Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Mar. 31, 2015 | 31-May-15 | Sep. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | TigerLogic CORP | ||
Entity Central Index Key | 820738 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Mar-15 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -28 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $14,548,112 | ||
Entity Common Stock, Shares Outstanding | 30,955,697 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash | $10,251 | $18,602 |
Trade accounts receivable, less allowance for doubtful accounts of $0 in 2015 and $43 in 2014 | 1,291 | 934 |
Receivable from sale of MDMS business | 2,200 | |
Other current assets | 460 | 553 |
Total current assets | 12,002 | 22,289 |
Property, furniture and equipment, net | 869 | 575 |
Goodwill | 18,183 | |
Intangible assets, net | 363 | 510 |
Deferred tax assets | 94 | 109 |
Other assets | 54 | 73 |
Total assets | 13,382 | 41,739 |
Current liabilities: | ||
Accounts payable | 295 | 349 |
Accrued liabilities | 1,525 | 1,892 |
Deferred revenue | 1,905 | 1,599 |
Total current liabilities | 3,725 | 3,840 |
Other long-term liabilities | 101 | 122 |
Total liabilities | 3,826 | 3,962 |
Commitments and contingencies | ||
Stockholders' Equity And Earnings Per Share | ||
Series A convertible preferred stock: $1.00 par value; 5,000,000 shares authorized; none issued or outstanding at March 31, 2015 and 2014 | ||
Common stock: $0.10 par value; 100,000,000 shares authorized; 30,955,697 and 30,117,234 issued and outstanding as of March 31, 2015 and 2014, respectively | 3,096 | 3,012 |
Additional paid-in-capital | 143,389 | 142,848 |
Accumulated other comprehensive income | 2,174 | 2,360 |
Accumulated deficit | -139,103 | -110,443 |
Total stockholders' equity | 9,556 | 37,777 |
Total liabilities and stockholders' equity | $13,382 | $41,739 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Trade accounts receivable, allowance for doubtful accounts | $0 | $43 |
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 | $0.10 | $0.10 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 30,955,697 | 30,117,234 |
Common stock, shares outstanding | 30,955,697 | 30,117,234 |
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, 2015 | Mar. 31, 2014 |
Net revenues: | ||
Licenses | $2,274 | $2,264 |
Subscription | 2,365 | 1,157 |
Services | 2,354 | 2,069 |
Total net revenues | 6,993 | 5,490 |
Operating expenses: | ||
Cost of subscription revenues | 721 | 283 |
Cost of service revenues | 432 | 450 |
Cost of service revenues-revenue sharing settlement | 1,000 | |
Selling and marketing | 5,649 | 5,918 |
Research and development | 3,986 | 4,441 |
General and administrative | 6,653 | 4,350 |
Impairment of goodwill | 18,183 | |
Acquisition related costs | 209 | |
Total operating expenses | 35,624 | 16,651 |
Operating loss from continuing operations | -28,631 | -11,161 |
Other income (expense): | ||
Interest income (expense)-net | -3 | -6 |
Other income (expense)-net | 59 | -62 |
Total other income (expense)-net | 56 | -68 |
Loss before income taxes from continuing operations | -28,575 | -11,229 |
Income tax provision (benefit) | 85 | -3,965 |
Net loss from continuing operations | -28,660 | -7,264 |
Discontinued operations: | ||
Income from discontinued operations, net of tax | 2,641 | |
Gain on sale of discontinued operations, net of tax | 5,918 | |
Income from discontinued operations | 8,559 | |
Net income (loss) | -28,660 | 1,295 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | -186 | 103 |
Total comprehensive income (loss) | ($28,846) | $1,398 |
Basic and diluted net income (loss) per share: | ||
Loss from continuing operations (in dollars per share) | ($0.93) | ($0.24) |
Income from discontinued operations (in dollars per share) | $0.28 | |
Net income (loss) | ($0.93) | $0.04 |
Shares used in computing net loss from continuing operations per share, income from discontinued operations per share, and net income (loss) per share | 30,691 | 30,038 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net Income (loss) | ($28,660) | $1,295 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Gain on sale of discontinued operations | -9,926 | |
Impairment of goodwill | 18,183 | |
Depreciation and amortization of long-lived assets | 328 | 191 |
Provision for (recovery of) bad debt | -71 | 133 |
Stock-based compensation expense | 601 | 1,293 |
Change in deferred tax assets | 48 | 120 |
Foreign currency exchange gain | -42 | -46 |
Change in operating assets and liabilities, net of discontinued operations: | ||
Trade accounts receivable | -360 | -970 |
Other current assets | -33 | 138 |
Accounts payable | -32 | -98 |
Accrued liabilities | -434 | -633 |
Deferred revenue | 438 | 941 |
Net cash used in operating activities | -10,034 | -7,562 |
Cash flow from investing activities: | ||
Purchase of property, plant and equipment | -331 | -183 |
Proceeds from sale of discontinued operations | 19,800 | |
Net cash provided (used) by investing activities | -331 | 19,617 |
Cash flow from financing activities: | ||
Proceeds from exercise of stock options | 16 | 59 |
Proceeds from issuance of common stock | 11 | 37 |
Proceeds from sale of discontinued operations | 2,200 | |
Net cash provided by financing activities | 2,227 | 96 |
Effect of exchange rate changes on cash | -213 | -14 |
Net increase (decrease) in cash | -8,351 | 12,137 |
Cash at beginning of the period | 18,602 | 6,465 |
Cash at end of the period | 10,251 | 18,602 |
Supplemental disclosures: | ||
Cash paid for income taxes | $102 | $488 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total |
In Thousands, except Share data, unless otherwise specified | |||||
Balances at Mar. 31, 2013 | $2,993 | $141,478 | $2,257 | ($111,738) | $34,990 |
Balances (in shares) at Mar. 31, 2013 | 29,931,248 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock option and purchase plan issuances | 19 | 77 | 96 | ||
Stock option and purchase plan issuances (in shares) | 185,986 | ||||
Stock-based compensation | 1,293 | 1,293 | |||
Net Income (loss) | 1,295 | 1,295 | |||
Foreign currency translation adjustments | 103 | 103 | |||
Balances at Mar. 31, 2014 | 3,012 | 142,848 | 2,360 | -110,443 | 37,777 |
Balances (in shares) at Mar. 31, 2014 | 30,117,234 | 30,117,234 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Stock option and purchase plan issuances | 4 | 20 | 24 | ||
Stock option and purchase plan issuances (in shares) | 37,776 | ||||
Holdback shares issued for acquired business (no. of shares) | 800,687 | ||||
Holdback shares issued for acquired business | 80 | -80 | |||
Stock-based compensation | 601 | 601 | |||
Net Income (loss) | -28,660 | -28,660 | |||
Foreign currency translation adjustments | -186 | -186 | |||
Balances at Mar. 31, 2015 | $3,096 | $143,389 | $2,174 | ($139,103) | $9,556 |
Balances (in shares) at Mar. 31, 2015 | 30,955,697 | 30,955,697 |
Organization
Organization | 12 Months Ended |
Mar. 31, 2015 | |
Organization | |
Organization | 1. Organization |
TigerLogic Corporation’s (the “Company”) principal business is the design, development, sale, and support of rapid application development software known as Omnis and a hosted social media visualization platform known as Postano. The Company’s Omnis 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 Postano product line, which is sold as a subscription, is a real-time social media content aggregation, activation, and visualization platform used by our customers for fan engagement. In addition, 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 have been reclassified and presented as discontinued operations for all periods presented. See Note 3 for additional information related to the disposition of the MDMS Business. | |
Reclassifications. Certain reclassifications have been made to the 2014 financial statements and disclosures to conform to the current year presentation consisting of separating subscription revenues from other services revenue as well as related costs of the respective services. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2015 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. 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, we determine that the arrangement fee is not fixed or determinable, we defer the revenue and recognize the revenue when the arrangement fee becomes due and payable. We do not have price protection programs or conditional acceptance agreements, and sales of our products are made without right of return. | |
