Qumu (QUMU) 10-Q 7 Nov 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 02, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	QUMU CORP
Entity Central Index Key	892,482
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		9,528,403

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 8,499	$ 7,690
Receivables, net of allowance for doubtful accounts of $81 and $21, respectively	4,150	5,529
Contract assets	156	0
Income tax receivable	319	156
Prepaid expenses and other current assets	1,932	1,830
Total current assets	15,056	15,205
Property and equipment, net of accumulated depreciation of $2,730 and $4,678, respectively	512	911
Intangible assets, net	4,661	6,295
Goodwill	7,132	7,390
Deferred income taxes, non-current	60	77
Other assets, non-current	925	4,398
Total assets	28,346	34,276
Current liabilities:
Accounts payable and other accrued liabilities	1,841	3,878
Accrued compensation	959	1,824
Deferred revenue	9,114	8,923
Deferred rent	47	181
Financing obligations	144	1,047
Warrant liability	3,458	819
Total current liabilities	15,563	16,672
Long-term liabilities:
Deferred revenue, non-current	1,483	141
Income taxes payable, non-current	531	3
Deferred tax liability, non-current	40	153
Deferred rent, non-current	322	507
Financing obligations, non-current	0	3
Term loan, non-current	3,304	7,605
Other non-current liabilities	146	0
Total long-term liabilities	5,826	8,412
Total liabilities	21,389	25,084
Commitments and contingencies (Note 4)	0	0
Stockholders’ equity:
Preferred stock, $0.01 par value, authorized 250,000 shares, no shares issued and outstanding	0	0
Common stock, $0.01 par value, authorized 29,750,000 shares, issued and outstanding 9,528,403 and 9,364,804, respectively	95	94
Additional paid-in capital	68,763	68,035
Accumulated deficit	(58,923)	(56,197)
Accumulated other comprehensive loss	(2,978)	(2,740)
Total stockholders’ equity	6,957	9,192
Total liabilities and stockholders’ equity	$ 28,346	$ 34,276

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Receivables, allowance for doubtful accounts	$ 81	$ 21
Property and equipment, accumulated depreciation and amortization	$ 2,730	$ 4,678
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	29,750,000	29,750,000
Common stock, shares issued (in shares)	9,528,403	9,364,804
Common stock, shares outstanding (in shares)	9,528,403	9,364,804
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	250,000	250,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Software licenses and appliances	$ 985	$ 1,822	$ 4,303	$ 3,971
Service	4,668	5,751	13,807	16,967
Total revenues	5,653	7,573	18,110	20,938
Cost of revenues:
Software licenses and appliances	504	916	1,643	1,778
Service	1,611	1,995	4,990	6,003
Total cost of revenues	2,115	2,911	6,633	7,781
Gross profit	3,538	4,662	11,477	13,157
Operating expenses:
Research and development	1,617	1,769	5,159	5,676
Sales and marketing	1,796	2,509	6,388	7,484
General and administrative	1,608	2,083	5,536	6,552
Amortization of purchased intangibles	224	226	680	675
Total operating expenses	5,245	6,587	17,763	20,387
Operating loss	(1,707)	(1,925)	(6,286)	(7,230)
Other income (expense):
Gain on sale of BriefCam, Ltd.	6,502	0	6,502	0
Loss on extinguishment of debt	(1,189)	0	(1,189)	0
Interest expense, net	(262)	(343)	(1,616)	(994)
Decrease (increase) in fair value of warrant liability	(401)	15	(292)	(52)
Other, net	(78)	(166)	(481)	(345)
Total other expense, net	4,572	(494)	2,924	(1,391)
Loss before income taxes	2,865	(2,419)	(3,362)	(8,621)
Income tax benefit	469	(110)	303	(139)
Net loss	$ 2,396	$ (2,309)	$ (3,665)	$ (8,482)
Earnings per share, basic (in dollars per share)	$ 0.25	$ (0.25)	$ (0.39)	$ (0.91)
Weighted average number of shares outstanding, basic (in shares)	9,559	9,404	9,472	9,335
Net income (loss) from continuing operations available to common shareholders, diluted	$ 2,396	$ (2,309)	$ (3,665)	$ (8,482)
Earnings per share, diluted (in dollars per share)	$ 0.25	$ (0.25)	$ (0.39)	$ (0.91)
Weighted average number of shares outstanding, diluted (in shares)	9,709	9,404	9,472	9,335

Condensed Consolidated Statem_2

Condensed Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ 2,396	$ (2,309)	$ (3,665)	$ (8,482)
Other comprehensive income (loss):
Net change in foreign currency translation adjustments	(87)	405	(233)	1,101
Total other comprehensive income (loss)	(87)	405	(233)	1,101
Total comprehensive loss	$ 2,309	$ (1,904)	$ (3,898)	$ (7,381)

Condensed Consolidated Statem_3

Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating activities:
Net loss	$ (3,665)	$ (8,482)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,924	2,309
Stock-based compensation	767	1,090
Accretion of debt discount and issuance costs	1,194	364
Gain on sale of BriefCam, Ltd.	(6,502)	0
Loss on extinguishment of debt	1,189	0
Loss on lease contract termination	177	0
Change in fair value of warrant liability	292	52
Deferred income taxes	(99)	(112)
Changes in operating assets and liabilities:
Receivables	1,363	1,204
Contract assets	394	0
Income taxes receivable / payable	357	142
Prepaid expenses and other assets	291	1,070
Accounts payable and other accrued liabilities	(2,082)	563
Accrued compensation	(857)	(405)
Deferred revenue	2,283	151
Deferred rent	(121)	(132)
Other non-current liabilities	98	0
Net cash used in operating activities	(2,997)	(2,186)
Proceeds from Sale of Other Assets, Investing Activities	9,678	0
Investing activities:
Purchases of property and equipment	(116)	(22)
Net cash used in investing activities	9,562	(22)
Financing activities:
Proceeds from term loan and warrant issuance	10,000	0
Principal payments on term loans	(14,000)	0
Payments for term loan issuance costs	(1,308)	(125)
Principal payments on financing obligations	(329)	(383)
Common stock repurchases to settle employee withholding liability	(28)	(11)
Net cash provided by (used in) financing activities	(5,665)	(519)
Effect of exchange rate changes on cash	(91)	101
Net decrease in cash and cash equivalents	809	(2,626)
Cash and cash equivalents, beginning of period	7,690	10,364
Cash and cash equivalents, end of period	8,499
Supplemental disclosures of net cash paid (received) during the period:
Income taxes, net	52	(176)
Interest, net	$ 502	$ 627

