Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 09, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35376 | |
Entity Registrant Name | OBLONG, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0312442 | |
Entity Address, Address Line One | 25587 Conifer Road | |
Entity Address, Address Line Two | Suite 105-231 | |
Entity Address, City or Town | Conifer | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80433 | |
City Area Code | 303 | |
Local Phone Number | 640-3838 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | OBLG | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Central Index Key | 0000746210 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,285,558 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | $ 2,670 | $ 4,602 |
Accounts receivable, net | 2,207 | 2,543 |
Inventory | 1,126 | 1,816 |
Prepaid expenses and other current assets | 725 | 965 |
Total current assets | 6,728 | 9,926 |
Property and equipment, net | 641 | 1,316 |
Goodwill | 7,366 | 7,907 |
Intangibles, net | 10,737 | 12,572 |
Operating lease - right of use asset, net | 1,665 | 3,117 |
Other assets | 105 | 71 |
Total assets | 27,242 | 34,909 |
Current liabilities: | ||
Current portion of long-term debt, net of discount | 4,942 | 2,664 |
Accounts payable | 662 | 647 |
Accrued expenses and other current liabilities | 1,489 | 1,752 |
Deferred revenue | 1,973 | 1,901 |
Current portion of operating lease liabilities | 907 | 1,294 |
Total current liabilities | 9,973 | 8,258 |
Long-term liabilities: | ||
Long-term debt, net of current portion and net of discount | 3,035 | 2,843 |
Operating lease liabilities, net of current portion | 889 | 2,020 |
Other long-term liabilities | 0 | 3 |
Total long-term liabilities | 3,924 | 4,866 |
Total liabilities | 13,897 | 13,124 |
Commitments and contingencies (see Note 13) | ||
Stockholders’ equity: | ||
Common stock, $.0001 par value; 150,000,000 shares authorized; 5,355,841 shares issued and 5,242,558 outstanding at September 30, 2020 and 5,266,828 shares issued and 5,161,543 outstanding at December 31, 2019 | 1 | 1 |
Treasury stock, 113,283 and 105,285 shares of common stock at September 30, 2020 and December 31, 2019, respectively | (181) | (165) |
Additional paid-in capital | 207,558 | 207,383 |
Accumulated deficit | (194,033) | (185,434) |
Total stockholders’ equity | 13,345 | 21,785 |
Total liabilities and stockholders’ equity | 27,242 | 34,909 |
Series A-2 Preferred Stock | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Series C Preferred Stock | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Series D Preferred Stock | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Series E Preferred Stock | ||
Stockholders’ equity: | ||
Preferred stock | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Preferred stock, convertible, shares authorized (in shares) | 5,000,000 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 5,355,841 | 5,266,828 |
Common stock, shares outstanding (in shares) | 5,242,558 | 5,161,543 |
Treasury stock, shares (in shares) | 113,283 | 105,285 |
Series A-2 Preferred Stock | ||
Preferred stock, convertible, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, stated value | $ 7,500 | $ 7,500 |
Preferred stock, convertible, shares authorized (in shares) | 7,500 | 7,500 |
Preferred stock, convertible, shares issued (in shares) | 45 | 32 |
Preferred stock, convertible, shares outstanding (in shares) | 45 | 32 |
Preferred stock, convertible, liquidation value | $ 338,000 | |
Series C Preferred Stock | ||
Preferred stock, convertible, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, stated value | $ 1,000 | $ 1,000 |
Preferred stock, convertible, shares authorized (in shares) | 1,750 | 1,750 |
Preferred stock, convertible, shares issued (in shares) | 250 | 475 |
Preferred stock, convertible, shares outstanding (in shares) | 250 | 475 |
Preferred stock, convertible, liquidation value | $ 250,000 | |
Series D Preferred Stock | ||
Preferred stock, convertible, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, stated value | $ 28.50 | $ 28.50 |
Preferred stock, convertible, shares authorized (in shares) | 1,750,000 | 1,750,000 |
Preferred stock, convertible, shares issued (in shares) | 1,702,010 | 1,734,901 |
Preferred stock, convertible, shares outstanding (in shares) | 1,702,010 | 1,734,901 |
Preferred stock, convertible, liquidation value | $ 48,507,000 | |
Series E Preferred Stock | ||
Preferred stock, convertible, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, stated value | $ 28.50 | $ 28.50 |
Preferred stock, convertible, shares authorized (in shares) | 175,000 | 175,000 |
Preferred stock, convertible, shares issued (in shares) | 131,579 | 131,579 |
Preferred stock, convertible, shares outstanding (in shares) | 131,579 | 131,579 |
Preferred stock, convertible, liquidation value | $ 3,750,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 3,266 | $ 2,370 | $ 11,410 | $ 7,403 |
Cost of revenue (exclusive of depreciation and amortization) | 1,612 | 1,582 | 5,684 | 4,901 |
Gross profit | 1,654 | 788 | 5,726 | 2,502 |
Operating expenses: | ||||
Research and development | 747 | 190 | 3,062 | 652 |
Sales and marketing | 668 | 38 | 2,708 | 111 |
General and administrative | 1,332 | 1,035 | 5,173 | 2,917 |
Impairment charges | 117 | 20 | 667 | 473 |
Depreciation and amortization | 780 | 145 | 2,392 | 461 |
Total operating expenses | 3,644 | 1,428 | 14,002 | 4,614 |
Loss from operations | (1,990) | (640) | (8,276) | (2,112) |
Interest and other expense, net | 102 | 0 | 322 | 1 |
Foreign exchange loss (gain) | (7) | 0 | 0 | 0 |
Interest and other expense, net | 95 | 0 | 322 | 1 |
Net loss | (2,085) | (640) | (8,598) | (2,113) |
Preferred stock dividends | 4 | 4 | 12 | 23 |
Net loss attributable to common stockholders | $ (2,089) | $ (644) | $ (8,610) | $ (2,136) |
Net loss attributable to common stockholders per share: | ||||
Basic and diluted net loss per share (in dollars per share) | $ (0.40) | $ (0.12) | $ (1.64) | $ (0.42) |
Weighted-average number of shares of common stock: | ||||
Basic and diluted (in shares) | 5,237 | 5,184 | 5,257 | 5,128 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Series A-2 Preferred Stock | Series D Preferred Stock | Preferred StockSeries A-2 Preferred Stock | Preferred StockSeries B Preferred Stock | Preferred StockSeries C Preferred Stock | Preferred StockSeries D Preferred Stock | Preferred StockSeries E Preferred Stock | Common Stock | Common StockSeries C Preferred Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Deficit |
Beginning Balance (in shares) at Dec. 31, 2018 | 32 | 75 | 525 | 5,113,726 | 132,519 | ||||||||
Beginning Balance, value at Dec. 31, 2018 | $ 6,830 | $ 0 | $ 0 | $ 0 | $ 1 | $ (496) | $ 184,998 | $ (177,673) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (598) | (598) | |||||||||||
Stock-based compensation | 29 | 29 | |||||||||||
Issuance of stock on vested restricted stock units (in shares) | 16,824 | ||||||||||||
Preferred stock conversion (in shares) | 75 | 50 | 43,402 | ||||||||||
Preferred stock dividends | (15) | (15) | |||||||||||
Purchase of treasury stock (in shares) | 900 | ||||||||||||
Purchase of treasury stock | (1) | $ (1) | |||||||||||
Ending Balance (in shares) at Mar. 31, 2019 | 32 | 0 | 475 | 5,173,952 | 133,419 | ||||||||
Ending Balance, value at Mar. 31, 2019 | 6,245 | $ 0 | $ 0 | $ 0 | $ 1 | $ (497) | 185,012 | (178,271) | |||||
Beginning Balance (in shares) at Dec. 31, 2018 | 32 | 75 | 525 | 5,113,726 | 132,519 | ||||||||
Beginning Balance, value at Dec. 31, 2018 | 6,830 | $ 0 | $ 0 | $ 0 | $ 1 | $ (496) | 184,998 | (177,673) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (2,113) | ||||||||||||
Ending Balance (in shares) at Sep. 30, 2019 | 32 | 0 | 475 | 5,238,952 | 98,419 | ||||||||
Ending Balance, value at Sep. 30, 2019 | 4,710 | $ 0 | $ 0 | $ 0 | $ 1 | $ (165) | 184,660 | (179,786) | |||||
Beginning Balance (in shares) at Dec. 31, 2018 | 32 | 75 | 525 | 5,113,726 | 132,519 | ||||||||
Beginning Balance, value at Dec. 31, 2018 | $ 6,830 | $ 0 | $ 0 | $ 0 | $ 1 | $ (496) | 184,998 | (177,673) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Preferred stock conversion (in shares) | 50 | 16,667 | |||||||||||
Forfeited restricted stock (in shares) | (10,063) | ||||||||||||
Ending Balance (in shares) at Dec. 31, 2019 | 32 | 475 | 1,734,901 | 131,579 | 5,266,828 | 105,285 | |||||||
Ending Balance, value at Dec. 31, 2019 | $ 21,785 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1 | $ (165) | 207,383 | (185,434) | ||||
Beginning Balance (in shares) at Mar. 31, 2019 | 32 | 0 | 475 | 5,173,952 | 133,419 | ||||||||
Beginning Balance, value at Mar. 31, 2019 | 6,245 | $ 0 | $ 0 | $ 0 | $ 1 | $ (497) | 185,012 | (178,271) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (875) | (875) | |||||||||||
Stock-based compensation | 24 | 24 | |||||||||||
Issuance of stock on vested restricted stock units (in shares) | (75,000) | ||||||||||||
Issuance of stock on vested restricted stock units | $ 382 | (382) | |||||||||||
Preferred stock dividends | (4) | (4) | |||||||||||
Purchase of treasury stock (in shares) | 24,000 | ||||||||||||
Purchase of treasury stock | (34) | $ (34) | |||||||||||
Ending Balance (in shares) at Jun. 30, 2019 | 32 | 0 | 475 | 5,173,952 | 82,419 | ||||||||
Ending Balance, value at Jun. 30, 2019 | 5,356 | $ 0 | $ 0 | $ 0 | $ 1 | $ (149) | 184,650 | (179,146) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (640) | (640) | |||||||||||
Stock-based compensation | 14 | 14 | |||||||||||
Issuance of stock on vested restricted stock units (in shares) | 65,000 | ||||||||||||
Preferred stock dividends | (4) | (4) | |||||||||||
Purchase of treasury stock (in shares) | 16,000 | ||||||||||||
Purchase of treasury stock | (16) | $ (16) | |||||||||||
Ending Balance (in shares) at Sep. 30, 2019 | 32 | 0 | 475 | 5,238,952 | 98,419 | ||||||||
Ending Balance, value at Sep. 30, 2019 | 4,710 | $ 0 | $ 0 | $ 0 | $ 1 | $ (165) | 184,660 | (179,786) | |||||
Beginning Balance (in shares) at Dec. 31, 2019 | 32 | 475 | 1,734,901 | 131,579 | 5,266,828 | 105,285 | |||||||
Beginning Balance, value at Dec. 31, 2019 | 21,785 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1 | $ (165) | 207,383 | (185,434) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (3,129) | (3,129) | |||||||||||
Stock-based compensation | 32 | 32 | |||||||||||
Preferred stock conversion (in shares) | 150 | 50,000 | |||||||||||
Forfeited restricted stock (in shares) | (14,441) | ||||||||||||
Preferred stock dividends | (4) | (4) | |||||||||||
Issuance of preferred stock for accrued dividends (in shares) | 13 | ||||||||||||
Issuance of preferred stock for accrued dividends | 98 | 98 | |||||||||||
Purchase of treasury stock | (7) | $ (7) | |||||||||||
Ending Balance (in shares) at Mar. 31, 2020 | 45 | 325 | 1,720,460 | 131,579 | 5,316,828 | 105,285 | |||||||
Ending Balance, value at Mar. 31, 2020 | 18,775 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1 | $ (172) | 207,509 | (188,563) | ||||
Beginning Balance (in shares) at Dec. 31, 2019 | 32 | 475 | 1,734,901 | 131,579 | 5,266,828 | 105,285 | |||||||
Beginning Balance, value at Dec. 31, 2019 | 21,785 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1 | $ (165) | 207,383 | (185,434) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (8,598) | ||||||||||||
Preferred stock conversion (in shares) | 13 | 1,686,659 | 225 | 75,000 | |||||||||
Ending Balance (in shares) at Sep. 30, 2020 | 45 | 250 | 1,702,010 | 131,579 | 5,355,841 | 113,283 | |||||||
Ending Balance, value at Sep. 30, 2020 | 13,345 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1 | $ (181) | 207,558 | (194,033) | ||||
Beginning Balance (in shares) at Mar. 31, 2020 | 45 | 325 | 1,720,460 | 131,579 | 5,316,828 | 105,285 | |||||||
Beginning Balance, value at Mar. 31, 2020 | 18,775 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1 | $ (172) | 207,509 | (188,563) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (3,385) | (3,385) | |||||||||||
Stock-based compensation | 29 | 29 | |||||||||||
Issuance of stock on vested restricted stock units (in shares) | 23,334 | ||||||||||||
Forfeited restricted stock (in shares) | (17,364) | ||||||||||||
Preferred stock dividends | (4) | (4) | |||||||||||
Issuance of preferred stock for accrued dividends | 1 | 1 | |||||||||||
Purchase of treasury stock (in shares) | 7,998 | ||||||||||||
Purchase of treasury stock | (9) | $ (9) | |||||||||||
Ending Balance (in shares) at Jun. 30, 2020 | 0 | 325 | 1,703,096 | 131,579 | 5,340,162 | 113,283 | |||||||
Ending Balance, value at Jun. 30, 2020 | 15,407 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1 | $ (181) | 207,535 | (191,948) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (2,085) | (2,085) | |||||||||||
Stock-based compensation | 27 | 27 | |||||||||||
Preferred stock conversion (in shares) | 75 | 25,000 | |||||||||||
Forfeited restricted stock (in shares) | (1,086) | (9,321) | |||||||||||
Preferred stock dividends | (4) | (4) | |||||||||||
Ending Balance (in shares) at Sep. 30, 2020 | 45 | 250 | 1,702,010 | 131,579 | 5,355,841 | 113,283 | |||||||
Ending Balance, value at Sep. 30, 2020 | $ 13,345 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1 | $ (181) | $ 207,558 | $ (194,033) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (8,598) | $ (2,113) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,392 | 461 |
Bad debt expense | 14 | 12 |
Amortization of debt discount | 53 | 0 |
Amortization of right of use asset | 834 | 37 |
Payments on lease liability | (895) | (43) |
Stock-based compensation | 89 | 67 |
Loss on foreign currency remeasurement | 0 | 1 |
Change in inventory | 0 | 0 |
Impairment charges - property and equipment | 126 | 20 |
Impairment charges - goodwill | 541 | 453 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 322 | 270 |
Inventory | 689 | 0 |
Prepaid expenses and other current assets | 240 | 171 |
Other assets | (32) | 25 |
Accounts payable | 15 | 202 |
Accrued expenses and other current liabilities | (184) | (219) |
Deferred revenue | 72 | (12) |
Other liabilities | (3) | 0 |
Net cash used in operating activities | (4,325) | (668) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (8) | (17) |
Net cash used in investing activities | (8) | (17) |
Cash flows from financing activities: | ||
Proceeds from PPP Loan | 2,417 | 0 |
Purchase of treasury stock | (16) | (51) |
Net cash provided by (used in) financing activities | 2,401 | (51) |
Decrease in cash and cash equivalents | (1,932) | (736) |
Cash at beginning of period | 4,602 | 2,007 |
Cash at end of period | 2,670 | 1,271 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 159 | 0 |
Non-cash investing and financing activities: | ||
Issuance preferred stock in exchange for accrued dividends | 99 | 0 |
Accrued preferred stock dividends | 12 | 23 |
Issuance of common stock for vested restricted stock units | $ 0 | $ 382 |
Business Description and Signif
