful lives for depreciation and amortization, determination of future cash flows associated with impairment testing for long-lived assets, determination of the fair value of stock options and warrants, determining fair values of assets acquired and liabilities assumed in business combinations, valuation allowance for deferred tax assets, allowances for doubtful accounts, and potential income tax assessments and other contingencies. The Company bases its estimates on historical experience, current conditions, and other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates and assumptions.
Financial Instruments	'
	The Company has the following financial instruments: cash, amounts due to related parties, and long-term debt.  The carrying value of cash and long-term debt approximates their fair value due to their liquidity or their short-term nature as valued consistent with the use of level 2 inputs. The fair value of amounts due to related parties is not determinable.
Share-Based Compensation	'
	The Company accounts for stock-based awards at fair value on date of grant and recognition of compensation over the service period for awards expected to vest. The fair value of stock options is determined using the Black-Scholes valuation model, which is consistent with the Company’s valuation techniques previously utilized for options in footnote disclosures.

2_Restatement_of_Financial_Sta1

2. Restatement of Financial Statements (Tables)	3 Months Ended
	Mar. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Summary of restatement of financial statements	'
		Consolidated Balance Sheet
		(in thousands)
		As of March 31, 2013
		As previously
		Reported			Adjustments			As Restated
	Assets
	Accounts receivable, current portion	$	8,752			(6,844	)	$	1,908
	Total current assets		9,342			(6,844	)		2,498
	Accounts receivable, net of current portion		31,512			(31,512	)		-
	Total assets	$	53,377			(38,356	)	$	15,021
	Liabilities and Stockholders' Equity
	Current portion of deferred revenue	$	7,600			(7,600	)	$	-
	Income taxes		1,411			(1,317	)		94
	Total current liabilities		14,494			(8,917	)		5,577
	Deferred revenue		20,500			(20,500	)		-
	Total liabilities		35,736			(29,417	)		6,319
	Accumulated deficit		(3,884	)		(8,939	)		(12,823	)
	Total stockholders' equity		17,641			(8,939	)		8,702
	Total liabilities and stockholders' equity	$	53,377			(38,356	)	$	15,021
		Consolidated Balance Sheet
		(in thousands)
		As of December 31, 2012
		As previously
		Reported			Adjustments			As Restated
	Assets
	Accounts receivable, current portion	$	5,899			(4,922	)	$	977
	Total current assets		6,734			(4,922	)		1,812
	Accounts receivable, net of current portion		26,263			(26,263	)		-
	Total assets	$	45,676			(31,185	)	$	14,491
	Liabilities and Stockholders' Equity
	Current portion of deferred revenue	$	6,000			(6,000	)	$	-
	Income taxes		1,332			(1,238	)		94
	Total current liabilities		12,114			(7,240	)		4,874
	Deferred revenue		16,000			(16,000	)		-
	Total liabilities		28,868			(23,240	)		5,628
	Accumulated deficit		(4,780	)		(7,945	)		(12,725	)
	Total stockholders' equity		16,808			(7,945	)		8,863
	Total liabilities and stockholders' equity	$	45,676			(31,185	)	$	14,491
		Consolidated Statements of Operations
		(in thousands)
		Three Months Ended March 31, 2013
		As previously
		Reported			Adjustments			As Restated
	Revenue	$	3,013			(1,094	)	$	1,919
	Cost of revenue		7			446			453
	Gross margin		3,006			(1,540	)		1,466
	Expenses		1,955			(446	)		1,509
	Income (loss) from operations		1,051			(1,094	)		(43	)
	Other income and expense		(55	)		-			(55	)
	Income  (loss) from operations before income taxes		996			(1,094	)		(98	)
	Income taxes		100			(100	)		-
	Net income (loss) for the period	$	896			(994	)	$	(98	)
	Earning per share:
	Basic	$	0					$	(0.00	)
	Diluted	$	0					$	(0.00	)
		Consolidated Statements of Operations
		(in thousands)
		Three Months Ended March 31, 2012
		As previously
		Reported			Adjustments			As Restated
	Revenue	$	2,292			(1,375	)	$	917
	Cost of revenue		51			202			253
	Gross margin		2,241			1,577			664
Expenses		1,992			(202	)		1,790
Income from operations		249			(1,375	)		(1,126	)
Other income and expense		(61	)		-			(61	)
Income (loss)from operations before income taxes		188			(1,375	)		(1,187	)
Income taxes		16			(16	)		-
Net income for the period	$	172			(1,359	)	$	(1,187	)
Earning per share:
Basic	$	-			(0.05	)	$	(0.05	)
Diluted	$	-			(0.05	)	$	(0.05	)
	Consolidated Statements of Comprehensive Income
	(in thousands)
	Three months ended March 31, 2013
	As previously
	Reported			Adjustments			As Restated
Net income (loss)	$	896		$	(994	)	$	-98
Comprehensive income (loss)		833			(994	)		-161
	Consolidated Statements of Comprehensive Income
	(in thousands)
	Three months ended  March 31, 2012
	As previously
	Reported			Adjustments			As Restated
Net income	$	172		$	(1,359	)	$	-1,187
Comprehensive income		172			(1,359	)		-1,187
Check the cash flow statement for 3/31/12.  It doesn’t add up or agree to the statement of cash flows.
	Consolidated Statements of Cash Flows
	(in thousands)
	Three months ended March 31, 2013
	As previously
	Reported			Adjustments			As Restated
Cash provided by (used in) operating activities:
Operating activities
Net income (loss)	$	896			(994	)		(98	)
Changes in operating assets and liabilities:
Accounts receivable		(8,102	)		7,171			(931	)
Deferred revenue		6,100			(6,100	)		-
Income taxes		79			(79	)		-
Net cash provided by (used in) operating activities	$	(344	)		-			(344	)
	Consolidated Statements of Cash Flows
	(in thousands)
	Three months ended March 31, 2012
	As previously
	Reported			Adjustments			As Restated
Cash provided by (used in) operating activities:
Operating activities
Net income	$	172			(1,359	)		(1,187	)
Changes in operating assets and liabilities:
Accounts receivable		(11,709	)		11,675			(34	)
Deferred revenue		10,300			(10,300	)		-
Income Taxes		16			(16	)		-
Net cash provided by (used in) operating activities	$	1,212			-			1,212