Nature of Business and Basis of

Nature of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	Nature of Business and Basis of Presentation Qumu Corporation (the "Company") provides the software applications businesses use to create, manage, secure, deliver and measure the success of their videos. The Company's innovative solutions release the power of video to engage and empower employees, partners and clients, allowing organizations around the world to realize the greatest possible value from video they create and publish. Whatever the audience size, viewer device or network configuration, the Company's solutions are how business does video. The Company views its operations and manages its business as one segment and one reporting unit. Factors used to identify the Company's single operating segment and reporting unit include the financial information available for evaluation by the chief operating decision maker in making decisions about how to allocate resources and assess performance. The Company manages the marketing of its products and services through regional sales representatives and independent distributors in the United States and international markets. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The accompanying condensed consolidated financial statements are unaudited and have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Pursuant to such rules and regulations, certain financial information and footnote disclosures normally included in a complete set of financial statements have been condensed or omitted. However, in the opinion of management, the financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position and results of operations and cash flows of the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2017 . The Company has continued to experience recurring operating losses and negative cash flows from operating activities. The ability of the Company to continue as a going concern is dependent upon the Company maintaining compliance with its term loan covenants. The Company's credit agreement is described in Note 4–"Commitments and Contingencies." If an event of default occurs due to the Company not maintaining compliance with its covenants, the lender may accelerate the repayment of outstanding principal, which could negatively impact the Company’s ability to fund its working capital requirements, capital expenditures and general corporate expenses. The Company is projecting future compliance with its covenants under its current operating plan. Recently Adopted Accounting Standards Revenue from Contracts with Customers On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and the related amendments ("Topic 606") using the modified retrospective transition method. Under this method, the Company evaluated contracts that were in effect at the beginning of fiscal 2018 as if those contracts had been accounted for under Topic 606. The Company did not evaluate individual modifications for those periods prior to the adoption date, but the aggregate effect of all modifications as of the adoption date and such effects are provided below. Under the modified retrospective transition approach, periods prior to the adoption date were not adjusted and continue to be reported in accordance with historical, pre-Topic 606 accounting. A cumulative catch up adjustment was recorded to beginning accumulated deficit to reflect the impact of all existing arrangements under Topic 606. At the adoption date, the Company adjusted accumulated deficit by $939,000 , primarily driven by uncompleted contracts for which revenue will not be recognized in future periods under Topic 606, partially offset by the incremental originating costs associated with those contracts. The cumulative effect of the changes made to our January 1, 2018 condensed consolidated balance sheet from the modified retrospective adoption of Topic 606 is as follows (in thousands): December 31, Adjustments January 1, Assets: Contract assets $ — $ 550 $ 550 Prepaid expenses and other current assets 1,830 (99 ) 1,731 Other assets, non-current 4,398 (10 ) 4,388 Liabilities: Deferred revenue 8,923 (493 ) 8,430 Deferred revenue, non-current 141 — 141 Stockholders’ equity: Accumulated deficit (56,197 ) 939 (55,258 ) Accumulated other comprehensive loss (2,740 ) (5 ) (2,745 ) The most significant impact of the adoption of Topic 606 was on the Company's term software licenses that, under the Company's previous revenue accounting ("Topic 605"), would have continued to be recognized into revenue ratably in 2018 and beyond. However, under Topic 606 the standalone selling price attributable to the license is recognized upon transfer of control resulting in up-front recognition, typically upon fulfillment. The timing of revenue recognition for perpetual software licenses, hardware, and professional services is expected to remain substantially unchanged. See Note 2–"Revenue" for the Company's revenue recognition policy after the adoption of Topic 606. Revenue generated under Topic 606 is expected to be approximately $1.1 million lower than revenue would have been under Topic 605 for the year ending December 31, 2018. The following table summarizes the effects of adopting Topic 606 on the Company’s condensed consolidated statement of operations and comprehensive income (loss) for the three and nine months ended September 30, 2018 : Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 Revenues $ 5,653 $ 153 $ 5,806 $ 18,110 $ 577 $ 18,687 Cost of revenues 2,115 6 2,121 6,633 24 6,657 Sales and marketing 1,796 12 1,808 6,388 50 6,438 Net income (loss) 2,396 135 2,531 (3,665 ) 503 (3,162 ) Net change in foreign currency translation adjustments (87 ) 2 (85 ) (233 ) 12 (221 ) Total comprehensive income (loss) 2,309 137 2,446 (3,898 ) 515 (3,383 ) The following table summarizes the effects of adopting Topic 606 on the Company’s condensed consolidated balance sheet as of September 30, 2018 : September 30, 2018 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 Assets: Contract assets 156 (156 ) — Prepaid expenses and other current assets 1,932 33 1,965 Other assets, non-current 925 2 927 Liabilities: Deferred revenue 9,114 299 9,413 Deferred revenue, non-current 1,483 (1 ) 1,482 Stockholders’ equity: Accumulated deficit (58,923 ) (436 ) (59,359 ) Accumulated other comprehensive loss (2,978 ) 17 (2,961 ) The Company’s net cash used in operating activities for the nine months ended September 30, 2018 did not change due to the adoption of Topic 606. The following table summarizes the effects of adopting Topic 606 on the financial statement line items of the Company’s condensed consolidated statement of cash flows for the nine months ended September 30, 2018 : Nine Months Ended September 30, 2018 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 Operating activities: Net loss $ (3,665 ) $ 503 $ (3,162 ) Adjustments to reconcile net loss to net cash used in operating activities: Changes in operating assets and liabilities: Contract assets 394 (394 ) — Prepaid expenses and other assets 291 74 365 Deferred revenue 2,283 (183 ) 2,100 Financial Instruments In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall , which the Company adopted on January 1, 2018, modifying its accounting and required disclosures for its equity investment previously accounted for under the cost basis method of accounting. The Company’s equity investment consisted of its investment totaling $3.1 million in convertible preferred stock of privately-held BriefCam, Ltd. (“BriefCam”), as described in Note 9–"Investment in Software Company," which is included in other assets in the condensed consolidated balance sheets as of December 31, 2017. The new standard eliminated the cost method of accounting for investments in equity securities that do not have readily determinable fair values and permits the election of a measurement alternative that allows such securities to be recorded at cost, less impairment, if any, plus or minus changes resulting from observable price changes in market-based transactions for an identical or similar investment of the same issuer. The Company adopted the provisions of the new standard applicable to its investment in BriefCam on a prospective basis and elected the measurement alternative for non-marketable investments previously accounted for under the cost method of accounting. On July 6, 2018, the Company sold its investment in BriefCam, which had a carrying value of $3.1 million as of December 31, 2017 , resulting in a gain on sale of $6.5 million during the three and nine months ended September 30, 2018 . From the date of adoption of the new accounting standard on January 1, 2018 to the sale of BriefCam, there were no observable price changes or impairments related to the Company’s non-marketable investment in the equity security. Income Taxes In March 2018, the Company adopted ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which updates the income tax accounting in U.S. GAAP to reflect the SEC interpretive guidance released on December 22, 2017, when the Tax Cuts and Jobs Act of 2017 was signed into law. Additional information regarding the adoption of this standard is contained in Note 7–"Income Taxes." Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820) , which changes the fair value measurement disclosure requirements of ASC 820. The ASU is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU. The Company does not believe the impact of adopting this standard will be material to its consolidated financial statements disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) , which allows a reclassification from accumulated other comprehensive income (loss) to retained earnings (accumulated deficit) for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 and requires certain disclosures regarding stranded tax effects in accumulated other comprehensive income (loss). This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted during interim or annual periods. The Company does not believe the impact of adopting this standard will be material to its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The purpose of the amendment is to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not believe the impact of adopting this standard will be material to its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which will supersede the existing lease guidance and will require all leases with a term greater than 12 months to be recognized in the statements of financial position and eliminate current real estate-specific lease guidance, while maintaining substantially similar classification criteria for distinguishing between finance leases and operating leases. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company plans to use a modified retrospective approach and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company developed a project plan to guide the implementation of ASU 2016-02 and has made progress on this plan, including assessing the Company’s portfolio of leases and compiling information on active leases. The Company is currently evaluating the impact on its consolidated financial statements of adopting this standard, which will require right-of-use assets and lease liabilities be recorded in the consolidated balance sheet for operating leases, which may be material.

Revenue (Notes)