Business Description and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Business Description and Significant Accounting Policies | Note 1 - Business Description and Significant Accounting Policies Business Description Oblong, Inc. (“Oblong” or “we” or “us” or the “Company”) was formed as a Delaware corporation in May 2000 and is a provider of patented multi-stream collaboration technologies and managed services for video collaboration and network applications. Prior to March 6, 2020, Oblong, Inc. was named Glowpoint, Inc. (“Glowpoint”). On March 6, 2020, Glowpoint changed its name to Oblong, Inc. On October 1, 2019, the Company closed an acquisition of all of the outstanding equity interest of Oblong Industries, Inc., a privately held Delaware corporation founded in 2006 (“Oblong Industries” and, such transaction, the “Acquisition”); see further discussion in Note 3 - Oblong Industries Acquisition. In this Report, we use the terms “Oblong” or “we” or “us” or the “Company” to refer to (i) Oblong (formerly Glowpoint), for periods prior to the closing of the Acquisition, and (ii) the “combined organization” of Oblong (formerly Glowpoint) and Oblong Industries for periods after the closing of the Acquisition. For purposes of segment reporting, we refer to the Oblong (formerly Glowpoint) business as “Glowpoint” herein, and to the Oblong Industries business as “Oblong Industries” herein. Basis of Presentation The Company's fiscal year ends on December 31 of each calendar year. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended December 31, 2019. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles 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 revenue and expenses during the reporting periods. Actual results could differ from these estimates. The December 31, 2019 year-end condensed consolidated balance sheet data in this document was derived from audited consolidated financial statements. These condensed consolidated financial statements and notes included in this quarterly report on Form 10-Q does not include all disclosures required by U.S. generally accepted accounting principles and should be read in conjunction with the Company's audited consolidated financial statements as of and for the year ended December 31, 2019 and notes thereto included in the Company's fiscal 2019 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on May 15, 2020 (the “2019 10-K”). The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. Because the closing of the Acquisition of Oblong Industries occurred on October 1, 2019, the Company’s condensed consolidated financial statements for the three and nine months ended September 30, 2019 included in this Report do not reflect Oblong Industries’ financial results. Principles of Consolidation The condensed consolidated financial statements include the accounts of Oblong and our 100%-owned subsidiaries, (i) GP Communications, LLC (“GP Communications”), whose business function is to provide interstate telecommunications services for regulatory purposes, (ii) Oblong Industries, and (iii) the following subsidiaries of Oblong Industries: Oblong Industries Europe, S.L. and Oblong Europe Limited. All inter-company balances and transactions have been eliminated in consolidation. The U.S. Dollar is the functional currency for all subsidiaries. Segments Prior to the Acquisition of Oblong Industries on October 1, 2019, the Company operated in one segment. Following October 1, 2019, the former businesses of Glowpoint and Oblong Industries have been managed separately and involve different products and services. Accordingly, the Company currently operates in two segments: 1) the Glowpoint (now named Oblong) business, which includes managed services for video collaboration and network applications, and 2) the Oblong Industries business, which includes products and services for visual collaboration technologies. See Note 12 - Segment Reporting for further discussion. Use of Estimates Preparation of the condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) 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 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 our 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, the estimated lives and recoverability of property and equipment, and intangible assets, the inputs used in the fair value of equity based awards as well as the values ascribed to assets acquired and liabilities assumed in the business combination. Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in our 2019 10-K. Property and Equipment Property and equipment are stated at cost and are depreciated over the estimated useful lives of the related assets, which range from three to ten years. Leasehold improvements are amortized over the shorter of either the asset’s useful life or the related lease term. Depreciation is computed on the straight-line method for financial reporting purposes. During the three and nine months ended September 30, 2020, the Company recorded asset impairment charges on property and equipment of $117,000 and $126,000, respectively, for the discontinued use of, or disposal of, property and equipment. These charges are included in “Impairment Charges” on our condensed consolidated statement of operations. The impairment charges related to property and equipment for the three and nine months ended September 30, 2019 were $20,000. Leases The Company determines if an arrangement is a lease at inception. For the Company’s operating leases, the right-of-use (“ROU”) assets represents the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Since all of the lease agreements do not provide an implicit rate, the Company estimated an incremental borrowing rate in determining the present value of the lease payments. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. Variable lease costs such as operating costs and property taxes are expensed as incurred. Treasury Stock Purchases and sales of treasury stock are accounted for using the cost method. Under this method, shares acquired are recorded at the acquisition price directly to the treasury stock account. Upon sale, the treasury stock account is reduced by the original acquisition price of the shares and any difference is recorded in equity, on a first-in first-out basis. The Company does not recognize a gain or loss to income from the purchase and sale of treasury stock. Recently Issued Accounting Pronouncements In June 2016 the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326),” which was subsequently amended in February 2020 by ASU 2020-02 “Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842).” Topic 326 introduces an impairment model that is based on expected credit losses, |
Liquidity and Going Concern Unc
Liquidity and Going Concern Uncertainty | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity and Going Concern Uncertainty | Note 2 - Liquidity and Going Concern Uncertainty As of September 30, 2020, we had $2,670,000 of cash, $5,609,000 of total obligations under the Silicon Valley Bank (“SVB”) Loan Agreement, obligations of $2,417,000 under the Paycheck Protection Program loan, and a working capital deficit of $3,245,000. For the nine months ended September 30, 2020, we incurred a net loss of $8,598,000 and used $4,325,000 of net cash in operating activities. During the nine months ended September 30, 2020, we received cash proceeds of $2,417,000 from a loan made to the Company by MidFirst Bank under the Paycheck Protection Program (PPP) contained within the Coronavirus Aid Relief, and Economic Security (CARES) Act (the “PPP Loan”). See further discussion of the PPP Loan in Note 8 - Debt. As of September 30, 2020, the SVB Loan Agreement provided that interest-only payments were due through September 30, 2020, after which monthly principal payments of $291,500, plus interest, were payable in order to fully repay the loan by March 1, 2022. Subsequent to the period of this Report, in October 2020, the Company: (i) completed a private placement of common stock for gross proceeds of $2,973,000, and (ii) completed an agreement with SVB to satisfy all outstanding obligations of $5,609,000 under the SVB Loan Agreement in exchange for a one-time cash payment of $2,500,000. See further discussion of these transactions in Note 14 - Subsequent Events. Our capital requirements in the future will continue to depend on numerous factors, including the timing and amount of revenue for the combined organization, customer renewal rates and the timing of collection of outstanding accounts receivable, in each case particularly as it relates to the combined organization’s major customers, the expense to deliver services, expense for sales and marketing, expense for research and development, capital expenditures, the cost involved in protecting intellectual property rights, the amount of forgiveness of the PPP Loan, if any, and any debt service obligations under the PPP Loan. While our Acquisition of Oblong Industries does provide additional revenues to the Company, the cost to further develop and commercialize its product offerings is expected to exceed its revenues for the foreseeable future. However, we have achieved certain cost synergies in connection with combining Glowpoint and Oblong Industries; we reduced the total of general and administrative, research and development, sales, and marketing expenses by $1,813,000, or 40%, from the first quarter of 2020 as compared to the third quarter of 2020 (or a total of $4,560,000 in the first quarter of 2020 as compared to $2,747,000 in the third quarter of 2020). We also expect to continue to invest in product development and sales and marketing expenses with the goal of growing the Company’s revenue in the future. The Company believes that, based on the combined organization’s current projection of revenue, expenses, capital expenditures, debt service obligations, and cash flows, it will not have sufficient resources to fund its operations for the next twelve months following the filing of this Report. We believe additional capital will be required to fund operations and provide growth capital including investments in technology, product development and sales and marketing. To access capital to fund operations or provide growth capital, we will need to raise capital in one or more debt and/or equity offerings. There can be no assurance that we will be successful in raising necessary capital or that any such offering will be on terms acceptable to the Company. If 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. The factors discussed above raise substantial doubt as to our ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that might result from these uncertainties. See Note 13 - Commitments and Contingencies to our condensed consolidated financial statements for discussion regarding certain additional factors that could impact the Company’s liquidity in the future. |
Oblong Industries Acquisition
Oblong Industries Acquisition | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Oblong Industries Acquisition | Note 3 - Oblong Industries Acquisition On October 1, 2019 (the “Closing Date”), the Company closed its Acquisition of Oblong Industries, Inc. The Acquisition was consummated through the merger of Glowpoint Merger Sub II, Inc., a Delaware corporation and wholly-owned subsidiary of the Company (the “Merger Sub”), with and into Oblong Industries on the Closing Date, with Oblong Industries continuing as the surviving corporation and as a wholly-owned subsidiary of the Company. The Acquisition was accounted for in accordance with FASB Accounting Standards Codification (“ASC”) Topic 805 “Business Combinations” (“ASC 805”) as a business combination, which requires an allocation of the purchase price of an acquired entity to the assets acquired and liabilities assumed based on their estimated fair values at the date of Acquisition. The purchase price and the fair value of the assets acquired and liabilities assumed were based on management estimates and values with assistance from an outside appraisal. Pursuant to ASC 805, the purchase price of $18,862,000 was measured as the fair value of the consideration exchanged in the Acquisition. The Company acquired net assets of $11,496,000, including $12,780,000 of identifiable intangible assets, in the Acquisition. The purchase price exceeded the fair value of the net assets acquired by $7,366,000, which was recorded as goodwill. The accompanying condensed consolidated financial statements do not include any revenues or expenses related to the Oblong Industries business on or prior to October 1, 2019 (the Closing Date of the Acquisition). The condensed consolidated statements of operations for the three and nine months ended September 30, 2020 include $1,942,000 and $6,669,000 of revenue, respectively, and net losses of $334,000 and $3,839,000, respectively, related to Oblong Industries. The Company's unaudited pro forma results for the three and nine months ended September 30, 2019 are summarized in the table below, assuming the Acquisition had occurred on January 1, 2019. These unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which would have actually resulted had the Acquisition occurred on January 1, 2019, nor to be indicative of future results of operations. Pro forma and unaudited (as if the Acquisition of Oblong Industries had occurred on January 1, 2019) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 ($ in thousands) ($ in thousands) Revenue Glowpoint $ 2,370 $ 7,403 Oblong Industries $ 4,259 $ 12,758 Pro forma total revenue $ 6,629 $ 20,161 Net loss Glowpoint $ 640 $ 2,113 Oblong Industries $ 3,756 $ 12,782 Pro forma net loss $ 4,396 $ 14,895 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 4 - Inventory Inventory was $1,126,000 and $1,816,000 as of September 30, 2020 and December 31, 2019, respectively, and consisted primarily of equipment related to our Mezzanine™ product offerings |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 5 - Goodwill As of September 30, 2020 and December 31, 2019, goodwill was $7,366,000 and $7,907,000, respectively. As of September 30, 2020, goodwill was comprised of $7,366,000 recorded in connection with the October 1, 2019 Acquisition of Oblong Industries. As of December 31, 2019, goodwill was comprised of (i) $7,366,000 recorded in connection with the October 1, 2019 Acquisition of Oblong Industries and (ii) $541,000 related to the Glowpoint reporting unit as discussed below. We test goodwill for impairment on an annual basis on September 30 of each year, or more frequently if events occur or circumstances change indicating that the fair value of the goodwill may be below its carrying amount. Following the Acquisition of Oblong Industries, the Company operated two reporting units, Glowpoint and Oblong Industries. During the nine months ended September 30, 2020, we considered the novel Coronavirus (COVID-19) pandemic and resulting declines in certain of the Company’s revenue to be a triggering event for an interim goodwill impairment test for both reporting units as of March 31. To determine the fair value of each reporting unit for the goodwill impairment tests, we used a weighted average of the discounted cash flow method and a market-based method (comparing the Company’s equity and analyzing multiples of revenue for comparable companies). For the Oblong Industries reporting unit, the fair value of the reporting unit exceeded its carrying amount, therefore no impairment charge was required for the three or nine months ended September 30, 2020. For the Glowpoint reporting unit, we recorded an impairment charge on goodwill of $541,000 at March 31, 2020 as the carrying amount of the reporting unit exceeded its fair value on the test date. This charge is recognized as “Impairment Charges” on our condensed consolidated Statements of Operations. The Glowpoint reporting unit’s impairment charges for the nine months ended September 30, 2019 were $453,000. The activity in goodwill during the nine months ended September 30, 2020 and the year ended December 31, 2019 is shown in the following table ($ in thousands): Goodwill Glowpoint Oblong Industries Total Balance December 31, 2018 $ 2,795 $ — $ 2,795 Impairment charges (2,254) — (2,254) Acquisition — 7,366 7,366 Balance December 31, 2019 541 7,366 7,907 Impairment charges (541) — (541) Balance September 30, 2020 $ — $ 7,366 $ 7,366 In the event we experience future declines in our revenue, cash flows and/or stock price, this may give rise to a triggering event that may require the Company to record additional impairment charges on goodwill in the future. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 6 - Intangible Assets The following table presents the components of net intangible assets (in thousands): As of September 30, 2020 As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Glowpoint Customer Relationships $ 4,335 $ (4,335) $ — $ 4,335 $ (4,335) $ — Affiliate network 994 (718) 276 994 (666) 328 Trademarks 548 (548) — 548 (504) 44 Subtotal $ 5,877 $ (5,601) $ 276 $ 5,877 $ (5,505) $ 372 Oblong Industries Developed technology 10,060 (2,016) 8,044 10,060 (504) 9,556 Trade names 2,410 (241) 2,169 2,410 (60) 2,350 Distributor relationships 310 (62) 248 310 (16) 294 Subtotal $ 12,780 $ (2,319) $ 10,461 $ 12,780 $ (580) $ 12,200 Total $ 18,657 $ (7,920) $ 10,737 $ 18,657 $ (6,085) $ 12,572 At each reporting period, we determine if there was a triggering event that may result in an impairment of our intangible assets. During the three months ended March 31, 2020, we considered the novel Coronavirus (COVID-19) pandemic and resulting declines in certain of the Company’s revenue to be a triggering event for an interim impairment test of intangible assets for both reporting units. During the three months ended September 30, 2020, we did not identify any triggering events, therefore no impairment charges were required for the three and nine months ended September 30, 2020. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets, which range from five years to twelve years in accordance with ASC Topic 350. The weighted average lives for the components of intangible assets are as follows: Glowpoint Affiliate network 12 years Trademarks 8 years Oblong Industries Developed technology 5 years Trade names 10 years Distributor relationships 5 years Related amortization expense was $611,000 and $1,835,000 for the three and nine months ended September 30, 2020, respectively. Related amortization expense was $32,000 and $95,000 for the three and nine months ended September 30, 2019, respectively. The increase is the result of the October 1, 2019 Acquisition of Oblong Industries. Amortization expense for each of the next five succeeding years will be as follows (in thousands): Remainder of 2020 $ 597 2021 2,388 2022 2,386 2023 2,378 2024 1,844 Thereafter 1,144 Total $ 10,737 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Expenses and Other Liabilities | Note 7 - Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): September 30, December 31, 2020 2019 Accrued compensation costs $ 627 $ 810 Other accrued expenses and liabilities 858 843 Accrued dividends on Series A-2 Preferred Stock 4 99 Accrued expenses and other liabilities $ 1,489 $ 1,752 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 8 - Debt Debt consisted of the following (in thousands): September 30, December 31, 2020 2019 SVB Loan Principal $ 5,609 $ 5,609 PPP Loan Principal 2,417 — Total Loan Principal 8,026 5,609 Less: Unamortized SVB debt discount (49) (102) Net carrying value 7,977 5,507 Less: SVB current maturities, net of debt discount 3,465 2,664 Less: PPP current maturities 1,477 — Total current maturities, net of debt discount 4,942 2,664 Long-term SVB obligations, net of current maturities and debt discount 2,095 2,843 Long-term PPP obligations, net of current maturities 940 — Total long-term obligations, net of current maturities and debt discount $ 3,035 $ 2,843 Future minimum principal payments are as follows (in thousands): Future Minimum Principal Payments SVB Loan PPP Loan Total Remainder of 2020 $ 874 $ 269 $ 1,143 2021 3,498 1,611 5,109 2022 1,237 537 1,774 $ 5,609 $ 2,417 $ 8,026 Silicon Valley Bank Loan Agreement and Warrant Subsequent to the period of this report, the Company and SVB completed an agreement to satisfy all outstanding obligations under the SVB Loan Agreement. As a result, as of the filing date of this Report, the Company has no outstanding obligations under the SVB Loan Agreement. For further discussion, see Note 14 - Subsequent Events. On October 1, 2019, in connection with the Acquisition of Oblong Industries, the Company and Oblong Industries, as borrowers, and SVB, as lender, executed an amendment to the SVB Loan Agreement. On October 24, 2019, GP Communications joined the SVB Loan Agreement as an additional co-borrower. The SVB Loan Agreement provided for a term loan facility of approximately $5,247,000, (the “SVB Loan”), all of which was outstanding at December 31, 2019 and September 30, 2020. On June 26, 2020, the Company and SVB entered into a Default Waiver and First Amendment (the“Amendment”) to the SVB Loan Agreement. Under the Amendment, the Bank agreed to extend the interest-only payment period under the SVB Loan Agreement through September 30, 2020, after which equal monthly principal payments of $291,500 were payable over an eighteen month period from October 1, 2020 through March 1, 2022 (the “Maturity Date”) to fully repay the loan. The SVB Loan originally accrued interest at a rate equal to the Prime Rate (as defined in the SVB Loan Agreement) plus 200 basis points (for a total of 6.75% as of December 31, 2019). In connection with the Amendment, the interest rate under the Loan was increased to the Prime Rate plus 425 basis points (for a total of 7.50% as of September 30, 2020). In connection with its execution of the amended SVB Loan Agreement on October 1, 2019, the Company i) agreed to pay SVB a fee of $100,000 on April 1, 2020 (the “Deferral Fee”) and ii) issued a warrant to SVB that entitles SVB to purchase 72,394 shares of the Company’s Common Stock at an exercise price of $0.01 per share (the “SVB Warrant”). Pursuant to the Amendment, the due date for the Deferral Fee was changed to the earlier of (i) the maturity of the loan, (ii) the repayment in full of all principal and interest owing under the Loan Agreement, and (iii) occurrence of an event of default under the Loan Agreement. The SVB Warrant has a ten (10) year term. The fair value of the SVB Warrant was recorded to additional paid-in capital and was determined to be $72,000 using the Black-Scholes model. The total obligations under the SVB Loan Agreement were $5,609,000, comprised of $5,247,000 for the SVB Loan, the Deferral Fee and the Maturity Fee of $262,000 that was assumed on October 1, 2019 as part of the Acquisition. The Deferral Fee, the fair value of the SVB Warrant, and $20,000 of debt issuance costs totaled $192,000 and was recorded as a discount to the debt. This debt discount is being amortized to interest expense using the effective interest method over the term of the debt. During the three and nine months ended September 30, 2020, the Company amortized $8,000 and $53,000 of the debt discount, respectively, which is recorded in “Interest and other expense, Net” on our condensed consolidated Statements of Operations. The remaining unamortized debt discount as of September 30, 2020 and December 31, 2019 was $49,000 and $102,000, respectively. The obligations under the SVB Loan Agreement were secured by substantially all of the assets of Oblong and its subsidiaries. The SVB Loan Agreement contained certain restrictions and covenants, which, among other things, subject to certain exceptions, restricted the Company’s ability to dispose of any portion of its business or property, engage in certain material changes to its business, enter into a merger, incur additional debt or make guarantees, pay dividends or make distribution payments on, or redeem, retire, or repurchase any capital stock (subject to certain exceptions), create liens or other encumbrances, or enter into related party transactions outside of the ordinary course of business. The SVB Loan Agreement also contained customary events of default, 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 the Company’s de-listing from the NYSE American without a listing of its Common Stock on another nationally recognized stock exchange. Upon the occurrence of an event of default, the outstanding obligations under the SVB Loan Agreement could be accelerated and become immediately due and payable. Paycheck Protection Program Loan On April 10, 2020 (the “Origination Date”), the Company received $2,417,000 in aggregate loan proceeds (the “PPP Loan”) from MidFirst Bank (the “Lender”) pursuant to the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP Loan is evidenced by a Promissory Note (the “Note”), dated April 10, 2020, by and between the Company and the Lender. Subject to the terms of the Note, the PPP Loan bears interest at a fixed rate of one percent (1.0%) per annum. Payments of principal and interest are deferred for the first six months following the Origination Date. Following the deferral period, the Company will be required to make payments of principal plus interest accrued under the PPP Loan to the Lender in 18 monthly installments based upon an amortization schedule to be determined by the Lender based on the principal balance of the Note outstanding following the deferral period and taking into consideration any portion of the PPP Loan that is forgiven prior to that time. The PPP Loan is unsecured and guaranteed by the U.S. Small Business Administration. The Company may apply to the Lender for forgiveness of some or all of the Note with the amount which may be forgiven equal to the sum of eligible payroll costs, mortgage interest, covered rent, and covered utility payments, in each case incurred by the Company during the twenty-four week period following the Origination Date, calculated in accordance with the terms of the CARES Act. Certain reductions in Company payroll costs during this period may reduce the amount of the Note eligible for forgiveness. There is no guarantee that the Company will receive forgiveness for any fixed amount of any PPP Loan principal received by the Company. The Note provides for customary events of default including, among other things, failure to make any payment when due, cross-defaults under any loan documents with the Lender, certain cross-defaults under agreements with third parties, inaccuracy of representations and warranties, events of dissolution or insolvency, certain change of control events, and material adverse changes in the Company’s financial condition. If an event of default occurs, the Lender will have the right to accelerate indebtedness under the PPP Loan and/or pursue other remedies available to the Lender at law or in equity. |
Preferred Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Preferred Stock | Note 9 - Preferred Stock Our Certificate of Incorporation authorizes the issuance of up to 5,000,000 shares of preferred stock. As of September 30, 2020, there were: (i) 100 shares of Perpetual Series B-1 Preferred Stock authorized and no shares issued or outstanding; (ii) 7,500 shares of Series A-2 Convertible Preferred Stock authorized and 45 shares issued and outstanding (the “Series A-2 Preferred Stock”); (iii) 2,800 shares of 0% Series B Convertible Preferred Stock (“Series B Preferred Stock”) authorized and no shares issued and outstanding; (iv) 1,750 shares of 0% Series C Convertible Preferred Stock (“Series C Preferred Stock”) authorized and 250 shares issued and outstanding; (v) 4,000 shares of Series D Convertible Preferred Stock authorized and no shares issued or outstanding; (vi) 100 shares of Perpetual Series B Preferred Stock authorized and no shares issued or outstanding; (vii) 1,750,000 shares of 6.0% Series D Convertible Preferred Stock (“Series D Preferred Stock”) authorized and 1,702,010 shares issued and outstanding; and (viii) 175,000 shares of 6.0% Series E Convertible Preferred Stock (“Series E Preferred Stock”) authorized and 131,579 shares issued and outstanding. Series A-2 Preferred Stock 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 $21.60 as of September 30, 2020. Therefore, each share of Series A-2 Preferred Stock is convertible into 345 shares of common stock, for an aggregate of 15,625 shares of common stock as of September 30, 2020. The conversion price is subject to adjustment upon the occurrence of certain events set forth in our Certificate of Incorporation. Subsequent to the period of this Report, the Company entered into a securities purchase agreement for the issuance of 1,043,000 shares of the Company’s Common Stock at the price of $2.85 per share. Due to this issuance, and in accordance with the provisions of the Series A-2 Preferred Stock, the conversion price of the Series A-2 Preferred Stock was reduced to $18.49 per share. This new conversion price results in each share of Series A-2 Preferred Stock being convertible into 405 shares of common stock, for an aggregate of 18,131 shares. The Series A-2 Preferred Stock is senior to all outstanding classes of the Company’s equity, has weighted average anti-dilution protection and, effective January 1, 2013, entitled to cumulative dividends at a rate of 5.0% per annum, payable quarterly, based on the Series A-2 Stated Value and payable at the option of the holder in cash or through the issuance of a number of additional shares of Series A-2 Preferred Stock with an aggregate liquidation preference equal to the dividend amount payable on the applicable dividend payment date. As of September 30, 2020 and December 31, 2019, the Company has recorded $4,000 and $99,000, respectively, in accrued dividends on the accompanying condensed consolidated Balance Sheets related to the Series A-2 Preferred Stock outstanding. During the nine months ended September 30, 2020, $99,000 of accrued dividends as of December 31, 2019, were exchanged for 13 shares of Series A-2 Preferred Stock. The Company, at its option, may redeem all or a portion of the Series A-2 Preferred Stock in cash at a price per share of $8,250 (equal to $7,500 per share multiplied by 110%) plus all accrued and unpaid dividends. 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 $21.60 conversion price of the Series A-2 Preferred Stock is adjusted to reflect a down round stock issuance that reduces the conversion price below the $11.16 fair value of the common stock on the issuance date of the Series A-2 Preferred Stock. Series C Preferred Stock On January 25, 2018, the Company closed a registered direct offering of 1,750 shares of its Series C Preferred Stock for total gross proceeds to the Company of $1,750,000. The shares of Series C Preferred Stock were sold at a price equal to their stated value of $1,000 per share and are convertible into shares of the Company’s common stock at a conversion price of $3.00 per share. During the nine months ended September 30, 2020 and 2019, 225 and 50 shares of Series C Preferred Stock were converted to 75,000 and 16,667 shares of the Company’s common stock, respectively. As of September 30, 2020, 250 shares of Series C Preferred Stock remained issued and outstanding. The Company has agreed that it will not enter into certain “fundamental transactions,” including transactions constituting a change of control of the Company, certain reorganization transactions or a sale of all or substantially all of the Company’s assets, except as pursuant to written agreements in form and substance satisfactory to the holders of a majority of the outstanding shares of Series C Preferred Stock including the Lead Investor and on terms with respect to the Series C Preferred Stock as set forth in the Certificate of Designation of Rights, Powers, Preferences, Privileges and Restrictions of the Series C Preferred Stock. Series D Preferred Stock In connection with the Acquisition (see Note 3 - Oblong Industries Acquisition), the Company issued an aggregate of 1,686,659 shares of Series D Preferred Stock and an aggregate of 49,967 restricted shares of Series D Preferred Stock (“Restricted Series D Preferred Stock”), the latter of which are subject to vesting over a two-year period following the Closing Date of the Acquisition. Each share of Series D Preferred Stock is automatically convertible into a number of shares of the Company’s common stock equal to the accrued value of the share (initially $28.50), plus any accrued dividends thereon, divided by the Conversion Price (initially $2.85 per share, subject to specified adjustments) upon the completion of both (i) approval of such conversion by the Company’s stockholders (which occurred on December 19, 2019); and (ii) the receipt of all required authorizations and approval of a new listing application for the combined organization from the NYSE American. Pursuant to the terms of the Series D Certificate of Designations, each share of Series D Preferred Stock is entitled to receive an annual dividend equal to 6.0% of its then-existing Accrued Value per annum, commencing on the first anniversary of the issuance of the Series D Preferred Stock (or October 1, 2020). Prior to the first anniversary of the issuance of the Series D Preferred Stock no dividends will accrue on such stock. Dividends are cumulative and accrue daily in arrears. If the Company’s Board of Directors does not declare any applicable dividend payment in cash, the Accrued Value of the Series D Preferred Stock will be increased by the amount of such dividend payment. As of September 30, 2020, no dividends have been accrued. Series E Preferred Stock On October 1, 2019, Oblong entered into a Series E Preferred Stock Purchase Agreement (the “Purchase Agreement”) with the investors party thereto, who, prior to the closing of the Acquisition, were stockholders of Oblong Industries (the “Purchasers”), relating to the offer and sale by the Company in a private placement (the “Offering”) of up to 131,579 shares of its Series E Preferred Stock at a price of $28.50 per share. At an initial closing on October 1, 2019 and a subsequent closing on December 18, 2019, the Company sold a total of 131,579 shares of Series E Preferred Stock for net proceeds of approximately $3,750,000. The 131,579 shares of Series E Preferred Stock issued by the Company in the Series E Financing have an aggregate Accrued Value of $3,750,000 and upon their conversion will convert at a conversion price of $2.85 per share into 1,315,790 common shares. Like the Series D Preferred Stock, each share of Series E Preferred Stock is automatically convertible into common stock upon the receipt of all required authorizations and approval of a new listing application for the combined organization from the NYSE American. Pursuant to the terms of the Series E Certificate of Designations, each share of Series E Preferred Stock is entitled to receive an annual dividend equal to 6.0% of its then-existing Accrued Value per annum, commencing on the first anniversary of the issuance of the Series E Preferred Stock (or October 1, 2019 or December 18, 2019, as applicable). Prior to the first anniversary of the issuance of the Series E Preferred Stock no dividends will accrue on such stock. Dividends are cumulative and accrue daily in arrears. If the Company’s Board of Directors does not declare any applicable dividend payment in cash, the Accrued Value of the Series E Preferred Stock will be increased by the amount of such dividend payment. As of September 30, 2020, no dividends have been accrued. In connection with the Purchase Agreement, the Company executed a Registration Rights Agreement, dated October 1, 2019 (the “Rights Agreement”). Pursuant to the Rights Agreement, among other things, the Company has provided the Purchasers with certain rights to require it to file and maintain the effectiveness of a registration statement with respect to the re-sale of shares of Common Stock underlying the shares of Series D Preferred Stock issued in the Oblong Transaction and Series E Preferred Stock sold in the Series E Financing. If the Series D and Series E Preferred Stock had been converted to common stock as of September 30, 2020, 17,020,100 and 1,315,790 shares of common stock would have been issued for the Series D and Series E Preferred Stock, respectively, which would have increased our outstanding shares of common stock from 5,242,558 to 23,578,448. Both the Series D and Series E Preferred Stock remain outstanding as of September 30, 2020 and as of the filing of this Report. The Company intends to file a new listing application with the NYSE American as soon as possible upon satisfying the initial listing standards. Among other requirements, these standards require the Company to have at least $15 million of non-affiliate public float, which, under the Company’s current financial situation, may be difficult or impossible for the Company to satisfy. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Note 10 - Stock Based Compensation 2019 Equity Incentive Plan On December 19, 2019, the Oblong, Inc. 2019 Equity Incentive Plan (the “2019 Plan”) was approved by the Company’s stockholders at the Company’s 2019 Annual Meeting of Stockholders. The 2019 Plan is an omnibus equity incentive plan pursuant to which the Company may grant equity and cash incentive awards to certain key service providers of the Company and its subsidiaries. The 2019 Plan replaces the Glowpoint, Inc. 2014 Equity Incentive Plan (the “Prior Plan”), which was adopted by the Company’s Board of Directors on April 22, 2014, and subsequently approved by the Company’s stockholders. Following approval of the 2019 Plan, the Company terminated the Prior Plan and may no longer make grants under the Prior Plan; however, any outstanding equity awards granted under the Prior Plan will continue to be governed by the terms of the Prior Plan. As of September 30, 2020, no restricted stock units were outstanding under the Prior Plan. As of September 30, 2020, the share pool available for new grants under the 2019 Plan is 3,021,000, which is equal to the sum of (i) 2,600,000 shares of the Company’s Common Stock and (ii) the 421,000 shares of the Company’s Common Stock that remained available for issuance under the Prior Plan. No equity awards were granted under the 2019 Plan during the nine months ended September 30, 2020. 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 in accordance with their terms. As of September 30, 2020, options to purchase a total of 107,500 shares of common stock and 627 shares of restricted stock were outstanding under the 2007 Plan. No shares are available for issuance under the 2007 Plan. Stock Options For the nine months ended September 30, 2020 and the year ended December 31, 2019, other than the options granted to certain former holders of options to purchase shares of Oblong Industries’ common stock, for which no stock-based compensation was recorded as discussed below, no stock options were granted. A summary of stock options expired and forfeited under our plans and options outstanding as of, and changes made during, the nine months ended September 30, 2020 and the year ended December 31, 2019 is presented below: Outstanding and Exerciseable Number of Options Weighted Average Exercise Price Options outstanding, December 31, 2018 118,003 $ 19.90 Exchanged for Oblong Industries stock options 107,845 4.92 Expired (440) 16.48 Forfeited (10,063) 23.20 Options outstanding, December 31, 2019 215,345 12.27 Expired (107,845) 4.92 Options outstanding and exercisable, September 30, 2020 107,500 $ 19.64 Additional information as of September 30, 2020 is as follows: Outstanding and Exercisable Range of price Number Weighted Weighted $0.00 – $10.00 2,500 2.70 $ 9.00 $10.01 – $20.00 97,500 2.31 19.32 $20.01 – $30.00 2,500 1.68 21.80 $30.01 – $40.00 5,000 1.45 30.20 107,500 2.26 $ 19.64 In connection with the Acquisition, all options to purchase shares of Oblong Industries’ common stock held by previously terminated employees of Oblong Industries were assumed by the Company and deemed, in the aggregate, to constitute options to acquire a total of 107,845 shares of the Company’s common stock, at a volume weighted average exercise price of $4.92 per share and a remaining exercise period of one year. These options all expired on September 30, 2020. No stock-based compensation expense was recorded in the three and nine months ended September 30, 2020 for these stock options as the value for these options was recorded as part of the consideration of the Acquisition given that these options were issued to terminated employees. The intrinsic value of vested options, unvested options and exercised options were not significant for all periods presented. There was no remaining unrecognized stock-based compensation expense for options at September 30, 2020 as all options were vested. Restricted Stock Awards A summary of restricted stock granted, vested and unvested outstanding as of, and changes made during, the nine months ended September 30, 2020 and the year ended December 31, 2019, is presented below: Restricted Shares Weighted Average Grant Date Price Unvested restricted stock outstanding, December 31, 2018 11,320 $ 14.88 Granted — — Vested (1,372) 15.72 Forfeited (9,321) 14.70 Unvested restricted stock outstanding, December 31, 2019 627 15.80 Unvested restricted stock outstanding, September 30, 2020 627 $ 15.80 Stock-based compensation expense relating to restricted stock awards is allocated as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 General and administrative — — — 3 $ — $ — $ — $ 3 The unvested restricted stock award as of September 30, 2020 was issued in 2014 and vests over the lesser of ten years, a change in control, or separation from the company. Due to the variability of the vesting, the expense was amortized over an average service period of five years; therefore, there is no unrecognized stock-based compensation expense for restricted stock awards for the period ended September 30, 2020. Restricted Stock Units A summary of restricted stock units (“RSUs”) granted, vested, forfeited and unvested outstanding as of, and changes made during, the nine months ended September 30, 2020 and the year ended December 31, 2019, is presented below: Restricted Stock Units Weighted Average Grant Price Unvested restricted stock units outstanding, December 31, 2018 503,518 $ 1.94 Granted 55,479 1.30 Vested (114,505) 3.05 Forfeited (421,158) 1.54 Unvested restricted stock units outstanding, December 31, 2019 23,334 2.20 Vested (23,334) 2.20 Unvested restricted stock units outstanding, September 30, 2020 — $ — As of September 30, 2020, 28,904 vested RSU’s remain outstanding as shares of common stock have not yet been delivered for these units in accordance with the terms of the RSU’s. Stock-based compensation expense relating to restricted stock units is allocated as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cost of revenue $ — $ 2 $ — $ 10 Research and development — 2 — 11 Sales and marketing — — — — General and administrative — 10 6 43 $ — $ 14 $ 6 $ 64 There was no remaining unrecognized stock-based compensation expense for restricted stock units at September 30, 2020. There was no tax benefit recognized for stock-based compensation expense for the nine months ended September 30, 2020 or the year ended December 31, 2019. No compensation costs were capitalized as part of the cost of an asset during the periods presented. Restricted Series D Preferred Stock In connection with the Acquisition, all options to purchase shares of Oblong Industries’ common stock held by existing employees of Oblong Industries were canceled and exchanged for an aggregate of 49,967 shares of Restricted Series D Preferred Stock, which are subject to vesting over a two-year period following the Closing Date. Stock-based compensation expense relating to Restricted Series D Preferred Stock is allocated as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Three and Nine Months Ended September 30, 2020 2020 2019 Research and development $ 11 $ 39 $ — Sales and marketing 7 17 — General and administrative 10 27 — $ 28 $ 83 $ — During the three and nine months ended September 30, 2020, 1,086 and 32,891 shares of Restricted Series D Preferred Stock were forfeited, respectively. As of September 30, 2020, 5,123 shares of Restricted Series D Preferred Stock remain outstanding. The remaining unrecognized stock-based compensation expense for Restricted Series D Preferred Stock at September 30, 2020 was $57,000, and will be recognized over a weighted average period of 1 year. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 11 - Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares of common stock outstanding does not include any potentially dilutive securities or unvested restricted stock. Unvested restricted stock, although classified as issued and outstanding at September 30, 2020 and 2019, is considered contingently returnable until the restrictions lapse and will not be included in the basic net loss per share calculation until the shares are vested. Unvested restricted stock does not contain non-forfeitable rights to dividends and dividend equivalents. Unvested RSUs are not included in calculations of basic net loss per share, as they are not considered issued and outstanding at time of grant. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options, preferred stock, RSUs, and unvested restricted stock, to the extent they are dilutive. For the three and nine months ended September 30, 2020 and 2019, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive (due to the net loss). The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net loss $ (2,085) $ (640) $ (8,598) $ (2,113) Less: preferred stock dividends (4) (4) (12) (23) Net loss attributable to common stockholders $ (2,089) $ (644) $ (8,610) $ (2,136) Denominator: Weighted-average number of shares of common stock for diluted net loss per share 5,257 5,184 5,237 5,128 Basic and diluted net loss per share $ (0.40) $ (0.12) $ (1.64) $ (0.42) The following table represents the potential shares that were excluded from the computation of weighted-average number of shares of common stock in computing the diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect (due to the net loss): Nine Months Ended September 30, 2020 2019 Unvested restricted stock units — 23,334 Outstanding stock options 107,500 107,500 Unvested restricted stock awards 627 627 Shares of common stock issuable upon conversion of Series A-2 preferred stock 15,545 10,978 Shares of common stock issuable upon conversion of Series C preferred stock 83,333 158,333 Shares of common stock issuable upon conversion of Series D preferred stock 17,020,100 — Shares of common stock issuable upon conversion of Series E preferred stock 1,315,790 — Warrants 72,394 — |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 12 - Segment Reporting Prior to the Acquisition of Oblong Industries on October 1, 2019, the Company operated in one segment. Following October 1, 2019, the former businesses of Glowpoint and Oblong Industries were managed separately and involve different products and services. Accordingly, the Company currently operates in two segments: (1) the Glowpoint (now named Oblong) business, which mainly consists of managed services for video collaboration and network applications; and (2) the Oblong Industries business, which consists of products and services for visual collaboration technologies. Because the closing of the Acquisition of Oblong Industries occurred on October 1, 2019, the Company’s condensed consolidated financial statements as of and for the three and nine months ended September 30, 2020 and 2019 included in this Report only reflect Oblong Industries’ financial results for the first through third quarters of 2020. Certain information concerning the Company’s segments for the three and nine months ended September 30, 2020 is presented in the following tables (in thousands): Three Months ended September 30, 2020 Glowpoint Oblong Industries Total Revenue $ 1,324 $ 1,942 $ 3,266 Cost of revenues 893 719 1,612 Gross profit $ 431 $ 1,223 $ 1,654 Gross profit % 33 % 63 % 51 % Allocated operating expenses $ 1,187 $ 1,477 $ 2,664 Unallocated operating expenses 980 Total operating expenses $ 1,187 $ 1,477 $ 3,644 Loss from operations $ (756) $ (254) $ (1,990) Interest and other expense, net 5 90 95 Net loss $ (761) $ (344) $ (2,085) Nine Months Ended September 30, Glowpoint Oblong Industries Total Revenue $ 4,741 $ 6,669 $ 11,410 Cost of revenues 2,948 2,736 5,684 Gross profit $ 1,793 $ 3,933 $ 5,726 Gross profit % 38 % 59 % 50 % Allocated operating expenses $ 3,398 $ 7,545 $ 10,943 Unallocated operating expenses 3,059 Total operating expenses $ 3,398 $ 7,545 $ 14,002 Loss from operations $ (1,605) $ (3,612) $ (8,276) Interest and other expense, net 12 310 322 Net loss $ (1,617) $ (3,922) $ (8,598) Unallocated operating expenses include costs for the three and nine months ended September 30, 2020 that are not specific to a particular segment but are general to the group; included are expenses incurred for administrative and accounting staff, general liability and other insurance, professional fees and other similar corporate expenses. Interest and other expense, net, is also not allocated to the operating segments. For the three and nine months ended September 30, 2020 and 2019, there was no material revenue attributable to any individual foreign country. Approximately 1% of foreign revenue is billed in foreign currency and foreign currency gains and losses are not material. Revenue by geographic area is allocated as follows (in thousands): Three Months ended September 30, 2020 2019 Domestic $ 2,080 $ 1,571 Foreign 1,186 799 $ 3,266 $ 2,370 Nine Months Ended September 30, 2020 2019 Domestic $ 7,536 $ 5,042 Foreign 3,874 2,361 $ 11,410 $ 7,403 Disaggregated information for the Company’s revenue has been recognized in the accompanying condensed consolidated statements of operations and is presented below according to contract type (in thousands): Three Months ended September 30, 2020 % of Revenue 2019 % of Revenue Revenue: Glowpoint Video collaboration services $ 249 8 % $ 1,317 56 % Network services 1,028 31 % 969 41 % Professional and other services 47 1 % 84 4 % Total Glowpoint revenue $ 1,324 40 % $ 2,370 100 % Revenue: Oblong Industries Visual collaboration product offerings $ 1,686 52 % — — % Professional services — — % — — % Licensing 256 8 % — — % Total Oblong Industries revenue $ 1,942 60 % — — % Total revenue $ 3,266 100 % $ 2,370 100 % Nine Months Ended September 30, 2020 % of Revenue 2019 % of Revenue Revenue: Glowpoint Video collaboration services $ 1,847 16 % $ 4,335 59 % Network services 2,719 24 % 2,879 39 % Professional and other services 175 2 % 189 3 % Total Glowpoint revenue 4,741 42 % 7,403 100 % Revenue: Oblong Industries Visual collaboration product offerings 4,931 43 % — — % Professional services 898 8 % — — % Licensing 840 7 % — — % Total Oblong Industries revenue 6,669 58 % — — % Total revenue $ 11,410 100 % $ 7,403 100.00 % Glowpoint’s fixed assets were 100% located in domestic markets as of September 30, 2020 and December 31, 2019. Oblong Industries’ long-lived assets were located 88% in domestic and 12% in foreign markets as of September 30, 2020. The disaggregation of the Company’s total assets as of September 30, 2020 is presented below (in thousands): As of September 30, 2020 Glowpoint Oblong Total Total assets $ 3,370 $ 23,872 $ 27,242 The Company considers a significant customer to be one that comprises more than 10% of the Company’s consolidated revenues or accounts receivable. The loss of or a reduction in sales or anticipated sales to our most significant or several of our smaller customers could have a material adverse effect on our business, financial condition and results of operations. Concentration of revenues was as follows: Three Months Ended September 30, 2020 2019 Segment % of Revenue % of Revenue Customer A Glowpoint 20 % 26 % Customer B Oblong Industries 12 % — % Customer C Glowpoint * 25 % * The amount did not exceed 10% of the Company’s consolidated total revenues. Nine Months Ended September 30, 2020 2019 Segment % of Revenue % of Revenue Customer A Glowpoint 17 % 23 % Customer B Oblong Industries 19 % — % Customer C Glowpoint * 27 % * The amount did not exceed 10% of the Company’s consolidated total revenues. Concentration of accounts receivable was as follows: As of September 30, 2020 2020 2019 Segment % of Accounts Receivable % of Accounts Receivable Customer A Glowpoint 20 % 15 % Customer B Oblong Industries * — % Customer C Glowpoint * 51 % Customer E Oblong Industries 15 % — % * The amount did not exceed 10% of the Company’s consolidated total accounts receivable. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 - Commitments and Contingencies Operating Leases We lease office and warehouse space in Los Angeles, California; Boston, Massachusetts; Dallas, Texas; Los Altos, California; Herndon, Virginia; and Munich, Germany. These leases expire between October 2020 and 2023. Lease expense for the three and nine months ended September 30, 2020 and 2019 were $267,000, $915,000, $52,000, and $153,000, respectively. The year over year increases are the result of acquiring lease obligations as part of the October 1, 2019 Acquisition of Oblong Industries. The Company primarily leases facilities for office and data center space under non-cancellable operating leases for its U.S. and international locations that expire at various dates through 2023. For leases with a term greater than 12 months, the Company recognizes a right-of-use asset and a lease liability based on the present value of lease payments over the lease term. Variable lease payments are not included in the lease payments to measure the lease liability and are expensed as incurred. The Company’s leases have remaining terms of one As the Company's leases do not provide a readily determinable implicit rate, the Company uses the incremental borrowing rate at lease commencement, which was determined using a portfolio approach, based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the implicit rate when a rate is readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet and the expense for these short-term leases is recognized on a straight-line basis over the lease term. Common area maintenance fees (or CAMs) and other charges related to these leases continue to be expensed as incurred. The following provides balance sheet information related to leases as of September 30, 2020 (in thousands): September 30, 2020 Assets Operating lease, right-of-use asset, net $ 1,665 Liabilities Current portion of operating lease liabilities $ 907 Operating lease liabilities, net of current portion 889 Total operating lease liabilities $ 1,796 The following table summarizes the future undiscounted cash payments reconciled to the lease liability (in thousands): Remaining Lease Payments Remainder of 2020 $ 258 2021 968 2022 566 2023 116 Total lease payments $ 1,908 Effect of discounting (112) Total lease liability $ 1,796 On January 1, 2019, the Company recognized ROU assets and lease liabilities of approximately $99,000 and $111,000, respectively, using an estimated incremental borrowing rate of 7.75%. On October 1, 2019 (the closing date of the Acquisition of Oblong Industries), the Company recognized ROU assets and lease liabilities for Oblong Industries of approximately $3,376,000 and $3,578,000, respectively, using an estimated incremental borrowing rate of 6%. The ROU assets and lease liabilities are recorded on the Company’s condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019. During the nine months ended September 30, 2020, non-cash immaterial out-of-period adjustments of approximately $195,000 were recorded to reduce the right of use asset and lease liability. These adjustments related to an error in the calculation of these amounts, in connection with the Oblong Acquisition. During the nine months ended September 30, 2020, the Company entered into one new lease, in Los Angeles, for warehouse space. The new lease commences on September 1, 2020 and has a term of 18 months. The new lease resulted in an addition to ROU Assets, and corresponding increase to lease liability, of $116,000. During the nine months ended September 30, 2020, the Company exited four of its leases, one in New York, one in London, one in Atlanta, and one in Los Angeles. The New York and London leases were exited in April 2020 when the Company elected not to renew the leases. The Atlanta and Los Angeles leases were exited in July 2020 and August 2020, respectively, when the Company negotiated terminations of the leases. These lease exits resulted in the reduction of ROU assets and the reduction of lease Liability. The New York ROU Asset was fully amortized, and the lease liability had been fully paid, as of the date of exit resulting in a net effect of zero on the ROU asset and operating lease liability on the Company’s unaudited Condensed, Consolidated Balance Sheet durng the first quarter of 2020. The Company had originally planned to renew the London Lease, and, pursuant to ASC 842, had recorded additional operating lease liability and ROU Asset value. Upon the exit of the London Lease, the Company recorded a disposal of ROU Asset value, and corresponding reduction of operating lease liability, of $214,000 on the Company’s unaudited Condensed, Consolidated Balance Sheet during the first quarter of 2020. On April 24, 2020, the Company signed an amendment to the lease on our Los Angeles warehouse in order to exit the lease early. The original termination date of the lease was the end of May 2022 and we exited the lease at the end of August 2020. This transaction resulted in the disposal of $317,000 in ROU assets and a reduction of $333,000 of lease liability during the second quarter of 2020. On July 31, 2020, the Company entered into a termination agreement related to our lease in Atlanta. The original termination date of the lease was the end of October 2020 and the termination agreement allows for the termination of the lease on July 31, 2020, in exchange for a cancellation fee of $10,000. Upon exit of the Atlanta lease, the Company recorded a disposal of ROU Asset value of $18,000, and a reduction of lease liability of $21,000, during the three months ended September 30, 2020. Claim Related to Series A-2 Preferred Stock As discussed in Note 3 - Oblong Industries Acquisition, on October 1, 2019, the Company closed its Acquisition of Oblong Industries, in connection with which it became a co-borrower under the SVB Loan Agreement. Following consummation of the Acquisition, the holder of the Company’s Series A-2 Preferred Stock communicated to the Company his belief that the Company’s execution of the joinder to the SVB Loan Agreement without his consent contravened approval rights in the Series A-2 Certificate of Designations. The Company has not accrued any liabilities for this matter as of September 30, 2020. As of the filing of this Report, there has been no further update regarding this matter. COVID-19 On March 11, 2020, the World Health Organization announced that infections of the novel Coronavirus (COVID-19) had become pandemic, and on March 13, the U.S. President announced a National Emergency relating to the disease. There is a possibility of continued widespread infection in the United States and abroad, with the potential for catastrophic impact. National, state and local authorities have required or recommended social distancing and imposed quarantine and isolation measures on large portions of the population, including mandatory business closures. These measures, while intended to protect human life, have had, and may continue to have, serious adverse impacts on domestic and foreign economies of uncertain severity and duration. On June 8, 2020, the National Bureau of Economic Research indicated that the U.S. economy had entered a recession. The sweeping nature of the coronavirus pandemic makes it extremely difficult to predict how the Company’s business and operations will be affected in the longer run, but we expect that it may materially affect our business, financial condition and results of operations. The extent to which the coronavirus impacts our results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others. Moreover, the coronavirus outbreak has begun to have indeterminable adverse effects on general commercial activity and the world economy, and our business and results of operations could be adversely affected to the extent that this coronavirus or any other epidemic harms the global economy generally and/or the markets in which we operate specifically. Any of the foregoing factors, or other cascading effects of the coronavirus pandemic that are not currently foreseeable, could materially increase our costs, negatively impact our revenues and damage the Company’s results of operations and its liquidity position, possibly to a significant degree. The duration of any such impacts cannot be predicted. Effective April 30, 2020, an existing major customer of the Company suspended certain professional services we provided to the them, due to cost cutting measures due to COVID-19. These services accounted for $1.0 million (9%) of the Company’s revenue for the nine months ended September 30, 2020, none of which occurred during the three months ended September 30, |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14 - Subsequent Events Private Placement Transaction On October 21, 2020, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with accredited investors (the “Purchasers”), providing for the offer and sale by the Company to the Purchasers in a private placement of (i) 1,043,000 shares of the Company’s common stock, at a price of $2.85 per share in cash, and (ii) warrants to purchase up to 521,500 shares of common stock, for gross proceeds of $2,973,000 before deducting placement agent fees and other offering expenses (the “Private Placement”). The Private Placement closed, and the net proceeds were received, on October 22, 2020. The net proceeds of the Private Placement were used by the Company to make the Satisfaction Payment discussed under “SVB Agreement” below. SVB Agreement On October 22, 2020, the Company entered into an agreement (the “ S atisfaction Agreement”) with certain of its subsidiaries, Oblong Industries, Inc. and GP Communications, LLC (the “Guarantors”), and SVB as lender, pursuant to which SVB agreed to accept a one-time cash payment of $2,500,000 (the “Satisfaction Payment”) in satisfaction of the Company’s outstanding payment obligations under the SVB Loan Agreement, effective immediately, subject to certain terms and conditions. See Note 8 - Debt for further discussion of the SVB Loan Agreement. SVB also agreed to release the security interests and other liens previously granted to or held by SVB as security for the Company’s obligations under the SVB Loan Agreement, as well as the Guarantors’ guarantees thereof. The Company made the Satisfaction Payment on October 22, 2020. |
Business Description and Sign_2
Business Description and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company's fiscal year ends on December 31 of each calendar year. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended December 31, 2019. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles 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 revenue and expenses during the reporting periods. Actual results could differ from these estimates. The December 31, 2019 year-end condensed consolidated balance sheet data in this document was derived from audited consolidated financial statements. These condensed consolidated financial statements and notes included in this quarterly report on Form 10-Q does not include all disclosures required by U.S. generally accepted accounting principles and should be read in conjunction with the Company's audited consolidated financial statements as of and for the year ended December 31, 2019 and notes thereto included in the Company's fiscal 2019 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on May 15, 2020 (the “2019 10-K”). The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. Because the closing of the Acquisition of Oblong Industries occurred on October 1, 2019, the Company’s condensed consolidated financial statements for the three and nine months ended September 30, 2019 included in this Report do not reflect Oblong Industries’ financial results. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Oblong and our 100%-owned subsidiaries, (i) GP Communications, LLC (“GP Communications”), whose business function is to provide interstate telecommunications services for regulatory purposes, (ii) Oblong Industries, and (iii) the following subsidiaries of Oblong Industries: Oblong Industries Europe, S.L. and Oblong Europe Limited. All inter-company balances and transactions have been eliminated in consolidation. The U.S. Dollar is the functional currency for all subsidiaries. |
Segments | Segments Prior to the Acquisition of Oblong Industries on October 1, 2019, the Company operated in one segment. Following October 1, 2019, the former businesses of Glowpoint and Oblong Industries have been managed separately and involve different products and services. Accordingly, the Company currently operates in two segments: 1) the Glowpoint (now named Oblong) business, which includes managed services for video collaboration and network applications, and 2) the Oblong Industries business, which includes products and services for visual collaboration technologies. See Note 12 - Segment Reporting for further discussion. |
Use of Estimates | Use of Estimates Preparation of the condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) 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 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 our 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, the estimated lives and recoverability of property and equipment, and intangible assets, the inputs used in the fair value of equity based awards as well as the values ascribed to assets acquired and liabilities assumed in the business combination. |
Property and Equipment | Property and EquipmentProperty and equipment are stated at cost and are depreciated over the estimated useful lives of the related assets, which range from three to ten years. Leasehold improvements are amortized over the shorter of either the asset’s useful life or the related lease term. Depreciation is computed on the straight-line method for financial reporting purposes. |
Leases | LeasesThe Company determines if an arrangement is a lease at inception. For the Company’s operating leases, the right-of-use (“ROU”) assets represents the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Since all of the lease agreements do not provide an implicit rate, the Company estimated an incremental borrowing rate in determining the present value of the lease payments. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. Variable lease costs such as operating costs and property taxes are expensed as incurred. |
Treasury Stock | Treasury Stock Purchases and sales of treasury stock are accounted for using the cost method. Under this method, shares acquired are recorded at the acquisition price directly to the treasury stock account. Upon sale, the treasury stock account is reduced by the original acquisition price of the shares and any difference is recorded in equity, on a first-in first-out basis. The Company does not recognize a gain or loss to income from the purchase and sale of treasury stock. |
Recently Adopted Accounting Standards and Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016 the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326),” which was subsequently amended in February 2020 by ASU 2020-02 “Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842).” Topic 326 introduces an impairment model that is based on expected credit losses, |
Oblong Industries Acquisition (
Oblong Industries Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Pro Forma Information | The Company's unaudited pro forma results for the three and nine months ended September 30, 2019 are summarized in the table below, assuming the Acquisition had occurred on January 1, 2019. These unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which would have actually resulted had the Acquisition occurred on January 1, 2019, nor to be indicative of future results of operations. Pro forma and unaudited (as if the Acquisition of Oblong Industries had occurred on January 1, 2019) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 ($ in thousands) ($ in thousands) Revenue Glowpoint $ 2,370 $ 7,403 Oblong Industries $ 4,259 $ 12,758 Pro forma total revenue $ 6,629 $ 20,161 Net loss Glowpoint $ 640 $ 2,113 Oblong Industries $ 3,756 $ 12,782 Pro forma net loss $ 4,396 $ 14,895 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The activity in goodwill during the nine months ended September 30, 2020 and the year ended December 31, 2019 is shown in the following table ($ in thousands): Goodwill Glowpoint Oblong Industries Total Balance December 31, 2018 $ 2,795 $ — $ 2,795 Impairment charges (2,254) — (2,254) Acquisition — 7,366 7,366 Balance December 31, 2019 541 7,366 7,907 Impairment charges (541) — (541) Balance September 30, 2020 $ — $ 7,366 $ 7,366 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table presents the components of net intangible assets (in thousands): As of September 30, 2020 As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Glowpoint Customer Relationships $ 4,335 $ (4,335) $ — $ 4,335 $ (4,335) $ — Affiliate network 994 (718) 276 994 (666) 328 Trademarks 548 (548) — 548 (504) 44 Subtotal $ 5,877 $ (5,601) $ 276 $ 5,877 $ (5,505) $ 372 Oblong Industries Developed technology 10,060 (2,016) 8,044 10,060 (504) 9,556 Trade names 2,410 (241) 2,169 2,410 (60) 2,350 Distributor relationships 310 (62) 248 310 (16) 294 Subtotal $ 12,780 $ (2,319) $ 10,461 $ 12,780 $ (580) $ 12,200 Total $ 18,657 $ (7,920) $ 10,737 $ 18,657 $ (6,085) $ 12,572 The weighted average lives for the components of intangible assets are as follows: Glowpoint Affiliate network 12 years Trademarks 8 years Oblong Industries Developed technology 5 years Trade names 10 years Distributor relationships 5 years |
