Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 14, 2014 | |
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-Jun-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
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 | ' | 232,559,488 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $415 | $945 | $486 |
Accounts receivable, net of allowance of $32 at June 30, 2014 and $22 at December 31, 2013 | 228 | 410 | ' |
Prepaid expenses and other current assets | 28 | 57 | ' |
Total current assets | 671 | 1,412 | ' |
Property and equipment, net | 15 | 17 | ' |
Patents, net | 1,110 | 1,290 | ' |
Other assets | 29 | 29 | ' |
Total assets | 1,825 | 2,748 | ' |
Current liabilities: | ' | ' | ' |
Accounts payable | 165 | 327 | ' |
Accrued compensation | 300 | 315 | ' |
Other accrued liabilities | 259 | 232 | ' |
Deferred revenue | 470 | 490 | ' |
Total current liabilities | 1,194 | 1,364 | ' |
Deferred revenue long-term | 15 | 74 | ' |
Deferred rent | 61 | 86 | ' |
Derivative liability | 22 | 25 | ' |
Total liabilities | 1,292 | 1,549 | ' |
Commitments and Contingencies | ' | ' | ' |
Stockholders' deficit | ' | ' | ' |
Common Stock, $0.01 par value; 1,500,000 shares authorized; 232,560 issued and outstanding at June 30, 2014 December 31, 2013 | 2,390 | 2,390 | ' |
Treasury shares, 6,500 shares at June 30, 2014 and December 31, 2013 respectively | -325 | -325 | ' |
Additional paid in capital | 96,072 | 96,172 | ' |
Accumulated deficit | -121,410 | -119,184 | ' |
Accumulated other comprehensive loss | -14 | -14 | ' |
Total CIC stockholder's equity (deficit) | 1,069 | 1,735 | ' |
Non-Controlling interest | -536 | -536 | ' |
Total stockholders' equity (deficit) | 533 | 1,199 | -357 |
Total liabilities and shareholders' equity | 1,825 | 2,748 | ' |
Series A-1 Preferred Stock [Member] | ' | ' | ' |
Stockholders' deficit | ' | ' | ' |
Preferred stock by class of stock | 1,052 | 1,031 | 880 |
Total stockholders' equity (deficit) | 1,052 | 1,031 | 880 |
Series B Preferred Stock [Member] | ' | ' | ' |
Stockholders' deficit | ' | ' | ' |
Preferred stock by class of stock | 9,506 | 9,232 | 7,380 |
Total stockholders' equity (deficit) | 9,506 | 9,232 | 7,380 |
Series C Preferred Stock [Member] | ' | ' | ' |
Stockholders' deficit | ' | ' | ' |
Preferred stock by class of stock | 5,197 | 5,086 | 3,569 |
Total stockholders' equity (deficit) | 5,197 | 5,085 | 3,569 |
Series D-1 Preferred Stock [Member] | ' | ' | ' |
Stockholders' deficit | ' | ' | ' |
Preferred stock by class of stock | 3,693 | 3,345 | ' |
Total stockholders' equity (deficit) | 3,693 | 3,345 | ' |
Series D-2 Preferred Stock [Member] | ' | ' | ' |
Stockholders' deficit | ' | ' | ' |
Preferred stock by class of stock | 4,252 | 4,002 | ' |
Total stockholders' equity (deficit) | $4,252 | $4,002 | ' |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Accounts receivable, allowance | $32,000 | $22,000 |
Stockholders' deficit | ' | ' |
Common Stock, par value | $0.01 | $0.01 |
Common Stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common Stock, shares issued | 232,560,000 | 232,560,000 |
Common Stock, shares outstanding | 232,560,000 | 232,560,000 |
Treasury shares | 6,500,000 | 6,500,000 |
Series A-1 Preferred Stock [Member] | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 1,073,000 | 1,031,000 |
Preferred stock, shares outstanding | 1,073,000 | 1,031,000 |
Preferred stock, liquidation preference | 1,073,000 | ' |
Series B Preferred Stock [Member] | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 14,000,000 | 14,000,000 |
Preferred stock, shares issued | 11,660,000 | 11,102,000 |
Preferred stock, shares outstanding | 11,660,000 | 11,102,000 |
Preferred stock, liquidation preference | 17,490,000 | ' |
Series C Preferred Stock [Member] | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 9,000,000 | 9,000,000 |
Preferred stock, shares issued | 4,734,000 | 4,508,000 |
Preferred stock, shares outstanding | 4,734,000 | 4,508,000 |
Preferred stock, liquidation preference | 7,101,000 | ' |
Series D-1 Preferred Stock [Member] | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 6,000,000 | 6,000,000 |
Preferred stock, shares issued | 4,409,000 | 3,415,000 |
Preferred stock, shares outstanding | 4,409,000 | 3,415,000 |
Preferred stock, liquidation preference | 4,409,000 | ' |
Series D-2 Preferred Stock [Member] | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 9,000,000 | 9,000,000 |
Preferred stock, shares issued | 5,436,000 | 4,783,000 |
Preferred stock, shares outstanding | 5,436,000 | 4,783,000 |
Preferred stock, liquidation preference | $5,436,000 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Product | $278 | $93 | $406 | $164 |
Maintenance | 195 | 170 | 368 | 334 |
Total revenues | 473 | 263 | 774 | 498 |
Cost of sales: | ' | ' | ' | ' |
Product | 39 | 5 | 43 | 9 |
Maintenance | 38 | 76 | 92 | 150 |
Research and development | 532 | 580 | 1,072 | 1,092 |
Sales and marketing expense | 331 | 284 | 639 | 594 |
General and administrative expense | 454 | 496 | 914 | 1,092 |
Total operating costs and expenses | 1,394 | 1,441 | 2,760 | 2,937 |
Loss from operations | -921 | -1,178 | -1,986 | -2,439 |
Other income (expense), net | ' | -1 | 2 | -1 |
Interest Expense [Abstract] | ' | ' | ' | ' |
Related Party | ' | 3 | ' | 3 |
Other | 245 | ' | 245 | ' |
Gain (loss) on derivative liability | -1 | 1 | 3 | 65 |
Net loss | -1,167 | -1,181 | -2,226 | -2,378 |
Accretion of beneficial conversion feature, preferred shares: | ' | ' | ' | ' |
Related party | -13 | -107 | -86 | -140 |
Other | -12 | -159 | -313 | -181 |
Preferred stock dividends: | ' | ' | ' | ' |
Related party | -340 | -272 | -669 | -534 |
Other | -319 | -238 | -612 | -453 |
Income tax | ' | ' | ' | ' |
Net loss before non-controlling interest | -1,851 | -1,957 | -3,906 | -3,686 |
Net loss attributable to non-controlling interest | ' | ' | ' | ' |
Net loss attributable to common stockholders | ($1,851) | ($1,957) | ($3,906) | ($3,686) |
Basic and diluted loss per common share | ($0.01) | ($0.01) | ($0.02) | ($0.02) |
Weighted average common shares outstanding, basic and diluted | 232,560 | 225,824 | 232,560 | 225,803 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($2,226) | ($2,378) |
Adjustments to reconcile net loss to net cash used for operating activities: | ' | ' |
Depreciation and amortization | 185 | 191 |
Stock-based employee compensation | 177 | 429 |
Warrants cost issued as interest expense | 245 | ' |
Gain on derivative liability | -3 | -65 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | 182 | 540 |
Prepaid expenses and other assets | 29 | 51 |
Accounts payable | -162 | 128 |
Accrued Compensation | -15 | -36 |
Other accrued liabilities | 3 | 16 |
Deferred revenue | -79 | -130 |
Net cash used in operating activities | -1,664 | -1,254 |
Cash flows from investing activities: | ' | ' |
Acquisition of property and equipment | -4 | -5 |
Net cash used in investing activities | -4 | -5 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of short-term debt | ' | 250 |
Proceeds from exercise of warrants for cash | ' | 29 |
Proceeds from issuance of Series D preferred Stock, net of issuance costs of $51 | 1,138 | 1,150 |
Payments on short-term debt | ' | 250 |
Net cash provided by financing activities | 1,138 | 1,179 |
Effect of exchange rate changes on cash and cash equivalents | ' | ' |
Net decrease in cash and cash equivalents | -530 | -80 |
Cash and cash equivalents at beginning of period | 945 | 486 |
Cash and cash equivalents at end of period | 415 | 406 |
Supplemental disclosure of cash flow information: | ' | ' |
Interest paid | ' | 2 |
Income tax paid | ' | ' |
Non-cash financing and investing transactions: | ' | ' |
YTD Dividend Shares in Kind | 1,281 | 987 |
Accretion of beneficial conversion feature on issuance of Preferred Stock dividends | $399 | $321 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ' |
Stock issuance costs | $51 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Comprehensive income: | ' | ' | ' | ' |
Net loss | ($1,167) | ($1,181) | ($2,226) | ($2,378) |
Foreign currency translation adjustment | ' | ' | ' | 14 |
Total comprehensive loss | ($1,167) | ($1,181) | ($2,226) | ($2,364) |
Nature_of_business_basis_of_pr
