Touchpoint (TGHI) 10-K 11 Apr 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Apr. 03, 2017	Jun. 30, 2016
Document And Entity Information
Entity Registrant Name	One Horizon Group, Inc.
Entity Central Index Key	225,211
Document Type	10-K
Trading Symbol	OHGI
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 26,860
Entity Common Stock, Shares Outstanding		37,316,714
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash	$ 260	$ 1,772	[1]
Accounts receivable, net	1,208	1,760	[1]
Other assets	472	402	[1]
Total current assets	1,940	3,934	[1]
Property and equipment, net	42	96	[1]
Intangible assets, net	8,407	9,823	[1]
Investments	17	18	[1]
Total assets	10,406	13,871	[2]
Current liabilities:
Accounts payable	364	223	[1]
Accrued expenses	206	220	[1]
Accrued compensation	156	18	[1]
Income taxes payable	90	90	[1]
Convertible debenture, net	3,068		[1]
Current portion of long-term debt		5	[1]
Total current liabilities	3,884	556	[1]
Long-term liabilities
Long term debt, net of current portion			[1]
Amount due to related parties	2,343	2,354	[1]
Convertible debenture		2,636	[1]
Deferred income taxes	172	215	[1]
Mandatorily redeemable preferred shares	62	73	[1]
Total liabilities	6,461	5,834	[1]
One Horizon Group, Inc. stockholders' equity
Preferred stock: $0.0001 par value, authorized 50,000,000; issued and outstanding 170,940 shares	1	1	[1]
Common stock: $0.0001 par value, authorized 200,000,000 shares, issued and outstanding 35,147,283 (2016)and 33,281,069 (2015)	4	3	[1]
Additional paid-in capital	37,501	36,070	[1]
Retained Earnings (Deficit)	(33,590)	(28,001)	[1]
Accumulated other comprehensive income/(loss)	29	(36)	[1]
Total stockholders' equity	3,945	8,037	[1]
Total liabilities and stockholders' equity	$ 10,406	$ 13,871	[1]
[1]	As Restated, note 12
[2]	Prior to giving effect to the implementation of ASU 2015-03 (Note 2).

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock: par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock: authorized	50,000,000	50,000,000
Preferred stock: issued	170,940	170,940
Preferred stock: outstanding	170,940	170,940
Common stock: par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock: authorized	200,000,000	200,000,000
Common stock: issued	35,147,283	33,281,069
Common stock: outstanding	35,147,283	33,281,069

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	[1]
Income Statement [Abstract]
Revenue	$ 1,615	$ 1,532
Cost of revenue
Hardware, calls and network charges	98	116
Amortization of intangibles	2,010	2,111
Total cost of revenue	2,108	2,227
Gross deficit	(493)	(695)
Expenses:
General and administrative	3,267	3,326
Increase in Allowance for doubtful accounts	455	934
Depreciation	59	67
Research and development	605	579
Total expenses	4,386	4,906
Loss from operations	(4,879)	(5,601)
Other income and expense:
Interest expense	(712)	(722)
Interest expense - related parties		(2)
Gain on settlement of lease		36
Foreign currency exchange	9	(29)
Interest income		2
Total other income and expense	(703)	(715)
Loss from continuing operations before income taxes	(5,582)	(6,316)
Income taxes benefit	(43)	(20)
Net loss	(5,539)	(6,296)
Loss attributable to non-controlling interest		(50)
Net loss attributable to One Horizon Group, Inc.	(5,539)	(6,246)
Less: Preferred dividends	(50)	(100)
Net loss attributable to One Horizon Group, Inc. Common stockholders	$ (5,589)	$ (6,346)
Earnings per share
Basic and diluted net loss per share (in dollars per share)	$ (0.16)	$ (0.18)
Weighted average number of shares outstanding
Basic and diluted (in shares)	35,411	33,996
[1]	As Restated, note 12

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	[1]
Consolidated Statements Of Comprehensive Income Loss
Net loss	$ (5,539)	$ (6,296)
Other comprehensive (loss):
Foreign currency translation adjustment gain (loss)	65	(99)
Comprehensive loss	(5,474)	(6,395)
Comprehensive loss attributable to the non-controlling interest		(50)
Total comprehensive loss	$ (5,474)	$ (6,345)
[1]	As Restated, note 12

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands		Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Deferred Compensation [Member]	Retained Earnings (Deficit) [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Non-controlling Interest [Member]	Total
Balance at beginning at Dec. 31, 2014	[1]	$ 1	$ 3	$ 32,163	$ (214)	$ (21,655)	$ 63	$ 291	$ 10,652
Balance at beginning (in shares) at Dec. 31, 2014	[1]	171	33,282
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss						(6,246)		(50)	(6,296)	[1]
Foreign currency translations							(99)		(99)	[1]
Preferred dividends						(100)			(100)
Amortization of deferred compensation					214				214
Options issued for services				660					660
Issuance of common stock for cash				3,266					3,266
Issuance of common stock for cash (in shares)			1,866
Contribution of shares of subsidiary				241				(241)
Costs of financing				(391)					(391)
Amounts owing to related parties forgiven				131					131
Balance at ending at Dec. 31, 2015	[1]	$ 1	$ 3	36,070		(28,001)	(36)		8,037
Balance at ending (in shares) at Dec. 31, 2015	[1]	171	35,148
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss						(5,539)			(5,539)
Foreign currency translations							65		65
Preferred dividends						(50)			(50)
Options issued for services				703					703
Issuance of common stock for cash			$ 1	524					$ 525
Issuance of common stock for cash (in shares)			1,374						1,018,925
Common Stock issued for services				204					$ 204
Common Stock issued for services (in shares)			347						200,000
Balance at ending at Dec. 31, 2016		$ 1	$ 4	$ 37,501		$ (33,590)	$ 29		$ 3,945
Balance at ending (in shares) at Dec. 31, 2016		171	36,869
[1]	As Restated, note 12

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016		Dec. 31, 2015
Operating activities:
Net loss for the year	$ (5,539)		$ (6,246)	[1]
Adjustment to reconcile net loss for the year to net cash used in operating activities:
Depreciation of property and equipment	59		67	[1]
Amortization of intangible assets	2,010		2,111	[1]
Increase in allowance for doubtful accounts	455		934	[1]
Amortization of debt issue costs	132		132
Amortization of beneficial conversion feature	100		101
Amortization of debt discount	200		199
Amortization of deferred compensation			214
Amortization of shares issued for services	47
Gain on settlement of lease			(36)	[1]
Options issued for services received	703		660
Common shares issued for services received	70
Net loss attributable to non-controlling interest			(50)	[1]
Changes in operating assets and liabilities:
Accounts receivable	96		(50)
Other assets	18		174
Accounts payable and accrued expenses	389		(302)
Income taxpayable			(3)
Deferred income taxes	(43)		(20)
Net cash used in operating activities	(1,303)		(2,115)
Cash used in investing activities:
Acquisition of intangible assets	(467)		(1,063)
Acquisition of property and equipment	(8)		(9)
Net cash used in investing activities	(475)		(1,072)
Cash flow from financing activities:
Decrease in long-term borrowing, net	(5)		(144)
Cash proceeds from issuance of common stock	400		2,875
Preferred dividends paid	(50)		(100)
Repayments to related parties	(11)		(844)
Net cash provided by financing activities	334		1,787
Decrease in cash during the year	(1,444)		(1,400)
Foreign exchange effect on cash	(68)
Cash at beginning of the year	1,772	[1]	3,172
Cash at end of the year	260		1,772	[1]
Interest paid	209		216
Non-cash transactions:
Common stock issued for services provided	204
Common stock issued for settlement of accrued compensation	$ 125
[1]	As Restated, note 12

