Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 14, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Communication Intelligence Corp | ' |
Entity Central Index Key | '0000727634 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
EntityVoluntaryFilers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 225,824,328 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $287 | $486 |
Accounts receivable, net of allowance of $0 at September 30, 2013 and $27 at December 31, 2012 | 259 | 701 |
Prepaid expenses and other current assets | 78 | 73 |
Total current assets | 624 | 1,260 |
Property and equipment, net | 20 | 28 |
Patents, net | 1,380 | 1,655 |
Other assets | 29 | 29 |
Total assets | 2,053 | 2,972 |
Current liabilities: | ' | ' |
Short-term notes payable | 750 | ' |
Accounts payable | 256 | 75 |
Accrued compensation | 256 | 289 |
Other accrued liabilities | 190 | 150 |
Deferred revenue | 589 | 569 |
Total current liabilities | 2,041 | 1,083 |
Deferred revenue long-term | ' | 249 |
Deferred rent | 99 | 125 |
Derivative liability | 37 | 128 |
Total liabilities | 2,177 | 1,585 |
Commitments and Contingencies | ' | ' |
Stockholders' (deficit) equity | ' | ' |
Common Stock, $0.01 par value; 1,500,000 shares authorized; 232,324 issued, 225,824 outstanding at September 30, 2013 and 231,023 shares issued and 224,523 outstanding at December 31, 2012 | 2,322 | 2,309 |
Treasury shares, 6,500 shares at September 30, 2013 and December 31, 2012, respectively | -325 | -325 |
Additional paid in capital | 94,664 | 95,262 |
Accumulated deficit | -117,684 | -114,420 |
Accumulated other comprehensive loss | -15 | -29 |
Total CIC stockholders' equity | 412 | 1,923 |
Non-Controlling interest | -536 | -536 |
Total Stockholders' (deficit) equity | -124 | 1,387 |
Total liabilities and shareholders' (deficit) equity | 2,053 | 2,972 |
Series A-1 Preferred Stock [Member] | ' | ' |
Stockholders' (deficit) equity | ' | ' |
Preferred stock by class of stock | 1,011 | 953 |
Series B Preferred Stock [Member] | ' | ' |
Stockholders' (deficit) equity | ' | ' |
Preferred stock by class of stock | 8,959 | 8,188 |
Series C Preferred Stock [Member] | ' | ' |
Stockholders' (deficit) equity | ' | ' |
Preferred stock by class of stock | 4,920 | 4,754 |
Series D-1 Preferred Stock [Member] | ' | ' |
Stockholders' (deficit) equity | ' | ' |
Preferred stock by class of stock | 2,278 | 2,158 |
Series D-2 Preferred Stock [Member] | ' | ' |
Stockholders' (deficit) equity | ' | ' |
Preferred stock by class of stock | $4,282 | $3,073 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Accounts receivable, allowance | $0 | $27 |
Stockholders' (deficit) equity | ' | ' |
Common Stock, par value | $0.01 | $0.01 |
Common Stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common Stock, shares issued | 232,324,000 | 231,023,000 |
Common Stock, shares outstanding | 225,824,000 | 224,523,000 |
Treasury shares | 6,500,000 | 6,500,000 |
Series A-1 Preferred Stock [Member] | ' | ' |
Stockholders' (deficit) equity | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 1,011,000 | 953,000 |
Preferred stock, shares outstanding | 1,011,000 | 953,000 |
Preferred stock, liquidation preference | 1,011 | ' |
Series B Preferred Stock [Member] | ' | ' |
Stockholders' (deficit) equity | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 14,000,000 | 14,000,000 |
Preferred stock, shares issued | 10,830,000 | 10,058,000 |
Preferred stock, shares outstanding | 10,830,000 | 10,058,000 |
Preferred stock, liquidation preference | 16,245 | ' |
Series C Preferred Stock [Member] | ' | ' |
Stockholders' (deficit) equity | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 9,000,000 | 9,000,000 |
Preferred stock, shares issued | 4,496,000 | 4,175,000 |
Preferred stock, shares outstanding | 4,496,000 | 4,175,000 |
Preferred stock, liquidation preference | 6,743 | ' |
Series D-1 Preferred Stock [Member] | ' | ' |
Stockholders' (deficit) equity | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 1,449,000 | 1,124,000 |
Preferred stock, shares outstanding | 1,449,000 | 1,124,000 |
Preferred stock, liquidation preference | 1,449 | ' |
Series D-2 Preferred Stock [Member] | ' | ' |
Stockholders' (deficit) equity | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 8,000,000 | 8,000,000 |
Preferred stock, shares issued | 4,511,000 | 3,302,000 |
Preferred stock, shares outstanding | 4,511,000 | 3,302,000 |
Preferred stock, liquidation preference | $4,511 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue: | ' | ' | ' | ' |
Product | $195 | $355 | $358 | $1,231 |
Maintenance | 175 | 161 | 509 | 477 |
Total revenues | 370 | 516 | 867 | 1,708 |
Cost of sales: | ' | ' | ' | ' |
Product | 54 | 87 | 63 | 308 |
Maintenance | 45 | 9 | 194 | 48 |
Research and development | 471 | 441 | 1,563 | 1,247 |
Sales and marketing expense | 291 | 329 | 884 | 1,059 |
General and administrative expense | 414 | 426 | 1,506 | 1,388 |
Total operating costs and expenses | 1,275 | 1,292 | 4,210 | 4,050 |
Loss from operations | -905 | -776 | -3,343 | -2,342 |
Other expense, net | -2 | -3 | -3 | -9 |
Interest expense: | ' | ' | ' | ' |
Related party | -6 | -30 | -9 | -88 |
Other | ' | -34 | ' | -57 |
Amortization of loan discount and deferred financing: | ' | ' | ' | ' |
Related party | ' | -5 | ' | -13 |
Other | ' | -7 | ' | -16 |
Gain on derivative liability | 26 | 43 | 91 | 149 |
Net loss | -887 | -812 | -3,264 | -2,376 |
Accretion of beneficial conversion feature, preferred shares: | ' | ' | ' | ' |
Related party | -23 | -93 | -164 | -767 |
Other | -14 | -58 | -195 | -201 |
Preferred stock dividends: | ' | ' | ' | ' |
Related party | -281 | -158 | -717 | -370 |
Other | -225 | -51 | -614 | -121 |
Income tax | ' | ' | ' | ' |
Net loss before non-controlling interest | -1,430 | -1,172 | -4,954 | -3,835 |
Net loss attributable to non-controlling interest | ' | ' | ' | ' |
Net loss attributable to common stockholders | ($1,430) | ($1,172) | ($4,954) | ($3,835) |
Basic and diluted loss per common share | ($0.01) | ($0.01) | ($0.02) | ($0.02) |
Weighted average common shares outstanding, basic and diluted | 225,824 | 224,492 | 225,810 | 222,198 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Comprehensive income: | ' | ' | ' | ' |
Net loss | ($887) | ($812) | ($3,264) | ($2,376) |
Foreign currency translation adjustment | ' | 1 | ' | 5 |
Total comprehensive loss | ($887) | ($811) | ($3,264) | ($2,371) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net loss | ($3,264) | ($2,376) |
Adjustments to reconcile net loss to net cash used for operating activities: | ' | ' |
Depreciation and amortization | 287 | 365 |
Amortization of debt discount and deferred financing costs | ' | 29 |
Stock-based employee compensation | 560 | 376 |
Restricted stock expense | ' | 2 |
Series C Preferred issued in settlement of indemnity claim | ' | 417 |
Common Stock received as settlement of 16b claim | ' | -325 |
Warrants issued for services | ' | 3 |
(Loss) gain on derivative liability | -91 | -149 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | 442 | -216 |
Prepaid expenses and other assets | -5 | -165 |
Accounts payable | 181 | 75 |
Accrued Compensation | -33 | 76 |
Other accrued liabilities | 28 | -37 |
Deferred revenue | -229 | -136 |
Net cash used in operating activities | -2,124 | -2,061 |
Cash flows from investing activities: | ' | ' |
Acquisition of property and equipment | -4 | -8 |
Net cash used in investing activities | -4 | -8 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of short-term notes payable | 1,000 | 2,328 |
Proceeds from exercise of warrants for cash | 29 | 213 |
Proceeds from exercise of stock options | ' | 12 |
Payments on short term notes payble | -250 | -225 |
Net cash provided by financing activities | 1,929 | 2,328 |
Effect of exchange rate changes on cash and cash equivalents | ' | ' |
Net (decrease) increase in cash and cash equivalents | -199 | 259 |
Cash and cash equivalents at beginning of period | 486 | 307 |
Cash and cash equivalents at end of period | 287 | 501 |
Supplemental disclosure of cash flow information: | ' | ' |
Interest paid | 2 | ' |
Income tax paid | ' | ' |
Non-cash financing and investing transactions: | ' | ' |
Dividends on preferred shares | 1,331 | 491 |
Accretion of beneficial conversion feature for dividends on preferred shares | 201 | 968 |
Cashless exercise of warrants | ' | 202 |
Series B Preferred Stock [Member] | ' | ' |
Non-cash financing and investing transactions: | ' | ' |
Conversion of Preferred Stock into Common Stock | ' | 140 |
Series C Preferred Stock [Member] | ' | ' |
Non-cash financing and investing transactions: | ' | ' |
Conversion of Preferred Stock into Common Stock | ' | 39 |
Series D-1 Preferred Shares | ' | ' |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of Preferred shares | 230 | ' |
Non-cash financing and investing transactions: | ' | ' |
Accretion of beneficial conversion feature on issuance of preferred shares | 158 | ' |
Series D-2 Preferred Shares | ' | ' |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of Preferred shares | $920 | ' |
Nature_of_business_basis_of_pr