Nature of business, basis of presentation and summary of significant accounting policies | 6 Months Ended |
Jun. 30, 2014 | |
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, 2013. | |
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 unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant cumulative losses since its inception and, at June 30, 2014, the Company's accumulated deficit was $121,410. The Company has primarily met its working capital needs through the sale of debt and equity securities. As of June 30, 2014, the Company's cash balance was $415. 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 unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
Reclassifications | |
Certain prior year amounts have been reclassified between Series C Preferred Stock, Series D-1 Preferred Stock, Series D-2 Preferred Stock and Additional paid in capital on the accompanying condensed consolidated balance sheet to properly reflect accretion of the beneficial conversion feature on certain issuances of the Company's Preferred Stock. These reclassifications do not impact the condensed consolidated statement of operations or the condensed consolidated statement of cash flows. | |
Accounting Changes and Recent Accounting Pronouncements | |
Accounting Standards Issued But Not Yet Adopted | |
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. |
Concentrations
Concentrations | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Risks and Uncertainties [Abstract] | ' | ||||||
Concentration Risk Disclosure [Text Block] | ' | ||||||
2. Concentrations | |||||||
The following table summarizes accounts receivable and revenue concentrations: | |||||||
Accounts Receivable | Total Revenue | Total Revenue | |||||
As of June 30, | for the three months | for the six months | |||||
ended June 30, | ended June 30, | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||
Customer #1 | - | 13% | - | - | - | - | |
Customer #2 | - | - | - | 14% | - | 14% | |
Customer #3 | 25% | 54% | - | - | - | - | |
Customer #4 | - | - | - | - | 11% | - | |
Customer #5 | 44% | - | 32% | - | 19% | - | |
Customer #6 | - | 14% | - | - | - | - | |
Customer #7 | - | - | - | 13% | - | 14% | |
Total concentration | 69% | 81% | 32% | 27% | 30% | 28% |
Patents
Patents | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||
Patents | ' | ||||
3. Patents | |||||
The Company performs intangible asset impairment analysis at least annually or whenever circumstances or events indicate such assets might be impaired. The Company would recognize an impairment charge in the event the net book value of such assets exceeded the future undiscounted cash flows attributable to such assets. | |||||
Management completed an analysis of the Company's patents as of December 31, 2013. 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 changed during the three and six months ended June 30, 2014 that would impact this conclusion. | |||||
Amortization of patent costs was $89 and $180 for the three and six-month periods ended June 30, 2014 and $91 and $183 for the three and six month periods ended June 30, 2013, respectively. | |||||
Intangible Assets | |||||
The following table summarizes intangible assets: | |||||
Amortizable intangible assets: | 30-Jun-14 | 31-Dec-13 | |||
Carrying | Accumulated | Carrying | Accumulative | ||
Amount | Amortization | Amount | Amortization | ||
Patents | $ | $ | $ | $ | |
6,746 | -5,636 | 6,745 | -5,455 |
Derivative_Liability
Derivative Liability | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Derivative liability [Abstract] | ' | ||||
Derivative liability | ' | ||||
4. Derivative liability | |||||
The Company has determined that a contract that would otherwise meet the definition of a derivative but is both (a) indexed to the Company's own stock and (b) classified in stockholders' equity in the statement of financial position would not be considered a derivative financial instrument. The Company applies a two-step model in determining whether a financial instrument or an embedded feature is indexed to an issuer's own stock and thus able to qualify for the scope exception. | |||||
The Company issued certain warrants in connection with financing transactions from 2010 through 2012 that require liability classification because of certain provisions that may have resulted in an adjustment to the number of shares issued upon settlement and an adjustment to their exercise price. The Company classifies these warrants on its balance sheet as a derivative liability which is fair valued at each reporting period subsequent to the initial issuance. The Company used a simulated probability valuation model to value these warrants. Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates (specifically, probabilities) used may cause the value to be higher or lower than that reported. The assumptions used in the model required significant judgment by management and include the following: volatility, expected term, risk-free interest rate, dividends, and warrant holders' expected rate of return, reset provisions based on expected future financings, projected stock prices, and probability of exercise. The estimated volatility of the Company's common stock at the date of issuance, and at each subsequent reporting period, is based on historical volatility. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the warrants at the valuation date. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. Dividends are estimated at 0% based on the Company's history of no common stock dividends. | |||||
The fair value of the outstanding derivative liabilities at June 30, 2014, and December 31, 2013, was $22 and $25, respectively. | |||||
Fair value measurements: | |||||
Assets and liabilities measured at fair value as of June 30, 2014 and December 31, 2013: | |||||
Value at | Quoted | Significant | Significant | ||
prices in | other | unobservable | |||
active | observable | inputs | |||
markets | inputs | ||||
(Level 1) | (Level 2) | (Level 3) | |||
30-Jun-14 | |||||
Derivative liability | $ | $ | $ | $ | |
22 | - | - | 22 | ||
31-Dec-13 | |||||
Derivative liability | $ | $ | $ | $ | |
25 | - | - | 25 | ||
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 June 30, 2014, and December 31, 2013, 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 six-month period ended June 30, 2014 are as follows: | |||||
Derivative Liability | |||||
Balance at January 1, 2014 | $ | ||||
25 | |||||
Gain on derivative liability | 3 | ||||
Balance at June 30, 2014 | $ | ||||
23 |
Net_loss_per_share
Net loss per share | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Net loss per share [Abstract] | ' | ||||
Net loss per share | ' | ||||
5. 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. | |||||
The following table lists shares and warrants that were excluded from the calculation of dilutive earnings per share as the exercise of such options and warrants and the conversion of such preferred shares would be anti-dilutive: | |||||
For the Six Months Ended | |||||
30-Jun-14 | 30-Jun-13 | ||||
Stock options | 71,987 | 70,472 | |||
Warrants | 105,230 | 135,359 | |||
Preferred shares as if converted | |||||
Series A-1Preferred Stock | 7,664 | 7,079 | |||
Series B Preferred Stock | 269,105 | 243,796 | |||
Series C Preferred Stock | 210,412 | 194,888 | |||
Series D-1 Preferred Stock | 195,956 | 62,818 | |||
Series D-2 Preferred Stock | 108,713 | 87,997 | |||
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 | Six Months Ended | ||||
June 30, | June 30, | June 30, | June 30, | ||
2014 | 2013 | 2014 | 2013 | ||
Numerator-basic and diluted net loss | $ | $ | $ | $ | |
-1,851 | -1,957 | -3,906 | -3,686 | ||
Denominator-basic or diluted | 232,560 | 225,824 | 232,560 | 225,803 | |
weighted average number of common | |||||
shares outstanding | |||||
Net loss per share - basic and diluted | $ | $ | $ | $ | |
-0.01 | -0.01 | -0.02 | -0.02 |
Line_of_credit
Line of credit | 6 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
6. Line of Credit | |
