Qumu (QUMU) 10-Q 10 Nov 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Nov. 07, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	000-20728
Entity Registrant Name	QUMU CORPORATION
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-1577970
Entity Address, Address Line Two	Suite 401-412
Entity Address, Address Line One	400 S. 4th Street
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55415
City Area Code	(612)
Local Phone Number	638-9100
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	QUMU
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,935,329
Entity Central Index Key	0000892482
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 6,032	$ 20,563
Receivables, net of allowance for credit losses of $41 and $42, respectively	4,088	3,709
Contract assets	223	446
Income tax receivable	750	556
Other receivable	1,272	0
Prepaid expenses and other current assets	1,790	2,184
Total current assets	14,155	27,458
Property and equipment, net of accumulated depreciation of $1,613 and $1,544, respectively	167	337
Right of use assets – operating leases	0	146
Intangible assets, net	882	1,388
Goodwill	6,066	7,388
Deferred income taxes, non-current	17	17
Other assets, non-current	308	362
Total assets	21,595	37,096
Current liabilities:
Accounts payable and other accrued liabilities	3,206	2,742
Accrued compensation	1,415	1,725
Deferred revenue	9,757	10,862
Operating lease liabilities	82	597
Financing obligations	1,252	5,502
Warrant liability	658	801
Total current liabilities	16,370	22,229
Long-term liabilities:
Deferred revenue, non-current	1,169	1,507
Income taxes payable, non-current	647	630
Operating lease liabilities, non-current	0	21
Financing obligations, non-current	74	113
Total long-term liabilities	1,890	2,271
Total liabilities	18,260	24,500
Commitments and contingencies (Note 3)
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 17,934,632 and 17,786,959, respectively	179	178
Additional paid-in capital	105,912	105,655
Accumulated deficit	(99,322)	(90,693)
Accumulated other comprehensive loss	(3,434)	(2,544)
Total stockholders’ equity	3,335	12,596
Total liabilities and stockholders’ equity	$ 21,595	$ 37,096

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Receivables, allowance for doubtful accounts	$ 41	$ 42
Property and equipment, accumulated depreciation and amortization	$ 1,613	$ 1,544
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
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)	17,934,632	17,786,959
Common stock, shares outstanding (in shares)	17,934,632	17,786,959

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Total revenues	$ 5,471	$ 6,425	$ 15,542	$ 18,112
Cost of revenues:
Total cost of revenues	1,231	1,544	3,901	4,660
Gross profit	4,240	4,881	11,641	13,452
Operating expenses:
Research and development	1,628	2,305	5,383	6,519
Sales and marketing	2,436	4,490	8,931	14,139
General and administrative	1,990	1,881	6,684	6,550
Amortization of purchased intangibles	150	163	459	488
Total operating expenses	6,204	8,839	21,457	27,696
Operating loss	(1,964)	(3,958)	(9,816)	(14,244)
Other income (expense):
Employee Retention Credit income	623	0	1,272	0
Interest expense, net	(26)	(12)	(135)	(81)
Decrease in fair value of derivative liability	0	0	0	37
Decrease in fair value of warrant liability	26	94	143	1,469
Gain on sale of BriefCam, Ltd.	0	50	0	50
Other, net	(150)	4	(334)	(23)
Total other income (expense), net	473	136	946	1,452
Loss before income taxes	(1,491)	(3,822)	(8,870)	(12,792)
Income tax benefit	(124)	(77)	(241)	(276)
Net loss	$ (1,367)	$ (3,745)	$ (8,629)	$ (12,516)
Net loss per share – basic (in dollars per share)	$ (0.08)	$ (0.21)	$ (0.48)	$ (0.72)
Weighted average shares outstanding, basic (in shares)	18,143	17,872	18,077	17,358
Net loss available to common stockholders, diluted	$ (1,367)	$ (3,788)	$ (8,629)	$ (13,985)
Net loss per share – diluted (in dollars per share)	$ (0.08)	$ (0.21)	$ (0.48)	$ (0.80)
Weighted average number of shares outstanding, diluted (in shares)	18,143	17,881	18,077	17,525
Software licenses and appliances
Revenues:
Total revenues	$ 606	$ 742	$ 995	$ 1,091
Cost of revenues:
Total cost of revenues	58	63	137	190
Service
Revenues:
Total revenues	4,865	5,683	14,547	17,021
Cost of revenues:
Total cost of revenues	$ 1,173	$ 1,481	$ 3,764	$ 4,470

Condensed Consolidated Statem_2

Condensed Consolidated Statements Of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,367)	$ (3,745)	$ (8,629)	$ (12,516)
Other comprehensive income (loss):
Net change in foreign currency translation adjustments	(333)	(229)	(890)	(106)
Total other comprehensive income (loss)	(333)	(229)	(890)	(106)
Total comprehensive loss	$ (1,700)	$ (3,974)	$ (9,519)	$ (12,622)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Shares	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2020		13,780
Beginning balance at Dec. 31, 2020	$ 2,885	$ 138	$ 79,489	$ (74,328)	$ (2,414)
Net loss	(4,450)			(4,450)
Other comprehensive loss, net of taxes	(21)				(21)
Issuance of common stock (in shares)		3,709
Issuance of common stock	23,085	$ 37	23,048
Warrant exercise (in shares)		50
Warrant exercise	560		560
Issuance of stock under stock plan (in shares)		52
Issuance of stock under employee stock plan, net of forfeitures	142	$ 1	141
Redemption of stock related to tax withholdings on employee stock plan issuances	(3)		(3)
Stock-based compensation	589		589
Ending balance (in shares) at Mar. 31, 2021		17,591
Ending balance at Mar. 31, 2021	22,787	$ 176	103,824	(78,778)	(2,435)
Net loss	(4,321)			(4,321)
Other comprehensive loss, net of taxes	144				144
Issuance of stock under stock plan (in shares)		34
Issuance of stock under employee stock plan, net of forfeitures	85	$ 0	85
Redemption of stock to cover tax withholding for employee stock plan (in shares)		(1)
Redemption of stock related to tax withholdings on employee stock plan issuances	(3)		(3)
Stock-based compensation	566		566
Ending balance (in shares) at Jun. 30, 2021		17,624
Ending balance at Jun. 30, 2021	19,258	$ 176	104,472	(83,099)	(2,291)
Net loss	(3,745)			(3,745)
Other comprehensive loss, net of taxes	(229)				(229)
Issuance of stock under stock plan (in shares)		171
Issuance of stock under employee stock plan, net of forfeitures	318	$ 2	316
Redemption of stock to cover tax withholding for employee stock plan (in shares)		(16)
Redemption of stock related to tax withholdings on employee stock plan issuances	(41)		(41)
Stock-based compensation	248		248
Ending balance (in shares) at Sep. 30, 2021		17,779
Ending balance at Sep. 30, 2021	15,809	$ 178	104,995	(86,844)	(2,520)
Beginning balance (in shares) at Dec. 31, 2021		17,787
Beginning balance at Dec. 31, 2021	12,596	$ 178	105,655	(90,693)	(2,544)
Net loss	(4,640)			(4,640)
Other comprehensive loss, net of taxes	(184)				(184)
Issuance of stock under stock plan (in shares)		87
Issuance of stock under employee stock plan, net of forfeitures	0	$ 1	(1)
Redemption of stock to cover tax withholding for employee stock plan (in shares)		(9)
Redemption of stock related to tax withholdings on employee stock plan issuances	(17)		(17)
Stock-based compensation	356		356
Ending balance (in shares) at Mar. 31, 2022		17,865
Ending balance at Mar. 31, 2022	8,111	$ 179	105,993	(95,333)	(2,728)
Net loss	(2,622)			(2,622)
Other comprehensive loss, net of taxes	(373)				(373)
Issuance of stock under stock plan (in shares)		42
Issuance of stock under employee stock plan, net of forfeitures	0	$ 0	0
Redemption of stock to cover tax withholding for employee stock plan (in shares)		(2)
Redemption of stock related to tax withholdings on employee stock plan issuances	(2)		(2)
Stock-based compensation	(206)		(206)
Ending balance (in shares) at Jun. 30, 2022		17,905
Ending balance at Jun. 30, 2022	4,908	$ 179	105,785	(97,955)	(3,101)
Net loss	(1,367)			(1,367)
Other comprehensive loss, net of taxes	(333)				(333)
Issuance of stock under stock plan (in shares)		50
Issuance of stock under employee stock plan, net of forfeitures	(2)	$ 0	(2)
Redemption of stock to cover tax withholding for employee stock plan (in shares)		(20)
Redemption of stock related to tax withholdings on employee stock plan issuances	(14)		(14)
Stock-based compensation	143		143
Ending balance (in shares) at Sep. 30, 2022		17,935
Ending balance at Sep. 30, 2022	$ 3,335	$ 179	$ 105,912	$ (99,322)	$ (3,434)