Revenue (Notes)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The Company generates revenue through the sale of enterprise video content management software, hardware, maintenance and support, and professional and other services. Software sales may take the form of a perpetual software license, a cloud-hosted software as a service (SaaS) or a term software license. Software licenses and appliances revenue includes sales of perpetual software licenses and hardware. Service revenue includes SaaS, term software licenses, maintenance and support, and professional and other services. An individual sale can range from single year agreements for thousands of dollars to multi-year agreements for over a million dollars. The Company follows a five-step model to assess each contract of a sale or service to a customer: identify the legally binding contract, identify the performance obligations, determine the transaction price, allocate the transaction price, and determine whether revenue will be recognized at a point in time or over time basis. Revenue is recognized upon transfer of control of promised products or services (i.e., performance obligations) to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for promised goods or services. The Company’s performance obligations are satisfied either over time (for cloud-hosted software as a service, maintenance and support, and other services) or at a point in time (for software licenses and hardware). The Company enters into contracts that can include various combinations of software licenses, appliances, maintenance and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each distinct performance obligation, on a relative basis using its standalone selling price. The Company determines the standalone selling price for software-related elements, including professional services and software maintenance and support contracts, based on the price charged for the deliverable when sold separately. With the adoption of Topic 606 beginning January 1, 2018, the Company had a change in the accounting for revenue of its on-premise term software license arrangements. Under Topic 605, the term software license and technical support elements of the combined bundle were recognized over time. In contrast, Topic 606 requires the Company to identify the performance obligations in the contract – that is, those promised goods and services (or bundles of promised goods or services) that are distinct – and allocate the transaction price of the contract to those performance obligations on the basis of standalone selling prices. The transaction price allocated to each performance obligation is then recognized either at a point in time or over time using an appropriate measure of progress. Under Topic 606, the Company has concluded that its on-premise term software licenses and technical support for its on-premise term software licenses are distinct from each other. As a result, the software license is now recognized upon transfer of control, which is at fulfillment, resulting in earlier revenue recognition. The revenue allocable to technical support continues to be recognized ratably over the non-cancellable committed term of the agreement. Other items relating to charges collected from customers include shipping and handling charges and sales taxes charges. Shipping and handling charges collected from customers as part of the Company's sales transactions are included in revenues and the associated costs are included in cost of revenues. Sales taxes charged to and collected from customers as part of the Company’s sales transactions are excluded from revenues and recorded as a liability to the applicable governmental taxing authority. Nature of Products and Services Perpetual software licenses The Company’s perpetual software license arrangements grant customers the right to use the software indefinitely as it exists at the time of purchase. The Company recognizes revenue for distinct software licenses once the license period has begun and the software has been made available to the customer. Payments for perpetual software license contracts are generally received upon fulfillment of the software product. Term software licenses The Company's term software licenses differ from perpetual software licenses in that the customer's right to use the licensed product has a termination date. Prior to the adoption of Topic 606, these licenses were recognized ratably over the contractual term, beginning on the commencement date of each contract, which is typically the date the Company’s product has been fulfilled. Under the provisions of Topic 606, term software licenses are now recognized upon transfer of control, which is typically at fulfillment, resulting in up-front revenue recognition. The Company categorizes revenue from term software licenses as subscription, maintenance and support revenue in service revenues. Payments are generally received quarterly or annually in equal or near equal installments over the term of the agreement. Cloud-hosted software as a service Cloud-hosted software as a service (SaaS) arrangements grant customers the right to access and use the licensed products at the outset of an arrangement via third-party cloud providers. Updates are generally made available throughout the entire term of the arrangement, which is generally one to three years. The Company provides an online library and technical support resources in these cloud-hosted SaaS arrangements, which in conjunction with the SaaS license constitute a single, combined performance obligation, and revenue is recognized over the term of the license. Payments are generally received annually in advance of the service period. Hardware The Company sells appliances that are typically drop shipped from third-party suppliers selected by the Company. The transaction price allocated to the appliance is generally recognized as revenue at fulfillment when the customer obtains control of the product. Payments for appliances are generally received upon delivery of the hardware product. Maintenance and support Maintenance and support arrangements grant customers the right to software updates and technical support over the term of the maintenance and support contract. Revenue from maintenance and support is generally recognized ratably over the contract term beginning on the commencement date of each contract, which is upon fulfillment of the software obligation. Payments are generally received annually in advance of the service period. Professional services and training Professional services and training generally consist of software implementation, on-boarding services and best practices consulting. Revenue from professional services contracts is typically recognized as performed, generally using hours expended to measure progress. Services are generally invoiced monthly for work performed. Revenues by product category and geography The Company combines its products and services into three product categories and three geographic regions, based on customer location, as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Software licenses and appliances $ 985 $ 1,822 $ 4,303 $ 3,971 Service Subscription, maintenance and support 4,091 5,113 12,251 15,061 Professional services and other 577 638 1,556 1,906 Total service 4,668 5,751 13,807 16,967 Total revenues $ 5,653 $ 7,573 $ 18,110 $ 20,938 Three Months Ended Nine Months Ended 2018 2017 2018 2017 North America $ 3,766 $ 5,771 $ 11,593 $ 15,194 Europe 1,618 1,566 4,693 5,174 Asia 269 236 1,824 570 Total $ 5,653 $ 7,573 $ 18,110 $ 20,938 Significant Judgments More judgments and estimates are required under Topic 606 than were required under Topic 605. Due to the complexity of certain contracts, the actual revenue recognition treatment required under Topic 606 for the Company’s arrangements may be dependent on contract-specific terms and may vary in some instances. Our contracts with customers typically contain promises to transfer multiple products and services to a customer. Judgment is required to determine whether each product and/or service is considered to be a distinct performance obligation that should be accounted for separately under the contract. We allocate the transaction price to the distinct performance obligations based on relative standalone selling price (“SSP”). We estimate SSP by maximizing use of observable prices such as the prices charged to customers on a standalone basis, established prices lists, contractually stated prices, profit margins and other entity-specific factors, or by using information such as market conditions and other observable inputs. However, the selling prices of the Company's software licenses and cloud-hosted SaaS arrangements are highly variable. Thus, we estimate SSP for software licenses and cloud-hosted SaaS arrangements using the residual approach, determined based on total transaction price less the SSP of other goods and services promised in the contract. Determining whether licenses and services are distinct performance obligations that should be accounted for separately, or not distinct and thus accounted for together, requires significant judgment. In some arrangements, such as most of the Company’s license arrangements, the Company has concluded that the licenses and associated services are distinct from each other. In others, like the Company’s cloud-hosted SaaS arrangements, the license and certain services are not distinct from each other and therefore the Company has concluded that these promised goods and services are a single, combined performance obligation. If a group of agreements are so closely related that they are, in effect, part of a single arrangement, such agreements are deemed to be one arrangement for revenue recognition purposes. The Company exercises significant judgment to evaluate the relevant facts and circumstances in determining whether the separate agreements should be accounted for separately or as, in substance, a single arrangement. The Company’s judgments about whether a group of contracts comprise a single arrangement can affect the allocation of consideration to the distinct performance obligations, which could have an effect on results of operations for the periods involved. The Company is required to estimate the total consideration expected to be received from contracts with customers. In limited circumstances, the consideration expected to be received is variable based on the specific terms of the contract or based on the Company’s expectations of the term of the contract. Generally, the Company has not experienced significant returns from or refunds to customers. These estimates require significant judgment and the change in these estimates could have an effect on its results of operations during the periods involved. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in receivables or contract liabilities (deferred revenue) on the Company’s condensed consolidated balance sheet. The Company records deferred revenue when revenue is recognized subsequent to invoicing. The Company’s balances for contract assets totaled $550,000 and $156,000 as of January 1, 2018 and September 30, 2018 , respectively. The Company’s balances for contract liabilities, which are included in deferred revenue, totaled $8.6 million and $10.6 million as of January 1, 2018 and September 30, 2018 , respectively. During the three and nine months ended September 30, 2018 , the Company recognized $3.8 million and $7.3 million of revenue that was included in the deferred revenue balance, as adjusted for Topic 606, at the beginning of the period. All other activity in deferred revenue is due to the timing of invoices in relation to the timing of revenue as described above. Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted but unsatisfied performance obligations were approximately $17.3 million as of September 30, 2018 , of which the Company expects to recognize $11.0 million of revenue over the next 12 months and the remainder thereafter. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s products and services, and not to facilitate financing arrangements. Deferred Sales Commissions Sales commissions represent the direct incremental costs related to the acquisition of customer contracts. The Company recognizes commissions as sales and marketing expense at the time the associated product revenue is recognized, requiring establishment of a deferred cost in the event a commission is paid prior to recognition of revenue. The deferred commission amounts are recoverable through the related future revenue streams under non-cancellable customer contracts and commission clawback provisions in the Company's sales compensation plans. Deferred commission costs included in prepaid expenses and other assets were $366,000 and $308,000 at September 30, 2018 and December 31, 2017 , respectively. Deferred commission costs in other assets, non-current were $36,000 and $47,000 at September 30, 2018 and December 31, 2017 , respectively. The Company recognized commissions expense of $212,000 and $479,000 during the three months ended September 30, 2018 and 2017 , respectively, and $943,000 and $1.3 million during the nine months ended September 30, 2018 and 2017 , respectively.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Intangible Assets and Goodwill Intangible Assets The Company’s amortizable intangible assets consisted of the following (in thousands): September 30, 2018 Customer Relationships Developed Technology Trademarks / Trade-Names Total Original cost $ 4,860 $ 8,100 $ 2,181 $ 15,141 Accumulated amortization (2,598 ) (6,974 ) (908 ) (10,480 ) Net identifiable intangible assets $ 2,262 $ 1,126 $ 1,273 $ 4,661 December 31, 2017 Customer Relationships Developed Technology Trademarks / Trade-Names Total Original cost $ 4,928 $ 8,225 $ 2,184 $ 15,337 Accumulated amortization (2,194 ) (6,043 ) (805 ) (9,042 ) Net identifiable intangible assets $ 2,734 $ 2,182 $ 1,379 $ 6,295 Changes to the carrying amount of net amortizable intangible assets for the nine months ended September 30, 2018 consisted of the following (in thousands): Nine Months Ended Balance, beginning of period $ 6,295 Amortization expense (1,559 ) Currency translation (75 ) Balance, end of period $ 4,661 Amortization expense of intangible assets consisted of the following (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Amortization expense associated with the developed technology included in cost of revenues $ 288 $ 302 $ 879 $ 893 Amortization expense associated with other acquired intangible assets included in operating expenses 224 226 680 675 Total amortization expense $ 512 $ 528 $ 1,559 $ 1,568 Goodwill On October 3, 2014, the Company completed the acquisition of Kulu Valley, Ltd., subsequently renamed Qumu Ltd., and recognized $8.8 million of goodwill and $6.7 million of intangible assets. The goodwill balance of $7.1 million at September 30, 2018 reflects the impact of foreign currency exchange rate fluctuations since the acquisition date. As of September 30, 2018 , the Company’s market capitalization, without a control premium, was greater than its book value and, as a result, the Company concluded there was no goodwill impairment. Declines in the Company’s market capitalization or a downturn in its future financial performance and/or future outlook could require the Company to record goodwill and other impairment charges. While a goodwill impairment charge is a non-cash charge, it would have a negative impact on the Company's results of operations.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases and Other Financing Obligations Balances for assets acquired under capital lease obligations and included in property and equipment were as follows (in thousands): September 30, December 31, Computer and network equipment $ 511 $ 511 Furniture 287 287 Assets acquired under capital lease obligations 798 798 Accumulated depreciation (728 ) (613 ) Assets acquired under capital lease obligations, net $ 70 $ 185 The current and long-term portions of capital leases and other financing obligations were as follows (in thousands): September 30, December 31, Capital leases and other financing obligations, current $ 144 $ 1,047 Capital leases and other financing obligations, non-current — 3 Total capital leases and other financing obligations $ 144 $ 1,050 The Company leases certain of its facilities and some of its equipment under non-cancelable operating lease arrangements. The rental payments under these leases are charged to expense on a straight-line basis over the non-cancelable term of the lease. Future minimum payments under capital lease obligations, other financing obligations, and non-cancelable operating leases, excluding property taxes and other operating expenses, as of September 30, 2018 are as follows (in thousands): Capital leases and other financing obligations Operating leases Total Remainder of 2018 $ 62 $ 150 $ 212 2019 86 585 671 2020 — 458 458 2021 — 466 466 2022 — 425 425 Thereafter — 23 23 Total minimum lease payments 148 $ 2,107 $ 2,255 Less amount representing interest (4 ) Present value of net minimum lease payments $ 144 Lease Contract Termination The Company determined that it had excess capacity at its Minneapolis, Minnesota headquarters and effective May 1, 2018 ceased using a portion of its leased space, subsequently making it available for sublessee occupancy. The Company entered into a sublease agreement having a term beginning May 1, 2018 and extending through January 2023. Accordingly, the Company recorded a liability at fair value of $224,000 for the future contractual lease payments, net of expected sublease receipts. Included in other income (expenses) for the nine months ended September 30, 2018 is the loss related to the leasing-related exit activity of $177,000 , which is net of adjustments for the derecognition of leasehold improvement and deferred rent balances related to the exit activity. A reconciliation of the beginning and ending contract termination obligation balances, including the obligation for exit activities related to a portion of the Company's London, England leased office facilities in December 2017, is as follows (in thousands): Three Months Ended Nine Months Ended London, England Minneapolis, Minnesota Total London, England Minneapolis, Minnesota Total Contract termination obligation, beginning of period $ 103 $ 214 $ 317 $ 194 $ — $ 194 Lease termination costs incurred — — — — 224 224 Accretion expense 3 6 9 12 10 22 Payments on obligations (50 ) (12 ) (62 ) (150 ) (26 ) (176 ) Change in currency exchange rate (2 ) — (2 ) (2 ) — (2 ) Contract termination obligation, end of period $ 54 $ 208 $ 262 $ 54 $ 208 $ 262 The contract termination obligation is included in other accrued liabilities in the Company's consolidated balance sheets. Term Loans The Company's term loans are reported in the consolidated balance sheets as follows (in thousands): September 30, December 31, Term loan, at face value $ 4,000 $ 8,000 Unamortized original issue discount (589 ) (121 ) Unamortized debt issuance costs (107 ) (274 ) Term loan $ 3,304 $ 7,605 Credit Agreement – ESW Holdings, Inc. On January 12, 2018, the Company and its wholly-owned subsidiary, Qumu, Inc., entered into a term loan credit agreement (the “ESW credit agreement”) with ESW Holdings, Inc. as lender and administrative agent pursuant to which the Company borrowed $10.0 million in the form of a term loan. Proceeds from the ESW credit agreement were used to pay the remaining outstanding balance of $8.0 million on the Hale term note plus a 10% prepayment penalty of $800,000 on January 12, 2018. On July 19, 2018, the Company paid $6.5 million on its outstanding term loan from ESW Holdings, Inc. under its term loan credit agreement dated January 12, 2018. The payment was comprised of principal of $6.0 million and accrued interest of $463,000 for the period January 12, 2018 to the payment date of July 19, 2018. The Company used a portion of the $9.6 million in net proceeds from the sale of its investment in BriefCam to fund the prepayment. Under the term loan credit agreement, any voluntary prepayment by the Company from the net proceeds received from the disposition of the Company’s investment in BriefCam will not trigger a prepayment fee. The Company determined that the prepayment of principal constituted a partial extinguishment of debt and, as such, recognized a $1.2 million loss related to the write down of unamortized debt discount and issuance costs. The term loan is scheduled to mature on January 10, 2020. Interest accrues and compounds monthly at a variable rate per annum equal to the prime rate plus 4.0% . The Company may prepay the term loan at any time with the payment of a prepayment fee of 10% of the amount prepaid. However, no prepayment fee will be incurred for any prepayment made from the proceeds of the Company’s sale of its investment in BriefCam. The term loan had an estimated fair value of $3.4 million as of September 30, 2018 . The fair value of the term loan is estimated using a discounted cash flow analysis based on the Company’s current incremental borrowing rate. As the contractual terms of the loan provide all the necessary inputs for this calculation, the term loan is classified as Level 2 within the fair value hierarchy. The estimated fair value is not necessarily indicative of the amount that would be realized in a current market exchange. Credit Agreement – Hale Capital Partners, LP The term loan balance as of December 31, 2017 consisted of a term loan credit agreement (the “Hale credit agreement”) with HCP-FVD, LLC as lender and Hale Capital Partners, LP as administrative agent, under which the Company borrowed $8.0 million as a term loan on October 21, 2016. The term loan was scheduled to mature on October 21, 2019 and required payment of interest monthly at the prime rate plus 6.0% . The term loan required a prepayment fee of 10% of the amount prepaid. On January 12, 2018, the Company repaid all outstanding obligations under the Hale credit agreement using $8.8 million of the $10.0 million term loan proceeds provided through the ESW credit agreement. Concurrently with such repayment, the Hale credit agreement terminated by its terms effective January 12, 2018. Covenant Compliance The ESW credit agreement contains affirmative and negative covenants and requirements relating to the Company and its operations. The negative covenants of the ESW credit agreement require the Company to meet financial covenants beginning with the quarter ended September 30, 2018 relating to minimum core bookings, maximum deferred revenue non-current, minimum subscription, and maintenance and support revenue, and minimum subscription and maintenance and support dollar renewal rates. The Company was in compliance with all financial covenants for the quarter ended September 30, 2018 . The Company’s monthly, quarterly and annual results of operations are subject to significant fluctuations due to a variety of factors, many of which are outside of the Company’s control. These factors include the number and mix of products and solutions sold in the period, timing of customer purchase commitments, including the impact of long sales cycles and seasonal buying patterns, and variability in the size of customer purchases and the impact of large customer orders on a particular period. The foregoing factors are difficult to forecast, and these, as well as other factors, could adversely affect the Company’s monthly, quarterly and annual results of operations. Failure to achieve its monthly, quarterly or annual forecasts may result in the Company being out of compliance with covenants or projecting noncompliance in the future. Management actively monitors its opportunity pipeline, forecast, and projected covenant compliance on an ongoing basis. Contingencies The Company is exposed to a number of asserted and unasserted claims encountered in the normal course of business. Legal costs related to loss contingencies are expensed as incurred. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company’s financial position or results of operations. The Company’s standard arrangements include provisions indemnifying customers against liabilities if the Company's products infringe a third-party’s intellectual property rights. The Company has not incurred any costs in its continuing operations as a result of such indemnifications and has not accrued any liabilities related to such contingent obligations in the accompanying condensed consolidated financial statements.