On May 6, 2014, the Company entered into a $2 million Credit Agreement with Venture Champion Asia Limited, an affiliate of ICG Global Limited (the "Lender"). Under the terms of the Credit Agreement, for a period of 18 months, the Company is permitted to borrow up to $2 million in unsecured indebtedness from the Lender. Each draw is subject to a 15% original issue discount, so that borrowing the full $2 million would result in an aggregate of $2.352 million in debt with fifty percent (50%) warrant coverage and also may be converted at the Lender's option into shares of the Company's Common Stock at an initial conversion price of $0.0275 per share. | |
In connection with the Company's entry into the Credit Agreement, the Company issued to the Lender 10,909 warrants to purchase 10,909 shares of Common Stock. The warrants have a three year life and an exercise price of $0.0275 per share. The Company ascribed a value of $245 using the Black Scholes Pricing Model. The warrants valuation was charged to interest expense at June 30, 2014 (See Note 7). |
Equity
Equity | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
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 Black Scholes valuation model. | |||||||||
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 three months ended June 30, 2014 and 2013, was approximately 9.85% and 9.73%, 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: | |||||||||
Six Months Ended | Six Months Ended | ||||||||
30-Jun-14 | 30-Jun-13 | ||||||||
Risk free interest rate | 0.04% - 4.89% | 0.39% - 5.11% | |||||||
Expected life (years) | 3.26 - 7.00 | 2.82 - 7.00 | |||||||
Expected volatility | 91.99% - 198.38% | 91.99% - 198.38% | |||||||
Expected dividends | None | None | |||||||
The Company granted 2,500 stock options during the three and six months ended June 30, 2014. There were no stock options exercised during the three and six months ended June 30, 2014. | |||||||||
The Company granted 26,554 stock options during the three and six months ended June 30, 2013. There were no stock options exercised during the three and six months ended June 30, 2013. | |||||||||
The following table summarizes the allocation of stock-based compensation expense related to stock option grants for the three and six months ended June 30, 2014 and 2013. | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Research and development | $ | $ | $ | $ | |||||
21 | 49 | 48 | 245 | ||||||
Sales and marketing | 24 | 17 | 37 | 117 | |||||
General and administrative | 37 | 100 | 83 | 42 | |||||
Director options | 4 | 10 | 9 | 25 | |||||
Stock-based compensation | $ | $ | $ | $ | |||||
expense | 86 | 176 | 177 | 429 | |||||
A summary of option activity under the Company's plans as of June 30, 2014 and 2013 is as follows: | |||||||||
Options | 2014 | 2013 | |||||||
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 | 69,537 | $ | $ | 44,529 | $ | $ | |||
at January 1, | 0.05 | - | 0.05 | 2,230 | |||||
Granted | 2,500 | $ | $ | 26,554 | $ | $ | |||
0.03 | 7 | 0.04 | 1,188 | ||||||
Exercised | - | $ | $ | - | $ | $ | |||
- | - | - | - | ||||||
Forfeited or | -50 | $ | $ | -610 | $ | $ | |||
expired | 0.22 | - | 0.14 | -85 | |||||
Outstanding | 71,987 | $ | 4.6 | $ | 70,473 | $ | 5.51 | $ | |
at June 30 | 0.05 | 7 | 0.05 | 3,333 | |||||
Vested and | 46,864 | $ | 4.24 | $ | 63,615 | $ | 5.51 | $ | |
expected to | 0.05 | - | 0.05 | 3,009 | |||||
vest at June | |||||||||
30 | |||||||||
Exercisable at | 51,984 | $ | 4.24 | $ | 33,083 | $ | 4.94 | $ | |
30-Jun | 0.05 | - | 0.05 | 1,638 | |||||
The following table identifies the range of outstanding and exercisable options as of June 30, 2014: | |||||||||
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 | 71,987 | 4.6 | $ | 51,984 | $ | ||||
0.05 | 0.05 | ||||||||
A summary of the status of the Company's non-vested shares as of June 30, 2014, is as follows: | |||||||||
Nonvested Shares | Shares | Weighted Average | |||||||
Grant-Date | |||||||||
Fair Value | |||||||||
Non-vested at January 1, 2014 | 26,158 | $ | |||||||
0.04 | |||||||||
Granted | 2,500 | $ | |||||||
0.03 | |||||||||
Forfeited | - | $ | |||||||
- | |||||||||
Vested | -8,655 | $ | |||||||
0.04 | |||||||||
Non-vested at June 30, 2014 | 20,032 | $ | |||||||
0.04 | |||||||||
As of June 30, 2014, there was a total of $317 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 2.8 years. | |||||||||
Preferred Shares | |||||||||
Information with respect to the class of Preferred Stock at June 30, 2014 is as follows: | |||||||||
Class of | 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 | 8% | Quarterly in | $ | $ | 41 | 1,073 | 7,664 | ||
Arrears | 1 | 0.14 | |||||||
Series B | 10% | Quarterly in | $ | $ | 558 | 11,660 | 269,105 | ||
Arrears | 1.5 | 0.0433 | |||||||
Series C | 10% | Quarterly in | $ | $ | 226 | 4,734 | 210,412 | ||
Arrears | 1.5 | 0.0225 | |||||||
Series D-1 | 10% | Quarterly in | $ | $ | 201 | 4,409 | 195,956 | ||
Arrears | 1 | 0.0225 | |||||||
Series D-2 | 10% | Quarterly in | $ | $ | 255 | 5,436 | 108,713 | ||
Arrears | 1 | 0.05 | |||||||
Information with respect to dividends issued on the Company's Preferred stock for the three and six month periods ended June 30, 2014 and June 30, 2013 is as follows: | |||||||||
Dividends | Beneficial Conversion Feature Related to dividends | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||
Series A-1 | $ | $ | $ | $ | $ | $ | $ | $ | |
21 | 19 | 41 | 37 | - | - | - | - | ||
Series B | $ | $ | $ | $ | $ | $ | $ | $ | |
284 | 257 | 558 | 504 | - | - | - | - | ||
Series C | $ | $ | $ | $ | $ | $ | $ | $ | |
115 | 107 | 226 | 210 | 13 | 83 | 50 | 126 | ||
Series D-1 | $ | $ | $ | $ | $ | $ | $ | $ | |
107 | 31 | 201 | 59 | 12 | 183 | 297 | 195 | ||
Series D-2 | $ | $ | $ | $ | $ | $ | $ | $ | |
132 | 96 | 255 | 177 | - | - | 52 | - | ||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |
659 | 510 | 1,281 | 987 | 25 | 266 | 399 | 321 | ||
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 | |||||||||
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 | |||||||||
The shares of Series C Preferred Stock are convertible into Common Stock at any time and are subordinate to the Series D Preferred Stock. | |||||||||
Series D Preferred Stock | |||||||||
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. | |||||||||
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 private placement provided $1,150 in proceeds to the Company. | |||||||||
On December 31, 2013, the Company converted approximately $1,179 of short-term debt plus accrued interest into 786 shares of Series D-1 Preferred Stock and 393 shares of Series D-2 Preferred Stock. The investors can receive up to one hundred percent (100%) warrant coverage. These warrants are immediately exercisable and expire three (3) years from the date of issuance. See the warrant table below for more detail. The warrants are exercisable in whole or in part and contain a cashless exercise provision. | |||||||||
On December 31, 2013, the Company sold for $870 in cash, net of $40 administrative fee paid to SG Phoenix, 607 Shares of Series D-1 preferred Stock and 303 shares of Series D-2 Preferred Stock. The investors can receive up to one hundred percent (100%) warrant coverage. These warrants are immediately exercisable and expire three (3) years from the date of issuance. See the warrant table below for more detail. The warrants are exercisable in whole or in part and contain a cashless exercise provision. | |||||||||
In connection with the December 31, 2013, offering, the Company adjusted the number of shares of Series D-1 Preferred Stock and Series D-2 Preferred Stock issued to investors in the May 2013 offering described above, in order to give such investors shares of Series D-1 Preferred Stock and Series D-2 Preferred Stock in the same ratio as offered to Investors in the December 31, 2013, offering. This resulted in an exchange of 537 shares of Series D-2 Preferred into Series D-1 Preferred. The Company also issued warrants to purchase Common Stock in the same manner as offered to investors in the December 31, 2013, offering. | |||||||||
On February 7, 2014, the Company sold for $733 in cash, net of $47 administrative fee paid in cash to SG Phoenix and a nonrelated third party, 520 Shares of Series D-1 preferred Stock and 260 shares of Series D-2 Preferred Stock. The investors can receive up to one hundred percent (100%) warrant coverage. These warrants are immediately exercisable and expire December 31, 2016. See the warrant table below for more detail. The warrants are exercisable in whole or in part and contain a cashless exercise provision. | |||||||||
