Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | 31-May-14 | Sep. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'TigerLogic CORP | ' | ' |
Entity Central Index Key | '0000820738 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--03-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $25,581,666 |
Entity Common Stock, Shares Outstanding | ' | 30,131,876 | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $18,602 | $6,465 |
Trade accounts receivable, less allowance for doubtful accounts of $43 in 2014 and $24 in 2013 | 934 | 575 |
Receivable from sale of MDMS business | 2,200 | ' |
Other current assets | 553 | 561 |
Current assets of discontinued operations | ' | 411 |
Total current assets | 22,289 | 8,012 |
Property, furniture and equipment, net | 575 | 459 |
Goodwill | 18,183 | 18,183 |
Intangible assets, net | 510 | 593 |
Deferred tax assets | 109 | 228 |
Other assets | 73 | 111 |
Noncurrent assets of discontinued operations | ' | 13,565 |
Total assets | 41,739 | 41,151 |
Current liabilities: | ' | ' |
Accounts payable | 349 | 388 |
Accrued liabilities | 1,892 | 1,240 |
Deferred revenue | 1,599 | 948 |
Current liabilities of discontinued operations | ' | 3,448 |
Total current liabilities | 3,840 | 6,024 |
Other long-term liabilities | 122 | 103 |
Other long-term liabilities of discontinued operations | ' | 34 |
Total liabilities | 3,962 | 6,161 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Series A convertible preferred stock: $1.00 par value; 5,000,000 shares authorized; none issued or outstanding at March 31, 2014 and 2013 | ' | ' |
Common stock: $0.10 par value; 100,000,000 shares authorized; 30,117,234 and 29,931,248 issued and outstanding as of March 31, 2014 and 2013, respectively | 3,012 | 2,993 |
Additional paid-in-capital | 142,848 | 141,478 |
Accumulated other comprehensive income | 2,360 | 2,257 |
Accumulated deficit | -110,443 | -111,738 |
Total stockholders' equity | 37,777 | 34,990 |
Total liabilities and stockholders' equity | $41,739 | $41,151 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Trade accounts receivable, allowance for doubtful accounts | $43 | $24 |
Stockholders' Equity: | ' | ' |
Series A convertible preferred stock, par value (in dollars per share) | $1 | $1 |
Series A convertible preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Series A convertible preferred stock, shares issued | 0 | 0 |
Series A convertible preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 30,117,234 | 29,931,248 |
Common stock, shares outstanding | 30,117,234 | 29,931,248 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Net revenues: | ' | ' | ' |
Licenses | $2,264 | $2,090 | $2,153 |
Services | 3,226 | 1,687 | 1,676 |
Total net revenues | 5,490 | 3,777 | 3,829 |
Operating expenses: | ' | ' | ' |
Cost of license revenues | 19 | 5 | 6 |
Cost of license revenues-amortization of intangible assets | 76 | 15 | ' |
Cost of service revenues | 638 | 355 | 356 |
Cost of service revenues-revenue sharing agreement | 1,000 | ' | ' |
Selling and marketing | 5,918 | 3,979 | 4,497 |
Research and development | 4,441 | 3,698 | 4,574 |
General and administrative | 4,350 | 3,728 | 3,592 |
Acquisition related costs | 209 | 288 | ' |
Total operating expenses | 16,651 | 12,068 | 13,025 |
Operating loss from continuing operations | -11,161 | -8,291 | -9,196 |
Other income (expense): | ' | ' | ' |
Interest expense-net | -6 | -6 | -2 |
Other income (expense)-net | -62 | 10 | -62 |
Total other income (expense)-net | -68 | 4 | -64 |
Loss before income taxes from continuing operations | -11,229 | -8,287 | -9,260 |
Income tax benefit | -3,965 | -2,012 | -2,168 |
Net loss from continuing operations | -7,264 | -6,275 | -7,092 |
Discontinued operations: | ' | ' | ' |
Income from discontinued operations, net of tax | 2,641 | 3,333 | 3,545 |
Gain on sale of discontinued operations, net of tax | 5,918 | ' | ' |
Income from discontinued operations | 8,559 | 3,333 | 3,545 |
Net income (loss) | 1,295 | -2,942 | -3,547 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustments | 103 | -47 | -8 |
Total comprehensive income (loss) | $1,398 | ($2,989) | ($3,555) |
Basic and diluted net income (loss) per share: | ' | ' | ' |
Loss from continuing operations (in dollars per share) | ($0.24) | ($0.22) | ($0.25) |
Income from discontinued operations (in dollars per share) | $0.28 | $0.12 | $0.13 |
Net income (loss) | $0.04 | ($0.10) | ($0.12) |
Shares used in computing net loss from continuing operations per share, income from discontinued operations per share, and net income (loss) per share | 30,255 | 28,548 | 28,146 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | $1,295 | ($2,942) | ($3,547) |
Gain on sale of discontinued operations | -9,926 | ' | ' |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Depreciation and amortization of long-lived assets | 191 | 144 | 159 |
Provision for (recovery from) bad debt | 133 | -7 | 5 |
Stock-based compensation expense | 1,293 | 1,049 | 1,280 |
Change in deferred tax assets | 120 | 89 | 98 |
Foreign currency exchange (gain) loss | -46 | -3 | 74 |
Change in operating assets and liabilities, net of discontinued operations: | ' | ' | ' |
Trade accounts receivable | -970 | 76 | -157 |
Other current assets | 138 | -72 | -175 |
Accounts payable | -98 | -108 | 71 |
Accrued liabilities | -633 | -197 | -299 |
Deferred revenue | 941 | 77 | 69 |
Net cash used in operating activities | -7,562 | -1,894 | -2,422 |
Cash flows from investing activities: | ' | ' | ' |
Business acquisition, net of cash received | ' | -490 | ' |
Purchases of property, plant and equipment | -183 | -81 | -76 |
Proceeds from sale of discontinued operations | 19,800 | ' | ' |
Net cash provided by (used in) investing activities | 19,617 | -571 | -76 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from exercise of stock options | 59 | 24 | 87 |
Proceeds from issuance of common stock | 37 | 47 | 85 |
Net cash provided by financing activities | 96 | 71 | 172 |
Effect of exchange rate changes on cash | -14 | -59 | -110 |
Net increase (decrease) in cash | 12,137 | -2,453 | -2,436 |
Cash at beginning of the period | 6,465 | 8,918 | 11,354 |
Cash at end of the period | 18,602 | 6,465 | 8,918 |
Supplemental disclosures: | ' | ' | ' |
Cash paid for income taxes | 488 | 148 | 879 |
Non-cash investing activities: | ' | ' | ' |
Issuance of common stock and stock options assumed in business acquisition | ' | $5,095 | ' |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
In Thousands, except Share data, unless otherwise specified | |||||
Balances at Mar. 31, 2011 | $33,868 | $2,810 | $133,995 | $2,312 | ($105,249) |
Balances (in shares) at Mar. 31, 2011 | ' | 28,101,991 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Stock option and purchase plan issuances | 171 | 8 | 163 | ' | ' |
Stock option and purchase plan issuances (in shares) | ' | 81,478 | ' | ' | ' |
Stock-based compensation | 1,280 | ' | 1,280 | ' | ' |
Net loss | -3,547 | ' | ' | ' | -3,547 |
Foreign currency translation adjustments | -8 | ' | ' | -8 | ' |
Balances at Mar. 31, 2012 | 31,764 | 2,818 | 135,438 | 2,304 | -108,796 |
Balances (in shares) at Mar. 31, 2012 | ' | 28,183,469 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Stock option and purchase plan issuances | 71 | 5 | 66 | ' | ' |
Stock option and purchase plan issuances (in shares) | ' | 51,450 | ' | ' | ' |
Common stock issued and issuable for acquired business | 4,146 | 170 | 3,976 | ' | ' |
Common stock issued and issuable for acquired business (in shares) | ' | 1,696,329 | ' | ' | ' |
Stock options assumed for acquired business | 949 | ' | 949 | ' | ' |
Stock-based compensation | 1,049 | ' | 1,049 | ' | ' |
Net loss | -2,942 | ' | ' | ' | -2,942 |
Foreign currency translation adjustments | -47 | ' | ' | -47 | ' |
Balances at Mar. 31, 2013 | 34,990 | 2,993 | 141,478 | 2,257 | -111,738 |
Balances (in shares) at Mar. 31, 2013 | 29,931,248 | 29,931,248 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Stock option and purchase plan issuances | 96 | 19 | 77 | ' | ' |
Stock option and purchase plan issuances (in shares) | ' | 185,986 | ' | ' | ' |
Stock-based compensation | 1,293 | ' | 1,293 | ' | ' |
Net loss | 1,295 | ' | ' | ' | 1,295 |
Foreign currency translation adjustments | 103 | ' | ' | 103 | ' |
Balances at Mar. 31, 2014 | $37,777 | $3,012 | $142,848 | $2,360 | ($110,443) |
Balances (in shares) at Mar. 31, 2014 | 30,117,234 | 30,117,234 | ' | ' | ' |
Organization
Organization | 12 Months Ended |
Mar. 31, 2014 | |
Organization | ' |
Organization | ' |
1. Organization | |
TigerLogic Corporation’s (the “Company”) principal business is: 1) the design, development, sale, and support of rapid application development (“RAD”) software known as Omnis; 2) a hosted social media visualization platform known as Postano; 3) Internet search enhancement tools known as yolink; and 4) the design, development, and hosting of mobile applications and digital publishing solutions known as Storycode. The Company’s Omnis RAD software tools are sold to in-house corporate development teams, commercial application developers, system integrators, independent software vendors, value added resellers and independent consultants. The Company’s yolink and Postano product lines are targeted to customers ranging from companies to bloggers and individuals active in social media. The Company’s Storycode business designs and hosts mobile applications for publishers and media companies, and designs and develops interactive digital books, magazines and marketing materials for a variety of industries. In addition to computer software products, the Company provides continuing maintenance and customer support and, to a lesser extent, professional services and training. | |
On November 15, 2013, the Company completed the sale of its assets dedicated to the multidimensional database management system (“MDMS”) and related connectivity products known as the MDMS family of products, including D3, mvBase, mvEnterprise and the Pick connectivity products (the “MDMS Business”), and the related underlying enterprise resource planning (“ERP”) platform required to support the MDMS Business, to Rocket Software, Inc. (“Rocket”). As a result of this divestiture, the historical results of the MDMS Business has been reclassified and presented as discontinued operations for all periods presented. See Note 4 for additional information related to the disposition of the MDMS Business. |
Reclassification_Adjustment
Reclassification Adjustment | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Reclassification Adjustment | ' | |||||||||||||
Reclassification Adjustment | ' | |||||||||||||
2. Reclassification Adjustment | ||||||||||||||
During the year ended March 31, 2014, the Company corrected an error in the classification of its hosting services revenues to reclassify the revenues from licenses to services revenues. The Company also corrected the classification of related hosting service costs to reclassify the costs from research and development to cost of service revenue. Management has evaluated the materiality of the reclassification adjustments in fiscal 2013 and on each of the quarterly and year-to-date periods during the nine months ended December 31, 2013 both quantitatively and qualitatively and concluded that the errors were immaterial in each of the prior periods. | ||||||||||||||
The Company has revised the accompanying consolidated statement of comprehensive loss for the year ended March 31, 2013 to 1) decrease license revenue by approximately $237,000 and increase services revenue by the same amount, and 2) decrease research and development costs by approximately $109,000 and increase cost of service revenue by the same amount. The Company also revised the presentation of revenues and costs during each of the quarters during the nine months ended December 31, 2013, as follows (in thousands): | ||||||||||||||
Quarter Ended | Fiscal Year Ended | |||||||||||||
June 30, 2013 | September 30, 2013 | December 31, 2013 | March 31, 2013 | |||||||||||
As orginally reported: | ||||||||||||||
(adjusted for sale of MDMS business) | ||||||||||||||
Licenses | $ | 913 | $ | 937 | $ | 912 | $ | 2,327 | ||||||
Services | 454 | 580 | 530 | 1,450 | ||||||||||
Total net revenues | $ | 1,367 | $ | 1,517 | $ | 1,442 | $ | 3,777 | ||||||
Operating expenses: | ||||||||||||||
Cost of service revenue | $ | 100 | $ | 106 | $ | 103 | $ | 246 | ||||||
Research and development | $ | 1,026 | $ | 1,121 | $ | 1,234 | $ | 3,806 | ||||||
As corrected: | ||||||||||||||
Licenses | $ | 649 | $ | 616 | $ | 591 | $ | 2,090 | ||||||
Services | 718 | 901 | 851 | 1,687 | ||||||||||
Total net revenues | $ | 1,367 | $ | 1,517 | $ | 1,442 | $ | 3,777 | ||||||
Operating expenses: | ||||||||||||||
Cost of service revenue | $ | 127 | $ | 137 | $ | 159 | $ | 355 | ||||||
Research and development | $ | 999 | $ | 1,090 | $ | 1,178 | $ | 3,697 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2014 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
3. Summary of Significant Accounting Policies | |
Significant accounting policies applied in the preparation of the accompanying consolidated financial statements of the Company are as follows: | |
Principles of Consolidation-The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. | |
Revenue Recognition-Revenue attributable to an element in a customer arrangement is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. If, at the outset of the customer arrangement, the Company determines that the arrangement fee is not fixed or determinable, the Company defers the revenue and recognize the revenue when the arrangement fee becomes due and payable. The Company does not have price protection programs or conditional acceptance agreements, and sales of its products are made without right of return. | |
For contracts with multiple software and software-related elements, the Company recognizes revenue for the delivered elements, generally software licenses, using the residual value method when vendor-specific objective evidence (VSOE) of fair value exists for all undelivered elements, consisting primarily of post-contract customer support (PCS). PCS is recognized ratably over the support term. | |
For hosted software subscription arrangements, services revenue is recognized ratably over the subscription period. The Company also has services revenue consisting of consulting and training services that are either recognized as the services are performed or upon the completion of the services depending on the nature of the services. When subscription arrangements involve multiple elements that qualify as separate units of accounting, the Company allocates arrangement consideration to all deliverables based on the relative stand-alone selling price method in accordance with the selling price hierarchy, which includes: (i) VSOE if available; (ii) third-party evidence (TPE) if VSOE is not available; and (iii) best estimate of selling price (BESP) if neither VSOE nor TPE is available. Revenue allocated to each deliverable, limited to the amount not contingent on future performance, is then recognized when the basic revenue recognition criteria are met for the respective deliverables. | |