Description of Business, Organi

Description of Business, Organization and Principles of Consolidation	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business, Organization and Principles of Consolidation	Note 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 to telecommunication companies under perpetual license arrangements (“Master License”) throughout the world. In addition, the Company either sells related user licenses and software maintenance services to or enters into revenue sharing agreements with telecommunication companies. Horizon, through its Chinese company Suzhou Aishuo Network Information Co. Ltd., provides the Aishuo App to end user customers through App stores based in China. Our Aishuo customers purchase call credits for Public Service Telephone Network (PSTN) access using a variety of Chinese on-line payment services including Union Pay and Apple Pay. Principles of Consolidation and Combination The consolidated financial statements include the accounts of One Horizon Group, Inc. and its wholly owned subsidiaries One Horizon Group plc, Horizon Globex GmbH, Abbey Technology GmbH, One Horizon Group Pte., Limited, Horizon Globex Ireland Limited, Global Phone Credit Limited and One Horizon Hong Kong Limited, and its wholly-owned subsidiary, Horizon Network Technology Co. Ltd. (“HNT”). In addition, included in the consolidated financial statements as of and for the years ended December 31, 2016 and 2015, are the accounts of Suzhou Aishuo Network Information Co., Ltd. which is controlled by One Horizon Group, Inc. through various contractual arrangements (Note 3). During the year ended December 31, 2015, the minority parties which held ownership interests in HNT returned their shareholdings to HNT such that HNT is now fully owned by the Company. The amount of net loss attributable to the Company and the non-controlling interest, up to the time that the shareholdings were returned, are both presented in the Consolidated statement of operations. All significant intercompany balances and transactions have been eliminated in consolidation.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies Liquidity and Capital Resources As we continue to pursue our operations and our business plan, we expect to incur further losses in 2017 which when combined with our continued investment in our intellectual property, will generate negative cash flows. As of December 31, 2016, the Company did not have any available credit facilities. As a result, we are in the process of seeking new financing by way of sale of either convertible debt or equities. Whilst we have been successful in the past in obtaining the necessary capital to support our investment and operations there is no assurance that we will be able to obtain additional financing under acceptable terms and conditions, or at all. In the event, we are unable to obtain sufficient additional funding when needed in order to fund our ongoing research and development activities as well as our operations, we would not be able to continue as a going concern and maybe forced to severely curtail or cease operations and liquidate the Company. As a result, our auditors’ report for our 2016 Financial Statements, which are included as part of this report, contains a statement concerning our ability to continue as a “going concern”. Basis of Accounting and Presentation These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States Foreign Currency Translation 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, Ireland, the United Kingdom and China, 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 Other income and expense. 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, Ireland, Singapore, Hong Kong and China 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. The categories of sales and receivables and their terms of payment are as follows: a) Master License Agreement (“Agreement”) deposits b) Software consultancy and hardware fees c) Maintenance and operational fees and end user licenses fees Receivables are generally unsecured. Account balances are charged off against the allowance when the Company determines that certain receivable will probably not be recovered. The Company does not have off-balance sheet credit exposure related to its customers. As of December 31, 2016 and December 31, 2015, two customers accounted for 61% and 51%, respectively, of the accounts receivable balance. Property and Equipment Property and equipment is primarily comprised of equipment that is recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives of between 3 and 5 years. Repairs and maintenance are charged to expense as incurred. Expenditures that substantially increase the useful lives of existing assets are capitalized. Intangible Assets Intangible assets include software development costs and customer lists and are amortized on a straight-line basis over the estimated useful lives of five years for customer lists and ten years for software development. The Company periodically evaluates whether changes have occurred that would require revision of the remaining estimated useful life. The Company performs periodic reviews of its capitalized intangible assets to determine if the assets have continuing value to the Company. Based on these valuations, no impairment charges were recognized during either of the years December 31, 2016 or 2015. 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. Judgement is required in determining when technical 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 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 years ended December 31, 2016 and 2015 software development costs of $467,000 and $1,063,000 respectively, have been capitalized. Impairment of Other Long-Lived Assets The Company evaluates the recoverability of its property and equipment and other long-lived assets 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 years ended December 31, 2016 and 2015 the Company recorded 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, price is fixed and determinable, and collectability is reasonably assured. • Software and licenses – revenue from sales of perpetual licenses to telecom entities is recognized at date of invoices raised for installments due under the agreement, unless payment terms exceed one year, as described below, presuming all other relevant revenue recognition criteria are met. Revenue from sales of perpetual licenses to other entities is recognized over the agreed collection period. • Revenue for user licenses purchased by customers is recognized when the user license is delivered. • Revenue for maintenance services is recognized over the period of delivery of the services. • Effective October 1, 2014, the Company amended certain existing customer contracts with respect to the terms under which those customers would pay the Company for perpetual licenses, user licenses and maintenance services provided by the Company. Existing customer contracts required payments for maintenance services to be made based on contractually specified fixed amounts, which were billed regularly through September 2014. Through that date the Company recorded revenue for licenses and maintenance services when those licenses and services were billed. Revenue for user licenses was recorded as earned and revenue for maintenance services was recorded based on a fixed annual fee, billed quarterly. The Company has modified the payment terms under certain of those existing customer contracts by entering into Revenue Sharing agreements with those customers. Under the terms of these Revenue Sharing agreements, future payments will be due from the customer when that customer has generated revenue from its customers who subscribe to use the Horizon products and services. Hosted services are offered to customers on revenue share arrangements whereby the Company can provide fully terminated services and sells vouchers for minutes which can be resold by the customer. Sales for this service are recognized when the supply is made and the invoice raised. Effective October 1, 2014 revenue has been recorded by the Company when it invoices the customer for the revenue share due to the Company. Certain customers who entered into revenue sharing arrangements had outstanding balances due to the Company as of September 30, 2014, which balances were included in accounts receivable as at that date. Payments received after September 30, 2014, from those customers under revenue sharing agreements have been applied to the customer’s existing accounts receivable balances first. For those customers having balances due at September 30, 2014, revenue related to perpetual and user licenses and maintenance services are recorded only after existing accounts receivable balances are fully collected. • Revenues from Aishuo retail sales are recognized when the PSTN calls and texts are made. Where the Company has entered into a Revenue Share with the customer, then all future revenue from granting of user licenses and for maintenance services will be recognized when the Company has delivered user licenses and is entitled to invoice. We enter into arrangements in 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, we allocate revenue 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 and determinable. In order to determine the company’s historical experience is based on sufficiently similar arrangements, the Company considers the various factors including the types of customers and products, product life cycle, elements Included in the arrangement, length of payment terms and economics of license arrangement. During the year ended December 31, 2016 $1,175,000 or 73% of the Company’s revenue was concentrated in the hands of one major customer. During the year ended December 31, 2015, $1,205,000 or 79% of the Company’s revenue was concentrated in the hands of two customers. Advertising Expenses It is the Company’s policy to expense advertising costs as incurred. Advertising costs incurred during the years ended December 31, 2016 and 2015 were $39,000 and $30,000, respectively. 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 internal-use 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 expensed research and development costs in the years ended December 31, 2016 and 2015 of $605,000 and $579,000, respectively. Debt Issue Costs In accordance with the ASU No. 2015-03 the debt issue costs related to long-term debt are shown as a reduction of debt outstanding and amortized over the term of the related debt using the effective interest method. 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. 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. Historically the Company has not filed income tax returns and the related required informational filings in the US. Certain informational filings if not filed contain penalties. The Company is currently addressing this issue with advisors to determine the amount, if any, of potential payments due. Given the complexity of the issue the Company is unable to quantify a range of potential loss, if any. Accordingly no liability has been recorded in the accompanying consolidated balance sheets in respect of this matter Net Loss per Share Basic net loss per share is calculated by dividing the net loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. Diluted loss per share takes into consideration common shares outstanding (computed under basic loss per share) and potentially dilutive securities. For the years ended December 31, 2016 and 2015, outstanding stock options, warrants and convertible debt are antidilutive because of net losses, and as such, their effect has not been included in the calculation of diluted net loss per share. Common shares issuable are considered outstanding as of the original approval date for purposes of earnings per share comparisons. Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss), as defined, includes net income (loss), 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, 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 carrying value of our financial assets and liabilities such as cash, accounts receivable and accounts payable approximate their fair values based on level 1 inputs in the fair value hierarchy because of the short maturity of these instruments. Due to the conversion features and other terms, it is not practical to estimate the fair value of amounts due to related parties and long term debt. 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 option pricing model, which includes subjective judgements about the expected life of the awards, forfeiture rates and stock price volatility. Recently Issued Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09 – Revenue From Contracts with Customers The original effective date for ASU 2014-09 would have required the Company to adopt beginning in its first quarter 2017. In July 2015, the FASB voted to amend ASU 2014-09 by approving a one year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, the Company may adopt the standard in either its first quarter of 2017 or 2018. The new revenue standard may be applied retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on it consolidated financial statements.