On March 6, 2014, the Company sold for $406 in cash, net of $4 in administrative fees paid in cash to an unrelated third party, 273 Shares of Series D-1 preferred Stock and 137 shares of Series D-2 Preferred Stock. The investors can receive up to one hundred percent (100%) warrant coverage. These warrants are immediately exercisable and expire December 31, 2016. See the warrant table below for more detail. The warrants are exercisable in whole or in part and contain a cashless exercise provision. | |||||||||
SG Phoenix received warrants to purchase 3,000 shares of Common stock, and two unrelated parties received warrants to purchase an aggregate of 1,600 shares of Common Stock in payment of administrative and finder's fees associated with the financings, in addition to the cash payments discussed above. These warrants are immediately exercisable and expire three (3) years from the date of issuance. The warrants are exercisable in whole or in part and contain a cashless exercise provision. | |||||||||
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 | |||||||||
A summary of the warrant activity is as follows: | |||||||||
30-Jun-14 | 30-Jun-13 | ||||||||
Warrants | Weighted | Warrants | Weighted | ||||||
Average | Average | ||||||||
Exercise Price | Exercise Price | ||||||||
Outstanding at beginning of period | 77,155 | $ | 151,722 | $ | |||||
0.0289 | 0.0269 | ||||||||
Issued | 72,589 | $ | - | $ | |||||
0.0275 | - | ||||||||
Exercised | - | $ | -1,300 | $ | |||||
- | 0.0225 | ||||||||
Expired | -4,333 | $ | -15,063 | $ | |||||
0.0225 | 0.0343 | ||||||||
Outstanding at end of period | 145,411 | $ | 135,359 | $ | |||||
0.0289 | 0.0252 | ||||||||
Exercisable at end of period | 145,411 | $ | 135,359 | $ | |||||
0.0289 | 0.0252 | ||||||||
A summary of the status of the warrants outstanding and exercisable as of June 30, 2014, is as follows: | |||||||||
Number of Warrants | Weighted Average | Weighted Average | |||||||
Remaining Life | Exercise Price per | ||||||||
share | |||||||||
13,069 | 0.22 | $ | |||||||
0.0225 | |||||||||
123,699 | 2.28 | $ | |||||||
0.0275 | |||||||||
8,643 | 1.06 | $ | |||||||
0.05 | |||||||||
145,411 | 2.14 | $ | |||||||
0.0289 | |||||||||
On May 6, 2014, the Company entered into a $2 million Credit Agreement with Venture Champion Asia Limited, an affiliate of ICG Global Limited (the "Lender"). In connection with the Company's entry into the Credit Agreement, the Company issued the Lender a warrant to purchase approximately 10,909 shares of Common Stock. The warrant has a three year life and is exercisable at $0.0275 per share. The Company ascribed a value of $245, booked as interest expense, to the warrant using the Black Scholes Pricing Model, (See Note 6). | |||||||||
Contingent warrants | |||||||||
Investors that received warrants in connection with the Company's financing transaction in closings that occurred on December 13, 2013, February 7, 2014 and March 6, 2014, may receive additional warrants to purchase up to an aggregate of 120,782 shares of Common Stock, if the Company does not achieve certain revenue targets in the first three quarters of 2014. The Company ascribed a value of $566 to the warrants issued at closing, including the contingent warrants, using a Black Sholes valuation model. The Company also recorded a beneficial conversion feature of $305 related to the shares of Series D Preferred Stock issued in the February 7, 2014 and March 6, 2014 closing, based on the accounting conversion price of the shares of Series D Preferred Stock issued in those closings. | |||||||||
On May 14, 2014 the Company issued 40,262 contingent warrants in connection with the Company's financing transactions referenced above as a result of the Company not achieving its revenue targets in the first quarter ending March 31, 2014. | |||||||||
Since the Company did not achieve the revenue target for the three-month periods ended June 30, 2014, the Company will issue warrants to purchase 40,262 shares of common stock promptly after filing of this Form 10-Q. | |||||||||
At June 30, 2014, 145,411 shares of common stock were reserved for issuance upon exercise of outstanding warrants. |
Subsequent_event
Subsequent event | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Event [Abstract] | ' |
Subsequent event | ' |
8. Subsequent Event - Financing | |
On August 5, 2014, the Company entered into subscription agreements with certain investors, under which the Company issued an aggregate of 1,120 shares of Series D-1 Preferred Stock at a purchase price of $1.00 per share for an aggregate purchase price of $1,120. The shares of Series D-1 Preferred Stock have a dividend rate of 10% and are convertible into shares of Common Stock at an initial conversion price of $0.0225 per share (subject to adjustment). The Company paid an administrative fee of $50 to SG Phoenix associated with this financing. |
Nature_of_business_basis_of_pr1
Nature of business, basis of presentation and summary of significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
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. | |
Going concern and management plans | ' |
Going Concern | |
The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant cumulative losses since its inception and, at June 30, 2014, the Company's accumulated deficit was $121,410. The Company has primarily met its working capital needs through the sale of debt and equity securities. As of June 30, 2014, the Company's cash balance was $415. 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 unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
Reclassifications | ' |
Reclassifications | |
Certain prior year amounts have been reclassified between Series C Preferred Stock, Series D-1 Preferred Stock, Series D-2 Preferred Stock and Additional paid in capital on the accompanying condensed consolidated balance sheet to properly reflect accretion of the beneficial conversion feature on certain issuances of the Company's Preferred Stock. These reclassifications do not impact the condensed consolidated statement of operations or the condensed consolidated statement of cash flows. | |
Recently issued accounting pronouncement | ' |
Accounting Changes and Recent Accounting Pronouncements | |
Accounting Standards Issued But Not Yet Adopted | |
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. | |
Patents | ' |
The Company performs intangible asset impairment analysis at least annually or whenever circumstances or events indicate such assets might be impaired. The Company would recognize an impairment charge in the event the net book value of such assets exceeded the future undiscounted cash flows attributable to such assets. | |
Derivatives policy | ' |
The Company has determined that a contract that would otherwise meet the definition of a derivative but is both (a) indexed to the Company's own stock and (b) classified in stockholders' equity in the statement of financial position would not be considered a derivative financial instrument. The Company applies a two-step model in determining whether a financial instrument or an embedded feature is indexed to an issuer's own stock and thus able to qualify for the scope exception. | |
Fair Value of Financial Instruments | ' |
The Company issued certain warrants in connection with financing transactions from 2010 through 2012 that require liability classification because of certain provisions that may have resulted in an adjustment to the number of shares issued upon settlement and an adjustment to their exercise price. The Company classifies these warrants on its balance sheet as a derivative liability which is fair valued at each reporting period subsequent to the initial issuance. The Company used a simulated probability valuation model to value these warrants. Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates (specifically, probabilities) used may cause the value to be higher or lower than that reported. The assumptions used in the model required significant judgment by management and include the following: volatility, expected term, risk-free interest rate, dividends, and warrant holders' expected rate of return, reset provisions based on expected future financings, projected stock prices, and probability of exercise. The estimated volatility of the Company's common stock at the date of issuance, and at each subsequent reporting period, is based on historical volatility. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the warrants at the valuation date. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. Dividends are estimated at 0% based on the Company's history of no common stock dividends. | |
