Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 14, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | iSign Solutions Inc. | |
Entity Central Index Key | 727,634 | |
Amendment Flag | false | |
Trading Symbol | ISGN | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,761,980 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 164 | $ 389 |
Accounts receivable, net of allowance of $0 at September 30, 2017 and $63 at December 31, 2016, respectively | 83 | 137 |
Prepaid expenses and other current assets | 30 | 56 |
Total current assets | 277 | 582 |
Property and equipment, net | 12 | 20 |
Intangible assets, net | 27 | 269 |
Other assets | 17 | 17 |
Total assets | 333 | 888 |
Current liabilities: | ||
Accounts payable | 1,295 | 1,368 |
Accrued compensation | 200 | 257 |
Other accrued liabilities | 622 | 505 |
Deferred revenue | 377 | 258 |
Short-term capital lease | 4 | 4 |
Total current liabilities | 2,498 | 2,392 |
Long-term debt, net | 1,284 | 707 |
Deferred revenue long-term | 210 | 315 |
Long-term capital lease | 7 | 9 |
Other long-term liabilities | 7 | 13 |
Total liabilities | 4,006 | 3,436 |
Commitments and contingencies | ||
Deficit: | ||
Common stock, $0.01 par value; 20,000 shares authorized; 5,762 shares issued and outstanding at September 30, 2017 and December 31, 2016 | 58 | 58 |
Treasury shares, 5 at September 30, 2017 and December 31, 2016 | (325) | (325) |
Additional paid-in capital | 128,983 | 128,884 |
Accumulated deficit | (131,839) | (130,615) |
Accumulated other comprehensive loss | (14) | (14) |
Total iSign stockholders' deficit | (3,137) | (2,012) |
Non-controlling interest | (536) | (536) |
Total deficit | (3,673) | (2,548) |
Total liabilities and deficit | $ 333 | $ 888 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance | $ 0 | $ 63 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000 | 20,000 |
Common stock, shares issued | 5,762 | 5,762 |
Common stock, shares outstanding | 5,762 | 5,762 |
Treasury Stock, Shares | 5 | 5 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue: | ||||
Product | $ 65 | $ 50 | $ 157 | $ 273 |
Maintenance | 165 | 171 | 498 | 580 |
Total revenue | 230 | 221 | 655 | 853 |
Cost of sales: | ||||
Product | 4 | 12 | 11 | 66 |
Maintenance | 23 | 77 | 92 | 294 |
Research and development | 299 | 282 | 884 | 968 |
Sales and marketing | 28 | 52 | 136 | 381 |
General and administrative | 241 | 368 | 920 | 1,709 |
Total operating costs and expenses | 595 | 791 | 2,043 | 3,418 |
Loss from operations | (365) | (570) | (1,388) | (2,565) |
Other income (expense), net | (5) | 1 | 68 | (11) |
Gain on sale of intangible asset | 239 | |||
Interest expense: | ||||
Related party | (6) | (10) | (18) | (91) |
Other | (23) | (9) | (53) | (107) |
Amortization of debt discount: | ||||
Related party | (6) | (2) | (20) | (58) |
Other | (18) | (15) | (52) | (225) |
Gain on derivative liability | 156 | 330 | ||
Net loss | (423) | (449) | (1,224) | (2,727) |
Accretion of beneficial conversion feature: Preferred Stock: | ||||
Related party | (115) | |||
Other | (130) | |||
Preferred stock dividends: | ||||
Related party | (646) | |||
Other | (667) | |||
Net loss attributable to common stockholders | $ (423) | $ (449) | $ (1,224) | $ (4,285) |
Basic and diluted net loss per common share | $ (0.07) | $ (0.08) | $ (0.21) | $ (1.53) |
Weighted average common shares outstanding, basic and diluted | 5,762 | 5,498 | 5,762 | 2,794 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (1,224) | $ (2,727) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 252 | 276 |
Debt discount amortization | 72 | 283 |
Stock-based compensation | 99 | 139 |
Gain on sale of intangible asset | (239) | |
Gain on derivative liability | (330) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 54 | (75) |
Prepaid expenses and other assets | 26 | 307 |
Accounts payable | (73) | 602 |
Accrued compensation | (57) | 1 |
Other accrued and long-term liabilities | 109 | 369 |
Deferred revenue | 14 | (115) |
Net cash used in operating activities | (967) | (1,270) |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (2) | |
Net cash used in investing activities | (2) | |
Cash flows from financing activities: | ||