Suzhou Aishuo Network Informati

Suzhou Aishuo Network Information Co. Ltd.	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Suzhou Aishuo Network Information Co. Ltd.	Note 3. Suzhou Aishuo Network Information Co. Ltd. The Company has control of a Chinese entity Suzhou Aishuo Network Information Co. Ltd. (“Aishuo”) through various contractual arrangements. As a result of this control, one hundred percent of the operations, assets, liabilities and cash flows of Aishuo have been consolidated in the accompanying consolidated financial statements. Summarized assets, liabilities and results of operations, prior to eliminations in consolidation, of Aishuo are as follows: (in thousands) December 31 December 31 2016 2015 Assets $ 5 $ 43 Intercompany receivables/(payables) (355 ) (123 ) Other liabilities (12 ) (60 ) Revenue 224 56 Net Loss (292 ) (286 )

Property and Equipment, net

Property and Equipment, net	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Note 4. Property and Equipment, net Property and equipment consist of the following: (in thousands) December 31 December 31 2016 2015 Equipment $ 285 $ 291 Less accumulated depreciation (243 ) (195 ) Property and equipment, net $ 42 $ 96

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 5. Intangible Assets Intangible assets consist primarily of software development costs and customer and reseller relationships which are amortized over the estimated useful life, generally on a straight-line basis with the exception of customer relationships, which are generally amortized over the greater of straight-line or the related asset’s pattern of economic benefit. (in thousands) December 31 December 31 2016 2015 Horizon software $ 18,634 $ 17,879 ZTEsoft Telecom software 438 469 Customer lists 885 885 19,957 19,233 Less accumulated amortization (11,550 ) (9,410 ) Intangible assets, net $ 8,407 $ 9,823 Amortization of intangible assets for each of the next four years is estimated to be approximately $2,100,000 per year

Convertible Debenture

Convertible Debenture	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Convertible Debenture	Note 6. Convertible Debenture In December 22, 2014 the Company closed a private placement of $3,500,000 under Regulation S whereby we issued to an investor a convertible debenture that is convertible into 1,555,556 shares of common stock, Class C warrant to purchase 388,889 shares of common stock, Class D warrant to purchase 388,889 shares of common stock and the potential for performance warrants. The unsecured convertible debenture is for a term of three years from date of issue and has an interest rate of 8% per annum, payable quarterly in arrears in either cash, shares of common stock or a combination of cash and shares of common stock. The Company has the right to repurchase the convertible debenture upon notice at any time after the first twelve months. The Class C and Class D warrants have a term of four years and are each entitled to purchase one-fourth of a share of common stock. In total the Company issued 388,889 Class C warrants and 388,889 Class D warrants. Performance Warrants associated with the convertible debenture were potentially issuable and exercisable based on the Company’s annual reported subscriber numbers, twenty-four (24) months after December 22, 2014, as reflected in our 2014 Form 10-K. In the first quarter of 2016 the Company announced it has achieved the required number subscriber downloads and therefore the additional performance warrants are not issuable by the Company. Proceeds received in 2014 from the convertible debentures were allocated between the convertible debenture and warrants based on their relative fair values. The resulting debt discount is amortized using the effective interest method over the life of the debentures. The relative fair value of Class C and Class D warrants resulted in a discount of $598,500 at the date of issuance. After allocating a portion of the proceeds to the warrants, the effective conversion price of the convertible debentures was determined to result in a beneficial conversion feature. The beneficial conversion feature has a relative fair value of $302,994 at the date of issuance and is being amortized over the life of the convertible debenture. The beneficial conversion feature discount is amortized using the effective interest method over the life of the debentures. The amortization of the debt discount is included in interest expense in the consolidated statements of operations. A total of 1,555,556 shares of common stock have been reserved for the potential conversion of the convertible debenture.

Related-Party Transactions

Related-Party Transactions	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related-Party Transactions	Note 7. Related-Party Transactions Amounts due to related parties include the following: (in thousands) December 31 December 31 2016 2015 Loans due to stockholders (current officers and directors) $ 2,343 $ 2,354 At December 31, 2016, $2,343,000 of related party debt was outstanding and will mature on April 1, 2018, which is unsecured and is interest free. In the quarter ended March 31, 2015 the Company entered into a sales contract in the normal course of business with a customer (Horizon Latin America) which the Company holds minority ownership interest. The customer purchased perpetual software license for $500,000. As at December 31, 2015 Horizon Latin America owed the Company $250,000 (2015: $400,000) The Company owns a cost based investment interest of 10% in the customer with limited voting rights or board representation.

Share Capital

Share Capital	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Share Capital	Note 8. Share Capital Preferred Stock The Company’s authorized capital includes 50,000,000 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. The holders of Series A Preferred Stock were entitled to receive cumulative dividends during a period of twenty-four (24) months from and after the Issuance Date (the “Dividend Period”). The Dividend Period ended on July 21, 2016. During the Dividend Period for each outstanding share of Series Preferred Stock, dividends were payable quarterly in cash, at the rate of 10% per annum on or before each ninety (90) day period following the Issuance Date (each a “Dividend Payment Date”), with the first Dividend Payment Date to occur promptly following the three month period following the Issuance Date, and continuing until the end of the Dividend Period. Following the expiration of the Dividend Period, the holders of Series A Preferred Stock shall not be entitled to any additional dividend payment or coupon rate. Shares of Series A Preferred Stock are convertible in whole or in part, at the option of the holders, into shares of common stock at $5.85 per share prior to the Maturity, and all outstanding shares of Series A Preferred Stock shall automatically convert to shares of common stock upon Maturity, provided however, at no time may holders convert shares of Series A Preferred Stock if the number of shares of common stock to be issued pursuant to such conversion would cause the number of shares of common stock beneficially owned by such holder and its affiliates to exceed 9.99% of the then issued and outstanding shares of common stock outstanding at such time, unless the holder provides us with a waiver notice in such form and with such content specified in the Series A Certificate of Designation. Shares of Series A Preferred Stock are redeemable, at the option of the holders commencing any time after 12 months from and after the closing at a price equal to the original purchase price plus all accrued but unpaid dividends. In the event that the Company completes a financing of $10 million or greater prior to Maturity, the Series A Preferred Stock will be redeemed at a price equal to the original purchase price plus all accrued but unpaid dividends. 170,940 shares of Series A preferred stock are issued and outstanding as of December 31, 2016. Mandatorily Redeemable Preferred Shares (Deferred Stock) The Company’s subsidiary OHG has in issue 50,000 shares of deferred stock, par value of £1 to third parties. 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. During the year ended December 31, 2016 the Company: • issued 200,000 shares of common stock for services to be provided with a fair value of $133,960 • issued 1,018,925 shares of common stock for cash proceeds of $400,000 • issued 45,000 shares of common stock for services received with a fair value of $33,750 • issued 457,366 shares of common stock in part settlement of accrued compensation in the amount of $160,535 On August 10, 2015, in connection with an Underwriting Agreement dated August 4, 2015 (the “Underwriting Agreement”) with Aegis Capital Corp. (“Aegis”), as representative of the several underwriters named therein (the “Underwriters”), the Company closed a firm commitment underwritten public offering of 1,714,286 shares of Common Stock, and warrants to purchase up to an aggregate of 857,143 shares of Common Stock at a combined offering price of $1.75 per share and accompanying warrants. Pursuant to the Underwriting Agreement, the Underwriters exercised an option to purchase 151,928 additional shares of Common Stock and 75,964 additional warrants. The net proceeds of the offering were approximately $2.89 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by us. The warrants offered have a per share exercise price of $2.50 (subject to adjustment in the event of certain stock dividends and distributions, stock splits, stock combinations, reclassifications or similar events affecting our Common Stock and also upon any distributions of assets, including cash, stock or other property to our stockholder), are exercisable immediately and will expire three years from the date of issuance. Subject to applicable laws, the warrants may be offered for sale, sold, transferred or assigned without the Company’s consent. Stock Purchase Warrants At December 31, 2016, the Company had reserved 3,898,941 shares of its common stock for the following outstanding warrants: Number of Warrants Weighted average Expiry Intrinsic value 3,898,941 2.73 To December 2019 - During the year ended December 31, 2016 160,000 warrants were forfeited, 764,195 warrants were issued and none exercised. If, at the time of exercise of warrants issued pursuant to the financing of August 2015, wherein a total of 933,107 warrants were issued, that the shares issued upon exercise are not able to be included in a registration statement then the holder may request that the warrants so exercised be done on a cashless basis.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Note 9. Stock-Based Compensation The shareholders approved a stock option plan on August 6, 2013, the 2013 Equity Incentive Plan (“2013 Plan”). The 2013 Plan is for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, cash bonuses and other stock-based awards to employees, directors and consultants of the Company. There are 3,000,000 shares of common stock available for granting awards under the 2013 Plan. Each year, commencing 2014, until 2016, the number of shares of common stock available for granting awards shall be increased by the lesser of 1,000,000 shares of common stock and 5% of the total number of shares of common stock outstanding. On each of January 1, 2014, 2015 and 2016 the number of shares available for granting awards under the 2013 Plan has been increased by 1,000,000 shares. There have been no options issued in the year ended December 31, 2016. A summary of the 2013 Plan for the years ended December 31, 2015 and 2016, is as follows: Number of Weighted Options Exercise Price Outstanding at January 1, 2015 500,000 $ 4.54 Options issued 564,000 1.09 Options forfeited (120,000 ) 4.54 Outstanding at December 31, 2015 944,000 $ 2.48 Options forfeited (96,500 ) 2.52 Outstanding at December 31, 2016 847,500 2.47 As at December 31, 2016 there was unrecognized compensation expense of approximately $167,000 to be recognized over the remaining vesting periods. At December 31, 2016, 4,936,000 shares of common stock were reserved for all outstanding options and future commitments under the 2013 Equity Incentive Plan. Prior to the 2013 Plan the Company issued stock options to employees “Other Stock Options”. A summary of the Company’s other stock options for the years ended December 31, 2015 and 2016, is as follows: Number of Weighted Options Exercise Price Outstanding at January 1, 2015 584,650 $ 0.53 Options issued 291,900 $ 0.53 Options forfeited (850 ) $ 0.51 Outstanding at December 31, 2015 875,700 $ 0.53 Options issued - - Options forfeited - - Outstanding at December 31, 2016 875,700 $ 0.53 As of December 31, 2016 there was unrecognized compensation expense of approximately $64,000, related to Other Stock Options, to be recognized over the remaining vesting period. The following table summarizes all stock options outstanding at December 31, 2016: Number Average Number Intrinsic Outstanding Remaining Exercisable Value at Contractual at at December 31, Life December 31, December 31, Exercise Price 2016 (Years) 2016 2016 $ 0.53 291,900 3.50 291,900 - 0.53 291,900 5.50 291,900 - 0.53 291,900 8.75 291,900 - 4.54 340,000 7.00 - - 1.09 507,500 8.50 - - Total 1,723,200 875,700 - 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 grant date fair value of options and other stock options granted during the year ended December 31, 2015 were as follows: • Risk free interest rate 2.50% • Expected term 2–3 years • Volatility 95–123% • Dividend – • forfeiture rate 0–30%