Schedule of Future Amortization Expense | Amortization expense for each of the next five succeeding years will be as follows (in thousands): Remainder of 2020 $ 597 2021 2,388 2022 2,386 2023 2,378 2024 1,844 Thereafter 1,144 Total $ 10,737 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands): September 30, December 31, 2020 2019 Accrued compensation costs $ 627 $ 810 Other accrued expenses and liabilities 858 843 Accrued dividends on Series A-2 Preferred Stock 4 99 Accrued expenses and other liabilities $ 1,489 $ 1,752 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Debt consisted of the following (in thousands): September 30, December 31, 2020 2019 SVB Loan Principal $ 5,609 $ 5,609 PPP Loan Principal 2,417 — Total Loan Principal 8,026 5,609 Less: Unamortized SVB debt discount (49) (102) Net carrying value 7,977 5,507 Less: SVB current maturities, net of debt discount 3,465 2,664 Less: PPP current maturities 1,477 — Total current maturities, net of debt discount 4,942 2,664 Long-term SVB obligations, net of current maturities and debt discount 2,095 2,843 Long-term PPP obligations, net of current maturities 940 — Total long-term obligations, net of current maturities and debt discount $ 3,035 $ 2,843 |
Schedule of Maturities of Long-term Debt | Future minimum principal payments are as follows (in thousands): Future Minimum Principal Payments SVB Loan PPP Loan Total Remainder of 2020 $ 874 $ 269 $ 1,143 2021 3,498 1,611 5,109 2022 1,237 537 1,774 $ 5,609 $ 2,417 $ 8,026 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Compensation Expense | Stock-based compensation expense relating to Restricted Series D Preferred Stock is allocated as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Three and Nine Months Ended September 30, 2020 2020 2019 Research and development $ 11 $ 39 $ — Sales and marketing 7 17 — General and administrative 10 27 — $ 28 $ 83 $ — |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Options Granted, Exercised, Expired and Forfeited | A summary of stock options expired and forfeited under our plans and options outstanding as of, and changes made during, the nine months ended September 30, 2020 and the year ended December 31, 2019 is presented below: Outstanding and Exerciseable Number of Options Weighted Average Exercise Price Options outstanding, December 31, 2018 118,003 $ 19.90 Exchanged for Oblong Industries stock options 107,845 4.92 Expired (440) 16.48 Forfeited (10,063) 23.20 Options outstanding, December 31, 2019 215,345 12.27 Expired (107,845) 4.92 Options outstanding and exercisable, September 30, 2020 107,500 $ 19.64 |
Shares Outstanding and Exercisable, By Exercise Price Range | Additional information as of September 30, 2020 is as follows: Outstanding and Exercisable Range of price Number Weighted Weighted $0.00 – $10.00 2,500 2.70 $ 9.00 $10.01 – $20.00 97,500 2.31 19.32 $20.01 – $30.00 2,500 1.68 21.80 $30.01 – $40.00 5,000 1.45 30.20 107,500 2.26 $ 19.64 |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Share Activity | A summary of restricted stock granted, vested and unvested outstanding as of, and changes made during, the nine months ended September 30, 2020 and the year ended December 31, 2019, is presented below: Restricted Shares Weighted Average Grant Date Price Unvested restricted stock outstanding, December 31, 2018 11,320 $ 14.88 Granted — — Vested (1,372) 15.72 Forfeited (9,321) 14.70 Unvested restricted stock outstanding, December 31, 2019 627 15.80 Unvested restricted stock outstanding, September 30, 2020 627 $ 15.80 |
Schedule of Compensation Expense | Stock-based compensation expense relating to restricted stock awards is allocated as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 General and administrative — — — 3 $ — $ — $ — $ 3 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Share Activity | A summary of restricted stock units (“RSUs”) granted, vested, forfeited and unvested outstanding as of, and changes made during, the nine months ended September 30, 2020 and the year ended December 31, 2019, is presented below: Restricted Stock Units Weighted Average Grant Price Unvested restricted stock units outstanding, December 31, 2018 503,518 $ 1.94 Granted 55,479 1.30 Vested (114,505) 3.05 Forfeited (421,158) 1.54 Unvested restricted stock units outstanding, December 31, 2019 23,334 2.20 Vested (23,334) 2.20 Unvested restricted stock units outstanding, September 30, 2020 — $ — |
Schedule of Compensation Expense | Stock-based compensation expense relating to restricted stock units is allocated as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cost of revenue $ — $ 2 $ — $ 10 Research and development — 2 — 11 Sales and marketing — — — — General and administrative — 10 6 43 $ — $ 14 $ 6 $ 64 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net loss $ (2,085) $ (640) $ (8,598) $ (2,113) Less: preferred stock dividends (4) (4) (12) (23) Net loss attributable to common stockholders $ (2,089) $ (644) $ (8,610) $ (2,136) Denominator: Weighted-average number of shares of common stock for diluted net loss per share 5,257 5,184 5,237 5,128 Basic and diluted net loss per share $ (0.40) $ (0.12) $ (1.64) $ (0.42) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table represents the potential shares that were excluded from the computation of weighted-average number of shares of common stock in computing the diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect (due to the net loss): Nine Months Ended September 30, 2020 2019 Unvested restricted stock units — 23,334 Outstanding stock options 107,500 107,500 Unvested restricted stock awards 627 627 Shares of common stock issuable upon conversion of Series A-2 preferred stock 15,545 10,978 Shares of common stock issuable upon conversion of Series C preferred stock 83,333 158,333 Shares of common stock issuable upon conversion of Series D preferred stock 17,020,100 — Shares of common stock issuable upon conversion of Series E preferred stock 1,315,790 — Warrants 72,394 — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Certain information concerning the Company’s segments for the three and nine months ended September 30, 2020 is presented in the following tables (in thousands): Three Months ended September 30, 2020 Glowpoint Oblong Industries Total Revenue $ 1,324 $ 1,942 $ 3,266 Cost of revenues 893 719 1,612 Gross profit $ 431 $ 1,223 $ 1,654 Gross profit % 33 % 63 % 51 % Allocated operating expenses $ 1,187 $ 1,477 $ 2,664 Unallocated operating expenses 980 Total operating expenses $ 1,187 $ 1,477 $ 3,644 Loss from operations $ (756) $ (254) $ (1,990) Interest and other expense, net 5 90 95 Net loss $ (761) $ (344) $ (2,085) Nine Months Ended September 30, Glowpoint Oblong Industries Total Revenue $ 4,741 $ 6,669 $ 11,410 Cost of revenues 2,948 2,736 5,684 Gross profit $ 1,793 $ 3,933 $ 5,726 Gross profit % 38 % 59 % 50 % Allocated operating expenses $ 3,398 $ 7,545 $ 10,943 Unallocated operating expenses 3,059 Total operating expenses $ 3,398 $ 7,545 $ 14,002 Loss from operations $ (1,605) $ (3,612) $ (8,276) Interest and other expense, net 12 310 322 Net loss $ (1,617) $ (3,922) $ (8,598) The disaggregation of the Company’s total assets as of September 30, 2020 is presented below (in thousands): As of September 30, 2020 Glowpoint Oblong Total Total assets $ 3,370 $ 23,872 $ 27,242 Concentration of revenues was as follows: Three Months Ended September 30, 2020 2019 Segment % of Revenue % of Revenue Customer A Glowpoint 20 % 26 % Customer B Oblong Industries 12 % — % Customer C Glowpoint * 25 % * The amount did not exceed 10% of the Company’s consolidated total revenues. Nine Months Ended September 30, 2020 2019 Segment % of Revenue % of Revenue Customer A Glowpoint 17 % 23 % Customer B Oblong Industries 19 % — % Customer C Glowpoint * 27 % * The amount did not exceed 10% of the Company’s consolidated total revenues. Concentration of accounts receivable was as follows: As of September 30, 2020 2020 2019 Segment % of Accounts Receivable % of Accounts Receivable Customer A Glowpoint 20 % 15 % Customer B Oblong Industries * — % Customer C Glowpoint * 51 % Customer E Oblong Industries 15 % — % * The amount did not exceed 10% of the Company’s consolidated total accounts receivable. |
Revenue from External Customers by Geographic Areas | Revenue by geographic area is allocated as follows (in thousands): Three Months ended September 30, 2020 2019 Domestic $ 2,080 $ 1,571 Foreign 1,186 799 $ 3,266 $ 2,370 Nine Months Ended September 30, 2020 2019 Domestic $ 7,536 $ 5,042 Foreign 3,874 2,361 $ 11,410 $ 7,403 |
Schedule of Disaggregated Revenue Information | Disaggregated information for the Company’s revenue has been recognized in the accompanying condensed consolidated statements of operations and is presented below according to contract type (in thousands): Three Months ended September 30, 2020 % of Revenue 2019 % of Revenue Revenue: Glowpoint Video collaboration services $ 249 8 % $ 1,317 56 % Network services 1,028 31 % 969 41 % Professional and other services 47 1 % 84 4 % Total Glowpoint revenue $ 1,324 40 % $ 2,370 100 % Revenue: Oblong Industries Visual collaboration product offerings $ 1,686 52 % — — % Professional services — — % — — % Licensing 256 8 % — — % Total Oblong Industries revenue $ 1,942 60 % — — % Total revenue $ 3,266 100 % $ 2,370 100 % Nine Months Ended September 30, 2020 % of Revenue 2019 % of Revenue Revenue: Glowpoint Video collaboration services $ 1,847 16 % $ 4,335 59 % Network services 2,719 24 % 2,879 39 % Professional and other services 175 2 % 189 3 % Total Glowpoint revenue 4,741 42 % 7,403 100 % Revenue: Oblong Industries Visual collaboration product offerings 4,931 43 % — — % Professional services 898 8 % — — % Licensing 840 7 % — — % Total Oblong Industries revenue 6,669 58 % — — % Total revenue $ 11,410 100 % $ 7,403 100.00 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Balance Sheet Information | The following provides balance sheet information related to leases as of September 30, 2020 (in thousands): September 30, 2020 Assets Operating lease, right-of-use asset, net $ 1,665 Liabilities Current portion of operating lease liabilities $ 907 Operating lease liabilities, net of current portion 889 Total operating lease liabilities $ 1,796 |
Schedule of Future Minimum Rental Payments for Operating Leases | The following table summarizes the future undiscounted cash payments reconciled to the lease liability (in thousands): Remaining Lease Payments Remainder of 2020 $ 258 2021 968 2022 566 2023 116 Total lease payments $ 1,908 Effect of discounting (112) Total lease liability $ 1,796 |
Business Description and Sign_3
Business Description and Significant Accounting Policies (Details) $ in Thousands | Oct. 01, 2019segment | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)leasesegment | Sep. 30, 2019USD ($) |
Accounting Policies [Abstract] | |||||
Number of operating segments | segment | 1 | 2 | |||
Property, Plant and Equipment [Line Items] | |||||
Impairment charges - property and equipment | $ | $ 117 | $ 20 | $ 126 | $ 20 | |
Number of leases exited | 4 | ||||
New York | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of leases exited | 1 | ||||
Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | three | ||||
Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | ten years |
Liquidity and Going Concern U_2
Liquidity and Going Concern Uncertainty (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 17 Months Ended | ||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 01, 2022 | Dec. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | |||||||||||
Cash | $ 2,670,000 | $ 1,271,000 | $ 2,670,000 | $ 1,271,000 | $ 4,602,000 | $ 2,007,000 | |||||
Long term debt | 8,026,000 | 8,026,000 | 5,609,000 | ||||||||
Working capital | (3,245,000) | (3,245,000) | |||||||||
Net loss | (2,085,000) | $ (3,385,000) | $ (3,129,000) | $ (640,000) | $ (875,000) | $ (598,000) | (8,598,000) | (2,113,000) | |||
Net cash used in operating activities | (4,325,000) | $ (668,000) | |||||||||
Decrease in operating expenses | $ 1,813,000 | ||||||||||
Decrease in operating expenses, percentage | 40.00% | ||||||||||
Operating expenses | 2,747,000 | $ 4,560,000 | |||||||||
Private Placement | Common Stock | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Proceeds from issuance of stock | 2,973,000 | ||||||||||
SVB loan agreement | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Long term debt | 5,609,000 | 5,609,000 | 5,609,000 | ||||||||
Net cash used in operating activities | 2,500,000 | ||||||||||
SVB loan agreement | Forecast | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Principal payment | $ 291,500 | ||||||||||
PPP Loan | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Long term debt | $ 2,417,000 | $ 2,417,000 | $ 0 |
Oblong Industries Acquisition -
Oblong Industries Acquisition - Additional Information (Details) - USD ($) $ in Thousands | Oct. 01, 2019 | Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 7,366 | $ 7,366 | $ 7,907 | $ 2,795 | |
Oblong Industries | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 18,862 | ||||
Assets acquired | 11,496 | ||||
Intangible assets acquired | 12,780 | ||||
Goodwill | $ 7,366 | 7,366 | 7,366 | ||
Revenue from acquiree | 1,942 | 6,669 | |||
Net losses from acquiree | $ 334 | $ 3,839 |
Oblong Industries Acquisition_2
Oblong Industries Acquisition - Pro Forma (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Total revenue | $ 6,629 | $ 20,161 |
Pro forma net loss | 4,396 | 14,895 |
Oblong Industries | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Total revenue | 4,259 | 12,758 |
Pro forma net loss | 3,756 | 12,782 |
Glowpoint | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Total revenue | 2,370 | 7,403 |
Pro forma net loss | $ 640 | $ 2,113 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Inventory | $ 1,126 | $ 1,816 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($)reporting_unit | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Oct. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Goodwill [Line Items] | |||||
Goodwill | $ 7,366 | $ 7,907 | $ 2,795 | ||
Number of reporting units | reporting_unit | 2 | ||||
Impairment charges - goodwill | $ 541 | $ 453 | 2,254 | ||
Glowpoint | |||||
Goodwill [Line Items] | |||||
Goodwill | 0 | 541 | $ 541 | $ 2,795 | |
Impairment charges - goodwill | 541 | $ 453 | $ 2,254 | ||
Oblong Industries | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 7,366 | $ 7,366 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 7,907 | $ 2,795 | $ 2,795 |
Impairment charges | (541) | (453) | (2,254) |
Acquisition | 7,366 | ||
Ending balance | 7,366 | 7,907 | |
Glowpoint | |||
Goodwill [Roll Forward] | |||
Beginning balance | 541 | 2,795 | 2,795 |
Impairment charges | (541) | (453) | (2,254) |
Acquisition | 0 | ||
Ending balance | 0 | 541 | |
Oblong Industries | |||
Goodwill [Roll Forward] | |||
Beginning balance | 7,366 | $ 0 | 0 |
Impairment charges | 0 | 0 | |
Acquisition | 7,366 | ||
Ending balance | $ 7,366 | $ 7,366 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||
Gross Carrying Amount | $ 18,657 | $ 18,657 |
Accumulated Amortization | (7,920) | (6,085) |
Net Carrying Amount | 10,737 | 12,572 |
Glowpoint | ||
Business Acquisition [Line Items] | ||
Gross Carrying Amount | 5,877 | 5,877 |
Accumulated Amortization | (5,601) | (5,505) |
Net Carrying Amount | 276 | 372 |
Glowpoint | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Gross Carrying Amount | 4,335 | 4,335 |
Accumulated Amortization | (4,335) | (4,335) |
Net Carrying Amount | 0 | 0 |
Glowpoint | Affiliate network | ||
Business Acquisition [Line Items] | ||
Gross Carrying Amount | 994 | 994 |
Accumulated Amortization | (718) | (666) |
Net Carrying Amount | $ 276 | 328 |
Estimated Useful Life | 12 years | |
Glowpoint | Trademarks | ||
Business Acquisition [Line Items] | ||
Gross Carrying Amount | $ 548 | 548 |
Accumulated Amortization | (548) | (504) |
Net Carrying Amount | $ 0 | 44 |
Estimated Useful Life | 8 years | |
Oblong Industries | ||
Business Acquisition [Line Items] | ||
Gross Carrying Amount | $ 12,780 | 12,780 |
Accumulated Amortization | (2,319) | (580) |
Net Carrying Amount | 10,461 | 12,200 |
Oblong Industries | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Gross Carrying Amount | 310 | 310 |
Accumulated Amortization | (62) | (16) |
Net Carrying Amount | $ 248 | 294 |
Estimated Useful Life | 5 years | |
Oblong Industries | Developed technology | ||
Business Acquisition [Line Items] | ||
Gross Carrying Amount | $ 10,060 | 10,060 |
Accumulated Amortization | (2,016) | (504) |
Net Carrying Amount | $ 8,044 | 9,556 |
Estimated Useful Life | 5 years | |
Oblong Industries | Trade names | ||
Business Acquisition [Line Items] | ||
Gross Carrying Amount | $ 2,410 | 2,410 |
Accumulated Amortization | (241) | (60) |
Net Carrying Amount | $ 2,169 | $ 2,350 |
Estimated Useful Life | 10 years |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | ||||
Impairment charges | $ 0 | $ 0 | ||
Amortization expense | $ 611 | $ 32 | $ 1,835 | $ 95 |
Minimum | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, estimated useful life | 5 years | |||
