Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 4-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | GLOWPOINT, INC. | |
Entity Central Index Key | 746210 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 35,693,000 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $1,871,000 | $1,938,000 |
Accounts receivable, net | 3,557,000 | 3,273,000 |
Prepaid expenses and other current assets | 703,000 | 1,025,000 |
Total current assets | 6,131,000 | 6,236,000 |
Property and equipment, net | 3,361,000 | 3,246,000 |
Goodwill | 9,825,000 | 9,825,000 |
Intangibles, net | 2,830,000 | 3,047,000 |
Other assets | 213,000 | 262,000 |
Total assets | 22,360,000 | 22,616,000 |
Current liabilities: | ||
Current portion of long-term debt | 400,000 | 400,000 |
Current portion of capital lease obligations | 25,000 | 41,000 |
Accounts payable | 1,421,000 | 1,220,000 |
Accrued expenses and other liabilities | 1,493,000 | 1,576,000 |
Accrued dividends | 45,000 | 40,000 |
Accrued sales taxes and regulatory fees | 463,000 | 444,000 |
Total current liabilities | 3,847,000 | 3,721,000 |
Long term liabilities: | ||
Capital lease obligations, net of current portion | 0 | 1,000 |
Deferred tax liability | 142,000 | 142,000 |
Long term debt, net of current portion | 10,785,000 | 10,785,000 |
Total long term liabilities | 10,927,000 | 10,928,000 |
Total liabilities | 14,774,000 | 14,649,000 |
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 March 31, 2015 and December 31, 2014 | 167,000 | 167,000 |
Common stock, $.0001 par value;150,000,000 shares authorized; 35,872,000 shares issued and 35,693,000 outstanding at March 31, 2015 and 35,951,000 shares issued and 35,911,000 outstanding at December 31, 2014 | 4,000 | 4,000 |
Treasury stock, 179,000 and 40,000 shares at March 31, 2015 and December 31, 2014, respectively | -205,000 | -66,000 |
Additional paid-in capital | 178,468,000 | 178,476,000 |
Accumulated deficit | -170,848,000 | -170,614,000 |
Total stockholders’ equity | 7,586,000 | 7,967,000 |
Total liabilities and stockholders’ equity | $22,360,000 | $22,616,000 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 35,872,000 | 35,951,000 |
Common Stock, shares outstanding | 35,693,000 | 35,911,000 |
Treasury Stock, shares | 179,000 | 40,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue | $7,163 | $7,981 |
Operating expenses: | ||
Cost of revenue (exclusive of depreciation and amortization) | 3,949 | 4,870 |
Research and development | 298 | 166 |
Sales and marketing | 708 | 825 |
General and administrative | 1,403 | 1,584 |
Impairment charges | 125 | 326 |
Depreciation and amortization | 555 | 688 |
Total operating expenses | 7,038 | 8,459 |
Income (loss) from operations | 125 | -478 |
Interest and other expense: | ||
Interest expense and other, net | 337 | 334 |
Amortization of deferred financing costs | 22 | 22 |
Total interest and other expense, net | 359 | 356 |
Loss before income taxes | -234 | -834 |
Income tax expense | 0 | 0 |
Net loss | -234 | -834 |
Preferred stock dividends | 5 | 5 |
Net loss attributable to common stockholders | ($239) | ($839) |
Net loss attributable to common stockholders per share: | ||
Basic and diluted net loss per share (in dollars per share) | ($0.01) | ($0.02) |
Weighted average number of shares of common stock: | ||
Basic and diluted (in shares) | 35,482 | 34,858 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (USD $) | Total | 2014 Equity Incentive Plan [Member] | Preferred Stock [Member] | Common stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data, unless otherwise specified | Series A-2 Preferred Stock [Member] | 2014 Equity Incentive Plan [Member] | ||||||
Beginning Balance, Value at Dec. 31, 2014 | $7,967 | $167 | $4 | ($66) | $178,476 | ($170,614) | ||
Beginning Balance, Shares at Dec. 31, 2014 | 53 | 35,951,000 | ||||||
Beginning balance, Treasury Shares at Dec. 31, 2014 | 40,000 | 40,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | -234 | -234 | ||||||
Stock-based compensation | 113 | 113 | ||||||
2014 Plan equity issuance costs | -100 | -34 | -34 | |||||
Forfeited restricted stock, Shares | -96,000 | |||||||
Forfeited restricted stock, Value | 0 | |||||||
Preferred stock dividends | -5 | -5 | ||||||
Repurchase of common stock, Shares | 139,000 | |||||||
Repurchase of common stock, Value | -139 | -139 | ||||||
Issuance of common stock under an at-the-market sales agreement, net of expenses, Shares | 17,000 | |||||||
Issuance of common stock under an at-the-market sales agreement, net of expenses, Value | -82 | -82 | ||||||
Ending Balance, Value at Mar. 31, 2015 | $7,586 | $167 | $4 | ($205) | $178,468 | ($170,848) | ||
Ending Balance, Shares at Mar. 31, 2015 | 53 | 35,872,000 | ||||||
Ending balance, Treasury Shares at Mar. 31, 2015 | 179,000 | 179,000 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Statement of Stockholders' Equity [Abstract] | |
Stock issued, issuance costs | $100 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net loss | ($234) | ($834) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 555 | 688 |
Bad debt recovery | -3 | -107 |
Amortization of deferred financing costs | 22 | 22 |
Stock-based compensation expense | 113 | 233 |
Impairment charges | 125 | 101 |
Increase (decrease) attributable to changes in assets and liabilities: | ||
Accounts receivable | -281 | 564 |
Prepaid expenses and other current assets | 187 | -6 |
Other assets | 28 | 8 |
Accounts payable | 206 | -179 |
Accrued expenses and other liabilities | -116 | 44 |
Net cash provided by operating activities | 602 | 534 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -533 | -434 |
Proceeds from sale of equipment | 3 | 0 |
Net cash used in investing activities | -530 | -434 |
Cash flows from financing activities: | ||
Costs of preferred stock exchange | 0 | -5 |
Principal payments for capital lease obligations | -18 | -65 |
Principal payments under borrowing arrangements | 0 | -49 |
Proceeds from issuance of common stock | 18 | 0 |
Payment of debt issuance costs | 0 | -59 |
Purchase of treasury stock | -139 | -30 |
Net cash used in financing activities | -139 | -208 |
Decrease in cash and cash equivalents | -67 | -108 |
Cash at beginning of period | 1,938 | 2,294 |
Cash at end of period | 1,871 | 2,186 |
Supplement disclosures of cash flow information: | ||
Cash paid during the period for interest | 355 | 328 |
Non-cash investing and financing activities: | ||
Preferred stock dividends | 5 | 5 |
Issuance of restricted stock to settle accrued 2013 bonuses | 0 | 165 |
Accrued capital expenditure | 48 | 0 |
Recognition of prepaid equity issuance costs as additional paid in capital | $134 | $0 |
Business_Description_and_Basis
Business Description and Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation | Business Description and Basis of Presentation |
Business Description | |
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. | |
Principles of Consolidation | |
The condensed consolidated financial statements include the accounts of Glowpoint and our 100%-owned subsidiary, 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. | |
Quarterly Financial Information and Results of Operations | |
The condensed consolidated financial statements as of March 31, 2015 and for the three months ended March 31, 2015 and 2014 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 March 31, 2015, and the results of operations for the three months ended March 31, 2015 and 2014, the statement of stockholders' equity for the three months ended March 31, 2015 and the statement of cash flows for the three months ended March 31, 2015 and 2014. The results of operations and cash flows for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the entire year. The condensed balance sheet as of December 31, 2014 was derived from audited financial statements as of December 31, 2014. 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, together with Management's Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. | |