Proceeds from issuance of short-term notes payable | 100 | |
Proceeds from issuance of long-term notes | 505 | 240 |
Proceeds from the sale of intangible assets | 239 | |
Proceeds from issuance of common stock and warrants, net of issuance costs of $780 | 424 | |
Payment of short-term debt | (200) | |
Net cash provided by financing activities | 744 | 564 |
Net decrease in cash and cash equivalents | (225) | (706) |
Cash and cash equivalents at beginning of period | 389 | 846 |
Cash and cash equivalents at end of period | 164 | 140 |
Supplementary disclosure of cash flow information | ||
Interest paid | 9 | 40 |
Income tax paid | ||
Non-cash financing and investing transactions | ||
Acquisition of property and equipment through capital lease | 15 | |
Discount on long term notes payable | 103 | |
Conversion of convertible notes plus accrued interest into 683 shares of Common Stock | 1,188 | |
Conversion of deferred compensation plus accrued interest into 286 shares of Common Stock | 498 | |
Exchange of long-term unsecured convertible promissory notes for long-term unsecured convertible promissory notes | 200 | |
Exchange of long-term unsecured convertible promissory notes for long-term secured convertible promissory notes | 250 | |
Dividends on Preferred Stock | 1,313 | |
Accretion of beneficial conversion feature on issuance of Preferred Stock | ||
Accretion of beneficial conversion feature on issuance of Preferred Stock dividends | $ 245 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)shares | |
Conversion of convertible notes plus accrued interest in common stock, shares | 683 |
Conversion of deferred compensation plus accrued interest in common stock, shares | 286 |
Common stock and warrants | |
Net of offering costs | $ | $ 780 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Nature of Business and Summary of Significant Accounting Policies [Abstract] | |
Nature of business and summary of significant accounting policies | 1. Nature of business and summary of significant accounting policies Nature of Business iSign Solutions Inc. and its subsidiary is a leading supplier of digital transaction management (DTM) software enabling the paperless, secure and cost-effective management and authentication of document-based transactions. iSign’s solutions encompass a wide array of functionality and services, including electronic signatures, simple-to-complex workflow management and various options for biometric authentication. These solutions are available across virtually all enterprise, desktop and mobile environments as a seamlessly integrated platform for both ad-hoc and fully automated transactions. iSign’s platform can be deployed both on premise and as a cloud-based service, with the ability to easily transition between deployment models. The Company is headquartered in San Jose, California. The Company’s products include SignatureOne® Ceremony™ Server, the iSign® suite of products and services, including iSign® Enterprise and iSign® Console™, and Sign-it® programs. 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, 2016. The accompanying unaudited condensed consolidated financial statements of the Company 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 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 September 30, 2017, the Company’s accumulated deficit was $131,839. The Company has primarily met its working capital needs through the sale of debt and equity securities. As of September 30, 2017, the Company’s cash balance was $164. 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. |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2017 | |
Concentrations [Abstract] | |
Concentrations | 2. Concentrations The following table summarizes accounts receivable and revenue concentrations: Accounts Receivable Total Revenue Total Revenue 2017 2016 2017 2016 2017 2016 Customer #1 53 % 13 % 10 % - 10 % - Customer #2 18 % - - - - - Customer #3 - - 14 % 14 % 14 % 12 % Customer #4 - 56 % 15 % 16 % 16 % 24 % Customer #5 - - 15 % 16 % 16 % 12 % Customer #6 - 17 % - - - - Customer #7 25 % - - - - - Total concentration 96 % 86 % 54 % 46 % 56 % 48 % |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Intangible Assets [Abstract] | |