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 payment | ' |
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 Black Scholes valuation model. | |
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. |
Concentration_Tables
Concentration (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Risks and Uncertainties [Abstract] | ' | ||||||
Schedule of accounts receivable and revenue concentration | ' | ||||||
The following table summarizes accounts receivable and revenue concentrations: | |||||||
Accounts Receivable | Total Revenue | Total Revenue | |||||
As of June 30, | for the three months | for the six months | |||||
ended June 30, | ended June 30, | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||
Customer #1 | - | 13% | - | - | - | - | |
Customer #2 | - | - | - | 14% | - | 14% | |
Customer #3 | 25% | 54% | - | - | - | - | |
Customer #4 | - | - | - | - | 11% | - | |
Customer #5 | 44% | - | 32% | - | 19% | - | |
Customer #6 | - | 14% | - | - | - | - | |
Customer #7 | - | - | - | 13% | - | 14% | |
Total concentration | 69% | 81% | 32% | 27% | 30% | 28% |
Patents_Tables
Patents (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||
Summary of Intangible Assets | ' | ||||
The following table summarizes intangible assets: | |||||
Amortizable intangible assets: | 30-Jun-14 | 31-Dec-13 | |||
Carrying | Accumulated | Carrying | Accumulative | ||
Amount | Amortization | Amount | Amortization | ||
Patents | $ | $ | $ | $ | |
6,746 | -5,636 | 6,745 | -5,455 |
Derivative_Liability_Tables
Derivative Liability (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Derivative liability [Abstract] | ' | ||||
Liabilities measured at fair value | ' | ||||
Assets and liabilities measured at fair value as of June 30, 2014 and December 31, 2013: | |||||
Value at | Quoted | Significant | Significant | ||
prices in | other | unobservable | |||
active | observable | inputs | |||
markets | inputs | ||||
(Level 1) | (Level 2) | (Level 3) | |||
30-Jun-14 | |||||
Derivative liability | $ | $ | $ | $ | |
22 | - | - | 22 | ||
31-Dec-13 | |||||
Derivative liability | $ | $ | $ | $ | |
25 | - | - | 25 | ||
Changes in the market value of the Level 3 derivative liability | ' | ||||
Changes in the fair market value of the Level 3 derivative liability for the six-month period ended June 30, 2014 are as follows: | |||||
Derivative Liability | |||||
Balance at January 1, 2014 | $ | ||||
25 | |||||
Gain on derivative liability | 3 | ||||
Balance at June 30, 2014 | $ | ||||
23 |
Net_loss_per_share_Tables
Net loss per share (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Net loss per share [Abstract] | ' | ||||
Schedule of Antidilutive Securities Excluded from Calculation of Earnings Per Share | ' | ||||
The following table lists shares and warrants that were excluded from the calculation of dilutive earnings per share as the exercise of such options and warrants and the conversion of such preferred shares would be anti-dilutive: | |||||
For the Six Months Ended | |||||
30-Jun-14 | 30-Jun-13 | ||||
Stock options | 71,987 | 70,472 | |||
Warrants | 105,230 | 135,359 | |||
Preferred shares as if converted | |||||
Series A-1Preferred Stock | 7,664 | 7,079 | |||
Series B Preferred Stock | 269,105 | 243,796 | |||
Series C Preferred Stock | 210,412 | 194,888 | |||
Series D-1 Preferred Stock | 195,956 | 62,818 | |||
Series D-2 Preferred Stock | 108,713 | 87,997 | |||
Reconciliation of the numerator (net loss) and the denominator (number of shares) used in the basic and diluted EPS calculations | ' | ||||
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 | Six Months Ended | ||||
June 30, | June 30, | June 30, | June 30, | ||
2014 | 2013 | 2014 | 2013 | ||
Numerator-basic and diluted net loss | $ | $ | $ | $ | |
-1,851 | -1,957 | -3,906 | -3,686 | ||
Denominator-basic or diluted | 232,560 | 225,824 | 232,560 | 225,803 | |
weighted average number of common | |||||
shares outstanding | |||||
Net loss per share - basic and diluted | $ | $ | $ | $ | |
-0.01 | -0.01 | -0.02 | -0.02 |
Equity_Tables
Equity (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Stockholders' Equity [Abstract] | ' | ||||||||
Key assumptions for fair value calculation, stock options | ' | ||||||||
The fair value calculations are based on the following assumptions: | |||||||||
Six Months Ended | Six Months Ended | ||||||||
30-Jun-14 | 30-Jun-13 | ||||||||
Risk free interest rate | 0.04% - 4.89% | 0.39% - 5.11% | |||||||
Expected life (years) | 3.26 - 7.00 | 2.82 - 7.00 | |||||||
Expected volatility | 91.99% - 198.38% | 91.99% - 198.38% | |||||||
Expected dividends | None | None | |||||||
Allocation of stock-based compensation expense related to stock option grants | ' | ||||||||
The following table summarizes the allocation of stock-based compensation expense related to stock option grants for the three and six months ended June 30, 2014 and 2013. | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Research and development | $ | $ | $ | $ | |||||
21 | 49 | 48 | 245 | ||||||
Sales and marketing | 24 | 17 | 37 | 117 | |||||
General and administrative | 37 | 100 | 83 | 42 | |||||
Director options | 4 | 10 | 9 | 25 | |||||
Stock-based compensation | $ | $ | $ | $ | |||||
expense | 86 | 176 | 177 | 429 | |||||
Summary of option activity | ' | ||||||||
A summary of option activity under the Company's plans as of June 30, 2014 and 2013 is as follows: | |||||||||
Options | 2014 | 2013 | |||||||
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 | 69,537 | $ | $ | 44,529 | $ | $ | |||
at January 1, | 0.05 | - | 0.05 | 2,230 | |||||
Granted | 2,500 | $ | $ | 26,554 | $ | $ | |||
0.03 | 7 | 0.04 | 1,188 | ||||||
Exercised | - | $ | $ | - | $ | $ | |||
- | - | - | - | ||||||
Forfeited or | -50 | $ | $ | -610 | $ | $ | |||
expired | 0.22 | - | 0.14 | -85 | |||||
Outstanding | 71,987 | $ | 4.6 | $ | 70,473 | $ | 5.51 | $ | |
at June 30 | 0.05 | 7 | 0.05 | 3,333 | |||||
Vested and | 46,864 | $ | 4.24 | $ | 63,615 | $ | 5.51 | $ | |
expected to | 0.05 | - | 0.05 | 3,009 | |||||
vest at June | |||||||||
30 | |||||||||
Exercisable at | 51,984 | $ | 4.24 | $ | 33,083 | $ | 4.94 | $ | |
30-Jun | 0.05 | - | 0.05 | 1,638 | |||||
Summary of the significant ranges of outstanding and exercisable options | ' | ||||||||
The following table identifies the range of outstanding and exercisable options as of June 30, 2014: | |||||||||
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 | 71,987 | 4.6 | $ | 51,984 | $ | ||||
0.05 | 0.05 | ||||||||
Summary of the status of the Company's non-vested shares | ' | ||||||||
A summary of the status of the Company's non-vested shares as of June 30, 2014, is as follows: | |||||||||
Nonvested Shares | Shares | Weighted Average | |||||||
Grant-Date | |||||||||
Fair Value | |||||||||
Non-vested at January 1, 2014 | 26,158 | $ | |||||||
0.04 | |||||||||
Granted | 2,500 | $ | |||||||
0.03 | |||||||||
Forfeited | - | $ | |||||||
- | |||||||||
Vested | -8,655 | $ | |||||||
0.04 | |||||||||
Non-vested at June 30, 2014 | 20,032 | $ | |||||||
0.04 | |||||||||
Information with respect to the classes of Preferred Stock | ' | ||||||||
Information with respect to the class of Preferred Stock at June 30, 2014 is as follows: | |||||||||
Class of | 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 | 8% | Quarterly in | $ | $ | 41 | 1,073 | 7,664 | ||
Arrears | 1 | 0.14 | |||||||
Series B | 10% | Quarterly in | $ | $ | 558 | 11,660 | 269,105 | ||
Arrears | 1.5 | 0.0433 | |||||||
Series C | 10% | Quarterly in | $ | $ | 226 | 4,734 | 210,412 | ||
Arrears | 1.5 | 0.0225 | |||||||
Series D-1 | 10% | Quarterly in | $ | $ | 201 | 4,409 | 195,956 | ||