For contracts with multiple software and software-related elements, we recognize 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 our hosted software subscription arrangements, subscription revenue is recognized ratably over the subscription period. We also have professional 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, we allocate 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. When subscription arrangements involve multiple elements that do not qualify as separate units of accounting, the entire arrangement consideration is recognized over the subscription period. | |
We determine whether VSOE can be established based on our historical pricing and discounting practices for the specific deliverable when sold separately. In determining VSOE, we require that a substantial majority of the selling prices fall within a reasonably narrow pricing range. We have established VSOE for our PCS included in our software arrangements, but have not yet been able to establish VSOE for our subscription or other services. | |
When VSOE cannot be established for our subscription and other services, we apply judgment with respect to whether we can establish a selling price based on TPE. TPE is determined based on third party pricing practices for similar deliverables when sold separately. Generally, our pricing strategy differs from that of our peers and our offerings contain a significant level of differentiation such that the comparable pricing of services with similar functionality cannot be obtained. Furthermore, typically, we are unable to reliably determine what similar competitors services’ selling prices are on a stand-alone basis. As a result, we have not been able to establish selling prices based on TPE. | |
When we are unable to establish a selling price for our subscription and other services using VSOE or TPE, we use BESP in our allocation of arrangement consideration. The objective of BESP is to determine the price at which we would transact a sale if the respective elements were sold on a stand-alone basis. We estimate 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 our overall pricing practices. We currently use BESP in order to allocate the selling price to our deliverables in multiple element subscription arrangements. | |
Cost of Subscription and Service Revenue. Cost of subscription revenue is comprised of direct costs for Postano subscriptions associated with data center hosting and personnel costs relating to platform access, web embed displays, social content analytic reports and phone support. Cost of service revenue includes primarily personnel costs related to 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 reviews its allowance for doubtful accounts at least quarterly. 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. Except for our building in the United Kingdom, which is being depreciated over 50 years, all other assets are being amortized or depreciated between 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. | |
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. | |
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 4,200,094, and 3,758,426 outstanding options to purchase shares of the Company’s common stock and contingently issuable shares as of March 31, 2015 and 2014, 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 its products and services through its direct sales force, 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 foreign subsidiaries are translated at the exchange rate in effect at each period end. Income statement accounts are translated at the average rate of exchange for each period. 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). Beginning in December 2009, foreign exchange gains and losses on the outstanding intercompany balance denominated in the 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 39% and 49% of total revenue for the fiscal years ended March 31, 2015 and 2014, 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 financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Some of our accounting policies require us to make difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. These accounting policies involve critical accounting estimates because they are particularly dependent on estimates and assumptions made by management about matters that are highly uncertain at the time the accounting estimates are made. Although we have used our best estimates based on facts and circumstances available to us at the time, different estimates reasonably could have been used. Changes in the accounting estimates we use are reasonably likely to occur from time to time, which may have a material effect on the presentation of our financial condition and results of operations. Our most critical accounting estimates include revenue recognition, accounting for business combinations and goodwill and accounting for employee stock-based compensation. We review our estimates, judgments, and assumptions periodically and reflect the effects of revisions in the period in which they are deemed to be necessary. We believe that these estimates are reasonable; however, actual results could differ from these estimates. | |
Impairment of Goodwill and Other Long-Lived Assets. Long-lived assets, such as property, furniture, 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 or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. 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 or asset group. 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 Pronouncements. 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 permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU No. 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In April 2015, the FASB issued an exposure draft proposing to defer the effective date of this ASU for one year. The new standard is effective for our fiscal year 2018, or fiscal year 2019 if the effective date is deferred one year. | |
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360), which provides guidance for reporting discontinued operations and disclosures of disposals of components of an entity. This ASU affects an entity that has either a component that is disposed of or meets the criteria to be classified as held for sale. The core principle of the guidance is that a disposal of a component, or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift and has (or will have) a major effect on an entity’s operations and financial results. This standard is effective for annual reporting periods beginning after December 15, 2014, including interim periods within that reporting period (our fiscal year 2016). We do not expect the adoption of this ASU to have a material impact on our financial position and results of operations. | |
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). This ASU is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. We are evaluating the effect that ASU No. 2014-15 will have on our consolidated financial statements and related disclosures. | |
Discontinued_Operations_Busine
Discontinued Operations - Business Divestiture. | 12 Months Ended | ||||
Mar. 31, 2015 | |||||
Discontinued Operations - Business Divestiture | |||||
Discontinued Operations - Business Divestiture | 3. Discontinued Operations - Business Divestiture | ||||
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 $19.8 million was received at closing and the remaining $2.2 million was released from escrow and received in November 2014. As a result of this divestiture, the historical results of the MDMS Business have 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 runs through October 2015. Rocket 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). | |||||
Historical results of operations of the MDMS Business have been classified as discontinued operations. Income from discontinued operations for the fiscal year ended March 31, 2014 represents the results of operations of the MDMS Business prior to disposition. 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 received from escrow in November 2014. | |||||
The financial results of the discontinued operations for the year ended March 31, 2014 were as follows (in thousands): | |||||
For the Year | |||||
Ended March | |||||
31, 2014 | |||||
Revenue of discontinued operations | $ | 5,821 | |||
Income from discontinued operations | 3,231 | ||||
Income tax expense | 590 | ||||
Income from discontinued operations, net of tax | 2,641 | ||||