Intangible Assets | 3. Intangible Assets The Company performs an 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 intangible assets as of December 31, 2016. Based on that analysis, the Company concluded that no impairment of the carrying value of the intangible assets existed. The Company believes that no events or circumstances changed during the three and nine months ended September 30, 2017 that would impact this conclusion. Amortization of intangible asset costs was $81 and $242 for the three and nine-month periods ended September 30, 2017 and $81 and $242 for the three and nine-month periods ended September 30, 2016. The following table summarizes the intangible assets: September 30, 2017 December 31, 2016 Carrying Amount Accumulated Amortization Net Value Carrying Amount Accumulated Amortization Net Value Amortizable intangible assets Technology $ 6,745 $ (6,718 ) $ 27 $ 6,745 $ (6,476 ) $ 269 |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Net Loss Per Share [Abstract] | |
Net loss per share | 4. 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 net 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 diluted earnings per share as the exercise of such options and warrants would be antidilutive: For the Three and Nine Months Ended September 30, 2017 September 30, 2016 Stock options 566 71 Warrants 1,878 1,756 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt [Abstract] | |
Debt | 5. Debt Advances: In February 2017, the Company received, from investors and affiliates of the Company, advances aggregating $120 in cash against certain accounts receivable of the Company. Upon collection of an invoice, the Company would repay the advance to the lenders on a pro rata basis together with a 5% advance fee. The receivables were collected and the advances were repaid in March 2017, along with $6 in advance fees per the agreement. The advance fees were recorded as interest expense in the quarter ended March 31, 2017. Notes payable: In November 2016, the Company issued long-term unsecured convertible promissory notes to investors and affiliates of the Company aggregating $700 in cash. The Company also issued the same long-term notes to affiliates in exchange for an aggregate of $200 in demand notes that had been issued earlier in September and October of 2016. The long-term notes are mandatorily convertible into Common Stock at a conversion rate of the lesser of $1.30 per share or the price per share of Common Stock, upon closing a new debt and or equity financing of at least $1,000 in aggregate proceeds. The notes bear interest at the rate of 6% per annum and are due December 31, 2018. The Company issued warrants to purchase 277 shares of Common Stock in connection with these long-term notes. The Company ascribed a value of $204 to the 277 warrants and recorded a discount to the long-term notes and a corresponding amount to additional paid-in capital. The discount is being amortized using the effective interest method over the term of the notes. In May 2017, the Company issued long-term secured convertible promissory notes to investors and affiliates of the Company aggregating $505 in cash. In addition, certain investors and affiliates of the Company that had taken part in the November 2016 financing discussed above and that also participated in the May 2017 financing, exchanged $250 of unsecured convertible promissory notes received in the November 2016 financing for the same secured notes issued in the May 2017 financing. The secured notes are mandatorily convertible into Common Stock at a conversion rate of the lesser of $0.50 per share or the price per share of Common Stock, upon closing a new financing of at least $1,000 in aggregate proceeds. The secured notes bear interest at the rate of 10% per annum, are due December 31, 2018 and are secured by an interest in all the Company's rights, title and interest in, to and under its intellectual property. Should the secured notes remain outstanding following the maturity date an additional 30% of the note’s principal amount shall become due and payable. The Company used the funds received from the above financing for working capital and general corporate purposes. The Company recorded $24 and $72 in debt discount amortization for the three and nine months ended September 30, 2017, respectively, related to the above 2016 debt financings. |