Nature of business, basis of presentation and summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of business, basis of presentation and summary of significant accounting policies | ' |
1. Nature of business and summary of significant accounting policies | |
Basis of Presentation | |
The financial information contained herein should be read in conjunction with the Company's consolidated audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2012. | |
The accompanying unaudited condensed consolidated financial statements of Communication Intelligence Corporation and its subsidiary (the "Company" or "CIC") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements included in this quarterly report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for a fair presentation of its financial position at the dates presented and the Company's results of operations and cash flows for the periods presented. The Company's interim results are not necessarily indicative of the results to be expected for the entire year. | |
The Company is a leading supplier of electronic signature products and the recognized leader in biometric signature verification. CIC enables companies to achieve truly paperless workflow in their electronic business processes by providing multiple signature technologies across virtually all applications. CIC's solutions are available both in software-as-a-service ("SaaS") and on-premise delivery models and afford "straight-through-processing," which can increase customer revenue by enhancing user experience and can also reduce costs through paperless and virtually error-free electronic transactions that can be completed significantly quicker than paper-based procedures. To date, the Company primarily has delivered biometric and electronic signature solutions to channel partners and end-user customers in the financial services industry. | |
The Company's research and development activities have given rise to numerous technologies and products. The Company's core technologies can be referred to as "transaction-enabling" technologies. These technologies include various forms of electronic signatures, such as handwritten biometric, click-to-sign and others, as well signature verification, cryptography and the logging of audit trails to show signers' intent. These technologies can enable secure, legal and regulatory compliant electronic transactions that can enhance customer experience at a fraction of the time and cost required by traditional, paper-based processes. The Company's products include SignatureOne® Ceremony® Server, the iSign® suite of products and services, including iSign® Enterprise and iSign® Console™, Sign-it® and the iSign® toolkits. | |
Going Concern | |
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As of September 30, 2013, the Company's accumulated deficit was approximately $ 117,684, and for the nine months ended September 30, 2013, the Company had incurred a net loss of $3,264. The Company also has a working capital deficit at September 30, 2013, of approximately $1,417. The Company has primarily met its working capital needs through the issuance of debt and sale of equity securities. As of September 30, 2013, the Company's cash balance was approximately $287. These factors raise substantial doubt about the Company's ability to continue as a going concern. | |
There can be no assurance that the Company will be successful in securing adequate capital resources to fund planned operations or that any additional funds will be available to the Company when needed, or if available, will be available on favorable terms or in amounts required by the Company. If the Company is unable to obtain adequate capital resources to fund operations, it may be required to delay, scale back or eliminate some or all of its operations, which may have a material adverse effect on the Company's business, results of operations and ability to operate as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
Revenue recognition | |
For products sold under perpetual license, the Company recognizes revenue upon shipment, provided that persuasive evidence of an arrangement exists, collection is determined to be probable, all non-recurring engineering work necessary to enable the Company's product to function within the customer's application has been completed and the Company's product has been delivered according to specifications. For software sold under a term license, the Company recognizes revenue over the term of the license granted. Revenue from customization of software is recognized when all engineering work necessary to enable the Company's products to function within the customer's application has been completed, and the Company has delivered its product according to specifications. | |
Software license agreements may contain multiple elements, including upgrades and enhancements, products deliverable on a when and if available basis and post contract support. | |
For arrangements with multiple deliverables the Company allocates consideration at the inception of an arrangement to all of its deliverables based on their relative selling prices. In the absence of the vendor-specific objective evidence or third-party evidence of the selling prices, Management's best estimate of the selling prices is used. For the Company's tangible products containing software and hardware elements that function together and deliver the tangible products' essential functionality is accounted for under the multiple-element arrangements revenue recognition guidance discussed above. | |
Maintenance revenue is recorded for post-contract support and upgrades or enhancements, which is paid for in addition to license fees, and is recognized as costs are incurred or over the support period whichever is longer. For undelivered elements where objective and reliable evidence of fair value does not exist, revenue is deferred and subsequently recognized when delivery has occurred and when fair value has been determined. | |
Treasury Stock | |
Shares of Common Stock returned to, or repurchased by the Company are recorded at cost and are included as a separate component of stockholders' equity. Under the cost method, the gross cost of the shares reacquired is charged to a contra equity account entitled treasury stock. The equity accounts that were credited for the original share issuance (Common Stock, paid-in capital in excess of par, etc.) remain intact. When the treasury shares are reissued, proceeds in excess of cost are credited to a paid-in capital account. Any deficiency is charged to retained earnings (unless paid-in capital from previous treasury share transactions exists, in which case the deficiency is charged to that account, with any excess charged to retained earnings). At September 30, 2013, the total value of treasury stock was $325. | |
Accounting Changes and Recent Accounting Pronouncements | |
Accounting Standards Issued But Not Yet Adopted | |
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations and cash flows. |
Accounts_receivable_and_revenu
Accounts receivable and revenue concentrations | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Accounts Receivable and revenue concentrations [Abstract] | ' | ||||||
Accounts receivable and revenue concentrations | ' | ||||||
2. Accounts receivable and revenue concentrations | |||||||
The following table summarizes accounts receivable and revenue concentrations: | |||||||
Accounts Receivable | Total Revenue | Total Revenue | |||||
As of September 30, | for the three months | for the nine months | |||||
ended September 30, | ended September 30, | ||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||
Customer #1 | 26% | ||||||
Customer #2 | 47% | 37% | 31% | 18% | 10% | ||
Customer #3 | 10% | ||||||
Customer #4 | 13% | 13% | |||||
Customer #5 | 22% | 29% | 10% | ||||
Customer #6 | 26% | ||||||
Customer #7 | 10% | 12% | |||||
Total concentration | 73% | 82% | 41% | 42% | 30% | 46% |
Patents
Patents | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||
Patents | ' | ||||
3. Patents | |||||
The Company performs intangible asset impairment analysis at least annually in accordance with the relevant accounting guidance. The Company periodically reassesses the lives of its patents and tests for impairment in order to determine whether the book value of each patent exceeds the fair value of each patent. Fair value is determined by estimating future cash flows from the products that are and will be protected by the patents and taking into account the factors listed in Critical Accounting Policies in the Company's Annual Report on Form 10-K. | |||||
Management completed an analysis of the Company's patents as of December 31, 2012. Based on that analysis, the Company concluded that no impairment of the carrying value of the patents existed. The Company believes that no events or circumstances occurred or changed during the three and nine months ended September 30, 2013, and therefore concluded that no impairment in the carrying values of the patents existed at September 30, 2013. | |||||
Amortization of patent costs was $92 and $275 for the three and nine-month periods ended September 30, 2013 and $90 and $274 for the three and nine-month periods ended September 30, 2012, respectively. | |||||