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 | |||
Storycode_Winddown
Storycode Winddown | 12 Months Ended |
Mar. 31, 2015 | |
Storycode Winddown | |
Storycode Winddown | 4. Storycode Winddown |
During the quarter ended December 31, 2014, the Company wound down its minor digital publishing services, referred to as Storycode Services, to focus its resources on the Postano and Omnis product lines. In connection with this decision, the Company entered into an Asset Purchase Agreement with two individuals (“Buyers”) who were previously employed by the Company to manage the Storycode Services. The Company assigned to Buyers all of the intellectual property rights related to the name “Storycode” and certain rights related thereto, and agreed to share certain accounts receivable related to the Storycode Services. Buyers and the Company also agreed to a mutual release of all claims against each other. As a result of assigning the “Storycode” name to Buyers, the Company wrote off the remaining balance of the intangible asset of approximately $65,000 related to the Storycode trade name. The Company retained the technology obtained as part of the acquisition of Storycode, Inc. in January 2013 that is currently being used in the Postano subscription and service offerings and approximately $250,000 of accounts receivable attributable to the Storycode Services, and assigned to Buyers approximately $230,000 of accounts receivable attributable to the Storycode Services, of which approximately $220,000 was remitted to Buyers in January 2015 after payments were received from customers. The Buyers are responsible for collecting the remaining $10,000 of outstanding accounts receivable. | |
Historically, Storycode Services revenues have not been significant and the Company does not expect any future revenues related to Storycode Services. | |
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended |
Mar. 31, 2015 | |
Fair Value Measurement | |
Fair Value Measurement | 5. 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, 2015 or 2014. 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, 2015 or 2014. | |
Property_Furniture_and_Equipme
Property, Furniture and Equipment | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Furniture and Equipment | ||||||||
Property, Furniture and Equipment | 6. Property, Furniture and Equipment | |||||||
Property, furniture and equipment at March 31 consisted of (in thousands): | ||||||||
2015 | 2014 | |||||||
Land and buildings | $ | 636 | $ | 713 | ||||
Office equipment, furniture and fixtures | 4,715 | 4,641 | ||||||
Total | 5,351 | 5,354 | ||||||
Accumulated depreciation | (4,482 | ) | (4,779 | ) | ||||
Property, furniture and equipment, net | $ | 869 | $ | 575 | ||||
Depreciation expense for the fiscal years ended March 31, 2015 and 2014 was approximately $182,000 and $97,000, respectively. During the fiscal year ended March 31, 2015, the Company disposed of approximately $70,000 in office equipment assets that were no longer in use resulting in a loss on disposal of approximately $20,000, which was included in depreciation expense. | ||||||||
Goodwill_and_intangible_assets
Goodwill and intangible assets | 12 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Goodwill and intangible assets | |||||||||||
Goodwill and intangible assets | 7. Goodwill and intangible assets | ||||||||||
The Company reviews goodwill and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. During the fiscal quarter ended December 31, 2014, the Company’s market capitalization fell below its net book value for an extended period of time. As a result, Company management conducted the first step of a goodwill impairment test as of December 31, 2014 with the assistance of an independent valuation consultant utilizing both a market capitalization approach, including an estimated control premium, as well as a discounted cash flow approach, with key assumptions including projected future cash flows and a risk-adjusted discount rate. Both approaches resulted in an estimated fair value of the Company’s reporting unit below net book value as of December 31, 2014. As such, the Company initiated the second step of the goodwill impairment test to measure the amount of impairment. The Company analyzed the fair value of certain assets including its developed technology, trade names, customer relationships, and property. Based on the work performed, the Company concluded that an impairment loss existed as of December 31, 2014 and, when measuring the amount of impairment loss, we determined that goodwill was fully impaired. Accordingly, the Company recorded a non-cash goodwill impairment charge to fully write-off the book value of its goodwill in the amount of approximately $18.2 million during the quarter ended December 31, 2014. Also, prior to performing the second step in the goodwill impairment analysis, the Company assessed long-lived assets including property and equipment and intangible assets for impairment. The Company’s conclusion was that such long-lived assets were not impaired as of December 31, 2014 or March 31, 2015. | |||||||||||
Goodwill as of March 31, 2015 and 2014 was as follows (in thousands): | |||||||||||
2014 | Impairment | 2015 | |||||||||
write off | |||||||||||
Goodwill | $ | 18,183 | $ | (18,183 | ) | $ | — | ||||
Intangible assets subject to amortization at March 31, 2015 and 2014 were as follows (in thousands): | |||||||||||
March 31, 2015 | |||||||||||
Cost | Accumulated | Net | |||||||||
Amortization/ | |||||||||||
Write off | |||||||||||
Purchased Trade and Domain Names | 80 | (80 | ) | $ | — | ||||||
Purchased Technology | 530 | (167 | ) | 363 | |||||||
Total purchased intangible assets | $ | 610 | $ | (247 | ) | $ | 363 | ||||
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 | ||||
Amortization expense related to purchased intangible assets for fiscal years 2015 and 2014 was approximately $146,000 and $83,000, respectively. During the fiscal year ended March 31, 2015, the Company wrote off the intangible asset related to Storycode’s tradename with a book value of approximately $65,000, which was included in amortization expense. See footnote 4 for more information regarding the Storycode winddown. | |||||||||||
Purchased intangible assets are amortized over their estimated useful lives of seven years. At March 31, 2015, expected future amortization expense is as follows (in thousands): | |||||||||||
Years Ending March 31, | Intangible | ||||||||||
assets | |||||||||||
2016 | $ | 76 | |||||||||
2017 | 76 | ||||||||||
2018 | 76 | ||||||||||
2019 | 76 | ||||||||||
2020 | 59 | ||||||||||
Total expected amortization expense | $ | 363 | |||||||||
Stockholders_Equity
Stockholder's Equity | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Stockholder's Equity | ||||||||||||
Stockholder's Equity | 8. 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, 2015 and 2014. | ||||||||||||
Common Stock | ||||||||||||
The Company had 100,000,000 shares of common stock authorized and 30,955,697 and 30,117,234 shares of common stock issued and outstanding as of March 31, 2015 and 2014, 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, 2015 was 928,670 shares. At March 31, 2015, the total number of shares available for issuance under the 2009 Plan was 4,370,481 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 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, 2015, 736,434 shares had been issued to employees under the ESPP. For the year ended March 31, 2015, 15,234 shares of common stock were issued under the ESPP. As of March 31, 2015, 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, | ||||||||||||
2015 | 2014 | |||||||||||
ESPP | ESPP | |||||||||||
Stock | purchase | Stock | purchase | |||||||||
options | rights | options | rights | |||||||||
Expected term | 5.57 | 0.5 Years | 5.67 Years | 0.5 Years | ||||||||
Expected volatility | 77 | % | 84 | % | 77 | % | 76 | % | ||||
Risk-free interest rate | 1.73 | % | 0.07 | % | 1.56 | % | 0.08 | % | ||||
Dividend yield | 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, | ||||||||||||
2015 | 2014 | |||||||||||
Cost of service revenue | $ | 23 | $ | 39 | ||||||||
Operating expense: | ||||||||||||
Selling and marketing | 53 | 347 | ||||||||||
Research and development | 114 | 285 | ||||||||||
General and administrative | 411 | 410 | ||||||||||
Total stock-based compensation expense | 601 | 1,081 | ||||||||||
Income tax benefit | — | — | ||||||||||