Fair Value Measurements (Notes)

Fair Value Measurements (Notes)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements A hierarchy for inputs used in measuring fair value is in place that distinguishes market data between observable independent market inputs and unobservable market assumptions by the reporting entity. The hierarchy is intended to maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that the most observable inputs be used when available. Three levels within the hierarchy may be used to measure fair value: • Level 1: Inputs are unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2: Inputs include data points that are observable such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) such as interest rates and yield curves that are observable for the asset or liability, either directly or indirectly. • Level 3: Inputs are generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect an entity’s own estimates of assumptions that market participants would use in pricing the asset or liability. In conjunction with the debt financings completed in October 2016 and January 2018, the Company issued two warrants for the purchase of up to an aggregate of 1,239,286 shares of the Company's common stock, which remained unexercised and outstanding at September 30, 2018 . The warrant issued in conjunction with the October 21, 2016 debt financing (Hale warrant) for the purchase of up to 314,286 shares of the Company's common stock expires on October 21, 2026, has an exercise price of $2.80 per share and is transferable. The warrant issued in conjunction with the January 12, 2018 debt financing (ESW warrant) for the purchase of up to 925,000 shares of the Company's common stock expires on January 12, 2028, has an exercise price of $1.96 per share and is transferable. Additionally, the Company issued a warrant to a sales partner, iStudy Co., Ltd., for the purchase of up to 100,000 shares of the Company's common stock; the warrant expires on August 31, 2028, has an exercise price of $2.43 per share and is transferable. The Hale warrant and ESW warrant contain a cash settlement feature upon the occurrence of a certain events, essentially the sale of the Company as defined in the warrant agreements. Upon a sale of the Company, the holder of the iStudy warrant may exercise the warrant or may elect to receive the same consideration as it would have been entitled to receive upon the occurrence of such transaction if it had been the holder of the shares then issuable upon such exercise of the warrant. As a result of these features, the warrants are subject to derivative accounting as prescribed under ASC 815. Accordingly, the fair value of the warrants on the dates of issuance were recorded in the Company’s consolidated balance sheets as a liability. The warrant liability was recorded in the Company's consolidated balance sheets at its fair value on the respective dates of issuance and is revalued on each subsequent balance sheet date until such instrument is exercised or expires, with any changes in the fair value between reporting periods recorded as other income or expense. The Company recorded a non-cash gain (loss) of $(401,000) and $15,000 during the three months ended September 30, 2018 and 2017 , respectively, and a non-cash loss of $(292,000) and $(52,000) during the nine months ended September 30, 2018 and 2017 , respectively, from the change in fair value of the warrant liability. The increase in fair value for the three and nine months ended September 30, 2018 was primarily driven by a corresponding increase in the Company’s stock price. The decrease in fair value during the three months ended September 30, 2017 was primarily driven by decreased volatility in the Company’s stock price and the increase in fair value during the nine months ended September 30, 2017 was primarily driven by an increase in the Company’s stock price. The Company estimates the fair value of this liability using option pricing models that are based on the individual characteristics of the warrants on the valuation date, which includes assumptions for expected volatility, expected life and risk-free interest rate, as well as the present value of the minimum cash payment component of the Hale and ESW warrants. Changes in the assumptions used could have a material impact on the resulting fair value. The primary inputs affecting the value of the warrant liability are the Company’s stock price and volatility in the Company's stock price, as well as assumptions about the probability and timing of certain events, such as a change in control or future equity offerings. Increases in the fair value of the underlying stock or increases in the volatility of the stock price generally result in a corresponding increase in the fair value of the warrant liability; conversely, decreases in the fair value of the underlying stock or decreases in the volatility of the stock price generally result in a corresponding decrease in the fair value of the warrant liability. The Company’s liabilities measured at fair value on a recurring basis and the fair value hierarchy utilized to determine such fair values is as follows at September 30, 2018 and December 31, 2017 (in thousands): Fair Value Measurements Using Total Fair Quoted Prices in Significant Other Significant Liabilities: Derivative warrant liability - ESW warrant $ 2,572 $ — $ — $ 2,572 Derivative warrant liability - Hale warrant 691 — — 691 Derivative warrant liability - iStudy 195 — — 195 Derivative warrant liabilities $ 3,458 $ — $ — $ 3,458 Fair Value Measurements Using Total Fair Quoted Prices in Significant Other Significant Liabilities: Derivative warrant liability - Hale warrant $ 819 $ — $ — $ 819 The Company classified the warrant liabilities as Level 3 due to the lack of relevant observable market data over fair value inputs such as the probability-weighting of the various scenarios in the arrangements. The following table represents a rollforward of the fair value of the Level 3 instruments (significant unobservable inputs): Balance at December 31, 2017 $ 819 Additions to warrant liability 2,347 Change in fair value 292 Balance at September 30, 2018 $ 3,458