Condensed Consolidated Statem_3

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating activities:
Net loss	$ (8,629)	$ (12,516)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	634	738
Loss on disposal of property and equipment	(1)	3
Stock-based compensation	293	1,403
Accretion of debt discount and issuance costs	38	35
Decrease in fair value of derivative liability	0	(37)
Decrease in fair value of warrant liability	(143)	(1,469)
Gain on sale of BriefCam, Ltd.	0	(50)
Changes in operating assets and liabilities:
Receivables	(559)	913
Contract assets	223	37
Income taxes receivable / payable	(294)	107
Other receivable	(1,272)	0
Prepaid expenses and other assets	421	264
Accounts payable and other accrued liabilities	472	(607)
Accrued compensation	(269)	(915)
Deferred revenue	(882)	(2,800)
Net cash used in operating activities	(9,968)	(14,894)
Investing activities:
Proceeds from sale of BriefCam, Ltd.	0	50
Purchases of property and equipment	(10)	(216)
Net cash used in investing activities	(10)	(166)
Financing activities:
Principal payments on financing obligations	(489)	(342)
Principal payments on lines of credit	(7,000)	(1,840)
Proceeds from lines of credit	3,200	1,840
Principal payment on term loan	0	(1,833)
Payment for line of credit issuance costs	(86)	(25)
Net proceeds from common stock issuance	0	23,085
Proceeds from issuance of common stock under employee stock plans	0	545
Common stock repurchases to settle employee withholding liability	(35)	(47)
Net cash provided by (used in) financing activities	(4,410)	21,383
Effect of exchange rate changes on cash	(143)	(2)
Net increase (decrease) in cash and cash equivalents	(14,531)	6,321
Cash and cash equivalents, beginning of period	20,563	11,878
Cash and cash equivalents, end of period	6,032	18,199
Supplemental disclosures of net cash paid (received) during the period:
Income taxes, net	54	(372)
Interest, net	102	41
Non-cash financing activity:
Reclassification from warrant liability to additional paid-in capital for non-cash exercise	$ 0	$ 560