Net stock-based compensation expense | $ | 601 | $ | 1,081 | ||||||||
Excluded from the table above was stock-based compensation expense related to discontinued operations of approximately $212,000 for the year ended March 31, 2014. | ||||||||||||
As of March 31, 2015, there was approximately $1.4 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a weighted-average period of 3.0 years. | ||||||||||||
Stock option activity was as follows for fiscal year 2015: | ||||||||||||
Number of Shares | Weighted | Weighted | Aggregate | |||||||||
Average | Average | Intrinsic Value | ||||||||||
Exercise Price | Remaining | |||||||||||
Contractual | ||||||||||||
Term in Years | ||||||||||||
Options outstanding as of March 31, 2014 | 3,409,433 | $ | 2.41 | 7 | $ | 221,097 | ||||||
Granted | 3,203,000 | $ | 0.78 | |||||||||
Exercised | (22,542 | ) | $ | 0.7 | ||||||||
Forfeited | (1,305,036 | ) | $ | 1.27 | ||||||||
Expired | (654,033 | ) | $ | 2.4 | ||||||||
Options outstanding as of March 31, 2015 | 4,630,822 | $ | 1.61 | 7.6 | $ | 2,575 | ||||||
Vested and expected to vest at March 31, 2015 | 4,019,928 | $ | 1.75 | 7.3 | $ | 1,770 | ||||||
Exercisable at March 31, 2015 | 2,083,884 | $ | 2.59 | 5.3 | $ | — | ||||||
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 $16,000 and $220,000 for the years ended March 31, 2015 and 2014, 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, 2015 and 2014 were $0.52 and $1.23, 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, 2015 and 2014. | ||||||||||||
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 $50,000 and $53,000 to the TLUKL Plan for the years ended March 31, 2015 and 2014, respectively. | ||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Taxes | ||||||||
Income Taxes | 9. Income Taxes | |||||||
The Company’s geographical breakdown of its loss from continuing operations before provision for income taxes is as follows (in thousands): | ||||||||
Years Ended March 31, | ||||||||
2015 | 2014 | |||||||
Domestic | $ | (28,399 | ) | $ | (11,580 | ) | ||
Foreign | (176 | ) | 351 | |||||
Loss before provision for taxes | $ | (28,575 | ) | $ | (11,229 | ) | ||
The components of the provision for income taxes from continuing operations are as follows (in thousands): | ||||||||
Years Ended March 31, | ||||||||
2015 | 2014 | |||||||
Current | ||||||||
Federal | $ | 1 | $ | |||||
State | 1 | — | ||||||
Foreign | 97 | 123 | ||||||
Total current provision | $ | 99 | $ | 123 | ||||
Deferred | ||||||||
Federal | — | (3,495 | ) | |||||
State | — | (600 | ) | |||||
Foreign | (14 | ) | 7 | |||||
Total deferred provision | (14 | ) | (4,088 | ) | ||||
Total | $ | 85 | $ | (3,965 | ) | |||
Reconciliations of the provisions for income taxes from continuing operations at the statutory rates to the Company’s provisions for income taxes from continuing operations are as follows: | ||||||||
For the years ended March 31, | ||||||||
2015 | 2014 | |||||||
Expected U.S. Federal tax expense (benefit) | (34.0 | )% | (34.0 | )% | ||||
State taxes | (3.6 | )% | (3.5 | )% | ||||
Foreign taxes | 0.1 | % | 0.4 | % | ||||
Goodwill impairment | 23.9 | % | — | % | ||||
Change in valuation allowance | 13.6 | % | — | % | ||||
Research and experimentation credit | (0.3 | )% | — | % | ||||
Stock-based compensation expense | 0.3 | % | 1.6 | % | ||||
Other | 0.3 | % | 0.1 | % | ||||
Actual effective tax rate | 0.3 | % | (35.4 | )% | ||||
Significant components of the Company’s net deferred tax assets are as follows at March 31 (in thousands): | ||||||||
Years Ended March 31, | ||||||||
2015 | 2014 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 13,114 | $ | 9,583 | ||||
Accruals and allowances recognized in different periods | 313 | 408 | ||||||
Research and experimentation credit carryforwards | 6,004 | 5,852 | ||||||
Property and equipment | 54 | 50 | ||||||
Stock-based compensation expense | 1,522 | 1,410 | ||||||
Total deferred tax assets | 21,007 | 17,303 | ||||||
Less valuation allowance | (20,628 | ) | (16,844 | ) | ||||
Total net deferred tax assets | 379 | 459 | ||||||
Deferred tax liabilities: | ||||||||
Currency translation adjustments | (119 | ) | (127 | ) | ||||
Intangibles | (137 | ) | (193 | ) | ||||
Net deferred tax assets | $ | 123 | $ | 139 | ||||
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 increased by $3.8 million in the year ended March 31, 2015. | ||||||||
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, 2015 or 2014. | ||||||||
As of March 31, 2015, the Company had U.S. federal, state, and foreign net operating loss carryforwards of approximately $37.3 million, $8.0 million, and $3.7 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 of both the federal and state net operating loss carryforwards are subject to an annual limitation of approximately $0.2 million per year. | ||||||||
As of March 31, 2015, the Company had U.S. federal and state tax credit carryforwards of approximately $3.6 million and $3.7 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. 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. | ||||||||
As of March 31, 2015, the Company had gross unrecognized tax benefit of approximately $55,000 attributable to a Germany transfer pricing audit for the fiscal years 2009-2011. The Company did not have any gross unrecognized tax benefit for the year ended March 31, 2014. 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. | ||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||
Years Ended March 31, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Beginning balance | $ | — | $ | — | ||||
Additions based on tax positions taken during a prior period | 55 | — | ||||||
Ending balance | $ | 55 | $ | — | ||||
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 2011 for France, fiscal years after 2009 for Germany, and fiscal years after 2008 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. | ||||||||
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, 2015 | |||||
Commitments and Contingencies | |||||
Commitments and Contingencies | 10. Commitments and Contingencies | ||||
Leases | |||||
The Company leases office space and certain equipment under non-cancelable operating lease agreements with terms expiring through 2020. Rent expense related to operating these leases is recognized ratably on a straight-line basis over the entire lease term. The Company is required to pay property taxes, insurance and normal maintenance costs. | |||||
Future minimum lease payments under non-cancelable operating leases with initial or remaining lease terms in excess of one year as of March 31, 2015 are as follows (in thousands): | |||||
Years Ending March 31, | Operating | ||||
Leases | |||||
2016 | $ | 420 | |||
2017 | 212 | ||||
2018 | 114 | ||||
2019 | 102 | ||||
2020 | 8 | ||||
Total minimum lease payments | $ | 856 | |||
Rent expense of $569,000 and $708,000 was recognized in 2015 and 2014, 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, 2015, the present value of the lease obligations under the remaining master’s lease’s primary term is approximately $178,000. As of March 31, 2015, 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, 2015. | |||||
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. | |||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions | |
Related Party Transactions | 11.Related Party Transactions |
Following the retirement of Richard Koe from the position of Chief Executive Officer effective September 7, 2014, the Company entered into an expense reimbursement agreement with Mr. Koe where the Company agreed to reimburse Astoria Capital Management (“ACM”), an entity controlled by Mr. Koe, a monthly amount of $2,000 until April 30, 2015 then $1,000 effective May 1, 2015 as a rental fee for the use of ACM’s furniture in the Company’s Portland office. This agreement will continue for such time as the Company continues to make use of ACM’s furniture and will terminate upon written notice from the Company. Mr. Koe continues to serve as a member of the Company’s Board of Directors. | |
Segment_Information
Segment Information | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | 2015 | 2014 | ||||||
United States | $ | 4,253 | $ | 2,779 | ||||
Europe | 2,740 | 2,711 | ||||||
Total | $ | 6,993 | $ | 5,490 | ||||
March 31, | ||||||||
Long-lived assets | 2015 | 2014 | ||||||
United States | $ | 936 | $ | 18,928 | ||||
Europe | 350 | 413 | ||||||
Total | $ | 1,286 | $ | 19,341 | ||||