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Note 10. Income Taxes Income tax benefit of $43,000 and $20,000 in 2016 and 2015, respectively, is recognized for the impact of deferred tax assets and liabilities, which represent consequences of events that have been recognized differently in the financial statements under GAAP than for tax purposes. The difference between the U.S. statutory federal tax rate of 34% in 2016 and 2015 and the provision for income tax recorded by the Company is primarily attributable to the change in the Company’s valuation allowance against its deferred tax assets and to a lesser extent to the tax the differential on losses in foreign countries. Deferred Tax Assets The Company’s United Kingdom subsidiary has non-capital losses of approximately $10.9 million available for future deductions from taxable income derived in the United Kingdom, which do not expire. The potential benefit of net operating loss carryforwards has not been recognized in the combined financial statements since the Company cannot determine that it is more likely than not that such benefit will be utilized in future years. The tax years 2006 through 2015 remain open to examination by federal authorities and other jurisdictions in which the Company operates namely United Kingdom, Switzerland, Ireland, China and Hong Kong. The components of the net deferred tax asset and the amount of the valuation allowance are as follows: (in thousands) December 31 2016 2015 Deferred tax assets Net operating loss carryforwards - International 6,097 4,527 Valuation allowance (6,097 ) (4,527 ) Net deferred tax assets $ - $ - The increase in the valuation allowance was $529,000 for the year ended December 31, 2016 and $449,000 for the year ended December 31, 2015.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11. Commitments and Contingencies Contractual Commitments The Company incurred rent expense of $63,000 and $86,000, respectively, for the years ended December 31, 2016 and 2015. There are no minimum contractual lease commitments in excess of one year from, December 31, 2016 Legal Proceedings Since 2014 the Company has been involved in legal proceedings with Broadband Satellite Services Limited (“BSS”) to whom we sold had sold former subsidiaries in 2012. In December 2016 the parties agreed to drop their respective claims and counterclaims without any payment required to paid by either party. As a result the Company has written off receivable amounts due by BSS totaling approximately $455,000 in the Company’s books having provided previously an amount totaling approximately $605,000 against the original unpaid sales invoices.

Restatements

Restatements	12 Months Ended
	Dec. 31, 2016
Statement of Financial Position [Abstract]
Restatements	Note 12. Restatements In the first quarter of 2017, management’s working with the Company’s advisers and auditors reviewed the pace of rollout of the Company’s licensed software with respect to revenue share customers over the previous two years. Based on the review and the slower than forecasted commercial roll out by some of the customers during the past two years management determined that the timing of the write off of slow paying account receivable balances should be altered. Accordingly the previously reported balances as outlined below have been restated. As a result, the allocation of the provision for uncertain accounts receivable made in 2015 and 2016 was restated as follows. Annual Balance Sheet data: December 31, 2014 December 31, 2015 As reported As restated As reported As restated $000’s $000’s $000’s $000’s Accounts receivable 9,072 2,644 3,560 1,760 Total current assets 12,820 6,392 5,734 3,934 Total assets 24,406 17,978 15,934 14,134 Retained earnings deficit (15,227 ) (21,655 ) (26,201 ) (28,001 ) Total stockholders’ equity 17,080 10,652 9,837 8,037 Quarterly Balance Sheet data: March 31, 2015 June 30, 2015 September 30, 2015 As reported As restated As reported As restated As reported As restated $000’s $000’s $000’s $000’s $000’s $000’s Accounts receivable current portion 5,879 2,567 5,448 2,476 3,811 2,510 Total current assets 8,386 5,074 6,887 3,915 6,903 5,206 Accounts receivable, net of current portion 3,116 0 3,456 0 5,127 0 Total assets 23,024 16,596 21,823 15,395 22,870 16,442 Retained earnings deficit (16,185 ) (22,613 ) (17,758 ) (24,186 ) (19,386 ) (25,814 ) Total stockholders’ equity 16,305 9,877 15,287 8,859 16,321 9,893 March 31, 2016 June 30, 2016 September 30, 2016 As reported As restated As reported As restated As reported As restated $000’s $000’s $000’s $000’s $000’s $000’s Accounts receivable current portion 3,058 1,258 2,963 1,163 3,037 1,237 Total current assets 5,114 3,314 4,552 2,752 3,840 2,040 Total assets* 14,943 13,143 13,806 12,006 12,793 10,993 Retained earnings deficit (27,484 ) (29,284 ) (28,927 ) (30,727 ) (30,420 ) (32,220 ) Total stockholders’ equity 9,114 7,314 7,795 5,995 6,586 4,786 * = Prior to giving effect to the implementation of ASU 2015-03 (Note 2). Statement of operations data: December 31, 2015 As reported As restated $000’s $000’s Increase in allowance for doubtful accounts 5,562 934 Loss from operations (10,229 ) (5,601 ) Loss from operations before income taxes (10,944 ) (6,316 ) Net loss for the year (10,924 ) (6,296 ) Net loss for the year attributable to One Horizon Group, Inc (10,874 ) (6,246 ) Net loss attributable to One Horizon Group Inc common stockholders (10,974 ) (6,346 ) Earnings per share – basic $ (0.32 ) $ (0.18 ) Earnings per share – diluted $ (0.30 ) $ (0.16 ) There was no impact of the restatement on the previously reported quarterly income statements during the years ended December 31, 2015 and 2016 as previously filed on Form 10-Q as the allowance was initially recorded the fourth quarter of each year. Accordingly such information has not been presented in this restatement