3_Summary_of_Significant_Accou2

3. Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2013
Summary Of Significant Accounting Policies Tables	'
Net Income per Share	'
		31-Mar
		2013		2012
	Basic		31,213		22,214
	Incremental shares under stock compensation plans		2,217		1,531
					-
	Potentially  Diluted		33,430		23,745

4_Property_and_Equipment_net_T

4. Property and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2013
Property, Plant and Equipment [Abstract]	'
Property and equipment	'
		31-Mar			31-Dec
		2013			2012
	Leasehold improvements	$	265		$	265
	Motor vehicle		120			120
	Equipment		187			177
			572			562
	Less accumulated depreciation		(248	)		( 212	)
	Property and equipment, net	$	324		$	350

5_Intangible_Assets_Tables

5. Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible Assets	'
		31-Mar			31-Dec
		2013			2012
	Horizon software	$	16,266		$	16,085
	Customer relationships		885			885
			17,151			16,970
	Less accumulated amortization		(5,078	)		( 4,641	)
	Intangible assets, net	$	12,073		$	12,329

6_Longterm_Debt_Tables

6. Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2013
Debt Disclosure [Abstract]	'
Long - term liabilities	'
		31-Mar			31-Dec
		2013			2012
	Vehicle loan	$	66		$	67
	Office term loan		200			211
			266			278
	Less current portion		(59	)		( 59	)
	Balance	$	207		$	219

7_RelatedParty_Transactions_Ta

7. Related-Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2013
Related Party Transactions [Abstract]	'
Related-Party Transactions	'
		31-Mar		31-Dec
		2013		2012
	Loans due to stockholders	$	4,000	$	3,500