The Company determines whether VSOE can be established based on its historical pricing and discounting practices for the specific deliverable when sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices fall within a reasonably narrow pricing range. The Company has established VSOE for its PCS included in its software arrangements, but have not yet been able to establish VSOE for its subscription or other services. | |
When VSOE cannot be established for its subscription and other services, the Company applies judgment with respect to whether it can establish a selling price based on TPE. TPE is determined based on third party pricing practices for similar deliverables when sold separately. Generally, the Company’s pricing strategy differs from that of its peers and its offerings contain a significant level of differentiation such that the comparable pricing of services with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitors services’ selling prices are on a stand-alone basis. As a result, the Company has not been able to establish selling prices based on TPE. | |
When the Company is unable to establish a selling price for its subscription and other services using VSOE or TPE, the Company uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the respective elements were sold on a stand-alone basis. The Company estimates BESP for services by considering multiple factors including, but not limited to, prices charged for similar offerings, market conditions, competitive landscape, costs of providing the services, and its overall pricing practices. The Company currently uses BESP in order to allocate the selling price to its deliverables in multiple element subscription arrangements. | |
Cost of License and Service Revenue-Cost of license revenue is comprised of direct costs associated with software license sales including software packaging, documentation, physical media costs, amortization of intangible assets, and royalties. Cost of service revenue includes primarily data center hosting and personnel costs related to data center hosting, consulting, technical support, and training. Other costs specifically identifiable to the revenue source have been classified accordingly. | |
Cash and cash equivalents-Investment securities with a maturity of ninety days or less at the time of purchase are considered cash equivalents. | |
Trade Accounts Receivable-Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on historical write-off experience. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 60 days and over a specified amount are reviewed individually for collectibility. All other balances are reviewed on a pooled basis. | |
Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure related to its customers. | |
Property, Furniture and Equipment-Property, furniture, and equipment are stated at historical cost. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the assets, which range from two to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated useful lives of the assets. | |
Software Development Costs-Costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized until the software is available for general release to customers. The Company does not currently have any internal software development costs capitalized because software is available for general release concurrently with the establishment of technological feasibility. | |
Costs for the development of internal use software in the preliminary stages of development are expensed as incurred. Once an internal use application has reached the development stage, if: (1) the costs are direct and incremental and (2) management has determined that it is probable that the project will be completed and the software will be used to perform the function intended, internal and external costs are capitalized until the application is substantially complete and ready for its intended use. No internal use software development costs have been capitalized to date. These costs are included as research and development expenses. | |
Income Taxes-Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance to an amount whose realization is more likely than not. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |
The Company recognizes tax benefits from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized. Developments such as case law, changes in tax law, new rulings or regulations issued by taxing authorities, and interactions with the taxing authorities could affect whether a position should be recognized or the amount that should be reported. | |
Interest and penalties would accrue if the uncertain tax position were not sustained. Interest would start to accrue in the period it would begin accruing under the relevant tax law, and the amount of interest expense to be recognized would be computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Penalties would accrue in the first period in which the position was taken (or is expected to be taken) on a tax return that would give rise to the penalty. Unrecognized tax benefits and the related interest and penalty exposure would result in recognition of a liability or a reduction to a deferred tax asset. This liability is separate from the deferred tax component on the balance sheet and would be classified as long-term unless payment is expected within the next twelve months. Interest and penalties are classified as income tax expense. | |
Stock-Based Compensation-The Company recognizes share-based payments, including grants of stock options and other equity awards in the consolidated financial statements based on their fair values. The Company recognizes compensation expense for share-based awards ratably over the vesting period and purchase period, respectively. | |
Net Income (Loss) Per Share-Basic and diluted loss per share is computed using the net loss and the weighted average number of common shares outstanding during the period. Potential dilutive common shares include, for all of the periods presented, outstanding stock options and contingently issuable shares. There were 3,758,426, 4,612,361, and 3,126,177 outstanding options to purchase shares of the Company’s common stock and contingently issuable shares as of March 31, 2014, 2013, and 2012, respectively, that were not included in the computation of diluted loss per share because their effect would have been anti-dilutive. | |
Concentration of Credit Risk-The Company provides marketing services through its social media platform hosting and services, and digital publishing services. In addition, the Company also provides software licenses and support, primarily through distributors, resellers, and developers. Our customers are in diversified industries worldwide. On an ongoing basis, the Company performs credit evaluations of its customer’s financial condition and generally requires no collateral. No single customer accounted for more than 10% of revenues during any of the periods presented. | |
Foreign Currency Translation-The local currency is used as the functional currency for purposes of translating the financial statements of the Company’s foreign subsidiaries into the reporting currency. Assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each period end. Income statement accounts are translated at the average rate of exchange prevailing during the year. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income (loss) in stockholders’ equity. Gains and losses resulting from foreign currency transactions are included in other income (expense). Through November 2009, the British Pound was weakening against the U.S. Dollar, creating a foreign exchange gain for the Company related to a significant intercompany outstanding balance denominated in British Pound. Beginning in December 2009, foreign exchange gains and losses on the outstanding intercompany balance denominated in British Pound are being accumulated in a separate component of equity based on the Company’s determination that the settlement of this intercompany balance is not planned or anticipated in the foreseeable future. | |
The Company’s revenues generated through its offices located outside of the United States were approximately 49%, 61% and 68% of total revenue for the fiscal years ended March 31, 2014, 2013 and 2012, respectively. | |
Comprehensive Income (Loss)-Comprehensive income (loss) encompasses all changes in equity other than those with stockholders and consists of net income (loss) and foreign currency translation adjustments. For the subsidiaries located in Germany and United Kingdom, the Company does not provide for U.S. income taxes on foreign currency translation adjustments because it does not provide for such taxes on undistributed earnings of these foreign subsidiaries. For its French subsidiary, the Company provides for U.S. taxes on foreign currency translation adjustments. | |
Use of Estimates-The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. Specifically, the application of the purchase method of accounting for business combinations requires the use of significant estimates and assumptions in the determination of the fair value of assets acquired and liabilities assumed in order to properly allocate the purchase price consideration between depreciable assets, assumed liabilities, intangibles, and goodwill. The Company’s estimates of the fair values of assets and liabilities acquired are based upon assumptions the Company believes to be reasonable and include assistance from independent third-party appraisal firms. When equity instruments are issued as part of the purchase price consideration, the Company measures them at fair value as of the date of the acquisition. Actual results could differ from those estimates. | |
Impairment of Goodwill and Other Long-Lived Assets-Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | |
Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. | |
Goodwill and intangible assets that have indefinite useful lives are tested annually for impairment and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. For goodwill, the impairment determination is made at the reporting unit level and consists of two steps. First, the Company determines the fair value of a reporting unit and compares it to its carrying amount. Second, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. | |
Recent Accounting Pronouncement-In May 2014, the Financial Accounting Standard Board issued Accounting Standards Update (ASU) No. 2014-09, Revenue from contracts with Customers (Topic 606) which provides guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchanged for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently assessing the expected impact of the ASU on its financial position and results of operations. |
Discontinued_Operations_Busine
Discontinued Operations - Business Divestiture | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Discontinued Operations - Business Divestiture | ' | ||||||||||
Discontinued Operations - Business Divestiture | ' | ||||||||||
4. Discontinued Operations - Business Divestiture | |||||||||||
Over the last several years, the Company began to shift its strategy to focus primarily on growth opportunities in the mobile and social media industries. Consistent with this strategy, on November 15, 2013, the Company completed the sale of the MDMS Business, and the related underlying enterprise resource planning (“ERP”) platform required to support the MDMS Business, to Rocket for a total sale price of approximately $22.0 million (the “Sale”), of which approximately $19.8 million was received at closing and approximately $2.2 million is being held by a third party escrow agent for 12 months to serve as security for the Company’s general indemnification obligations. As a result of this divestiture, the historical results of the MDMS Business has been reclassified and presented as discontinued operations for all periods presented. Also, in connection with, and effective on, the closing of the Sale, the Company assigned to Rocket its Lease Agreement with The Irvine Company, dated November 9, 2004, as amended by the First Amendment thereto dated December 7, 2009. The lease was for approximately 15,000 square feet of office space in Irvine, California and ran through October 2015. Rocket had agreed to allow the Company to continue to occupy a portion of the space until April 2014 when the Company relocated to a new facility to accommodate the personnel previously employed at the premises and continuing with the Company following the Sale. | |||||||||||
In connection with the Sale, the parties also entered, at closing, into several ancillary and related agreements, including a transition services agreement designed to facilitate the transition of the MDMS Business to Rocket and minimize disruptions to the Company’s retained businesses, and an intellectual property license agreement, which will permit Rocket to use certain intellectual property owned by the Company and will permit the Company to use certain intellectual property owned by Rocket following the Sale. The costs of providing these services were considered immaterial and therefore were not included in discontinued operations on the statements of comprehensive income (loss). | |||||||||||
The Company identified costs that were considered to be related to ongoing activities separately from those related to the divested MDMS Business. Costs identified as relating to continuing operations include costs related to certain personnel and general and administrative costs, as well as other finance and legal costs which are equivalent to the resources expected on an ongoing basis after the divestiture. All compensation, benefits, stock-based compensation and other personnel related costs associated with these positions were included in ongoing operations. The Company also included costs related to being a public company, such as external audit costs, costs associated with the Sarbanes-Oxley Act, board of directors’ fees, SEC filing fees, and Nasdaq fees. Facilities and information systems/technology costs were allocated based upon the percentage of headcount of the employees assumed to be working primarily on continuing operations. All specific costs of the divested MDMS Business were classified as discontinued operations as they were considered necessary and were directly related the divested business. | |||||||||||
The Company identified assets and liabilities that were related to the divested MDMS Business and presented them as assets and liabilities from discontinued operations on the consolidated balance sheets as of March 31, 2013. Assets related to the MDMS Business included certain trade accounts receivable, fixed assets, and goodwill. Goodwill was allocated to the MDMS Business based on the relative fair values of the MDMS Business and continuing operations. Liabilities related to the MDMS Business included certain deferred revenue related to unamortized annual support revenue and certain pension liabilities relating to the Company’s France subsidiary. | |||||||||||
The following table presents the carrying amount of major classes of assets and liabilities relating to the discontinued operations as of March 31, 2013 (in thousands): | |||||||||||