Nature of Business and Basis of

Nature of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	Nature of Business and Basis of Presentation Qumu Corporation ("Qumu" or the "Company") provides the tools to create, manage, secure, distribute and measure the success of live and on-demand video for enterprises. The Qumu platform enables global organizations to drive employee engagement, increase access to video, and modernize the future workplace by providing a more efficient and effective way to share knowledge. Qumu’s customers, which include some of the world’s largest organizations, leverage the Qumu platform for a variety of cloud, on-premise and hybrid deployments. Use cases include, but are not limited to, CEO and executive town halls, self-service webcasting, sales enablement, training, employee onboarding, internal communications, product releases and training, regulatory compliance and customer engagement. 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 markets its products and services through regional sales representatives, channel partners and independent distributors primarily in North America, Europe and Asia. 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, 2021. Liquidity and Going Concern Considerations At September 30, 2022, the Company's principal source of liquidity consists of cash and cash equivalents and potential availability under its revolving line of credit (the "SVB Agreement") with Silicon Valley Bank ("SVB"). As disclosed in the Company's consolidated financial statements for the year ended December 31, 2021, management concluded that the Company's history of losses and its cash resources available to execute its business plan over the twelve months following the release of its audited financial statements raised substantial doubt about the Company's ability to continue as a going concern. While management continues to execute the plans noted below, the execution of those plans has not yielded sufficient results for management to conclude that substantial doubt has been alleviated. Management’s plans to address the doubt regarding the Company’s ability to continue as a going concern include positioning the targeted channel-led strategy for success through efforts to expand the number of high quality channel partners, educating channel partners on the Company’s platform, tools and differentiated features, and providing performance-based incentives to channel partners to accelerate customer deals, as well as continuous assessment of the sales pipeline to forecast SaaS revenue growth driven by new customer and expansion bookings sourced through the channel. Additionally, management will actively monitor eligible accounts for the purposes of the SVB Agreement borrowing base calculation and monitor doubtful accounts and write-offs of accounts receivable, which have historically been minimal. Management continues to manage costs to align with its operating plan. To the extent that increasing traction in the channel-led strategy is not realized, management may implement additional cost optimization plans to further align expenditures with the timing and amount of cash receipts from new sales and renewals of existing sales contracts. These cost optimization measures may include reductions in the Company's personnel, reduced utilization of contractors, and decreases in other discretionary spend. The Company may also increase its cash resources by drawing on the SVB line of credit to the extent of any availability. To the extent the Company requires additional capital, it may seek capital by refinancing its existing line of credit, by obtaining other forms of debt financing, or from an offering of the Company's equity securities or a combination of these alternatives. If the Company experiences a significant shortfall in performance as compared to plan and also is unable to secure additional capital in a sufficient amount or on acceptable terms, management may be required to implement more significant cost reduction and other cash-focused measures to manage liquidity, and the Company may have to significantly delay, scale back, or cease operations, in part or in full. As of September 30, 2022, management continues to execute on its plans to address the substantial doubt regarding the Company’s ability to continue as a going concern. Regarding its channel-led strategy, the Company met its new logo growth targets for the first half of 2022. The Company continued to add new logos in the third quarter of 2022 with the rate of new logos in the third quarter falling short of the Company's internal plan. However, consistent with the Company's channel-led strategy, over 80% of the new logos were associated with channel partners for nine months ended September 30, 2022. Additionally, net cash used in operating activities improved to $1.4 million in the third quarter 2022, compared to $3.7 million in the second quarter 2022, $4.9 million in the first quarter 2022, $2.5 million in the fourth quarter 2021, and $3.3 million in the third quarter 2021. During the third quarter 2022, the Company drew an aggregate of $3.2 million on the line of credit, of which $1.2 million was outstanding as of September 30, 2022. As of September 30, 2022 and through the filing date of this Form 10-Q, management has not initiated new cost optimization or headcount reduction measures beyond those initially planned to alleviate substantial doubt regarding the Company’s ability to continue as a going concern. Depending on new logo and bookings performance through channel partners and other factors affecting cash flow, management may consider new cost optimization or headcount reduction measures in order to extend the Company’s cash runway beyond the second quarter of 2023. To the extent the Company requires additional capital, it may seek capital by refinancing its existing line of credit, by obtaining other forms of debt financing, or from an offering of the Company's equity securities or a combination of these alternatives. These condensed consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities and commitments in the normal course of business. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of the going concern uncertainty. If the Company cannot continue as a going concern, adjustments to the carrying values and classification of its assets and liabilities and the reported amounts of income and expenses could be required and could be material. Employee Retention Credit During the nine months ended September 30, 2022, the Company completed its analysis of its eligibility for the Employee Retention Credit under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) for qualified wages paid during the second and third quarters of 2021. During the three and nine months ended September 30, 2022, the Company submitted for refunds of $623,000 and $1.3 million, respectively, and recorded the amounts as Other Income (Expense) on the Company’s condensed consolidated statements of operations and $1.3 million as Other Receivable on the Company's condensed consolidated balance sheet as of September 30, 2022. The Company believes the relevant conditions of the Employee Retention Credit provision of the CARES Act have been met for the second quarter and third quarter 2021 reporting periods and that it will receive the credit, although there can be no assurance regarding timing of the receipt of the credit. Due to the uncertain timing of receipt, the Company is not including the CARES Act credit in assessing the sufficiency of its capital and liquidity resources to fund its operations. The Company expects to recognize additional amounts under the Employee Retention Credit in future reporting periods as it completes further analyses and submits for refunds for other historical quarters for which it determines the Company has eligible wages. Recently Adopted Accounting Standards In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40 ). This update amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity’s own equity and improves and amends the related earnings per share guidance for both Subtopics. This standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2021. Early adoption is permitted. The Company adopted this standard effective January 1, 2022. The adoption of this standard did not materially impact the Company's condensed consolidated financial statements and related disclosures. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance . The objective of ASU 2021-10 is to increase the transparency of government assistance including the disclosure of the types of assistance, an entity’s accounting for the assistance, and the effect of the assistance on

Intangible Assets and Goodwill

Intangible Assets and Goodwill	9 Months Ended
	Sep. 30, 2022
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, 2022 Customer Relationships Trademarks / Trade Names Total Original cost $ 4,579 $ 2,121 $ 6,700 Accumulated amortization (4,404) (1,414) (5,818) Intangibles assets, net $ 175 $ 707 $ 882 December 31, 2021 Customer Relationships Trademarks / Trade Names Total Original cost $ 4,927 $ 2,121 $ 7,048 Accumulated amortization (4,352) (1,308) (5,660) Intangibles assets, net $ 575 $ 813 $ 1,388 Balances as of December 31, 2021 exclude intangible assets fully amortized as of that date having an original cost as follows: December 31, 2021 Developed Technology Trademarks / Trade Names Total Original cost $ 8,224 $ 62 $ 8,286 Changes to the carrying amount of net amortizable intangible assets consisted of the following (in thousands): Nine Months Ended Balance, beginning of period $ 1,388 Amortization expense (459) Currency translation (47) Balance, end of period $ 882 Amortization expense of intangible assets consisted of the following (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Amortization expense associated with the developed technology included in cost of revenues $ — $ 26 $ — $ 80 Amortization expense associated with other acquired intangible assets included in operating expenses 150 163 459 488 Total amortization expense $ 150 $ 189 $ 459 $ 568 Goodwill The goodwill balance of $6.1 million at September 30, 2022 reflects the impact of foreign currency exchange rate fluctuations since the acquisition date.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases The Company is obligated under finance leases covering certain IT equipment that expire at various dates over the next three years. The Company also has one non-cancellable operating lease, for office space that was surrendered, that expires in January 2023. The components of lease cost were as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Operating lease cost $ 45 $ 47 $ 146 $ 138 Finance lease cost: Amortization of right of use assets 26 26 78 81 Interest on lease liabilities 2 3 6 8 Total finance cost 28 29 84 89 Total lease cost $ 73 $ 76 $ 230 $ 227 Future payments used in the measurement of lease liabilities on the condensed consolidated balance sheet as of September 30, 2022 are as follows (in thousands): Operating Finance Remainder of 2022 $ 62 $ 14 2023 21 58 2024 — 58 2025 — 4 2026 — — Total undiscounted lease payments 83 134 Less amount representing interest (1) (8) Present value of lease liabilities $ 82 $ 126 Wells Fargo Credit Facility On January 15, 2021, the Company entered into a Loan and Security Agreement (the “Wells Fargo line of credit”) with Wells Fargo Bank, National Association providing for a revolving line of credit. Pursuant to the Wells Fargo line of credit, the Company granted a security interest in substantially all of its properties, right and assets (including certain equity interest of the Company’s subsidiaries). On April 12, 2022, the Company repaid the $5.0 million outstanding balance on the revolving line and terminated its Loan and Security Agreement with Wells Fargo. Silicon Valley Bank Credit Facility On April 15, 2022, the Company entered into a Loan and Security Agreement (the “SVB Agreement”) with Silicon Valley Bank ("SVB") providing for a $7.5 million revolving line of credit. The maximum availability for borrowing under the SVB Agreement is the lesser of $7.5 million or the sum of a defined borrowing base of 85% of eligible accounts receivable plus a non-formula amount of $2.5 million. The non-formula amount will be eliminated from availability under the line of credit at the earlier of April 30, 2023 or the date on which the Company's net cash ("Net Cash") is less than $5.0 million. As of September 30, 2022, the non-formula amount was not available for borrowing as the Company's Net Cash was less than $5.0 million. The Company expects its availability under the SVB Agreement to be tightly correlated to customer renewals and new customers, which drive eligible accounts receivable. The maturity of the SVB Agreement is April 15, 2024. During the three months ended September 30, 2022, the Company drew an aggregate of $3.2 million on the line of credit, of which $1.2 million was outstanding as of September 30, 2022. Any borrowings under the SVB Agreement bear interest, based on an interest rate that is dependent upon whether Net Cash is above or below $5.0 million. Net Cash is defined as (a) the Company's cash maintained with Silicon Valley Bank less (b) the outstanding line of credit balance. If Net Cash is greater than $5.0 million, then the interest rate is the "prime rate” as published in The Wall Street Journal ("WSJ") for the relevant period plus 1.50%. If cash liquidity is less than $5.0 million, then the interest rate is the WSJ prime rate plus 2.00%. The interest rate on the Company's line of credit borrowings was 8.25% as of September 30, 2022. The SVB Agreement contains certain reporting requirements, conditions, and covenants, including a covenant requiring the Company to maintain an adjusted quick ratio greater than or equal to 1.25 to 1.00. The adjusted quick ratio is the ratio of (a) unrestricted cash and cash equivalents in SVB deposit accounts or securities accounts plus net billed accounts receivable and (b) the sum of current liabilities less the current portion of deferred revenue. As of September 30, 2022, the Company was in compliance with its covenants. Pursuant to the SVB Agreement, the Company granted a security interest in substantially all of its properties, rights and assets (including certain equity interests of the Company’s subsidiaries). The SVB Agreement contains customary events of default, upon the occurrence of which, the lender may accelerate repayment of any outstanding balance. Additionally, the line of credit contains various provisions that limit our ability to, among other things, incur, create or assume certain indebtedness; create, incur or assume certain liens; make certain investments; make sales, transfers and dispositions of certain property; undergo certain fundamental changes, including certain mergers, liquidations and consolidations; purchase, hold or acquire certain investments; and declare or make certain dividends and distributions. Contingencies The Company is exposed to 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

Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Assets and liabilities measured at fair value are classified into the following categories: • 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. As of September 30, 2022, the following warrants for the purchase of Qumu’s common stock were outstanding and exercisable: Description Number of underlying warrant shares Warrant exercise price Warrant expiration date Warrant issued in conjunction with October 2016 debt financing ("Hale warrant") 238,583 $ 2.80 October 21, 2026 Warrant issued to sales partner, iStudy Co., Ltd. ("iStudy warrant") 100,000 $ 2.43 August 31, 2028 Total warrants outstanding 338,583 The warrant liability was recorded in the Company’s consolidated balance sheets at its fair value on the respective dates of issuance of the warrants 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 in other income (expense) of the condensed consolidated statement of operations as "decrease (increase) in fair value of warrant liability." The Company recorded non-cash income of $26,000 and $94,000 for the three months ended September 30, 2022 and 2021, respectively, and $143,000 and $1.5 million for the nine months ended September 30, 2022 and 2021, respectively, resulting from the decrease in fair value of the warrant liability. The Company has historically estimated 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 include the Company’s stock price and 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 instrument for the warrants, when applicable. During the three months ended June 30, 2022, the Company began estimating the fair value of the Hale warrant using a Monte Carlo simulation performed by a third-party valuation firm, as the Company considers the simulation to better capture the potential range of future cash flows, particularly cash flows from scenarios in which the minimum cash payment is triggered. Changes in the assumptions used could have a material impact on the resulting fair value of each warrant. 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 contribute to an 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 contribute to a 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 were as follows at September 30, 2022 and December 31, 2021 (in thousands): Fair Value Measurements Using Total Fair Value at September 30, 2022 Quoted Prices in Significant Other Significant Liabilities: Warrant liability - Hale $ 643 $ — $ — $ 643 Warrant liability - iStudy 15 — — 15 Warrant liability $ 658 $ — $ — $ 658 Fair Value Measurements Using Total Fair Value at December 31, 2021 Quoted Prices in Significant Other Significant Liabilities: Warrant liability - Hale $ 685 $ — $ — $ 685 Warrant liability - iStudy 116 — — 116 Warrant liability $ 801 $ — $ — $ 801 The Company’s evaluation of the probability and timing of a change in control represents an unobservable input (Level 3) that shortens or lengthens the expected term input of the option pricing model for both warrants, and generally correspondingly increases or decreases, respectively, the present value of the minimum cash payment component of the Hale warrant. Consequently, as of September 30, 2022 and December 31, 2021, the liability related to each warrant was classified as a Level 3 warrant liability. The following table represents the significant unobservable input used in the fair value measurement of Level 3 warrant liability instruments: September 30, 2022 December 31, 2021 Probability-weighted timing of change in control 2.5 years 3.7 years The following table summarizes the changes in Level 3 fair value measurements for the nine months ended September 30, 2022: Total Balance at December 31, 2021 $ 801 Change in fair value (143) Balance at September 30, 2022 $ 658