The Company engages in the design, development, sale, and support of rapid application development software known as Omnis and a hosted social media visualization platform known as Postano. The following table represents the Company’s net revenue by product line (in thousands): | ||||||||
Years Ended March 31, | ||||||||
Net revenue | 2015 | 2014 | ||||||
Omnis products | $ | 3,776 | $ | 3,803 | ||||
Postano products | 3,217 | 1,687 | ||||||
Total | $ | 6,993 | $ | 5,490 | ||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accrued Liabilities | ||||||||
Accrued Liabilities | 13. Accrued Liabilities | |||||||
Components of accrued liabilities at March 31 are as follows (in thousands): | ||||||||
2015 | 2014 | |||||||
Payroll and related costs | $ | 435 | $ | 825 | ||||
Severance and related costs | 518 | — | ||||||
Professional fees | 25 | 63 | ||||||
Taxes | 153 | 11 | ||||||
Pension | 22 | 35 | ||||||
Purchase of software license | 200 | — | ||||||
Revenue sharing agreement | — | 750 | ||||||
Other | 172 | 208 | ||||||
Total accrued liabilities | $ | 1,525 | $ | 1,892 | ||||
Subsequent_Event
Subsequent Event | 12 Months Ended |
Mar. 31, 2015 | |
SUBSEQUENT EVENT. | |
Subsequent Event | 14. Subsequent Event |
In April 2015, the Company signed a one-year lease extension for its Portland office. The term of the lease is for twelve months effective May 1, 2015 with a monthly base rent of $15,600. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2015 | |
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, we determine that the arrangement fee is not fixed or determinable, we defer the revenue and recognize the revenue when the arrangement fee becomes due and payable. We do not have price protection programs or conditional acceptance agreements, and sales of our products are made without right of return. |
For contracts with multiple software and software-related elements, we recognize 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 our hosted software subscription arrangements, subscription revenue is recognized ratably over the subscription period. We also have professional 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, we allocate 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. When subscription arrangements involve multiple elements that do not qualify as separate units of accounting, the entire arrangement consideration is recognized over the subscription period. | |
We determine whether VSOE can be established based on our historical pricing and discounting practices for the specific deliverable when sold separately. In determining VSOE, we require that a substantial majority of the selling prices fall within a reasonably narrow pricing range. We have established VSOE for our PCS included in our software arrangements, but have not yet been able to establish VSOE for our subscription or other services. | |
When VSOE cannot be established for our subscription and other services, we apply judgment with respect to whether we can establish a selling price based on TPE. TPE is determined based on third party pricing practices for similar deliverables when sold separately. Generally, our pricing strategy differs from that of our peers and our offerings contain a significant level of differentiation such that the comparable pricing of services with similar functionality cannot be obtained. Furthermore, typically, we are unable to reliably determine what similar competitors services’ selling prices are on a stand-alone basis. As a result, we have not been able to establish selling prices based on TPE. | |
When we are unable to establish a selling price for our subscription and other services using VSOE or TPE, we use BESP in our allocation of arrangement consideration. The objective of BESP is to determine the price at which we would transact a sale if the respective elements were sold on a stand-alone basis. We estimate 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 our overall pricing practices. We currently use BESP in order to allocate the selling price to our deliverables in multiple element subscription arrangements. | |
Cost of Subscription and Service Revenue | Cost of Subscription and Service Revenue. Cost of subscription revenue is comprised of direct costs for Postano subscriptions associated with data center hosting and personnel costs relating to platform access, web embed displays, social content analytic reports and phone support. Cost of service revenue includes primarily personnel costs related to 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 reviews its allowance for doubtful accounts at least quarterly. 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. Except for our building in the United Kingdom, which is being depreciated over 50 years, all other assets are being amortized or depreciated between 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. |
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. |
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 4,200,094, and 3,758,426 outstanding options to purchase shares of the Company’s common stock and contingently issuable shares as of March 31, 2015 and 2014, 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 its products and services through its direct sales force, 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 foreign subsidiaries are translated at the exchange rate in effect at each period end. Income statement accounts are translated at the average rate of exchange for each period. 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). Beginning in December 2009, foreign exchange gains and losses on the outstanding intercompany balance denominated in the 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 39% and 49% of total revenue for the fiscal years ended March 31, 2015 and 2014, 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 financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Some of our accounting policies require us to make difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. These accounting policies involve critical accounting estimates because they are particularly dependent on estimates and assumptions made by management about matters that are highly uncertain at the time the accounting estimates are made. Although we have used our best estimates based on facts and circumstances available to us at the time, different estimates reasonably could have been used. Changes in the accounting estimates we use are reasonably likely to occur from time to time, which may have a material effect on the presentation of our financial condition and results of operations. Our most critical accounting estimates include revenue recognition, accounting for business combinations and goodwill and accounting for employee stock-based compensation. We review our estimates, judgments, and assumptions periodically and reflect the effects of revisions in the period in which they are deemed to be necessary. We believe that these estimates are reasonable; however, actual results could differ from these estimates. |
Impairment of Goodwill and Other Long-Lived Assets | Impairment of Goodwill and Other Long-Lived Assets. Long-lived assets, such as property, furniture, 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 or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. 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 or asset group. 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 Pronouncements | Recent Accounting Pronouncements. 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 permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU No. 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In April 2015, the FASB issued an exposure draft proposing to defer the effective date of this ASU for one year. The new standard is effective for our fiscal year 2018, or fiscal year 2019 if the effective date is deferred one year. |
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360), which provides guidance for reporting discontinued operations and disclosures of disposals of components of an entity. This ASU affects an entity that has either a component that is disposed of or meets the criteria to be classified as held for sale. The core principle of the guidance is that a disposal of a component, or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift and has (or will have) a major effect on an entity’s operations and financial results. This standard is effective for annual reporting periods beginning after December 15, 2014, including interim periods within that reporting period (our fiscal year 2016). We do not expect the adoption of this ASU to have a material impact on our financial position and results of operations. | |