Intangible Assets | |||||
The following table summarizes intangible assets: | |||||
Amortizable intangible assets: | 30-Sep-13 | 31-Dec-12 | |||
Carrying | Accumulated | Carrying | Accumulative | ||
Amount | Amortization | Amount | Amortization | ||
Patents | $ | $ | $ | $ | |
6,746 | -5,366 | 6,746 | -5,091 |
Shortterm_notes_payable
Short-term notes payable | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Short-term notes payable | ' |
4. Short-term notes payable | |
The Company borrowed $250 from Phoenix Banner Holding LLC, $250 from Kendu Partners Company and $250 from Michael W. Engmann, each a related party, on August 3, 2013, September 3, 2013, and September 27, 2013, respectively. The aggregate $750 was borrowed in exchange for three unsecured demand notes that bear interest at the rate of 10% per annum. At September 30, 2013 accrued interest associated with the above notes was $6. The Company used the proceeds for working capital and general corporate purposes. | |
In April 2013, the Company borrowed $250 in the form of a demand note from Phoenix Banner Holdings LLC, with an interest rate of 10% per annum. The note plus $2 of accrued interest was paid in May 2013. |
Derivative_Liability
Derivative Liability | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Derivative liability [Abstract] | ' | ||||
Derivative liability | ' | ||||
5. Derivative liability | |||||
The Company has determined that certain warrants related to the Company's financings and the embedded conversion feature on the Series A-1 Cumulative Convertible Preferred Stock (the "Series A-1 Preferred Stock") require liability classification because of certain provisions that may result in an adjustment to the number of shares upon settlement and an adjustment to their exercise or conversion. The fair value of the embedded conversion feature for the Series A-1 Preferred Stock at September 30, 2013, and December 31, 2012, was insignificant. | |||||
In December 2010, the Company determined that the embedded conversion feature of its Series B Participating Convertible Preferred Stock (the "Series B Preferred Stock") and Series C Participating Convertible Preferred Stock (the "Series C Preferred Stock") required liability classification due to the impact the anti-dilution provisions could have had on the number of shares issuable upon conversion. In March 2011, the Company amended its Amended and Restated Certificate of Designation for its Series B Preferred Stock and its Certificate of Designation for its Series C Preferred Stock by amending the anti-dilution provisions. Under the amendments, in the event additional stock is issued at a price lower than the conversion price then in effect, the new conversion price of the Series B and/or Series C Preferred Stock cannot be (A) lower than the average closing market price for the Common Stock for the twenty (20) trading days prior to the closing date of a transaction requiring an adjustment in the conversion price or (B) greater than the conversion price then in effect. The amendments were approved by the Company's Board of Directors and the necessary majorities of the Company's Series A-1, Series B and Series C Preferred Stock, and were filed with the Delaware Secretary of State on March 31, 2011. As a result of these amendments, the Series B Preferred Stock and Series C Preferred Stock no longer require liability classification. | |||||
The fair value of the outstanding derivative liabilities at September 30, 2013, and December 31, 2012, was $37 and $128, respectively. | |||||
The Company uses the Black-Scholes pricing model to calculate fair value of its warrant derivative liabilities. Key assumptions used to apply these models are as follows: | |||||
30-Sep-13 | 31-Dec-12 | ||||
Expected term | 0.3 to 2.1 years | 0.3 to 2.8 years | |||
Volatility | 202.10% | 205.30% | |||
Risk-free interest rate | 2.64% | 1.78% | |||
Dividend yield | 0% | 0% | |||
Fair value measurements: | |||||
Assets and liabilities measured at fair value as of September 30, 2013 and December 31, 2012, are as follows: | |||||
Value at | Quoted | Significant | Significant | ||
prices in | other | unobservable | |||
active | observable | inputs | |||
markets | inputs | ||||
30-Sep-13 | (Level 1) | (Level 2) | (Level 3) | ||
Derivative liability | $ | $ | $ | $ | |
37 | - | - | 37 | ||
31-Dec-12 | |||||
Derivative liability | $ | $ | $ | $ | |
128 | - | - | 128 | ||
The fair value framework requires a categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets and liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: | |||||
Level 1: Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||
Level 2: Applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |||||
Level 3: Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |||||
The Company's assets and liabilities measured at fair value, whether recurring or non-recurring, at September 30, 2013, and December 31, 2012, and the fair value calculation input hierarchy level that we have determined applies to each asset and liability category. | |||||
Changes in the fair market value of the Level 3 derivative liability for the nine-month period ended September 30, 2013 are as follows: | |||||
Derivative Liability | |||||
Balance at January 1, 2013 | $ | ||||
128 | |||||
Gain on derivative liability | -91 | ||||
Balance at September 30, 2013 | $ | ||||
37 |
Net_loss_per_share
Net loss per share | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Net loss per share [Abstract] | ' | ||||
Net loss per share | ' | ||||
6. Net loss per share | |||||
The Company calculates basic net loss per share, based on the weighted average number of shares outstanding, and when applicable, diluted income per share, which is based on the weighted average number of shares and potential dilutive shares outstanding. | |||||
For the nine-months ended September 30, 2013, 70,017 shares of Common Stock subject to outstanding options, 7,222 shares of Series A-1 Preferred Stock, 249,941 shares of Series B Preferred Stock, 199,801 shares of Series C Preferred Stock, 64,401 shares of Series D-1 Convertible Preferred Stock (the "Series D-1 Preferred Stock") and 90,215 shares of Series D-2 Convertible Preferred Stock (the "Series D-2 Preferred Stock") on an as converted basis and 129,335 shares issuable upon exercise of warrants were excluded from the calculation of dilutive earnings per share as the exercise of such options and warrants would be anti-dilutive. | |||||
For the nine-months ended September 30, 2012, 46,080 shares of Common Stock subject to outstanding options, 6,540 shares of Series A-1 Preferred Stock, 226,434 shares of Series B Preferred Stock and 181,010 shares of Series C Preferred Stock on an as converted basis and 149,831 shares issuable upon exercise of warrants were excluded from the calculation of dilutive earnings per share as the exercise of such options and warrants would be anti-dilutive. | |||||
The following table is a reconciliation of the numerator (net loss) and the denominator (number of shares) used in the basic and diluted EPS calculations and sets forth potential shares of common stock that are not included in the diluted net loss per share calculation as the effect is antidilutive: | |||||
Three Months Ended | Nine Months Ended | ||||
September 30, | September 30, | September 30, | September 30, | ||
2013 | 2012 | 2013 | 2012 | ||
Numerator-basic and diluted net loss | $ | $ | $ | $ | |
-1,430 | -1,172 | -4,954 | -3,835 | ||
Denominator-basic or diluted weighted average number of common shares outstanding | 225,824 | 224,492 | 225,810 | 222,198 | |
Net loss per share - basic and diluted | $ | $ | $ | $ | |
-0.01 | -0.01 | -0.02 | -0.02 |
Equity
Equity | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Stockholders' Equity [Abstract] | ' | ||||||||
Stockholders' Equity | ' | ||||||||
7. Equity | |||||||||
Share-based compensation expense is based on the estimated grant date fair value of the portion of share-based payment awards that are ultimately expected to vest during the period. The grant date fair value of stock-based awards to employees and directors is calculated using the single option valuation approach. Forfeitures of share-based payment awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated average forfeiture rate for the nine-months ended September 30, 2013 and 2012, was approximately 9.73% and 9.60%, respectively, based on historical data. | |||||||||
Valuation and Expense Information: | |||||||||
The weighted-average fair value of stock-based compensation is based on the single option valuation approach. Forfeitures are estimated and it is assumed no dividends will be declared. The estimated fair value of stock-based compensation awards to employees is amortized using the accrual method over the vesting period of the options. The fair value calculations are based on the following assumptions: | |||||||||
Nine-months Ended | Nine-months Ended | ||||||||
30-Sep-13 | 30-Sep-12 | ||||||||
Risk free interest rate | 0.35% - 4.92% | 0.62% - 5.11% | |||||||