Reclassifications | |
Certain prior year amounts have been reclassified to conform with the current year presentation. |
Liquidity
Liquidity | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity | Liquidity |
As of March 31, 2015, we had $1,871,000 of cash and working capital of $2,284,000. Our cash balance as of March 31, 2015 includes restricted cash of $148,000 (as discussed in Note 4). For the three months ended March 31, 2015, we generated a net loss of $234,000 and net cash provided by operating activities of $602,000. 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. On February 27, 2015, the Company and Main Street entered into an amendment to the loan agreement to revise certain of the Company's financial covenants and ratio levels (as amended, 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 March 31, 2015, the Company had outstanding borrowings of $9,000,000 under the Main Street Term Loan and $400,000 on the Main Street Revolver. | |
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 March 31, 2015, 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. In the event we need access to capital to fund operations and provide growth capital beyond our existing Main Street credit facility, we would likely need to raise capital in one or more equity offerings. There can be no assurance that we will be able to raise capital as may be needed or upon acceptable stock prices. 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. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
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. | |
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. This 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. The FASB has issued for public comment a proposed ASU that would defer the effective date of ASU 2014-09 by one year. 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, the 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, which 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 2014-15 on our financial statements and disclosures. | |
In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU requires retrospective adoption and will be effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years. We expect the adoption of this guidance will not have a material impact on our financial statements. | |
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 $38,000 and $54,000 at March 31, 2015 and December 31, 2014, 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 months ended March 31, 2015, we included taxes of $330,000 in revenue, and we included taxes of $309,000 in cost of revenue. For the three months ended March 31, 2014, we included taxes of $326,000 in revenue, and we included taxes of $310,000 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 three months ended March 31, 2015 and 2014, the Company recorded impairment losses of $125,000 and $101,000, respectively, relating to property and equipment, primarily consisting of furniture and leasehold improvements, associated with the closure of our former Pennsylvania and New Jersey offices (as discussed in Note 12). | |
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 months ended March 31, 2015, we capitalized internal use software costs of $523,000, and we amortized $125,000 of these costs. For the three months ended March 31, 2014, we capitalized internal-use software costs of $428,000 and we amortized $163,000 of these costs. During the three months ended March 31, 2015 and 2014, no impairment losses were recorded. |
Restricted_Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2015 | |
Restricted Cash and Investments [Abstract] | |
Restricted Cash | Restricted Cash |
As of March 31, 2015, our cash balance of $1,871,000 included restricted cash of $148,000. The $148,000 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, 2014, our cash balance of $1,938,000 included restricted cash of $185,000. |
Accrued_Expenses_and_Other_Lia
Accrued Expenses and Other Liabilities | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Accrued compensation | $ | 381 | $ | 271 | ||||
Accrued severance costs | 22 | 20 | ||||||
Accrued communication costs | 200 | 272 | ||||||
Accrued professional fees | 88 | 146 | ||||||
Accrued interest | 119 | 143 | ||||||
Other accrued expenses | 254 | 382 | ||||||
Deferred rent expense | 91 | 75 | ||||||
Deferred revenue | 128 | 76 | ||||||
Customer deposits | 210 | 191 | ||||||
Accrued expenses and other liabilities | $ | 1,493 | $ | 1,576 | ||||
Debt
Debt | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Disclosure [Abstract] | |||||||
Debt | Debt | ||||||
Long-term debt consisted of the following (in thousands): | |||||||
March 31, 2015 | December 31, 2014 | ||||||
SRS Note | $ | 1,785 | $ | 1,785 | |||
Main Street Term Loan | 9,000 | 9,000 | |||||
Main Street Revolver | 400 | 400 | |||||
11,185 | 11,185 | ||||||
Less current maturities | (400 | ) | (400 | ) | |||
Long-term debt, net of current portion | $ | 10,785 | $ | 10,785 | |||
As discussed in Note 2, 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 March 31, 2015, 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 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. For this purpose, "Excess Cash Flow" is defined in the Main Street Loan Agreement and is effectively equal to the cash flow from operations less capital expenditures less principal payments on capital leases. 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 months ended March 31, 2015, the Company was not required to make any principal payments on the Main Street Revolver or Main Street Term Loan. | |||||||
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 and 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 (“AEBITDA”) ratio covenant as defined in the Main Street Loan Agreement. 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 March 31, 2015, the Company was in compliance with all required covenants. | |||||||
Deferred financing costs related to our debt agreements of $83,000 and $84,000 are included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheet as of March 31, 2015 and December 31, 2014, respectively. Deferred financing costs related to our debt agreements $180,000 and $192,000 are included in other assets in the accompanying condensed consolidated balance sheet as of March 31, 2015 and December 31, 2014, respectively. 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 March 31, 2015 and 2014, amortization of financing costs was $22,000 for each period. | |||||||
In connection with the October 2012 acquisition of Affinity VideoNet, Inc. ("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 both March 31, 2015 and December 31, 2014, the principal balance on the SRS Note was $1,785,000. On February 27, 2015, the Company amended and restated the SRS Note. The amended SRS Note, (i) extended the maturity date from January 4, 2016 to July 6, 2017, (ii) increased the interest rate from 10% to 15% per annum effective March 1, 2015 and (iii) revised the payment of interest from quarterly in arrears to payment on July 6, 2017 of all interest earned after March 1, 2015, unless certain trailing AEBITDA targets are met as defined in the agreement. The Company is required to make monthly principal payments in the amount of $50,000 in the event the Company's trailing three month AEBITDA exceeds $1,500,000. The Company is required to make additional payments on the principal amount over the remaining term of the SRS Note in an amount equal to 40% of the Company’s trailing six month Adjusted EBITDA less $3,000,000. The Company analyzed the amendment and determined that the future cash flows did not change by more than 10% and thus accounted for the amendment as a debt modification. During the three months ended March 31, 2015, the Company was not required to make any principal payments on the SRS Note. | |||||||