Revenue

Revenue	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue	RevenueThe 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 cloud-hosted software as a service (SaaS), term software license or perpetual software license. Software licenses and appliances revenue includes sales of perpetual software licenses, term software licenses and hardware. Service revenue includes SaaS, maintenance and support, and professional and other services. Revenues by product category and geography The Company combines its products and services into four product categories and three geographic regions, based on customer location, as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Software licenses and appliances $ 606 $ 742 $ 995 $ 1,091 Service Subscription and support 2,786 2,636 8,205 7,360 Maintenance and support 1,605 2,444 5,167 7,678 Subscription, maintenance and support 4,391 5,080 13,372 15,038 Professional services and other 474 603 1,175 1,983 Total service 4,865 5,683 14,547 17,021 Total revenues $ 5,471 $ 6,425 $ 15,542 $ 18,112 Three Months Ended Nine Months Ended 2022 2021 2022 2021 North America $ 3,418 $ 4,290 $ 10,081 $ 11,938 Europe 1,706 1,850 4,449 5,325 Asia 347 285 1,012 849 Total $ 5,471 $ 6,425 $ 15,542 $ 18,112 Contract Balances The Company’s balances for contract assets totaled $223,000 and $446,000 as of September 30, 2022 and December 31, 2021, respectively. The Company’s balances for contract liabilities, which are included in deferred revenue, totaled $10.9 million and $12.4 million as of September 30, 2022 and December 31, 2021, respectively. During the three months ended September 30, 2022 and 2021, the Company recognized $3.8 million and $4.3 million, respectively, of revenue that was included in the deferred revenue balance at the beginning of each respective period. During the nine months ended September 30, 2022 and 2021, the Company recognized $10.4 million and $10.9 million, respectively, of revenue that was included in the deferred revenue balance at the beginning of each respective period. All other activity in deferred revenue is due to the timing of invoices in relation to the timing of recognizable 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 $23.1 million as of September 30, 2022, of which the Company expects to recognize $11.6 million of revenue over the next 12 months and the remainder thereafter. During the nine months ended September 30, 2022 and 2021, no revenue was recognized from performance obligations satisfied in previous periods.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company granted the following stock-based awards in the periods indicated: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Stock options — — 50,000 — Restricted stock units 21,528 102,400 842,723 454,702 Performance stock units — 16,684 320,755 320,384 The restricted stock units and performance stock units granted during the three and nine months ended September 30, 2022 and 2021 were granted under the Company’s Second Amended and Restated 2007 Stock Incentive Plan (the "2007 Plan"), a shareholder approved plan. The Company recognized the following expense (benefit) related to its share-based payment arrangements (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Stock-based compensation cost, before income tax benefit: Stock options $ 19 $ 129 $ (152) $ 482 Restricted stock awards and restricted stock units 145 119 543 921 Performance stock units (21) — (98) — Total stock-based compensation $ 143 $ 248 $ 293 $ 1,403 Three Months Ended Nine Months Ended 2022 2021 2022 2021 Stock-based compensation cost included in: Cost of revenues $ 22 $ 12 $ 58 $ 44 Operating expenses 121 236 235 1,359 Total stock-based compensation $ 143 $ 248 $ 293 $ 1,403

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income taxes	Income TaxesAs of both September 30, 2022 and December 31, 2021, the Company’s liability for gross unrecognized tax benefits (excluding interest and penalties) totaled $1.9 million. The Company had accrued interest and penalties relating to unrecognized tax benefits of $89,000 and $72,000 on a gross basis at September 30, 2022 and December 31, 2021, 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.

Computation of Net Loss Per Sha

Computation of Net Loss Per Share of Common Stock	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Computation of Net Loss Per Share of Common Stock	(8) Computation of Net 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 2022 2021 2022 2021 Net loss per share – basic Net loss $ (1,367) $ (3,745) $ (8,629) $ (12,516) Weighted average shares outstanding 18,143 17,872 18,077 17,358 Net loss per share – basic $ (0.08) $ (0.21) $ (0.48) $ (0.72) Net loss per share – diluted Loss attributable to common shareholders: Net loss $ (1,367) $ (3,745) $ (8,629) $ (12,516) Numerator effect of dilutive securities Warrants — (43) — (1,469) Loss attributable to common shareholders $ (1,367) $ (3,788) $ (8,629) $ (13,985) Weighted average shares outstanding – diluted: Weighted average shares outstanding – basic 18,143 17,872 18,077 17,358 Denominator effect of dilutive securities Warrants — 9 — 167 Diluted potential common shares — 9 — 167 Weighted average shares outstanding – diluted 18,143 17,881 18,077 17,525 Net loss per share – diluted $ (0.08) $ (0.21) $ (0.48) $ (0.80) Stock options, warrants and restricted stock units to acquire common shares that were 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 2022 2021 2022 2021 Stock options 477 1,086 729 1,161 Warrants 339 248 339 — Restricted stock units 1,053 628 770 448 Total anti-dilutive 1,869 1,962 1,838 1,609

Nature of Business and Basis _2

Nature of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Substantial Doubt about Going Concern	Liquidity and Going Concern Considerations At September 30, 2022, the Company's principal source of liquidity consists of cash and cash equivalents and potential availability under its revolving line of credit (the "SVB Agreement") with Silicon Valley Bank ("SVB"). As disclosed in the Company's consolidated financial statements for the year ended December 31, 2021, management concluded that the Company's history of losses and its cash resources available to execute its business plan over the twelve months following the release of its audited financial statements raised substantial doubt about the Company's ability to continue as a going concern. While management continues to execute the plans noted below, the execution of those plans has not yielded sufficient results for management to conclude that substantial doubt has been alleviated. Management’s plans to address the doubt regarding the Company’s ability to continue as a going concern include positioning the targeted channel-led strategy for success through efforts to expand the number of high quality channel partners, educating channel partners on the Company’s platform, tools and differentiated features, and providing performance-based incentives to channel partners to accelerate customer deals, as well as continuous assessment of the sales pipeline to forecast SaaS revenue growth driven by new customer and expansion bookings sourced through the channel. Additionally, management will actively monitor eligible accounts for the purposes of the SVB Agreement borrowing base calculation and monitor doubtful accounts and write-offs of accounts receivable, which have historically been minimal. Management continues to manage costs to align with its operating plan. To the extent that increasing traction in the channel-led strategy is not realized, management may implement additional cost optimization plans to further align expenditures with the timing and amount of cash receipts from new sales and renewals of existing sales contracts. These cost optimization measures may include reductions in the Company's personnel, reduced utilization of contractors, and decreases in other discretionary spend. The Company may also increase its cash resources by drawing on the SVB line of credit to the extent of any availability. To the extent the Company requires additional capital, it may seek capital by refinancing its existing line of credit, by obtaining other forms of debt financing, or from an offering of the Company's equity securities or a combination of these alternatives. If the Company experiences a significant shortfall in performance as compared to plan and also is unable to secure additional capital in a sufficient amount or on acceptable terms, management may be required to implement more significant cost reduction and other cash-focused measures to manage liquidity, and the Company may have to significantly delay, scale back, or cease operations, in part or in full. As of September 30, 2022, management continues to execute on its plans to address the substantial doubt regarding the Company’s ability to continue as a going concern. Regarding its channel-led strategy, the Company met its new logo growth targets for the first half of 2022. The Company continued to add new logos in the third quarter of 2022 with the rate of new logos in the third quarter falling short of the Company's internal plan. However, consistent with the Company's channel-led strategy, over 80% of the new logos were associated with channel partners for nine months ended September 30, 2022. Additionally, net cash used in operating activities improved to $1.4 million in the third quarter 2022, compared to $3.7 million in the second quarter 2022, $4.9 million in the first quarter 2022, $2.5 million in the fourth quarter 2021, and $3.3 million in the third quarter 2021. During the third quarter 2022, the Company drew an aggregate of $3.2 million on the line of credit, of which $1.2 million was outstanding as of September 30, 2022. As of September 30, 2022 and through the filing date of this Form 10-Q, management has not initiated new cost optimization or headcount reduction measures beyond those initially planned to alleviate substantial doubt regarding the Company’s ability to continue as a going concern. Depending on new logo and bookings performance through channel partners and other factors affecting cash flow, management may consider new cost optimization or headcount reduction measures in order to extend the Company’s cash runway beyond the second quarter of 2023. To the extent the Company requires additional capital, it may seek capital by refinancing its existing line of credit, by obtaining other forms of debt financing, or from an offering of the Company's equity securities or a combination of these alternatives. These condensed consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities and commitments in the normal course of business. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of the going concern uncertainty. If the Company cannot continue as a going concern, adjustments to the carrying values and classification of its assets and liabilities and the reported amounts of income and expenses could be required and could be material.
Employee Retention Credit	Employee Retention Credit During the nine months ended September 30, 2022, the Company completed its analysis of its eligibility for the Employee Retention Credit under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) for qualified wages paid during the second and third quarters of 2021. During the three and nine months ended September 30, 2022, the Company submitted for refunds of $623,000 and $1.3 million, respectively, and recorded the amounts as Other Income (Expense) on the Company’s condensed consolidated statements of operations and $1.3 million as Other Receivable on the Company's condensed consolidated balance sheet as of September 30, 2022. The Company believes the relevant conditions of the Employee Retention Credit provision of the CARES Act have been met for the second quarter and third quarter 2021 reporting periods and that it will receive the credit, although there can be no assurance regarding timing of the receipt of the credit. Due to the uncertain timing of receipt, the Company is not including the CARES Act credit in assessing the sufficiency of its capital and liquidity resources to fund its operations. The Company expects to recognize additional amounts under the Employee Retention Credit in future reporting periods as it completes further analyses and submits for refunds for other historical quarters for which it determines the Company has eligible wages.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40 ). This update amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity’s own equity and improves and amends the related earnings per share guidance for both Subtopics. This standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2021. Early adoption is permitted. The Company adopted this standard effective January 1, 2022. The adoption of this standard did not materially impact the Company's condensed consolidated financial statements and related disclosures. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance . The objective of ASU 2021-10 is to increase the transparency of government assistance including the disclosure of the types of assistance, an entity’s accounting for the assistance, and the effect of the assistance on