Expected life (years) | 2.82 - 7.00 | 2.82 - 7.00 | |||||||
Expected volatility | 91.99% - 198.38% | 91.99% - 180.36% | |||||||
Expected dividends | None | None | |||||||
The Company granted 26,554 stock options during the three and nine months ended September 30, 2013. There were no stock options exercised during the three and nine months ended September 30, 2013. | |||||||||
The Company granted 2,000 stock options during the three and nine months ended September 30, 2012, and 184 stock options were exercised for $12 in cash. | |||||||||
The following table summarizes the allocation of stock-based compensation expense related to stock option grants for the three and nine months ended September 30, 2013 and 2012. | |||||||||
Three Months Ended September 30, | Nine months Ended September 30, | ||||||||
2013 | 2012 | 2013 | 2012 | ||||||
Research and development | $ | $ | $ | $ | |||||
36 | 45 | 153 | 166 | ||||||
Sales and marketing | 13 | 27 | 55 | 70 | |||||
General and administrative | 75 | 30 | 320 | 117 | |||||
Director options | 7 | 7 | 32 | 23 | |||||
Stock-based compensation expense | $ | $ | $ | $ | |||||
131 | 109 | 560 | 376 | ||||||
A summary of option activity under the Company's plans as of September 30, 2013 and 2012 is as follows: | |||||||||
Options | 2013 | 2012 | |||||||
Shares | Weighted | Weighted | Aggregate | Shares | Weighted | Weighted | Aggregate | ||
Average | Average | Intrinsic | Average | Average | Intrinsic | ||||
Exercise | Remaining | Value | Exercise | Remaining | Value | ||||
Price | Contractual | Price | Contractual | ||||||
Term | Term | ||||||||
Outstanding at January 1, | 44,529 | $0.05 | $ | 51,353 | $0.09 | $ | |||
- | 4,449 | ||||||||
Granted | 26,554 | $0.04 | $ | 2,000 | $0.06 | $ | |||
- | 120 | ||||||||
Exercised | - | $ - | $ | -184 | $0.07 | $ | |||
- | -2 | ||||||||
Forfeited or expired | -1,066 | $0.13 | $ | -7,089 | $0.26 | $ | |||
- | -1,830 | ||||||||
Outstanding at September 30 | 70,017 | $0.05 | 5.24 | $ | 46,080 | $0.06 | 5.38 | $ | |
- | 2,237 | ||||||||
Vested and expected to vest at September 30 | 63,204 | $0.05 | 5.24 | $ | 41,656 | $0.06 | 5.38 | $ | |
- | 2,465 | ||||||||
Exercisable at September 30 | 38,793 | $0.05 | 4.73 | $ | 21,411 | $0.07 | 4.96 | $ | |
- | 1,603 | ||||||||
The following tables summarize significant ranges of outstanding and exercisable options as of September 30, 2013: | |||||||||
Range of Exercise Prices | Options Outstanding | Options Exercisable | |||||||
Number | Weighted | Weighted | Number | Weighted | |||||
Outstanding | Average | Average | Outstanding | Average | |||||
Remaining | Exercise | Exercise | |||||||
Contractual | Price | Price | |||||||
Life (in years) | |||||||||
$ 0.02 - $ 0.50 | 70,017 | 5.24 | $0.05 | 38,793 | $0.05 | ||||
The following tables summarize the Company's unvested shares as of September 30, 2013: | |||||||||
Non-vested Shares | Shares | Weighted Average | |||||||
Grant-Date | |||||||||
Fair Value | |||||||||
Unvested at January 1, 2013 | 21,210 | $0.05 | |||||||
Granted | 26,554 | $0.04 | |||||||
Forfeited | (682) | $0.14 | |||||||
Vested | (15,858) | $0.06 | |||||||
Unvested at September 30, 2013 | 31,224 | $0.04 | |||||||
As of September 30, 2013, there was $ 399 of total unrecognized compensation expense related to non-vested share-based compensation arrangements granted under the plans. The unrecognized compensation expense is expected to be realized over a weighted average period of 2.75 years. | |||||||||
Information with respect to the class of Preferred Stock at September 30, 2013 is as follows: | |||||||||
Class of | Issue Date | Annual | Annual | Liquidation | Conversion | YTD | Total | Common | |
Preferred | Dividend | Dividend | Preference | Price | Dividend | Preferred | Shares to be | ||
Stock | Payable, in | Shares in | Shares | issued if | |||||
Cash or In | Kind | Outstanding | Fully | ||||||
Kind | Converted | ||||||||
Series A-1 | May-08 | 8% | Quarterly in Arrears | $1.00 | $0.14 | 58 | 1,011 | 7,221 | |
Series B | Aug-10 | 10% | Quarterly in Arrears | $1.50 | $0.04 | 771 | 10,830 | 250,115 | |
Series C | December/March 2011 | 10% | Quarterly in Arrears | $1.50 | $0.02 | 320 | 4,496 | 199,822 | |
Series D-1 | November 2012/May 2013 | 10% | Quarterly in Arrears | $1.00 | $0.02 | 95 | 1,449 | 64,400 | |
Series D-2 | November 2012/May 2013 | 10% | Quarterly in Arrears | $1.00 | $0.05 | 288 | 4,511 | 90,220 | |
Total | 1,532 | ||||||||
Series A-1 Preferred Stock | |||||||||
In May 2008, the Company issued shares of the Company's Series A Cumulative Convertible Preferred Stock in exchange for certain debt. The Series A Cumulative Convertible Preferred Stock was subsequently exchanged in October 2008 for an equivalent number of shares of Series A-1 Preferred Stock. The shares of Series A-1 Preferred Stock are convertible any time and are subordinate to the Series B, Series C and Series D Preferred Stock. | |||||||||
Series B Preferred Stock | |||||||||
In August 2010, the Company completed the conversion of all of its outstanding indebtedness and issued shares of Series B Preferred Stock in accordance with an executed Exchange Agreement entered into with Phoenix Venture Fund LLC and certain other holders of the Company's indebtedness (the "Recapitalization"). The Company sold additional shares of Series B Preferred Stock for cash (the "Series B Financing") in addition to the conversion of its outstanding debt. The proceeds were used for working capital and general corporate purposes, in each case in the ordinary course of business, and to pay fees and expenses associated with the Recapitalization and Series B Financing. The shares of Series B Preferred Stock are convertible at any time and are subordinate to the Series C and Series D Preferred Stock. | |||||||||
Series C Preferred Stock | |||||||||
In December 2010, the Company completed the sale of shares of Series C Preferred Stock through a Securities Purchase Agreement with Phoenix Venture Fund LLC and certain other investors. The proceeds were used for working capital and general corporate purposes, in each case in the ordinary course of business, and to pay fees and expenses associated with the sale of the Series C Preferred Stock. The shares of Series C Preferred Stock are convertible into Common Stock at any time and are subordinate to the Series D Preferred Stock. | |||||||||
In March 2011, the Company issued shares of its Series C Preferred Stock and warrants to purchase shares of Common Stock to its President as part of a professional services agreement. In addition the Company sold additional shares of Series C Preferred Stock for cash. | |||||||||
In January 2012, the Company received 6,500 shares of Common Stock from Phoenix Venture Fund LLC ("Phoenix") in settlement of a 16b claim brought by a Company stockholder against Phoenix, certain affiliates and the Company, as a nominal defendant. The Common Stock was valued at $325. In settlement of an indemnification claim brought by Phoenix in March 2012, resulting from the settlement of the 16b claim in January 2012, the Company issued to Phoenix 278 shares of Series C Preferred Stock valued at $417. The Company booked a $418 accretion amount for the beneficial conversion feature on the 278 shares of Series C Preferred Stock. | |||||||||
Series D Preferred Stock | |||||||||
In November 2012, stockholders approved an increase in the Company's authorized capital and the issuance of Series D-1 and Series D-2 Preferred Stock. | |||||||||
In May 2013, the Company completed a private placement of 230 units of Series D Preferred Stock consisting of one (1) share of Series D-1 Preferred Stock and four (4) shares of Series D-2 Preferred Stock. The Series D-1 Preferred Stock can convert to Common Stock at a price of $0.0225 per share, and the Series D-2 Preferred Stock can convert to Common Stock at a price of $0.05 per share. The private placement provided $1,150 in proceeds to the Company. The proceeds were used for general working capital purposes and to repay a bridge loan that was secured in April 2013 from Phoenix Banner Holdings LLC in the amount of $250 plus $2 in accrued interest. | |||||||||
In November 2012, the Company converted approximately $3,099 of short-term debt and accrued interest into shares of Series D Preferred Stock net of offering costs of $190. The Company sold, for cash in a private placement, 1,082 of additional shares of Series D-2 Preferred Stock at a purchase price of $1.00 per share and received $967 net of offering costs of $115. The material terms of the Series D-1 and Series D-2 Preferred Stock, other than the initial conversion price, are essentially the same. The shares of Series D Preferred Stock are convertible at any time and rank senior to the Company's outstanding shares of Series A-1, Series B and Series C Preferred Stock, and of Common Stock with respect to dividend rights and liquidation preferences. | |||||||||
Preferred Stock Voting and Other Rights | |||||||||
Generally, the Company's Preferred Stock votes together on an as converted basis with the holders of Common Stock. In addition, the Company's Preferred Stock enjoys certain protective provisions, a liquidation preference and anti-dilution protection that are similar to one another. | |||||||||