Maximum | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, estimated useful life | 12 years |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2020 | $ 597 | |
2021 | 2,388 | |
2022 | 2,386 | |
2023 | 2,378 | |
2024 | 1,844 | |
Thereafter | 1,144 | |
Net Carrying Amount | $ 10,737 | $ 12,572 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Accrued compensation costs | $ 627 | $ 810 |
Other accrued expenses and liabilities | 858 | 843 |
Accrued dividends on Series A-2 Preferred Stock | 4 | 99 |
Accrued expenses and other liabilities | $ 1,489 | $ 1,752 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long term debt | $ 8,026 | $ 5,609 |
Net carrying value | 7,977 | 5,507 |
Current portion of long-term debt, net of discount | 4,942 | 2,664 |
Long-term debt, excluding current maturities | 3,035 | 2,843 |
SVB loan agreement | ||
Debt Instrument [Line Items] | ||
Long term debt | 5,609 | 5,609 |
Less: Unamortized SVB debt discount | (49) | (102) |
Current portion of long-term debt, net of discount | 3,465 | 2,664 |
Long-term debt, excluding current maturities | 2,095 | 2,843 |
PPP Loan | ||
Debt Instrument [Line Items] | ||
Long term debt | 2,417 | 0 |
Current portion of long-term debt, net of discount | 1,477 | 0 |
Long-term debt, excluding current maturities | $ 940 | $ 0 |
Debt (Details) - Schedule of Ma
Debt (Details) - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Remainder of 2020 | $ 1,143 | |
2021 | 5,109 | |
2022 | 1,774 | |
Total future minimum payments | 8,026 | $ 5,609 |
SVB loan agreement | ||
Debt Instrument [Line Items] | ||
Remainder of 2020 | 874 | |
2021 | 3,498 | |
2022 | 1,237 | |
Total future minimum payments | 5,609 | 5,609 |
PPP Loan | ||
Debt Instrument [Line Items] | ||
Remainder of 2020 | 269 | |
2021 | 1,611 | |
2022 | 537 | |
Total future minimum payments | $ 2,417 | $ 0 |
Debt - SVB Agreement (Details)
Debt - SVB Agreement (Details) | 3 Months Ended | 9 Months Ended | 17 Months Ended | ||||
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Mar. 01, 2022USD ($) | Apr. 10, 2020installment | Dec. 31, 2019USD ($) | Oct. 01, 2019USD ($)$ / sharesshares | |
Debt Instrument [Line Items] | |||||||
Outstanding principal, debt obligations | $ 8,026,000 | $ 8,026,000 | $ 5,609,000 | ||||
Amortization of debt discount | 53,000 | $ 0 | |||||
SVB loan agreement | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal, debt obligations | 5,609,000 | 5,609,000 | 5,609,000 | ||||
Unamortized debt discount | 49,000 | 49,000 | 102,000 | ||||
SVB loan agreement | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Principal payment | $ 291,500 | ||||||
Period of installments | 18 months | ||||||
PPP Loan | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal, debt obligations | 2,417,000 | 2,417,000 | $ 0 | ||||
Fixed rate | 1.00% | ||||||
Number of monthly installments | installment | 18 | ||||||
Additional Paid-In Capital | |||||||
Debt Instrument [Line Items] | |||||||
Issuance of warrants to purchase common stock in connection with long term debt | 72,000 | ||||||
SVB Warrant | |||||||
Debt Instrument [Line Items] | |||||||
Number of warrants called | shares | 72,394 | ||||||
Exercise price (in dollars per share) | $ / shares | $ 0.01 | ||||||
Warrant term | 10 years | ||||||
Term loan facility | SVB loan agreement | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 5,247,000 | ||||||
Effective percentage | 6.75% | ||||||
Fee amount | 192,000 | ||||||
Debt issuance costs | 20,000 | ||||||
Amortization of debt discount | 8,000 | ||||||
Unamortized debt discount | $ 49,000 | $ 49,000 | $ 102,000 | ||||
Term loan facility | SVB loan agreement | Prime rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread | 2.00% | ||||||
Term loan facility | SVB Loan Agreement, Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Effective percentage | 7.50% | 7.50% | |||||
Term loan facility | SVB Loan Agreement, Amendment | Prime rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread | 4.25% | ||||||
Term loan facility | Deferral fee | SVB Loan Agreement, Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Fee amount | 100,000 | ||||||
Term loan facility | Maturity Fee | SVB loan agreement | |||||||
Debt Instrument [Line Items] | |||||||
Fee amount | $ 262,000 |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) | Oct. 01, 2019 | Jan. 25, 2018 | Nov. 12, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Jan. 31, 2018 |
Class of Stock [Line Items] | |||||||||||
Preferred stock, convertible, shares authorized (in shares) | 5,000,000 | 5,000,000 | |||||||||
Accrued dividends on Series A-2 Preferred Stock | $ 4,000 | $ 4,000 | $ 99,000 | ||||||||
Common stock, shares outstanding (in shares) | 5,242,558 | 5,242,558 | 5,161,543 | ||||||||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares issued in conversion (in shares) | 15,625 | ||||||||||
Conversion of convertible preferred stock, shares (in shares) | 25,000 | 50,000 | 43,402 | ||||||||
Issuance of restricted stock (in shares) | 23,334 | 65,000 | 16,824 | ||||||||
Common Stock | Subsequent Event | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares issued in conversion (in shares) | 18,131 | ||||||||||
Number of shares issued (in shares) | 1,043,000 | ||||||||||
Sale of stock, price per share (in dollars per share) | $ 2.85 | ||||||||||
Restricted stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Vesting period | 10 years | ||||||||||
Perpetual Series B-1 Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, convertible, shares authorized (in shares) | 100 | 100 | |||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||||||
Series A-2 Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, convertible, shares authorized (in shares) | 7,500 | 7,500 | 7,500 | ||||||||
Preferred stock, shares issued (in shares) | 45 | 45 | 32 | ||||||||
Preferred stock, shares outstanding (in shares) | 45 | 45 | 32 | ||||||||
Preferred stock percentage | 5.00% | ||||||||||
Preferred stock, stated value | $ 7,500 | $ 7,500 | $ 7,500 | ||||||||
Stock issued during period, conversion of convertible securities, price (in dollars per share) | $ 21.60 | $ 21.60 | |||||||||
Convertible preferred stock, shares issued upon conversion (in shares) | 345 | 345 | |||||||||
Accrued dividends on Series A-2 Preferred Stock | $ 4,000 | $ 4,000 | $ 99,000 | ||||||||
Conversion of convertible preferred stock, shares (in shares) | 13 | ||||||||||
Redemption price per share (in dollars per share) | $ 8,250 | $ 8,250 | |||||||||
Redemption price per share, multiplier (in dollars per share) | $ 7,500 | $ 7,500 | |||||||||
Redemption price per share, multiplier, percentage | 110.00% | 110.00% | |||||||||
Conversion price below the fair value of common stock (in dollars per share) | $ 11.16 | ||||||||||
Preferred stock, convertible, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Series A-2 Preferred Stock | Subsequent Event | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock issued during period, conversion of convertible securities, price (in dollars per share) | $ 18.49 | ||||||||||
Convertible preferred stock, shares issued upon conversion (in shares) | 405 | ||||||||||
Series B Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, convertible, shares authorized (in shares) | 2,800 | 2,800 | |||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||||||
Preferred stock percentage | 0.00% | ||||||||||
Series B Preferred Stock | Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Conversion of convertible preferred stock, shares (in shares) | 75 | ||||||||||
Series C Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, convertible, shares authorized (in shares) | 1,750 | 1,750 | 1,750 | ||||||||
Preferred stock, shares issued (in shares) | 250 | 250 | 475 | ||||||||
Preferred stock, shares outstanding (in shares) | 250 | 250 | 475 | ||||||||
Preferred stock percentage | 0.00% | ||||||||||
Preferred stock, stated value | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||
Stock issued during period, conversion of convertible securities, price (in dollars per share) | $ 3 | ||||||||||
Proceeds from issuance of preferred stock gross | $ 1,750,000 | ||||||||||
Preferred stock, convertible, par value (in dollars per share) | $ 1,000 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||
Series C Preferred Stock | Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Conversion of convertible preferred stock, shares (in shares) | 75 | 150 | 50 | 225 | 50 | ||||||
Series C Preferred Stock | Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Conversion of convertible preferred stock, shares (in shares) | 75,000 | 16,667 | |||||||||
Series D Convertible Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, convertible, shares authorized (in shares) | 4,000 | 4,000 | |||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||||||
Perpetual Series B Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, convertible, shares authorized (in shares) | 100 | 100 | |||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||||||
Series D Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, convertible, shares authorized (in shares) | 1,750,000 | 1,750,000 | 1,750,000 | ||||||||
Preferred stock, shares issued (in shares) | 1,702,010 | 1,702,010 | 1,734,901 | ||||||||
Preferred stock, shares outstanding (in shares) | 1,702,010 | 1,702,010 | 1,734,901 | ||||||||
Preferred stock percentage | 6.00% | ||||||||||
Preferred stock, stated value | $ 28.50 | $ 2.85 | $ 28.50 | $ 28.50 | |||||||
Conversion of convertible preferred stock, shares (in shares) | 1,686,659 | ||||||||||
Preferred stock, convertible, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Series D Preferred Stock | Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock, shares outstanding (in shares) | 5,242,558 | 5,242,558 | |||||||||
Series D Preferred Stock | Restricted stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Issuance of restricted stock (in shares) | 49,967 | 49,967 | |||||||||
Vesting period | 2 years | ||||||||||
Series E Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, convertible, shares authorized (in shares) | 175,000 | 175,000 | 175,000 | ||||||||
Preferred stock, shares issued (in shares) | 131,579 | 131,579 | 131,579 | ||||||||
Preferred stock, shares outstanding (in shares) | 131,579 | 131,579 | 131,579 | ||||||||
Preferred stock percentage | 6.00% | ||||||||||
Preferred stock, stated value | $ 28.50 | $ 28.50 | $ 28.50 | ||||||||
Preferred stock, convertible, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Series E Preferred Stock | Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock, shares outstanding (in shares) | 23,578,448 | 23,578,448 | |||||||||
Series E Preferred Stock | Series E Financing | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares issued (in shares) | 131,579 | 131,579 | |||||||||
Convertible preferred stock, shares issued upon conversion (in shares) | 17,020,100 | 17,020,100 | |||||||||
Sale of stock, price per share (in dollars per share) | $ 2.85 | ||||||||||
Sale of stock consideration received | $ 3,750,000 | $ 3,750,000 | |||||||||
Series E Preferred Stock | Series E Financing | Maximum | |||||||||||
Class of Stock [Line Items] | |||||||||||
Convertible preferred stock, shares issued upon conversion (in shares) | 1,315,790 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) | Oct. 01, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 19, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of stock options outstanding (in shares) | 107,500 | 107,500 | 215,345 | 118,003 | ||||
Number of options granted (in shares) | 107,845 | |||||||
Stock option compensation expense | $ 0 | $ 14,000 | $ 6,000 | $ 64,000 | ||||
Options, intrinsic value, vested | 0 | 0 | ||||||
Unrecognized stock-based compensation expense for stock options | $ 0 | 0 | ||||||
Stock-based compensation, tax benefit | 0 | $ 0 | ||||||
Compensation costs capitalized as part of the cost of an asset | $ 0 | |||||||
Weighted average period for amortization of unrecognized stock-based compensation | 1 year | |||||||
Stock options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of options granted (in shares) | 0 | |||||||
Restricted stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unvested restricted shares outstanding (in shares) | 627 | 627 | 627 | 11,320 | ||||
Stock option compensation expense | $ 0 | 0 | $ 0 | $ 3,000 | ||||
Vesting period | 10 years | |||||||
Award service period | 5 years | |||||||
Unrecognized stock-based compensation expense for other than options | $ 0 | $ 0 | ||||||
Granted, restricted shares (in shares) | 0 | |||||||
Forfeited, restricted shares (in shares) | 9,321 | |||||||
RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unvested restricted shares outstanding (in shares) | 0 | 0 | 23,334 | 503,518 | ||||
Unrecognized stock-based compensation expense for other than options | $ 0 | $ 0 | ||||||
Stock-based compensation arrangement, vested in period, remain outstanding (in shares) | 28,904 | |||||||
Granted, restricted shares (in shares) | 55,479 | |||||||
Forfeited, restricted shares (in shares) | 421,158 | |||||||
Series D Preferred Stock | Restricted stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unvested restricted shares outstanding (in shares) | 5,123 | 5,123 | ||||||
Stock option compensation expense | $ 28,000 | $ 0 | $ 83,000 | $ 0 | ||||
Vesting period | 2 years | |||||||
Unrecognized stock-based compensation expense for other than options | $ 57,000 | $ 57,000 | ||||||
Issuance of restricted stock (in shares) | 49,967 | 49,967 | ||||||
Forfeited, restricted shares (in shares) | 1,086 | 32,891 | ||||||
Nonemployee | Stock options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available for grant (in shares) | 107,845 | |||||||
Weighted average price of shares (in dollars per share) | $ 4.92 | |||||||
Exercise period | 1 year | |||||||
Stock option compensation expense | $ 0 | $ 0 | ||||||
Prior plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available for grant (in shares) | 421,000 | |||||||
2019 Equity incentive plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available for grant (in shares) | 3,021,000 | 3,021,000 | ||||||
Awards granted in period (in shares) | 0 | |||||||
2019 Equity incentive plan | Stock options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available for grant (in shares) | 2,600,000 | 2,600,000 | ||||||
2007 Stock incentive plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available for grant (in shares) | 0 | 0 | ||||||
2007 Stock incentive plan | Stock options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of stock options outstanding (in shares) | 107,500 | 107,500 | ||||||
2007 Stock incentive plan | Restricted stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unvested restricted shares outstanding (in shares) | 627 | 627 |
Stock Based Compensation - Opti
Stock Based Compensation - Options Outstanding (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | |
Number of Options | ||
Outstanding Number of Options, Beginning (in shares) | shares | 215,345 | 118,003 |
Outstanding Number of Options, Exchanged for Oblong Industries stock options (in shares) | shares | 107,845 | |
Outstanding Number of Options, Expired (in shares) | shares | (107,845) | (440) |
Forfeited restricted stock (in shares) | shares | (10,063) | |
Outstanding and Exercisable Number of Options, Ending (in shares) | shares | 107,500 | 215,345 |
Weighted Average Exercise Price | ||
Outstanding Weighted Average Exercise Price, Beginning (in dollars per share) | $ / shares | $ 12.27 | $ 19.90 |
Outstanding Weighted Average Exercise Price, Exchanged for Oblong Industries stock options (in dollars per share) | $ / shares | 4.92 | |
Outstanding Weighted Average Exercise Price, Expired (in dollars per share) | $ / shares | 4.92 | 16.48 |
Outstanding Weighted Average Exercise Price, Forfeited (in dollars per share) | $ / shares | 23.20 | |
Outstanding and Exercisable Weighted Average Exercise Price, Ending (in dollars per share) | $ / shares | $ 19.64 | $ 12.27 |
Exercisable | ||
Exercisable Number of Options (in shares) | shares | 107,500 | |
Exercisable Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 19.64 |
Stock Based Compensation - Exer
Stock Based Compensation - Exercise Price Range (Details) - $ / shares | 9 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Number of Options, Outstanding and Exercisable (in shares) | 107,500 | 215,345 | 118,003 |
Weighted Average Remaining Contractual Life (In Years) | 2 years 3 months 3 days | ||
Weighted Average Exercise Price, Outstanding and Exercisable (in dollars per share) | $ 19.64 | $ 12.27 | $ 19.90 |
$0.00 – $10.00 | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of price, lower range limit (in dollars per share) | 0 | ||
Range of price, upper range limit (in dollars per share) | $ 10 | ||
Number of Options, Outstanding and Exercisable (in shares) | 2,500 | ||
Weighted Average Remaining Contractual Life (In Years) | 2 years 8 months 12 days | ||
Weighted Average Exercise Price, Outstanding and Exercisable (in dollars per share) | $ 9 | ||
$10.01 – $20.00 | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of price, lower range limit (in dollars per share) | 10.01 | ||