Revenue (Policies)

Revenue (Policies)	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	RevenueThe 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 cloud-hosted software as a service (SaaS), term software license or perpetual software license. Software licenses and appliances revenue includes sales of perpetual software licenses, term software licenses and hardware. Service revenue includes SaaS, maintenance and support, and professional and other services.

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	9 Months Ended
	Sep. 30, 2022
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, 2022 Customer Relationships Trademarks / Trade Names Total Original cost $ 4,579 $ 2,121 $ 6,700 Accumulated amortization (4,404) (1,414) (5,818) Intangibles assets, net $ 175 $ 707 $ 882 December 31, 2021 Customer Relationships Trademarks / Trade Names Total Original cost $ 4,927 $ 2,121 $ 7,048 Accumulated amortization (4,352) (1,308) (5,660) Intangibles assets, net $ 575 $ 813 $ 1,388 Balances as of December 31, 2021 exclude intangible assets fully amortized as of that date having an original cost as follows: December 31, 2021 Developed Technology Trademarks / Trade Names Total Original cost $ 8,224 $ 62 $ 8,286 Changes to the carrying amount of net amortizable intangible assets consisted of the following (in thousands): Nine Months Ended Balance, beginning of period $ 1,388 Amortization expense (459) Currency translation (47) Balance, end of period $ 882
Amortization of acquired intangible assets	Amortization expense of intangible assets consisted of the following (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Amortization expense associated with the developed technology included in cost of revenues $ — $ 26 $ — $ 80 Amortization expense associated with other acquired intangible assets included in operating expenses 150 163 459 488 Total amortization expense $ 150 $ 189 $ 459 $ 568

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Lease, Cost	The components of lease cost were as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Operating lease cost $ 45 $ 47 $ 146 $ 138 Finance lease cost: Amortization of right of use assets 26 26 78 81 Interest on lease liabilities 2 3 6 8 Total finance cost 28 29 84 89 Total lease cost $ 73 $ 76 $ 230 $ 227
Lessee, Operating Lease, Liability, Maturity	Future payments used in the measurement of lease liabilities on the condensed consolidated balance sheet as of September 30, 2022 are as follows (in thousands): Operating Finance Remainder of 2022 $ 62 $ 14 2023 21 58 2024 — 58 2025 — 4 2026 — — Total undiscounted lease payments 83 134 Less amount representing interest (1) (8) Present value of lease liabilities $ 82 $ 126
Finance Lease, Liability, Maturity	Future payments used in the measurement of lease liabilities on the condensed consolidated balance sheet as of September 30, 2022 are as follows (in thousands): Operating Finance Remainder of 2022 $ 62 $ 14 2023 21 58 2024 — 58 2025 — 4 2026 — — Total undiscounted lease payments 83 134 Less amount representing interest (1) (8) Present value of lease liabilities $ 82 $ 126

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Warrants Outstanding	As of September 30, 2022, the following warrants for the purchase of Qumu’s common stock were outstanding and exercisable: Description Number of underlying warrant shares Warrant exercise price Warrant expiration date Warrant issued in conjunction with October 2016 debt financing ("Hale warrant") 238,583 $ 2.80 October 21, 2026 Warrant issued to sales partner, iStudy Co., Ltd. ("iStudy warrant") 100,000 $ 2.43 August 31, 2028 Total warrants outstanding 338,583
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The Company’s liabilities measured at fair value on a recurring basis and the fair value hierarchy utilized to determine such fair values were as follows at September 30, 2022 and December 31, 2021 (in thousands): Fair Value Measurements Using Total Fair Value at September 30, 2022 Quoted Prices in Significant Other Significant Liabilities: Warrant liability - Hale $ 643 $ — $ — $ 643 Warrant liability - iStudy 15 — — 15 Warrant liability $ 658 $ — $ — $ 658 Fair Value Measurements Using Total Fair Value at December 31, 2021 Quoted Prices in Significant Other Significant Liabilities: Warrant liability - Hale $ 685 $ — $ — $ 685 Warrant liability - iStudy 116 — — 116 Warrant liability $ 801 $ — $ — $ 801
Schedule of Unobservable Inputs	The following table represents the significant unobservable input used in the fair value measurement of Level 3 warrant liability instruments: September 30, 2022 December 31, 2021 Probability-weighted timing of change in control 2.5 years 3.7 years
Schedule of Changes in Fair Value of Liabilities Measured on Recurring Basis	The following table summarizes the changes in Level 3 fair value measurements for the nine months ended September 30, 2022: Total Balance at December 31, 2021 $ 801 Change in fair value (143) Balance at September 30, 2022 $ 658