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Segment Information	Note 13. Segment Information The Company has two business segments, both of which involve the development and licensing of software for mobile VoIP. One for business to business line and one for business to consumer line, primarily represented by Aishuo. For the years ended December 31, 2016 and 2015 activity in the business to consumer line is not material for separate segment presentation. The Company’s revenues were generated in the following geographic areas: (in thousands) Year ended December 31, 2016 2015 China $ 224 $ 57 Rest of Asia 1,325 900 Europe and Russia 48 25 The Americas 7 550 $ 1,615 $ 1,532

Subsequent Event

Subsequent Event	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Event	Note 14. Subsequent events On February 28, 2017, One Horizon Group, Inc. (the “Company”) received a notice from The Nasdaq Stock Market LLC (“Nasdaq”) Listing Qualifications Staff (the “Staff”) stating that the Staff has determined, unless the Company timely requests an appeal of the Staff’s determination, before Nasdaq’s Hearing Panel (the “Panel”), by March 7, 2017, to delist the Company’s common stock from the Nasdaq Capital Market because the Company is not in compliance with the $1.00 minimum bid price requirement (the “Minimum Bid Price”) for continued listing set forth in the Nasdaq Listing Rule 5550(a)(2). The Company filed a request for a hearing before the Panel, on March 2, 2017, which request will stay any delisting or suspension action by the Staff pending the issuance of the Panel’s decision and the expiration of any extension granted by the Panel. On March 3, 2017, the Staff informed the Company that they were granted a hearing to be held on April 20, 2017 (the “Hearing”). As such, the delisting action, referenced above, has been stayed, pending a final written decision by the Panel at the Hearing. At the Hearing, the Company will present its plan to regain compliance with the Minimum Bid Price by effecting a reverse stock split. On March 3, 2017, the Company filed a preliminary proxy statement with the Securities and Exchange Commission in connection with special meeting of stockholders (the “Stockholders’ Meeting”) to be held on April 14, 2017. One of the proposals being submitted to a vote of the stockholders at the Stockholders’ Meeting is the approval of a 6 to 1 reverse stock split of all of the issued and outstanding shares of the Company’s common stock. Management believes that effecting the reverse stock split will allow the Company’s common stock to regain compliance with Nasdaq Listing Rule 5550(a)(2), which should allow the Company’s common stock to continue to trade on the Nasdaq Capital Market. Assuming the reverse stock split proposal is approved by the Company’s stockholders, the Company’s board of directors currently intends to effect the reverse stock split, unless it determines that doing so would not have the desired effect of satisfying the Minimum Bid Price requirement.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Liquidity and Capital Resources	Liquidity and Capital Resources As we continue to pursue our operations and our business plan, we expect to incur further losses in 2017 which when combined with our continued investment in our intellectual property, will generate negative cash flows. As of December 31, 2016, the Company did not have any available credit facilities. As a result, we are in the process of seeking new financing by way of sale of either convertible debt or equities. Whilst we have been successful in the past in obtaining the necessary capital to support our investment and operations there is no assurance that we will be able to obtain additional financing under acceptable terms and conditions, or at all. In the event, we are unable to obtain sufficient additional funding when needed in order to fund our ongoing research and development activities as well as our operations, we would not be able to continue as a going concern and maybe forced to severely curtail or cease operations and liquidate the Company. As a result, our auditors’ report for our 2016 Financial Statements, which are included as part of this report, contains a statement concerning our ability to continue as a “going concern”.
Basis of Accounting and Presentation	Basis of Accounting and Presentation These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States
Foreign Currency Translation	Foreign Currency Translation 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, Ireland, the United Kingdom and China, 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 Other income and expense.
Cash	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, Ireland, Singapore, Hong Kong and China 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 Accounts receivable result primarily from sale of software and licenses to customers and are recorded at their principal amounts. The categories of sales and receivables and their terms of payment are as follows: a) Master License Agreement (“Agreement”) deposits b) Software consultancy and hardware fees c) Maintenance and operational fees and end user licenses fees Receivables are generally unsecured. Account balances are charged off against the allowance when the Company determines that certain receivable will probably not be recovered. The Company does not have off-balance sheet credit exposure related to its customers. As of December 31, 2016 and December 31, 2015, two customers accounted for 61% and 51%, respectively, of the accounts receivable balance.
Property and Equipment	Property and Equipment Property and equipment is primarily comprised of equipment that is recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives of between 3 and 5 years. Repairs and maintenance are charged to expense as incurred. Expenditures that substantially increase the useful lives of existing assets are capitalized.
Intangible Assets	Intangible Assets Intangible assets include software development costs and customer lists and are amortized on a straight-line basis over the estimated useful lives of five years for customer lists and ten years for software development. The Company periodically evaluates whether changes have occurred that would require revision of the remaining estimated useful life. The Company performs periodic reviews of its capitalized intangible assets to determine if the assets have continuing value to the Company. Based on these valuations, no impairment charges were recognized during either of the years December 31, 2016 or 2015. 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. Judgement is required in determining when technical 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 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 years ended December 31, 2016 and 2015 software development costs of $467,000 and $1,063,000 respectively, have been capitalized.
Impairment of Other Long-Lived Assets	Impairment of Other Long-Lived Assets The Company evaluates the recoverability of its property and equipment and other long-lived assets 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 years ended December 31, 2016 and 2015 the Company recorded no impairment losses related to the Company’s long-lived assets.
Revenue Recognition	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, price is fixed and determinable, and collectability is reasonably assured. • Software and licenses – revenue from sales of perpetual licenses to telecom entities is recognized at date of invoices raised for installments due under the agreement, unless payment terms exceed one year, as described below, presuming all other relevant revenue recognition criteria are met. Revenue from sales of perpetual licenses to other entities is recognized over the agreed collection period. • Revenue for user licenses purchased by customers is recognized when the user license is delivered. • Revenue for maintenance services is recognized over the period of delivery of the services. • Effective October 1, 2014, the Company amended certain existing customer contracts with respect to the terms under which those customers would pay the Company for perpetual licenses, user licenses and maintenance services provided by the Company. Existing customer contracts required payments for maintenance services to be made based on contractually specified fixed amounts, which were billed regularly through September 2014. Through that date the Company recorded revenue for licenses and maintenance services when those licenses and services were billed. Revenue for user licenses was recorded as earned and revenue for maintenance services was recorded based on a fixed annual fee, billed quarterly. The Company has modified the payment terms under certain of those existing customer contracts by entering into Revenue Sharing agreements with those customers. Under the terms of these Revenue Sharing agreements, future payments will be due from the customer when that customer has generated revenue from its customers who subscribe to use the Horizon products and services. Hosted services are offered to customers on revenue share arrangements whereby the Company can provide fully terminated services and sells vouchers for minutes which can be resold by the customer. Sales for this service are recognized when the supply is made and the invoice raised. Effective October 1, 2014 revenue has been recorded by the Company when it invoices the customer for the revenue share due to the Company. Certain customers who entered into revenue sharing arrangements had outstanding balances due to the Company as of September 30, 2014, which balances were included in accounts receivable as at that date. Payments received after September 30, 2014, from those customers under revenue sharing agreements have been applied to the customer’s existing accounts receivable balances first. For those customers having balances due at September 30, 2014, revenue related to perpetual and user licenses and maintenance services are recorded only after existing accounts receivable balances are fully collected. • Revenues from Aishuo retail sales are recognized when the PSTN calls and texts are made. Where the Company has entered into a Revenue Share with the customer, then all future revenue from granting of user licenses and for maintenance services will be recognized when the Company has delivered user licenses and is entitled to invoice. We enter into arrangements in 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, we allocate revenue 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 and determinable. In order to determine the company’s historical experience is based on sufficiently similar arrangements, the Company considers the various factors including the types of customers and products, product life cycle, elements Included in the arrangement, length of payment terms and economics of license arrangement. During the year ended December 31, 2016 $1,175,000 or 73% of the Company’s revenue was concentrated in the hands of one major customer. During the year ended December 31, 2015, $1,205,000 or 79% of the Company’s revenue was concentrated in the hands of two customers.
Advertising Expenses	Advertising Expenses It is the Company’s policy to expense advertising costs as incurred. Advertising costs incurred during the years ended December 31, 2016 and 2015 were $39,000 and $30,000, respectively.
Research and Development Expenses	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 internal-use 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 expensed research and development costs in the years ended December 31, 2016 and 2015 of $605,000 and $579,000, respectively.
Debt Issue Costs	Debt Issue Costs In accordance with the ASU No. 2015-03 the debt issue costs related to long-term debt are shown as a reduction of debt outstanding and amortized over the term of the related debt using the effective interest method.
Income Taxes	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. 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. Historically the Company has not filed income tax returns and the related required informational filings in the US. Certain informational filings if not filed contain penalties. The Company is currently addressing this issue with advisors to determine the amount, if any, of potential payments due. Given the complexity of the issue the Company is unable to quantify a range of potential loss, if any. Accordingly no liability has been recorded in the accompanying consolidated balance sheets in respect of this matter
Net Loss per Share	Net Loss per Share Basic net loss per share is calculated by dividing the net loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. Diluted loss per share takes into consideration common shares outstanding (computed under basic loss per share) and potentially dilutive securities. For the years ended December 31, 2016 and 2015, outstanding stock options, warrants and convertible debt are antidilutive because of net losses, and as such, their effect has not been included in the calculation of diluted net loss per share. Common shares issuable are considered outstanding as of the original approval date for purposes of earnings per share comparisons.
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss), as defined, includes net income (loss), 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	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, 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	Financial Instruments The carrying value of our financial assets and liabilities such as cash, accounts receivable and accounts payable approximate their fair values based on level 1 inputs in the fair value hierarchy because of the short maturity of these instruments. Due to the conversion features and other terms, it is not practical to estimate the fair value of amounts due to related parties and long term debt.
Share-Based Compensation	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 option pricing model, which includes subjective judgements about the expected life of the awards, forfeiture rates and stock price volatility.
Recently Issued Accounting Standards Not Yet Adopted	Recently Issued Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09 – Revenue From Contracts with Customers The original effective date for ASU 2014-09 would have required the Company to adopt beginning in its first quarter 2017. In July 2015, the FASB voted to amend ASU 2014-09 by approving a one year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, the Company may adopt the standard in either its first quarter of 2017 or 2018. The new revenue standard may be applied retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on it consolidated financial statements.