Equity (Deficit)
Equity (Deficit) | 9 Months Ended |
Sep. 30, 2017 | |
Equity (Deficit) [Abstract] | |
Equity (Deficit) | 6. Equity (Deficit) Stock-based compensation expense is based on the estimated grant date fair value of the portion of stock-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-Merton valuation model. The weighted-average fair value of stock-based compensation is based on the Black-Scholes-Merton valuation model. 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 Company granted 502 stock options during the nine months ended September 30, 2017 at a weighted average exercise price of $0.50 per share. There were no stock options exercised during the three and nine months ended September 30, 2017. There were no stock options granted, and no stock options exercised during the three and nine months ended September 30, 2016. The fair value calculations for the stock options granted are based on the following assumptions: Nine Months Ended Risk free interest rate 1.56 % Expected life (years) 5.3 Expected volatility 212.15 % Expected dividends None The following table summarizes the allocation of stock-based compensation expense related to stock option grants for the three and nine-month periods ended September 30, 2017 and 2016. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Research and development $ 15 $ 12 $ 35 $ 46 Sales and marketing - - - 15 General and administrative 19 15 39 59 Director options 10 5 25 19 Stock-based compensation expense $ 44 $ 32 $ 99 $ 139 A summary of option activity under the Company’s plans as of September 30, 2017 and 2016 is as follows: 2017 2016 Options Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 71 $ 45.21 $ - 82 $ 45.35 $ - Granted 502 $ 0.50 $ - - $ - $ - Forfeited or expired (7 ) $ 7.21 $ - (11 ) $ 45.66 $ - Outstanding at September 30 566 $ 6.02 6.09 $ - 71 $ 45.30 3.41 $ - Vested and expected to vest at September 30 520 $ 6.04 6.04 $ - 70 $ 46.14 3.36 $ - Exercisable at September 30 106 $ 29.05 3.92 $ - 58 $ 49.70 2.95 $ - The following table summarizes significant ranges of outstanding and exercisable options as of September 30, 2017: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Per Share Number Outstanding Weighted Average Exercise Price Per Share $0.01 – $25.00 498 6.60 $ 0.56 42 $ 1.02 $25.01 - $625.00 68 2.33 $ 46.17 64 $ 47.25 Total 566 6.09 $ 6.02 106 $ 29.05 The following table summarizes the Company’s non-vested option shares as of September 30, 2017: Non-vested Option Shares Shares Weighted Average Non-vested at January 1, 2017 11 $ 23.01 Granted 502 $ 0.50 Forfeited (6 ) $ 0.75 Vested (47 ) $ 0.99 Non-vested at September 30, 2017 460 $ 0.76 As of September 30, 2017, there was $101 of total unrecognized compensation expense related to non-vested stock-based compensation arrangements granted under the plans. The unrecognized compensation expense is expected to be realized over a weighted average period of 2.1 years. Warrants A summary of the warrant activity for the nine months ended September 30 is as follows: September 30, 2017 September 30, 2016 Shares Weighted Average Exercise Price Per Share Shares Weighted Average Exercise Price Per Share Outstanding at beginning of period 1,882 $ 2.52 205 $ 35.51 Issued - $ - 1,551 $ 2.18 Expired (4 ) $ 34.38 - $ - Outstanding at end of period 1,878 $ 1.53 1,756 $ 5.27 Exercisable at end of period 1,878 $ 1.53 1,756 $ 5.27 A summary of the status of the warrants outstanding and exercisable as of September 30, 2017 is as follows: Number of shares exercisable Weighted Average Weighted Average Exercise 50 0.01 $ 0.42 277 0.42 $ 0.24 1,551 3.04 $ 1.80 1,878 2.57 $ 1.53 |
Nature of Business and Summar13
