Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 03, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'GLOWPOINT, INC. | ' |
Entity Central Index Key | '0000746210 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 35,805,000 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $2,153 | $2,294 |
Accounts receivable, net | 3,709 | 4,077 |
Prepaid expenses and other current assets | 937 | 404 |
Total current assets | 6,799 | 6,775 |
Property and equipment, net | 3,390 | 2,867 |
Goodwill | 9,825 | 9,825 |
Intangibles, net | 5,057 | 5,998 |
Other assets | 315 | 421 |
Total assets | 25,386 | 25,886 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 400 | 950 |
Current portion of capital lease obligations | 57 | 217 |
Accounts payable | 1,274 | 1,885 |
Accrued expenses and other liabilities | 2,577 | 2,277 |
Accrued dividends | 35 | 20 |
Accrued sales taxes and regulatory fees | 486 | 590 |
Total current liabilities | 4,829 | 5,939 |
Long term liabilities: | ' | ' |
Capital lease obligations, net of current portion | 5 | 43 |
Long term debt, net of current portion | 10,885 | 10,235 |
Total long term liabilities | 10,890 | 10,278 |
Total liabilities | 15,719 | 16,217 |
Commitments and contingencies | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, Series A-2, convertible; $.0001 par value; $7,500 stated value; 7,500 shares authorized, 53 shares issued and outstanding and liquidation preference of $396 at September 30, 2014 and December 31, 2013 | 167 | 167 |
Common stock, $.0001 par value;150,000,000 shares authorized; 35,743,000 shares issued and 35,703,000 shares outstanding at September 30, 2014 and 35,306,000 shares issued and outstanding at December 31, 2013 | 4 | 4 |
Treasury stock, 40,000 and 0 shares at September 30, 2014 and December 31, 2013, respectively | -66 | 0 |
Additional paid-in capital | 178,056 | 177,357 |
Accumulated deficit | -168,494 | -167,859 |
Total stockholders’ equity | 9,667 | 9,669 |
Total liabilities and stockholders’ equity | $25,386 | $25,886 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Stockholders’ equity: | ' | ' |
Preferred stock Series A-2, convertible, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock Series A-2, stated value | $7,500 | $7,500 |
Preferred stock Series A-2, shares authorized | 7,500 | 7,500 |
Preferred stock Series A-2, shares issued | 53 | 53 |
Preferred stock Series A-2, shares outstanding | 53 | 53 |
Preferred stock Series A-2, liquidation value | $396,000 | $396,000 |
Common Stock, convertible, par value (in dollars per share) | $0.00 | $0.00 |
Common Stock, shares authorized | 150,000,000 | 150,000,000 |
Common Stock, shares issued | 35,743,000 | 35,306,000 |
Common Stock, shares outstanding | 35,703,000 | 35,306,000 |
Treasury Stock, shares | 40,000 | 0 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $7,958 | $8,313 | $24,407 | $25,553 |
Operating expenses: | ' | ' | ' | ' |
Cost of revenue (exclusive of depreciation and amortization) | 4,374 | 4,959 | 14,068 | 14,802 |
Research and development | 273 | 152 | 732 | 560 |
Sales and marketing | 785 | 868 | 2,528 | 2,934 |
General and administrative | 1,347 | 1,746 | 4,667 | 6,544 |
Depreciation and amortization | 623 | 693 | 1,977 | 2,151 |
Total operating expenses | 7,402 | 8,418 | 23,972 | 26,991 |
Income (loss) from operations | 556 | -105 | 435 | -1,438 |
Interest and other expense: | ' | ' | ' | ' |
Interest expense and other, net | 335 | 286 | 1,003 | 898 |
Amortization of deferred financing costs | 23 | 121 | 67 | 242 |
Amortization of debt discount | 0 | 39 | 0 | 108 |
Total interest and other expense, net | 358 | 446 | 1,070 | 1,248 |
Income (loss) before income taxes | 198 | -551 | -635 | -2,686 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net income (loss) | 198 | -551 | -635 | -2,686 |
Preferred stock dividends | 5 | -185 | 15 | 25 |
Net income (loss) attributable to common stockholders | $193 | ($366) | ($650) | ($2,711) |
Net income (loss) attributable to common stockholders per share: | ' | ' | ' | ' |
Basic net income (loss) per share (in dollars per share) | $0.01 | ($0.01) | ($0.02) | ($0.09) |
Diluted net income (loss) per share (in dollars per share) | $0.01 | ($0.01) | ($0.02) | ($0.09) |
Weighted average number of shares of common stock: | ' | ' | ' | ' |
Basic (in shares) | 34,950 | 31,692 | 34,885 | 29,094 |
Diluted (in shares) | 35,769 | 31,692 | 34,885 | 29,094 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Stock [Member] | Common stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data, unless otherwise specified | Series A-2 Preferred Stock [Member] | |||||
Beginning Balance, Value at Dec. 31, 2013 | $9,669 | $167 | $4 | $0 | $177,357 | ($167,859) |
Beginning Balance, Shares at Dec. 31, 2013 | ' | 53 | 35,306,000 | ' | ' | ' |
Beginning balance, Treasury Shares at Dec. 31, 2013 | 0 | ' | ' | 0 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net loss | -635 | ' | ' | ' | ' | -635 |
Stock-based compensation | 407 | ' | ' | ' | 407 | ' |
Issuance of restricted stock to settle accrued 2013 bonuses, Shares | ' | ' | 123,000 | ' | ' | ' |
Issuance of restricted stock to settle accrued 2013 bonuses, Value | 204 | ' | 0 | ' | 204 | ' |
Issuance of restricted stock, Shares | ' | ' | 400,000 | ' | ' | ' |
Issuance of restricted stock, Value | 0 | ' | 0 | ' | ' | ' |
Forfeited restricted stock, Shares | -195,000 | ' | ' | ' | ' | ' |
Forfeited restricted stock, Value | 0 | ' | 0 | ' | ' | ' |
Cost of preferred stock exchange | -5 | ' | ' | ' | -5 | ' |
Preferred stock dividends | -15 | ' | ' | ' | -15 | ' |
Options exercised, Shares | ' | ' | 20,000 | ' | ' | ' |
Options exercised, Value | 0 | ' | 0 | ' | ' | ' |
Repurchase of common stock, Shares | ' | ' | ' | 40,000 | ' | ' |
Repurchase of common stock, Value | -66 | ' | ' | -66 | ' | ' |
Issuance of common stock under an at-the-market sales agreement, net of expenses, Shares | ' | ' | 89,000 | ' | ' | ' |
Issuance of common stock under an at-the-market sales agreement, net of expenses, Value | 108 | ' | ' | ' | 108 | ' |
Ending Balance, Value at Sep. 30, 2014 | 9,667 | 167 | 4 | -66 | 178,056 | -168,494 |
Ending Balance, Shares at Sep. 30, 2014 | ' | 53 | 35,743,000 | ' | ' | ' |
Ending balance, Treasury Shares at Sep. 30, 2014 | 40,000 | ' | ' | 40,000 | ' | ' |
Beginning Balance, Value at Sep. 15, 2014 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Issuance of common stock under an at-the-market sales agreement, net of expenses, Shares | ' | ' | 89,000 | ' | ' | ' |
Ending Balance, Value at Sep. 30, 2014 | ' | $167 | $4 | ' | ' | ' |
Ending Balance, Shares at Sep. 30, 2014 | ' | 53 | 35,743,000 | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($635) | ($2,686) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,977 | 2,151 |
Bad debt (recovery) expense | -136 | 104 |
Amortization of deferred financing costs | 67 | 242 |
Amortization of debt discount | 0 | 108 |
Loss on impairment/disposal of equipment | 178 | 680 |
Stock-based compensation expense | 446 | 861 |
Increase (decrease) attributable to changes in assets and liabilities: | ' | ' |
Accounts receivable | 504 | 39 |
Prepaid expenses and other current assets | -538 | 306 |
Other assets | 41 | -278 |
Accounts payable | -611 | 91 |
Accrued expenses and other liabilities | 267 | 194 |
Net cash provided by operating activities | 1,560 | 1,812 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -1,591 | -753 |
Proceeds from sale of equipment | 4 | 2 |
Net cash used in investing activities | -1,587 | -751 |
Cash flows from financing activities: | ' | ' |
Costs of preferred stock exchange | -5 | -106 |
Principal payments for capital lease obligations | -198 | -185 |
Principal payments under borrowing arrangements | -149 | -780 |
Advances on borrowing arrangements | 249 | 0 |
Proceeds from issuance of common stock | 118 | 0 |
Payment of equity issuance costs | -4 | 0 |
Payment of debt issuance costs | -59 | -157 |
Purchase of treasury stock | -66 | 0 |
Net cash used in financing activities | -114 | -1,228 |
Decrease in cash and cash equivalents | -141 | -167 |
Cash at beginning of period | 2,294 | 2,218 |
Cash at end of period | 2,153 | 2,051 |
Supplement disclosures of cash flow information: | ' | ' |
Cash paid during the period for interest | 985 | 858 |
Non-cash investing and financing activities: | ' | ' |
Acquisition of network equipment under capital lease | 0 | 38 |
Preferred stock dividends | 15 | 25 |
Reduction of debt in connection with severance obligations related to acquisition of Affinity | 0 | 240 |
Preferred stock conversion and warrant exchange | 0 | 9,500 |
Accrued capital expenditure | 151 | 0 |
Restricted stock issued to settle accrued 2013 bonuses [Member] | ' | ' |
Non-cash investing and financing activities: | ' | ' |
Stock issued to settle obligations | 165 | 0 |
Stock issued in connection with debt amendment [Member] | ' | ' |
Non-cash investing and financing activities: | ' | ' |
Stock issued to settle obligations | $0 | $147 |
Basis_of_Presentation_and_Liqu
Basis of Presentation and Liquidity | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation and Liquidity | ' |
Basis of Presentation and Liquidity | |
The Business | |
Glowpoint, Inc. (“Glowpoint” or “we” or “us” or the “Company”) is a provider of video collaboration services and network services. Our services enable our customers to use videoconferencing as an efficient and effective method of communication for their business meetings. Our customers include Fortune 1000 companies, along with small and medium enterprises in a variety of industries. We market our services globally through a multi-channel sales approach that includes direct sales and channel partners. | |
The Company was formed as a Delaware corporation in May 2000. The Company operates in one segment and therefore segment information is not presented. | |
Liquidity | |
As of September 30, 2014, we had $2,153,000 of cash and working capital of $1,970,000. Our cash balance as of September 30, 2014 includes restricted cash of $185,000 (as discussed in Note 3). For the nine months ended September 30, 2014, we generated a net loss of $635,000 and net cash provided by operating activities of $1,560,000. We generated cash flow from operations even though we incurred a net loss as our net loss includes non-cash operating expenses (as shown on the condensed consolidated statements of cash flows). | |
In October 2013, the Company entered into a loan agreement by and among the Company and its subsidiaries, and Main Street Capital Corporation (“Main Street”), as lender and as administrative agent and collateral agent for itself and the other lenders from time to time party thereto (the "Main Street Loan Agreement"). The Main Street Loan Agreement provides for an $11,000,000 senior secured term loan facility (“Main Street Term Loan”) and a $2,000,000 senior secured revolving loan facility (the “Main Street Revolver”). As of September 30, 2014, the Company had outstanding borrowings of $9,000,000 under the Main Street Term Loan and $400,000 on the Main Street Revolver. | |
On September 16, 2014, the Company entered into an At Market Issuance Sales Agreement, with MLV & Co. LLC (“MLV”), under which the Company may, at its discretion, sell its common stock with a sales value of up to a maximum of $8,000,000 through at-the-market sales on the NYSE MKT (the "ATM Offering"). MLV acts as sole sales agent for any sales made in the ATM Offering for a 3% commission on gross proceeds. The common stock is being sold at market prices at the time of the sale, and, as a result, prices may vary. Through September 30, 2014, the Company sold 89,000 shares in the ATM Offering at a weighted-average selling price of $1.33 per share for gross proceeds of $118,000. Net proceeds totaled $108,000, reflecting reductions for the 3% commission to MLV and other offering expenses. See Note 8 for further discussion. | |