Arrears | 1 | 0.0225 | |||||||
Series D-2 | 10% | Quarterly in | $ | $ | 255 | 5,436 | 108,713 | ||
Arrears | 1 | 0.05 | |||||||
Information with respect to dividends issued on the Company's preferred stock | ' | ||||||||
Information with respect to dividends issued on the Company's Preferred stock for the three and six month periods ended June 30, 2014 and June 30, 2013 is as follows: | |||||||||
Dividends | Beneficial Conversion Feature Related to dividends | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||
Series A-1 | $ | $ | $ | $ | $ | $ | $ | $ | |
21 | 19 | 41 | 37 | - | - | - | - | ||
Series B | $ | $ | $ | $ | $ | $ | $ | $ | |
284 | 257 | 558 | 504 | - | - | - | - | ||
Series C | $ | $ | $ | $ | $ | $ | $ | $ | |
115 | 107 | 226 | 210 | 13 | 83 | 50 | 126 | ||
Series D-1 | $ | $ | $ | $ | $ | $ | $ | $ | |
107 | 31 | 201 | 59 | 12 | 183 | 297 | 195 | ||
Series D-2 | $ | $ | $ | $ | $ | $ | $ | $ | |
132 | 96 | 255 | 177 | - | - | 52 | - | ||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |
659 | 510 | 1,281 | 987 | 25 | 266 | 399 | 321 | ||
Summary of the warrants issued | ' | ||||||||
A summary of the warrant activity is as follows: | |||||||||
30-Jun-14 | 30-Jun-13 | ||||||||
Warrants | Weighted | Warrants | Weighted | ||||||
Average | Average | ||||||||
Exercise Price | Exercise Price | ||||||||
Outstanding at beginning of period | 77,155 | $ | 151,722 | $ | |||||
0.0289 | 0.0269 | ||||||||
Issued | 72,589 | $ | - | $ | |||||
0.0275 | - | ||||||||
Exercised | - | $ | -1,300 | $ | |||||
- | 0.0225 | ||||||||
Expired | -4,333 | $ | -15,063 | $ | |||||
0.0225 | 0.0343 | ||||||||
Outstanding at end of period | 145,411 | $ | 135,359 | $ | |||||
0.0289 | 0.0252 | ||||||||
Exercisable at end of period | 145,411 | $ | 135,359 | $ | |||||
0.0289 | 0.0252 | ||||||||
Status of the warrants outstanding | ' | ||||||||
A summary of the status of the warrants outstanding and exercisable as of June 30, 2014, is as follows: | |||||||||
Number of Warrants | Weighted Average | Weighted Average | |||||||
Remaining Life | Exercise Price per | ||||||||
share | |||||||||
13,069 | 0.22 | $ | |||||||
0.0225 | |||||||||
123,699 | 2.28 | $ | |||||||
0.0275 | |||||||||
8,643 | 1.06 | $ | |||||||
0.05 | |||||||||
145,411 | 2.14 | $ | |||||||
0.0289 |
Nature_of_business_basis_of_pr2
Nature of business, basis of presentation and summary of significant accounting policies (Details Textual) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | $415 | $945 | $406 | $486 |
Accumulated deficit | ($121,410) | ($119,184) | ' | ' |
Concentrations_Details
Concentrations (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accounts Receivable [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | 69.00% | ' |
Accounts Receivable [Member] | Customer One [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | ' | 13.00% |
Accounts Receivable [Member] | Customer Three [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | 25.00% | 54.00% |
Accounts Receivable [Member] | Customer Five [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | 44.00% | ' |
Accounts Receivable [Member] | Customer Six [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | ' | 14.00% |
Sales Revenue, Services, Net [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | 32.00% | 27.00% | 30.00% | 28.00% |
Sales Revenue, Services, Net [Member] | Customer Two[Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | ' | 14.00% | ' | 14.00% |
Sales Revenue, Services, Net [Member] | Customer Four [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | 11.00% | ' |
Sales Revenue, Services, Net [Member] | Customer Five [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | 32.00% | ' | 19.00% | ' |
Sales Revenue, Services, Net [Member] | Customer Seven [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | ' | 13.00% | ' | 14.00% |
Patents_Details
Patents (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortizable intangible assets | ' | ' |
Finite-lived intangible assets, gross | $6,746 | $6,745 |
Finite-Lived intangible assets, accumulated amortization | ($5,636) | ($5,455) |
Patents_Details_Textual
Patents (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Patent amortization expense | $89 | $91 | $180 | $183 |
Patents impairment | $0 | $0 | $0 | $0 |
Derivative_liability_Details
Derivative liability (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities measured at fair value | ' | ' |
Derivative liability | $22 | $25 |
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 | $22 | $25 |
Derivative_liability_Details_1
Derivative liability (Details 1) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' |
Balance at beginning of period | $25 |
Gain on derivative liability | 3 |
Balance at end of period | $22 |
Derivative_Liability_Details_T
Derivative Liability (Details Textual) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Derivative Liability, Fair Value, Net [Abstract] | ' | ' |
Fair value of the derivative liability | $22 | $25 |
Annual Dividend | 0.00% | ' |
Net_loss_per_share_Details
Net loss per share (Details) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Series A Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, shares | 7,664 | 7,079 |
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 | 269,105 | 243,796 |
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 | 210,411 | 194,888 |
Series D One Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, shares | 195,955 | 62,818 |
Series D Two Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, shares | 108,713 | 87,997 |
Stock Options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, shares | 71,987 | 70,472 |
Warrants [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, shares | 105,230 | 135,359 |
Net_loss_per_share_Details_1
Net loss per share (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share Reconciliation [Abstract] | ' | ' | ' | ' |
Numerator - basic and diluted net loss | ($1,851) | ($1,957) | ($3,906) | ($3,686) |
Weighted average common shares outstanding, basic and diluted | 232,560 | 225,824 | 232,560 | 225,803 |
Net loss per share - bacis and diluted | ($0.01) | ($0.01) | ($0.02) | ($0.02) |
Line_of_credit_Details_Textual
Line of credit (Details Textual) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | 6-May-14 |
In Thousands, except Per Share data, unless otherwise specified | Venture Champion Asia Limited [Member] | Venture Champion Asia Limited [Member] | Venture Champion Asia Limited [Member] | ||||
Credit Agreement Warrant [Member] | Credit Agreement Warrant [Member] | ||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Line of cerdit, initiation day | ' | ' | ' | ' | 6-May-14 | ' | ' |
Line of credit facility, description | ' | ' | ' | ' | 'Credit Agreement | ' | ' |
Line of credit facility, unsecured indebtedness, current amount | ' | ' | ' | ' | $2,000 | ' | ' |
Line of credit facility, unsecured indebtedness, maximum amount | ' | ' | ' | ' | 2,352 | ' | ' |
Line of credit facility period | ' | ' | ' | ' | '18 months | ' | ' |
Original issue discount, percentage | ' | ' | ' | ' | 15.00% | ' | ' |
Number of common shares callable by warrants | ' | ' | ' | ' | 10,909 | ' | ' |
Warrant coverage, maximum percentage | ' | ' | ' | ' | 50.00% | ' | ' |
Exercise price | $0.03 | $0.03 | $0.03 | $0.03 | $0.03 | ' | ' |
Expected term | ' | ' | ' | ' | ' | '3 years | ' |
Initial fair value of warrants | ' | ' | ' | ' | ' | ' | 245 |
Fair value of warrants booked as interest expense at period end | ' | ' | ' | ' | ' | $245 | ' |
Equity_Details
Equity (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ' | ' |
Risk-free interest rate, minimum | 0.04% | 0.39% |
Risk-free interest rate, maximum | 4.89% | 5.11% |
Expected volatility, minimum | 91.99% | 91.99% |
Expected volatility, maximum | 198.38% | 198.38% |
Expected dividend yield | $0 | $0 |
Minimum [Member] | ' | ' |
Fair value assumptions, stock options | ' | ' |
Expected life | '3 years 3 months 4 days | '2 years 9 months 18 days |
Maximum [Member] | ' | ' |
Fair value assumptions, stock options | ' | ' |
Expected life | '7 years | '7 years |
Equity_Details_1
Equity (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $86 | $176 | $177 | $429 |