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company granted the following stock-based awards: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Stock options 3,500 30,000 544,000 165,000 Restricted stock awards and restricted stock units — — 180,000 212,500 Performance stock units — — 168,500 166,149 The stock options, restricted stock awards and performance stock units granted during the three and nine months ended September 30, 2018 and 2017 were granted under the Company's Second Amended and Restated 2007 Stock Incentive Plan (the "2007 Plan"), a shareholder approved plan. Of the 166,149 performance stock units granted in connection with the Company's 2017 short-term incentive plan ("2017 Incentive Plan"), 116,168 vested during the three months ended March 31, 2018. In settlement of the performance stock units, during the three months ended March 31, 2018, the Company issued 25,726 shares, which is equal to the number of performance stock units vested multiplied by the weighted percentage achievement of the performance goals for the 2017 Incentive Plan of approximately 22.1% . During the nine months ended September 30, 2018 , the Company’s shareholders approved an amendment to the 2007 Plan to increase the number of shares authorized under the plan by 500,000 to a total of 3,230,320 shares. The Company recognized the following expense related to its share-based payment arrangements (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Stock-based compensation cost, before income tax benefit: Stock options $ 105 $ 121 $ 225 $ 365 Restricted stock awards and restricted stock units 140 186 458 605 Performance stock units 84 — 84 120 Total stock-based compensation $ 329 $ 307 $ 767 $ 1,090 Three Months Ended Nine Months Ended 2018 2017 2018 2017 Stock-based compensation cost included in: Cost of revenues $ 8 $ (3 ) $ 26 $ 29 Operating expenses 321 310 741 1,061 Total stock-based compensation $ 329 $ 307 $ 767 $ 1,090

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income taxes	Income Taxes As of September 30, 2018 and December 31, 2017 , the Company’s liability for gross unrecognized tax benefits totaled $1.7 million and $1.1 million , respectively (excluding interest and penalties). The Company had accrued interest and penalties relating to unrecognized tax benefits of $5,300 and $1,400 on a gross basis at September 30, 2018 and December 31, 2017 , respectively. The change in the liability for gross unrecognized tax benefits reflects an increase in reserves established for federal and state uncertain tax positions. The Company does not currently expect significant changes in the amount of unrecognized tax benefits during the next twelve months. Additionally, during the three months ended September 30, 2018, the Company finalized the provisional estimates recorded at December 31, 2017, in connection with the Tax Cuts and Jobs Act of 2017. The estimates were finalized due to the completion of the 2017 federal income tax return. No tax impact was recorded as a result of the finalization of the provisional estimates.

Computation of Net Loss Per Sha

Computation of Net Loss Per Share of Common Stock	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Computation of Net Loss Per Share of Common Stock	Computation of Net Income (Loss) Per Share of Common Stock The following table identifies the components of net loss per basic and diluted share (in thousands, except for per share data): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net income (loss) per share – basic Net income (loss) $ 2,396 $ (2,309 ) $ (3,665 ) $ (8,482 ) Weighted average shares outstanding – basic 9,559 9,404 9,472 9,335 Net income (loss) per share – basic $ 0.25 $ (0.25 ) $ (0.39 ) $ (0.91 ) Net income (loss) per share – diluted Income (loss) attributable to common shareholders $ 2,396 $ (2,309 ) $ (3,665 ) $ (8,482 ) Weighted average shares outstanding – diluted: Weighted average shares outstanding – basic 9,559 9,404 9,472 9,335 Denominator effect of dilutive securities Unvested restricted stock units 150 — — — Diluted potential common shares 150 — — — Weighted average shares outstanding – diluted 9,709 9,404 9,472 9,335 Net income (loss) per share – diluted $ 0.25 $ (0.25 ) $ (0.39 ) $ (0.91 ) Stock options, warrants and restricted stock units to acquire common shares excluded from the computation of diluted weighted-average common shares as their effect is anti-dilutive were as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Stock options 1,334 1,540 1,261 1,544 Warrants 1,273 314 1,213 314 Restricted stock units — 150 150 135 Total anti-dilutive 2,607 2,004 2,624 1,993

Investment in Software Company

Investment in Software Company	9 Months Ended
	Sep. 30, 2018
Investments, All Other Investments [Abstract]
Investment in Software Company	Investment in Software Company As of December 31, 2017 , the Company held an investment totaling $3.1 million in convertible preferred stock of BriefCam, Ltd., a privately-held Israeli company that develops video synopsis technology to augment security and surveillance systems to facilitate review of surveillance video. On May 7, 2018, BriefCam, Canon Inc. (“Canon”), and the shareholders of BriefCam, including the Company, entered into a stock purchase agreement by which Canon would acquire all of the outstanding shares of BriefCam. On July 3, 2018, BriefCam announced that Canon had completed its acquisition of BriefCam and, on July 6, 2018, the Company received $9,678,000 from the closing proceeds for its shares of BriefCam, resulting in a gain on sale of $6.5 million during the three and nine months ended September 30, 2018 . Prior to its sale, the investment did not have a readily determinable fair value and was recorded at cost, less impairment, if any, plus or minus changes resulting from observable price changes in market-based transactions for an identical or similar investment of the same issuer and is included in other non-current assets. The Company's ownership interest was less than 20% . From the date of the Company's adoption of ASU 2016-01, Financial Instruments – Overall , on January 1, 2018 to the sale of BriefCam, there were no observable price changes or impairments related to the Company’s non-marketable investment in the equity security. The gain on sale is taxable in the U.S. and is offset for federal income tax purposes by current or prior-year tax losses but is subject to applicable state income taxes. The gain on sale is not taxable in Israel.

Revenue (Policies)

Revenue (Policies)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Significant Judgments More judgments and estimates are required under Topic 606 than were required under Topic 605. Due to the complexity of certain contracts, the actual revenue recognition treatment required under Topic 606 for the Company’s arrangements may be dependent on contract-specific terms and may vary in some instances. Our contracts with customers typically contain promises to transfer multiple products and services to a customer. Judgment is required to determine whether each product and/or service is considered to be a distinct performance obligation that should be accounted for separately under the contract. We allocate the transaction price to the distinct performance obligations based on relative standalone selling price (“SSP”). We estimate SSP by maximizing use of observable prices such as the prices charged to customers on a standalone basis, established prices lists, contractually stated prices, profit margins and other entity-specific factors, or by using information such as market conditions and other observable inputs. However, the selling prices of the Company's software licenses and cloud-hosted SaaS arrangements are highly variable. Thus, we estimate SSP for software licenses and cloud-hosted SaaS arrangements using the residual approach, determined based on total transaction price less the SSP of other goods and services promised in the contract. Determining whether licenses and services are distinct performance obligations that should be accounted for separately, or not distinct and thus accounted for together, requires significant judgment. In some arrangements, such as most of the Company’s license arrangements, the Company has concluded that the licenses and associated services are distinct from each other. In others, like the Company’s cloud-hosted SaaS arrangements, the license and certain services are not distinct from each other and therefore the Company has concluded that these promised goods and services are a single, combined performance obligation. If a group of agreements are so closely related that they are, in effect, part of a single arrangement, such agreements are deemed to be one arrangement for revenue recognition purposes. The Company exercises significant judgment to evaluate the relevant facts and circumstances in determining whether the separate agreements should be accounted for separately or as, in substance, a single arrangement. The Company’s judgments about whether a group of contracts comprise a single arrangement can affect the allocation of consideration to the distinct performance obligations, which could have an effect on results of operations for the periods involved. The Company is required to estimate the total consideration expected to be received from contracts with customers. In limited circumstances, the consideration expected to be received is variable based on the specific terms of the contract or based on the Company’s expectations of the term of the contract. Generally, the Company has not experienced significant returns from or refunds to customers. These estimates require significant judgment and the change in these estimates could have an effect on its results of operations during the periods involved. Revenue The Company generates revenue through the sale of enterprise video content management software, hardware, maintenance and support, and professional and other services. Software sales may take the form of a perpetual software license, a cloud-hosted software as a service (SaaS) or a term software license. Software licenses and appliances revenue includes sales of perpetual software licenses and hardware. Service revenue includes SaaS, term software licenses, maintenance and support, and professional and other services. An individual sale can range from single year agreements for thousands of dollars to multi-year agreements for over a million dollars. The Company follows a five-step model to assess each contract of a sale or service to a customer: identify the legally binding contract, identify the performance obligations, determine the transaction price, allocate the transaction price, and determine whether revenue will be recognized at a point in time or over time basis. Revenue is recognized upon transfer of control of promised products or services (i.e., performance obligations) to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for promised goods or services. The Company’s performance obligations are satisfied either over time (for cloud-hosted software as a service, maintenance and support, and other services) or at a point in time (for software licenses and hardware). The Company enters into contracts that can include various combinations of software licenses, appliances, maintenance and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each distinct performance obligation, on a relative basis using its standalone selling price. The Company determines the standalone selling price for software-related elements, including professional services and software maintenance and support contracts, based on the price charged for the deliverable when sold separately. With the adoption of Topic 606 beginning January 1, 2018, the Company had a change in the accounting for revenue of its on-premise term software license arrangements. Under Topic 605, the term software license and technical support elements of the combined bundle were recognized over time. In contrast, Topic 606 requires the Company to identify the performance obligations in the contract – that is, those promised goods and services (or bundles of promised goods or services) that are distinct – and allocate the transaction price of the contract to those performance obligations on the basis of standalone selling prices. The transaction price allocated to each performance obligation is then recognized either at a point in time or over time using an appropriate measure of progress. Under Topic 606, the Company has concluded that its on-premise term software licenses and technical support for its on-premise term software licenses are distinct from each other. As a result, the software license is now recognized upon transfer of control, which is at fulfillment, resulting in earlier revenue recognition. The revenue allocable to technical support continues to be recognized ratably over the non-cancellable committed term of the agreement. Other items relating to charges collected from customers include shipping and handling charges and sales taxes charges. Shipping and handling charges collected from customers as part of the Company's sales transactions are included in revenues and the associated costs are included in cost of revenues. Sales taxes charged to and collected from customers as part of the Company’s sales transactions are excluded from revenues and recorded as a liability to the applicable governmental taxing authority. Nature of Products and Services Perpetual software licenses The Company’s perpetual software license arrangements grant customers the right to use the software indefinitely as it exists at the time of purchase. The Company recognizes revenue for distinct software licenses once the license period has begun and the software has been made available to the customer. Payments for perpetual software license contracts are generally received upon fulfillment of the software product. Term software licenses The Company's term software licenses differ from perpetual software licenses in that the customer's right to use the licensed product has a termination date. Prior to the adoption of Topic 606, these licenses were recognized ratably over the contractual term, beginning on the commencement date of each contract, which is typically the date the Company’s product has been fulfilled. Under the provisions of Topic 606, term software licenses are now recognized upon transfer of control, which is typically at fulfillment, resulting in up-front revenue recognition. The Company categorizes revenue from term software licenses as subscription, maintenance and support revenue in service revenues. Payments are generally received quarterly or annually in equal or near equal installments over the term of the agreement. Cloud-hosted software as a service Cloud-hosted software as a service (SaaS) arrangements grant customers the right to access and use the licensed products at the outset of an arrangement via third-party cloud providers. Updates are generally made available throughout the entire term of the arrangement, which is generally one to three years. The Company provides an online library and technical support resources in these cloud-hosted SaaS arrangements, which in conjunction with the SaaS license constitute a single, combined performance obligation, and revenue is recognized over the term of the license. Payments are generally received annually in advance of the service period. Hardware The Company sells appliances that are typically drop shipped from third-party suppliers selected by the Company. The transaction price allocated to the appliance is generally recognized as revenue at fulfillment when the customer obtains control of the product. Payments for appliances are generally received upon delivery of the hardware product. Maintenance and support Maintenance and support arrangements grant customers the right to software updates and technical support over the term of the maintenance and support contract. Revenue from maintenance and support is generally recognized ratably over the contract term beginning on the commencement date of each contract, which is upon fulfillment of the software obligation. Payments are generally received annually in advance of the service period. Professional services and training Professional services and training generally consist of software implementation, on-boarding services and best practices consulting. Revenue from professional services contracts is typically recognized as performed, generally using hours expended to measure progress. Services are generally invoiced monthly for work performed.