March 31, 2013 | |||||||||||
Assets: | |||||||||||
Account receivables, net | $ | 411 | |||||||||
Total current assets of discontinued operations | $ | 411 | |||||||||
Property and equipment, net | $ | 92 | |||||||||
Goodwill | 13,473 | ||||||||||
Total noncurrent assets of discontinued operations | $ | 13,565 | |||||||||
Liabilities: | |||||||||||
Accrued liabilities | $ | 55 | |||||||||
Deferred revenue | 3,393 | ||||||||||
Total current liabilities of discontinued operations | $ | 3,448 | |||||||||
Long-term liabilties | $ | 34 | |||||||||
Total long-term liabilities of discontinued operations | $ | 34 | |||||||||
Current and historical results of operations of the MDMS Business have been classified as discontinued operations. Income from discontinued operations for the three years ended March 31, 2014, 2013, and 2012 represents the results of operations of the MDMS Business. As of the date of disposition, the Company has not had and does not anticipate generating any future cash flows related to the MDMS Business other than the $2.2 million cash expected to be received from escrow. | |||||||||||
The financial results of the discontinued operations for the years ended March 31, 2014, 2013 and 2012, were as follows (in thousands): | |||||||||||
For the Years Ended March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenue of discontinued operations | $ | 5,821 | $ | 9,063 | $ | 9,517 | |||||
Income from discontinued operations | 3,231 | 5,422 | 5,811 | ||||||||
Income tax expense | 590 | 2,089 | 2,266 | ||||||||
Income from discontinued operations, net of tax | 2,641 | 3,333 | 3,545 | ||||||||
Gain on sale of discontinued operations | 9,926 | — | — | ||||||||
Income tax expense | 4,008 | — | — | ||||||||
Gain on sale of discontinued operations, net of tax | 5,918 | — | — | ||||||||
Total income from discontinued operations | $ | 8,559 | $ | 3,333 | $ | 3,545 |
Business_Acquisition
Business Acquisition | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Business Acquisition | ' | |||||||
Business Acquisition | ' | |||||||
5. Business Acquisition | ||||||||
On January 17, 2013, the Company completed its acquisition of Storycode, Inc, a privately held mobile application publishing company. The acquisition was structured as a non-taxable transaction. Pursuant to the terms of the Agreement and Plan of Merger dated December 27, 2012, as amended (the “Merger Agreement”), Storycode became a wholly-owned subsidiary of the Company as of January 17, 2013. The Company incorporated Storycode’s expertise in mobile application development, user experience, and design into its Postano social media visualization platform to create a new kind of social platform with unique mobile distribution capabilities and allow brands to use original and fan-generated content to develop engaging experiences across the worldwide web, live events, and mobile environment. | ||||||||
In accordance with the Merger Agreement, the Company issued an aggregate of 1,696,329 shares of its common stock with a fair value of approximately $3.3 million and may issue an additional 444,468 shares with a fair value as of the acquisition closing date of approximately $861,000, subject to an 18-month holdback for general indemnification purposes pursuant to the Merger Agreement, which holdback share number may be adjusted from time to time. The Company also substituted 822,320 options to purchase its common stock for options to purchase Storycode’s common stock of which value of approximately $949,000 was allocated to the purchase price as of the acquisition closing date. In addition, the Company made cash payments aggregating approximately $499,000. Total consideration to acquire Storycode was approximately $5.6 million and comprised of the following (in thousands): | ||||||||
Fair value of common stock issued at closing | $ | 3,285 | ||||||
Fair value of common stock issuable-subject to the 18-month holdback | 861 | |||||||
Fair value of stock options assumed | 949 | |||||||
Cash consideration paid | 499 | |||||||
Total purchase price | $ | 5,594 | ||||||
The fair value of shares issued and issuable is based on the closing price of the Company’s common stock on the acquisition closing date of $2.28 per share. However, all of the shares issued or issuable are subject to a one-year lock up agreement that resulted in an adjustment to the estimated fair value of the common stock to $1.94 per share. Cash consideration included a bridge loan from the Company to Storycode made during the quarter ended December 31, 2012 as well as legal and accounting fees incurred by Storycode and reimbursed by the Company. The Company incurred approximately $497,000 in direct transaction costs, of which approximately $288,000 was incurred and paid during the year ended March 31, 2013 and $209,000 was incurred and paid during the fiscal year ended March 31, 2014. | ||||||||
In connection with the acquisition, each Storycode stock option that was outstanding and unexercised as of the acquisition date was assumed and converted into an option to purchase TigerLogic common stock based on a conversion ratio of 0.43085. Based on Storycode’s stock options outstanding at January 17, 2013, the Company converted options to purchase 1,908,583 shares of Storycode common stock into options to purchase 822,320 shares of TigerLogic common stock. The estimated value of the assumed stock options included in the purchase price equals the fair value of the fully vested stock options assumed plus the fair value of the portion of the partially vested stock options assumed attributable to pre-combination services. | ||||||||
The portion of the estimated fair value of the partially vested replacement stock options that was considered unearned compensation as of the date of acquisition was approximately $393,000, which will be recognized as stock-based compensation expense on a straight line basis over the remaining vesting periods of the respective awards. | ||||||||
The fair value of the stock options was estimated using a Black-Scholes option-pricing model with the following weighted average assumptions: | ||||||||
Options | ||||||||
Assumed and | ||||||||
Unearned | ||||||||
Volatility | 60%-85% | |||||||
Annual risk-free rate | 0.09%-0.40% | |||||||
Expected life (in years) | 0.5-3.04 | |||||||
Dividend yield | 0% | |||||||
Purchase Price Allocation | ||||||||
The total purchase price was allocated to Storycode’s net tangible and intangible assets based upon their estimated fair values as of the acquisition date. The excess purchase price over the value of the net tangible liabilities and identifiable intangible assets was recorded as goodwill. The table below represents the allocation of the purchase price to the acquired net assets of Storycode based on their estimated fair values as of the acquisition date and the associated estimated useful lives at that date. | ||||||||
Allocation of purchase price (in thousands): | ||||||||
Amount | Useful Life | |||||||
(years) | ||||||||
Identifiable intangible assets: | ||||||||
Trade and Domain Names | $ | 80 | 10 | |||||
Technology | 530 | 7 | ||||||
Goodwill | 5,268 | N/A | ||||||
Net tangible liabilities | (284 | ) | N/A | |||||
Total estimated purchase price allocation | $ | 5,594 | ||||||
Identifiable intangible assets-Trade and domain names acquired primarily includes the Storycode brand name. Existing technology acquired primarily includes content management and publishing platform for mobile applications. The estimated fair value and useful lives of the trade and domain names and existing technology acquired was determined based the relief-from-royalty method, with key assumptions including: 1) forecasted revenue estimates for the trade and domain names were based on Storycode’s legacy business line revenue; 2) a royalty rate of 1.0%; and 3) a discount rate of 20.0%. The Company expects to amortize the fair value of these intangible assets on a straight-line basis over their respective estimated useful lives. | ||||||||
Goodwill-Goodwill represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. The factors that contributed to the recognition of goodwill included securing certain synergies with existing technology of the Company that expect to increase revenue and profits of the Company, acquiring talented workforce, and cost savings opportunities. | ||||||||
Net tangible liabilities-Storycode’s tangible assets and liabilities as of January 17, 2013 were reviewed and adjusted to their fair value as necessary. Net tangible liabilities assumed included approximately $300,000 in accounts payable, $178,000 in other liabilities, $9,000 in cash, and $184,000 in accounts receivable. | ||||||||
Taxes-As part of the Company’s accounting for the acquisition of Storycode, a portion of the overall purchase price was allocated to goodwill and acquired intangible assets. Amortization expense associated with acquired intangible assets is not deductible for tax purposes. Approximately $0.6 million of net deferred tax assets was established as a result of the acquisition, which was offset by a full valuation allowance. Any impairment charge made in the future associated with goodwill will not be tax deductible and will result in an increased effective income tax rate in the quarter the impairment is recorded. | ||||||||
Pro Forma Results | ||||||||
Storycode’s results of operations are included in the Company’s historical results of operations for fiscal 2014 and part of fiscal 2013 from the acquisition date of January 17, 2013 through March 31, 2014 and were not significant. The following pro forma combined results of operations for the fiscal years 2013 and 2012 assumes the acquisition had taken place as of April 1, 2011, and combines the Company’s historical results of operations for the years ended March 31, 2013 and 2012, with Storycode’s unaudited historical results of operations for the years ended March 31, 2013 and 2012, respectively. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on April 1, 2011 or the results that may occur in the future. Acquisition related costs incurred during the year ended March 31, 2013 were not included in the pro forma information below. | ||||||||
For the Years Ended March 31, | ||||||||
2013 | 2012 | |||||||
(In thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Net revenue | $ | 4,767 | $ | 5,074 | ||||
Net loss | $ | (4,181 | ) | $ | (4,264 | ) | ||
Net loss per basic and diluted share | $ | (0.15 | ) | $ | (0.15 | ) |
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended |
Mar. 31, 2014 | |
Fair Value Measurement | ' |
Fair Value Measurement | ' |
6. Fair Value Measurement | |
The Company maintains all of its cash on deposit at financial institutions. As such, there were no cash equivalents on the Company’s balance sheets as of March 31, 2014 or 2013. There were no nonfinancial assets or liabilities that required recognition or disclosure at fair value on a nonrecurring basis in the Company’s balance sheets as of March 31, 2014 or 2013. |
Property_Furniture_and_Equipme
Property, Furniture and Equipment | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Furniture and Equipment | ' | |||||||
Property, Furniture and Equipment | ' | |||||||
7. Property, Furniture and Equipment | ||||||||
Property, furniture and equipment at March 31 consisted of (in thousands): | ||||||||
2014 | 2013 | |||||||
Land and buildings | $ | 713 | $ | 652 | ||||
Office equipment, furniture and fixtures | 4,641 | 4,556 | ||||||
Total | 5,354 | 5,208 | ||||||
Accumulated depreciation | (4,779 | ) | (4,749 | ) | ||||
Property, furniture and equipment, net | $ | 575 | $ | 459 | ||||
Depreciation expense for the fiscal years ended March 31, 2014, 2013, and 2012 was approximately $97,000, $111,000, and $143,000, respectively. |
Goodwill_and_intangible_assets
Goodwill and intangible assets | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Goodwill and intangible assets | ' | ||||||||||
Goodwill and intangible assets | ' | ||||||||||
8. Goodwill and intangible assets | |||||||||||
Goodwill as of March 31, 2014 and 2013 was as follows (in thousands): | |||||||||||
2013 | Divestiture | 2014 | |||||||||
Goodwill | $ | 31,656 | $ | (13,473 | ) | $ | 18,183 | ||||
Intangible assets subject to amortization at March 31, 2014 and 2013 were as follows (in thousands): | |||||||||||
March 31, 2014 | |||||||||||
Cost | Accumulated | Net | |||||||||
Amortization | |||||||||||
Purchased Trade and Domain Names | $ | 80 | $ | (10 | ) | $ | 70 | ||||
Purchased Technology | 530 | (90 | ) | 440 | |||||||
Total purchased intangible assets | $ | 610 | $ | (100 | ) | $ | 510 | ||||
March 31, 2013 | |||||||||||
Cost | Accumulated | Net | |||||||||
Amortization | |||||||||||
Purchased Trade and Domain Names | $ | 80 | $ | (2 | ) | $ | 78 | ||||
Purchased Technology | 530 | (15 | ) | 515 | |||||||
Total purchased intangible assets | $ | 610 | $ | (17 | ) | $ | 593 | ||||
Amortization expense related to purchased intangible assets for fiscal years 2014 and 2013 was approximately $83,000 and $17,000, respectively. There was no amortization expense in fiscal year 2012. | |||||||||||
Purchased intangible assets are amortized over their estimated useful lives of seven and ten years. At March 31, 2014, expected future amortization expense is as follows (in thousands): | |||||||||||
Years Ending March 31, | Intangible | ||||||||||
assets | |||||||||||
2015 | $ | 84 | |||||||||
2016 | 84 | ||||||||||
2017 | 84 | ||||||||||
2018 | 84 | ||||||||||
2019 and thereafter | 174 | ||||||||||
Total expected amortization expense | $ | 510 |
Stockholders_Equity
Stockholder's Equity | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Stockholder's Equity | ' | |||||||||||||
Stockholder's Equity | ' | |||||||||||||
9. Stockholder’s Equity | ||||||||||||||
Series A Convertible Preferred Stock | ||||||||||||||
The Company had 5,000,000 shares of Series A convertible preferred stock (“Series A”) authorized and no shares of Series A issued and outstanding at March 31, 2014 and 2013. | ||||||||||||||
Common Stock | ||||||||||||||
The Company had 100,000,000 shares of common stock authorized and 30,117,234 and 29,931,248 shares of common stock issued and outstanding as of March 31, 2014 and 2013, respectively. | ||||||||||||||
Stock Options | ||||||||||||||
On February 25, 2009, the shareholders voted to approve and the Company adopted the 2009 Equity Incentive Plan (“2009 Plan”). The 2009 Plan provides for the granting of stock options, restricted stock, and restricted stock units to directors, employees and consultants. In conjunction with the adoption of the 2009 Plan, the Company terminated all other plans, except as to options then issued and outstanding under such plans. The total number of shares available for issuance under the 2009 Plan at adoption date is based on the number of shares that have been reserved but not issued under the 1999 Stock Plan (“1999 Plan”), the shares under the 1999 Plan which expired, were cancelled or were forfeited, and the annual share reserve increase. Included in the 2009 Plan is the provision for the annual automatic share reserve increase on the last day of each fiscal year in an amount equal to the lesser of (a) 3% of the Company’s total outstanding shares on the last day of the Company’s fiscal year, (b) 2,000,000, or (c) such lesser amount as determined in the sole and absolute discretion of the Board. The annual increase for the year ended March 31, 2014 was 903,517 shares. At March 31, 2014, total number of shares available for issuance under the 2009 Plan was 4,942,242 shares. Stock options are generally granted with an exercise price equal to the stock’s fair market value at the date of grant. All options under the 2009 Plan have ten-year terms and generally vest ratably over a period of four years. | ||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||