Based on our current projection of revenue, expenses, capital expenditures and, cash flows the Company believes that it has, and will have, sufficient resources and cash flows to service its debt obligations and fund its operations for at least the next twelve months following the filing of this Quarterly Report on Form 10-Q. As of September 30, 2014, we have availability of $1,600,000 under the Main Street Revolver and $2,000,000 under the Main Street Term Loan (subject to approval by Main Street under the terms of the Main Street Loan Agreement). There can be no assurances, however, that we will be able to access the availability from the Main Street Revolver and/or Main Street Term Loan in the future. There also can be no assurance that we will be able to raise capital through the ATM Offering as may be needed or upon acceptable stock prices. In the event we need access to capital to fund operations and provide growth capital beyond the ATM Offering and our existing Main Street credit facility, we have historically been able to raise capital in private placements. If the current or future economic conditions negatively impact us and we are unable to raise additional capital that may be needed on terms acceptable to us, it could have a material adverse effect on the Company. | |
Quarterly Financial Information and Results of Operations | |
The condensed consolidated financial statements as of September 30, 2014 and for the three and nine months ended September 30, 2014 and 2013 are unaudited and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the financial position as of September 30, 2014, and the results of operations for the three and nine months ended September 30, 2014 and 2013, the statement of stockholders' equity for the nine months ended September 30, 2014 and the statement of cash flows for the nine months ended September 30, 2014 and 2013. The results of operations and cash flows for the three and nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for the entire year. The condensed balance sheet as of December 31, 2013 was derived from audited financial statements as of December 31, 2013. While management of the Company believes that the disclosures presented are adequate to make the information not misleading, these condensed consolidated financial statements should be read in conjunction with audited consolidated financial statements and the footnotes thereto for the fiscal year ended December 31, 2013 as filed with the Securities and Exchange Commission (the "SEC") with our Form 10-K on March 6, 2014 (the "Audited 2013 Financial Statements"). |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Principles of Consolidation | |
The condensed consolidated financial statements include the accounts of Glowpoint and our 100%-owned subsidiaries, Affinity VideoNet, Inc. ("Affinity") and GP Communications, LLC, whose business function is to provide interstate telecommunications services for regulatory purposes. All material inter-company balances and transactions have been eliminated in consolidation. | |
Use of Estimates | |
Preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates made. We continually evaluate estimates used in the preparation of the condensed consolidated financial statements for reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. The significant areas of estimation include determining the allowance for doubtful accounts, deferred tax valuation allowance, accrued sales taxes, the valuation of goodwill, the valuation of intangible assets and their estimated lives, and the estimated lives and recoverability of property and equipment. | |
See "Summary of Significant Accounting Policies" in the Company's Audited 2013 Financial Statements for a discussion on the estimates and judgments necessary in the Company's accounting for financial instruments, concentration of credit risk, goodwill, intangible assets, property and equipment, income taxes, stock-based compensation, and accrued sales taxes and regulatory fees. | |
Accounting Standards Updates | |
On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | |
In August 2014, FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Specifically, ASU 2014-15 provides a definition of the term substantial doubt and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). It also requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans and requires an express statement and other disclosures when substantial doubt is not alleviated. The new standard will be effective for reporting periods beginning after December 15, 2016, with early adoption permitted. Management is currently evaluating the impact of the adoption of ASU 2014-14 on our financial statements and disclosures. | |
Revenue Recognition | |
Revenue billed in advance for video collaboration services is deferred until the revenue has been earned, which is when the related services have been performed. Other service revenue, including amounts passed through based on surcharges from our telecom carriers, related to the network services and collaboration services are recognized as service is provided. As the non-refundable, upfront installation and activation fees charged to the subscribers do not meet the criteria as a separate unit of accounting, they are deferred and recognized over the 12 to 24 month estimated life of the customer relationship. Revenue related to professional services is recognized at the time the services are performed. Revenues derived from other sources are recognized when services are provided or events occur. | |
Allowance for Doubtful Accounts | |
We record an allowance for doubtful accounts based on specifically identified amounts that are believed to be uncollectible. We also record additional allowances based on our aged receivables, which are determined based on historical experience and an assessment of the general financial conditions affecting our customer base. If our actual collections experience changes, revisions to our allowance may be required. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. We do not obtain collateral from our customers to secure accounts receivable. The allowance for doubtful accounts was $63,000 and $221,000 at September 30, 2014 and December 31, 2013, respectively. | |
Taxes Billed to Customers and Remitted to Taxing Authorities | |
We recognize taxes billed to customers in revenue and taxes remitted to taxing authorities in our cost of revenue. For the three and nine months ended September 30, 2014, we included taxes of $314,000 and $968,000, respectively, in revenue, and we included taxes of $306,000 and $929,000, respectively, in cost of revenue. For the three and nine months ended September 30, 2013, we included taxes of $336,000 and $1,004,000, respectively, in revenue, and we included taxes of $320,000 and $955,000, respectively, in cost of revenue. | |
Impairment of Long-Lived Assets and Intangible Assets | |
We evaluate impairment losses on long-lived assets used in operations, primarily fixed assets and purchased intangible assets subject to amortization, when events and circumstances indicate that the carrying value of the assets might not be recoverable. For purposes of evaluating the recoverability of long-lived assets, the undiscounted cash flows estimated to be generated by those assets are compared to the carrying amounts of those assets. If and when the carrying values of the assets exceed their fair values, then the related assets will be written down to fair value. In the nine months ended September 30, 2014, the Company recorded an impairment loss of $101,000 relating to property and equipment, primarily consisting of furniture and leasehold improvements, associated with our former Pennsylvania office (as discussed in Note 8). During the three and nine months ended September 30, 2014, we recorded a loss on disposal of $0 and $4,000, respectively, for network equipment. In the three and nine months ended September 30, 2013, there was an impairment loss of $141,000 and $615,000, respectively, recorded for network equipment and fixed assets no longer being utilized in the Company's business. | |
Goodwill | |
Goodwill is not amortized but is subject to periodic testing for impairment. The test for impairment is conducted annually or more frequently if events occur or circumstances change indicating that the fair value of the goodwill may be below its carrying amount. The Company determined that no events occurred or circumstances changed during the nine months ended September 30, 2014 that would indicate that the fair value of goodwill may be below its carrying amount. However, if market conditions deteriorate, or if the Company is unable to execute on its strategies, it may be necessary to record impairment charges in the future. | |
Capitalized Software Costs | |
The Company capitalizes certain costs incurred in connection with developing or obtaining internal-use software. All software development costs have been appropriately accounted for as required by ASC Topic 350-40 “Intangible – Goodwill and Other – Internal-Use Software”. Capitalized software costs are included in Property and Equipment on our condensed consolidated balance sheets and are amortized over three to four years. Software costs that do not meet capitalization criteria are expensed as incurred. For the three and nine months ended September 30, 2014, we capitalized internal use software costs of $325,000 and $1,295,000, respectively, and we amortized $199,000 and $498,000, respectively, of these costs. For the three and nine months ended September 30, 2013, we capitalized internal-use software costs of $125,000 and $269,000, respectively, and we amortized $122,000 and $381,000, respectively, of these costs. During the three and nine months ended September 30, 2014, we recorded an impairment loss of $0 and $73,000 respectively, for certain software costs previously capitalized. An impairment loss of $0 and $65,000 was recorded during the three and nine months ended September 30, 2013, respectively. |
Restricted_Cash
Restricted Cash | 9 Months Ended |
Sep. 30, 2014 | |
Restricted Cash and Investments [Abstract] | ' |
Restricted Cash | ' |
Restricted Cash | |
As of September 30, 2014, our cash balance of $2,153,000 included restricted cash of $185,000. The $185,000 letter of credit that serves as the security deposit for our lease of office space in Colorado (as discussed in Note 12) is secured by an equal amount of cash pledged as collateral and such cash is held in a restricted bank account. As of December 31, 2013, our cash balance of $2,294,000 included restricted cash of $242,000. | |
Accrued_Expenses_and_Other_Lia
Accrued Expenses and Other Liabilities | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Accrued Expenses and Other Liabilities | ' | |||||||
Accrued Expenses and Other Liabilities | ||||||||
Accrued expenses and other liabilities consisted of the following (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Accrued compensation | $ | 376 | $ | 755 | ||||
Accrued severance costs | 1 | 306 | ||||||
Accrued communication costs | 808 | 328 | ||||||
Accrued professional fees | 191 | 138 | ||||||
Accrued lease termination | 75 | — | ||||||
Accrued interest | 140 | 137 | ||||||
Other accrued expenses | 447 | 253 | ||||||