Warrants | |||||||||
Series C Preferred Stock Warrants | |||||||||
Each investor who purchased shares of Series C Preferred Stock in the financing transactions which closed on December 31, 2010 and March 31, 2011 received a warrant to purchase a number of shares of Common Stock equal to the aggregate number of shares of Series C Preferred Stock purchased by the investor divided by 0.0225. Each warrant issued in connection with the Series C Financing has an exercise price of $0.0225 per share and is exercisable in whole or in part, including by means of cashless exercise, for a period of three years from the date of issuance. In February and March 2012, an aggregate of 35,162 warrants were exercised, 28,678 warrants were exercised by holders of the Series C Preferred Stock warrants and 6,484 warrants were exercised by the holders of the warrants other than the Series C Preferred Stock warrants. Of the Series C Preferred Stock warrants exercised, 6,222 were exercised for cash for which the Company received $213 and 22,456 were exercised on a cashless basis. The Company issued 23,928 shares of Common Stock related to these exercises. If the remaining outstanding Series C Warrants are exercised in their entirety, the Company would issue 107,623 shares of Common Stock. | |||||||||
Other Warrants | |||||||||
In January 2013, 1,300 warrants were exercised for $29 in cash. In February and March 2012, 6,484 warrants were exercised by the holders of the warrants other than the Series C Preferred Stock warrants described above. At September 30, 2013, 21,712 shares of Common Stock were reserved for issuance upon exercise of other outstanding warrants, in addition to the 107,623 shares of Common Stock issuable upon exercise of the Series C Warrants described above. | |||||||||
A summary of the warrant activity is as follows: | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
Warrants | Weighted | Warrants | Weighted | ||||||
Average | Average | ||||||||
Exercise Price | Exercise Price | ||||||||
Outstanding at beginning of period | 151,722 | $0.03 | 182,644 | $0.03 | |||||
Issued | - | - | 8,643 | $0.05 | |||||
Exercised | (1,300) | $0.02 | (35,162) | $0.03 | |||||
Expired | (21,087) | $0.04 | (4,403) | - | |||||
Outstanding at end of period | 129,335 | $0.03 | 151,722 | $0.03 | |||||
Exercisable at end of period | 129,335 | $0.03 | 151,722 | $0.03 | |||||
A summary of the status of the warrants outstanding and exercisable as of September 30, 2013, is as follows: | |||||||||
Number of Warrants | Weighted Average | Weighted Average | |||||||
Remaining Life | Exercise Price per | ||||||||
share | |||||||||
120,692 | 0.44 | $0.02 | |||||||
8,643 | 1.86 | $0.05 | |||||||
129,335 | 0.53 | $0.03 |
Nature_of_business_basis_of_pr1
Nature of business, basis of presentation and summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies | ' |
Basis of presentation | ' |
The accompanying unaudited condensed consolidated financial statements of Communication Intelligence Corporation and its subsidiary (the "Company" or "CIC") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements included in this quarterly report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for a fair presentation of its financial position at the dates presented and the Company's results of operations and cash flows for the periods presented. The Company's interim results are not necessarily indicative of the results to be expected for the entire year. | |
Revenue Recognition, Software | ' |
For products sold under perpetual license, the Company recognizes revenue upon shipment, provided that persuasive evidence of an arrangement exists, collection is determined to be probable, all non-recurring engineering work necessary to enable the Company's product to function within the customer's application has been completed and the Company's product has been delivered according to specifications. For software sold under a term license, the Company recognizes revenue over the term of the license granted. Revenue from customization of software is recognized when all engineering work necessary to enable the Company's products to function within the customer's application has been completed, and the Company has delivered its product according to specifications. | |
Revenue Recognition, Multiple-deliverable Arrangements | ' |
Software license agreements may contain multiple elements, including upgrades and enhancements, products deliverable on a when and if available basis and post contract support. | |
For arrangements with multiple deliverables the Company allocates consideration at the inception of an arrangement to all of its deliverables based on their relative selling prices. In the absence of the vendor-specific objective evidence or third-party evidence of the selling prices, Management's best estimate of the selling prices is used. For the Company's tangible products containing software and hardware elements that function together and deliver the tangible products' essential functionality is accounted for under the multiple-element arrangements revenue recognition guidance discussed above. | |
Maintenance revenue is recorded for post-contract support and upgrades or enhancements, which is paid for in addition to license fees, and is recognized as costs are incurred or over the support period whichever is longer. For undelivered elements where objective and reliable evidence of fair value does not exist, revenue is deferred and subsequently recognized when delivery has occurred and when fair value has been determined. | |
Treasury stock | ' |
Shares of Common Stock returned to, or repurchased by the Company are recorded at cost and are included as a separate component of stockholders' equity. Under the cost method, the gross cost of the shares reacquired is charged to a contra equity account entitled treasury stock. The equity accounts that were credited for the original share issuance (Common Stock, paid-in capital in excess of par, etc.) remain intact. When the treasury shares are reissued, proceeds in excess of cost are credited to a paid-in capital account. Any deficiency is charged to retained earnings (unless paid-in capital from previous treasury share transactions exists, in which case the deficiency is charged to that account, with any excess charged to retained earnings). | |
Patents Impairment | ' |
The Company performs intangible asset impairment analysis at least annually in accordance with the relevant accounting guidance. The Company periodically reassesses the lives of its patents and tests for impairment in order to determine whether the book value of each patent exceeds the fair value of each patent. Fair value is determined by estimating future cash flows from the products that are and will be protected by the patents and taking into account the factors listed in Critical Accounting Policies in the Company's Annual Report on Form 10-K. | |
Derivatives policy | ' |
The Company has determined that certain warrants related to the Company's financings and the embedded conversion feature on the Series A-1 Cumulative Convertible Preferred Stock (the "Series A-1 Preferred Stock") require liability classification because of certain provisions that may result in an adjustment to the number of shares upon settlement and an adjustment to their exercise or conversion. The fair value of the embedded conversion feature for the Series A-1 Preferred Stock at September 30, 2013, and December 31, 2012, was insignificant. | |
Fair value measurement | ' |
The fair value framework requires a categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets and liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: | |
Level 1: Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |
Level 2: Applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |
Level 3: Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |
Net loss per share | ' |
The Company calculates basic net loss per share, based on the weighted average number of shares outstanding, and when applicable, diluted income per share, which is based on the weighted average number of shares and potential dilutive shares outstanding. | |
Share-Based Compensation, valuation | ' |
Share-based compensation expense is based on the estimated grant date fair value of the portion of share-based payment awards that are ultimately expected to vest during the period. The grant date fair value of stock-based awards to employees and directors is calculated using the single option valuation approach. Forfeitures of share-based payment awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |
The weighted-average fair value of stock-based compensation is based on the single option valuation approach. Forfeitures are estimated and it is assumed no dividends will be declared. The estimated fair value of stock-based compensation awards to employees is amortized using the accrual method over the vesting period of the options. |
Accounts_receivable_and_revenu1