On December 12, 2001, the Board of Directors approved the Company’s 2001 Employee Stock Purchase Plan (the “ESPP”) to provide employees of the Company with an opportunity to purchase common stock of the Company through accumulated payroll deductions. The maximum number of shares of common stock made available for sale under the ESPP is 1,000,000 shares. The offer periods of six months’ duration commence each February 15 and August 15. An employee may contribute between 1% and 10% of their compensation, not to exceed $21,250 per calendar year. Individual employee share purchases are limited to 1,500 shares per offer period. Employees are able to purchase the stock at an amount equal to 85% of the market value of a share of common stock on the enrollment date or on the exercise date, whichever is lower. In February 2012, the stockholders approved an amendment to the Company’s 2001 Employee Stock Purchase Plan (“2001 Plan”), which otherwise was scheduled to expire by its own terms. The main changes in the Company’s 2011 Amended and Restated Employee Stock Purchase Plan (“Stock Purchase Plan”) are: (i) to eliminate the ten-year term limit; (ii) to amend the definition of compensation used under the Stock Purchase Plan to include deferrals made under qualified transportation benefit programs; and (iii) to increase the hours per week that an otherwise eligible employee must work in order to be able to participate in the Stock Purchase Plan from more than ten (10) to more than twenty (20). In addition, the Stock Purchase Plan clarifies certain provisions of the 2001 Plan and amends various technical provisions in order to comply with applicable laws. The total number of shares of the Company’s common stock reserved for issuance and available for purchase under the Stock Purchase Plan was not increased from the 2001 Plan and remained at 1,000,000 (less shares already issued under the 2001 Plan). | ||||||||||||||
Through March 31, 2014, 713,961 shares had been issued to employees under the ESPP. For the year ended March 31, 2014, 16,231 shares of common stock were issued under the ESPP. As of March 31, 2014, employee withholdings under the ESPP were de minimus. | ||||||||||||||
Stock-Based Compensation | ||||||||||||||
The Company estimates the fair value of employee stock options granted and ESPP purchase rights using the Black-Scholes option-pricing model and a single option award approach. Under this approach, the compensation expense for awards that have a graded vesting schedule is recognized on a straight-line basis over the requisite service period, net of estimated forfeitures. When estimating forfeitures, the Company considers voluntary termination behavior as well as analysis of actual option forfeitures. | ||||||||||||||
The Company estimated the fair value of its stock options and ESPP purchase rights using the following weighted average assumptions: | ||||||||||||||
Years Ended March 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
ESPP | ESPP | ESPP | ||||||||||||
Stock | purchase | Stock | purchase | Stock | purchase | |||||||||
options | rights | options | rights | options | rights | |||||||||
Expected term | 5.67 Years | 0.5 Years | 5.0 Years | 0.5 Years | 5.3 Years | 0.5 Years | ||||||||
Expected volatility | 77 | % | 76 | % | 71 | % | 73 | % | 75 | % | 72 | % | ||
Risk-free interest rate | 1.56 | % | 0.08 | % | 0.74 | % | 0.13 | % | 1.25 | % | 0.13 | % | ||
Dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||
Expected Term-The expected term represents the period the Company’s stock-based awards are expected to be outstanding and was determined based on historical experience with similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of its stock-based awards. The weighted average expected term is calculated based on the number of shares granted and the related expected term. | ||||||||||||||
Expected Volatility-The computation of expected volatility is based on historical volatility equal to the expected term. | ||||||||||||||
Risk-Free Interest Rate-The risk-free interest rate used in the Black-Scholes valuation method is based on the yield available on U.S. Treasury securities with a term equal to the expected term at the time of grant. | ||||||||||||||
Dividend Yield-No dividends are expected to be paid. | ||||||||||||||
Total stock-based compensation expense included in the consolidated statements of comprehensive loss is as follows (in thousands): | ||||||||||||||
Twelve Months Ended March 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Cost of service revenue | $ | 39 | $ | 3 | $ | 6 | ||||||||
Operating expense: | ||||||||||||||
Selling and marketing | 347 | 179 | 312 | |||||||||||
Research and development | 285 | 250 | 368 | |||||||||||
General and administrative | 410 | 487 | 395 | |||||||||||
Total stock-based compensation expense | 1,081 | 919 | 1,081 | |||||||||||
Income tax benefit | — | — | — | |||||||||||
Net stock-based compensation expense | $ | 1,081 | $ | 919 | $ | 1,081 | ||||||||
Excluded from the table above was stock-based compensation expense related to discontinued operations of approximately $212,000 and $130,000, and $199,000 for the years ended March 31, 2014, 1013, and 2012, respectively. | ||||||||||||||
As of March 31, 2014, there was approximately $1.4 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a weighted-average period of 2.2 years. | ||||||||||||||
Stock option activity was as follows for fiscal years 2014, 2013, and 2012: | ||||||||||||||
Number of Shares | Weighted | Weighted | Aggregate | |||||||||||
Average Exercise | Average | Intrinsic Value | ||||||||||||
Price | Remaining | |||||||||||||
Contractual | ||||||||||||||
Term in Years | ||||||||||||||
Options outstanding as of March 31, 2011 | 2,534,226 | $ | 3.32 | 5.9 | $ | 3,374,573 | ||||||||
Granted | 1,349,500 | $ | 3.64 | |||||||||||
Exercised | (43,640 | ) | $ | 1.99 | ||||||||||
Forfeited | (385,140 | ) | $ | 3.89 | ||||||||||
Expired | (328,769 | ) | $ | 4.21 | ||||||||||
Options outstanding as of March 31, 2012 | 3,126,177 | $ | 3.31 | 6.4 | $ | 91,005 | ||||||||
Granted | 942,000 | $ | 2.07 | |||||||||||
Increase due to acquisition of Storycode | 822,320 | $ | 0.7 | |||||||||||
Exercised | (17,770 | ) | $ | 1.37 | ||||||||||
Forfeited | (157,586 | ) | $ | 2.58 | ||||||||||
Expired | (547,248 | ) | $ | 3.45 | ||||||||||
Options outstanding as of March 31, 2013 | 4,167,893 | $ | 2.53 | 6.4 | $ | 1,013,910 | ||||||||
Granted | 1,103,016 | $ | 1.87 | |||||||||||
Exercised | (223,866 | ) | $ | 0.71 | ||||||||||
Forfeited | (684,378 | ) | $ | 2.85 | ||||||||||
Expired | (953,232 | ) | $ | 2.38 | ||||||||||
Options outstanding as of March 31, 2014 | 3,409,433 | $ | 2.41 | 7 | $ | 221,097 | ||||||||
Vested and expected to vest at March 31, 2014 | 3,273,226 | $ | 2.44 | 6.9 | $ | 212,718 | ||||||||
Exercisable at March 31, 2014 | 2,269,548 | $ | 2.68 | 6 | $ | 127,048 | ||||||||
The aggregate intrinsic value in the table above represents the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the options that were in-the-money at each year end presented. The aggregate intrinsic value of options exercised under the 1999 and 2009 Plan was approximately $220,000, $24,000, and $67,790 for the years ended March 31, 2014, 2013, and 2012, respectively, determined as of the date of option exercise. Weighted-average grant-date fair values of the options granted during the years ended March 31, 2014, 2013, and 2012 were $1.23, $1.30, and $1.98, respectively. | ||||||||||||||
Retirement Plans | ||||||||||||||
The Company sponsors a 401(k) Savings and Retirement Plan (“the Plan”) for substantially all of its employees in the United States. Employees meeting the eligibility requirements may contribute specified percentages of their salaries. The Company’s Board of Directors, in its sole discretion, may make discretionary profit-sharing contributions at 50% of the employees’ contributions up to 4% of the employees’ total compensation, to the Plan. There were no discretionary annual contributions made to the Plan for the years ended March 31, 2014, 2013 and 2012. | ||||||||||||||
The Company sponsors the TigerLogic UK Limited Retirement Benefits Scheme (“TLUKL Plan”) for substantially all of its employees in the United Kingdom. The TLUKL Plan is a defined contribution plan that provides retirement benefits upon attaining normal retirement age, and incidental benefits in the case of death or termination of employment prior to retirement. TigerLogic UK contributes an amount ranging from 3% to 8% of each participant’s compensation to fund such benefits. In addition, participants are entitled to make voluntary contributions under the TLUKL Plan. The Company contributed approximately $53,000, $41,000 and $34,000 to the TLUKL Plan for the years ended March 31, 2014, 2013 and 2012, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
10. Income Taxes | |||||||||||
The Company’s geographical breakdown of its income (loss) from continuing operations before provision for income taxes is as follows: | |||||||||||
Years Ended March 31, | |||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||
Current | |||||||||||
Domestic | $ | (11,580 | ) | $ | (8,044 | ) | $ | (8,994 | ) | ||
Foreign | 351 | (243 | ) | (266 | ) | ||||||
Loss before provision for taxes | $ | (11,229 | ) | $ | (8,287 | ) | $ | (9,260 | ) | ||
The components of the provision for income taxes are as follows: | |||||||||||
Years Ended March 31, | |||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||
Current | |||||||||||
Federal | $ | — | $ | — | $ | — | |||||
State | — | — | — | ||||||||
Foreign | 123 | 76 | 69 | ||||||||
Total current provision | 123 | 76 | 69 | ||||||||
Deferred | |||||||||||
Federal | (3,495 | ) | (1,829 | ) | (1,924 | ) | |||||
State | (600 | ) | (200 | ) | (242 | ) | |||||
Foreign | 7 | (59 | ) | (71 | ) | ||||||
Total deferred provision | (4,088 | ) | (2,088 | ) | (2,237 | ) | |||||
Total | $ | (3,965 | ) | $ | (2,012 | ) | $ | (2,168 | ) | ||
Reconciliations of the provisions for income taxes at the statutory rates to the Company’s provisions for income taxes are as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Expected U.S. Federal tax expense (benefit) | (34.0 | )% | (34.0 | )% | (34.0 | )% | |||||
State taxes | (3.5 | )% | (3.7 | )% | (4.3 | )% | |||||
Foreign taxes | 0.4 | % | 0.9 | % | 0.7 | % | |||||
Change in valuation allowance | — | % | 13.6 | % | 13 | % | |||||
Research and experimentation credit | — | % | (2.9 | )% | (1.2 | )% | |||||
Stock-based compensation expense | 1.6 | % | 1.7 | % | 2.3 | % | |||||
Other | 0.1 | % | 0.1 | % | 0.1 | % | |||||
Actual effective tax rate | (35.4 | )% | (24.3 | )% | (23.4 | )% | |||||
Significant components of the Company’s net deferred tax assets are as follows at March 31: | |||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||||
Net operating loss carryforwards | $ | 9,583 | $ | 15,926 | $ | 17,572 | |||||
Accruals and allowances recognized in different periods | 408 | 323 | 373 | ||||||||
Research and experimentation credit carryforwards | 5,852 | 5,438 | 5,013 | ||||||||
Property and equipment | 50 | 73 | 109 | ||||||||
Stock-based compensation expense | 1,410 | 1,225 | 855 | ||||||||
Total deferred assets | 17,303 | 22,985 | 23,922 | ||||||||
Less valuation allowance | (16,844 | ) | (22,387 | ) | (23,532 | ) | |||||
Total deferred assets | 459 | 598 | 390 | ||||||||
Deferred tax liabilities: | |||||||||||
Currency translation adjustment | (127 | ) | (125 | ) | (129 | ) | |||||
Intangibles | (193 | ) | (224 | ) | — | ||||||
Net deferred tax asset | $ | 139 | $ | 249 | $ | 261 | |||||
Recognition of deferred tax assets is appropriate when realization of these assets is more likely than not. Based upon the weight of available evidence, including the Company’s historical operating performance and the recorded cumulative net losses in prior fiscal periods, the Company has provided a full valuation allowance against its United States and United Kingdom deferred tax assets. The Company’s valuation allowance decreased by $5.5 million, $1.2 million, and $1.0 million in the years ended March 31, 2014, 2013, and 2012, respectively. | |||||||||||
The Company recognizes excess income tax benefits from stock option exercises in the additional paid in capital account in stockholders’ equity only if an incremental income tax benefit would be realized after considering all other tax attributes presently available to the Company. There was no such excess income tax benefits recognized for the years ended March 31, 2014, 2013, or 2012. | |||||||||||
As of March 31, 2014, the Company had U.S. federal, state, and foreign net operating loss carryforwards of approximately $27.6 million, $1.8 million, and $3.8 million, respectively. Of these amounts, $2.3 million and $0.2 million represent federal and state tax deductions in excess of recognized stock option compensation, respectively, which will be recorded as an adjustment to additional paid-in capital when they reduce taxes payable. If unused, the federal net operating loss carryforwards will begin to expire in 2019, the state net operating loss carryforwards will begin to expire in 2016. Foreign net operating losses may be carried forward indefinitely. Approximately $1.4 million and $1.4 million of the federal and state net operating loss carryforwards, respectively, are subject to an annual limitation of approximately $0.2 million per year. | |||||||||||
As of March 31, 2014, the Company had U.S. federal and state tax credit carryforwards of approximately $3.5 million and $3.6 million, respectively. Of the state amount, $0.1 million represents the amount of state tax credit utilized in lieu of state excess tax benefits under the “with-and-without” approach. The federal credit will expire beginning in 2019, if not utilized. California state research and development credits can be carried forward indefinitely. With respect to the Company’s foreign subsidiaries in the UK and Germany, the Company intends to permanently reinvest earnings, therefore, no U.S. income or foreign tax withholding has been provided for in deferred income taxes. It is not practical for the Company to determine the amount of deferred tax liability relating to its subsidiary in Germany. With respect to the Company’s foreign subsidiary in France, it is treated as a branch for U.S. income tax purposes, which results in its earnings being taxed in the U.S. There is no unrecognized deferred tax liability related to undistributed earnings due to cumulative losses sustained by these foreign subsidiaries. | |||||||||||