Suzhou Aishuo Network Informa23

Suzhou Aishuo Network Information Co. Ltd. (Tables)	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of assets, liabilities and results of operations of AISHOU	Summarized assets, liabilities and results of operations, prior to eliminations in consolidation, of Aishuo are as follows: (in thousands) December 31 December 31 2016 2015 Assets $ 5 $ 43 Intercompany receivables/(payables) (355 ) (123 ) Other liabilities (12 ) (60 ) Revenue 224 56 Net Loss (292 ) (286 )

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment consist of the following: (in thousands) December 31 December 31 2016 2015 Equipment $ 285 $ 291 Less accumulated depreciation (243 ) (195 ) Property and equipment, net $ 42 $ 96

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Intangible assets consist primarily of software development costs and customer and reseller relationships which are amortized over the estimated useful life, generally on a straight-line basis with the exception of customer relationships, which are generally amortized over the greater of straight-line or the related asset’s pattern of economic benefit. (in thousands) December 31 December 31 2016 2015 Horizon software $ 18,634 $ 17,879 ZTEsoft Telecom software 438 469 Customer lists 885 885 19,957 19,233 Less accumulated amortization (11,550 ) (9,410 ) Intangible assets, net $ 8,407 $ 9,823

Related-Party Transactions (Tab

Related-Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Schedule of due to related parties	Amounts due to related parties include the following: (in thousands) December 31 December 31 2016 2015 Loans due to stockholders (current officers and directors) $ 2,343 $ 2,354

Share Capital (Tables)

Share Capital (Tables)	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Schedule of stock purchase warrants	At December 31, 2016, the Company had reserved 3,901,191 shares of its common stock for the following outstanding warrants: Number of Warrants Weighted average Expiry Intrinsic value 3,898,941 2.73 To December 2019 -

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of equity incentive plan	A summary of the 2013 Plan as of December 31, 2016, is as follows: Number of Weighted Options Exercise Price Outstanding at January 1, 2015 500,000 $ 4.54 Options issued 564,000 1.09 Options forfeited (120,000 ) 4.54 Outstanding at December 31, 2015 944,000 $ 2.48 Options forfeited (96,500 ) 2.52 Outstanding at December 31, 2016 847,500 2.47
Schedule of other stock options	A summary of the Company’s other stock options for the years ended December 31, 2015 and 2016, is as follows: Number of Weighted Options Exercise Price Outstanding at January 1, 2015 584,650 $ 0.53 Options issued 291,900 $ 0.53 Options forfeited (850 ) $ 0.51 Outstanding at December 31, 2015 875,700 $ 0.53 Options issued - - Options forfeited - - Outstanding at December 31, 2016 875,700 $ 0.53
Schedule of stock options outstanding exercise price range	The following table summarizes all stock options outstanding at December 31, 2016: Number Average Number Intrinsic Outstanding Remaining Exercisable Value at Contractual at at December 31, Life December 31, December 31, Exercise Price 2016 (Years) 2016 2016 $ 0.53 291,900 3.50 291,900 - 0.53 291,900 5.50 291,900 - 0.53 291,900 8.75 291,900 - 4.54 340,000 7.00 - - 1.09 507,500 8.50 - - Total 1,723,200 875,700 -
Schedule of fair value of each option granted is estimated date of grant using Black-Scholes option-pricing model	The assumptions used in calculating the grant date fair value of options and other stock options granted during the year ended December 31, 2015 were as follows: • Risk free interest rate 2.50% Expected term 2–3 years • Volatility 95–123% • Dividend – • forfeiture rate 0–30%

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of net deferred tax liability	The components of the net deferred tax asset and the amount of the valuation allowance are as follows: (in thousands) December 31 2016 2015 Deferred tax assets Net operating loss carryforwards - International 6,097 4,527 Valuation allowance (6,097 ) (4,527 ) Net deferred tax assets $ - $ -

Restatements (Tables)

Restatements (Tables)	12 Months Ended
	Dec. 31, 2016
Statement of Financial Position [Abstract]
Schedule of restatement of statement of balance sheet and statement of operations	As a result, the allocation of the provision for uncertain accounts receivable made in 2015 and 2016 was restated as follows. Annual Balance Sheet data: December 31, 2014 December 31, 2015 As reported As restated As reported As restated $000’s $000’s $000’s $000’s Accounts receivable 9,072 2,644 3,560 1,760 Total current assets 12,820 6,392 5,734 3,934 Total assets 24,406 17,978 15,934 14,134 Retained earnings deficit (15,227 ) (21,655 ) (26,201 ) (28,001 ) Total stockholders’ equity 17,080 10,652 9,837 8,037 Quarterly Balance Sheet data: March 31, 2015 June 30, 2015 September 30, 2015 As reported As restated As reported As restated As reported As restated $000’s $000’s $000’s $000’s $000’s $000’s Accounts receivable current portion 5,879 2,567 5,448 2,476 3,811 2,510 Total current assets 8,386 5,074 6,887 3,915 6,903 5,206 Accounts receivable, net of current portion 3,116 0 3,456 0 5,127 0 Total assets 23,024 16,596 21,823 15,395 22,870 16,442 Retained earnings deficit (16,185 ) (22,613 ) (17,758 ) (24,186 ) (19,386 ) (25,814 ) Total stockholders’ equity 16,305 9,877 15,287 8,859 16,321 9,893 March 31, 2016 June 30, 2016 September 30, 2016 As reported As restated As reported As restated As reported As restated $000’s $000’s $000’s $000’s $000’s $000’s Accounts receivable current portion 3,058 1,258 2,963 1,163 3,037 1,237 Total current assets 5,114 3,314 4,552 2,752 3,840 2,040 Total assets* 14,943 13,143 13,806 12,006 12,793 10,993 Retained earnings deficit (27,484 ) (29,284 ) (28,927 ) (30,727 ) (30,420 ) (32,220 ) Total stockholders’ equity 9,114 7,314 7,795 5,995 6,586 4,786 * = Prior to giving effect to the implementation of ASU 2015-03 (Note 2). Statement of operations data: December 31, 2015 As reported As restated $000’s $000’s Increase in allowance for doubtful accounts 5,562 934 Loss from operations (10,229 ) (5,601 ) Loss from operations before income taxes (10,944 ) (6,316 ) Net loss for the year (10,924 ) (6,296 ) Net loss for the year attributable to One Horizon Group, Inc (10,874 ) (6,246 ) Net loss attributable to One Horizon Group Inc common stockholders (10,974 ) (6,346 ) Earnings per share – basic $ (0.32 ) $ (0.18 ) Earnings per share – diluted $ (0.30 ) $ (0.16 )