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). This ASU is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. We are evaluating the effect that ASU No. 2014-15 will have on our consolidated financial statements and related disclosures. | |
Discontinued_Operations_Busine1
Discontinued Operations - Business Divestiture (Tables). | 12 Months Ended | ||||
Mar. 31, 2015 | |||||
Discontinued Operations - Business Divestiture | |||||
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 year ended March 31, 2014 were as follows (in thousands): | ||||
For the Year | |||||
Ended March | |||||
31, 2014 | |||||
Revenue of discontinued operations | $ | 5,821 | |||
Income from discontinued operations | 3,231 | ||||
Income tax expense | 590 | ||||
Income from discontinued operations, net of tax | 2,641 | ||||
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 | |||
Property_Furniture_and_Equipme1
Property, Furniture and Equipment (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Furniture and Equipment | ||||||||
Schedule of property, furniture and equipment | Property, furniture and equipment at March 31 consisted of (in thousands): | |||||||
2015 | 2014 | |||||||
Land and buildings | $ | 636 | $ | 713 | ||||
Office equipment, furniture and fixtures | 4,715 | 4,641 | ||||||
Total | 5,351 | 5,354 | ||||||
Accumulated depreciation | (4,482 | ) | (4,779 | ) | ||||
Property, furniture and equipment, net | $ | 869 | $ | 575 | ||||
Goodwill_and_intangible_assets1
Goodwill and intangible assets (Tables) | 12 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Goodwill and intangible assets | |||||||||||
Schedule of Goodwill | Goodwill as of March 31, 2015 and 2014 was as follows (in thousands): | ||||||||||
2014 | Impairment | 2015 | |||||||||
write off | |||||||||||
Goodwill | $ | 18,183 | $ | (18,183 | ) | $ | — | ||||
Schedule of intangible assets subject to amortization | Intangible assets subject to amortization at March 31, 2015 and 2014 were as follows (in thousands): | ||||||||||
March 31, 2015 | |||||||||||
Cost | Accumulated | Net | |||||||||
Amortization/ | |||||||||||
Write off | |||||||||||
Purchased Trade and Domain Names | 80 | (80 | ) | $ | — | ||||||
Purchased Technology | 530 | (167 | ) | 363 | |||||||
Total purchased intangible assets | $ | 610 | $ | (247 | ) | $ | 363 | ||||
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 | ||||
Schedule of amortization expense in future periods | At March 31, 2015, expected future amortization expense is as follows (in thousands): | ||||||||||
Years Ending March 31, | Intangible | ||||||||||
assets | |||||||||||
2016 | $ | 76 | |||||||||
2017 | 76 | ||||||||||
2018 | 76 | ||||||||||
2019 | 76 | ||||||||||
2020 | 59 | ||||||||||
Total expected amortization expense | $ | 363 | |||||||||
Stockholders_Equity_Tables
Stockholder's Equity (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Stockholders' Equity | ||||||||||||
Schedule of Share Based Payment Award Stock Options and Employee Stock Purchase Plan Valuation Assumptions | ||||||||||||
Years Ended March 31, | ||||||||||||
2015 | 2014 | |||||||||||
ESPP | ESPP | |||||||||||
Stock | purchase | Stock | purchase | |||||||||
options | rights | options | rights | |||||||||
Expected term | 5.57 | 0.5 Years | 5.67 Years | 0.5 Years | ||||||||
Expected volatility | 77 | % | 84 | % | 77 | % | 76 | % | ||||
Risk-free interest rate | 1.73 | % | 0.07 | % | 1.56 | % | 0.08 | % | ||||
Dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | ||||
Schedule Of Share Based Compensation Stock Options Activity | Total stock-based compensation expense included in the consolidated statements of comprehensive loss is as follows (in thousands): | |||||||||||
Twelve Months Ended March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Cost of service revenue | $ | 23 | $ | 39 | ||||||||
Operating expense: | ||||||||||||
Selling and marketing | 53 | 347 | ||||||||||
Research and development | 114 | 285 | ||||||||||
General and administrative | 411 | 410 | ||||||||||
Total stock-based compensation expense | 601 | 1,081 | ||||||||||
Income tax benefit | — | — | ||||||||||
Net stock-based compensation expense | $ | 601 | $ | 1,081 | ||||||||
Schedule of stock option activity | ||||||||||||
Number of Shares | Weighted | Weighted | Aggregate | |||||||||
Average | Average | Intrinsic Value | ||||||||||
Exercise Price | Remaining | |||||||||||
Contractual | ||||||||||||
Term in Years | ||||||||||||
Options outstanding as of March 31, 2014 | 3,409,433 | $ | 2.41 | 7 | $ | 221,097 | ||||||
Granted | 3,203,000 | $ | 0.78 | |||||||||
Exercised | (22,542 | ) | $ | 0.7 | ||||||||
Forfeited | (1,305,036 | ) | $ | 1.27 | ||||||||
Expired | (654,033 | ) | $ | 2.4 | ||||||||
Options outstanding as of March 31, 2015 | 4,630,822 | $ | 1.61 | 7.6 | $ | 2,575 | ||||||
Vested and expected to vest at March 31, 2015 | 4,019,928 | $ | 1.75 | 7.3 | $ | 1,770 | ||||||
Exercisable at March 31, 2015 | 2,083,884 | $ | 2.59 | 5.3 | $ | — | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Taxes | ||||||||
Schedule of geographical breakdown of its loss before provision for income taxes | The Company’s geographical breakdown of its loss from continuing operations before provision for income taxes is as follows (in thousands): | |||||||
Years Ended March 31, | ||||||||
2015 | 2014 | |||||||
Domestic | $ | (28,399 | ) | $ | (11,580 | ) | ||
Foreign | (176 | ) | 351 | |||||
Loss before provision for taxes | $ | (28,575 | ) | $ | (11,229 | ) | ||
Schedule of components of the provision for income taxes | The components of the provision for income taxes from continuing operations are as follows (in thousands): | |||||||
Years Ended March 31, | ||||||||
2015 | 2014 | |||||||
Current | ||||||||
Federal | $ | 1 | $ | |||||
State | 1 | — | ||||||
Foreign | 97 | 123 | ||||||
Total current provision | $ | 99 | $ | 123 | ||||
Deferred | ||||||||
Federal | — | (3,495 | ) | |||||
State | — | (600 | ) | |||||
Foreign | (14 | ) | 7 | |||||
Total deferred provision | (14 | ) | (4,088 | ) | ||||
Total | $ | 85 | $ | (3,965 | ) | |||
Schedule of reconciliations of the provisions for income taxes at the statutory rates to the Company's provisions for income taxes | ||||||||
For the years ended March 31, | ||||||||
2015 | 2014 | |||||||
Expected U.S. Federal tax expense (benefit) | (34.0 | )% | (34.0 | )% | ||||
State taxes | (3.6 | )% | (3.5 | )% | ||||
Foreign taxes | 0.1 | % | 0.4 | % | ||||
Goodwill impairment | 23.9 | % | — | % | ||||
Change in valuation allowance | 13.6 | % | — | % | ||||
Research and experimentation credit | (0.3 | )% | — | % | ||||
Stock-based compensation expense | 0.3 | % | 1.6 | % | ||||
Other | 0.3 | % | 0.1 | % | ||||
Actual effective tax rate | 0.3 | % | (35.4 | )% | ||||
Schedule of significant components of the net deferred tax assets | Significant components of the Company’s net deferred tax assets are as follows at March 31 (in thousands): | |||||||
Years Ended March 31, | ||||||||
2015 | 2014 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 13,114 | $ | 9,583 | ||||
Accruals and allowances recognized in different periods | 313 | 408 | ||||||
Research and experimentation credit carryforwards | 6,004 | 5,852 | ||||||
Property and equipment | 54 | 50 | ||||||
Stock-based compensation expense | 1,522 | 1,410 | ||||||
Total deferred tax assets | 21,007 | 17,303 | ||||||
Less valuation allowance | (20,628 | ) | (16,844 | ) | ||||
Total net deferred tax assets | 379 | 459 | ||||||
Deferred tax liabilities: | ||||||||
Currency translation adjustments | (119 | ) | (127 | ) | ||||
Intangibles | (137 | ) | (193 | ) | ||||
Net deferred tax assets | $ | 123 | $ | 139 | ||||
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | ||||||||
Years Ended March 31, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Beginning balance | $ | — | $ | — | ||||
Additions based on tax positions taken during a prior period | 55 | — | ||||||
Ending balance | $ | 55 | $ | — | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies | |||||
Schedule of future minimum lease payments under non-cancelable operating leases with initial or remaining lease terms in excess of one year | Future minimum lease payments under non-cancelable operating leases with initial or remaining lease terms in excess of one year as of March 31, 2015 are as follows (in thousands): | ||||