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	The Company combines its products and services into four product categories and three geographic regions, based on customer location, as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Software licenses and appliances $ 606 $ 742 $ 995 $ 1,091 Service Subscription and support 2,786 2,636 8,205 7,360 Maintenance and support 1,605 2,444 5,167 7,678 Subscription, maintenance and support 4,391 5,080 13,372 15,038 Professional services and other 474 603 1,175 1,983 Total service 4,865 5,683 14,547 17,021 Total revenues $ 5,471 $ 6,425 $ 15,542 $ 18,112 Three Months Ended Nine Months Ended 2022 2021 2022 2021 North America $ 3,418 $ 4,290 $ 10,081 $ 11,938 Europe 1,706 1,850 4,449 5,325 Asia 347 285 1,012 849 Total $ 5,471 $ 6,425 $ 15,542 $ 18,112

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Schedule Of Share-Based Payment Arrangements	The Company granted the following stock-based awards in the periods indicated: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Stock options — — 50,000 — Restricted stock units 21,528 102,400 842,723 454,702 Performance stock units — 16,684 320,755 320,384
Schedule of Allocation of Share-based Compensation Costs by Plan	The Company recognized the following expense (benefit) related to its share-based payment arrangements (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Stock-based compensation cost, before income tax benefit: Stock options $ 19 $ 129 $ (152) $ 482 Restricted stock awards and restricted stock units 145 119 543 921 Performance stock units (21) — (98) — Total stock-based compensation $ 143 $ 248 $ 293 $ 1,403 Three Months Ended Nine Months Ended 2022 2021 2022 2021 Stock-based compensation cost included in: Cost of revenues $ 22 $ 12 $ 58 $ 44 Operating expenses 121 236 235 1,359 Total stock-based compensation $ 143 $ 248 $ 293 $ 1,403

Computation of Net Loss Per S_2

Computation of Net Loss Per Share of Common Stock (Tables)	9 Months Ended
	Sep. 30, 2022
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 2022 2021 2022 2021 Net loss per share – basic Net loss $ (1,367) $ (3,745) $ (8,629) $ (12,516) Weighted average shares outstanding 18,143 17,872 18,077 17,358 Net loss per share – basic $ (0.08) $ (0.21) $ (0.48) $ (0.72) Net loss per share – diluted Loss attributable to common shareholders: Net loss $ (1,367) $ (3,745) $ (8,629) $ (12,516) Numerator effect of dilutive securities Warrants — (43) — (1,469) Loss attributable to common shareholders $ (1,367) $ (3,788) $ (8,629) $ (13,985) Weighted average shares outstanding – diluted: Weighted average shares outstanding – basic 18,143 17,872 18,077 17,358 Denominator effect of dilutive securities Warrants — 9 — 167 Diluted potential common shares — 9 — 167 Weighted average shares outstanding – diluted 18,143 17,881 18,077 17,525 Net loss per share – diluted $ (0.08) $ (0.21) $ (0.48) $ (0.80)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Stock options, warrants and restricted stock units to acquire common shares that were 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 2022 2021 2022 2021 Stock options 477 1,086 729 1,161 Warrants 339 248 339 — Restricted stock units 1,053 628 770 448 Total anti-dilutive 1,869 1,962 1,838 1,609

Nature of Business and Basis _3

Nature of Business and Basis of Presentation (Details) $ in Thousands	3 Months Ended					9 Months Ended
	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) reporting_unit segment	Sep. 30, 2021 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments | segment						1
Number of reporting units | reporting_unit						1
Percent of new customers						80%
Net cash used in operating activities	$ (1,400)	$ (3,700)	$ (4,900)	$ (2,500)	$ (3,300)	$ (9,968)	$ (14,894)
Employee Retention Credit income	623				$ 0	1,272	$ 0
Other receivable, employee retention credit	$ 1,300					$ 1,300

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Components Intangible Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Original cost	$ 6,700	$ 7,048
Accumulated amortization	(5,818)	(5,660)
Intangibles assets, net	882	1,388
Fully Amortized
Finite-Lived Intangible Assets [Line Items]
Original cost		8,286
Accumulated amortization		(8,286)
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Original cost	4,579	4,927
Accumulated amortization	(4,404)	(4,352)
Intangibles assets, net	175	575
Trademarks / Trade-Names
Finite-Lived Intangible Assets [Line Items]
Original cost	2,121	2,121
Accumulated amortization	(1,414)	(1,308)
Intangibles assets, net	$ 707	813
Trademarks / Trade-Names | Fully Amortized
Finite-Lived Intangible Assets [Line Items]
Original cost		62
Accumulated amortization		(62)
Developed Technology | Fully Amortized
Finite-Lived Intangible Assets [Line Items]
Original cost		8,224
Accumulated amortization		$ (8,224)

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Intangible Assets Rollforward) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Finite-lived Intangible Assets [Roll Forward]
Balance, beginning of period			$ 1,388
Amortization expense	$ (150)	$ (189)	(459)	$ (568)
Currency translation			47
Balance, end of period	$ 882		$ 882

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill (Amortization Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 150	$ 189	$ 459	$ 568
Cost of revenues
Finite-Lived Intangible Assets [Line Items]
Amortization expense associated with intangible assets	0	26	0	80
Operating expenses
Finite-Lived Intangible Assets [Line Items]
Amortization expense associated with intangible assets	$ 150	$ 163	$ 459	$ 488

Intangible Assets and Goodwil_5

Intangible Assets and Goodwill (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Goodwill And Intangible Assets [Line Items]
Goodwill	$ 6,066	$ 7,388
Kulu Valley Ltd
Goodwill And Intangible Assets [Line Items]
Goodwill	$ 6,100

Commitments and Contingencies_2

Commitments and Contingencies (Components of Lease Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Lease, Cost [Abstract]
Operating lease cost	$ 45	$ 47	$ 146	$ 138
Amortization of right of use assets	26	26	78	81
Interest on lease liabilities	2	3	6	8
Total finance cost	28	29	84	89
Total lease cost	73	$ 76	230	$ 227
Financing obligations	$ 1,252		$ 1,252		$ 5,502

Commitments and Contingencies_3

Commitments and Contingencies (Future Payments Used in Measurement of Lease Liabilities) (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Operating leases
Remainder of 2022	$ 62
2023	21
2024	0
2025	0
2026	0
Total undiscounted lease payments	83
Less amount representing interest	(1)
Present value of lease liabilities	82
Finance leases
Remainder of 2022	14
2023	58
2024	58
2025	4
2026	0
Total undiscounted lease payments	134
Less amount representing interest	(8)
Present value of lease liabilities	$ 126