Accounts receivable and revenue concentrations (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Accounts Receivable and revenue concentrations [Abstract] | ' | ||||||
Summary of accounts receivable and revenue concentrations | ' | ||||||
Accounts Receivable | Total Revenue | Total Revenue | |||||
As of September 30, | for the three months | for the nine months | |||||
ended September 30, | ended September 30, | ||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||
Customer #1 | 26% | ||||||
Customer #2 | 47% | 37% | 31% | 18% | 10% | ||
Customer #3 | 10% | ||||||
Customer #4 | 13% | 13% | |||||
Customer #5 | 22% | 29% | 10% | ||||
Customer #6 | 26% | ||||||
Customer #7 | 10% | 12% | |||||
Total concentration | 73% | 82% | 41% | 42% | 30% | 46% |
Patents_Tables
Patents (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||
Summary of Intangible Assets | ' | ||||
Amortizable intangible assets: | 30-Sep-13 | 31-Dec-12 | |||
Carrying | Accumulated | Carrying | Accumulative | ||
Amount | Amortization | Amount | Amortization | ||
Patents | $ | $ | $ | $ | |
6,746 | -5,366 | 6,746 | -5,091 |
Derivative_Liability_Tables
Derivative Liability (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Derivative liability [Abstract] | ' | ||||
Key assumptions used to calculate fair value of warrant derivative liabilities | ' | ||||
30-Sep-13 | 31-Dec-12 | ||||
Expected term | 0.3 to 2.1 years | 0.3 to 2.8 years | |||
Volatility | 202.10% | 205.30% | |||
Risk-free interest rate | 2.64% | 1.78% | |||
Dividend yield | 0% | 0% | |||
Liabilities measured at fair value | ' | ||||
Value at | Quoted | Significant | Significant | ||
prices in | other | unobservable | |||
active | observable | inputs | |||
markets | inputs | ||||
30-Sep-13 | (Level 1) | (Level 2) | (Level 3) | ||
Derivative liability | $ | $ | $ | $ | |
37 | - | - | 37 | ||
31-Dec-12 | |||||
Derivative liability | $ | $ | $ | $ | |
128 | - | - | 128 | ||
Changes in the market value of the Level 3 derivative liability | ' | ||||
Derivative Liability | |||||
Balance at January 1, 2013 | $ | ||||
128 | |||||
Gain on derivative liability | -91 | ||||
Balance at September 30, 2013 | $ | ||||
37 |
Net_loss_per_share_Tables
Net loss per share (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Net loss per share [Abstract] | ' | ||||
Reconciliation of the numerator (net loss) and the denominator (number of shares) used in the basic and diluted EPS calculations | ' | ||||
Three Months Ended | Nine Months Ended | ||||
September 30, | September 30, | September 30, | September 30, | ||
2013 | 2012 | 2013 | 2012 | ||
Numerator-basic and diluted net loss | $ | $ | $ | $ | |
-1,430 | -1,172 | -4,954 | -3,835 | ||
Denominator-basic or diluted weighted average number of common shares outstanding | 225,824 | 224,492 | 225,810 | 222,198 | |
Net loss per share - basic and diluted | $ | $ | $ | $ | |
-0.01 | -0.01 | -0.02 | -0.02 |
Equity_Tables
Equity (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Stockholders' Equity [Abstract] | ' | ||||||||
Key assumptions for fair value calculation, stock options | ' | ||||||||
Nine-months Ended | Nine-months Ended | ||||||||
30-Sep-13 | 30-Sep-12 | ||||||||
Risk free interest rate | 0.35% - 4.92% | 0.62% - 5.11% | |||||||
Expected life (years) | 2.82 - 7.00 | 2.82 - 7.00 | |||||||
Expected volatility | 91.99% - 198.38% | 91.99% - 180.36% | |||||||
Expected dividends | None | None | |||||||
Allocation of stock-based compensation expense related to stock option grants | ' | ||||||||
Three Months Ended September 30, | Nine months Ended September 30, | ||||||||
2013 | 2012 | 2013 | 2012 | ||||||
Research and development | $ | $ | $ | $ | |||||
36 | 45 | 153 | 166 | ||||||
Sales and marketing | 13 | 27 | 55 | 70 | |||||
General and administrative | 75 | 30 | 320 | 117 | |||||
Director options | 7 | 7 | 32 | 23 | |||||
Stock-based compensation expense | $ | $ | $ | $ | |||||
131 | 109 | 560 | 376 | ||||||
Summary of option activity | ' | ||||||||
Options | 2013 | 2012 | |||||||
Shares | Weighted | Weighted | Aggregate | Shares | Weighted | Weighted | Aggregate | ||
Average | Average | Intrinsic | Average | Average | Intrinsic | ||||
Exercise | Remaining | Value | Exercise | Remaining | Value | ||||
Price | Contractual | Price | Contractual | ||||||
Term | Term | ||||||||
Outstanding at January 1, | 44,529 | $0.05 | $ | 51,353 | $0.09 | $ | |||
- | 4,449 | ||||||||
Granted | 26,554 | $0.04 | $ | 2,000 | $0.06 | $ | |||
- | 120 | ||||||||
Exercised | - | $ - | $ | -184 | $0.07 | $ | |||
- | -2 | ||||||||
Forfeited or expired | -1,066 | $0.13 | $ | -7,089 | $0.26 | $ | |||
- | -1,830 | ||||||||
Outstanding at September 30 | 70,017 | $0.05 | 5.24 | $ | 46,080 | $0.06 | 5.38 | $ | |
- | 2,237 | ||||||||
Vested and expected to vest at September 30 | 63,204 | $0.05 | 5.24 | $ | 41,656 | $0.06 | 5.38 | $ | |
- | 2,465 | ||||||||
Exercisable at September 30 | 38,793 | $0.05 | 4.73 | $ | 21,411 | $0.07 | 4.96 | $ | |
- | 1,603 | ||||||||
Summary of the significant ranges of outstanding and exercisable options | ' | ||||||||
Range of Exercise Prices | Options Outstanding | Options Exercisable | |||||||
Number | Weighted | Weighted | Number | Weighted | |||||
Outstanding | Average | Average | Outstanding | Average | |||||
Remaining | Exercise | Exercise | |||||||
Contractual | Price | Price | |||||||
Life (in years) | |||||||||
$ 0.02 - $ 0.50 | 70,017 | 5.24 | $0.05 | 38,793 | $0.05 | ||||
Summary of the status of the Company's non-vested shares | ' | ||||||||
Non-vested Shares | Shares | Weighted Average | |||||||
Grant-Date | |||||||||
Fair Value | |||||||||
Unvested at January 1, 2013 | 21,210 | $0.05 | |||||||
Granted | 26,554 | $0.04 | |||||||
Forfeited | (682) | $0.14 | |||||||
Vested | (15,858) | $0.06 | |||||||
Unvested at September 30, 2013 | 31,224 | $0.04 | |||||||
Information with respect to the class of preferred stock | ' | ||||||||
Class of | Issue Date | Annual | Annual | Liquidation | Conversion | YTD | Total | Common | |
Preferred | Dividend | Dividend | Preference | Price | Dividend | Preferred | Shares to be | ||
Stock | Payable, in | Shares in | Shares | issued if | |||||
Cash or In | Kind | Outstanding | Fully | ||||||
Kind | Converted | ||||||||
Series A-1 | May-08 | 8% | Quarterly in Arrears | $1.00 | $0.14 | 58 | 1,011 | 7,221 | |
Series B | Aug-10 | 10% | Quarterly in Arrears | $1.50 | $0.04 | 771 | 10,830 | 250,115 | |
Series C | December/March 2011 | 10% | Quarterly in Arrears | $1.50 | $0.02 | 320 | 4,496 | 199,822 | |
Series D-1 | November 2012/May 2013 | 10% | Quarterly in Arrears | $1.00 | $0.02 | 95 | 1,449 | 64,400 | |
Series D-2 | November 2012/May 2013 | 10% | Quarterly in Arrears | $1.00 | $0.05 | 288 | 4,511 | 90,220 | |
Total | 1,532 | ||||||||
Summary of the warrants issued | ' | ||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
Warrants | Weighted | Warrants | Weighted | ||||||
Average | Average | ||||||||
Exercise Price | Exercise Price | ||||||||
Outstanding at beginning of period | 151,722 | $0.03 | 182,644 | $0.03 | |||||
Issued | - | - | 8,643 | $0.05 | |||||
Exercised | (1,300) | $0.02 | (35,162) | $0.03 | |||||
Expired | (21,087) | $0.04 | (4,403) | - | |||||
Outstanding at end of period | 129,335 | $0.03 | 151,722 | $0.03 | |||||
Exercisable at end of period | 129,335 | $0.03 | 151,722 | $0.03 | |||||
Status of the warrants outstanding | ' | ||||||||
Number of Warrants | Weighted Average | Weighted Average | |||||||
Remaining Life | Exercise Price per | ||||||||
share | |||||||||
120,692 | 0.44 | $0.02 | |||||||
8,643 | 1.86 | $0.05 | |||||||
129,335 | 0.53 | $0.03 |
Nature_of_business_basis_of_pr2
Nature of business, basis of presentation and summary of significant accounting policies (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Nature Of Business Basis Of Presentation And Summary Of Significant Accounting Policies Textual [Abstract] | ' | ' | ' | ' | ' | ' |
Accumulated deficit | ($117,684) | ' | ($117,684) | ' | ($114,420) | ' |
Net loss | -887 | -812 | -3,264 | -2,376 | ' | ' |
Working capital deficit | 1,417 | ' | 1,417 | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | 287 | 501 | 287 | 501 | 486 | 307 |
Treasury Stock, Value | $325 | ' | $325 | ' | $325 | ' |
Accounts_receivable_and_revenu2
Accounts receivable and revenue concentrations (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk percentage of gross receivables | 73.00% | 82.00% | 73.00% | 82.00% |
Concentration risk, percentage of total revenue | 41.00% | 42.00% | 30.00% | 46.00% |
Accounts Receivable [Member] | Customer 1 | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk percentage of gross receivables | 26.00% | ' | 26.00% | ' |
Accounts Receivable [Member] | Customer 2 | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk percentage of gross receivables | 47.00% | 37.00% | 47.00% | 37.00% |
Accounts Receivable [Member] | Customer 3 | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk percentage of gross receivables | ' | 10.00% | ' | 10.00% |
Accounts Receivable [Member] | Customer 4 | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk percentage of gross receivables | ' | 13.00% | ' | 13.00% |