Nature of Business and Basis _2

Nature of Business and Basis of Presentation Accounting Standards Recently Adopted (Tables)	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Error Corrections and Prior Period Adjustments	The cumulative effect of the changes made to our January 1, 2018 condensed consolidated balance sheet from the modified retrospective adoption of Topic 606 is as follows (in thousands): December 31, Adjustments January 1, Assets: Contract assets $ — $ 550 $ 550 Prepaid expenses and other current assets 1,830 (99 ) 1,731 Other assets, non-current 4,398 (10 ) 4,388 Liabilities: Deferred revenue 8,923 (493 ) 8,430 Deferred revenue, non-current 141 — 141 Stockholders’ equity: Accumulated deficit (56,197 ) 939 (55,258 ) Accumulated other comprehensive loss (2,740 ) (5 ) (2,745 )
Recently Issued Accounting Standards	The following table summarizes the effects of adopting Topic 606 on the Company’s condensed consolidated statement of operations and comprehensive income (loss) for the three and nine months ended September 30, 2018 : Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 Revenues $ 5,653 $ 153 $ 5,806 $ 18,110 $ 577 $ 18,687 Cost of revenues 2,115 6 2,121 6,633 24 6,657 Sales and marketing 1,796 12 1,808 6,388 50 6,438 Net income (loss) 2,396 135 2,531 (3,665 ) 503 (3,162 ) Net change in foreign currency translation adjustments (87 ) 2 (85 ) (233 ) 12 (221 ) Total comprehensive income (loss) 2,309 137 2,446 (3,898 ) 515 (3,383 ) The following table summarizes the effects of adopting Topic 606 on the Company’s condensed consolidated balance sheet as of September 30, 2018 : September 30, 2018 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 Assets: Contract assets 156 (156 ) — Prepaid expenses and other current assets 1,932 33 1,965 Other assets, non-current 925 2 927 Liabilities: Deferred revenue 9,114 299 9,413 Deferred revenue, non-current 1,483 (1 ) 1,482 Stockholders’ equity: Accumulated deficit (58,923 ) (436 ) (59,359 ) Accumulated other comprehensive loss (2,978 ) 17 (2,961 ) The Company’s net cash used in operating activities for the nine months ended September 30, 2018 did not change due to the adoption of Topic 606. The following table summarizes the effects of adopting Topic 606 on the financial statement line items of the Company’s condensed consolidated statement of cash flows for the nine months ended September 30, 2018 : Nine Months Ended September 30, 2018 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 Operating activities: Net loss $ (3,665 ) $ 503 $ (3,162 ) Adjustments to reconcile net loss to net cash used in operating activities: Changes in operating assets and liabilities: Contract assets 394 (394 ) — Prepaid expenses and other assets 291 74 365 Deferred revenue 2,283 (183 ) 2,100

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	The Company combines its products and services into three product categories and three geographic regions, based on customer location, as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Software licenses and appliances $ 985 $ 1,822 $ 4,303 $ 3,971 Service Subscription, maintenance and support 4,091 5,113 12,251 15,061 Professional services and other 577 638 1,556 1,906 Total service 4,668 5,751 13,807 16,967 Total revenues $ 5,653 $ 7,573 $ 18,110 $ 20,938 Three Months Ended Nine Months Ended 2018 2017 2018 2017 North America $ 3,766 $ 5,771 $ 11,593 $ 15,194 Europe 1,618 1,566 4,693 5,174 Asia 269 236 1,824 570 Total $ 5,653 $ 7,573 $ 18,110 $ 20,938

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of acquired intangible assets (excluding goodwill)	The Company’s amortizable intangible assets consisted of the following (in thousands): September 30, 2018 Customer Relationships Developed Technology Trademarks / Trade-Names Total Original cost $ 4,860 $ 8,100 $ 2,181 $ 15,141 Accumulated amortization (2,598 ) (6,974 ) (908 ) (10,480 ) Net identifiable intangible assets $ 2,262 $ 1,126 $ 1,273 $ 4,661 December 31, 2017 Customer Relationships Developed Technology Trademarks / Trade-Names Total Original cost $ 4,928 $ 8,225 $ 2,184 $ 15,337 Accumulated amortization (2,194 ) (6,043 ) (805 ) (9,042 ) Net identifiable intangible assets $ 2,734 $ 2,182 $ 1,379 $ 6,295 Changes to the carrying amount of net amortizable intangible assets for the nine months ended September 30, 2018 consisted of the following (in thousands): Nine Months Ended Balance, beginning of period $ 6,295 Amortization expense (1,559 ) Currency translation (75 ) Balance, end of period $ 4,661
Amortization of acquired intangible assets	Amortization expense of intangible assets consisted of the following (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Amortization expense associated with the developed technology included in cost of revenues $ 288 $ 302 $ 879 $ 893 Amortization expense associated with other acquired intangible assets included in operating expenses 224 226 680 675 Total amortization expense $ 512 $ 528 $ 1,559 $ 1,568

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Capital Leased Assets	Balances for assets acquired under capital lease obligations and included in property and equipment were as follows (in thousands): September 30, December 31, Computer and network equipment $ 511 $ 511 Furniture 287 287 Assets acquired under capital lease obligations 798 798 Accumulated depreciation (728 ) (613 ) Assets acquired under capital lease obligations, net $ 70 $ 185
Schedule of Debt	The current and long-term portions of capital leases and other financing obligations were as follows (in thousands): September 30, December 31, Capital leases and other financing obligations, current $ 144 $ 1,047 Capital leases and other financing obligations, non-current — 3 Total capital leases and other financing obligations $ 144 $ 1,050
Schedule of Future Minimum Lease Payments for Capital Leases	Future minimum payments under capital lease obligations, other financing obligations, and non-cancelable operating leases, excluding property taxes and other operating expenses, as of September 30, 2018 are as follows (in thousands): Capital leases and other financing obligations Operating leases Total Remainder of 2018 $ 62 $ 150 $ 212 2019 86 585 671 2020 — 458 458 2021 — 466 466 2022 — 425 425 Thereafter — 23 23 Total minimum lease payments 148 $ 2,107 $ 2,255 Less amount representing interest (4 ) Present value of net minimum lease payments $ 144
Schedule of Restructuring Reserve by Type of Cost [Table Text Block]	A reconciliation of the beginning and ending contract termination obligation balances, including the obligation for exit activities related to a portion of the Company's London, England leased office facilities in December 2017, is as follows (in thousands): Three Months Ended Nine Months Ended London, England Minneapolis, Minnesota Total London, England Minneapolis, Minnesota Total Contract termination obligation, beginning of period $ 103 $ 214 $ 317 $ 194 $ — $ 194 Lease termination costs incurred — — — — 224 224 Accretion expense 3 6 9 12 10 22 Payments on obligations (50 ) (12 ) (62 ) (150 ) (26 ) (176 ) Change in currency exchange rate (2 ) — (2 ) (2 ) — (2 ) Contract termination obligation, end of period $ 54 $ 208 $ 262 $ 54 $ 208 $ 262
Schedule of Long-term Debt Instruments	The Company's term loans are reported in the consolidated balance sheets as follows (in thousands): September 30, December 31, Term loan, at face value $ 4,000 $ 8,000 Unamortized original issue discount (589 ) (121 ) Unamortized debt issuance costs (107 ) (274 ) Term loan $ 3,304 $ 7,605