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Schedule of revenues by geographic areas	The Company’s revenues were generated in the following geographic areas: (in thousands) Year ended December 31, 2016 2015 China $ 224 $ 57 Rest of Asia 1,325 900 Europe and Russia 48 25 The Americas 7 550 $ 1,615 $ 1,532

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)Number	Dec. 31, 2015USD ($)Number
Advertising costs	$ 39	$ 30
Research and development costs	605	579	[1]
Capitalized cost for software development	$ 467	$ 1,063
Customer Lists [Member]
Useful life of intangible assets	5 years
Software Development [Member]
Useful life of intangible assets	10 years
Minimum [Member]
Useful life of property and equipment	3 years
Maximum [Member]
Useful life of property and equipment	5 years
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Number of customers | Number	2	2
Percentage of concentration risk	61.00%	51.00%
Customer Concentration Risk [Member] | Sales Revenue [Member]
Number of customers | Number	1	1
Percentage of concentration risk	73.00%
Revenue	$ 1,175
Customer Concentration Risk [Member] | Sales Revenue [Member] | Two Customers [Member]
Percentage of concentration risk		79.00%
Revenue		$ 1,205
[1]	As Restated, note 12

Suzhuo Aishuo Network Informati

Suzhuo Aishuo Network Information Co. Ltd. (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015		Sep. 30, 2016	[1]	Jun. 30, 2016	[1]	Mar. 31, 2016	[1]	Sep. 30, 2015	[1]	Jun. 30, 2015	[1]	Mar. 31, 2015	[1]
Assets	$ 10,406	$ 13,871	[1]	$ 10,993		$ 12,006		$ 13,143		$ 16,442		$ 15,395		$ 16,596
Net loss attributable to One Horizon Group, Inc.	(5,539)	(6,246)	[2]
Suzhou Aishuo Network Information Co. Ltd [Member]
Assets	5	43
Intercompany receivables/(payables)	(355)	(123)
Other liabilities	(12)	(60)
Revenue	224	56
Net loss attributable to One Horizon Group, Inc.	$ (292)	$ (286)
[1]	Prior to giving effect to the implementation of ASU 2015-03 (Note 2).
[2]	As Restated, note 12

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property And Equipment Net Details
Equipment	$ 285	$ 291
Less accumulated depreciation	(243)	(195)
Property and equipment, net	$ 42	$ 96	[1]
[1]	As Restated, note 12

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Intangible assets, gross	$ 19,957	$ 19,233
Less accumulated amortization	(11,550)	(9,410)
Intangible assets, net	8,407	9,823	[1]
Horizon Software [Member]
Intangible assets, gross	18,634	17,879
ZTEsoft Telecom Software [Member]
Intangible assets, gross	438	469
Customer Lists [Member]
Intangible assets, gross	$ 885	$ 885
[1]	As Restated, note 12

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) $ in Thousands	Dec. 31, 2016USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets first year	$ 2,100
Amortization of intangible assets second year	2,100
Amortization of intangible assets third year	2,100
Amortization of intangible assets four year	$ 2,100

Convertible Debenture (Details

Convertible Debenture (Details Narrative) - Private Placement [Member] - 8% Convertible Debenture [Member] - USD ($) $ in Thousands	Dec. 22, 2014	Dec. 31, 2016
Debt face amount	$ 3,500
Number of common shares issued upon conversion	1,555,556
Debt instrument term	3 years
Fair value of warrant		$ 598,500
Fair value of debt beneficial conversion feature		$ 302,994
Common stock reserved for potential conversion of the convertible debenture		1,555,556
Class C Warrant [Member]
Number of warrant shares issued upon conversion	388,889
Warrant term	4 years
Class D Warrant [Member]
Number of warrant shares issued upon conversion	388,889
Warrant term	4 years

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Related Party Transactions [Abstract]
Loans due to stockholders (current officers and directors)	$ 2,343	$ 2,354

Related-Party Transactions (D39

Related-Party Transactions (Details Narrative) (USD $) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Due from related party		$ 2,343
Maturity date		Apr. 1, 2018
Horizon Latin America [Member]
Due from related party		$ 250	$ 400
Initial payments received upon perpetual software license	$ 500
Percentage ownership interest		10.00%

Share Capital (Details)

Share Capital (Details) - First Warrant [Member]	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Number of Warrants | shares	3,898,941
Weighted average exercise price (in dollars per share) | $ / shares	$ 2.73
Expiry	2019-12
Intrinsic value | $

Share Capital (Details Narrativ

Share Capital (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Aug. 10, 2015	Dec. 31, 2016	Dec. 31, 2015
Preferred stock, authorized		50,000,000	50,000,000
Preferred stock, par value (in dollars per share)		$ 0.0001	$ 0.0001
Preferred stock, issued		170,940	170,940
Preferred stock, outstanding		170,940	170,940
Temporary equity issued		$ 62	$ 73	[1]
Common stock, authorized		200,000,000	200,000,000
Common stock, par value (in dollars per share)		$ 0.0001	$ 0.0001
Number of shares issued upon new issue		1,018,925
Value of shares issued upon new issue		$ 400
Fair value issued for services		$ 133,960
Number of shares issued for services		200,000
Number of shares issued upon services receive in future		45,000
Value of shares issued upon services receive in future		$ 33,750
Number of shares issued upon settlement		$ 457,366
Value of shares issued upon settlement		160,535
Warrant [Member]
Number of shares issued upon new issue		764,195
Number of common shares reserved for outstanding warrants		3,898,941
Number of warrants forfeited		160,000
Number of cashless basis warrants outstanding		933,107
Aegis Capital Corp [Member] | Underwriting Agreement [Member]
Number of shares issued upon new issue	1,714,286
Share price (in dollars per share)	$ 1.75
Number of additional shares issued upon new issue	151,928
Net proceeds from issuance public offering	$ 2,890
Aegis Capital Corp [Member] | Underwriting Agreement [Member] | Warrant [Member]
Exercise price (in dollars per share)	$ 2.50
Debt instrument term	3 years
Number of shares issued upon new issue	857,143
Number of additional shares issued upon new issue	75,964
Mandatorily Redeemable Preferred Shares [Member] | One Horizon Group Plc [Member]
Temporary equity issued		$ 50,000
Mandatorily Redeemable Preferred Shares [Member] | One Horizon Group Plc [Member] | GBP [Member]
Temporary equity par value (in pound per share)		$ 1
Private Placement [Member] | 10% Series A Convertible Preferred Stock [Member]
Conversion price (in dollars per share)		$ 5.85
Description of redemption terms		Company completes a financing of $10 million or greater prior to Maturity, the Series A Preferred Stock will be redeemed at a price equal to the original purchase price plus all accrued but unpaid dividends.
Preferred stock, issued		170,940
Preferred stock, outstanding		170,940
[1]	As Restated, note 12