As of March 31, 2015, the current portion of long-term debt recorded on the Company's balance sheet was $400,000, which reflects principal payments the Company expects to pay in the twelve months ended March 31, 2016 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 March 31, 2016. Therefore, the Company expects that no principal payments will be applied against the Main Street Term Loan during the twelve months ended March 31, 2016; and thus all outstanding borrowings on the Main Street Term Loan are classified as long term debt as of March 31, 2015. The principal payments related to these debt agreements are estimates and actual payments may vary. |
Capital_Lease_Obligations
Capital Lease Obligations | 3 Months Ended |
Mar. 31, 2015 | |
Leases [Abstract] | |
Capital Lease Obligations | Capital Lease Obligations |
During the three months ended March 31, 2015, 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 months ended March 31, 2015 and 2014 was $13,000 and $40,000, respectively. As of March 31, 2015 the current portion of the Company's capital lease obligations is $25,000 and the long-term portion is $0. |
Preferred_Stock
Preferred Stock | 3 Months Ended |
Mar. 31, 2015 | |
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 March 31, 2015, 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 $2.9835 as of March 31, 2015. Therefore, each share of Series A-2 Preferred Stock is convertible into 2,514 shares of Common Stock as of March 31, 2015. 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 March 31, 2015, the conversion price was adjusted from $2.9844 per share to $2.9835 per share as a result of sales in the ATM Offering during this period (see Note 9). 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 March 31, 2015, the Company has recorded approximately $45,000 in accrued dividends on the accompanying condensed consolidated balance sheet related to the Series A-2 Preferred Stock. | |
In accordance with ASC Topic 815, we evaluated whether our convertible preferred stock contains provisions that protect holders from declines in our stock price or otherwise could result in modification of the exercise price and/or shares to be issued under the respective preferred stock agreements based on a variable that is not an input to the fair value of a “fixed-for-fixed” option and require a derivative liability. The Company determined no derivative liability is required under ASC Topic 815 with respect to our convertible preferred stock. A contingent beneficial conversion amount is required to be calculated and recognized when and if the adjusted conversion price of the convertible preferred stock is adjusted to reflect a down round stock issuance that reduces the conversion price below the $1.16 fair value of the common stock on the issuance date of the convertible preferred stock. |
Common_Stock
Common Stock | 3 Months Ended |
Mar. 31, 2015 | |
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"). On March 20, 2015, the Company and MLV mutually agreed to terminate this agreement. MLV acted as the sole sales agent for any sales made in the ATM Offering for a 3% commission on gross proceeds. The common stock was sold at market prices at the time of the sale, and, as a result, prices varied. Sales in the ATM Offering were being made pursuant to the prospectus supplement dated September 16, 2014, which supplemented 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. During the three months ended March 31, 2015, the Company sold 17,000 shares in the ATM Offering at a weighted-average selling price of $1.11 per share for gross proceeds of $19,000. Net proceeds totaled $18,000, reflecting reductions for the 3% commission to MLV and other offering expenses. The Company initially recorded approximately $125,000 of expenses for the offering, excluding MLV commissions and other fees, in prepaid expenses and other current assets. The Company charged approximately $100,000 of these costs against additional paid-in capital during the three months ended March 31, 2015 upon the termination of the ATM offering. |
Stock_Based_Compensation
Stock Based Compensation (Stock Options [Member]) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Stock Options [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock Based Compensation | Stock Based Compensation | ||||||||||||
On May 28, 2014, the Glowpoint, Inc. 2014 Equity Incentive Plan (the “2014 Plan”) was approved by the Company’s stockholders at the Company’s 2014 Annual Meeting of Stockholders. 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 were initially available for issuance pursuant to awards under the 2014 Plan. During the three months ended March 31, 2015, 2,769,000 awards were granted under the 2014 Plan. As of March 31, 2015, 1,631,000 shares are available for issuance pursuant to awards under the 2014 Plan. | |||||||||||||
Glowpoint 2000 Stock Incentive Plan | |||||||||||||
In June 2010, the Board terminated the Glowpoint 2000 Stock Incentive Plan (as amended, the “2000 Plan”). Notwithstanding the termination of the 2000 Plan, outstanding awards under the 2000 Plan will remain in effect accordance with their terms. As of March 31, 2015, options to purchase a total of 87,000 shares of common stock were outstanding. | |||||||||||||
Glowpoint 2007 Stock Incentive Plan | |||||||||||||
In May 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. As of March 31, 2015, options to purchase a total of 1,263,000 shares of common stock were outstanding. | |||||||||||||
Stock Options | |||||||||||||
The Company periodically grants stock options to employees and directors in accordance with the provisions of our stock incentive plans, with the exercise price of the stock options being set at or above the closing price of our common stock at the date of grant. | |||||||||||||
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 three months ended March 31, 2015, 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, 2014 | 1,350 | $ | 2.02 | 729 | $ | 2.05 | |||||||
Granted | — | — | |||||||||||
Exercised | — | — | |||||||||||
Expired | (3 | ) | 7.68 | ||||||||||
Forfeited and canceled | (26 | ) | 2.1 | ||||||||||
Options outstanding, March 31, 2015 | 1,321 | $ | 2 | 796 | $ | 2.06 | |||||||
Stock-based compensation expense related to stock options is allocated as follows for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
General and administrative | $ | 102 | $ | 141 | |||||||||
$ | 102 | $ | 141 | ||||||||||
The remaining unrecognized stock-based compensation expense for options as of March 31, 2015 was $664,000 and will be amortized over a weighted average period of approximately 1.68 years. | |||||||||||||
There was no tax benefit recognized for stock-based compensation for the three months ended March 31, 2015 or 2014. No compensation costs were capitalized as part of the cost of an asset during the periods presented. |
Restricted_Stock
Restricted Stock (Restricted Stock [Member]) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 three months ended March 31, 2015, is presented below (shares in thousands): | ||||||||
Restricted Shares | Weighted Average | |||||||
Grant Price | ||||||||
Unvested restricted shares outstanding, December 31, 2014 | 641 | $ | 1.61 | |||||
Granted | — | — | ||||||
Vested | (234 | ) | 1.62 | |||||
Forfeited | (96 | ) | 1.68 | |||||
Unvested restricted shares outstanding, March 31, 2015 | 311 | $ | 1.59 | |||||
The number of shares of restricted stock vested during the three months ended March 31, 2015 includes 139,000 shares withheld and repurchased by the Company on behalf of employees and members of the Board to satisfy $139,000 of tax obligations relating to the vesting of such shares. Such shares are held in the Company's treasury stock as of March 31, 2015. | ||||||||