Deferred revenue | 103 | 197 | ||||||
Customer deposits | 436 | 163 | ||||||
Accrued expenses and other liabilities | $ | 2,577 | $ | 2,277 | ||||
Debt
Debt | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
Debt | ' | ||||||
Debt | |||||||
Long-term debt consisted of the following (in thousands): | |||||||
September 30, 2014 | December 31, 2013 | ||||||
SRS Note | $ | 1,885 | $ | 1,885 | |||
Main Street Term Loan | 9,000 | 9,000 | |||||
Main Street Revolver | 400 | 300 | |||||
11,285 | 11,185 | ||||||
Less current maturities | (400 | ) | (950 | ) | |||
Long-term debt, net of current portion | $ | 10,885 | $ | 10,235 | |||
On October 17, 2013, the Company entered into the Main Street Loan Agreement by and among the Company and its subsidiaries, and Main Street Capital Corporation, as lender and as administrative agent and collateral agent for itself and the other lenders from time to time party thereto. The Main Street Loan Agreement provides for an $11,000,000 senior secured term loan facility and a $2,000,000 senior secured revolving loan facility. As of September 30, 2014, the Company had outstanding borrowings of $9,000,000 under the Main Street Term Loan and $400,000 on the Main Street Revolver. | |||||||
Borrowings under the Main Street Term Loan and Main Street Revolver mature on October 17, 2018 and October 17, 2015, respectively, unless sooner terminated as provided in the Main Street Loan Agreement. The Main Street Loan Agreement provides that the Main Street Term Loan borrowings bear interest at 12% per annum and the Main Street Revolver borrowings bear interest at 8% per annum. Interest payments on the outstanding borrowings under both the Main Street Term Loan and Main Street Revolver are due monthly. The Company is required to make quarterly principal payments on the Main Street Term Loan as follows: (i) from February 15, 2014 to April 15, 2015 in an amount equal to 33% of Excess Cash Flow generated by the Company (as defined in the Main Street Loan Agreement and effectively equal to cash flow from operations less capital expenditures less principal payments on capital leases) during the trailing fiscal quarter and (ii) from August 15, 2015 to August 15, 2018 in an amount equal to 50% of Excess Cash Flow generated by the Company during the trailing fiscal quarter. In the event there are outstanding borrowings on the Main Street Revolver, any quarterly principal payments are first applied to the Main Street Revolver and then to the Main Street Term Loan. During the three and nine months ended September 30, 2014, the Company made principal payments of $46,000 and $149,000, respectively, on the Main Street Revolver and no principal payments on the Main Street Term Loan. During the three and nine months ended September 30, 2014, the Company received advances on the Main Street Revolver of $249,000. | |||||||
As of September 30, 2014, the current portion of long-term debt recorded on the Company's balance sheet was $400,000 and represents the outstanding borrowings on the Main Street Revolver. The Company expects that any principal payments under the Main Street Loan Agreement, which are based on a percentage of Excess Cash Flow as discussed above, will be applied to outstanding borrowings on the Main Street Revolver during the twelve months ending September 30, 2015. Therefore, the Company expects that no principal payments will be applied against the Main Street Term Loan during the twelve months ended September 30, 2015; and thus all outstanding borrowings on the Main Street Term Loan are classified as long term debt as of September 30, 2014. The principal payments related to these debt agreements are estimates and actual payments may vary. | |||||||
The Company may prepay borrowings under the Main Street Loan Agreement at any time without premium or penalty, subject to certain notice and minimum prepayment requirements. The obligations of the Company under the Main Street Loan Agreement are secured by substantially all of the assets of the Company, including all intellectual property, equity interests in subsidiaries, equipment and other personal property. The Main Street Loan Agreement contains standard representations, warranties and covenants for a transaction of its nature, including, among other things, covenants relating to (i) financial reporting and notification, (ii) payment of obligations, (iii) compliance with applicable laws and (iv) notification of certain events. The Main Street Loan Agreement also contains various covenants and restrictive provisions which may, among other things, limit the Company's ability to sell assets, incur additional indebtedness, make investments or loans and create liens. The Main Street Loan Agreement also contains financial covenants, including a fixed charge coverage ratio covenant and a debt to Adjusted EBITDA ratio covenant. Adjusted EBITDA, a non-GAAP financial measure, is defined as net income (loss) before depreciation, amortization, taxes, severance, acquisition costs, stock-based compensation, impairment charges and interest and other expense, net. The Main Street Loan Agreement contains events of default customary for similar financings with corresponding grace periods, including failure to pay any principal or interest when due, failure to perform or observe covenants, breaches of representations and warranties, certain cross defaults, certain bankruptcy related events, monetary judgments defaults and a change in control. Upon the occurrence of an event of default, the outstanding obligations under the Main Street Loan Agreement may be accelerated and become immediately due and payable. As of September 30, 2014, the Company was in compliance with all required covenants. | |||||||
In connection with the October 2012 acquisition of Affinity, the Company issued a promissory note (the “SRS Note”) to Shareholder Representative Services LLC ("SRS"), on behalf of the prior stockholders of Affinity. As of December 31, 2013 and September 30, 2014, the principal balance on the SRS Note was $1,885,000. The interest rate on the SRS Note is 10.0% per annum and interest is payable quarterly in arrears. The final maturity date of the SRS Note is January 4, 2016 and the Company is required to make monthly principal payments in the amount of $50,000 in the event the Company's trailing three month Adjusted EBITDA exceeds $1,500,000. The Company is required to make additional payments on the principal amount on December 31, 2014 in an amount equal to 40% of the Company’s trailing six month Adjusted EBITDA less $3,000,000. As of September 30, 2014, the Company has not made any principal payments on the SRS Note as the Company has not yet met the Adjusted EBITDA threshold. | |||||||
Unamortized financing costs related to our debt agreements of $88,000 are included in prepaid expenses and other current assets and $210,000 are included in other assets as of September 30, 2014, in the accompanying condensed consolidated balance sheet. Unamortized financing costs related to our debt agreements of $363,000 are included in other assets as of December 31, 2013. The financing costs are amortized using the effective interest method over the term of each loan through each maturity date. During the three months ended September 30, 2014 and 2013, there was $23,000 and $121,000 respectively, of amortization of financing costs, and $0 and $39,000 respectively, of amortization of debt discount. During the nine months ended September 30, 2014 and 2013, there was $67,000 and $242,000 respectively, of amortization of financing costs, and $0 and $108,000 respectively, of amortization of debt discount. |
Capital_Lease_Obligations
Capital Lease Obligations | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Capital Lease Obligations | ' | |||||||||||
Capital Lease Obligations | ||||||||||||
During the nine months ended September 30, 2014, the Company did not enter into any non-cancelable capital lease agreements. Depreciation expense on the equipment under the capital lease obligations for the three and nine months ended September 30, 2014 and 2013 was $41,000 and $124,000, respectively, and $40,000 and $120,000, respectively. Future minimum commitments under all non-cancelable capital leases as of September 30, 2014, are as follows (in thousands): | ||||||||||||
Year Ended December 31, | Total | Interest | Principal | |||||||||
Remaining 2014 | 20 | 1 | 19 | |||||||||
2015 | 43 | 1 | 42 | |||||||||
2016 | 1 | — | 1 | |||||||||
$ | 64 | $ | 2 | $ | 62 | |||||||
As of September 30, 2014 the current portion of the Company's capital lease obligations is $57,000 and the long-term portion is $5,000. |
Preferred_Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2014 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' |
Preferred Stock | ' |
Preferred Stock | |
Our Certificate of Incorporation authorizes the issuance of up to 5,000,000 shares of preferred stock. As of September 30, 2014, there were: 100 shares of Series B-1 Preferred Stock authorized, and no shares issued or outstanding; 7,500 shares of Series A-2 Preferred Stock authorized and 53 shares issued and outstanding; and 4,000 shares of Series D Preferred Stock authorized and no shares issued or outstanding. | |
Each share of Series A-2 Preferred Stock has a stated value of $7,500 per share (the “A-2 Stated Value”), a liquidation preference equal to the Series A-2 Stated Value, and is convertible at the holder’s election into Common Stock at a conversion price per share of $2.9959 as of September 30, 2014. Therefore, each share of Series A-2 Preferred Stock is convertible into 2,500 shares of Common Stock as of September 30, 2014. The conversion price is subject to adjustment upon the occurrence of certain events set forth in our Certificate of Incorporation. During the three months ended September 30, 2014, the conversion price was adjusted from $3.00 per share to $2.9959 per share as a result of sales in the ATM Offering during this period. The Series A-2 Preferred Stock is subordinate to the Series B-1 Preferred Stock but senior to all other classes of equity, has weighted average anti-dilution protection and, commencing on January 1, 2013, is entitled to cumulative dividends at a rate of 5% per annum, payable quarterly, based on the Series A-2 Stated Value. Once dividend payments commence, all dividends are payable at the option of the holder in cash or through the issuance of a number of additional shares of Series A-2 Preferred Stock with an aggregate liquidation preference equal to the dividend amount payable on the applicable dividend payment date. As of September 30, 2014, the Company has recorded approximately $35,000 in accrued dividends on the accompanying condensed consolidated balance sheet related to the Series A-2 Preferred Stock. |
Common_Stock_Notes
Common Stock (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
Common Stock | ' |
Common Stock | |