The Company did not have any gross unrecognized tax benefit for the three years ended March 31, 2014, 1013, and 2012. While it is often difficult to predict the final outcome of any particular uncertain tax position, management does not believe that it is reasonably possible that the estimates of unrecognized tax benefits will change significantly in the next twelve months. | |||||||||||
The Company files consolidated and separate income tax return in the U.S. federal jurisdiction and in certain state jurisdictions as well as foreign jurisdictions including France, Germany, and the United Kingdom. The Company is subject to income tax examinations for fiscal years after 2010 for France, fiscal years after 2008 for Germany, and fiscal years after 2007 for the United Kingdom. As a result of net operating loss carryforwards, the Company is subject to audit for fiscal years 1999 and forward for federal purposes and 2006 and forward for California purposes. | |||||||||||
California Proposition 39 passed in November 2012, requiring mandatory single sales factor apportionment for tax years beginning on or after January 1, 2013. Therefore, the Company was required to use single sales factor apportionment for California purposes for the tax year ended March 31, 2014, resulting in immaterial adjustment to the blended state rate used to calculate the tax effect on its deferred tax assets and liabilities. | |||||||||||
During the year ended March 31, 2012, the German tax authorities closed a tax audit of the Company’s subsidiary in Germany for the fiscal years 2005 to 2007, which resulted in a net tax expense of approximately $82,000. The Company’s subsidiary in Germany is currently under tax audit by the German tax authorities for the fiscal years 2009-2011. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments and Contingencies. | ' | ||||
Commitments and Contingencies | ' | ||||
11. Commitments and Contingencies | |||||
Leases | |||||
The Company leases office space and certain equipment under noncancelable operating lease agreements with terms expiring through 2017. Rent expense related to operating these leases is recognized ratably over the entire lease term. The Company is required to pay property taxes, insurance and normal maintenance costs. | |||||
Future minimum lease payments under noncancelable operating leases with initial or remaining lease terms in excess of one year as of March 31, 2014 are as follows (in thousands): | |||||
Years Ending March 31, | Operating | ||||
Leases | |||||
2015 | $ | 513 | |||
2016 | 438 | ||||
2017 | 230 | ||||
2018 | 112 | ||||
2019 and thereafter | 109 | ||||
Total minimum lease payments | $ | 1,402 | |||
Rent expense of $708,000, $805,000 and $813,000 was recognized in 2014, 2013 and 2012, respectively. | |||||
In conjunction with the MDMS Business divestiture, the Company assigned a lease to Rocket. Under the terms of that lease, the Company remains liable for the lease obligations through its termination in October 2015, should Rocket cease making lease payments it is obligated to make under the terms of the assignment. As of March 31, 2014, the present value of the lease obligations under the remaining master’s lease’s primary term is approximately $467,000. As of March 31, 2014, the Company did not have any lease exposure due to any lack of performance by Rocket, and believes that the likelihood of material liability being triggered under this lease is remote. | |||||
Litigation | |||||
The Company is subject from time to time to litigation, claims and suits arising in the ordinary course of business. There were no material ongoing legal proceedings as of March 31, 2014. | |||||
Indemnification | |||||
The Company’s standard customer license and software agreements contain indemnification and warranty provisions which are generally consistent with practice in the Company’s industry. The duration of the Company’s service warranties generally does not exceed 30 days following completion of its services. The Company has not incurred significant obligations under customer indemnification or warranty provisions historically and does not expect to incur significant obligations in the future. Accordingly, the Company does not maintain accruals for potential customer indemnification or warranty-related obligations. The maximum potential amount of future payments that the Company could be required to make is generally limited under the indemnification provisions in its customer license and service agreements. The Company has entered into the standard form of indemnification agreement with each of its directors and executives. In addition, the terms of the sale of the Company’s MDMS Business include certain general indemnification obligations of the Company in favor of Rocket. However, as these relate to standard representations and warranties, the Company currently does not expect to incur any significant obligations related to the indemnification and has recorded amounts placed in escrow related to the indemnification as a receivable from Rocket at the date of sale. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Segment Information | ' | ||||||||||
Segment Information | ' | ||||||||||
12. Segment Information | |||||||||||
The Company operates in one reportable segment. International operations consist primarily of foreign sales offices selling software developed in the United States combined with local service revenue. The following table summarizes consolidated financial information of the Company’s operations by geographic location (in thousands): | |||||||||||
Years Ended March 31, | |||||||||||
Net revenue | 2014 | 2013 | 2012 | ||||||||
United States | $ | 2,779 | $ | 1,471 | $ | 1,235 | |||||
Europe | 2,711 | 2,306 | 2,594 | ||||||||
Total | $ | 5,490 | $ | 3,777 | $ | 3,829 | |||||
March 31, | |||||||||||
Long-lived assets | 2014 | 2013 | |||||||||
United States | $ | 18,928 | $ | 18,941 | |||||||
Europe | 413 | 405 | |||||||||
Total | $ | 19,341 | $ | 19,346 | |||||||
The Company engages in the design, development, sale, and support of the following product lines: 1) Rapid Application Development (“RAD”) software, and 2) Social and Mobile Platform, consisting of Postano, Storycode, and yolink products and services. The following table represents the Company’s net revenue by product line (in thousands): | |||||||||||
Years Ended March 31, | |||||||||||
Net revenue | 2014 | 2013 | 2012 | ||||||||
RAD Software Tools | $ | 3,803 | $ | 3,499 | $ | 3,807 | |||||
Social and Mobile Platform | 1,687 | 278 | 22 | ||||||||
Total | $ | 5,490 | $ | 3,777 | $ | 3,829 |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accrued Liabilities | ' | |||||||
Accrued Liabilities | ' | |||||||
13. Accrued Liabilities | ||||||||
Components of accrued liabilities at March 31 are as follows (in thousands): | ||||||||
2014 | 2013 | |||||||
Payroll and related costs | $ | 825 | $ | 853 | ||||
Professional fees | 63 | 33 | ||||||
Taxes | 11 | 101 | ||||||
Pension | 35 | 46 | ||||||
Revenue sharing agreement | 750 | — | ||||||
Other | 208 | 207 | ||||||
Total accrued liabilities | $ | 1,892 | $ | 1,240 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2014 | |
Summary of Significant Accounting Policies | ' |
Principles of Consolidation | ' |
Principles of Consolidation-The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. | |
Revenue Recognition | ' |
Revenue Recognition-Revenue attributable to an element in a customer arrangement is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. If, at the outset of the customer arrangement, the Company determines that the arrangement fee is not fixed or determinable, the Company defers the revenue and recognize the revenue when the arrangement fee becomes due and payable. The Company does not have price protection programs or conditional acceptance agreements, and sales of its products are made without right of return. | |
For contracts with multiple software and software-related elements, the Company recognizes revenue for the delivered elements, generally software licenses, using the residual value method when vendor-specific objective evidence (VSOE) of fair value exists for all undelivered elements, consisting primarily of post-contract customer support (PCS). PCS is recognized ratably over the support term. | |
For hosted software subscription arrangements, services revenue is recognized ratably over the subscription period. The Company also has services revenue consisting of consulting and training services that are either recognized as the services are performed or upon the completion of the services depending on the nature of the services. When subscription arrangements involve multiple elements that qualify as separate units of accounting, the Company allocates arrangement consideration to all deliverables based on the relative stand-alone selling price method in accordance with the selling price hierarchy, which includes: (i) VSOE if available; (ii) third-party evidence (TPE) if VSOE is not available; and (iii) best estimate of selling price (BESP) if neither VSOE nor TPE is available. Revenue allocated to each deliverable, limited to the amount not contingent on future performance, is then recognized when the basic revenue recognition criteria are met for the respective deliverables. | |
The Company determines whether VSOE can be established based on its historical pricing and discounting practices for the specific deliverable when sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices fall within a reasonably narrow pricing range. The Company has established VSOE for its PCS included in its software arrangements, but have not yet been able to establish VSOE for its subscription or other services. | |
When VSOE cannot be established for its subscription and other services, the Company applies judgment with respect to whether it can establish a selling price based on TPE. TPE is determined based on third party pricing practices for similar deliverables when sold separately. Generally, the Company’s pricing strategy differs from that of its peers and its offerings contain a significant level of differentiation such that the comparable pricing of services with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitors services’ selling prices are on a stand-alone basis. As a result, the Company has not been able to establish selling prices based on TPE. | |
When the Company is unable to establish a selling price for its subscription and other services using VSOE or TPE, the Company uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the respective elements were sold on a stand-alone basis. The Company estimates BESP for services by considering multiple factors including, but not limited to, prices charged for similar offerings, market conditions, competitive landscape, costs of providing the services, and its overall pricing practices. The Company currently uses BESP in order to allocate the selling price to its deliverables in multiple element subscription arrangements. | |
Cost of License and Service Revenue | ' |
Cost of License and Service Revenue-Cost of license revenue is comprised of direct costs associated with software license sales including software packaging, documentation, physical media costs, amortization of intangible assets, and royalties. Cost of service revenue includes primarily data center hosting and personnel costs related to data center hosting, consulting, technical support, and training. Other costs specifically identifiable to the revenue source have been classified accordingly. | |
Cash and cash equivalents | ' |
Cash and cash equivalents-Investment securities with a maturity of ninety days or less at the time of purchase are considered cash equivalents. | |
Trade Accounts Receivable | ' |
Trade Accounts Receivable-Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on historical write-off experience. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 60 days and over a specified amount are reviewed individually for collectibility. All other balances are reviewed on a pooled basis. | |
Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure related to its customers. | |
Property, Furniture and Equipment | ' |
Property, Furniture and Equipment-Property, furniture, and equipment are stated at historical cost. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the assets, which range from two to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated useful lives of the assets. | |
Software Development Costs | ' |
Software Development Costs-Costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized until the software is available for general release to customers. The Company does not currently have any internal software development costs capitalized because software is available for general release concurrently with the establishment of technological feasibility. | |
Costs for the development of internal use software in the preliminary stages of development are expensed as incurred. Once an internal use application has reached the development stage, if: (1) the costs are direct and incremental and (2) management has determined that it is probable that the project will be completed and the software will be used to perform the function intended, internal and external costs are capitalized until the application is substantially complete and ready for its intended use. No internal use software development costs have been capitalized to date. These costs are included as research and development expenses. | |
Income Taxes | ' |
Income Taxes-Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance to an amount whose realization is more likely than not. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |
The Company recognizes tax benefits from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized. Developments such as case law, changes in tax law, new rulings or regulations issued by taxing authorities, and interactions with the taxing authorities could affect whether a position should be recognized or the amount that should be reported. | |
Interest and penalties would accrue if the uncertain tax position were not sustained. Interest would start to accrue in the period it would begin accruing under the relevant tax law, and the amount of interest expense to be recognized would be computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Penalties would accrue in the first period in which the position was taken (or is expected to be taken) on a tax return that would give rise to the penalty. Unrecognized tax benefits and the related interest and penalty exposure would result in recognition of a liability or a reduction to a deferred tax asset. This liability is separate from the deferred tax component on the balance sheet and would be classified as long-term unless payment is expected within the next twelve months. Interest and penalties are classified as income tax expense. | |
Stock-Based Compensation | ' |
Stock-Based Compensation-The Company recognizes share-based payments, including grants of stock options and other equity awards in the consolidated financial statements based on their fair values. The Company recognizes compensation expense for share-based awards ratably over the vesting period and purchase period, respectively. | |