Stock-based compensation expense related to restricted stock is allocated as follows for the three months ended March 31, 2015 and 2014 (in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Cost of revenue | $ | (22 | ) | $ | 16 | |||
Research and development | (5 | ) | 3 | |||||
Sales and marketing | (31 | ) | 2 | |||||
General and administrative | (1 | ) | 71 | |||||
$ | (59 | ) | $ | 92 | ||||
During the three months ended March 31, 2015, the Company recorded a reversal of $88,000 in stock-based compensation expense of which $26,000 related to expense for unvested awards that were forfeited and $62,000 related to revised estimates for expense previously recorded on performance-based awards. | ||||||||
Certain restricted stock awards have performance-based vesting provisions and are subject to forfeiture, in whole or in part, if these performance conditions are not achieved. Management assesses, on an ongoing basis, the probability of whether the performance criteria will be achieved and, once it is deemed probable, compensation expense is recognized over the relevant performance period. For those awards not subject to performance criteria, the cost of the restricted stock awards is expensed, which is determined to be the fair market value of the shares at the date of grant, on a straight-line basis over the vesting period. | ||||||||
The remaining unrecognized stock-based compensation expense for restricted stock as of March 31, 2015 was $453,000. Of this amount, $255,000 relates to time-based awards with a remaining weighted average period of 2.09 years. The remaining $198,000 of unrecognized stock based compensation expense relates to performance-based awards for which expense will be recognized upon the Company achieving defined revenue targets and other financial goals and will expire 10 years from the grant date. | ||||||||
There was no tax benefit recognized for stock-based compensation for the three months ended March 31, 2015 or 2014. No compensation costs were capitalized as part of the cost of an asset during the periods presented. |
Restricted_Stock_Units
Restricted Stock Units (Restricted Stock Units [Member]) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Restricted Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted Stock Units | Restricted Stock Units | |||||||
A summary of restricted stock units granted, vested, forfeited and unvested outstanding as of, and changes made during, the three months ended March 31, 2015, is presented below (shares in thousands): | ||||||||
Restricted Stock Units | Weighted Average | |||||||
Grant Price | ||||||||
Unvested restricted stock units outstanding, December 31, 2014 | — | $ | — | |||||
Granted | 2,769 | 1.04 | ||||||
Vested | — | — | ||||||
Forfeited | — | — | ||||||
Unvested restricted stock units outstanding, March 31, 2015 | 2,769 | $ | 1.04 | |||||
Stock-based compensation expense related to restricted stock units is allocated as follows for the three months ended March 31, 2015 and 2014 (in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Cost of revenue | $ | 2 | $ | — | ||||
Research and development | 2 | — | ||||||
Sales and marketing | 1 | — | ||||||
General and administrative | 65 | — | ||||||
$ | 70 | $ | — | |||||
Certain restricted stock unit awards have performance-based vesting provisions and are subject to forfeiture, in whole or in part, if these performance conditions are not achieved. Management assesses, on an ongoing basis, the probability of whether the performance criteria will be achieved and, once it is deemed probable, compensation expense is recognized over the relevant performance period. For those awards not subject to performance criteria, the cost of the restricted stock unit awards is expensed, which is determined to be the fair market value of the shares at the date of grant, on a straight-line basis over the vesting period. | ||||||||
The remaining unrecognized stock-based compensation expense for restricted stock units as of March 31, 2015 was $2,810,000. | ||||||||
Of this amount $684,000 relates to time-based awards with a remaining weighted average period of 1.92 years. The remaining $2,126,000 of unrecognized stock based compensation expense relates to performance-based awards for which expense will be recognized upon the Company achieving defined revenue targets and other financial goals over fiscal years 2015, 2016 and 2017. |
Loss_Per_Share
Loss Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Loss Per Share | Loss Per Share | |||||||
Basic loss per share is computed by dividing net loss 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 March 31, 2015 and 2014, 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. Unvested restricted stock units are not included in calculations of basic loss per share, as they are not considered issued and outstanding at time of grant. | ||||||||
Diluted loss 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, unvested restricted stock units, stock options, and preferred stock. For the three months ended March 31, 2015 and 2014, 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 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 | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net loss | $ | (234 | ) | $ | (834 | ) | ||
Less: preferred stock dividends | 5 | 5 | ||||||
Net loss attributable to common stockholders | $ | (239 | ) | $ | (839 | ) | ||
Weighted average shares outstanding - basic | 35,482 | 34,858 | ||||||
Weighted average shares outstanding - diluted | 35,482 | 34,858 | ||||||
Basic net loss per share | $ | (0.01 | ) | $ | (0.02 | ) | ||
Diluted net loss per share | $ | (0.01 | ) | $ | (0.02 | ) | ||
The weighted average diluted shares of common stock outstanding for the three months ended March 31, 2015 excludes the effect of 1,300,000 out-of-the-money options, because their effect 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 | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Unvested restricted stock | 311 | 684 | ||||||
Shares of common stock issuable upon conversion of preferred stock, Series A-2 | 133 | 133 | ||||||
Stock options outstanding | 1,321 | 1,665 | ||||||
Unvested restricted stock units | 2,769 | — | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Operating Leases | ||||
We lease two facilities in Denver, CO and Oxnard, CA that are under operating leases through December 2018 and March 2020, respectively. Both of these leases require us to pay increases in real estate taxes, operating costs and repairs over certain base year amounts. Lease payments for the three months ended March 31, 2015 and 2014 were $126,000 and $165,000, respectively. | ||||
Future minimum rental commitments under all non-cancelable operating leases as of March 31, 2015, are as follows (in thousands): | ||||
Year Ending December 31, | ||||
Remaining 2015 | $ | 208 | ||
2016 | 294 | |||
2017 | 301 | |||
2018 | 308 | |||
2019 | 88 | |||
2020 | 23 | |||
$ | 1,222 | |||
For the year ended December 31, 2014 and through February 2015, the Company leased office space in New Jersey on a month-to-month basis. In March 2015, the Company terminated this lease and no longer leases office space in New Jersey. The Company recorded impairment losses of $125,000 relating to property and equipment, primarily consisting of furniture and leasehold improvements. | ||||
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. The Company recorded impairment losses of $101,000 relating to property and equipment, primarily consisting of furniture and leasehold improvements. These charges are recorded in Impairment Charges on the Company’s condensed consolidated statements of operations for the three months ended March 31, 2014. In August 2014, the Company entered into a termination agreement relating to this lease. In exchange for the Company's termination payment of $150,000, paid in 2014, the Company was released from all future obligations under the lease. | ||||