On September 16, 2014, the Company entered into an At Market Issuance Sales Agreement, with MLV & Co. LLC (“MLV”), under which the Company may, at its discretion, sell its common stock with a sales value of up to a maximum of $8,000,000 through at-the-market sales on the NYSE MKT (the "ATM Offering"). MLV acts as sole sales agent for any sales made in the ATM Offering for a 3% commission on gross proceeds. The common stock is being sold at market prices at the time of the sale, and, as a result, prices may vary. Sales in the ATM Offering are being made pursuant to the prospectus supplement dated September 16, 2014, which supplements the Company's prospectus dated January 22, 2013, filed as part of the shelf registration statement that was declared effective by the Securities and Exchange Commission (“SEC”) on January 22, 2013. Through September 30, 2014, the Company sold 89,000 shares in the ATM Offering at a weighted-average selling price of $1.33 per share for gross proceeds of $118,000. Net proceeds totaled $108,000, reflecting reductions for the 3% commission to MLV and other offering expenses. The Company has recorded approximately $100,000 of expenses for the offering, excluding MLV commissions, in prepaid expenses and other current assets as of September 30, 2014. The Company will charge these costs against additional paid-in capital as shares are sold under the ATM Offering. During the three and nine ended September 30, 2014, $6,000 of such costs were recorded against additional paid-in capital. |
Stock_Options
Stock Options (Stock Options [Member]) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Stock Options [Member] | ' | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||||||
Stock Options | ' | |||||||||||||||
Stock Options | ||||||||||||||||
On April 22, 2014, the Board of Directors of the Company (the “Board”) adopted the Glowpoint, Inc. 2014 Equity Incentive Plan (the “2014 Plan”), subject to requisite stockholder approval. On May 28, 2014, the 2014 Plan was approved by the Company’s stockholders at the Company’s 2014 Annual Meeting of Stockholders. Also on May 28, 2014, the Board terminated the Company’s 2007 Stock Incentive Plan (the “2007 Plan”). Notwithstanding the termination of the 2007 Plan, outstanding awards under the 2007 Plan will remain in effect accordance with their terms. | ||||||||||||||||
The purpose of the 2014 Plan is to promote the success of the Company and to increase stockholder value by providing an additional means to attract, motivate, retain and reward selected employees and other eligible persons through the grant of equity awards. Awards may be granted under the 2014 Plan to officers, employees, directors and consultants of the Company or its subsidiaries. The 2014 Plan permits the grant of stock options, stock appreciation rights, restricted shares, restricted stock units, cash awards and other awards, including stock bonuses, performance stock, performance units, dividend equivalents, or similar rights to purchase or acquire shares, whether at a fixed or variable price or ratio related to the Company’s common stock, upon the passage of time, the occurrence of one or more events, or the satisfaction of performance criteria or other conditions, or any combination thereof, or any similar securities with a value derived from the value of or related to the Company’s common stock and/or returns thereon. A total of 4,400,000 shares of the Company’s common stock are available for issuance pursuant to awards under the 2014 Plan. No awards were granted under the 2014 Plan during the three and nine months ended September 30, 2014. | ||||||||||||||||
A summary of stock options granted, exercised, expired and forfeited under our stock incentive plans and stock options outstanding as of, and changes made during, the nine months ended September 30, 2014, is presented below (shares in thousands): | ||||||||||||||||
Outstanding | Exercisable | |||||||||||||||
Number of Shares Underlying Options | Weighted | Number of Shares Underlying Options | Weighted | |||||||||||||
Average | Average | |||||||||||||||
Exercise | Exercise | |||||||||||||||
Price | Price | |||||||||||||||
Options outstanding, December 31, 2013 | 1,792 | $ | 2.21 | 410 | $ | 2.71 | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | (50 | ) | 0.9 | |||||||||||||
Expired | (50 | ) | 5.29 | |||||||||||||
Forfeited and canceled | (333 | ) | 2.71 | |||||||||||||
Options outstanding, September 30, 2014 | 1,359 | $ | 2.02 | 675 | $ | 2.06 | ||||||||||
For the nine months ended September 30, 2014, 50,000 options were exercised and converted into 20,000 shares of common stock. For the nine months ended September 30, 2014, there were no options granted and 50,000 options expired. The weighted average fair value of each option granted is estimated on the date of grant using the Black-Scholes option valuation model with the weighted average assumptions during the nine months ended September 30, 2013 as shown in the table below. No assumptions are presented for the three and nine months ended September 30, 2014 as no options were granted during this period. | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | ||||||||||||||||
Risk free interest rate | 0.80% | |||||||||||||||
Expected option lives | 5 years | |||||||||||||||
Expected volatility | 103.20% | |||||||||||||||
Estimated forfeiture rate | 10% | |||||||||||||||
Expected dividend yields | — | |||||||||||||||
Weighted average grant date fair value of options | $1.39 | |||||||||||||||
The risk free interest rate is based on U.S. Treasury yields for securities in effect at the time of grants with terms approximating the expected life of the grants. The expected option lives and forfeiture rates are estimated based on the Company’s exercise and employment termination experience. The Company calculates expected volatility for a stock-based grant based on historic daily stock price observations of its Common Stock during the period immediately preceding the grant that is equal in length to the expected term of the grant. The assumptions used in the Black-Scholes option valuation model are highly subjective and can materially affect the resulting valuations. | ||||||||||||||||
Stock option compensation expense is allocated as follows for the three and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
General and administrative | 103 | 146 | 254 | 503 | ||||||||||||
$ | 103 | $ | 146 | $ | 254 | $ | 503 | |||||||||
The remaining unrecognized stock-based compensation expense for options as of September 30, 2014 was $908,000, of which $20,000, representing 10,000 options, will only be expensed upon a “change in control” as defined in our stock incentive plan, and the remaining $888,000 will be amortized over a weighted average period of approximately 2.12 years. | ||||||||||||||||
There was no tax benefit recognized for stock-based compensation for the three and nine months ended September 30, 2014 or 2013. No compensation costs were capitalized as part of the cost of an asset during the periods presented. |
Restricted_Stock
Restricted Stock (Restricted Stock [Member]) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Restricted Stock [Member] | ' | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||||||
Restricted Stock | ' | |||||||||||||||
Restricted Stock | ||||||||||||||||
A summary of restricted stock granted, vested, forfeited and unvested outstanding as of, and changes made during, the nine months ended September 30, 2014, is presented below (shares in thousands): | ||||||||||||||||
Restricted Shares | Weighted Average | |||||||||||||||
Grant Price | ||||||||||||||||
Unvested restricted shares outstanding, December 31, 2013 | 465 | $ | 2.03 | |||||||||||||
Granted | 522 | 1.53 | ||||||||||||||
Vested | (122 | ) | 1.54 | |||||||||||||
Forfeited | (195 | ) | 2.43 | |||||||||||||
Unvested restricted shares outstanding, September 30, 2014 | 670 | $ | 1.61 | |||||||||||||
The number of restricted shares vested during the nine months ended September 30, 2014 includes 40,000 shares withheld and repurchased by the Company on behalf of employees to satisfy $66,000 of minimum statutory tax withholding requirements. Such shares are held in the Company's treasury stock as of September 30, 2014. | ||||||||||||||||
Restricted stock compensation expense is allocated as follows for the three and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenue | $ | 7 | $ | 3 | $ | 30 | $ | 11 | ||||||||
Research and development | 3 | — | 9 | 3 | ||||||||||||
Sales and marketing | 10 | 12 | 19 | 38 | ||||||||||||
General and administrative | 33 | 10 | 134 | 306 | ||||||||||||
$ | 53 | $ | 25 | $ | 192 | $ | 358 | |||||||||
During the nine months ended September 30, 2014, additional paid in capital was increased by $204,000 relating to the issuance of restricted stock for settlement of bonuses, of which $165,000 was recorded in accrued expenses as of December 31, 2013. Stock based compensation expense related to these accrued bonuses was recorded during the year ended December 31, 2013. | ||||||||||||||||
The remaining unrecognized stock-based compensation expense for restricted stock as of September 30, 2014 was $765,000, of which $38,000, representing 15,000 shares, will only be expensed upon a “change in control” and the remaining $727,000 will be amortized over a weighted average period of 2.90 years. | ||||||||||||||||
There was no tax benefit recognized for stock-based compensation for the three and nine months ended September 30, 2014 or 2013. No compensation costs were capitalized as part of the cost of an asset during the periods presented. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings (Loss) Per Share | ' | |||||||||||||||
Earnings (Loss) Per Share | ||||||||||||||||
Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The weighted-average number shares of common stock outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. These unvested restricted shares, although classified as issued and outstanding at September 30, 2014 and 2013, are considered contingently returnable until the restrictions lapse and will not be included in the basic earnings per share calculation until the shares are vested. Unvested shares of our restricted stock do not contain non-forfeitable rights to dividends and dividend equivalents. | ||||||||||||||||
Diluted earnings per share includes the effect of all potentially dilutive securities on earnings per share. The difference between basic and diluted weighted-average shares outstanding was the dilutive effect of unvested restricted stock, stock options, and preferred stock, for the three months ended September 30, 2014. | ||||||||||||||||
The following table represents a reconciliation of the basic and diluted earnings per share computations contained in our condensed consolidated financial statements (in thousands, except per share data): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income (loss) | $ | 198 | $ | (551 | ) | $ | (635 | ) | $ | (2,686 | ) | |||||
Less: Preferred stock dividends | 5 | (185 | ) | 15 | 25 | |||||||||||
Net income (loss) attributable to common stockholders | $ | 193 | $ | (366 | ) | $ | (650 | ) | $ | (2,711 | ) | |||||
Weighted average shares outstanding - basic | 34,950 | 31,692 | 34,885 | 29,094 | ||||||||||||
Add effect of dilutive securities: | ||||||||||||||||
Unvested restricted stock | 670 | — | — | — | ||||||||||||
Shares of common stock issuable upon conversion of preferred stock, Series A-2 | 132 | — | — | — | ||||||||||||
Stock options | 17 | — | — | — | ||||||||||||
Weighted average shares outstanding - diluted | 35,769 | 31,692 | 34,885 | 29,094 | ||||||||||||
Basic net income (loss) per share | $ | 0.01 | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.09 | ) | |||||
Diluted net income (loss) per share | $ | 0.01 | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.09 | ) | |||||
The weighted-average diluted shares of common stock outstanding for the three months ended September 30, 2014 excludes the effect of 1,283,000 out-of-the-money options, because their effect would be anti-dilutive. | ||||||||||||||||