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	The Company’s liabilities measured at fair value on a recurring basis and the fair value hierarchy utilized to determine such fair values is as follows at September 30, 2018 and December 31, 2017 (in thousands): Fair Value Measurements Using Total Fair Quoted Prices in Significant Other Significant Liabilities: Derivative warrant liability - ESW warrant $ 2,572 $ — $ — $ 2,572 Derivative warrant liability - Hale warrant 691 — — 691 Derivative warrant liability - iStudy 195 — — 195 Derivative warrant liabilities $ 3,458 $ — $ — $ 3,458 Fair Value Measurements Using Total Fair Quoted Prices in Significant Other Significant Liabilities: Derivative warrant liability - Hale warrant $ 819 $ — $ — $ 819
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]	The following table represents a rollforward of the fair value of the Level 3 instruments (significant unobservable inputs): Balance at December 31, 2017 $ 819 Additions to warrant liability 2,347 Change in fair value 292 Balance at September 30, 2018 $ 3,458

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule Of Share-Based Payment Arrangements	The Company granted the following stock-based awards: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Stock options 3,500 30,000 544,000 165,000 Restricted stock awards and restricted stock units — — 180,000 212,500 Performance stock units — — 168,500 166,149
Schedule of Allocation of Share-based Compensation Costs by Plan	The Company recognized the following expense related to its share-based payment arrangements (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Stock-based compensation cost, before income tax benefit: Stock options $ 105 $ 121 $ 225 $ 365 Restricted stock awards and restricted stock units 140 186 458 605 Performance stock units 84 — 84 120 Total stock-based compensation $ 329 $ 307 $ 767 $ 1,090 Three Months Ended Nine Months Ended 2018 2017 2018 2017 Stock-based compensation cost included in: Cost of revenues $ 8 $ (3 ) $ 26 $ 29 Operating expenses 321 310 741 1,061 Total stock-based compensation $ 329 $ 307 $ 767 $ 1,090

Computation of Net Loss Per S_2

Computation of Net Loss Per Share of Common Stock (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Components Of Net Income (Loss) Per Basic And Diluted Share	The following table identifies the components of net loss per basic and diluted share (in thousands, except for per share data): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net income (loss) per share – basic Net income (loss) $ 2,396 $ (2,309 ) $ (3,665 ) $ (8,482 ) Weighted average shares outstanding – basic 9,559 9,404 9,472 9,335 Net income (loss) per share – basic $ 0.25 $ (0.25 ) $ (0.39 ) $ (0.91 ) Net income (loss) per share – diluted Income (loss) attributable to common shareholders $ 2,396 $ (2,309 ) $ (3,665 ) $ (8,482 ) Weighted average shares outstanding – diluted: Weighted average shares outstanding – basic 9,559 9,404 9,472 9,335 Denominator effect of dilutive securities Unvested restricted stock units 150 — — — Diluted potential common shares 150 — — — Weighted average shares outstanding – diluted 9,709 9,404 9,472 9,335 Net income (loss) per share – diluted $ 0.25 $ (0.25 ) $ (0.39 ) $ (0.91 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Stock options, warrants and restricted stock units to acquire common shares excluded from the computation of diluted weighted-average common shares as their effect is anti-dilutive were as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Stock options 1,334 1,540 1,261 1,544 Warrants 1,273 314 1,213 314 Restricted stock units — 150 150 135 Total anti-dilutive 2,607 2,004 2,624 1,993

Nature of Business and Basis _3

Nature of Business and Basis of Presentation (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)segment	Sep. 30, 2017USD ($)	Dec. 31, 2018USD ($)	Jan. 01, 2018USD ($)	Dec. 31, 2017USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated deficit	$ (58,923)		$ (58,923)			$ (55,258)	$ (56,197)
Contract assets	156		156			550	0
Prepaid expenses and other current assets	1,932		1,932			1,731	1,830
Other assets, non-current	925		925			4,388	4,398
Deferred revenue	9,114		9,114			8,430	8,923
Deferred revenue, non-current	1,483		1,483			141	141
Accumulated other comprehensive loss	(2,978)		(2,978)			(2,745)	(2,740)
Revenues	5,653	$ 7,573	18,110	$ 20,938
Cost of revenues	2,115	2,911	6,633	7,781
Sales and marketing	1,796	2,509	6,388	7,484
Net loss	2,396	(2,309)	(3,665)	(8,482)
Net change in foreign currency translation adjustments	(87)	405	(233)	1,101
Total comprehensive loss	2,309	(1,904)	(3,898)	(7,381)
Contract assets			394	0
Prepaid expenses and other assets			291	1,070
Deferred revenue			2,283	151
Gain on sale of BriefCam, Ltd.	6,502	$ 0	$ 6,502	$ 0
Number of reportable segments | segment			1
Difference between Revenue Guidance in Effect before and after Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net loss			$ 503
Contract assets			(394)
Prepaid expenses and other assets			74
Deferred revenue			(183)
Calculated under Revenue Guidance in Effect before Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated deficit	(59,359)		(59,359)
Contract assets	0		0
Prepaid expenses and other current assets	1,965		1,965
Other assets, non-current	927		927
Deferred revenue	9,413		9,413
Deferred revenue, non-current	1,482		1,482
Accumulated other comprehensive loss	(2,961)		(2,961)
Revenues	5,806		18,687
Cost of revenues	2,121		6,657
Sales and marketing	1,808		6,438
Net loss	2,531		(3,162)
Net change in foreign currency translation adjustments	(85)		(221)
Total comprehensive loss	2,446		(3,383)
Contract assets			0
Prepaid expenses and other assets			365
Deferred revenue			2,100
BriefCam Ltd
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost method investments	3,100		3,100				$ 3,100
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated deficit	(436)		(436)			939
Contract assets	(156)		(156)			550
Prepaid expenses and other current assets	33		33			(99)
Other assets, non-current	2		2			(10)
Deferred revenue	299		299			(493)
Deferred revenue, non-current	(1)		(1)			0
Accumulated other comprehensive loss	17		17			$ (5)
Revenues	153		577
Cost of revenues	6		24
Sales and marketing	12		50
Net loss	135		503
Net change in foreign currency translation adjustments	2		12
Total comprehensive loss	137		515
Scenario, Forecast | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues					$ 1,100
BriefCam, Canon Inc
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Gain on sale of BriefCam, Ltd.	$ 6,500		$ 6,500

Revenue Disaggregation of Reven

Revenue Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 5,653	$ 7,573	$ 18,110	$ 20,938
North America
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	3,766	5,771	11,593	15,194
Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1,618	1,566	4,693	5,174
Asia
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	269	236	1,824	570
Software licenses and appliances
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	985	1,822	4,303	3,971
Subscription, maintenance and support
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	4,091	5,113	12,251	15,061
Professional services and other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	577	638	1,556	1,906
Total service
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 4,668	$ 5,751	$ 13,807	$ 16,967

Revenue Narrative (Details)

Revenue Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract assets, current	$ 156	$ 156	$ 550	$ 0
Contract with customer, liability	10,600	10,600	$ 8,600
Contract with customer, revenue recognized	3,800	7,300
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	11,000	11,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 17,300	$ 17,300

Revenue Contract Acquisition Co

Revenue Contract Acquisition Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Capitalized Contract Cost [Line Items]
Capitalized contract cost, amortization	$ 212	$ 479	$ 943	$ 1,300
Deferred Commissions
Capitalized Contract Cost [Line Items]
Capitalized contract costs, current	366		366		$ 308
Capitalized contract costs, noncurrent	$ 36		$ 36		$ 47

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Components Intangible Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Original cost	$ 15,141	$ 15,337
Accumulated amortization	(10,480)	(9,042)
Net identifiable intangible assets	4,661	6,295
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Original cost	4,860	4,928
Accumulated amortization	(2,598)	(2,194)
Net identifiable intangible assets	2,262	2,734
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Original cost	8,100	8,225
Accumulated amortization	(6,974)	(6,043)
Net identifiable intangible assets	1,126	2,182
Trademarks / Trade-Names
Finite-Lived Intangible Assets [Line Items]
Original cost	2,181	2,184
Accumulated amortization	(908)	(805)
Net identifiable intangible assets	$ 1,273	$ 1,379

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Intangible Assets Rollforward) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Finite-lived Intangible Assets [Roll Forward]
Balance, beginning of period			$ 6,295
Amortization expense	$ (512)	$ (528)	(1,559)	$ (1,568)
Currency translation			75
Balance, end of period	$ 4,661		$ 4,661

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill (Amortization Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Amortization Expense [Abstract]
Amortization expense associated with the developed technology included in cost of revenues	$ 288	$ 302	$ 879	$ 893
Amortization expense associated with other acquired intangible assets included in operating expenses	224	226	680	675
Amortization expense	$ 512	$ 528	$ 1,559	$ 1,568