Commercial Commitments | ||||
We have entered into a number of agreements with our suppliers to purchase communications and consulting 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 suppliers. Glowpoint does not believe that any loss contingency related to a potential shortfall should be recorded in the consolidated financial statements because it is not probable, from the information available and from prior experience, that Glowpoint has incurred a liability. | ||||
In June 2010, the Company entered into a Technology Development & Operations Outsourcing arrangement with UTC Associates, Inc. (“UTC”). In March 2015, the Company received a demand letter from UTC regarding the expiration of the UTC arrangement. The letter alleges default by the Company of certain minimum commitment amounts contained in the arrangement and notifies the Company of UTC’s intent to commence litigation in the event that the Company does not pay $957,000 allegedly due UTC under the arrangement. The Company believes the demand to be without merit and intends to vigorously defend itself in any litigation filed in connection with this dispute. | ||||
Letters of Credit | ||||
As of March 31, 2015, the Company had an outstanding irrevocable standby letter of credit with Comerica Bank for $148,000 to serve as our security deposit for our lease of office space in Colorado. See Note 4. |
Major_Customers
Major Customers | 3 Months Ended |
Mar. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Major Customers | Major Customers |
Major customers are defined as direct customers or channel partners that account for more than 10% of the Company’s revenues. Our largest customer, a channel partner, represented a total of approximately 10% of our revenue for the three months ended March 31, 2015, and 14% of our outstanding accounts receivable at March 31, 2015. One additional customer, a channel partner, accounted for 12% of accounts receivable at March 31, 2015 and approximately 11% and 9% of our revenue for the year ended December 31, 2014 and the three months ended March 31, 2015, respectively. This customer notified the Company that it intends to terminate the services provided by the Company on or before June 30, 2015. The loss of a major customer without the replacement of such revenue from other existing or new customers would have a material adverse effect on the Company’s financial results and operations. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
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, was an officer of ABM from 2007 until April 2015. Revenue from ABM for the three months ended March 31, 2015 and 2014 was $33,000 and $33,000, respectively. As of March 31, 2015, 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 three months ended March 31, 2015 and 2014 were $0 and $37,500, respectively; and such fees have been recorded in General and Administrative expenses on the Company's condensed consolidated statements of operations. As of March 31, 2015, there were no remaining payment obligations to Mr. DeLuca. | |
As of March 31, 2015, 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 6 for a description of the terms of the SRS Note. | |
As of March 31, 2015, Main Street owns 7,711,517 shares, or 22%, of the Company's common stock. Main Street is the Company's debt lender (see Note 6). | |
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) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
The condensed consolidated financial statements include the accounts of Glowpoint and our 100%-owned subsidiary, 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. | |
Reclassifications | Reclassifications |
Certain prior year amounts have been reclassified to conform with the current year presentation. | |
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. | |
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. This 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. The FASB has issued for public comment a proposed ASU that would defer the effective date of ASU 2014-09 by one year. 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, the 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, which 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 2014-15 on our financial statements and disclosures. | |
In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU requires retrospective adoption and will be effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years. We expect the adoption of this guidance will not have a material impact on our financial statements. | |
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. | |
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) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Liabilities Disclosure [Abstract] | ||||||||
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Accrued compensation | $ | 381 | $ | 271 | ||||
Accrued severance costs | 22 | 20 | ||||||
Accrued communication costs | 200 | 272 | ||||||
Accrued professional fees | 88 | 146 | ||||||
Accrued interest | 119 | 143 | ||||||
Other accrued expenses | 254 | 382 | ||||||
Deferred rent expense | 91 | 75 | ||||||
Deferred revenue | 128 | 76 | ||||||
Customer deposits | 210 | 191 | ||||||
Accrued expenses and other liabilities | $ | 1,493 | $ | 1,576 | ||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Disclosure [Abstract] | |||||||
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following (in thousands): | ||||||
March 31, 2015 | December 31, 2014 | ||||||
SRS Note | $ | 1,785 | $ | 1,785 | |||
Main Street Term Loan | 9,000 | 9,000 | |||||
Main Street Revolver | 400 | 400 | |||||
11,185 | 11,185 | ||||||
Less current maturities | (400 | ) | (400 | ) | |||
Long-term debt, net of current portion | $ | 10,785 | $ | 10,785 | |||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) (Stock Options [Member]) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
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 three months ended March 31, 2015, 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, 2014 | 1,350 | $ | 2.02 | 729 | $ | 2.05 | |||||||
Granted | — | — | |||||||||||
Exercised | — | — | |||||||||||
Expired | (3 | ) | 7.68 | ||||||||||
Forfeited and canceled | (26 | ) | 2.1 | ||||||||||
Options outstanding, March 31, 2015 | 1,321 | $ | 2 | 796 | $ | 2.06 | |||||||
Stock option compensation expense is allocated | Stock-based compensation expense related to stock options is allocated as follows for the three months ended March 31, 2015 and 2014 (in thousands): | ||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
General and administrative | $ | 102 | $ | 141 | |||||||||
$ | 102 | $ | 141 | ||||||||||
Restricted_Stock_Tables
Restricted Stock (Tables) (Restricted Stock [Member]) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 three months ended March 31, 2015, is presented below (shares in thousands): | |||||||
Restricted Shares | Weighted Average | |||||||
Grant Price | ||||||||
Unvested restricted shares outstanding, December 31, 2014 | 641 | $ | 1.61 | |||||
Granted | — | — | ||||||
Vested | (234 | ) | 1.62 | |||||
Forfeited | (96 | ) | 1.68 | |||||
Unvested restricted shares outstanding, March 31, 2015 | 311 | $ | 1.59 | |||||
Schedule of share-based compensation, Restricted stock, Allocation of recognized period costs | Stock-based compensation expense related to restricted stock is allocated as follows for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Cost of revenue | $ | (22 | ) | $ | 16 | |||
Research and development | (5 | ) | 3 | |||||
Sales and marketing | (31 | ) | 2 | |||||