Net Income (Loss) Per Share | ' |
Net Income (Loss) Per Share-Basic and diluted loss per share is computed using the net loss and the weighted average number of common shares outstanding during the period. Potential dilutive common shares include, for all of the periods presented, outstanding stock options and contingently issuable shares. There were 3,758,426, 4,612,361, and 3,126,177 outstanding options to purchase shares of the Company’s common stock and contingently issuable shares as of March 31, 2014, 2013, and 2012, respectively, that were not included in the computation of diluted loss per share because their effect would have been anti-dilutive. | |
Concentration of Credit Risk | ' |
Concentration of Credit Risk-The Company provides marketing services through its social media platform hosting and services, and digital publishing services. In addition, the Company also provides software licenses and support, primarily through distributors, resellers, and developers. Our customers are in diversified industries worldwide. On an ongoing basis, the Company performs credit evaluations of its customer’s financial condition and generally requires no collateral. No single customer accounted for more than 10% of revenues during any of the periods presented. | |
Foreign Currency Translation | ' |
Foreign Currency Translation-The local currency is used as the functional currency for purposes of translating the financial statements of the Company’s foreign subsidiaries into the reporting currency. Assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each period end. Income statement accounts are translated at the average rate of exchange prevailing during the year. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income (loss) in stockholders’ equity. Gains and losses resulting from foreign currency transactions are included in other income (expense). Through November 2009, the British Pound was weakening against the U.S. Dollar, creating a foreign exchange gain for the Company related to a significant intercompany outstanding balance denominated in British Pound. Beginning in December 2009, foreign exchange gains and losses on the outstanding intercompany balance denominated in British Pound are being accumulated in a separate component of equity based on the Company’s determination that the settlement of this intercompany balance is not planned or anticipated in the foreseeable future. | |
The Company’s revenues generated through its offices located outside of the United States were approximately 49%, 61% and 68% of total revenue for the fiscal years ended March 31, 2014, 2013 and 2012, respectively. | |
Comprehensive Income ( Loss) | ' |
Comprehensive Income (Loss)-Comprehensive income (loss) encompasses all changes in equity other than those with stockholders and consists of net income (loss) and foreign currency translation adjustments. For the subsidiaries located in Germany and United Kingdom, the Company does not provide for U.S. income taxes on foreign currency translation adjustments because it does not provide for such taxes on undistributed earnings of these foreign subsidiaries. For its French subsidiary, the Company provides for U.S. taxes on foreign currency translation adjustments. | |
Use of Estimates | ' |
Use of Estimates-The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. Specifically, the application of the purchase method of accounting for business combinations requires the use of significant estimates and assumptions in the determination of the fair value of assets acquired and liabilities assumed in order to properly allocate the purchase price consideration between depreciable assets, assumed liabilities, intangibles, and goodwill. The Company’s estimates of the fair values of assets and liabilities acquired are based upon assumptions the Company believes to be reasonable and include assistance from independent third-party appraisal firms. When equity instruments are issued as part of the purchase price consideration, the Company measures them at fair value as of the date of the acquisition. Actual results could differ from those estimates. | |
Impairment of Goodwill and Other Long-Lived Assets | ' |
Impairment of Goodwill and Other Long-Lived Assets-Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | |
Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. | |
Goodwill and intangible assets that have indefinite useful lives are tested annually for impairment and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. For goodwill, the impairment determination is made at the reporting unit level and consists of two steps. First, the Company determines the fair value of a reporting unit and compares it to its carrying amount. Second, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. | |
Recent Accounting Pronouncement | ' |
Recent Accounting Pronouncement-In May 2014, the Financial Accounting Standard Board issued Accounting Standards Update (ASU) No. 2014-09, Revenue from contracts with Customers (Topic 606) which provides guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchanged for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently assessing the expected impact of the ASU on its financial position and results of operations. |
Reclassification_Adjustment_Ta
Reclassification Adjustment (Table) | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Reclassification Adjustment | ' | |||||||||||||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | ' | |||||||||||||
The Company also revised the presentation of revenues and costs during each of the quarters during the nine months ended December 31, 2013, as follows (in thousands): | ||||||||||||||
Quarter Ended | Fiscal Year Ended | |||||||||||||
June 30, 2013 | September 30, 2013 | December 31, 2013 | March 31, 2013 | |||||||||||
As orginally reported: | ||||||||||||||
(adjusted for sale of MDMS business) | ||||||||||||||
Licenses | $ | 913 | $ | 937 | $ | 912 | $ | 2,327 | ||||||
Services | 454 | 580 | 530 | 1,450 | ||||||||||
Total net revenues | $ | 1,367 | $ | 1,517 | $ | 1,442 | $ | 3,777 | ||||||
Operating expenses: | ||||||||||||||
Cost of service revenue | $ | 100 | $ | 106 | $ | 103 | $ | 246 | ||||||
Research and development | $ | 1,026 | $ | 1,121 | $ | 1,234 | $ | 3,806 | ||||||
As corrected: | ||||||||||||||
Licenses | $ | 649 | $ | 616 | $ | 591 | $ | 2,090 | ||||||
Services | 718 | 901 | 851 | 1,687 | ||||||||||
Total net revenues | $ | 1,367 | $ | 1,517 | $ | 1,442 | $ | 3,777 | ||||||
Operating expenses: | ||||||||||||||
Cost of service revenue | $ | 127 | $ | 137 | $ | 159 | $ | 355 | ||||||
Research and development | $ | 999 | $ | 1,090 | $ | 1,178 | $ | 3,697 |
Discontinued_Operations_Busine1
Discontinued Operations - Business Divestiture (Tables) | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Discontinued Operations - Business Divestiture | ' | ||||||||||
Schedule of carrying amount of major classes of assets and liabilities relating to the discontinued operations | ' | ||||||||||
The following table presents the carrying amount of major classes of assets and liabilities relating to the discontinued operations as of March 31, 2013 (in thousands): | |||||||||||
March 31, 2013 | |||||||||||
Assets: | |||||||||||
Account receivables, net | $ | 411 | |||||||||
Total current assets of discontinued operations | $ | 411 | |||||||||
Property and equipment, net | $ | 92 | |||||||||
Goodwill | 13,473 | ||||||||||
Total noncurrent assets of discontinued operations | $ | 13,565 | |||||||||
Liabilities: | |||||||||||
Accrued liabilities | $ | 55 | |||||||||
Deferred revenue | 3,393 | ||||||||||
Total current liabilities of discontinued operations | $ | 3,448 | |||||||||
Long-term liabilties | $ | 34 | |||||||||
Total long-term liabilities of discontinued operations | $ | 34 | |||||||||
Schedule of revenues and components of income from discontinued operations, net of tax, attributable to the entity's stockholders | ' | ||||||||||
The financial results of the discontinued operations for the years ended March 31, 2014, 2013 and 2012, were as follows (in thousands): | |||||||||||
For the Years Ended March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenue of discontinued operations | $ | 5,821 | $ | 9,063 | $ | 9,517 | |||||
Income from discontinued operations | 3,231 | 5,422 | 5,811 | ||||||||
Income tax expense | 590 | 2,089 | 2,266 | ||||||||
Income from discontinued operations, net of tax | 2,641 | 3,333 | 3,545 | ||||||||
Gain on sale of discontinued operations | 9,926 | — | — | ||||||||
Income tax expense | 4,008 | — | — | ||||||||
Gain on sale of discontinued operations, net of tax | 5,918 | — | — | ||||||||
Total income from discontinued operations | $ | 8,559 | $ | 3,333 | $ | 3,545 |
Business_Acquisition_Tables
Business Acquisition (Tables) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Business Acquisition | ' | |||||||
Schedule of total purchase price consideration | ' | |||||||
Total consideration to acquire Storycode was approximately $5.6 million and comprised of the following (in thousands): | ||||||||
Fair value of common stock issued at closing | $ | 3,285 | ||||||
Fair value of common stock issuable-subject to the 18-month holdback | 861 | |||||||
Fair value of stock options assumed | 949 | |||||||
Cash consideration paid | 499 | |||||||
Total purchase price | $ | 5,594 | ||||||
Schedule of estimated fair value of the stock options determined using a Black Scholes option valuation model | ' | |||||||
Options | ||||||||
Assumed and | ||||||||
Unearned | ||||||||
Volatility | 60%-85% | |||||||
Annual risk-free rate | 0.09%-0.40% | |||||||
Expected life (in years) | 0.5-3.04 | |||||||
Dividend yield | 0% | |||||||
Schedule of the allocation of the purchase price to the acquired net assets based on estimated fair values as of the acquisition date and the associated estimated useful lives | ' | |||||||
Allocation of purchase price (in thousands): | ||||||||
Amount | Useful Life | |||||||
(years) | ||||||||
Identifiable intangible assets: | ||||||||
Trade and Domain Names | $ | 80 | 10 | |||||
Technology | 530 | 7 | ||||||
Goodwill | 5,268 | N/A | ||||||
Net tangible liabilities | (284 | ) | N/A | |||||
Total estimated purchase price allocation | $ | 5,594 | ||||||
Schedule of pro forma results | ' | |||||||
For the Years Ended March 31, | ||||||||
2013 | 2012 | |||||||
(In thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Net revenue | $ | 4,767 | $ | 5,074 | ||||
Net loss | $ | (4,181 | ) | $ | (4,264 | ) | ||
Net loss per basic and diluted share | $ | (0.15 | ) | $ | (0.15 | ) | ||
Property_Furniture_and_Equipme1
Property, Furniture and Equipment (Tables) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Furniture and Equipment | ' | |||||||
Schedule of property, furniture and equipment | ' | |||||||
Property, furniture and equipment at March 31 consisted of (in thousands): | ||||||||
2014 | 2013 | |||||||
Land and buildings | $ | 713 | $ | 652 | ||||
Office equipment, furniture and fixtures | 4,641 | 4,556 | ||||||
Total | 5,354 | 5,208 | ||||||
Accumulated depreciation | (4,779 | ) | (4,749 | ) | ||||
Property, furniture and equipment, net | $ | 575 | $ | 459 |
Goodwill_and_intangible_assets1
Goodwill and intangible assets (Tables) | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Goodwill and intangible assets | ' | ||||||||||
Schedule of Goodwill | ' | ||||||||||
Goodwill as of March 31, 2014 and 2013 was as follows (in thousands): | |||||||||||
2013 | Divestiture | 2014 | |||||||||
Goodwill | $ | 31,656 | $ | (13,473 | ) | $ | 18,183 | ||||
Schedule of intangible assets subject to amortization | ' | ||||||||||
Intangible assets subject to amortization at March 31, 2014 and 2013 were as follows (in thousands): | |||||||||||
March 31, 2014 | |||||||||||
Cost | Accumulated | Net | |||||||||
Amortization | |||||||||||
Purchased Trade and Domain Names | $ | 80 | $ | (10 | ) | $ | 70 | ||||
Purchased Technology | 530 | (90 | ) | 440 | |||||||
Total purchased intangible assets | $ | 610 | $ | (100 | ) | $ | 510 | ||||
March 31, 2013 | |||||||||||
Cost | Accumulated | Net | |||||||||
Amortization | |||||||||||
Purchased Trade and Domain Names | $ | 80 | $ | (2 | ) | $ | 78 | ||||
Purchased Technology | 530 | (15 | ) | 515 | |||||||
Total purchased intangible assets | $ | 610 | $ | (17 | ) | $ | 593 | ||||
Schedule of amortization expense in future periods | ' | ||||||||||
Purchased intangible assets are amortized over their estimated useful lives of seven and ten years. At March 31, 2014, expected future amortization expense is as follows (in thousands): | |||||||||||
Years Ending March 31, | Intangible | ||||||||||
assets | |||||||||||
2015 | $ | 84 | |||||||||
2016 | 84 | ||||||||||
2017 | 84 | ||||||||||
2018 | 84 | ||||||||||
2019 and thereafter | 174 | ||||||||||
Total expected amortization expense | $ | 510 |
Stockholders_Equity_Tables
Stockholder's Equity (Tables) | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Stockholder's Equity | ' | |||||||||||||
Schedule of assumptions used in estimating the fair value of stock options and ESPP purchase rights | ' | |||||||||||||
Years Ended March 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
ESPP | ESPP | ESPP | ||||||||||||
Stock | purchase | Stock | purchase | Stock | purchase | |||||||||
options | rights | options | rights | options | rights | |||||||||
Expected term | 5.67 Years | 0.5 Years | 5.0 Years | 0.5 Years | 5.3 Years | 0.5 Years | ||||||||
Expected volatility | 77 | % | 76 | % | 71 | % | 73 | % | 75 | % | 72 | % | ||
Risk-free interest rate | 1.56 | % | 0.08 | % | 0.74 | % | 0.13 | % | 1.25 | % | 0.13 | % | ||
Dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||
Schedule of total stock-based compensation expense | ' | |||||||||||||
Total stock-based compensation expense included in the consolidated statements of comprehensive loss is as follows (in thousands): | ||||||||||||||
Twelve Months Ended March 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Cost of service revenue | $ | 39 | $ | 3 | $ | 6 | ||||||||
Operating expense: | ||||||||||||||
Selling and marketing | 347 | 179 | 312 | |||||||||||
Research and development | 285 | 250 | 368 | |||||||||||
General and administrative | 410 | 487 | 395 | |||||||||||
Total stock-based compensation expense | 1,081 | 919 | 1,081 | |||||||||||
Income tax benefit | — | — | — | |||||||||||
Net stock-based compensation expense | $ | 1,081 | $ | 919 | $ | 1,081 | ||||||||
Schedule of stock option activity | ' | |||||||||||||
Number of Shares | Weighted | Weighted | Aggregate | |||||||||||
Average Exercise | Average | Intrinsic Value | ||||||||||||
Price | Remaining | |||||||||||||
Contractual | ||||||||||||||
Term in Years | ||||||||||||||
Options outstanding as of March 31, 2011 | 2,534,226 | $ | 3.32 | 5.9 | $ | 3,374,573 | ||||||||
Granted | 1,349,500 | $ | 3.64 | |||||||||||
Exercised | (43,640 | ) | $ | 1.99 | ||||||||||
Forfeited | (385,140 | ) | $ | 3.89 | ||||||||||
Expired | (328,769 | ) | $ | 4.21 | ||||||||||
Options outstanding as of March 31, 2012 | 3,126,177 | $ | 3.31 | 6.4 | $ | 91,005 | ||||||||
Granted | 942,000 | $ | 2.07 | |||||||||||