Intangible Assets and Goodwil_5

Intangible Assets and Goodwill (Narrative) (Details) - USD ($) $ in Thousands	Oct. 03, 2014	Sep. 30, 2018	Dec. 31, 2017
Goodwill And Intangible Assets [Line Items]
Goodwill		$ 7,132	$ 7,390
Kulu Valley Ltd
Goodwill And Intangible Assets [Line Items]
Goodwill acquired during period	$ 8,800
Intangible assets acquired during the period	$ 6,700
Goodwill		$ 7,100

Commitments and Contingencies_2

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Capital Leased Assets [Line Items]
Capital leased assets, gross	$ 798	$ 798
Accumulated depreciation	(728)	(613)
Assets acquired under capital lease obligations, net	70	185
Computer and network equipment
Capital Leased Assets [Line Items]
Capital leased assets, gross	511	511
Furniture
Capital Leased Assets [Line Items]
Capital leased assets, gross	$ 287	$ 287

Commitments and Contingencies_3

Commitments and Contingencies (Schedule of Capital Leases and Other Financing Obligations) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Capital leases and other financing obligations, current	$ 144	$ 1,047
Capital leases and other financing obligations, non-current	0	3
Total capital leases and other financing obligations	$ 144	$ 1,050

Commitments and Contingencies_4

Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands	Sep. 30, 2018USD ($)
Capital leases and other financing obligations
Remainder of 2018	$ 62
2,019	86
2,020	0
2,021	0
2,022	0
Thereafter	0
Total minimum lease payments	148
Less amount representing interest	(4)
Present value of net minimum lease payments	144
Operating leases
Remainder of 2018	150
2,019	585
2,020	458
2,021	466
2,022	425
Thereafter	23
Total minimum lease payments	2,107
Remainder of 2018	212
2,019	671
2,020	458
2,021	466
2,022	425
Thereafter	23
Total minimum lease payments	$ 2,255

Commitments and Contingencies L

Commitments and Contingencies Lease Contract Termination (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Restructuring Reserve [Roll Forward]
Contract termination obligation, beginning of period	$ 317	$ 194
Lease termination costs incurred	0	224
Accretion expense	9	22
Payments on obligations	(62)	(176)
Change in currency exchange rate	(2)	(2)
Contract termination obligation, end of period	262	262
London, United Kingdom [Member]
Restructuring Reserve [Roll Forward]
Contract termination obligation, beginning of period	103	194
Lease termination costs incurred	0	0
Accretion expense	3	12
Payments on obligations	(50)	(150)
Change in currency exchange rate	2	2
Contract termination obligation, end of period	54	54
Minneapolis Headquarters [Member]
Restructuring Reserve [Roll Forward]
Contract termination obligation, beginning of period	214	0
Lease termination costs incurred	0	224
Accretion expense	6	10
Payments on obligations	(12)	(26)
Change in currency exchange rate	0	0
Contract termination obligation, end of period	$ 208	208
Business Exit Costs		$ 177

Commitments and Contingencies S

Commitments and Contingencies Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Term loan, at face value	$ 4,000	$ 8,000
Unamortized original issue discount	(589)	(121)
Unamortized debt issuance costs	(107)	(274)
Term loan	$ 3,304	$ 7,605

Commitments and Contingencies N

Commitments and Contingencies Narrative (Details) - USD ($) $ in Thousands	Jul. 19, 2018	Jul. 06, 2018	Jan. 12, 2018	Jan. 12, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Oct. 21, 2016
Debt Instrument [Line Items]
Term loan, at face value					$ 4,000		$ 4,000		$ 8,000
Accrued prepayment fee			$ 800	$ 800
Loss on extinguishment of debt					1,189	$ 0	1,189	$ 0
ESW Holdings, Inc.
Debt Instrument [Line Items]
Term loan, at face value			10,000	$ 10,000
Debt instrument, periodic payment	$ 6,500
Debt instrument, periodic payment, principal	6,000
Debt instrument, periodic payment, interest	$ 463
Loss on extinguishment of debt					(1,189)
Debt instrument, basis spread on variable rate				4.00%
Long-term debt, fair value					$ 3,400		$ 3,400
Hale Capital, LLP
Debt Instrument [Line Items]
Term loan, at face value			$ 8,000	$ 8,000						$ 8,000
Debt instrument, basis spread on variable rate			6.00%
Debt instrument, prepayment fee, percentage				10.00%
Payment for debt extinguishment, including prepayment fee				$ 8,800
BriefCam, Canon Inc
Debt Instrument [Line Items]
Sale of investment, consideration transferred, net of estimated tax		$ 9,600

Fair Value Measurements Narrati

Fair Value Measurements Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Aug. 31, 2018	Jan. 12, 2018	Oct. 21, 2016
Fair Value Disclosures [Abstract]
Warrant shares (in shares)	1,239,286		1,239,286		100,000	925,000	314,286
Warrant, exercise price (in dollars per share)					$ 2.43	$ 1.96	$ 2.80
Change in fair value of warrant liability	$ (401)	$ 15	$ (292)	$ (52)

Fair Value Measurements Measure

Fair Value Measurements Measurement Levels (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	$ 3,458
Fair value, measurements, recurring | Quoted Prices in Active Markets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	3,458
ESW Holdings, Inc.
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	2,572
ESW Holdings, Inc. | Fair value, measurements, recurring | Quoted Prices in Active Markets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0
ESW Holdings, Inc. | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0
ESW Holdings, Inc. | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	2,572
Hale Capital, LLP
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	691	$ 819
Hale Capital, LLP | Fair value, measurements, recurring | Quoted Prices in Active Markets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0	0
Hale Capital, LLP | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0	0
Hale Capital, LLP | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	691	$ 819
iStudy Co., Ltd.
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	195
iStudy Co., Ltd. | Fair value, measurements, recurring | Quoted Prices in Active Markets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0
iStudy Co., Ltd. | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0
iStudy Co., Ltd. | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	$ 195

Fair Value Measurements Rollfor

Fair Value Measurements Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Addition of warrant liability			$ 2,347
Change in fair value	$ 401	$ (15)	292	$ 52
Balance at September 30, 2018	3,458		3,458
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value			292
Balance at September 30, 2018	$ 3,458		$ 3,458

Stock-Based Compensation (Sched

Stock-Based Compensation (Schedule of Stock-based Awards Granted) (Details) - 2007 Stock Incentive Plan - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	3,500	30,000	544,000	165,000
Restricted stock awards and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, granted (in shares)	0	0	180,000	212,500
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, granted (in shares)	0	0	168,500	166,149

Stock-Based Compensation Narrat

Stock-Based Compensation Narrative (Details) - 2007 Stock Incentive Plan - shares	May 10, 2018	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Mar. 31, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares authorized (in shares)	500,000
Shares authorized (in shares)	3,230,320
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, granted (in shares)		0		0		168,500	166,149
Equity instruments other than options, vested (in shares)					116,168
Shares issued (in shares)			25,726
Award vesting rights, percentage			22.10%

Stock-Based Compensation (Sch_2

Stock-Based Compensation (Schedule Of Allocation of Share-Based Compensation Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 329	$ 307	$ 767	$ 1,090
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	105	121	225	365
Restricted stock awards and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	140	186	458	605
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	84	0	84	120
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	8	(3)	26	29
Operating expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 321	$ 310	$ 741	$ 1,061

Income Taxes (Details)

Income Taxes (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 1,700,000	$ 1,100,000
Accrued interest and penalties relating to unrecognized tax benefits	$ 5,300	$ 1,400

Computation of Net Loss Per S_3

Computation of Net Loss Per Share of Common Stock (Components Of Net Income (Loss) Per Basic And Diluted Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net loss per share – basic
Net loss	$ 2,396	$ (2,309)	$ (3,665)	$ (8,482)
Weighted average number of shares outstanding, basic (in shares)	9,559	9,404	9,472	9,335
Earnings per share, basic (in dollars per share)	$ 0.25	$ (0.25)	$ (0.39)	$ (0.91)
Net loss per share – diluted
Net income (loss) available to common stockholders, diluted	$ 2,396	$ (2,309)	$ (3,665)	$ (8,482)
Incremental common shares attributable to dilutive effect of call options and warrants (in shares)	150	0	0	0
Weighted average number of shares outstanding, diluted (in shares)	9,709	9,404	9,472	9,335
Earnings per share, diluted (in dollars per share)	$ 0.25	$ (0.25)	$ (0.39)	$ (0.91)
Stock Options And Restricted Stock Units [Member]
Net loss per share – basic
Incremental common shares attributable to dilutive effect of nonvested shares with forfeitable dividends	150	0	0	0

Computation of Net Loss Per S_4

Computation of Net Loss Per Share of Common Stock (Schedule of Antidilutive Securities Excluded from the Computation of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,607	2,004	2,624	1,993
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1,334	1,540	1,261	1,544
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1,273	314	1,213	314
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	150	150	135

Investment in Software Company

Investment in Software Company (Details) - USD ($) $ in Thousands	Jul. 06, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Gain on sale of BriefCam, Ltd.		$ 6,502	$ 0	$ 6,502	$ 0
BriefCam Ltd
Cost method investments		3,100		3,100		$ 3,100
BriefCam Ltd | Maximum
Minority ownership interest (less than 20%)	20.00%					20.00%
BriefCam, Canon Inc
Sale of investment, consideration transferred	$ 9,678
Gain on sale of BriefCam, Ltd.		$ 6,500		$ 6,500