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - 2013 Equity Incentive Plan [Member] - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning	944,000	500,000
Options issued		564,000
Options forfeited	(96,500)	(120,000)
Outstanding at ending	847,500	944,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning	$ 2.48	$ 4.54
Options issued		1.09
Options forfeited	2.52	4.54
Outstanding at ending	$ 2.47	$ 2.48

Stock-Based Compensation (Det43

Stock-Based Compensation (Details 1) - Other Stock Options [Member] - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning	875,700	584,650
Options issued		291,900
Options forfeited		(850)
Outstanding at ending	875,700	875,700
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning	$ 0.53	$ 0.53
Options issued		0.53
Options forfeited		0.51
Outstanding at ending	$ 0.53	$ 0.53

Stock-Based Compensation (Det44

Stock-Based Compensation (Details 2)	12 Months Ended
	Dec. 31, 2016USD ($)shares
Number Outstanding	1,723,200
Number Exercisable	875,700
Intrinsic Value | $
Exercise Price $0.53 [Member]
Number Outstanding	291,900
Average Remaining Contractual Life (Years)	3 years 6 months
Number Exercisable	291,900
Intrinsic Value | $
Exercise Price $0.53 [Member]
Number Outstanding	291,900
Average Remaining Contractual Life (Years)	5 years 6 months
Number Exercisable	291,900
Intrinsic Value | $
Exercise Price $0.53 [Member]
Number Outstanding	291,900
Average Remaining Contractual Life (Years)	8 years 9 months
Number Exercisable	291,900
Intrinsic Value | $
Exercise Price $4.54 [Member]
Number Outstanding	340,000
Average Remaining Contractual Life (Years)	7 years
Number Exercisable
Intrinsic Value | $
Exercise Price $1.09 [Member]
Number Outstanding	507,500
Average Remaining Contractual Life (Years)	8 years 6 months
Number Exercisable
Intrinsic Value | $

Stock-Based Compensation (Det45

Stock-Based Compensation (Details 3)	12 Months Ended
	Dec. 31, 2015
Risk free interest rate	2.50%
Dividend
Minimum [Member]
Expected term	2 years
Volatility	95.00%
forfeiture rate	0.00%
Maximum [Member]
Expected term	3 years
Volatility	123.00%
forfeiture rate	30.00%

Stock-Based Compensation (Det46

Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2016	Aug. 06, 2013
Other Stock Options [Member]
Unrecognized compensation expense	$ 64
2013 Equity Incentive Plan [Member]
Number of shares available for grants		3,000,000
Number of additional shares added to available for grants per year		1,000,000
Unrecognized compensation expense	$ 167
Number of common stock reserved for future issuance	4,936,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets
Net operating loss carryforwards - International	$ 6,097	$ 4,527
Valuation allowance	(6,097)	(4,527)
Net deferred tax assets

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income tax benefit	$ (43)	$ (20)	[1]
Statutory federal tax rate	34.00%	34.00%
Increase in valuation allowance	$ 529	$ 449
Non-Capital Loss Carryforward [Member]
Federal net operating losses	$ 10,900
[1]	As Restated, note 12

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Rent expense	$ 63	$ 86
Broadband Satellite Services Limited ("BSS") [Member]
Written off receivable amounts	455
Original unpaid sales invoices	$ 605

Restatements (Details)

Restatements (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015		Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Accounts receivable	$ 1,208	$ 1,237	$ 1,163	$ 1,258	$ 1,760	[1]	$ 2,510	$ 2,476	$ 2,567	$ 2,644
Total current assets	1,940	2,040	2,752	3,314	3,934	[1]	5,206	3,915	5,074	6,392
Total assets					13,871					17,978
Retained earnings deficit	(33,590)	(32,220)	(30,727)	(29,284)	(28,001)	[1]	(25,814)	(24,186)	(22,613)	(21,655)
Total stockholders' equity	$ 3,945	4,786	5,995	7,314	8,037	[1]	9,893	8,859	9,877	10,652	[1]
Scenario, Previously Reported [Member]
Accounts receivable		3,037	2,963	3,058	3,560		3,811	5,448	5,879	9,072
Total current assets		3,840	4,552	5,114	5,734		6,903	6,887	8,386	12,820
Total assets					15,934					24,406
Retained earnings deficit		(30,420)	(28,927)	(27,484)	(26,201)		(19,386)	(17,758)	(16,185)	(15,227)
Total stockholders' equity		$ 6,586	$ 7,795	$ 9,114	$ 9,837		$ 16,321	$ 15,287	$ 16,305	$ 17,080
[1]	As Restated, note 12

Restatements (Details 1)

Restatements (Details 1) - USD ($) $ in Thousands		Dec. 31, 2016	Sep. 30, 2016		Jun. 30, 2016		Mar. 31, 2016		Dec. 31, 2015		Sep. 30, 2015		Jun. 30, 2015		Mar. 31, 2015		Dec. 31, 2014
Accounts receivable current portion		$ 1,208	$ 1,237		$ 1,163		$ 1,258		$ 1,760	[1]	$ 2,510		$ 2,476		$ 2,567		$ 2,644
Total current assets		1,940	2,040		2,752		3,314		3,934	[1]	5,206		3,915		5,074		6,392
Accounts receivable, net of current portion											0		0		0
Total assets		10,406	10,993	[2]	12,006	[2]	13,143	[2]	13,871	[2]	16,442	[2]	15,395	[2]	16,596	[2]
Retained earnings deficit		(33,590)	(32,220)		(30,727)		(29,284)		(28,001)	[1]	(25,814)		(24,186)		(22,613)		(21,655)
Total stockholders' equity		$ 3,945	4,786		5,995		7,314		8,037	[1]	9,893		8,859		9,877		10,652	[1]
Scenario, Previously Reported [Member]
Accounts receivable current portion			3,037		2,963		3,058		3,560		3,811		5,448		5,879		9,072
Total current assets			3,840		4,552		5,114		5,734		6,903		6,887		8,386		12,820
Accounts receivable, net of current portion											5,127		3,456		3,116
Total assets	[2]		12,793		13,806		14,943				22,870		21,823		23,024
Retained earnings deficit			(30,420)		(28,927)		(27,484)		(26,201)		(19,386)		(17,758)		(16,185)		(15,227)
Total stockholders' equity			$ 6,586		$ 7,795		$ 9,114		$ 9,837		$ 16,321		$ 15,287		$ 16,305		$ 17,080
[1]	As Restated, note 12
[2]	Prior to giving effect to the implementation of ASU 2015-03 (Note 2).

Restatements (Details 2)

Restatements (Details 2) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Increase in allowance for doubtful accounts	$ 455	$ 934	[1]
Loss from operations	(4,879)	(5,601)	[1]
Loss from operations before income taxes	(5,582)	(6,316)	[1]
Net loss for the year	(5,539)	(6,296)	[1]
Net loss attributable to One Horizon Group, Inc.	(5,539)	(6,246)	[1]
Net loss attributable to One Horizon Group Inc common stockholders	$ (5,589)	$ (6,346)	[1]
Earnings per share - basic (in dollars per share)		$ (0.18)
Earnings per share - diluted (in dollars per share)		$ (0.16)
Scenario, Previously Reported [Member]
Increase in allowance for doubtful accounts		$ 5,562
Loss from operations		(10,229)
Loss from operations before income taxes		(10,944)
Net loss for the year		(10,924)
Net loss attributable to One Horizon Group, Inc.		(10,874)
Net loss attributable to One Horizon Group Inc common stockholders		$ (10,974)
Earnings per share - basic (in dollars per share)		$ (0.32)
Earnings per share - diluted (in dollars per share)		$ (0.30)
[1]	As Restated, note 12

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Revenues	$ 1,615	$ 1,532	[1]
China [Member]
Revenues	224	57
Rest Of Asia [Member]
Revenues	1,325	900
Europe and Russia [Member]
Revenues	48	25
The Americas [Member]
Revenues	$ 7	$ 550
[1]	As Restated, note 12

Segment Information (Details Na

Segment Information (Details Narrative)	12 Months Ended
	Dec. 31, 2016Number
Segment Reporting [Abstract]
Number of segments	2

Subsequent Event (Details)

Subsequent Event (Details)	Mar. 03, 2017
Subsequent Event [Member]
Reverse stock split	6 to 1 reverse stock split