Increase due to acquisition of Storycode | 822,320 | $ | 0.7 | |||||||||||
Exercised | (17,770 | ) | $ | 1.37 | ||||||||||
Forfeited | (157,586 | ) | $ | 2.58 | ||||||||||
Expired | (547,248 | ) | $ | 3.45 | ||||||||||
Options outstanding as of March 31, 2013 | 4,167,893 | $ | 2.53 | 6.4 | $ | 1,013,910 | ||||||||
Granted | 1,103,016 | $ | 1.87 | |||||||||||
Exercised | (223,866 | ) | $ | 0.71 | ||||||||||
Forfeited | (684,378 | ) | $ | 2.85 | ||||||||||
Expired | (953,232 | ) | $ | 2.38 | ||||||||||
Options outstanding as of March 31, 2014 | 3,409,433 | $ | 2.41 | 7 | $ | 221,097 | ||||||||
Vested and expected to vest at March 31, 2014 | 3,273,226 | $ | 2.44 | 6.9 | $ | 212,718 | ||||||||
Exercisable at March 31, 2014 | 2,269,548 | $ | 2.68 | 6 | $ | 127,048 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of geographical breakdown of its income (loss) from continuing operations before provision for income taxes | ' | ||||||||||
Years Ended March 31, | |||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||
Current | |||||||||||
Domestic | $ | (11,580 | ) | $ | (8,044 | ) | $ | (8,994 | ) | ||
Foreign | 351 | (243 | ) | (266 | ) | ||||||
Loss before provision for taxes | $ | (11,229 | ) | $ | (8,287 | ) | $ | (9,260 | ) | ||
Schedule of components of the provision for income taxes | ' | ||||||||||
Years Ended March 31, | |||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||
Current | |||||||||||
Federal | $ | — | $ | — | $ | — | |||||
State | — | — | — | ||||||||
Foreign | 123 | 76 | 69 | ||||||||
Total current provision | 123 | 76 | 69 | ||||||||
Deferred | |||||||||||
Federal | (3,495 | ) | (1,829 | ) | (1,924 | ) | |||||
State | (600 | ) | (200 | ) | (242 | ) | |||||
Foreign | 7 | (59 | ) | (71 | ) | ||||||
Total deferred provision | (4,088 | ) | (2,088 | ) | (2,237 | ) | |||||
Total | $ | (3,965 | ) | $ | (2,012 | ) | $ | (2,168 | ) | ||
Schedule of reconciliations of the provisions for income taxes at the statutory rates to the Company's provisions for income taxes | ' | ||||||||||
2014 | 2013 | 2012 | |||||||||
Expected U.S. Federal tax expense (benefit) | (34.0 | )% | (34.0 | )% | (34.0 | )% | |||||
State taxes | (3.5 | )% | (3.7 | )% | (4.3 | )% | |||||
Foreign taxes | 0.4 | % | 0.9 | % | 0.7 | % | |||||
Change in valuation allowance | — | % | 13.6 | % | 13 | % | |||||
Research and experimentation credit | — | % | (2.9 | )% | (1.2 | )% | |||||
Stock-based compensation expense | 1.6 | % | 1.7 | % | 2.3 | % | |||||
Other | 0.1 | % | 0.1 | % | 0.1 | % | |||||
Actual effective tax rate | (35.4 | )% | (24.3 | )% | (23.4 | )% | |||||
Schedule of significant components of the net deferred tax assets | ' | ||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||||
Net operating loss carryforwards | $ | 9,583 | $ | 15,926 | $ | 17,572 | |||||
Accruals and allowances recognized in different periods | 408 | 323 | 373 | ||||||||
Research and experimentation credit carryforwards | 5,852 | 5,438 | 5,013 | ||||||||
Property and equipment | 50 | 73 | 109 | ||||||||
Stock-based compensation expense | 1,410 | 1,225 | 855 | ||||||||
Total deferred assets | 17,303 | 22,985 | 23,922 | ||||||||
Less valuation allowance | (16,844 | ) | (22,387 | ) | (23,532 | ) | |||||
Total deferred assets | 459 | 598 | 390 | ||||||||
Deferred tax liabilities: | |||||||||||
Currency translation adjustment | (127 | ) | (125 | ) | (129 | ) | |||||
Intangibles | (193 | ) | (224 | ) | — | ||||||
Net deferred tax asset | $ | 139 | $ | 249 | $ | 261 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments and Contingencies. | ' | ||||
Schedule of future minimum lease payments under noncancelable operating leases with initial or remaining lease terms in excess of one year | ' | ||||
Future minimum lease payments under noncancelable operating leases with initial or remaining lease terms in excess of one year as of March 31, 2014 are as follows (in thousands): | |||||
Years Ending March 31, | Operating | ||||
Leases | |||||
2015 | $ | 513 | |||
2016 | 438 | ||||
2017 | 230 | ||||
2018 | 112 | ||||
2019 and thereafter | 109 | ||||
Total minimum lease payments | $ | 1,402 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Segment Information | ' | ||||||||||
Summary of consolidated financial information of the Company's operations by geographic location | ' | ||||||||||
The following table summarizes consolidated financial information of the Company’s operations by geographic location (in thousands): | |||||||||||
Years Ended March 31, | |||||||||||
Net revenue | 2014 | 2013 | 2012 | ||||||||
United States | $ | 2,779 | $ | 1,471 | $ | 1,235 | |||||
Europe | 2,711 | 2,306 | 2,594 | ||||||||
Total | $ | 5,490 | $ | 3,777 | $ | 3,829 | |||||
March 31, | |||||||||||
Long-lived assets | 2014 | 2013 | |||||||||
United States | $ | 18,928 | $ | 18,941 | |||||||
Europe | 413 | 405 | |||||||||
Total | $ | 19,341 | $ | 19,346 | |||||||
Schedule of the Company's net revenue by product line | ' | ||||||||||
The following table represents the Company’s net revenue by product line (in thousands): | |||||||||||
Years Ended March 31, | |||||||||||
Net revenue | 2014 | 2013 | 2012 | ||||||||
RAD Software Tools | $ | 3,803 | $ | 3,499 | $ | 3,807 | |||||
Social and Mobile Platform | 1,687 | 278 | 22 | ||||||||
Total | $ | 5,490 | $ | 3,777 | $ | 3,829 |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accrued Liabilities | ' | |||||||
Schedule of components of accrued liabilities | ' | |||||||
Components of accrued liabilities at March 31 are as follows (in thousands): | ||||||||
2014 | 2013 | |||||||
Payroll and related costs | $ | 825 | $ | 853 | ||||
Professional fees | 63 | 33 | ||||||
Taxes | 11 | 101 | ||||||
Pension | 35 | 46 | ||||||
Revenue sharing agreement | 750 | — | ||||||
Other | 208 | 207 | ||||||
Total accrued liabilities | $ | 1,892 | $ | 1,240 |
Reclassification_Adjustment_De
Reclassification Adjustment (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Licenses | $591 | $616 | $649 | $2,264 | $2,090 | $2,153 |
Services | 851 | 901 | 718 | 3,226 | 1,687 | 1,676 |
Total net revenues | 1,442 | 1,517 | 1,367 | 5,490 | 3,777 | 3,829 |
Operating expenses: | ' | ' | ' | ' | ' | ' |
Cost of service revenues | 159 | 137 | 127 | 638 | 355 | 356 |
Research and development | 1,178 | 1,090 | 999 | 4,441 | 3,698 | 4,574 |
Originally reported: | ' | ' | ' | ' | ' | ' |
Licenses | 912 | 937 | 913 | ' | ' | ' |
Services | 530 | 580 | 454 | ' | ' | ' |
Total net revenues | 1,442 | 1,517 | 1,367 | ' | ' | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' |
Cost of service revenues | 103 | 106 | 100 | ' | ' | ' |
Research and development | 1,234 | 1,121 | 1,026 | ' | ' | ' |
Restatement adjustment | ' | ' | ' | ' | ' | ' |
Licenses | ' | ' | ' | ' | -237,000 | ' |
Services | ' | ' | ' | ' | 237,000 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' |
Cost of service revenues | ' | ' | ' | ' | 108,000 | ' |
Research and development | ' | ' | ' | ' | ($109,000) | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Mar. 31, 2014 | |
Trade accounts receivable | ' |
Period of past due balances which are reviewed individually for collectability | '60 days |
Property, Furniture and Equipment | Minimum | ' |
Property, Furniture and Equipment | ' |
Estimated useful lives of the assets | '2 years |
Property, Furniture and Equipment | Maximum | ' |
Property, Furniture and Equipment | ' |
Estimated useful lives of the assets | '5 years |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Foreign Currency Translation | ' | ' | ' |
Percentage of revenue generated through offices located outside of the United States | 49.00% | 61.00% | 68.00% |
Stock options | ' | ' | ' |
Net Loss Per Share: | ' | ' | ' |
Outstanding options and contingently issuable shares not included in the computation of diluted loss per share because of anti-dilutive effect | 3,758,426 | 4,612,361 | 3,126,177 |
Discontinued_Operations_Busine2
Discontinued Operations - Business Divestiture (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Assets: | ' | ' | ' |
Total current assets of discontinued operations | ' | $411,000 | ' |
Total noncurrent liabilities of discontinued operations | ' | 13,565,000 | ' |
Liabilities: | ' | ' | ' |
Total current liabilities of discontinued operations | ' | 3,448,000 | ' |
Total non-current liabilities of discontinued operations | ' | 34,000 | ' |
Receivable from sale of MDMS business | 2,200,000 | ' | ' |
Financial results of the discontinued operations | ' | ' | ' |
Income from discontinued operations, net of tax | 2,641,000 | 3,333,000 | 3,545,000 |
Gain on sale of discontinued operations | 9,926,000 | ' | ' |
Gain on sale of discontinued operations, net of tax | 5,918,000 | ' | ' |
Income from discontinued operations | 8,559,000 | 3,333,000 | 3,545,000 |
MDMS Business | ' | ' | ' |
Business Divestiture | ' | ' | ' |
Proceeds from sale of business | 22,000,000 | ' | ' |
Amount received at closing | 19,800,000 | ' | ' |
Amount deposited with third party escrow agent | 2,200,000 | ' | ' |
Period of escrow deposit | '12 months | ' | ' |
Area of office space under lease (in square feet) | 15,000 | ' | ' |
Assets: | ' | ' | ' |
Account receivables, net | ' | 411,000 | ' |
Total current assets of discontinued operations | ' | 411,000 | ' |
Property and equipment, net | ' | 92,000 | ' |
Goodwill | ' | 13,473,000 | ' |
Total noncurrent liabilities of discontinued operations | ' | 13,565,000 | ' |
Liabilities: | ' | ' | ' |
Accrued liabilities | ' | 55,000 | ' |
Deferred revenues | ' | 3,393,000 | ' |
Total current liabilities of discontinued operations | ' | 3,448,000 | ' |
Non current liabilities | ' | 34,000 | ' |
Total non-current liabilities of discontinued operations | ' | 34,000 | ' |
Financial results of the discontinued operations | ' | ' | ' |
Revenue of discontinued operations | 5,821,000 | 9,063,000 | 9,517,000 |
Total income from discontinued operations | 3,231,000 | 5,422,000 | 5,811,000 |
Income tax expense | 590,000 | 2,089,000 | 2,266,000 |
Income from discontinued operations, net of tax | 2,641,000 | 3,333,000 | 3,545,000 |
Gain on sale of discontinued operations | 9,926,000 | ' | ' |
Income tax expense | 4,008,000 | ' | ' |
Gain on sale of discontinued operations, net of tax | 5,918,000 | ' | ' |
Income from discontinued operations | $8,559,000 | $3,333,000 | $3,545,000 |
Business_Acquisition_Details
Business Acquisition (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Jan. 17, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Jan. 17, 2013 | Jan. 17, 2013 | Jan. 17, 2013 | Jan. 17, 2013 | Jan. 17, 2013 | |
Storycode | Storycode | Storycode | Storycode | Storycode | Storycode | Storycode | Storycode | ||||
Trade and domain names | Technology | Options Assumed and Unearned | Options Assumed and Unearned | Options Assumed and Unearned | |||||||
Minimum | Maximum | ||||||||||
Business acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued in accordance with the agreement | ' | ' | ' | 1,696,329 | ' | ' | ' | ' | ' | ' | ' |
Fair value of the shares issued | ' | ' | ' | $3,300,000 | ' | ' | ' | ' | ' | ' | ' |
Additional shares issuable subject to holdback | ' | ' | ' | 444,468 | ' | ' | ' | ' | ' | ' | ' |
Fair value of the shares additional shares issuable subject to holdback | ' | ' | ' | 861,000 | ' | ' | ' | ' | ' | ' | ' |
Holdback period | ' | ' | ' | '18 months | ' | ' | ' | ' | ' | ' | ' |
Number of options substituted to purchase acquiree common stock | ' | ' | ' | 822,320 | ' | ' | ' | ' | ' | ' | ' |
Purchase price consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of common stock issued at closing | ' | ' | ' | 3,285,000 | ' | ' | ' | ' | ' | ' | ' |
Fair value of common stock issuable -subject to the 18-month holdback | ' | ' | ' | 861,000 | ' | ' | ' | ' | ' | ' | ' |
Fair value of stock options assumed | ' | ' | ' | 949,000 | ' | ' | ' | ' | ' | ' | ' |
Cash consideration paid | ' | ' | ' | 499,000 | ' | ' | ' | ' | ' | ' | ' |
Total estimated purchase price allocation | ' | ' | ' | 5,594,000 | ' | ' | ' | ' | ' | ' | ' |
Fair value of shares issued and issuable (in dollars per share) | ' | ' | ' | $2.28 | ' | ' | ' | ' | ' | ' | ' |
Period of lock up agreement | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of the common stock after adjustment related to lock up agreement (in dollars per share) | ' | ' | ' | $1.94 | ' | ' | ' | ' | ' | ' | ' |
Direct acquisition costs | 497,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition related costs | 209,000 | 288,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option conversion ratio | ' | ' | ' | 0.43085 | ' | ' | ' | ' | ' | ' | ' |
Stock options assumed (in shares) | ' | ' | ' | 1,908,583 | ' | ' | ' | ' | ' | ' | ' |
Stock options converted (in shares) | ' | ' | ' | 822,320 | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 1,081,000 | 919,000 | 1,081,000 | 393,000 | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | 85.00% |
Annual risk-free rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.09% | 0.40% |
Expected life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | '3 years 14 days |
Dividend yield (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' |
Estimated purchase price allocation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Identifiable intangible assets | ' | ' | ' | ' | ' | ' | 80,000 | 530,000 | ' | ' | ' |
Goodwill | 18,183,000 | 18,183,000 | ' | 5,268,000 | ' | ' | ' | ' | ' | ' | ' |
Net tangible liabilities | ' | ' | ' | -284,000 | ' | ' | ' | ' | ' | ' | ' |
Total estimated purchase price allocation | ' | ' | ' | 5,594,000 | ' | ' | ' | ' | ' | ' | ' |
Useful life (years) | ' | ' | ' | ' | ' | ' | '10 years | '7 years | ' | ' | ' |
Additional disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' |
Discount rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' |
Accounts payable included in net tangible liabilities | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' |
Accrued liabilities included in net tangible liabilities | ' | ' | ' | 178,000 | ' | ' | ' | ' | ' | ' | ' |
Cash included in net tangible assets | ' | ' | ' | 9,000 | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable included in net tangible liabilities | ' | ' | ' | 184,000 | ' | ' | ' | ' | ' | ' | ' |
Deferred tax assets included in the net intangible assets | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' |
Pro Forma Results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | 4,767,000 | 5,074,000 | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | ($4,181,000) | ($4,264,000) | ' | ' | ' | ' | ' |
Net loss per basic and diluted share (in dollars per share) | ' | ' | ' | ' | ($0.15) | ($0.15) | ' | ' | ' | ' | ' |
Fair_Value_Measurement_Details
Fair Value Measurement (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Fair Value Measurement | ' | ' |
Cash equivalents | $0 | $0 |
Nonrecurring | Nonfinancial assets or liabilities | ' | ' |
Fair value measurement | ' | ' |
Assets, fair value | 0 | 0 |
Liabilities, fair value | $0 | $0 |
Property_Furniture_and_Equipme2
Property, Furniture and Equipment (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Property, furniture and equipment | ' | ' | ' |
Total | $5,354,000 | $5,208,000 | ' |
Accumulated depreciation | -4,779,000 | -4,749,000 | ' |