Accounts Receivable [Member] | Customer 5 | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk percentage of gross receivables | ' | 22.00% | ' | 22.00% |
Sales Revenue, Services, Net [Member] | Customer 2 | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage of total revenue | 31.00% | ' | 18.00% | 10.00% |
Sales Revenue, Services, Net [Member] | Customer 4 | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage of total revenue | ' | 13.00% | ' | ' |
Sales Revenue, Services, Net [Member] | Customer 5 | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage of total revenue | ' | 29.00% | ' | 10.00% |
Sales Revenue, Services, Net [Member] | Customer 6 | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage of total revenue | ' | ' | ' | 26.00% |
Sales Revenue, Services, Net [Member] | Customer 7 | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage of total revenue | 10.00% | ' | 12.00% | ' |
Patents_Details
Patents (Details) (Patents [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Patents [Member] | ' | ' |
Amortizable intangible assets | ' | ' |
Finite-lived intangible assets, gross | $6,746 | $6,746 |
Finite-Lived intangible assets, accumulated amortization | ($5,366) | ($5,091) |
Patents_Details_Textual
Patents (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization of patent costs | $92 | $90 | $275 | $274 |
Patents impairment | $0 | $0 | $0 | $0 |
Shortterm_notes_payable_Detail
Short-term notes payable (Details Textual) (USD $) | 9 Months Ended | 1 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | 31-May-13 | Aug. 03, 2013 | Apr. 23, 2013 | Sep. 03, 2013 | Sep. 30, 2013 |
Unsecured demand notes [Member] | Unsecured demand notes [Member] | Unsecured demand notes [Member] | Unsecured demand notes [Member] | Unsecured demand notes [Member] | Unsecured demand notes [Member] | |||
Note | Phoenix Banner Holding LLC [Member] | Phoenix Banner Holding LLC [Member] | Phoenix Banner Holding LLC [Member] | Kendu Partners Company [Member] | Michael W. Engmann [Member] | |||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term notes payable | $750 | ' | ' | ' | $250 | $250 | $250 | $250 |
Interest rate percentage, per annum | ' | ' | ' | ' | 10.00% | 10.00% | 10.00% | 10.00% |
Number of unsecured demand notes | ' | ' | 3 | ' | ' | ' | ' | ' |
Payment on short term debt | 250 | 225 | ' | 250 | ' | ' | ' | ' |
Accrued interest associated with notes payable | ' | ' | $6 | $2 | ' | ' | ' | ' |
Derivative_liability_Details
Derivative liability (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Volatility | 202.10% | 205.30% |
Risk-free interest rate | 2.64% | 1.78% |
Dividend yield | $0 | $0 |
Minimum [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Expected term | '3 months 18 days | '3 months 18 days |
Maximum [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Expected term | '2 years 1 month 6 days | '2 years 9 months 18 days |
Derivative_Liability_Details1
Derivative Liability (Details1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Liabilities measured at fair value | ' | ' |
Derivative liability | $37 | $128 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Liabilities measured at fair value | ' | ' |
Derivative liability | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Liabilities measured at fair value | ' | ' |
Derivative liability | ' | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Liabilities measured at fair value | ' | ' |
Derivative liability | $37 | $128 |
Derivative_liability_Details_2
Derivative liability (Details 2) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' |
Balance at beginning of period | $128 |
Gain on derivative liability | -91 |
Balance at end of period | $37 |
Derivative_Liability_Details_T
Derivative Liability (Details Textual) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative Liability, Fair Value, Net [Abstract] | ' | ' |
Fair value of the derivative liability | $37 | $128 |
Net_loss_per_share_Details
Net loss per share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share Reconciliation [Abstract] | ' | ' | ' | ' |
Net Income (Loss) Attributable to Parent | ($1,430) | ($1,172) | ($4,954) | ($3,835) |
Denominator-basic or diluted weighted average number of common shares outstanding | 225,824 | 224,492 | 225,810 | 222,198 |
Net loss per share - basic and diluted | ($0.01) | ($0.01) | ($0.02) | ($0.02) |
Net_loss_per_share_Details_Tex
Net loss per share (Details Textual) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Series A-1 Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, shares | 7,222 | 6,540 |
Series B Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, shares | 249,941 | 226,434 |
Series C Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, shares | 199,801 | 181,010 |
Series D-1 Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, shares | 64,401 | ' |
Series D-2 Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, shares | 90,215 | ' |
Stock Options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, shares | 70,017 | 46,080 |
Warrants [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, shares | 129,335 | 149,831 |
Equity_Details
Equity (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ' | ' |
Risk-free interest rate, minimum | 0.35% | 0.62% |
Risk-free interest rate, maximum | 4.92% | 5.11% |
Expected volatility, minimum | 91.99% | 91.99% |
Expected volatility, maximum | 198.38% | 180.36% |
Expected dividends | $0 | $0 |
Minimum [Member] | ' | ' |
Fair value assumptions, stock options | ' | ' |
Expected life (years) | '2 years 9 months 18 days | '2 years 9 months 18 days |
Maximum [Member] | ' | ' |
Fair value assumptions, stock options | ' | ' |
Expected life (years) | '7 years | '7 years |
Equity_Details_1
Equity (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $131 | $109 | $560 | $376 |
Research and Development Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 36 | 45 | 153 | 166 |
Selling and Marketing Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 13 | 27 | 55 | 70 |
General and Administrative Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 75 | 30 | 320 | 117 |
Director Options [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $7 | $7 | $32 | $23 |
Equity_Details_2
Equity (Details 2) (USD $) | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Summary of stock options outstanding | ' | ' | ' |
Stock Options Outstanding, Beginning Balance | 44,529 | 51,353 | ' |
Stock Options, granted | 26,554 | 2,000 | ' |
Stock Options, exercised | ' | -184 | ' |
Stock Options, forfeited, or expired | -1,066 | -7,089 | ' |
Stock Options Outstanding, Ending Balance | 70,017 | 46,080 | ' |
Stock Options, Vested and expected to vest at ending balance | 63,204 | 41,656 | ' |
Stock Options Exercisable at ending balance | 38,793 | 21,411 | ' |
Weighted Average Exercise Price, Beginning Period | $0.05 | $0.09 | ' |
Weighted Average Exercise Price, Granted | $0.04 | $0.06 | ' |
Weighted Average Exercise Price, Exercised | ' | $0.07 | ' |
Weighted Average Exercise Price, Forfeited, or expired | $0.13 | $0.26 | ' |
Weighted Average Exercise Price, Ending Period | $0.05 | $0.06 | ' |
Weighted Average Exercise Price, Vested and expected to vest at ending balance | $0.05 | $0.06 | ' |
Weighted Average Exercise Price, Exercisable at ending balance | $0.05 | $0.07 | $0.05 |
Weighted Average Remaining Contractual Term, ending balance | '5 years 2 months 12 days | '5 years 3 months 18 days | ' |
Weighted Average Remaining Contractual Term, vested and expected to vest at ending balance | '5 years 2 months 12 days | '5 years 3 months 18 days | ' |
Weighted Average Remaining Contractual Term, excercisable at ending balance | '4 years 8 months 12 days | '4 years 10 months 24 days | ' |
Aggregate Intrinsic Value, Beginning Balance | ' | $4,449 | ' |
Aggregate Intrinsic Value, Granted | ' | 120 | ' |
Aggregate Intrinsic Value, Exercised | ' | -2 | ' |
Aggregate Intrinsic Value, Forfeited or expired | ' | -1,830 | ' |
Aggregate Intrinsic Value, Ending Balance | ' | 2,237 | ' |
Aggregate Intrinsic Value, Vested and expected to vest at ending balance | ' | 2,465 | ' |
Aggregate Intrinsic Value, Exercisable at ending balance | ' | $1,603 | ' |
Equity_Details_3
Equity (Details 3) (Range One [Member], USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Range One [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range Limit | $0.02 |
Exercise Price Range, Upper Range Limit | $0.50 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract] | ' |
Number of Outstanding Options | 70,017 |
Outstanding Options, Weighted Average Remaining Contractual Term (in years) | '5 years 2 months 12 days |
Outstanding Options, Weighted Average Exercise Price | $0.05 |
Exercisable Options, Number Outstanding | 38,793 |
Exercisable Options, Weighted Average Exercise Price | $0.05 |
Equity_Details_4
Equity (Details 4) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Equity Instruments, Options, Nonvested Shares Roll-Forward | ' |
Non-vested shares, Beginning Balance | 21,210 |
Non-vested shares, granted | 26,554 |
Non-vested shares, forfeited, or expired | -682 |
Non-vested shares, vested | -15,858 |
Stock Options Outstanding, Ending Balance | 31,224 |