Commitments and Contingencies_4

Commitments and Contingencies (Lease Narrative) (Details)	Sep. 30, 2022
- Lease narrative [Abstract]
Term of finance leases	3 years

Commitments and Contingencies_5

Commitments and Contingencies (Wells Fargo LOC) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Apr. 15, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Financing obligations	$ 1,252		$ 5,502
Wells Fargo National Association
Debt Instrument [Line Items]
Financing obligations		$ 5,000

Commitments and Contingencies_6

Commitments and Contingencies (SVB LOC) (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Apr. 15, 2022	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Financing obligations		$ 1,252	$ 1,252		$ 5,502
Proceeds from lines of credit			3,200	$ 1,840
Proceeds from lines of credit			3,200	$ 1,840
Silicon Valley Bank
Debt Instrument [Line Items]
Proceeds from lines of credit		3,200
Proceeds from lines of credit		3,200
Silicon Valley Bank
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 7,500
Borrowing base percentage factor	85%
Non-formula amount included in borrowing base calculation	$ 2,500
Net cash balance (less than)	$ 5,000
Restrictive covenant, adjusted quick ratio	1.25
Financing obligations		$ 1,200	$ 1,200
Debt Instrument, Interest Rate, Stated Percentage		8.25%	8.25%
Silicon Valley Bank | Above Minimum
Debt Instrument [Line Items]
Interest rate spread on variable rate	1.50%
Silicon Valley Bank | Below Minimum
Debt Instrument [Line Items]
Interest rate spread on variable rate	2%

Fair Value Measurements (Warran

Fair Value Measurements (Warrants Outstanding) (Details)	Sep. 30, 2022 $ / shares shares
Class of Warrant or Right [Line Items]
Number of underlying warrant shares	338,583
Hale Capital, LLP
Class of Warrant or Right [Line Items]
Number of underlying warrant shares	238,583
Warrant exercise price (per share) | $ / shares	$ 2.80
Warrant expiration date	Oct. 21, 2026
iStudy Co., Ltd.
Class of Warrant or Right [Line Items]
Number of underlying warrant shares	100,000
Warrant exercise price (per share) | $ / shares	$ 2.43
Warrant expiration date	Aug. 31, 2028

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Fair value disclosure [Abstract]
Change in fair value	$ 26	$ 94	$ 143	$ 1,500

Fair Value Measurements (Measur

Fair Value Measurements (Measurement Levels) (Details) - Warrants - Fair value, measurements, recurring - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	$ 658	$ 801
Quoted Prices in Active Markets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	658	801
Warrant liability - Hale
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	643	685
Warrant liability - Hale | Quoted Prices in Active Markets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0	0
Warrant liability - Hale | Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0	0
Warrant liability - Hale | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	643	685
Warrant liability - iStudy
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	15	116
Warrant liability - iStudy | Quoted Prices in Active Markets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0	0
Warrant liability - iStudy | Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0	0
Warrant liability - iStudy | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	$ 15	$ 116

Fair Value Measurements (Unobse

Fair Value Measurements (Unobservable Inputs) (Details)	3 Months Ended
	Sep. 30, 2022	Mar. 31, 2022
Unobservable input [Abstract]
Unobservable input, range high, low and weighted average	2 years 6 months	3 years 8 months 12 days

Fair Value Measurements (Rollfo

Fair Value Measurements (Rollforward) (Details) - Warrants - Fair value, measurements, recurring - Significant Unobservable Inputs (Level 3) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 801
Change in fair value	(143)
Ending balance	$ 658

Revenue (Disaggregation of Reve

Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 5,471	$ 6,425	$ 15,542	$ 18,112
North America
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	3,418	4,290	10,081	11,938
Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1,706	1,850	4,449	5,325
Asia
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	347	285	1,012	849
Software licenses and appliances
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	606	742	995	1,091
Professional services and other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	474	603	1,175	1,983
Total service
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	4,865	5,683	14,547	17,021
Subscription, maintenance and support
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	4,391	5,080	13,372	15,038
Subscription and support
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	2,786	2,636	8,205	7,360
Maintenance and support
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 1,605	$ 2,444	$ 5,167	$ 7,678

Revenue (Contract Assets and Li

Revenue (Contract Assets and Liabilities) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract assets	$ 223,000		$ 223,000		$ 446,000
Contract with customer, liability	10,900,000		10,900,000		$ 12,400,000
Contract with customer, liability, revenue recognized	$ 3,800,000	$ 4,300,000	10,400,000	$ 10,900,000
Contract with customer, performance obligation satisfied in previous period			$ 0	$ 0

Revenue (Narrative) (Details)

Revenue (Narrative) (Details) $ in Millions	Sep. 30, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 23.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 11.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, expected timing	12 months

Stock-Based Compensation (Sched

Stock-Based Compensation (Schedule of Stock-based Awards Granted) (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	0	0	50,000	0
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)	21,528	102,400	842,723	454,702
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, granted (in shares)	0	16,684	320,755	320,384

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, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 143	$ 248	$ 293	$ 1,403
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	19	129	(152)	482
Restricted stock awards and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	145	119	543	921
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	(21)	0	(98)	0
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	22	12	58	44
Operating expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 121	$ 236	$ 235	$ 1,359

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 1,900
Accrued interest and penalties relating to unrecognized tax benefits	$ 89	$ 72

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, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net loss per share – basic
Net loss	$ (1,367)	$ (3,745)	$ (8,629)	$ (12,516)
Weighted average shares outstanding, basic (in shares)	18,143	17,872	18,077	17,358
Net loss per share – basic (in dollars per share)	$ (0.08)	$ (0.21)	$ (0.48)	$ (0.72)
Net loss per share – diluted
Net loss	$ (1,367)	$ (3,745)	$ (8,629)	$ (12,516)
Numerator effect of dilutive securities	0	(43)	0	(1,469)
Loss attributable to common shareholders	$ (1,367)	$ (3,788)	$ (8,629)	$ (13,985)
Weighted average shares outstanding, basic (in shares)	18,143	17,872	18,077	17,358
Denominator effect of dilutive securities
Diluted potential common shares (in shares)	0	9	0	167
Weighted average shares outstanding, diluted (in shares)	18,143	17,881	18,077	17,525
Net loss per share – diluted (in dollars per share)	$ (0.08)	$ (0.21)	$ (0.48)	$ (0.80)
Warrants
Denominator effect of dilutive securities
Warrants (in shares)	0	9	0	167

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, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1,869	1,962	1,838	1,609
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	477	1,086	729	1,161
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	339	248	339	0
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)	1,053	628	770	448