8_Stockholders_Equity_Tables

8. Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2013
Equity [Abstract]	'
Stock Purchase Warrants	'
	Number of Warrants	Exercise Price	Expiry
	1,167,600	$  nil	no expiry date
	116,760	0.86	no expiry date
	403,226	5.94	Jan-18

9_StockBased_Compensation_Tabl

9. Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2013
Equity [Abstract]	'
Summary of the Company's stock options	'
			Number of				Weighted Average
			Options				Exercise Price
	Outstanding at June 30, 2012			360,221			$	0.77
	Options issued			291,900				0.53
	Outstanding at December 31, 2012 and March 31, 2013			652,121			$	0.66
Stock options outstanding	'
					Number				Average		Number		Intrinsic
					Outstanding				Remaining		Exercisable		Value
					at				Contractual		at		at
					March 31,				Life		March 31,		March 31,
	Exercise Price				2013				(Years)		2013		2013
	$	0.51				5,748				2.58		5,748	$	37,934
		0.53				291,900				7.25		291,900		1,926,540
		0.53				291,900				9.75		-		-
		1.82				29,722				2.08		29,722		196,168
		1.95				32,851				3.25		32,851		79,129

10_Commitments_and_Contingenci1

10. Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Lease Commitments	'
	2013   $54,000
	2014   $72,000
	2015   $72,000
	2016   $72,000
	2017   $72,000

3_Summary_of_Significant_Accou3

3. Summary of Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Summary Of Significant Accounting Policies Details	'	'
Basic	31,213	22,214
Incremental shares under stock compensation plans	2,217	1,531
Fully Diluted	33,430	23,745

4_Property_and_Equipment_net_D

4. Property and Equipment, net (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Property And Equipment Net Details	'	'
Leasehold improvements	$265	$265
Motor vehicle	120	120
Equipment	187	177
Property and equipment, gross	572	562
Less accumulated depreciation	-248	-212
Property and equipment, net	$324	$350

5_Intangible_Assets_Details

5. Intangible Assets (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Intangible Assets Details	'	'
Horizon software	$16,266	$16,085
Contractual relationships	885	885
Intangible assets, Gross	17,151	16,970
Less accumulated amortization	-5,078	-4,641
Intangible assets, net	$12,073	$12,329

6_Longterm_Debt_Details

6. Long-term Debt (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Long-Term Debt Details	'	'
Vehicle loan	$66	$67
Office term loan	200	211
Bank term loan	266	278
Less current portion	-59	-59
Balance	$207	$219

7_RelatedParty_Transactions_De

7. Related-Party Transactions (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Related-Party Transactions Details	'	'
Loans due to stockholders	$4,000	$3,500
Amounts due to related parties	$4,000	$3,500

8_Stockholders_Equity_Details

8. Stockholdersb Equity (Details)	Mar. 31, 2013
Warrants A	'
Number of warrants	1,167,600
Exercise Price	0
Expiry	'no expiry date
Warrants B	'
Number of warrants	116,760
Exercise Price	0.86
Expiry	'no expiry date
Warrants C	'
Number of warrants	403,226
Exercise Price	5.94
Expiry	'January 2018

9_StockBased_Compensation_Deta

9. Stock-Based Compensation (Details) (USD $)	6 Months Ended
	Dec. 31, 2012	Mar. 31, 2013
Number of Options	'	'
Number of Options Outstanding, Beginning	360,221	652,121
Number of Options Issued	291,900	'
Number of Options Outstanding, End	652,121	652,121
Weighted Average Exercise Price	'	'
Weighted Average Exercise Price Outstanding, Beginning	$0.77	$0.66
Weighted Average Exercise Price Issued	$0.53	'
Weighted Average Exercise Price Outstanding, Ending	$0.66	$0.66

10_Commitments_and_Contingenci2

10. Commitments and Contingencies (Details) (USD $)	Mar. 31, 2013
Commitments And Contingencies Details	'
2013	$54,000
2014	72,000
2015	72,000
2016	72,000
2017	$72,000