General and administrative | (1 | ) | 71 | |||||
$ | (59 | ) | $ | 92 | ||||
Restricted_Stock_Units_Tables
Restricted Stock Units (Tables) (Restricted Stock Units [Member]) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Restricted Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Summary of restricted stock units granted, vested, forfeited and unvested outstanding | A summary of restricted stock units granted, vested, forfeited and unvested outstanding as of, and changes made during, the three months ended March 31, 2015, is presented below (shares in thousands): | |||||||
Restricted Stock Units | Weighted Average | |||||||
Grant Price | ||||||||
Unvested restricted stock units outstanding, December 31, 2014 | — | $ | — | |||||
Granted | 2,769 | 1.04 | ||||||
Vested | — | — | ||||||
Forfeited | — | — | ||||||
Unvested restricted stock units outstanding, March 31, 2015 | 2,769 | $ | 1.04 | |||||
Schedule of share-based compensation, Restricted stock units, Allocation of recognized period costs | Stock-based compensation expense related to restricted stock units is allocated as follows for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Cost of revenue | $ | 2 | $ | — | ||||
Research and development | 2 | — | ||||||
Sales and marketing | 1 | — | ||||||
General and administrative | 65 | — | ||||||
$ | 70 | $ | — | |||||
Loss_Per_Share_Tables
Loss Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net loss | $ | (234 | ) | $ | (834 | ) | ||
Less: preferred stock dividends | 5 | 5 | ||||||
Net loss attributable to common stockholders | $ | (239 | ) | $ | (839 | ) | ||
Weighted average shares outstanding - basic | 35,482 | 34,858 | ||||||
Weighted average shares outstanding - diluted | 35,482 | 34,858 | ||||||
Basic net loss per share | $ | (0.01 | ) | $ | (0.02 | ) | ||
Diluted net loss per share | $ | (0.01 | ) | $ | (0.02 | ) | ||
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 | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Unvested restricted stock | 311 | 684 | ||||||
Shares of common stock issuable upon conversion of preferred stock, Series A-2 | 133 | 133 | ||||||
Stock options outstanding | 1,321 | 1,665 | ||||||
Unvested restricted stock units | 2,769 | — | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
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 March 31, 2015, are as follows (in thousands): | |||
Year Ending December 31, | ||||
Remaining 2015 | $ | 208 | ||
2016 | 294 | |||
2017 | 301 | |||
2018 | 308 | |||
2019 | 88 | |||
2020 | 23 | |||
$ | 1,222 | |||
Business_Description_and_Basis1
Business Description and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2015 | |
segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Ownership percentage by parent (percent) | 100.00% |
Liquidity_Details
Liquidity (Details) (USD $) | 3 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 17, 2013 | |
Organization, Presentation and Liquidity [Line Items] | |||||
Cash | $1,871,000 | $2,186,000 | $1,938,000 | $2,294,000 | |
Working capital | 2,284,000 | ||||
Restricted cash | 148,000 | ||||
Net loss | -234,000 | -834,000 | |||
Net cash provided by operating activities | 602,000 | 534,000 | |||
Main Street Term Loan | 11,185,000 | 11,185,000 | |||
Senior secured term loan facility [Member] | Main Street Capital Corporation [Member] | |||||
Organization, Presentation and Liquidity [Line Items] | |||||
Revolving loan facility, maximum borrowing capacity | 11,000,000 | ||||
Main Street Term Loan | 9,000,000 | 9,000,000 | |||
Revolving loan facility, unused borrowing capacity | 2,000,000 | ||||
Senior secured revolving loan facility [Member] | Main Street Capital Corporation [Member] | |||||
Organization, Presentation and Liquidity [Line Items] | |||||
Revolving loan facility, maximum borrowing capacity | 2,000,000 | ||||
Main Street Revolver | 400,000 | 400,000 | |||
Revolving loan facility, unused borrowing capacity | $1,600,000 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Allowance for doubtful accounts | $38,000 | $54,000 | |
Impairment charges | 125,000 | 101,000 | |
Capitalized Software Costs [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Capitalized computer software, additions | 523,000 | 428,000 | |
Capitalized computer software, amortization | -125,000 | -163,000 | |
Impairment charges | 0 | 0 | |
New Jersey [Member] | Property and equipment [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of long-lived assets to be disposed of | 125,000 | ||
Pennsylvania [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | 225,000 | ||
Pennsylvania [Member] | Property and equipment [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of long-lived assets to be disposed of | 101,000 | ||
Revenues [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Excise and sales taxes | 330,000 | 326,000 | |
Network and Infrastructure Costs [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Excise and sales taxes | $309,000 | $310,000 | |
Minimum [Member] | Capitalized Software Costs [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years | ||
Minimum [Member] | Up-front Payment Arrangement [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Deferred revenue, estimated recognition period | 12 months | ||
Maximum [Member] | Capitalized Software Costs [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 4 years | ||
Maximum [Member] | Up-front Payment Arrangement [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Deferred revenue, estimated recognition period | 24 months |
Restricted_Cash_Details
Restricted Cash (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash | $1,871 | $1,938 | $2,186 | $2,294 |
Comerica Bank [Member] | Colorado [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Letters of credit outstanding, amount | $148 | $185 |
Accrued_Expenses_and_Other_Lia2
Accrued Expenses and Other Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Expenses, Current [Abstract] | ||
Accrued compensation | $381 | $271 |
Accrued severance costs | 22 | 20 |
Accrued communication costs | 200 | 272 |
Accrued professional fees | 88 | 146 |
Accrued interest | 119 | 143 |
Other accrued expenses | 254 | 382 |
Deferred rent expense | 91 | 75 |
Deferred revenue | 128 | 76 |
Customer deposits | 210 | 191 |
Accrued expenses and other liabilities | $1,493 | $1,576 |
Debt_Details
Debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $11,185 | $11,185 |
Less current maturities | -400 | -400 |
Long-term debt, net of current portion | 10,785 | 10,785 |
Term Loan [Member] | Main Street Capital Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Main Street Term Loan | 9,000 | 9,000 |
Revolving Credit Facility [Member] | Main Street Capital Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Main Street Revolver | 400 | 400 |
Promissory Note with Stockholder Representative [Member] | Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
SRS Note | $1,785 | $1,785 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 3 Months Ended | |||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 01, 2015 | Feb. 28, 2015 | Oct. 17, 2013 | |
Debt Instrument [Line Items] | ||||||
Deferred financing costs | $180,000 | $192,000 | ||||
Amortization of financing costs | 22,000 | 22,000 | ||||
Current portion of long-term debt | 400,000 | 400,000 | ||||
Prepaid expenses and other current assets [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance expense | 83,000 | 84,000 | ||||
Promissory Note with Stockholder Representative [Member] | Promissory Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 15.00% | 10.00% | ||||
SRS Note | 1,785,000 | 1,785,000 | ||||
February 15, 2014 to April 15, 2015 [Member] | Comerica Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal payment as percentage of excess cash flow (percent) | 33.00% | |||||