For the nine months ended September 30, 2014 and 2013, and the three months ended September 30, 2013, diluted net loss per share is the same as basic net loss per share due to the Company's net loss attributable to common stockholders and the potential shares of common stock that could have been issuable have been excluded from the calculation of diluted net loss per share because the effects, as a result of our net loss attributable to common stockholders, would be anti-dilutive. The following table sets forth the potential shares of common stock that were excluded from diluted weighted-average shares of common stock outstanding (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Unvested restricted stock | 670 | 534 | 670 | 534 | ||||||||||||
Shares of common stock issuable upon conversion of preferred stock, Series A-2 | 132 | 133 | 132 | 133 | ||||||||||||
Stock options outstanding | 1,358 | 1,924 | 1,358 | 1,924 | ||||||||||||
Warrants | — | 33 | — | 33 | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ||||
Operating Leases | ||||
We lease several facilities under operating leases expiring through 2018. Certain leases require us to pay increases in real estate taxes, operating costs and repairs over certain base year amounts. Lease payments for the three and nine months ended September 30, 2014 were $166,000 and $485,000, respectively. Lease payments for the three and nine months ended September 30, 2013 were $191,000 and $575,000, respectively. | ||||
During the first quarter of 2014, the Company vacated its Pennsylvania office space and recorded an impairment charge of $225,000 representing the estimated net present value of the Company’s contractual obligation over the remaining lease term, adjusted for estimated sublease payments and other associated costs. This impairment charge is recorded in General and Administrative expenses on the Company’s condensed consolidated statements of operations for the nine months ended September 30, 2014. Effective August 15, 2014, the Company entered into a termination agreement relating to this lease. In exchange for the Company's termination payment of $150,000, half of which was paid in August 2014 and half of which will be paid in January 2015, the Company was released from all future obligations under the lease. As of September 30, 2014, the remaining $75,000 termination payment is recorded in accrued expenses. | ||||
Future minimum rental commitments under all non-cancelable operating leases as of September 30, 2014, are as follows (in thousands): | ||||
Year Ending December 31, | ||||
Remaining 2014 | $ | 195 | ||
2015 | 395 | |||
2016 | 439 | |||
2017 | 401 | |||
2018 | 309 | |||
2019 | 88 | |||
2020 | 15 | |||
$ | 1,842 | |||
In July 2014, the Company entered into an operating lease for office space in Oxnard, California to replace other office space the Company currently rents in California on a month-to-month basis. The estimated commencement date for this lease is December 1, 2014 and the term of the lease is for 64 months. The monthly rent expense for this office space will approximate $7,000. The future minimum lease commitments shown above include commitments for this new operating lease. | ||||
The Company currently leases office space for our New Jersey location through December 31, 2014. The future minimum lease commitments include $90,000 in 2014 for our New Jersey location. The future minimum lease commitments do not include any future lease commitments for the New Jersey location beyond December 31, 2014. We plan to lease office space in a different location in New Jersey. | ||||
Commercial Commitments | ||||
We have entered into a number of agreements with telecommunications companies to purchase communications services. Some of the agreements require a minimum amount of services to be purchased over the life of the agreement, or during a specified period of time. | ||||
Glowpoint believes that it will meet its commercial commitments. Historically, in certain instances where Glowpoint did not meet the minimum commitments, no penalties for minimum commitments have been assessed and the Company has entered into new agreements. It has been our experience that the prices and terms of successor agreements are similar to those offered by other carriers. | ||||
Glowpoint does not believe that any loss contingency related to a potential shortfall should be recorded in the condensed consolidated financial statements because it is not probable, from the information available and from prior experience, that Glowpoint has incurred a liability. | ||||
Letters of Credit | ||||
As of September 30, 2014, the Company had an outstanding irrevocable standby letter of credit with Comerica Bank for $185,000 to serve as our security deposit for our lease of office space in Colorado. See Note 3. |
Major_Customers
Major Customers | 9 Months Ended |
Sep. 30, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Major Customers | ' |
Major Customers | |
Major customers are those customers or wholesale partners that account for more than 10% of revenues. For the three and nine months ended September 30, 2014, approximately 11% and 11% of revenues, respectively, were derived from one major wholesale partner and the accounts receivable from this major partner represented approximately 12% of total accounts receivable as of September 30, 2014. The Company also had one other customer that represented 16% of accounts receivable at September 30, 2014. For the three and nine months ended September 30, 2013, approximately 20% and 21% of revenues, respectively, were derived from two major wholesale partners. The loss of any one of these partners without the replacement of such revenue from other existing or new partners would have a material adverse effect on the Company’s financial results and operations. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
The Company provides video collaboration services to ABM Industries, Inc. ("ABM"). James S. Lusk, who serves on the Board of Directors of the Company, is an officer of ABM. Revenue from ABM for the nine months ended September 30, 2014 and 2013 was $99,000 and $103,000, respectively. As of September 30, 2014, the accounts receivable attributable to ABM was $11,000. | |
The Company received general corporate strategy and management consulting services under a Consulting Agreement entered into on September 1, 2010 from Jon A. DeLuca (the “Consulting Agreement”), who until April 4, 2014 served as a member of our Board of Directors. The Consulting Agreement was a month-to-month engagement pursuant to which the Company paid Mr. DeLuca $12,500 per month, plus any pre-authorized expenses incurred in providing services. The Consulting Agreement was terminated on April 4, 2014 in connection with Mr. DeLuca’s resignation as a director of the Company. Related party consulting fees pursuant to this agreement for the nine months ended September 30, 2014 and 2013 were $39,000 and $113,000, respectively; and such fees have been recorded in General and Administrative expenses on the Company's condensed consolidated statements of operations. As of September 30, 2014, there were no remaining payment obligations to Mr. DeLuca. | |
During 2013, the Company received financial advisory services from Burnham Hill Partners, LLC ("BHP") under certain engagement agreements. Jason Adelman, a principal of BHP, is a greater than 5% shareholder of the Company. In October 2013, the Company terminated all such engagement agreements with BHP. Financial advisory fees for BHP for the nine months ended September 30, 2014 and 2013 were $0 and $196,000, respectively; and such fees have been recorded in General and Administrative expenses on the Company's condensed consolidated statements of operations. As of September 30, 2014, there were no remaining payment obligations to BHP. | |
Pursuant to a Sales Partner Agreement between Glowpoint and Nancy K. Holst, Ms. Holst was entitled to certain sales commissions. Ms. Holst is the wife of Peter Holst, the Company's President and CEO. The Company terminated the Sales Partner Agreement with Ms. Holst effective December 31, 2013. For the nine months ended September 30, 2014 and 2013, she earned the sum of $0 and $18,000, respectively; and such fees have been recorded in Sales and Marketing expenses on the Company's condensed consolidated statements of operations. As of September 30, 2014, there were no remaining payment obligations to Ms. Holst. | |
As of September 30, 2014, Peter Holst, the Company's President and CEO and a prior stockholder of Affinity, held a 27% interest in the SRS Note, which was issued to SRS on behalf of the prior stockholders of Affinity in October 2012. See Note 5 for a description of the terms of the SRS Note. | |
As of September 30, 2014, GP Investment Holdings, LLC (“GPI”) owns 15,276,138 shares, or 43%, of the Company’s common stock. GPI is an investment vehicle affiliated with Main Street Capital Corporation, our debt lender, along with individual investors (see Note 5). | |
Transactions with related parties, including the transactions referred to above, are reviewed and approved by independent members of the Board of Directors of the Company. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The condensed consolidated financial statements include the accounts of Glowpoint and our 100%-owned subsidiaries, Affinity VideoNet, Inc. ("Affinity") and GP Communications, LLC, whose business function is to provide interstate telecommunications services for regulatory purposes. All material inter-company balances and transactions have been eliminated in consolidation. | |
Use of Estimates | ' |
Use of Estimates | |
Preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates made. We continually evaluate estimates used in the preparation of the condensed consolidated financial statements for reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. The significant areas of estimation include determining the allowance for doubtful accounts, deferred tax valuation allowance, accrued sales taxes, the valuation of goodwill, the valuation of intangible assets and their estimated lives, and the estimated lives and recoverability of property and equipment. | |
See "Summary of Significant Accounting Policies" in the Company's Audited 2013 Financial Statements for a discussion on the estimates and judgments necessary in the Company's accounting for financial instruments, concentration of credit risk, goodwill, intangible assets, property and equipment, income taxes, stock-based compensation, and accrued sales taxes and regulatory fees. | |
Accounting Standards Updates | ' |
Accounting Standards Updates | |
On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | |
In August 2014, FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Specifically, ASU 2014-15 provides a definition of the term substantial doubt and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). It also requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans and requires an express statement and other disclosures when substantial doubt is not alleviated. The new standard will be effective for reporting periods beginning after December 15, 2016, with early adoption permitted. Management is currently evaluating the impact of the adoption of ASU 2014-14 on our financial statements and disclosures. | |
Revenue Recognition | ' |
Revenue Recognition | |