Nature of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Nature of Business and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | 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, 2016. The accompanying unaudited condensed consolidated financial statements of the Company 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 | 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 September 30, 2017, the Company’s accumulated deficit was $131,839. The Company has primarily met its working capital needs through the sale of debt and equity securities. As of September 30, 2017, the Company’s cash balance was $164. 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. |
Accounting Changes and Recent Accounting Pronouncements | Accounting Changes and Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-09, Compensation (Subtopic 718-20): Stock Compensation - Scope of Modification Accounting In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception. ASU 2017-11 addresses the narrow issues identified as a result of the complexity associated with applying generally accepted accounting principles (GAAP) for certain financial instruments with characteristics of liabilities and equity in two parts, (1) Addressing financial instruments with down round features, and (2) which relates to non-public entities. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 has been issued with the objective of improving the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition to that main objective, the amendments in this Update make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP based on the feedback received from preparers, auditors, users, and other stakeholders. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842). ASU 2017-13 adds SEC paragraphs pursuant to an SEC Staff Announcement made at the July 20, 2017 Emerging Issues Task Force (EITF) meeting. Implementation of the above ASU’s issued in 2017 are not expected to have a material impact on the Company’s financial position, results of operations and cash flows. |
Concentrations (Tables)
Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Concentrations [Abstract] | |
Summary of accounts receivable and revenue concentrations | Accounts Receivable Total Revenue Total Revenue 2017 2016 2017 2016 2017 2016 Customer #1 53 % 13 % 10 % - 10 % - Customer #2 18 % - - - - - Customer #3 - - 14 % 14 % 14 % 12 % Customer #4 - 56 % 15 % 16 % 16 % 24 % Customer #5 - - 15 % 16 % 16 % 12 % Customer #6 - 17 % - - - - Customer #7 25 % - - - - - Total concentration 96 % 86 % 54 % 46 % 56 % 48 % |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Intangible Assets [Abstract] | |
Summary of intangible assets | September 30, 2017 December 31, 2016 Carrying Amount Accumulated Amortization Net Value Carrying Amount Accumulated Amortization Net Value Amortizable intangible assets Technology $ 6,745 $ (6,718 ) $ 27 $ 6,745 $ (6,476 ) $ 269 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Net Loss Per Share [Abstract] | |
Schedule of diluted earnings per share as the exercise of such options and warrants and the conversion of such preferred shares would be anti-dilutive | For the Three and Nine Months Ended September 30, 2017 September 30, 2016 Stock options 566 71 Warrants 1,878 1,756 |
Equity (Deficit) (Tables)
Equity (Deficit) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity (Deficit) [Abstract] | |
Schedule of stock options granted based on fair value assumptions | Nine Months Ended Risk free interest rate 1.56 % Expected life (years) 5.3 Expected volatility 212.15 % Expected dividends None |
Summary of stock-based compensation expense related to stock option grants | Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Research and development $ 15 $ 12 $ 35 $ 46 Sales and marketing - - - 15 General and administrative 19 15 39 59 Director options 10 5 25 19 Stock-based compensation expense $ 44 $ 32 $ 99 $ 139 |
Summary of option activity | 2017 2016 Options Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 71 $ 45.21 $ - 82 $ 45.35 $ - Granted 502 $ 0.50 $ - - $ - $ - Forfeited or expired (7 ) $ 7.21 $ - (11 ) $ 45.66 $ - Outstanding at September 30 566 $ 6.02 6.09 $ - 71 $ 45.30 3.41 $ - Vested and expected to vest at September 30 520 $ 6.04 6.04 $ - 70 $ 46.14 3.36 $ - Exercisable at September 30 106 $ 29.05 3.92 $ - 58 $ 49.70 2.95 $ - |