Research and Development Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 21 | 49 | 48 | 245 |
Selling and Marketing Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 24 | 17 | 37 | 117 |
General and Administrative Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 37 | 100 | 83 | 42 |
Director Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $4 | $10 | $9 | $25 |
Equity_Details_2
Equity (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Summary of stock options outstanding | ' | ' | ' | ' |
Stock Options Outstanding, Beginning Balance | ' | ' | 69,537 | 44,529 |
Stock Options, Granted | 2,500 | 26,554 | 2,500 | 26,554 |
Stock Options, Exercised | 0 | 0 | 0 | 0 |
Stock Options, Forfeited, or expired | ' | ' | -50 | -610 |
Stock Options Outstanding, Ending Balance | 71,987 | 70,473 | 71,987 | 70,473 |
Stock Options, Vested and expected to vest at ending balance | 46,864 | 63,615 | 46,864 | 63,615 |
Options exercisable | 51,984 | 33,083 | 51,984 | 33,083 |
Weighted Average Exercise Price, Beginning Period | ' | ' | $0.05 | $0.05 |
Weighted Average Exercise Price, Granted | ' | ' | $0.03 | $0.04 |
Weighted Average Exercise Price, Exercised | ' | ' | ' | ' |
Weighted Average Exercise Price, Forfeited, or expired | ' | ' | $0.22 | $0.14 |
Weighted Average Exercise Price, Ending Period | $0.05 | $0.05 | $0.05 | $0.05 |
Weighted Average Exercise Price, Vested and expected to vest at ending balance | $0.05 | $0.05 | $0.05 | $0.05 |
Weighted Average Exercise Price, Exercisable at ending balance | $0.05 | $0.05 | $0.05 | $0.05 |
Weighted Average Remaining Contractual Term, ending balance | ' | ' | '4 years 7 months 1 day | '5 years 6 months 4 days |
Weighted Average Remaining Contractual Term, vested and expected to vest at ending balance | ' | ' | '4 years 2 months 27 days | '5 years 6 months 4 days |
Weighted Average Remaining Contractual Term, excercisable at ending balance | ' | ' | '4 years 2 months 27 days | '4 years 9 months 1 day |
Aggregate Intrinsic Value, Beginning Balance | ' | ' | ' | $2,230 |
Aggregate Intrinsic Value, Granted | ' | ' | 7 | 1,188 |
Aggregate Intrinsic Value, Exercised | ' | ' | ' | ' |
Aggregate Intrinsic Value, Forfeited or expired | ' | ' | ' | 85 |
Aggregate Intrinsic Value, Ending Balance | 7 | 3,333 | 7 | 3,333 |
Aggregate Intrinsic Value, Vested and expected to vest at ending balance | ' | 3,009 | ' | 3,009 |
Aggregate Intrinsic Value, Exercisable at ending balance | ' | $1,638 | ' | $1,638 |
Equity_Details_3
Equity (Details 3) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 |
In Thousands, except Per Share data, unless otherwise specified | 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 | ' | ' | 71,987 |
Outstanding Options, Weighted Average Remaining Contractual Term | ' | ' | '4 years 7 months 1 day |
Outstanding Options, Weighted Average Exercise Price | $0.03 | $0.04 | $0.05 |
Exercise Price Range, Number of Exercisable Options | ' | ' | 51,984 |
Exercisable Options, Weighted Average Exercise Price | ' | ' | $0.05 |
Equity_Details_4
Equity (Details 4) (USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Equity Instruments, Options, Nonvested Shares Roll-Forward | ' |
Non-vested shares, Beginning Balance | 26,158 |
Non-vested shares, Granted | 2,500 |
Non-vested shares, Forfeited, or expired | ' |
Non-vested shares, vested | -8,655 |
Stock Options Outstanding, Ending Balance | 20,003 |
Weighted Average Grant Date Fair Value, Options Nonvested at beginning of period | $0.04 |
Weighted Average Grant Date Fair Value, Options nonvested, grants in period | $0.03 |
Weighted Average Grant Date Fair Value, Options nonvested, forfeited in period | ' |
Weighted Average Grant Date Fair Value, Options nonvested, vested in period | $0.04 |
Weighted Average Grant Date Fair Value, Options nonvested at end of period | $0.04 |
Equity_Details_5
Equity (Details 5) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Annual Dividend | ' | ' | 0.00% | ' | ' |
Dividends, Preferred Stock | $659,000 | $510,000 | $1,281,000 | $987,000 | ' |
Common Shares to be Issued if Fully Converted | 772,624,000 | ' | 772,624,000 | ' | ' |
Series A Preferred Stock [Member] | ' | ' | ' | ' | ' |
Annual Dividend | ' | ' | 8.00% | ' | ' |
Annual Dividend Payable, in Cash or In Kind | ' | ' | 'Quarterly in Arrears | ' | ' |
Liquidation preference | 1 | ' | 1 | ' | ' |
Conversion price | $0.14 | ' | $0.14 | ' | ' |
Dividends, Preferred Stock | 21,000 | 19,000 | 41,000 | 37,000 | ' |
Total Preferred Shares Outstanding | 1,073,000 | ' | 1,073,000 | ' | 1,031,000 |
Common Shares to be Issued if Fully Converted | 7,664,000 | ' | 7,664,000 | ' | ' |
Series B Preferred Stock [Member] | ' | ' | ' | ' | ' |
Annual Dividend | ' | ' | 10.00% | ' | ' |
Annual Dividend Payable, in Cash or In Kind | ' | ' | 'Quarterly in Arrears | ' | ' |
Liquidation preference | 1.5 | ' | 1.5 | ' | ' |
Conversion price | $0.04 | ' | $0.04 | ' | ' |
Dividends, Preferred Stock | 284,000 | 257,000 | 558,000 | 504,000 | ' |
Total Preferred Shares Outstanding | 11,660,000 | ' | 11,660,000 | ' | 11,102,000 |
Common Shares to be Issued if Fully Converted | 269,105,000 | ' | 269,105,000 | ' | ' |
Series C Preferred Stock [Member] | ' | ' | ' | ' | ' |
Annual Dividend | ' | ' | 10.00% | ' | ' |
Annual Dividend Payable, in Cash or In Kind | ' | ' | 'Quarterly in Arrears | ' | ' |
Liquidation preference | 1.5 | ' | 1.5 | ' | ' |
Conversion price | $0.02 | ' | $0.02 | ' | ' |
Dividends, Preferred Stock | 115,000 | 107,000 | 226,000 | 210,000 | ' |
Total Preferred Shares Outstanding | 4,734,000 | ' | 4,734,000 | ' | 4,508,000 |
Common Shares to be Issued if Fully Converted | 210,412,000 | ' | 210,412,000 | ' | ' |
Series D One Preferred Stock [Member] | ' | ' | ' | ' | ' |
Annual Dividend | ' | ' | 10.00% | ' | ' |
Annual Dividend Payable, in Cash or In Kind | ' | ' | 'Quarterly in Arrears | ' | ' |
Liquidation preference | 1 | ' | 1 | ' | ' |
Conversion price | $0.02 | ' | $0.02 | ' | ' |
Dividends, Preferred Stock | 107,000 | 31,000 | 201,000 | 59,000 | ' |
Total Preferred Shares Outstanding | 4,409,000 | ' | 4,409,000 | ' | 3,415,000 |
Common Shares to be Issued if Fully Converted | 195,956,000 | ' | 195,956,000 | ' | ' |
Series D Two Preferred Stock [Member] | ' | ' | ' | ' | ' |
Annual Dividend | ' | ' | 10.00% | ' | ' |
Annual Dividend Payable, in Cash or In Kind | ' | ' | 'Quarterly in Arrears | ' | ' |
Liquidation preference | 1 | ' | 1 | ' | ' |
Conversion price | $0.05 | ' | $0.05 | ' | ' |
Dividends, Preferred Stock | $132,000 | $96,000 | $255,000 | $177,000 | ' |
Total Preferred Shares Outstanding | 5,436,000 | ' | 5,436,000 | ' | 4,783,000 |
Common Shares to be Issued if Fully Converted | 108,713,000 | ' | 108,713,000 | ' | ' |
Equity_Details_6
Equity (Details 6) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Dividends Net of Beneficial Conversion Feature | $659 | $510 | $1,281 | $987 |
Accretion of beneficial conversion feature related to dividends | 25 | 266 | 399 | 321 |
Series A Preferred Stock [Member] | ' | ' | ' | ' |
Dividends Net of Beneficial Conversion Feature | 21 | 19 | 41 | 37 |
Accretion of beneficial conversion feature related to dividends | ' | ' | ' | ' |
Series B Preferred Stock [Member] | ' | ' | ' | ' |
Dividends Net of Beneficial Conversion Feature | 284 | 257 | 558 | 504 |
Accretion of beneficial conversion feature related to dividends | ' | ' | ' | ' |
Series C Preferred Stock [Member] | ' | ' | ' | ' |
Dividends Net of Beneficial Conversion Feature | 115 | 107 | 226 | 210 |
Accretion of beneficial conversion feature related to dividends | 13 | 83 | 50 | 126 |
Series D One Preferred Stock [Member] | ' | ' | ' | ' |
Dividends Net of Beneficial Conversion Feature | 107 | 31 | 201 | 59 |
Accretion of beneficial conversion feature related to dividends | 12 | 183 | 297 | 195 |
Series D Two Preferred Stock [Member] | ' | ' | ' | ' |
Dividends Net of Beneficial Conversion Feature | 132 | 96 | 255 | 177 |
Accretion of beneficial conversion feature related to dividends | ' | ' | $52 | ' |
Equity_Details_7
Equity (Details 7) (USD $) | 6 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Class Of Warrant Or Right Number Of Warrants Or Rights Roll Forward | ' | ' |
Number of Warrants Outstanding at beginning of period | 77,155 | 151,722 |