Revenue billed in advance for video collaboration services is deferred until the revenue has been earned, which is when the related services have been performed. Other service revenue, including amounts passed through based on surcharges from our telecom carriers, related to the network services and collaboration services are recognized as service is provided. As the non-refundable, upfront installation and activation fees charged to the subscribers do not meet the criteria as a separate unit of accounting, they are deferred and recognized over the 12 to 24 month estimated life of the customer relationship. Revenue related to professional services is recognized at the time the services are performed. Revenues derived from other sources are recognized when services are provided or events occur. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
We record an allowance for doubtful accounts based on specifically identified amounts that are believed to be uncollectible. We also record additional allowances based on our aged receivables, which are determined based on historical experience and an assessment of the general financial conditions affecting our customer base. If our actual collections experience changes, revisions to our allowance may be required. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. We do not obtain collateral from our customers to secure accounts receivable. | |
Taxes Billed to Customers and Remitted to Taxing Authorities | ' |
Taxes Billed to Customers and Remitted to Taxing Authorities | |
We recognize taxes billed to customers in revenue and taxes remitted to taxing authorities in our cost of revenue. | |
Impairment of Long-Lived Assets and Intangible Assets | ' |
Impairment of Long-Lived Assets and Intangible Assets | |
We evaluate impairment losses on long-lived assets used in operations, primarily fixed assets and purchased intangible assets subject to amortization, when events and circumstances indicate that the carrying value of the assets might not be recoverable. For purposes of evaluating the recoverability of long-lived assets, the undiscounted cash flows estimated to be generated by those assets are compared to the carrying amounts of those assets. If and when the carrying values of the assets exceed their fair values, then the related assets will be written down to fair value. | |
Goodwill | ' |
Goodwill | |
Goodwill is not amortized but is subject to periodic testing for impairment. The test for impairment is conducted annually or more frequently if events occur or circumstances change indicating that the fair value of the goodwill may be below its carrying amount. The Company determined that no events occurred or circumstances changed during the nine months ended September 30, 2014 that would indicate that the fair value of goodwill may be below its carrying amount. However, if market conditions deteriorate, or if the Company is unable to execute on its strategies, it may be necessary to record impairment charges in the future. | |
Capitalized Software Costs | ' |
Capitalized Software Costs | |
The Company capitalizes certain costs incurred in connection with developing or obtaining internal-use software. All software development costs have been appropriately accounted for as required by ASC Topic 350-40 “Intangible – Goodwill and Other – Internal-Use Software”. Capitalized software costs are included in Property and Equipment on our condensed consolidated balance sheets and are amortized over three to four years. Software costs that do not meet capitalization criteria are expensed as incurred. |
Accrued_Expenses_and_Other_Lia1
Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Schedule of Accrued Expenses | ' | |||||||
Accrued expenses and other liabilities consisted of the following (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Accrued compensation | $ | 376 | $ | 755 | ||||
Accrued severance costs | 1 | 306 | ||||||
Accrued communication costs | 808 | 328 | ||||||
Accrued professional fees | 191 | 138 | ||||||
Accrued lease termination | 75 | — | ||||||
Accrued interest | 140 | 137 | ||||||
Other accrued expenses | 447 | 253 | ||||||
Deferred revenue | 103 | 197 | ||||||
Customer deposits | 436 | 163 | ||||||
Accrued expenses and other liabilities | $ | 2,577 | $ | 2,277 | ||||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
Schedule of Long-term Debt Instruments | ' | ||||||
Long-term debt consisted of the following (in thousands): | |||||||
September 30, 2014 | December 31, 2013 | ||||||
SRS Note | $ | 1,885 | $ | 1,885 | |||
Main Street Term Loan | 9,000 | 9,000 | |||||
Main Street Revolver | 400 | 300 | |||||
11,285 | 11,185 | ||||||
Less current maturities | (400 | ) | (950 | ) | |||
Long-term debt, net of current portion | $ | 10,885 | $ | 10,235 | |||
Capital_Lease_Obligations_Tabl
Capital Lease Obligations (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Schedule of Future Minimum Commitments Under Non-cancelable Capital Leases | ' | |||||||||||
Future minimum commitments under all non-cancelable capital leases as of September 30, 2014, are as follows (in thousands): | ||||||||||||
Year Ended December 31, | Total | Interest | Principal | |||||||||
Remaining 2014 | 20 | 1 | 19 | |||||||||
2015 | 43 | 1 | 42 | |||||||||
2016 | 1 | — | 1 | |||||||||
$ | 64 | $ | 2 | $ | 62 | |||||||
Stock_Options_Tables
Stock Options (Tables) (Stock Options [Member]) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Stock Options [Member] | ' | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||||||
Summary of options granted, exercised, expired and forfeited | ' | |||||||||||||||
A summary of stock options granted, exercised, expired and forfeited under our stock incentive plans and stock options outstanding as of, and changes made during, the nine months ended September 30, 2014, is presented below (shares in thousands): | ||||||||||||||||
Outstanding | Exercisable | |||||||||||||||
Number of Shares Underlying Options | Weighted | Number of Shares Underlying Options | Weighted | |||||||||||||
Average | Average | |||||||||||||||
Exercise | Exercise | |||||||||||||||
Price | Price | |||||||||||||||
Options outstanding, December 31, 2013 | 1,792 | $ | 2.21 | 410 | $ | 2.71 | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | (50 | ) | 0.9 | |||||||||||||
Expired | (50 | ) | 5.29 | |||||||||||||
Forfeited and canceled | (333 | ) | 2.71 | |||||||||||||
Options outstanding, September 30, 2014 | 1,359 | $ | 2.02 | 675 | $ | 2.06 | ||||||||||
Weighted average grant date fair value of options | ' | |||||||||||||||
The weighted average fair value of each option granted is estimated on the date of grant using the Black-Scholes option valuation model with the weighted average assumptions during the nine months ended September 30, 2013 as shown in the table below. No assumptions are presented for the three and nine months ended September 30, 2014 as no options were granted during this period. | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | ||||||||||||||||
Risk free interest rate | 0.80% | |||||||||||||||
Expected option lives | 5 years | |||||||||||||||
Expected volatility | 103.20% | |||||||||||||||
Estimated forfeiture rate | 10% | |||||||||||||||
Expected dividend yields | — | |||||||||||||||
Weighted average grant date fair value of options | $1.39 | |||||||||||||||
Stock option compensation expense is allocated | ' | |||||||||||||||
Stock option compensation expense is allocated as follows for the three and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
General and administrative | 103 | 146 | 254 | 503 | ||||||||||||
$ | 103 | $ | 146 | $ | 254 | $ | 503 | |||||||||
Restricted_Stock_Tables
Restricted Stock (Tables) (Restricted Stock [Member]) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Restricted Stock [Member] | ' | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||||||
Summary of restricted stock granted, vested, forfeited and unvested outstanding | ' | |||||||||||||||
A summary of restricted stock granted, vested, forfeited and unvested outstanding as of, and changes made during, the nine months ended September 30, 2014, is presented below (shares in thousands): | ||||||||||||||||
Restricted Shares | Weighted Average | |||||||||||||||
Grant Price | ||||||||||||||||
Unvested restricted shares outstanding, December 31, 2013 | 465 | $ | 2.03 | |||||||||||||
Granted | 522 | 1.53 | ||||||||||||||
Vested | (122 | ) | 1.54 | |||||||||||||
Forfeited | (195 | ) | 2.43 | |||||||||||||
Unvested restricted shares outstanding, September 30, 2014 | 670 | $ | 1.61 | |||||||||||||
Schedule of share-based compensation, Restricted stock, Allocation of recognized period costs | ' | |||||||||||||||
Restricted stock compensation expense is allocated as follows for the three and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenue | $ | 7 | $ | 3 | $ | 30 | $ | 11 | ||||||||
Research and development | 3 | — | 9 | 3 | ||||||||||||
Sales and marketing | 10 | 12 | 19 | 38 | ||||||||||||
General and administrative | 33 | 10 | 134 | 306 | ||||||||||||
$ | 53 | $ | 25 | $ | 192 | $ | 358 | |||||||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||||||||||
The following table represents a reconciliation of the basic and diluted earnings per share computations contained in our condensed consolidated financial statements (in thousands, except per share data): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income (loss) | $ | 198 | $ | (551 | ) | $ | (635 | ) | $ | (2,686 | ) | |||||
Less: Preferred stock dividends | 5 | (185 | ) | 15 | 25 | |||||||||||
Net income (loss) attributable to common stockholders | $ | 193 | $ | (366 | ) | $ | (650 | ) | $ | (2,711 | ) | |||||
Weighted average shares outstanding - basic | 34,950 | 31,692 | 34,885 | 29,094 | ||||||||||||
Add effect of dilutive securities: | ||||||||||||||||
Unvested restricted stock | 670 | — | — | — | ||||||||||||
Shares of common stock issuable upon conversion of preferred stock, Series A-2 | 132 | — | — | — | ||||||||||||
Stock options | 17 | — | — | — | ||||||||||||
Weighted average shares outstanding - diluted | 35,769 | 31,692 | 34,885 | 29,094 | ||||||||||||
Basic net income (loss) per share | $ | 0.01 | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.09 | ) | |||||
Diluted net income (loss) per share | $ | 0.01 | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.09 | ) | |||||
Schedule of Potentially Dilutive Shares of Common Stock | ' | |||||||||||||||
The following table sets forth the potential shares of common stock that were excluded from diluted weighted-average shares of common stock outstanding (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Unvested restricted stock | 670 | 534 | 670 | 534 | ||||||||||||
Shares of common stock issuable upon conversion of preferred stock, Series A-2 | 132 | 133 | 132 | 133 | ||||||||||||
Stock options outstanding | 1,358 | 1,924 | 1,358 | 1,924 | ||||||||||||
Warrants | — | 33 | — | 33 | ||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||
Future minimum rental commitments under all non-cancelable operating leases as of September 30, 2014, are as follows (in thousands): | ||||
Year Ending December 31, | ||||
Remaining 2014 | $ | 195 | ||
2015 | 395 | |||
2016 | 439 | |||
2017 | 401 | |||
2018 | 309 | |||
2019 | 88 | |||
2020 | 15 | |||
$ | 1,842 | |||
Basis_of_Presentation_and_Liqu1
Basis of Presentation and Liquidity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 16, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 16, 2014 | Sep. 30, 2014 | Oct. 17, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Oct. 17, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
segment | Common stock [Member] | Common stock [Member] | Common stock [Member] | Common stock [Member] | Senior secured term loan facility [Member] | Senior secured term loan facility [Member] | Senior secured term loan facility [Member] | Senior secured term loan facility [Member] | Senior secured revolving loan facility [Member] | Senior secured revolving loan facility [Member] | Senior secured revolving loan facility [Member] | Senior secured revolving loan facility [Member] | ||||||