Weighted Average Grant Date Fair Value, Options Nonvested at beginning of period | $0.05 |
Weighted Average Grant Date Fair Value, Options nonvested, grants in period | $0.04 |
Weighted Average Grant Date Fair Value, Options nonvested, forfeited in period | $0.14 |
Weighted Average Grant Date Fair Value, Options nonvested, vested in period | $0.06 |
Weighted Average Grant Date Fair Value, Options nonvested at end of period | $0.04 |
Equity_Details_5
Equity (Details 5) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
YTD Dividend Shares in Kind | $1,532,000 | ' |
Series A-1 Preferred Stock [Member] | ' | ' |
Issue Date | 'May 2008 | ' |
Annual Dividend | 8.00% | ' |
Annual Dividend Payable, in Cash or In Kind | 'Quarterly in Arrears | ' |
Liquidation Preference | 1 | ' |
Conversion Price | $0.14 | ' |
YTD Dividend Shares in Kind | 58,000 | ' |
Total Preferred Shares Outstanding | 1,011,000 | 953,000 |
Common Shares to be Issued if Fully Converted | 7,221,000 | ' |
Series B Preferred Stock [Member] | ' | ' |
Issue Date | 'August 2010 | ' |
Annual Dividend | 10.00% | ' |
Annual Dividend Payable, in Cash or In Kind | 'Quarterly in Arrears | ' |
Liquidation Preference | 1.5 | ' |
Conversion Price | $0.04 | ' |
YTD Dividend Shares in Kind | 771,000 | ' |
Total Preferred Shares Outstanding | 10,830,000 | 10,058,000 |
Common Shares to be Issued if Fully Converted | 250,115,000 | ' |
Series C Preferred Stock [Member] | ' | ' |
Issue Date | 'December/March 2011 | ' |
Annual Dividend | 10.00% | ' |
Annual Dividend Payable, in Cash or In Kind | 'Quarterly in Arrears | ' |
Liquidation Preference | 1.5 | ' |
Conversion Price | $0.02 | ' |
YTD Dividend Shares in Kind | 320,000 | ' |
Total Preferred Shares Outstanding | 4,496,000 | 4,175,000 |
Common Shares to be Issued if Fully Converted | 199,822,000 | ' |
Series D-1 Preferred Stock [Member] | ' | ' |
Issue Date | 'November 2012/May 2013 | ' |
Annual Dividend | 10.00% | ' |
Annual Dividend Payable, in Cash or In Kind | 'Quarterly in Arrears | ' |
Liquidation Preference | 1 | ' |
Conversion Price | $0.02 | ' |
YTD Dividend Shares in Kind | 95,000 | ' |
Total Preferred Shares Outstanding | 1,449,000 | 1,124,000 |
Common Shares to be Issued if Fully Converted | 64,400,000 | ' |
Series D-2 Preferred Stock [Member] | ' | ' |
Issue Date | 'November 2012/May 2013 | ' |
Annual Dividend | 10.00% | ' |
Annual Dividend Payable, in Cash or In Kind | 'Quarterly in Arrears | ' |
Liquidation Preference | 1 | ' |
Conversion Price | $0.05 | ' |
YTD Dividend Shares in Kind | $288,000 | ' |
Total Preferred Shares Outstanding | 4,511,000 | 3,302,000 |
Common Shares to be Issued if Fully Converted | 90,220,000 | ' |
Equity_Details_6
Equity (Details 6) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Class Of Warrant Or Right Number Of Warrants Or Rights Roll Forward | ' | ' |
Number of Warrants Outstanding at beginning of period | 151,722 | 182,644 |
Number Of Warrants Or Rights Issued | ' | 8,643 |
Number Of Warrants Or Rights Exercised | -1,300 | -35,162 |
Number Of Warrants Or Rights Expired | -21,087 | -4,403 |
Number of Warrants Outstanding at end of period | 129,335 | 151,722 |
Number of Warrants Or Rights Exercisable at end of period | 129,335 | 151,722 |
Excercise Price of Warrants Outstanding at beginning of period | $0.03 | $0.03 |
Exercise Price Of Warrants Issued | ' | $0.05 |
Exercise Price Of Warrants Exercised | $0.02 | $0.03 |
Exercise Price Of Warrants Expired | $0.04 | ' |
Excercise Price of Warrants Outstanding at end of period | $0.03 | $0.03 |
Exercise Price Of WarrantsExercisable at end of period | $0.03 | $0.03 |
Equity_Details_7
Equity (Details 7) (USD $) | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Class of Warrant or Right [Line Items] | ' | ' | ' |
Number of Warrants Outstanding and Excercisable | 129,335 | 151,722 | 182,644 |
Weighted Average Remaining Life Of Warrants Or Rights | '0 years 8 months 16 days | ' | ' |
Warrants Weighted Average Exercise Price | $0.03 | $0.03 | $0.03 |
Warrants Group Two [Member] | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' |
Number of Warrants Outstanding and Excercisable | 120,692 | ' | ' |
Weighted Average Remaining Life Of Warrants Or Rights | '0 years 5 months 9 days | ' | ' |
Warrants Weighted Average Exercise Price | $0.02 | ' | ' |
Warrants Group Three [Member] | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' |
Number of Warrants Outstanding and Excercisable | 8,643 | ' | ' |
Weighted Average Remaining Life Of Warrants Or Rights | '1 year 9 months 18 days | ' | ' |
Warrants Weighted Average Exercise Price | $0.05 | ' | ' |
Equity_Details_Textual
Equity (Details Textual) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Arrangements with Employees and Nonemployees [Abstract] | ' | ' |
Option grants estimated average forfeiture rate | 9.73% | 9.60% |
Stock Options, granted | 26,554 | 2,000 |
Stock Options, exercised | ' | 184 |
Proceeds from exercise of stock options, in cash | ' | $12 |
Total unrecognized compensation expense related to non-vested share-based compensation arrangements granted under the plans | $399 | ' |
Unrecognized compensation expense amortization period | '2 years 8 months 12 days | ' |
Equity_Details_Textual_1
Equity (Details Textual 1) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | 31-May-13 | Sep. 30, 2013 | 31-May-13 | Sep. 30, 2013 | 31-May-13 | Nov. 30, 2012 | Mar. 31, 2012 | Jan. 31, 2012 | Nov. 30, 2012 |
Series D Preferred Stock [Member] | Series D One Preferred Stock [Member] | Series D One Preferred Stock [Member] | Series D Two Preferred Stock [Member] | Series D Two Preferred Stock [Member] | Series D Two Preferred Stock For Cash [Member] | Settlement Of Indemnification Claim [Member] | Settlement Of Indemnification Claim [Member] | Series D Financing [Member] | |||||
Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aquired treasury shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,500,000 | ' |
Value of aquired treasury shares | ' | ' | ' | $325 | ' | ' | ' | ' | ' | ' | ' | $325 | ' |
Number of shares issued in private placement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 278,000 | ' | ' |
Stock issued in a private placement, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,082 | 417 | ' | ' |
Accretion of Beneficial Conversion Feature on Series C Preferred Shares issued in settlement of the indemnification claim | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 418 | ' | ' |
Preferred units, issued in a private placement | ' | ' | ' | ' | 230,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Excercise price of preferred shares (preferred units componenets) | ' | ' | ' | ' | ' | ' | $0.00 | ' | $0.05 | ' | ' | ' | ' |
Preferred Units, Components | ' | ' | ' | ' | ' | ' | 1 | ' | 4 | ' | ' | ' | ' |
Preferred Units, Description | ' | ' | ' | ' | 'Units of Series D Preferred Shares consisting of one (1) share of Series D-1 Preferred Stock with an exercise price of $0.0025 per share and four (4) shares of Series D-2 Preferred Stock at an exercise price of $0.05 per share. | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of Preferred shares | ' | ' | ' | ' | 1,150 | 230 | ' | 920 | ' | ' | ' | ' | ' |
Repayment of a bridge loan with Phoenix Banner LLC | ' | ' | 250 | 225 | 250 | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest paid out along with loan repayment | ' | ' | 2 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of short-term debt and accrued interest, net of offering costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,099 |
Proceeds from sale of stock, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | 967 | ' | ' | ' |
Purchase price per share for the shares sold in private placement | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' |
Offering expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | $115 | ' | ' | $190 |
Equity_Details_Textual_2
Equity (Details Textual 2) (USD $) | 9 Months Ended | 12 Months Ended | 2 Months Ended | 1 Months Ended | 2 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Sep. 30, 2013 | Jan. 31, 2013 | Mar. 31, 2012 | Sep. 30, 2013 |
Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | Other Holders [Member] | Other Holders [Member] | Other Holders [Member] | |||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercise price | $0.03 | ' | $0.03 | $0.03 | ' | $0.02 | ' | ' | ' |
Exercise period of warrants | ' | ' | ' | ' | '3 years | ' | ' | ' | ' |
Number of warrants exercised | 1,300 | ' | 35,162 | ' | 28,678 | ' | ' | 6,484 | ' |
Number of warrants exercised for cash | ' | ' | ' | ' | 6,222 | ' | 1,300 | ' | ' |
Proceeds from exercise of warrants for cash | $29 | $213 | ' | ' | ' | ' | $29 | ' | ' |
Proceeds from issuance of common stock, related to warrants exercise | ' | ' | ' | ' | $213 | ' | ' | ' | ' |
Number of warrants exercised on cashless basis | ' | ' | ' | ' | 22,456 | ' | ' | ' | ' |
Number of common shares called by warrants excercise | ' | ' | ' | ' | ' | 23,928 | ' | ' | ' |
Projected number of common shares, subject to issuance if the remaining warrants are excercised | ' | ' | ' | ' | ' | 107,623 | ' | ' | 21,712 |