Summary of significant ranges of outstanding and exercisable options | Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Per Share Number Outstanding Weighted Average Exercise Price Per Share $0.01 – $25.00 498 6.60 $ 0.56 42 $ 1.02 $25.01 – $625.00 68 2.33 $ 46.17 64 $ 47.25 Total 566 6.09 $ 6.02 106 $ 29.05 |
Summary of status of the Company's non-vested shares | Non-vested Option Shares Shares Weighted Average Non-vested at January 1, 2017 11 $ 23.01 Granted 502 $ 0.50 Forfeited (6 ) $ 0.75 Vested (47 ) $ 0.99 Non-vested at September 30, 2017 460 $ 0.76 |
Summary of the warrant activity | September 30, 2017 September 30, 2016 Shares Weighted Average Exercise Price Per Share Shares Weighted Average Exercise Price Per Share Outstanding at beginning of period 1,882 $ 2.52 205 $ 35.51 Issued - $ - 1,551 $ 2.18 Expired (4 ) $ 34.38 - $ - Outstanding at end of period 1,878 $ 1.53 1,756 $ 5.27 Exercisable at end of period 1,878 $ 1.53 1,756 $ 5.27 |
Summary of warrants outstanding and exercisable | Number of shares exercisable Weighted Average Weighted Average Exercise 50 0.01 $ 0.42 277 0.42 $ 0.24 1,551 3.04 $ 1.80 1,878 2.57 $ 1.53 |
Nature of Business and Summar18
Nature of Business and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Nature of Business and Summary of Significant Accounting Policies (Textual) | ||||
Accumulated deficit | $ (131,839) | $ (130,615) | ||
Cash balance | $ 164 | $ 389 | $ 140 | $ 846 |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounts Receivable [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | 96.00% | 86.00% | ||
Accounts Receivable [Member] | Customer #1 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | 53.00% | 13.00% | ||
Accounts Receivable [Member] | Customer #2 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | 18.00% | |||
Accounts Receivable [Member] | Customer #3 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | ||||
Accounts Receivable [Member] | Customer #4 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | 56.00% | |||
Accounts Receivable [Member] | Customer #5 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | ||||
Accounts Receivable [Member] | Customer #6 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | 17.00% | |||
Accounts Receivable [Member] | Customer #7 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | 25.00% | |||
Total Revenue [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | 54.00% | 46.00% | 56.00% | 48.00% |
Total Revenue [Member] | Customer #1 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | 10.00% | 10.00% | ||
Total Revenue [Member] | Customer #2 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | ||||
Total Revenue [Member] | Customer #3 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | 14.00% | 14.00% | 14.00% | 12.00% |
Total Revenue [Member] | Customer #4 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | 15.00% | 16.00% | 16.00% | 24.00% |
Total Revenue [Member] | Customer #5 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | 15.00% | 16.00% | 16.00% | 12.00% |
Total Revenue [Member] | Customer #6 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration | ||||
Total Revenue [Member] | Customer #7 [Member] | ||||
Concentration Risk [Line Items] | ||||
Total concentration |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Amortizable intangible assets | ||
Net Value | $ 27 | $ 269 |
Technology [Member] | ||
Amortizable intangible assets | ||
Carrying Amount | 6,745 | 6,745 |
Accumulated Amortization | (6,718) | (6,476) |
Net Value | $ 27 | $ 269 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Intangible Assets (Textual) | ||||
Amortization of intangible assets costs | $ 81 | $ 81 | $ 242 | $ 242 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-diluted earnings per share of options and warrants shares | 566 | 71 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-diluted earnings per share of options and warrants shares | 1,878 | 1,756 |
Debt (Details)
Debt (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Oct. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Debt (Textual) | ||||||||
Warrants and recorded a discount to the long-term notes | $ 1,188 | |||||||
Proceeds from issuance of long-term notes | 505 | $ 240 | ||||||