Main Street Capital Corporation [Member] | Main Street Capital Corporation [Member] | Main Street Capital Corporation [Member] | Main Street Capital Corporation [Member] | |||||||||||||||
Organization, Presentation and Liquidity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | $2,153,000 | $2,051,000 | $2,153,000 | $2,051,000 | $2,294,000 | $2,218,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working capital | 1,970,000 | ' | 1,970,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted cash | 185,000 | ' | 185,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | 198,000 | -551,000 | -635,000 | -2,686,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash provided by operating activities | ' | ' | 1,560,000 | 1,812,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving loan facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' | ' | ' | 2,000,000 | ' | ' |
Outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | 400,000 | ' | ' | ' |
Main Street Revolver | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | 9,000,000 | ' | ' | 400,000 | 300,000 |
Stock offering, maximum sales value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock offering costs, commission percentage | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares sold in stock offering (in shares) | ' | ' | ' | ' | ' | ' | ' | 89,000 | 89,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average selling price in common stock offering (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $1.33 | $1.33 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of common stock | ' | ' | ' | ' | ' | ' | ' | 118,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of common stock, net of commissions expense | ' | ' | ' | ' | ' | ' | ' | 108,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving loan facility, unused borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000 | ' | ' | ' | $1,600,000 | ' | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Idle Property and Equipment [Member] | Network Equipment [Member] | Network Equipment [Member] | Network Equipment [Member] | Network Equipment [Member] | Capitalized Software Costs [Member] | Capitalized Software Costs [Member] | Capitalized Software Costs [Member] | Capitalized Software Costs [Member] | Revenues [Member] | Revenues [Member] | Revenues [Member] | Revenues [Member] | Network and Infrastructure Costs [Member] | Network and Infrastructure Costs [Member] | Network and Infrastructure Costs [Member] | Network and Infrastructure Costs [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Affinity VideoNet, Inc. [Member] | |||
Capitalized Software Costs [Member] | Up-front Payment Arrangement [Member] | Capitalized Software Costs [Member] | Up-front Payment Arrangement [Member] | |||||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Parent's ownership percentage in consolidated subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Deferred revenue, estimated recognition period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | '24 months | ' |
Allowance for doubtful accounts | $63,000 | $221,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excise and sales taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 314,000 | 336,000 | 968,000 | 1,004,000 | 306,000 | 320,000 | 929,000 | 955,000 | ' | ' | ' | ' | ' |
Impairment of equipment | ' | ' | 101,000 | ' | 141,000 | ' | 615,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on disposal of equipment | ' | ' | ' | 0 | ' | -4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | '4 years | ' | ' |
Capitalized computer software, additions | ' | ' | ' | ' | ' | ' | ' | 325,000 | 125,000 | 1,295,000 | 269,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized computer software, amortization | ' | ' | ' | ' | ' | ' | ' | 199,000 | 122,000 | 498,000 | 381,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset impairment loss | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $73,000 | $65,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted_Cash_Details
Restricted Cash (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Cash | $2,153 | $2,294 | $2,051 | $2,218 |
Comerica Bank [Member] | Colorado [Member] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Letters of credit outstanding, amount | $185 | $242 | ' | ' |
Accrued_Expenses_and_Other_Lia2
Accrued Expenses and Other Liabilities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Expenses, Current [Abstract] | ' | ' |
Accrued compensation | $376 | $755 |
Accrued severance costs | 1 | 306 |
Accrued communication costs | 808 | 328 |
Accrued professional fees | 191 | 138 |
Accrued lease termination | 75 | 0 |
Accrued interest | 140 | 137 |
Other accrued expenses | 447 | 253 |
Deferred revenue | 103 | 197 |
Customer deposits | 436 | 163 |
Accrued expenses and other liabilities | $2,577 | $2,277 |
Debt_Details
Debt (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term debt, gross | $11,285 | $11,185 |
Less current maturities | -400 | -950 |
Long-term debt, net of current portion | 10,885 | 10,235 |
Term Loan [Member] | Main Street Capital Corporation [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Main Street debt | 9,000 | 9,000 |
Revolving Credit Facility [Member] | Main Street Capital Corporation [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Main Street debt | 400 | 300 |
Promissory Note with Stockholder Representative [Member] | Promissory Note [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
SRS Note | $1,885 | $1,885 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 17, 2013 | Sep. 30, 2014 | Oct. 17, 2013 | |
Prepaid expenses and other current assets [Member] | Other assets [Member] | Other assets [Member] | Promissory Note [Member] | Promissory Note [Member] | February 15, 2014 to April 15, 2015 [Member] | February 15, 2014 to April 15, 2015 [Member] | August 15, 2015 to August 15, 2018 [Member] | August 15, 2015 to August 15, 2018 [Member] | Term Loan [Member] | Term Loan [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||
Promissory Note with Stockholder Representative [Member] | Promissory Note with Stockholder Representative [Member] | Comerica Term Loan [Member] | Promissory Note [Member] | Comerica Term Loan [Member] | Promissory Note [Member] | |||||||||||||
Promissory Note with Stockholder Representative [Member] | Promissory Note with Stockholder Representative [Member] | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving loan facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11,000,000 | ' | $2,000,000 |
Net payments on revolving loan facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | 400,000 | ' |
Stated interest rate percentage | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | 12.00% | ' | 8.00% | ' |
Debt instrument, principal payment as percentage of excess cash flow | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.00% | ' | 50.00% | ' | ' | ' | ' | ' |
Credit facility, periodic principal payment | 46,000 | ' | 149,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advances received on revolving loan facility | 249,000 | ' | 249,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion of long-term debt | 400,000 | ' | 400,000 | ' | 950,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount | ' | ' | ' | ' | ' | ' | ' | ' | 1,885,000 | 1,885,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, periodic principal payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' |
Debt instrument, additional periodic payment, principal, earnings benchmark, measurement period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 months | ' | '6 months | ' | ' | ' | ' |
Debt instrument, additional periodic payment, principal, reduction to calculated payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | 3,000,000 | ' | ' | ' | ' |
Debt instrument, additional periodic payment, principal, percent of earnings benchmark | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' |
Unamortized debt issuance expense | ' | ' | ' | ' | ' | 88,000 | 210,000 | 363,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of financing costs | 23,000 | 121,000 | 67,000 | 242,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of debt discount | $0 | $39,000 | $0 | $108,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital_Lease_Obligations_Deta
Capital Lease Obligations (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Leases [Abstract] | ' | ' | ' | ' | ' |
Depreciation expense on the equipment under the capital leases | $41 | $40 | $124 | $120 | ' |
Total | ' | ' | ' | ' | ' |
Remainder of 2014, Total | 20 | ' | 20 | ' | ' |
2015, Total | 43 | ' | 43 | ' | ' |
2016, Total | 1 | ' | 1 | ' | ' |
Capital Lease, Total | 64 | ' | 64 | ' | ' |
Interest | ' | ' | ' | ' | ' |
Remainder of 2014, Interest | 1 | ' | 1 | ' | ' |
2015, Interest | 1 | ' | 1 | ' | ' |
2016, Interest | 0 | ' | 0 | ' | ' |
Capital Lease Interest, Total | 2 | ' | 2 | ' | ' |
Principal | ' | ' | ' | ' | ' |
Remainder of 2014, Principal | 19 | ' | 19 | ' | ' |
2015, Principal | 42 | ' | 42 | ' | ' |
2016, Principal | 1 | ' | 1 | ' | ' |
Capital Lease Principal, Total | 62 | ' | 62 | ' | ' |
Current portion of capital lease obligations | 57 | ' | 57 | ' | 217 |
Long-term portion of capital lease obligations | $5 | ' | $5 | ' | $43 |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | Preferred Stock [Member] | Series B-1 Preferred Stock [Member] | Series A-2 Preferred Stock [Member] | Series A-2 Preferred Stock [Member] | Series D Preferred Stock [Member] | ||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock authorized | 7,500 | 7,500 | 5,000,000 | 100 | 7,500 | ' | 4,000 |
Preferred Stock issued | 53 | 53 | ' | 0 | 53 | ' | 0 |
Preferred Stock outstanding | 53 | 53 | ' | 0 | 53 | ' | 0 |
Preferred Stock stated value (in dollars per share) | $0.00 | $0.00 | ' | ' | $7,500 | ' | ' |
Conversion of preferred stock (in dollars per share) | ' | ' | ' | ' | $3.00 | $3 | ' |
Convertible preferred stock, shares issued upon conversion | ' | ' | ' | ' | 2,500 | ' | ' |
Preferred stock, cumulative dividend percentage rate (per annum) | ' | ' | ' | ' | 5.00% | ' | ' |
Accrued dividends | $35 | $20 | ' | ' | $35 | ' | ' |
Common_Stock_Details
Common Stock (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 16, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 16, 2014 | |
Prepaid expenses and other current assets [Member] | Common stock [Member] | Common stock [Member] | Common stock [Member] | Common stock [Member] | |||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock offering, maximum sales value | ' | ' | ' | ' | ' | ' | $8,000,000 |
Stock offering costs, commission percentage | ' | ' | ' | 3.00% | ' | ' | ' |
Common shares sold in stock offering (in shares) | ' | ' | ' | ' | 89,000 | 89,000 | ' |
Weighted-average selling price in common stock offering (in dollars per share) | ' | ' | ' | ' | $1.33 | $1.33 | ' |
Proceeds from sale of common stock | ' | ' | ' | ' | 118,000 | ' | ' |
Proceeds from sale of common stock, net of commissions expense | ' | ' | ' | ' | 108,000 | ' | ' |
Capitalized stock issuance costs | ' | ' | 100,000 | ' | ' | ' | ' |
Stock issuance costs, reduction of additional paid-in capital | $6,000 | $6,000 | ' | ' | ' | ' | ' |
Stock_Options_Narrative_Detail
Stock Options (Narrative) (Details) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' |