Number of warrants issued | 72,589 | ' |
Number Of Warrants Or Rights Exercised | ' | -1,300 |
Number Of Warrants Or Rights Expired | -4,333 | -15,063 |
Number of Warrants Outstanding at end of period | 145,411 | 135,359 |
Number of Warrants Or Rights Exercisable at end of period | 145,411 | 135,359 |
Excercise Price of Warrants Outstanding at beginning of period | $0.03 | $0.03 |
Exercise Price Of Warrants Issued | $0.03 | ' |
Exercise Price Of Warrants Exercised | ' | $0.02 |
Exercise Price Of Warrants Expired | $0.02 | $0.03 |
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_8
Equity (Details 8) (USD $) | 6 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
Class of Warrant or Right [Line Items] | ' | ' | ' | ' |
Number of Warrants Outstanding and Excercisable | 145,411 | 77,155 | 135,359 | 151,722 |
Weighted Average Remaining Life Of Warrants Or Rights | '2 years 4 months 17 days | ' | ' | ' |
Warrants Weighted Average Exercise Price | $0.03 | $0.03 | $0.03 | $0.03 |
Warrants Group One [Member] | ' | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' | ' |
Number of Warrants Outstanding and Excercisable | 13,069 | ' | ' | ' |
Weighted Average Remaining Life Of Warrants Or Rights | '2 months 19 days | ' | ' | ' |
Warrants Weighted Average Exercise Price | $0.02 | ' | ' | ' |
Warrants Group Two [Member] | ' | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' | ' |
Number of Warrants Outstanding and Excercisable | 123,699 | ' | ' | ' |
Weighted Average Remaining Life Of Warrants Or Rights | '2 years 3 months 11 days | ' | ' | ' |
Warrants Weighted Average Exercise Price | $0.03 | ' | ' | ' |
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 3 months 22 days | ' | ' | ' |
Warrants Weighted Average Exercise Price | $0.05 | ' | ' | ' |
Equity_Details_Textual
Equity (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Arrangements with Employees and Nonemployees [Abstract] | ' | ' | ' | ' |
Estimated average forfeiture rate | ' | ' | 9.85% | 9.73% |
Stock Options, Granted | 2,500 | 26,554 | 2,500 | 26,554 |
Outstanding Options, Weighted Average Exercise Price | $0.03 | $0.04 | $0.03 | $0.04 |
Stock Options, Exercised | 0 | 0 | 0 | 0 |
Total unrecognized compensation expense related to non-vested share-based compensation arrangements granted under the plans | $317 | ' | $317 | ' |
Unrecognized compensation expense amortization period | ' | ' | '2 years 0 months 29 days | ' |
Equity_Details_Textual_1
Equity (Details Textual 1) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | 31-May-13 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | 31-May-13 | Feb. 07, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | 31-May-13 | Feb. 07, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | 31-May-14 | Jun. 30, 2014 | Nov. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | 6-May-14 |
In Thousands, except Share data, unless otherwise specified | Warrants Issued to SG Phoenix [Member] | Warrants Issued to SG Phoenix [Member] | Warrants Issued to Unrelated Parties [Member] | Warrants Issued to Unrelated Parties [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D One Preferred Stock [Member] | Series D One Preferred Stock [Member] | Series D One 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 [Member] | Series D Two Preferred Stock [Member] | Series D Two Preferred Stock [Member] | Series D Two Preferred Stock For Cash [Member] | February And March Two Thousand Fourteen Note And Warrant Purchase Agreement [Member] | February And March Two Thousand Fourteen Note And Warrant Purchase Agreement [Member] | February And March Two Thousand Fourteen Note And Warrant Purchase Agreement [Member] | Series D Financing [Member] | Venture Champion Asia Limited [Member] | Venture Champion Asia Limited [Member] | Venture Champion Asia Limited [Member] | ||||
Subsequent Event [Member] | Subsequent Event [Member] | Contingent Warrants [Member] | Contingent Warrants [Member] | Contingent Warrants [Member] | Credit Agreement Warrant [Member] | Credit Agreement Warrant [Member] | ||||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Units, Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 230,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Units, Components | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 2 | ' | ' | ' | 4 | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
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 sale of stock, net | ' | ' | ' | ' | ' | ' | ' | ' | $406 | $733 | $870 | $1,150 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Administrative fee paid to SG Phoenix | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 47 | 40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares sold in private placement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 273,000 | 520,000 | 607,000 | ' | ' | 137,000 | 260,000 | 303,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of short-term debt and accrued interest, net of offering costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,179 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,099 | ' | ' | ' |
Shares issued in debt conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 786,000 | ' | ' | ' | ' | 393,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant coverage, maximum percentage | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' |
Fair Value Assumptions, Expected Term | ' | ' | ' | ' | '3 years | ' | '3 years | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' |
Number of shares of Series D-2 Preferred Stock exchanged into Series D-1 Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 537,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants, expiration date | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-16 | 31-Dec-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common shares callable by warrants | ' | ' | ' | ' | ' | 3,000,000 | ' | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,782,000 | 40,262,000 | 40,262,000 | ' | 10,909,000 | ' | ' |
Number of common shares, reserved for issuance upon exercise of outstanding warrants | 145,411,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price per share for the shares sold in private placement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' | ' | ' |
Fair value of contingent warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 566 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Beneficial Conversion Feature | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 305 | ' | ' | ' | ' | ' | ' |
Line of cerdit, initiation day | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6-May-14 | ' | ' |
Line of credit facility, description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Credit Agreement | ' | ' |
Line of credit facility, unsecured indebtedness, current amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | ' | ' |
Exercise price | $0.03 | $0.03 | $0.03 | $0.03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.03 | ' | ' |
Initial fair value of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $245 |
Subsequent_Event_Details_Textu
Subsequent Event (Details Textual) (USD $) | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Aug. 31, 2014 | Aug. 05, 2014 |
Series D One Preferred Stock [Member] | Series D One Preferred Stock [Member] | Series D One Preferred Stock [Member] | Series D One Preferred Stock [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||
Subscription Agreements [Member] | Subscription Agreements [Member] | ||||||
Series D One Preferred Stock [Member] | Series D One Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Subsequent Event, Date | ' | ' | ' | ' | ' | 5-Aug-14 | ' |
Subsequent Event, Description | ' | ' | ' | ' | ' | 'Subscription Agreements with certain investors | ' |
Number of shares sold in private placement | ' | 273 | 520 | 607 | ' | 1,120 | ' |
Purchase price per share for the shares sold in private placement | ' | ' | ' | ' | ' | ' | $1 |
Aggregate purchase price | ' | ' | ' | ' | ' | $1,120 | ' |
Annual Dividend | 0.00% | ' | ' | ' | 10.00% | 10.00% | ' |
Conversion price per share | ' | ' | ' | ' | ' | ' | $0.02 |
Administrative fee paid to SG Phoenix | ' | ' | ' | ' | ' | $50 | ' |