Debt [Member] | ||||||||
Debt (Textual) | ||||||||
Aggregating amount of debt | $ 120 | |||||||
Advance fees | $ 6 | 6 | ||||||
Description of advance fee | The Company would repay the advance to the lenders on a pro rata basis together with a 5% advance fee. | |||||||
Unsecured convertible promissory notes [Member] | Investors and Affiliates [Member] | ||||||||
Debt (Textual) | ||||||||
Warrants issued to purchase of common stock | 277 | |||||||
Proceeds from issuance of long-term notes | $ 505 | $ 700 | ||||||
Description of replacement notes | Should the secured notes remain outstanding following the maturity date an additional 30% of the note's principal amount shall become due and payable. | |||||||
Unsecured convertible promissory notes received | $ 250 | |||||||
Demand promissory notes [Member] | Investors and Affiliates [Member] | ||||||||
Debt (Textual) | ||||||||
Exchange of demand notes for long-term unsecured convertible notes | $ 200 | $ 200 | ||||||
Notes Payable [Member] | ||||||||
Debt (Textual) | ||||||||
Conversion price | $ 0.50 | $ 1.30 | ||||||
Proceeds of equity financing | $ 1,000 | $ 1,000 | ||||||
Interest rate | 10.00% | 6.00% | ||||||
Due date | Dec. 31, 2018 | Dec. 31, 2018 | ||||||
Debt discount amortization | $ 24 | $ 72 | ||||||
Notes Payable [Member] | Minimum [Member] | ||||||||
Debt (Textual) | ||||||||
Warrants and recorded a discount to the long-term notes | $ 204 | |||||||
Notes Payable [Member] | Maximum [Member] | ||||||||
Debt (Textual) | ||||||||
Warrants and recorded a discount to the long-term notes | $ 277 |
Equity (Deficit) (Details)
Equity (Deficit) (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Schedule of stock options granted based on fair value assumtions | |
Risk free interest rate | 1.56% |
Expected life (years) | 5 years 3 months 19 days |
Expected volatility | 212.15% |
Expected dividends |
Equity (Deficit) (Details1)
Equity (Deficit) (Details1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 44 | $ 32 | $ 99 | $ 139 |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 15 | 12 | 35 | 46 |
Sales and marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 15 | |||
General and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 19 | 15 | 39 | 59 |
Director options [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 10 | $ 5 | $ 25 | $ 19 |
Equity (Deficit) (Details 2)
Equity (Deficit) (Details 2) - USD ($) shares in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Equity (Deficit) [Abstract] | ||
Options Shares, Outstanding, Beginning balance | 71 | 82 |
Options Shares, Granted | 502 | |
Options Shares, Forfeited or expired | (7) | (11) |
Options Shares, Outstanding, Ending balance | 566 | 71 |
Options Shares, Vested and expected to vest | 520 | 70 |
Options Shares, Exercisable | 106 | 58 |
Weighted Average Exercise Price Per Share, Outstanding, Beginning balance | $ 45.21 | $ 45.35 |
Weighted Average Exercise Price Per Share, Granted | 0.50 | |
Weighted Average Exercise Price Per Share, Forfeited or expired | 7.21 | 45.66 |
Weighted Average Exercise Price Per Share, Outstanding, Ending balance | 6.02 | 45.30 |
Weighted Average Exercise Price Per Share, Vested and expected to vest | 6.04 | 46.14 |
Weighted Average Exercise Price Per Share, Exercisable | $ 29.05 | $ 49.70 |
Weighted Average Remaining Contractual Life, Outstanding | 6 years 1 month 2 days | 3 years 4 months 28 days |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest | 6 years 15 days | 3 years 4 months 9 days |
Weighted Average Remaining Contractual Life (Years), Exercisable | 3 years 11 months 1 day | 2 years 11 months 12 days |
Aggregate Intrinsic Value, Outstanding, Beginning balance | ||
Aggregate Intrinsic Value, Granted | ||
Aggregate Intrinsic Value, Forfeited or expired | ||
Aggregate Intrinsic Value, Outstanding, Ending balance | ||
Aggregate Intrinsic Value, Vested and expected to vest | ||
Aggregate Intrinsic Value, Exercisable |
Equity (Deficit) (Details 3)
Equity (Deficit) (Details 3) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 566 |
Options Outstanding, Weighted Average Remaining Contractual Term (Years) | 6 years 1 month 2 days |