Stock options exercised | 50,000 |
Stock options expired | 50,000 |
Common stock [Member] | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' |
Stock issued upon exercise of stock options | 20,000 |
Stock Options [Member] | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' |
Unrecognized stock-based compensation expense for stock options | 908 |
Unrecognized stock-based compensation expense, stock options, upon change in control, value | 20 |
Unrecognized stock-based compensation expense, stock options, upon change in control, shares | 10,000 |
Unrecognized stock-based compensation expense, stock options, amortized for weighted average period | 888 |
Weighted average period for amortization of unrecognized stock-based compensation, stock options | '2 years 1 month 13 days |
Stock Options [Member] | 2014 Equity Incentive Plan [Member] | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' |
Shares available for issuance | 4,400,000 |
Stock_Options_Options_Outstand
Stock Options (Options Outstanding) (Details) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Outstanding Number of Shares Underlying Options, Beginning | 1,792 |
Outstanding Number of Shares Underlying Options, Granted | 0 |
Outstanding Number of Shares Underlying Options, Exercised | -50 |
Outstanding Number of Shares Underlying Options, Expired | -50 |
Outstanding Number of Shares Underlying Options, Forfeited | -333 |
Outstanding Number of Shares Underlying Options, Ending | 1,359 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' |
Outstanding Weighted Average Exercise Price, Beginning (in dollars per share) | $2.21 |
Outstanding Weighted Average Exercise Price, Granted (in dollars per share) | $0 |
Outstanding Weighted Average Exercise Price, Exercised (in dollars per share) | $0.90 |
Outstanding Weighted Average Exercise Price, Expired (in dollars per share) | $5.29 |
Outstanding Weighted Average Exercise Price, Forfeited (in dollars per share) | $2.71 |
Outstanding Weighted Average Exercise Price, Ending (in dollars per share) | $2.02 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable [Abstract] | ' |
Exercisable Number of Shares Underlying Options, Beginning | 410 |
Exercisable Number of Shares Underlying Options, Ending | 675 |
Exercisable Weighted Average Exercise Price, Beginning (in dollars per share) | $2.71 |
Exercisable Weighted Average Exercise Price, Ending (in dollars per share) | $2.06 |
Stock_Options_Fair_Value_of_Op
Stock Options (Fair Value of Options) (Details) (Stock Options [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk free interest rate | 0.80% |
Expected option lives | '5 years |
Expected volatility | 103.20% |
Estimated forfeiture rate | 10.00% |
Expected dividend yields | 0.00% |
Weighted average grant date fair value of options | $1.39 |
Stock_Options_Expense_Allocati
Stock Options (Expense Allocation) (Details) (Stock Options [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Stock option compensation expense | $103 | $146 | $254 | $503 |
General and administrative [Member] | ' | ' | ' | ' |
Stock option compensation expense | $103 | $146 | $254 | $503 |
Restricted_Stock_Vested_Forfei
Restricted Stock (Vested, Forfeited and Outstanding) (Details) (Restricted Stock [Member], USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 |
Restricted Stock [Member] | ' |
Restricted Stock, Number of Shares [Roll Forward] | ' |
Unvested restricted shares outstanding, beginning | 465 |
Granted, restricted shares | 522 |
Vested, restricted shares | -122 |
Forfeited, restricted shares | -195 |
Unvested restricted shares outstanding, ending | 670 |
Restricted Stock, Weighted Average Grant Price [Roll Forward] | ' |
Unvested restricted shares, weighted average grant price, beginning (in dollars per share) | $2.03 |
Granted, weighted average grant price (in dollars per share) | $1.53 |
Vested, weighted average grant price (in dollars per share) | $1.54 |
Forfeited, weighted average grant price (in dollars per share) | $2.43 |
Unvested restricted shares, weighted average grant price, ending (in dollars per share) | $1.61 |
Restricted_Stock_Allocations_a
Restricted Stock (Allocations and Narrative) (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Cost of revenue [Member] | Cost of revenue [Member] | Cost of revenue [Member] | Cost of revenue [Member] | Research and development [Member] | Research and development [Member] | Research and development [Member] | Research and development [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | General and administrative [Member] | General and administrative [Member] | General and administrative [Member] | General and administrative [Member] | Shares Withheld and Repurchased [Member] | Additional Paid-in Capital [Member] | |
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested, restricted shares | ' | ' | ' | 122 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40 | ' |
Minimum statutory tax withholding requirements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $66 | ' |
Restricted stock compensation expense | ' | 53 | 25 | 192 | 358 | 7 | 3 | 30 | 11 | 3 | 0 | 9 | 3 | 10 | 12 | 19 | 38 | 33 | 10 | 134 | 306 | ' | ' |
Issuance of restricted stock to settle accrued 2013 bonuses, Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 204 |
Accrued bonuses | 165 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense for restricted stock | ' | 765 | ' | 765 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense, restricted stock, upon change in control, value | ' | 38 | ' | 38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense, restricted stock, upon change in control, shares | ' | 15 | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense, restricted stock, amortized for weighted average period | ' | $727 | ' | $727 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period for amortization of unrecognized stock-based compensation, restricted stock | ' | ' | ' | '2 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings_Loss_Per_Share_Basic_
Earnings (Loss) Per Share Basic and Diluted (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Class of Stock [Line Items] | ' | ' | ' | ' |
Net income (loss) | $198 | ($551) | ($635) | ($2,686) |
Less: Preferred stock dividends | 5 | -185 | 15 | 25 |
Net income (loss) attributable to common stockholders | $193 | ($366) | ($650) | ($2,711) |
Weighted average shares outstanding - basic | 34,950 | 31,692 | 34,885 | 29,094 |
Unvested restricted stock | 670 | 0 | 0 | 0 |
Stock options | 17 | 0 | 0 | 0 |
Weighted average shares outstanding - diluted | 35,769 | 31,692 | 34,885 | 29,094 |
Basic net income (loss) per share (in dollars per share) | $0.01 | ($0.01) | ($0.02) | ($0.09) |
Diluted net income (loss) per share (in dollars per share) | $0.01 | ($0.01) | ($0.02) | ($0.09) |
Series A-2 Preferred Stock [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Shares of common stock issuable upon conversion of preferred stock, Series A-2 | 132 | 0 | 0 | 0 |
Earnings_Loss_Per_Share_Antidi
Earnings (Loss) Per Share Antidilutive (Details) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Out-of-the-money options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive common shares excluded from computation of earnings per share | 1,283 | ' | ' | ' |
Unvested restricted stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive common shares excluded from computation of earnings per share | 670 | 534 | 670 | 534 |
Shares of common stock issuable upon conversion of preferred stock, Series A-2 [Member] | Series A-2 Preferred Stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive common shares excluded from computation of earnings per share | 132 | 133 | 132 | 133 |
Stock options outstanding [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive common shares excluded from computation of earnings per share | 1,358 | 1,924 | 1,358 | 1,924 |
Warrants [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive common shares excluded from computation of earnings per share | 0 | 33 | 0 | 33 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | ||||||
Jul. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 15, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Pennsylvania [Member] | Pennsylvania [Member] | Pennsylvania [Member] | New Jersey [Member] | Colorado [Member] | Colorado [Member] | ||||||
Comerica Bank [Member] | Comerica Bank [Member] | ||||||||||
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating lease payments | ' | $166,000 | $191,000 | $485,000 | $575,000 | ' | ' | ' | ' | ' | ' |
Impairment of office lease | ' | ' | ' | ' | ' | ' | 225,000 | ' | ' | ' | ' |
Operating lease, contract termination payment | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' |
Accrued expense, impairment of office lease | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | ' | ' |
Operating lease, term | '64 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating leases, rent expense (per month) | 7,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease commitments | ' | 1,842,000 | ' | 1,842,000 | ' | ' | ' | ' | 90,000 | ' | ' |
Letters of credit outstanding, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | $185,000 | $242,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Operating Lease) (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2014 | $195 |
2015 | 395 |
2016 | 439 |
2017 | 401 |
2018 | 309 |
2019 | 88 |
2020 | 15 |
Total | $1,842 |
Major_Customers_Details
Major Customers (Details) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Revenues [Member] | Revenues [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | |
customer | Customer No. 1 [Member] | Customer No. 2 [Member] | Revenues [Member] | Revenues [Member] | Revenues [Member] | Revenues [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |
customer | customer | Customer No. 1 [Member] | Customer No. 1 [Member] | Customer No. 1 [Member] | Customer No. 2 [Member] | ||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk percentage | ' | ' | ' | 20.00% | 21.00% | 11.00% | 11.00% | 12.00% | 16.00% |
Number of major wholesale partners | 2 | 1 | 1 | ' | ' | ' | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
Promissory Note [Member] | Director Affiliated Entity [Member] | Director Affiliated Entity [Member] | Director [Member] | Director [Member] | Shareholder Affiliated Entity [Member] | Shareholder Affiliated Entity [Member] | Wife of President and CEO (Nancy K. Holst) [Member] | Wife of President and CEO (Nancy K. Holst) [Member] | GP Investment Holdings, LLC [Member] | GP Investment Holdings, LLC [Member] | |||
Promissory Note with Stockholder Representative [Member] | ABM Industries, Inc. (ABM) [Member] | ABM Industries, Inc. (ABM) [Member] | Common Stock Ownership [Member] | ||||||||||
President and CEO [Member] | |||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, related parties | ' | ' | ' | $99,000 | $103,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable, related parties, current | ' | ' | ' | 11,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party transaction, amounts of transaction, monthly | ' | ' | ' | ' | ' | 12,500 | ' | ' | ' | ' | ' | ' | ' |
Related party transaction, amounts of transaction | ' | ' | ' | ' | ' | $39,000 | $113,000 | $0 | $196,000 | $0 | $18,000 | ' | ' |
Interest in note payable (percent) | ' | ' | 27.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common shares owned by investor | 35,703,000 | 35,306,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,276,138 | ' |
Concentration risk percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43.00% |