Years Ending March 31, | Operating | ||||
Leases | |||||
2016 | $ | 420 | |||
2017 | 212 | ||||
2018 | 114 | ||||
2019 | 102 | ||||
2020 | 8 | ||||
Total minimum lease payments | $ | 856 | |||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Information | ||||||||
Summary of consolidated financial information 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 | 2015 | 2014 | ||||||
United States | $ | 4,253 | $ | 2,779 | ||||
Europe | 2,740 | 2,711 | ||||||
Total | $ | 6,993 | $ | 5,490 | ||||
March 31, | ||||||||
Long-lived assets | 2015 | 2014 | ||||||
United States | $ | 936 | $ | 18,928 | ||||
Europe | 350 | 413 | ||||||
Total | $ | 1,286 | $ | 19,341 | ||||
Schedule of 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 | 2015 | 2014 | ||||||
Omnis products | $ | 3,776 | $ | 3,803 | ||||
Postano products | 3,217 | 1,687 | ||||||
Total | $ | 6,993 | $ | 5,490 | ||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accrued Liabilities | ||||||||
Schedule of components of accrued liabilities | Components of accrued liabilities at March 31 are as follows (in thousands): | |||||||
2015 | 2014 | |||||||
Payroll and related costs | $ | 435 | $ | 825 | ||||
Severance and related costs | 518 | — | ||||||
Professional fees | 25 | 63 | ||||||
Taxes | 153 | 11 | ||||||
Pension | 22 | 35 | ||||||
Purchase of software license | 200 | — | ||||||
Revenue sharing agreement | — | 750 | ||||||
Other | 172 | 208 | ||||||
Total accrued liabilities | $ | 1,525 | $ | 1,892 | ||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Mar. 31, 2015 | |
Trade accounts receivable | |
Period of past due balances which are reviewed individually for collectibility | 60 days |
Property, Furniture and Equipment | Minimum | |
Estimated useful lives of the assets | 2 years |
Property, Furniture and Equipment | Maximum | |
Estimated useful lives of the assets | 5 years |
Property, Furniture and Equipment | United Kingdom | Minimum | |
Estimated useful lives of the assets | 50 years |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Foreign Currency Translation | ||
Percentage of revenue generated through offices located outside of the United States of America | 39.00% | 49.00% |
Stock options | ||
Net Loss Per Share: | ||
Options that were not included in the computation of diluted shares outstanding because the Company did not report net income from continuing operations, prior to applying the treasury stock method | 4,200,094 | 3,758,426 |
Discontinued_Operations_Busine2
Discontinued Operations - Business Divestiture (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Nov. 15, 2013 | Mar. 31, 2014 | Nov. 30, 2014 | Dec. 07, 2009 | |
sqft | ||||
Financial results of the discontinued operations | ||||
Income from discontinued operations, net of tax | $2,641,000 | |||
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 | |||
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 | |||
Area of office space under lease (in square feet) | 15,000 | |||
Financial results of the discontinued operations | ||||
Revenue of discontinued operations | 5,821,000 | |||
Income from discontinued operations | 3,231,000 | |||
Income tax expense | 590,000 | |||
Income from discontinued operations, net of tax | 2,641,000 | |||
Gain on sale of discontinued operations | 9,926,000 | |||
Discontinued Operation, Tax Effect of Discontinued Operation | 4,008,000 | |||
Gain on sale of discontinued operations, net of tax | 5,918,000 | |||
Income from discontinued operations | $8,559,000 |
Storycode_Winddown_Details
Storycode Winddown (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
item | ||||
STORYCODE WINDDOWN | ||||
Accounts receivable | 1,291,000 | $934,000 | ||
Tigerlogic | ||||
STORYCODE WINDDOWN | ||||
Accounts receivable | 250,000 | |||
Buyers | ||||
STORYCODE WINDDOWN | ||||
Accounts receivable | 230,000 | 10,000 | ||
Amount remitted on account of attributable accounts receivable | 220,000 | |||
Storycode tradename and rights | ||||
STORYCODE WINDDOWN | ||||
Write-off of Storycode trade name | $65,000 | |||
Storycode tradename and rights | Asset purchase agreement | ||||
STORYCODE WINDDOWN | ||||
Number of individuals with whom the company entered into an asset purchase agreement | 2 |
Fair_Value_Measurement_Details
Fair Value Measurement (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
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, 2015 | Mar. 31, 2014 | |
Property, furniture and equipment | ||
Total | $5,351,000 | $5,354,000 |
Accumulated depreciation | -4,482,000 | -4,779,000 |
Property, Plant and Equipment, Net, Total | 869,000 | 575,000 |
Depreciation of long-lived assets | 182,000 | 97,000 |
Land and buildings | ||
Property, furniture and equipment | ||
Total | 636,000 | 713,000 |
Office equipment, furniture and fixtures | ||
Property, furniture and equipment | ||
Total | 4,715,000 | 4,641,000 |
Disposal of Asset | 70,000 | |
Loss on Disposition of Assets | $20,000 |
Goodwill_and_intangible_assets2
Goodwill and intangible assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Purchased Intangible assets | |||
Amortization of purchased intangible asset | $146,000 | $83,000 | |
Purchased intangible asset subject to amortization | |||
Cost | 610,000 | 610,000 | |
Accumulated Amortization | -247,000 | -100,000 | |
Net | 363,000 | 510,000 | |
Useful life | 7 years | ||
Goodwill | |||
Goodwill | 18,183,000 | ||
Impairment write off | -18,183,000 | ||
Future amortization expenses | |||
2016 | 76,000 | ||
2017 | 76,000 | ||
2018 | 76,000 | ||
2019 | 76,000 | ||
2020 | 59,000 | ||
Net | 363,000 | 510,000 | |
Storycode tradename and rights | |||
Goodwill | |||
Write-off of Storycode trade name | 65,000 | ||
Purchased Trade and Domain Names | |||
Purchased intangible asset subject to amortization | |||
Cost | 80,000 | 80,000 | |
Accumulated Amortization | -80,000 | -10,000 | |
Net | 70,000 | ||
Future amortization expenses | |||
Net | 70,000 | ||
Purchased Techonology | |||
Purchased intangible asset subject to amortization | |||
Cost | 530,000 | 530,000 | |
Accumulated Amortization | -167,000 | -90,000 | |
Net | 363,000 | 440,000 | |
Future amortization expenses | |||
Net | $363,000 | $440,000 |
Stockholders_Equity_Details
Stockholder's Equity (Details) (USD $) | 12 Months Ended | 1 Months Ended | 172 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Feb. 29, 2012 | Mar. 31, 2015 | |
item | ||||
Stockholder's Equity | ||||
Series A convertible preferred stock authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | |
Series A convertible preferred stock issued (in shares) | 0 | 0 | 0 | |
Series A convertible preferred stock outstanding (in shares) | 0 | 0 | 0 | |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |
Common stock issued (in shares) | 30,955,697 | 30,117,234 | 30,955,697 | |
Common stock outstanding (in shares) | 30,955,697 | 30,117,234 | 30,955,697 | |
Stock options | ||||
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) | 928,670 | |||
Number of shares available for issuance | 4,370,481 | 4,370,481 | ||
Term of awards | 10 years | |||
Vesting period | 4 years | |||
Assumptions used to estimate the fair value of stock options and ESPP purchase rights: | ||||
Expected term | 5 years 6 months 26 days | 5 years 8 months 1 day | ||
Expected volatility (as a percent) | 77.00% | 77.00% | ||
Risk-free interest rate (as a percent) | 1.73% | 1.56% | ||
Dividend yield (as a percent) | 0.00% | 0.00% | ||
ESPP | ||||
Stockholder's Equity | ||||
Number of shares available for issuance | 1,000,000 | 1,000,000 | ||
Duration of offer periods | 6 months | |||
Minimum employee contribution as percentage of compensation | 1.00% | |||
Maximum employee contribution as percentage of compensation | 10.00% | 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% | |||
Assumptions used to estimate the fair value of stock options and ESPP purchase rights: | ||||
Expected term | 6 months | 6 months | ||
Expected volatility (as a percent) | 84.00% | 76.00% | ||
Risk-free interest rate (as a percent) | 0.07% | 0.08% | ||
Dividend yield (as a percent) | 0.00% | 0.00% | ||
2001 Plan | ||||
Stockholder's Equity | ||||
Number of shares available for issuance | 1,000,000 | 1,000,000 | ||
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 | 15,234 | 736,434 |
Stockholders_Equity_Details_2
Stockholder's Equity (Details 2) (USD $) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock-based compensation expense | ||