February 15, 2014 to April 15, 2015 [Member] | Promissory Note with Stockholder Representative [Member] | Promissory Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, periodic principal payment | 50,000 | |||||
Debt instrument, additional periodic payment, principal, earnings benchmark, measurement period | 3 months | |||||
Debt instrument, additional periodic payment, principal, reduction to calculated payment | 1,500,000 | |||||
August 15, 2015 to August 15, 2018 [Member] | Comerica Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal payment as percentage of excess cash flow (percent) | 50.00% | |||||
August 15, 2015 to August 15, 2018 [Member] | Promissory Note with Stockholder Representative [Member] | Promissory Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, additional periodic payment, principal, earnings benchmark, measurement period | 6 months | |||||
Debt instrument, additional periodic payment, principal, reduction to calculated payment | 3,000,000 | |||||
Debt instrument, additional periodic payment, principal, percent of earnings benchmark (percent) | 40.00% | |||||
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 12.00% | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 8.00% | |||||
Main Street Capital Corporation [Member] | Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving loan facility, maximum borrowing capacity | 11,000,000 | |||||
Main Street Term Loan | 9,000,000 | 9,000,000 | ||||
Main Street Capital Corporation [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving loan facility, maximum borrowing capacity | 2,000,000 | |||||
Net payments on revolving loan facility | $400,000 |
Capital_Lease_Obligations_Deta
Capital Lease Obligations (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Depreciation expense on the equipment under the capital leases | $13,000 | $40,000 | |
Current portion of capital lease obligations | 25,000 | 41,000 | |
Long-term portion of capital lease obligations | $0 | $1,000 |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | ||
Preferred Stock, shares authorized | 7,500 | 7,500 |
Preferred Stock, shares issued | 53 | 53 |
Preferred Stock, shares outstanding | 53 | 53 |
Preferred Stock stated value (in dollars per share) | $0.00 | $0.00 |
Accrued dividends | $45 | $40 |
Conversion price below this fair value of the common stock (in dollars per share) | $1.16 | |
Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, shares authorized | 5,000,000 | |
Series B-1 Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, shares authorized | 100 | |
Preferred Stock, shares issued | 0 | |
Preferred Stock, shares outstanding | 0 | |
Series A-2 Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, shares authorized | 7,500 | |
Preferred Stock, shares issued | 53 | |
Preferred Stock, shares outstanding | 53 | |
Preferred Stock stated value (in dollars per share) | $7,500 | |
Conversion of preferred stock (in dollars per share) | $2.98 | $2.98 |
Convertible preferred stock, shares issued upon conversion | 2,514 | |
Preferred stock, cumulative dividend percentage rate (per annum) | 5.00% | |
Accrued dividends | $45 | |
Series D Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, shares authorized | 4,000 | |
Preferred Stock, shares issued | 0 | |
Preferred Stock, shares outstanding | 0 |
Common_Stock_Details
Common Stock (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Share data in Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 20, 2015 | Dec. 31, 2014 | Sep. 16, 2014 |
Class of Stock [Line Items] | |||||
Capitalized stock issuance costs | $180,000 | $192,000 | |||
Amortized financing costs charged against additional paid-in capital | 22,000 | 22,000 | |||
Common stock [Member] | |||||
Class of Stock [Line Items] | |||||
Common shares sold in stock offering (in shares) | 17 | ||||
MLV & Co. LLC [Member] | At Market Issuance Sales Agreement [Member] | Common stock [Member] | |||||
Class of Stock [Line Items] | |||||
Stock offering, maximum sales value | 8,000,000 | ||||
Stock offering costs, commission percentage | 3.00% | 3.00% | |||
Common shares sold in stock offering (in shares) | 17 | ||||
Weighted-average selling price in common stock offering (in dollars per share) | $1.11 | ||||
Proceeds from sale of common stock | 19,000 | ||||
Proceeds from sale of common stock, net of commissions expense | 18,000 | ||||
Capitalized stock issuance costs | 125,000 | ||||
Amortized financing costs charged against additional paid-in capital | $100,000 |
Stock_Based_Compensation_Narra
Stock Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Number of awards granted (in shares) | 0 | |
Outstanding number of shares underlying options | 1,321,000 | 1,350,000 |
Unrecognized stock-based compensation expense | $2,810 | |
2014 Equity Incentive Plan [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Number of awards granted (in shares) | 2,769,000 | |
Stock Options [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Unrecognized stock-based compensation expense | $664 | |
Weighted average period for amortization of unrecognized stock-based compensation | 1 year 8 months 5 days | |
Stock Options [Member] | 2014 Equity Incentive Plan [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Number of shares authorized for issuance | 4,400,000 | |
Shares available for issuance | 1,631,000 | |
Stock Options [Member] | Stock Incentive Plan, 2000 [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Outstanding number of shares underlying options | 87,000 | |
Stock Options [Member] | Stock Incentive Plan, 2007 [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Outstanding number of shares underlying options | 1,263,000 |
Stock_Based_Compensation_Optio
Stock Based Compensation (Options Outstanding) (Details) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding Number of Shares Underlying Options, Beginning | 1,350 |
Outstanding Number of Shares Underlying Options, Granted | 0 |
Outstanding Number of Shares Underlying Options, Exercised | 0 |
Outstanding Number of Shares Underlying Options, Expired | -3 |
Outstanding Number of Shares Underlying Options, Forfeited | -26 |
Outstanding Number of Shares Underlying Options, Ending | 1,321 |
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) | $2.02 |
Outstanding Weighted Average Exercise Price, Granted (in dollars per share) | $0 |
Outstanding Weighted Average Exercise Price, Exercised (in dollars per share) | $0 |
Outstanding Weighted Average Exercise Price, Expired (in dollars per share) | $7.68 |
Outstanding Weighted Average Exercise Price, Forfeited (in dollars per share) | $2.10 |
Outstanding Weighted Average Exercise Price, Ending (in dollars per share) | $2 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable [Abstract] | |
Exercisable Number of Shares Underlying Options, Beginning | 729 |
Exercisable Number of Shares Underlying Options, Ending | 796 |
Exercisable Weighted Average Exercise Price, Beginning (in dollars per share) | $2.05 |
Exercisable Weighted Average Exercise Price, Ending (in dollars per share) | $2.06 |
Stock_Based_Compensation_Expen
Stock Based Compensation (Expense Allocation) (Details) (Stock Options [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $102 | $141 |
General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $102 | $141 |
Restricted_Stock_Activity_Deta
Restricted Stock (Activity) (Details) (Restricted Stock [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Restricted Stock [Member] | |
Restricted Stock, Number of Shares [Roll Forward] | |
Unvested restricted shares/units outstanding, beginning | 641 |
Granted, restricted shares/units | 0 |
Vested, restricted shares/units | -234 |
Forfeited, restricted shares/units | -96 |
Unvested restricted shares/units outstanding, ending | 311 |
Restricted Stock, Weighted Average Grant Price [Roll Forward] | |
Unvested restricted shares/units, weighted average grant price, beginning (in dollars per share) | $1.61 |