Options Outstanding, Weighted Average Exercise Price | $ 6.02 |
Options Exercisable, Number Outstanding | shares | 106 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 29.05 |
$0.01 - $25.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range Limit | 0.01 |
Range of Exercise Prices, Upper Range Limit | $ 25 |
Options Outstanding, Number Outstanding | shares | 498 |
Options Outstanding, Weighted Average Remaining Contractual Term (Years) | 6 years 7 months 6 days |
Options Outstanding, Weighted Average Exercise Price | $ 0.56 |
Options Exercisable, Number Outstanding | shares | 42 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 1.02 |
$25.01 - 625.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range Limit | 25.01 |
Range of Exercise Prices, Upper Range Limit | $ 625 |
Options Outstanding, Number Outstanding | shares | 68 |
Options Outstanding, Weighted Average Remaining Contractual Term (Years) | 2 years 3 months 29 days |
Options Outstanding, Weighted Average Exercise Price | $ 46.17 |
Options Exercisable, Number Outstanding | shares | 64 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 47.25 |
Equity (Deficit) (Details 4)
Equity (Deficit) (Details 4) shares in Thousands | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Equity Instruments, Options, Nonvested Shares Roll-Forward | |
Non-vested, Shares, Beginning balance | shares | 11 |
Non-vested, Shares, Granted | shares | 502 |
Non-vested, Shares, Forfeited | shares | (6) |
Non-vested, Shares, Vested | shares | (47) |
Non-vested, Shares, Ending balance | shares | 460 |
Weighted Average Grant-Date Fair Value, Non-vested, Beginning balance | $ / shares | $ 23.01 |
Weighted Average Grant-Date Fair Value, Granted | $ / shares | 0.50 |
Weighted Average Grant-Date Fair Value, Forfeited | $ / shares | 0.75 |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | 0.99 |
Weighted Average Grant-Date Fair Value, Non-vested, Ending balance | $ / shares | $ 0.76 |
Equity (Deficit) (Details 5)
Equity (Deficit) (Details 5) - Warrants [Member] - $ / shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of Shares, Outstanding at beginning of period | 1,882 | 205 |
Number of Shares, Issued | 1,551 | |
Number of Shares, Expired | (4) | |
Number of Shares, Outstanding at end of period | 1,878 | 1,756 |
Number of Shares, Exercisable at end of period | 1,878 | 1,756 |
Weighted Average Exercise Price Per Share, Outstanding at beginning of period | $ 2.52 | $ 35.51 |
Weighted Average Exercise Price Per Share, Issued | 2.18 | |
Weighted Average Exercise Price Per Share, Expired | 34.38 | |
Weighted Average Exercise Price Per Share, Outstanding at end of period | 1.53 | 5.27 |
Weighted Average Exercise Price Per Share, Exercisable at end of period | $ 1.53 | $ 5.27 |
Equity (Deficit) (Details 6)
Equity (Deficit) (Details 6) - Warrants outstanding and exercisable [Member] shares in Thousands | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
50 [Member] | |
Class of Warrant or Right [Line Items] | |
Number of Warrants | shares | 50 |
Weighted Average Remaining Life Years | 4 days |
Weighted Average Exercise Price per share | $ / shares | $ 0.42 |
277 [Member] | |
Class of Warrant or Right [Line Items] | |
Number of Warrants | shares | 277 |
Weighted Average Remaining Life Years | 5 months 1 day |
Weighted Average Exercise Price per share | $ / shares | $ 0.24 |
1,551 [Member] | |
Class of Warrant or Right [Line Items] | |
Number of Warrants | shares | 1,551 |
Weighted Average Remaining Life Years | 3 years 15 days |
Weighted Average Exercise Price per share | $ / shares | $ 1.80 |
1,878 [Member] | |
Class of Warrant or Right [Line Items] | |
Number of Warrants | shares | 1,878 |
Weighted Average Remaining Life Years | 2 years 6 months 25 days |
Weighted Average Exercise Price per share | $ / shares | $ 1.53 |
Equity (Deficit) (Details Textu
Equity (Deficit) (Details Textual) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Equity (Deficit) (Textual) | |
Stock options granted | shares | 502 |
Weighted average exercise price per share | $ / shares | $ 0.50 |
Unrecognized compensation expense | $ | $ 101 |
Unrecognized compensation expense, expected period | 2 years 1 month 6 days |