Total stock-based compensation expense | $601,000 | $1,081,000 |
Net stock-based compensation expense | 601,000 | 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 | 3 years | |
Discontinued operations | ||
Stock-based compensation expense | ||
Total stock-based compensation expense | 212,000 | |
Cost of service revenue | ||
Stock-based compensation expense | ||
Total stock-based compensation expense | 23,000 | 39,000 |
Selling and marketing | ||
Stock-based compensation expense | ||
Total stock-based compensation expense | 53,000 | 347,000 |
Research and development | ||
Stock-based compensation expense | ||
Total stock-based compensation expense | 114,000 | 285,000 |
General and administrative | ||
Stock-based compensation expense | ||
Total stock-based compensation expense | $411,000 | $410,000 |
Stockholders_Equity_Details_3
Stockholder's Equity (Details 3) (Stock options, USD $) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock options | ||
Number of shares | ||
Outstanding at the beginning of the period (in shares) | 3,409,433 | |
Granted (in shares) | 3,203,000 | |
Exercised (in shares) | -22,542 | |
Forfeited (in shares) | -1,305,036 | |
Expired (in shares) | -654,033 | |
Outstanding at the end of the period (in shares) | 4,630,822 | 3,409,433 |
Vested and expected to vest at the end of the period (in shares) | 4,019,928 | |
Exercisable at the end of the period (in shares) | 2,083,884 | |
Weighted Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $2.41 | |
Granted (in dollars per share) | $0.78 | |
Exercised (in dollars per share) | $0.70 | |
Forfeited (in dollars per share) | $1.27 | |
Expired (in dollars per share) | $2.40 | |
Outstanding at the end of the period (in dollars per share) | $1.61 | $2.41 |
Vested and expected to vest at the end of the period (in dollars per share) | $1.75 | |
Exercisable at the end of the period (in dollars per share) | $2.59 | |
Weighted Average Remaining Contractual Term | ||
Outstanding at the beginning of the period | 7 years 7 months 6 days | 7 years |
Outstanding at the end of the period | 7 years 7 months 6 days | 7 years |
Vested and expected to vest at the end of the period | 7 years 3 months 18 days | |
Exercisable at the end of the period | 5 years 3 months 18 days | |
Aggregate Intrinsic Value | ||
Outstanding at the beginning of the period (in dollars) | $221,097 | |
Outstanding at the end of the period (in dollars) | 2,575 | 221,097 |
Vested and expected to vest at the end of the period | 1,770 | |
Stock-based compensation, additional disclosure | ||
Aggregate intrinsic value of options exercised (in dollars) | $16,000 | $220,000 |
Weighted average grant date fair value of awards granted (in dollars per share) | $0.52 | $1.23 |
Stockholders_Equity_Details_4
Stockholder's Equity (Details 4) (USD $) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
The Plan | ||
Retirement Plans | ||
Maximum employer contribution as a percentage of participant's compensation | 50.00% | |
Discretionary annual contributions made to the Plan | $0 | $0 |
The Plan | Maximum | ||
Retirement Plans | ||
Employer contribution as a percentage of participant's compensation | 4.00% | |
RDUKL Plan | ||
Retirement Plans | ||
Amount contributed by employer | $50,000 | $53,000 |
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, 2015 | Mar. 31, 2014 | |
Income Taxes | ||
Domestic | ($28,399,000) | ($11,580,000) |
Foreign | -176,000 | 351,000 |
Loss before income taxes from continuing operations | -28,575,000 | -11,229,000 |
Current | ||
Federal | 1,000 | |
State | 1,000 | |
Foreign | 97,000 | 123,000 |
Total current provision | 99,000 | 123,000 |
Deferred | ||
Federal | -3,495,000 | |
State | -600,000 | |
Foreign | -14,000 | 7,000 |
Total deferred provision | -14,000 | -4,088,000 |
Total | 85,000 | -3,965,000 |
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% |
State taxes (as a percent) | -3.60% | -3.50% |
Foreign taxes (as a percent) | 0.10% | 0.40% |
Goodwill Impairment (as a Percent) | 23.90% | |
Change in valuation allowance (as a percent) | 13.60% | |
Research and experimentation credit (as a percent) | -0.30% | |
Stock-based compensation expense (as a percent) | 0.30% | 1.60% |
Other (as a percent) | 0.30% | 0.10% |
Actual effective tax rate (as a percent) | 0.30% | -35.40% |
Deferred tax assets: | ||
Net operating loss carryforwards | 13,114,000 | 9,583,000 |
Accruals and allowances recognized in different periods | 313,000 | 408,000 |
Research and experimentation credit carryforwards | 6,004,000 | 5,852,000 |
Property and equipment | 54,000 | 50,000 |
Stock-based compensation expense | 1,522,000 | 1,410,000 |
Total deferred tax assets | 21,007,000 | 17,303,000 |
Less valuation allowance | -20,628,000 | -16,844,000 |
Total net deferred tax assets | 379,000 | 459,000 |
Deferred tax liabilities: | ||
Currency translation adjustments | -119,000 | -127,000 |
Intangibles | -137,000 | -193,000 |
Net deferred tax assets | 123,000 | 139,000 |
Additional disclosures | ||
Increase in valuation allowance | 3,800,000 | |
Excess income tax benefits from stock option exercises | $0 | $0 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Operating loss carryforwards | |
Operating loss carryforwards subject to an annual limitation | $1.40 |
Annual limitation on use of operating loss carryforwards | 0.2 |
U.S. Federal | |
Operating loss carryforwards | |
Net operating loss carryforwards | 37.3 |
Operating loss carryforwards amount in excess of recognized stock option compensation | 2.3 |
State | |
Operating loss carryforwards | |
Net operating loss carryforwards | 8 |
Operating loss carryforwards amount in excess of recognized stock option compensation | 0.2 |
Foreign | |
Operating loss carryforwards | |
Net operating loss carryforwards | $3.70 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended |
Mar. 31, 2015 | |
Tax credit carryforwards | |
Unrecognized deferred tax liability | $0 |
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 | 100,000 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |
Additions based on tax positions taken during a prior period | 55,000 |
Ending balance | 55,000 |
U.S. Federal | |
Tax credit carryforwards | |
Tax credit carryforwards | 3,600,000 |
State | |
Tax credit carryforwards | |
Tax credit carryforwards | $3,700,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies .(Details) (USD $) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Commitments and Contingencies | ||
Rent expense | $569,000 | $708,000 |
Present value of the lease obligations | 178,000 | |
Maximum duration of service warranties | 30 days | |
Future minimum lease payments under noncancelable operating leases | ||
2016 | 420,000 | |
2017 | 212,000 | |
2018 | 114,000 | |
2019 | 102,000 | |
2020 | 8,000 | |
Total minimum lease payments | $856,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Portland office, Astoria, USD $) | 7 Months Ended | 0 Months Ended |
Mar. 31, 2015 | Mar. 31, 2015 | |
Period 1 | ||
Related party transactions | ||
Furniture Rental Fee | $2,000 | |
Period 2 | ||
Related party transactions | ||
Furniture Rental Fee | $1,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
segment | ||
Segment information | ||
Number of reportable segments | 1 | |
Net revenue | $6,993 | $5,490 |
Long-lived assets | 1,286 | 19,341 |
United States | ||
Segment information | ||
Net revenue | 4,253 | 2,779 |
Long-lived assets | 936 | 18,928 |
Europe | ||
Segment information | ||
Net revenue | 2,740 | 2,711 |
Long-lived assets | $350 | $413 |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net revenue by product line | ||
Net revenue | $6,993 | $5,490 |
Omnis products | ||
Net revenue by product line | ||
Net revenue | 3,776 | 3,803 |
Postano products | ||
Net revenue by product line | ||
Net revenue | $3,217 | $1,687 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accrued liabilities | ||
Payroll and related costs | $435 | $825 |
Severance and Related Cost | 518 | |
Professional fees | 25 | 63 |
Taxes | 153 | 11 |
Pension | 22 | 35 |
Purchase of software license | 200 | |
Revenue sharing agreement | 750 | |
Other | 172 | 208 |
Total accrued liabilities | $1,525 | $1,892 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event, Portland office, USD $) | 1 Months Ended | |
31-May-15 | Apr. 30, 2015 | |
Subsequent Event | Portland office | ||
Subsequent Event | ||
Leases renewal term | 1 year | |
Term of contract | 12 months | |
Monthly base rent | $15,600 |