Granted, weighted average grant price (in dollars per share) | $0 |
Vested, weighted average grant price (in dollars per share) | $1.62 |
Forfeited, weighted average grant price (in dollars per share) | $1.68 |
Unvested restricted shares/units, weighted average grant price, ending (in dollars per share) | $1.59 |
Restricted_Stock_Allocations_a
Restricted Stock (Allocations and Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | $2,810 | |
Additional Paid-in Capital [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Reversal of stock-based compensation expense | 88 | |
Additional Paid-in Capital [Member] | Unvested Awards, Forfeited [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Reversal of stock-based compensation expense | 26 | |
Additional Paid-in Capital [Member] | Performance-based Awards, Revised Estimates [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Reversal of stock-based compensation expense | 62 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested, restricted shares/units | -234 | |
Stock-based compensation expense | -59 | 92 |
Unrecognized stock-based compensation expense | 453 | |
Weighted average period for amortization of unrecognized stock-based compensation | 2 years 1 month 2 days | |
Restricted Stock [Member] | Cost of revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | -22 | 16 |
Restricted Stock [Member] | Research and development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | -5 | 3 |
Restricted Stock [Member] | Sales and marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | -31 | 2 |
Restricted Stock [Member] | General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | -1 | 71 |
Restricted Stock [Member] | Shares Withheld and Repurchased [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested, restricted shares/units | -139 | |
Minimum statutory tax withholding requirements | 139 | |
Time-based Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | 255 | |
Performance-based Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | $198 | |
Share-based compensation awards, term from grant to expiration | 10 years |
Restricted_Stock_Units_Activit
Restricted Stock Units (Activity) (Details) (Restricted Stock Units [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Restricted Stock Units [Member] | |
Restricted Stock Units, Number of Shares [Roll Forward] | |
Unvested restricted shares/units outstanding, beginning | 0 |
Granted, restricted shares/units | 2,769 |
Vested, restricted shares/units | 0 |
Forfeited, restricted shares/units | 0 |
Unvested restricted shares/units outstanding, ending | 2,769 |
Restricted Stock Units, Weighted Average Grant Price [Roll Forward] | |
Unvested restricted shares/units, weighted average grant price, beginning (in dollars per share) | $0 |
Granted, weighted average grant price (in dollars per share) | $1.04 |
Vested, weighted average grant price (in dollars per share) | $0 |
Forfeited, weighted average grant price (in dollars per share) | $0 |
Unvested restricted shares/units, weighted average grant price, ending (in dollars per share) | $1.04 |
Restricted_Stock_Units_Allocat
Restricted Stock Units (Allocation and Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Unrecognized stock-based compensation expense | $2,810 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 70 | 0 |
Restricted Stock Units [Member] | Cost of revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 2 | 0 |
Restricted Stock Units [Member] | Research and development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 2 | 0 |
Restricted Stock Units [Member] | Sales and marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 1 | 0 |
Restricted Stock Units [Member] | General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 65 | 0 |
Time-based Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Unrecognized stock-based compensation expense | 684 | |
Weighted average period for amortization of unrecognized stock-based compensation | 1 year 11 months 1 day | |
Performance-based Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Unrecognized stock-based compensation expense | $2,126 |
Loss_Per_Share_Basic_and_Dilut
Loss Per Share Basic and Diluted (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Class of Stock [Line Items] | ||
Net loss | ($234) | ($834) |
Less: preferred stock dividends | 5 | 5 |
Net loss attributable to common stockholders | ($239) | ($839) |
Weighted average shares outstanding - basic | 35,482 | 34,858 |
Weighted average shares outstanding - diluted | 35,482 | 34,858 |
Basic net income (loss) per share (in dollars per share) | ($0.01) | ($0.02) |
Diluted net income (loss) per share (in dollars per share) | ($0.01) | ($0.02) |
Loss_Per_Share_Antidilutive_De
Loss Per Share Antidilutive (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
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 | 1,300 | |
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 | 311 | 684 |
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 | 133 | 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 | 1,321 | 1,665 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common shares excluded from computation of earnings per share | 2,769 | 0 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
Aug. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Long-term Purchase Commitment [Line Items] | ||||
Operating lease payments | $126,000 | $165,000 | ||
Impairment charges | 125,000 | 101,000 | ||
Operating lease, contract termination payment | 150,000 | |||
Unrecorded claim, vendor | 957,000 | |||
New Jersey [Member] | Property and equipment [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Impairment of long-lived assets to be disposed of | 125,000 | |||
Pennsylvania [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Impairment charges | 225,000 | |||
Pennsylvania [Member] | Property and equipment [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Impairment of long-lived assets to be disposed of | 101,000 | |||
Colorado [Member] | Comerica Bank [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Letters of credit outstanding, amount | $148,000 | $185,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Future Minimum Reantal Commitments) (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining 2015 | $208 |
2016 | 294 |
2017 | 301 |
2018 | 308 |
2019 | 88 |
2020 | 23 |
Total | $1,222 |
Major_Customers_Details
Major Customers (Details) (Customer Concentration Risk [Member]) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Revenues [Member] | Customer No. 1 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% | |
Revenues [Member] | Customer No. 3 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 9.00% | 11.00% |
Accounts Receivable [Member] | Customer No. 1 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 14.00% | |
Accounts Receivable [Member] | Customer No. 2 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 12.00% | |
Number of customers | 1 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Director Affiliated Entity [Member] | ABM Industries, Inc. (ABM) [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue, related parties | $33,000 | $33,000 |
Accounts receivable, related parties, current | 11,000 | |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amounts of transaction, monthly | 12,500 | |
Related party transaction, amounts of transaction | $0 | $37,500 |
President and CEO [Member] | Promissory Note [Member] | Promissory Note with Stockholder Representative [Member] | ||
Related Party Transaction [Line Items] | ||
Interest in note payable (percent) | 27.00% | |
GP Investment Holdings, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Common shares owned by stockholder | 7,711,517 | |
Common shares owned by stockholder (percent) | 22.00% |