Property, furniture and equipment, net | 575,000 | 459,000 | ' |
Depreciation of long-lived assets | 97,000 | 111,000 | 143,000 |
Land and buildings | ' | ' | ' |
Property, furniture and equipment | ' | ' | ' |
Total | 713,000 | 652,000 | ' |
Office equipment, furniture and fixtures | ' | ' | ' |
Property, furniture and equipment | ' | ' | ' |
Total | $4,641,000 | $4,556,000 | ' |
Goodwill_and_intangible_assets2
Goodwill and intangible assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Goodwill | ' | ' | ' |
Balance at the beginning of the period | $18,183 | ' | ' |
Divestiture | -13,473 | ' | ' |
Balance at the end of the period | 18,183 | 18,183 | ' |
Purchased Intangible assets | ' | ' | ' |
Purchased intangible asset amortization | 83 | 17 | 0 |
Purchased intangible asset subject to amortization | ' | ' | ' |
Cost | 610 | 610 | ' |
Accumulated Amortization | -100 | -17 | ' |
Net | 510 | 593 | ' |
Future amortization expenses | ' | ' | ' |
2015 | 84 | ' | ' |
2016 | 84 | ' | ' |
2017 | 84 | ' | ' |
2018 | 84 | ' | ' |
2019 and thereafter | 174 | ' | ' |
Net | 510 | 593 | ' |
Minimum | ' | ' | ' |
Purchased intangible asset subject to amortization | ' | ' | ' |
Useful life | '7 years | ' | ' |
Maximum | ' | ' | ' |
Purchased intangible asset subject to amortization | ' | ' | ' |
Useful life | '10 years | ' | ' |
Purchased Trade and Domain Names | ' | ' | ' |
Purchased intangible asset subject to amortization | ' | ' | ' |
Cost | 80 | 80 | ' |
Accumulated Amortization | -10 | -2 | ' |
Net | 70 | 78 | ' |
Future amortization expenses | ' | ' | ' |
Net | 70 | 78 | ' |
Purchased Technology | ' | ' | ' |
Purchased intangible asset subject to amortization | ' | ' | ' |
Cost | 530 | 530 | ' |
Accumulated Amortization | -90 | -15 | ' |
Net | 440 | 515 | ' |
Future amortization expenses | ' | ' | ' |
Net | $440 | $515 | ' |
Stockholders_Equity_Details
Stockholder's Equity (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Feb. 28, 2012 | Mar. 31, 2014 | Mar. 31, 2014 |
Stock options | Stock options | Stock options | ESPP | ESPP | ESPP | 2001 Plan | 2001 Plan | 2001 Plan | |||
item | |||||||||||
Stockholder's Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Series A convertible preferred stock authorized (in shares) | 5,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Series A convertible preferred stock issued (in shares) | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Series A convertible preferred stock outstanding (in shares) | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued (in shares) | 30,117,234 | 29,931,248 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock outstanding (in shares) | 30,117,234 | 29,931,248 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholder's Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual automatic share reserve increase, percentage of outstanding shares on the last day of the fiscal year (as a percent) | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum increase in the number of shares reserved for issuance | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Annual share reserve increase (in shares) | ' | ' | 903,517 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares available for issuance | ' | ' | 4,942,242 | ' | ' | 1,000,000 | ' | ' | ' | 1,000,000 | 1,000,000 |
Term of awards | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' |
Duration of offer periods | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' |
Minimum employee contribution as percentage of compensation | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' |
Maximum employee contribution as percentage of compensation | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' |
Maximum employee contribution per calendar year | ' | ' | ' | ' | ' | $21,250 | ' | ' | ' | ' | ' |
Maximum number of shares that an individual employee can purchase per offer period | ' | ' | ' | ' | ' | 1,500 | ' | ' | ' | ' | ' |
Percentage of the market value of a share of common stock at which employees are able to purchase the stock | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' |
Term limit of the plan to be eliminated according to the amendment | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Minimum number of hours per week for which an employee must work to be able to participate in the Stock Purchase Plan, before amendment | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' |
Minimum number of hours per week for which an employee must work to be able to participate in the Stock Purchase Plan, after amendment | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' |
Number of shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,231 | 713,961 |
Assumptions used to estimate the fair value of stock options and ESPP purchase rights: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | '5 years 8 months 1 day | '5 years | '5 years 3 months 18 days | '6 months | '6 months | '6 months | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | 77.00% | 71.00% | 75.00% | 76.00% | 73.00% | 72.00% | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | ' | 1.56% | 0.74% | 1.25% | 0.08% | 0.13% | 0.13% | ' | ' | ' |
Dividend yield (as a percent) | ' | ' | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ' | ' | ' |
Stockholders_Equity_Details_2
Stockholder's Equity (Details 2) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Stock-based compensation expense | ' | ' | ' |
Total stock-based compensation expense | $1,081,000 | $919,000 | $1,081,000 |
Net stock-based compensation expense | 1,081,000 | 919,000 | 1,081,000 |
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | 1,400,000 | ' | ' |
Period for recognition of total unrecognized compensation cost | '2 years 2 months 12 days | ' | ' |
Discontinued operations | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' |
Total stock-based compensation expense | 212,000 | 130,000 | 199,000 |
Cost of service revenue | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' |
Total stock-based compensation expense | 39,000 | 3,000 | 6,000 |
Selling and marketing | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' |
Total stock-based compensation expense | 347,000 | 179,000 | 312,000 |
Research and development | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' |
Total stock-based compensation expense | 285,000 | 250,000 | 368,000 |
General and administrative | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' |
Total stock-based compensation expense | $410,000 | $487,000 | $395,000 |
Stockholders_Equity_Details_3
Stockholder's Equity (Details 3) (Stock options, USD $) | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | |
Stock options | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 4,167,893 | 3,126,177 | 2,534,226 | ' |
Granted (in shares) | 1,103,016 | 942,000 | 1,349,500 | ' |
Increase due to acquisition of Storycode (in shares) | ' | 822,320 | ' | ' |
Exercised (in shares) | -223,866 | -17,770 | -43,640 | ' |
Forfeited (in shares) | -684,378 | -157,586 | -385,140 | ' |
Expired (in shares) | -953,232 | -547,248 | -328,769 | ' |
Outstanding at the end of the period (in shares) | 3,409,433 | 4,167,893 | 3,126,177 | 2,534,226 |
Vested and expected to vest at the end of the period (in shares) | 3,273,226 | ' | ' | ' |
Exercisable at the end of the period (in shares) | 2,269,548 | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $2.53 | $3.31 | $3.32 | ' |
Granted (in dollars per share) | $1.87 | $2.07 | $3.64 | ' |
Increase due to acquisition of Storycode (in dollars per share) | ' | $0.70 | ' | ' |
Exercised (in dollars per share) | $0.71 | $1.37 | $1.99 | ' |
Forfeited (in dollars per share) | $2.85 | $2.58 | $3.89 | ' |
Expired (in dollars per share) | $2.38 | $3.45 | $4.21 | ' |
Outstanding at the end of the period (in dollars per share) | $2.41 | $2.53 | $3.31 | $3.32 |
Vested and expected to vest at the end of the period (in dollars per share) | $2.44 | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | $2.68 | ' | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' |
Outstanding at the end of the period | '7 years | '6 years 4 months 24 days | '6 years 4 months 24 days | '5 years 10 months 24 days |
Vested and expected to vest at the end of the period | '6 years 10 months 24 days | ' | ' | ' |
Exercisable at the end of the period | '6 years | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars) | $221,097 | $1,013,910 | $91,005 | $3,374,573 |
Vested and expected to vest at the end of the period | 212,718 | ' | ' | ' |
Exercisable at the end of the period | 127,048 | ' | ' | ' |
Stock-based compensation, additional disclosure | ' | ' | ' | ' |
Aggregate intrinsic value of options exercised (in dollars) | $220,000 | $24,000 | $67,790 | ' |
Weighted average grant date fair value of awards granted (in dollars per share) | $1.23 | $1.30 | $1.98 | ' |
Stockholders_Equity_Details_4
Stockholder's Equity (Details 4) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
The Plan | ' | ' | ' |
Retirement Plans | ' | ' | ' |
Employer contribution as a percentage of participant's compensation | 4.00% | ' | ' |
Maximum employer contribution as a percentage of participant's compensation | 50.00% | ' | ' |
Discretionary annual contributions made to the Plan | $0 | $0 | $0 |
RDUKL Plan | ' | ' | ' |
Retirement Plans | ' | ' | ' |
Amount contributed by employer | $53,000 | $41,000 | $34,000 |
RDUKL Plan | Minimum | ' | ' | ' |
Retirement Plans | ' | ' | ' |
Employer contribution as a percentage of participant's compensation | 3.00% | ' | ' |
RDUKL Plan | Maximum | ' | ' | ' |
Retirement Plans | ' | ' | ' |
Employer contribution as a percentage of participant's compensation | 8.00% | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Income Taxes | ' | ' | ' |
Domestic | ($11,580,000) | ($8,044,000) | ($8,994,000) |
Foreign | 351,000 | -243,000 | -266,000 |
Loss before income taxes from continuing operations | -11,229,000 | -8,287,000 | -9,260,000 |
Current | ' | ' | ' |
Foreign | 123,000 | 76,000 | 69,000 |
Total current provision | 123,000 | 76,000 | 69,000 |
Deferred | ' | ' | ' |
Federal | -3,495,000 | -1,829,000 | -1,924,000 |
State | -600,000 | -200,000 | -242,000 |
Foreign | 7,000 | -59,000 | -71,000 |
Total deferred provision | -4,088,000 | -2,088,000 | -2,237,000 |
Total | -3,965,000 | -2,012,000 | -2,168,000 |
Reconciliation of the provisions for income taxes at the statutory rates to the Company's provisions for income taxes | ' | ' | ' |
Expected U.S. Federal tax expense (benefit) (as a percent) | -34.00% | -34.00% | -34.00% |
State taxes (as a percent) | -3.50% | -3.70% | -4.30% |
Foreign taxes (as a percent) | 0.40% | 0.90% | 0.70% |
Change in valuation allowance (as a percent) | ' | 13.60% | 13.00% |
Research and experimentation credit (as a percent) | ' | -2.90% | -1.20% |
Stock-based compensation expense (as a percent) | 1.60% | 1.70% | 2.30% |
Other (as a percent) | 0.10% | 0.10% | 0.10% |
Actual effective tax rate (as a percent) | -35.40% | -24.30% | -23.40% |
Deferred tax assets: | ' | ' | ' |
Net operating loss carryforwards | 9,583,000 | 15,926,000 | 17,572,000 |
Accruals and allowances recognized in different periods | 408,000 | 323,000 | 373,000 |
Research and experimentation credit carryforwards | 5,852,000 | 5,438,000 | 5,013,000 |
Property and equipment | 50,000 | 73,000 | 109,000 |
Stock-based compensation expense | 1,410,000 | 1,225,000 | 855,000 |
Total deferred tax assets | 17,303,000 | 22,985,000 | 23,922,000 |
Less valuation allowance | -16,844,000 | -22,387,000 | -23,532,000 |
Total deferred assets | 459,000 | 598,000 | 390,000 |
Deferred tax liabilities: | ' | ' | ' |
Currency translation adjustment | -127,000 | -125,000 | -129,000 |
Intangibles | -193,000 | -224,000 | ' |
Net deferred tax assets | 139,000 | 249,000 | 261,000 |
Additional disclosures | ' | ' | ' |
Decrease in valuation allowance | -5,500,000 | -1,200,000 | -1,000,000 |
Excess income tax benefits from stock option exercises | $0 | $0 | $0 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Operating loss carryforwards | ' |
Annual limitation on use of operating loss carryforwards | $0.20 |
U.S. Federal | ' |
Operating loss carryforwards | ' |
Net operating loss carryforwards | 27.6 |
Operating loss carryforwards amount in excess of recognized stock option compensation | 2.3 |
Operating loss carryforwards subject to an annual limitation | 1.4 |
State | ' |
Operating loss carryforwards | ' |
Net operating loss carryforwards | 1.8 |
Operating loss carryforwards amount in excess of recognized stock option compensation | 0.2 |
Operating loss carryforwards subject to an annual limitation | 1.4 |
Foreign | ' |
Operating loss carryforwards | ' |
Net operating loss carryforwards | $3.80 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Additional disclosure of unrecognized tax benefits | ' |
U.S. income or foreign tax withholding | $0 |
Tax credit carryforwards amount in excess of state excess tax benefits under the "with-and-without" approach | 0.1 |
U.S. Federal | ' |
Tax credit carryforwards | ' |
Tax credit carryforwards | 3.5 |
State | ' |
Tax credit carryforwards | ' |
Tax credit carryforwards | $3.60 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Income tax | ' | ' | ' |
Net tax expense | ($3,965,000) | ($2,012,000) | ($2,168,000) |
German tax authorities | ' | ' | ' |
Income tax | ' | ' | ' |
Net tax expense | ' | ' | $82,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Future minimum lease payments under noncancelable operating leases | ' | ' | ' |
2015 | $513,000 | ' | ' |
2016 | 438,000 | ' | ' |
2017 | 230,000 | ' | ' |
2018 | 112,000 | ' | ' |
2019 and thereafter | 109,000 | ' | ' |
Total minimum lease payments | 1,402,000 | ' | ' |
Rent expense | 708,000 | 805,000 | 813,000 |
Present value of the lease obligations | $467,000 | ' | ' |
Maximum duration of service warranties | '30 days | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
item | ||||||
Segment Information | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | 1 | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' |
Net revenue | $1,442 | $1,517 | $1,367 | $5,490 | $3,777 | $3,829 |
Long-lived assets | ' | ' | ' | 19,341 | 19,346 | ' |
United States | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | 2,779 | 1,471 | 1,235 |
Long-lived assets | ' | ' | ' | 18,928 | 18,941 | ' |
Europe | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | 2,711 | 2,306 | 2,594 |
Long-lived assets | ' | ' | ' | $413 | $405 | ' |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Net revenue by product line | ' | ' | ' | ' | ' | ' |
Net revenue | $1,442 | $1,517 | $1,367 | $5,490 | $3,777 | $3,829 |
RAD Software | ' | ' | ' | ' | ' | ' |
Net revenue by product line | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | 3,803 | 3,499 | 3,807 |
Social and Mobile Platform | ' | ' | ' | ' | ' | ' |
Net revenue by product line | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | $1,687 | $278 | $22 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued liabilities | ' | ' |
Payroll and related costs | $825 | $853 |
Professional fees | 63 | 33 |
Taxes | 11 | 101 |
Pension | 35 | 46 |
Revenue sharing agreement | 750 | ' |
Other | 208 | 207 |
Total accrued liabilities | $1,892 | $1,240 |