Range of price, upper range limit (in dollars per share) | $ 20 | ||
Number of Options, Outstanding and Exercisable (in shares) | 97,500 | ||
Weighted Average Remaining Contractual Life (In Years) | 2 years 3 months 21 days | ||
Weighted Average Exercise Price, Outstanding and Exercisable (in dollars per share) | $ 19.32 | ||
$20.01 – $30.00 | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of price, lower range limit (in dollars per share) | 20.01 | ||
Range of price, upper range limit (in dollars per share) | $ 30 | ||
Number of Options, Outstanding and Exercisable (in shares) | 2,500 | ||
Weighted Average Remaining Contractual Life (In Years) | 1 year 8 months 4 days | ||
Weighted Average Exercise Price, Outstanding and Exercisable (in dollars per share) | $ 21.80 | ||
$30.01 – $40.00 | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of price, lower range limit (in dollars per share) | 30.01 | ||
Range of price, upper range limit (in dollars per share) | $ 40 | ||
Number of Options, Outstanding and Exercisable (in shares) | 5,000 | ||
Weighted Average Remaining Contractual Life (In Years) | 1 year 5 months 12 days | ||
Weighted Average Exercise Price, Outstanding and Exercisable (in dollars per share) | $ 30.20 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Activity (Details) - Restricted stock - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Restricted Shares | ||
Unvested restricted shares outstanding, Beginning (in shares) | 627 | 11,320 |
Granted, restricted shares (in shares) | 0 | |
Vested, restricted shares (in shares) | (1,372) | |
Forfeited, restricted shares (in shares) | (9,321) | |
Unvested restricted shares outstanding, Ending (in shares) | 627 | 627 |
Weighted Average Grant Date Price | ||
Unvested restricted shares, weighted average grant price, Beginning (in dollars per share) | $ 15.80 | $ 14.88 |
Granted, weighted average grant price (in dollars per share) | 0 | |
Vested, weighted average grant price (in dollars per share) | 15.72 | |
Forfeited, weighted average grant price (in dollars per share) | 14.70 | |
Unvested restricted shares, weighted average grant price, Ending (in dollars per share) | $ 15.80 | $ 15.80 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Compensation Expense, Restricted Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | $ 0 | $ 14 | $ 6 | $ 64 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | 0 | 10 | 6 | 43 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | 0 | 0 | 0 | 3 |
Restricted stock | General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | $ 0 | $ 0 | $ 0 | $ 3 |
Stock Based Compensation - Re_2
Stock Based Compensation - Restricted Stock Unit Activity (Details) - RSUs - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Restricted Stock Units | |||
Unvested restricted shares outstanding, Beginning (in shares) | 23,334 | 503,518 | 503,518 |
Granted, restricted shares (in shares) | 55,479 | ||
Vested, restricted shares (in shares) | (23,334) | (114,505) | |
Forfeited, restricted shares (in shares) | (421,158) | ||
Unvested restricted shares outstanding, Ending (in shares) | 0 | 23,334 | |
Weighted Average Grant Price | |||
Unvested restricted shares, weighted average grant price, Beginning (in dollars per share) | $ 2.20 | $ 1.94 | $ 1.94 |
Granted, weighted average grant price (in dollars per share) | 1.30 | ||
Vested, weighted average grant price (in dollars per share) | 2.20 | 3.05 | |
Forfeited, weighted average grant price (in dollars per share) | $ 1.54 | ||
Unvested restricted shares, weighted average grant price, Ending (in dollars per share) | $ 0 | $ 2.20 |
Stock Based Compensation - St_2
Stock Based Compensation - Stock Compensation Expense, Restricted Stock Units (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | $ 0 | $ 14 | $ 6 | $ 64 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | 0 | 2 | 0 | 10 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | 0 | 2 | 0 | 11 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | 0 | 0 | 0 | 0 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | 0 | 10 | 6 | 43 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | 0 | 0 | 0 | 3 |
Restricted stock | General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | 0 | 0 | 0 | 3 |
Series D Preferred Stock | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | 28 | 0 | 83 | 0 |
Series D Preferred Stock | Restricted stock | Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | 11 | 0 | 39 | 0 |
Series D Preferred Stock | Restricted stock | Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | 7 | 0 | 17 | 0 |
Series D Preferred Stock | Restricted stock | General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock compensation expense | $ 10 | $ 0 | $ 27 | $ 0 |
Net Loss Per Share - Narrative
Net Loss Per Share - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average shares common stock outstanding, potentially dilutive securities or unvested restricted stock (in shares) | 0 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||||||
Net loss | $ (2,085) | $ (3,385) | $ (3,129) | $ (640) | $ (875) | $ (598) | $ (8,598) | $ (2,113) |
Less: preferred stock dividends | (4) | (4) | (12) | (23) | ||||
Net loss attributable to common stockholders | $ (2,089) | $ (644) | $ (8,610) | $ (2,136) | ||||
Denominator: | ||||||||
Weighted-average number of shares of common stock for diluted net loss per share (in shares) | 5,257 | 5,184 | 5,237 | 5,128 | ||||
Basic and diluted net loss per share (in dollars per share) | $ (0.40) | $ (0.12) | $ (1.64) | $ (0.42) |
Net Loss Per Share - Effect of
Net Loss Per Share - Effect of Antidilutive Securities (Details) - shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Unvested restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 23,334 |
Outstanding stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 107,500 | 107,500 |
Unvested restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 627 | 627 |
Series A-2 Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 15,545 | 10,978 |
Series C Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 83,333 | 158,333 |
Series D Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 17,020,100 | 0 |
Series E Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1,315,790 | 0 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 72,394 | 0 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | Oct. 01, 2019segment | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) |
Segment Reporting Information [Line Items] | |||||||||
Number of operating segments | segment | 1 | 2 | |||||||
Revenue | $ 3,266 | $ 2,370 | $ 11,410 | $ 7,403 | |||||
Cost of revenues | 1,612 | 1,582 | 5,684 | 4,901 | |||||
Gross profit | $ 1,654 | 788 | $ 5,726 | 2,502 | |||||
Gross profit % | 51.00% | 50.00% | |||||||
Total operating expenses | $ 3,644 | 1,428 | $ 14,002 | 4,614 | |||||
Loss from operations | (1,990) | (640) | (8,276) | (2,112) | |||||
Interest and other expense, net | 95 | 0 | 322 | 1 | |||||
Net loss | (2,085) | $ (3,385) | $ (3,129) | (640) | $ (875) | $ (598) | (8,598) | (2,113) | |
Glowpoint | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 1,324 | 2,370 | 4,741 | 7,403 | |||||
Cost of revenues | 893 | 2,948 | |||||||
Gross profit | $ 431 | $ 1,793 | |||||||
Gross profit % | 33.00% | 38.00% | |||||||
Total operating expenses | $ 1,187 | $ 3,398 | |||||||
Loss from operations | (756) | (1,605) | |||||||
Interest and other expense, net | 5 | 12 | |||||||
Net loss | (761) | (1,617) | |||||||
Oblong Industries | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 1,942 | $ 0 | 6,669 | $ 0 | |||||
Cost of revenues | 719 | 2,736 | |||||||
Gross profit | $ 1,223 | $ 3,933 | |||||||
Gross profit % | 63.00% | 59.00% | |||||||
Total operating expenses | $ 1,477 | $ 7,545 | |||||||
Loss from operations | (254) | (3,612) | |||||||
Interest and other expense, net | 90 | 310 | |||||||
Net loss | (344) | (3,922) | |||||||
Allocated operating expenses | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total operating expenses | 2,664 | 10,943 | |||||||
Allocated operating expenses | Glowpoint | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total operating expenses | 1,187 | 3,398 | |||||||
Allocated operating expenses | Oblong Industries | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total operating expenses | 1,477 | 7,545 | |||||||
Unallocated operating expenses | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total operating expenses | $ 980 | 3,059 | |||||||
Unallocated operating expenses | Glowpoint | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total operating expenses | |||||||||
Unallocated operating expenses | Oblong Industries | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total operating expenses |
Segment Reporting - Disaggregat
Segment Reporting - Disaggregation of Revenue and Total Assets (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | |||||
Foreign revenue | 0.01 | 0.01 | |||
Revenue | $ 3,266 | $ 2,370 | $ 11,410 | $ 7,403 | |
Total assets | $ 27,242 | $ 27,242 | $ 34,909 | ||
Revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 100.00% | 100.00% | 100.00% | 100.00% | |
Glowpoint | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 1,324 | $ 2,370 | $ 4,741 | $ 7,403 | |
Total assets | $ 3,370 | $ 3,370 | |||
Glowpoint | Revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 40.00% | 100.00% | 42.00% | 100.00% | |
Glowpoint | Assets | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 100.00% | 100.00% | |||
Glowpoint | Video collaboration services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 249 | $ 1,317 | $ 1,847 | $ 4,335 | |
Glowpoint | Video collaboration services | Revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 8.00% | 56.00% | 16.00% | 59.00% | |
Glowpoint | Network services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 1,028 | $ 969 | $ 2,719 | $ 2,879 | |
Glowpoint | Network services | Revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 31.00% | 41.00% | 24.00% | 39.00% | |
Glowpoint | Professional and other services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 47 | $ 84 | $ 175 | $ 189 | |
Glowpoint | Professional and other services | Revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 1.00% | 4.00% | 2.00% | 3.00% | |
Oblong Industries | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 1,942 | $ 0 | $ 6,669 | $ 0 | |
Total assets | $ 23,872 | $ 23,872 | |||
Oblong Industries | Revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 60.00% | 0.00% | 58.00% | 0.00% | |
Oblong Industries | Video collaboration services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 1,686 | $ 0 | $ 4,931 | $ 0 | |
Oblong Industries | Video collaboration services | Revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 52.00% | 0.00% | 43.00% | 0.00% | |
Oblong Industries | Professional and other services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 0 | $ 0 | $ 898 | $ 0 | |
Oblong Industries | Professional and other services | Revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 0.00% | 0.00% | 8.00% | 0.00% | |
Oblong Industries | Licensing | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 256 | $ 0 | $ 840 | $ 0 | |
Oblong Industries | Licensing | Revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 8.00% | 0.00% | 7.00% | 0.00% | |
Domestic | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 2,080 | $ 1,571 | $ 7,536 | $ 5,042 | |
Domestic | Oblong Industries | Assets | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 88.00% | ||||
Foreign | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 1,186 | $ 799 | $ 3,874 | $ 2,361 | |
Foreign | Oblong Industries | Assets | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 12.00% |
Segment Reporting - Concentrati
Segment Reporting - Concentration Percentage (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Glowpoint | Revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 40.00% | 100.00% | 42.00% | 100.00% |
Oblong Industries | Revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 60.00% | 0.00% | 58.00% | 0.00% |
Customer A | Glowpoint | Revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 20.00% | 26.00% | 17.00% | 23.00% |
Customer A | Glowpoint | Accounts Receivable | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 20.00% | 15.00% | ||
Customer B | Oblong Industries | Revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 12.00% | 0.00% | 19.00% | 0.00% |
Customer B | Oblong Industries | Accounts Receivable | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 0.00% | |||
Customer C | Glowpoint | Revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 25.00% | 27.00% | ||
Customer C | Glowpoint | Accounts Receivable | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 51.00% | |||
Customer E | Oblong Industries | Accounts Receivable | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 15.00% | 0.00% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)lease | Sep. 30, 2019USD ($) | Sep. 01, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Oct. 01, 2019USD ($) | Jan. 01, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||||||||||
Non-cash lease expense | $ 267 | $ 52 | $ 915 | $ 153 | ||||||
Operating lease - right of use asset, net | 1,665 | 1,665 | $ 3,117 | |||||||
Operating lease liability | 1,796 | $ 1,796 | ||||||||
Number of leases exited | lease | 4 | |||||||||
Disposal of ROU assets and operating lease liability | $ 214 | |||||||||
Revenue | 3,266 | $ 2,370 | $ 11,410 | $ 7,403 | ||||||
Professional and other services | Major customer | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Revenue | $ 1,000 | |||||||||
Concentration risk percentage | 9.00% | |||||||||
Los Angeles Warehouse Lease | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
ROU disposal | $ 317 | |||||||||
Lease liability disposal | $ 333 | |||||||||
Atlanta Lease | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
ROU disposal | 18 | $ 18 | ||||||||
Lease liability disposal | 21 | $ 21 | ||||||||
Contract termination fee | 10 | |||||||||
New York | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Number of leases exited | lease | 1 | |||||||||
London | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Number of leases exited | lease | 1 | |||||||||
Altlanta | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Number of leases exited | lease | 1 | |||||||||
Los Angeles | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Term of contract | 18 months | |||||||||
Operating lease - right of use asset, net | $ 116 | |||||||||
Operating lease liability | $ 116 | |||||||||
Number of leases entered | lease | 1 | |||||||||
Number of leases exited | lease | 1 | |||||||||
Calculation error | Adjustment | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Operating lease - right of use asset, net | 195 | $ 195 | ||||||||
Operating lease liability | $ 195 | $ 195 | ||||||||
Accounting standards update 2016-02 | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Operating lease - right of use asset, net | $ 3,376 | $ 99 | ||||||||
Operating lease liability | $ 3,578 | $ 111 | ||||||||
Incremental borrowing rate | 6.00% | 7.75% | ||||||||
Minimum | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Term of contract | 1 year | 1 year | ||||||||
Renewal term | 12 months | 12 months | ||||||||
Maximum | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Term of contract | 4 years | 4 years | ||||||||
Renewal term | 5 years | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies - Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease, right-of-use asset, net | $ 1,665 | $ 3,117 |
Current portion of operating lease liabilities | 907 | 1,294 |
Operating lease liabilities, net of current portion | 889 | $ 2,020 |
Total operating lease liabilities | $ 1,796 |
Commitments and Contingencies_3
Commitments and Contingencies - Table Operating Lease Future Minimum Rental Commitment (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2020 | $ 258 |
2021 | 968 |
2022 | 566 |
2023 | 116 |
Total lease payments | 1,908 |
Effect of discounting | (112) |
Total lease liability | $ 1,796 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 22, 2020 | Oct. 21, 2020 | Nov. 12, 2020 | Sep. 30, 2020 |
Subsequent Event | SVB loan agreement | ||||
Subsequent Event [Line Items] | ||||
Payment extinguishment of debt | $ 2,500 | |||
Common Stock | Private Placement | ||||
Subsequent Event [Line Items] | ||||
Proceeds from issuance of stock | $ 2,973 | |||
Common Stock | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of shares issued (in shares) | 1,043,000 | |||
Common Stock | Subsequent Event | Private Placement | ||||
Subsequent Event [Line Items] | ||||
Number of shares issued (in shares) | 1,043,000 | |||
Common stock, share price | $ 2.85 | |||
Proceeds from issuance of stock | $ 2,973 | |||
Warrants | Subsequent Event | Private Placement | ||||
Subsequent Event [Line Items] | ||||
Number of shares issued (in shares) | 521,500 |
Uncategorized Items - glow-2020
Label | Element | Value |
Inventory Write-down | us-gaap_InventoryWriteDown | $ 0 |