FalconStor Software (FALC) 10-K 17 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Jan. 31, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	FALCONSTOR SOFTWARE INC
Entity Central Index Key	922,521
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 55,272,418
Entity Common Stock, Shares Outstanding		41,769,947
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 6,013,382	$ 10,873,891
Marketable securities	7,420,042	10,900,722
Accounts receivable, net of allowances of $191,285 and $119,530, respectively	6,635,262	8,898,680
Prepaid expenses and other current assets	1,742,668	1,596,916
Inventory	70,534	352,493
Deferred tax assets, net	205,816	316,586
Total current assets	22,087,704	32,939,288
Property and equipment, net of accumulated depreciation of $17,947,675 and $16,867,911, respectively	1,565,932	2,147,188
Deferred tax assets, net	110,060	7,503
Software development costs, net	1,116,816	1,508,517
Other assets	1,139,377	1,373,964
Goodwill	4,150,339	4,150,339
Other intangible assets, net	256,137	196,037
Total assets	30,426,365	42,322,836
Current liabilities:
Accounts payable	1,005,944	1,266,504
Accrued expenses	6,783,514	6,939,198
Deferred tax liabilities, net	89,343	23,307
Deferred revenue, net	16,553,519	23,380,012
Total current liabilities	24,432,320	31,609,021
Liabilities, Noncurrent [Abstract]
Other long-term liabilities	735,089	630,444
Deferred tax liabilities, net	27,069	226,443
Deferred revenue, net	9,122,289	13,097,215
Total liabilities	$ 34,316,767	$ 45,563,123
Commitments and contingencies (Note 12)
Series A redeemable convertible preferred stock, $.001 par value, 2,000,000 shares authorized, 900,000 shares issued and outstanding, redemption value of $9,000,000	$ 7,818,554	$ 7,230,941
Stockholders' equity:
Common stock - $.001 par value, 100,000,000 shares authorized, 57,194,817 and 56,360,222 shares issued, respectively and 41,666,747 and 40,924,313 shares outstanding, respectively	57,195	56,360
Additional paid-in capital	167,953,871	166,933,291
Accumulated deficit	(120,983,891)	(119,054,530)
Common stock held in treasury, at cost (15,528,070 and 15,435,909 shares, respectively)	(57,032,917)	(56,895,059)
Accumulated other comprehensive loss, net	(1,703,214)	(1,511,290)
Total stockholders' deficit	(11,708,956)	(10,471,228)
Total liabilities and stockholders' deficit	$ 30,426,365	$ 42,322,836

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowances on accounts receivable	$ 191,285	$ 119,530
Accumulated depreciation on property and equipment	$ 17,947,675	$ 16,867,911
Series A redeemable convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Series A redeemable convertible preferred stock, shares authorized	2,000,000	2,000,000
Series A redeemable convertible preferred stock, shares issued	900,000	900,000
Series A redeemable convertible preferred stock, shares outstanding	900,000	900,000
Series A redeemable convertible preferred stock, redemption value	$ 9,000,000	$ 9,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	57,194,817	56,360,222
Common stock, shares outstanding	41,666,747	40,924,313
Common Stock, held in treasury, shares	15,528,070	15,435,909

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue:
Product revenue	$ 24,847,724	$ 17,723,000	$ 27,338,557
Support and services revenue	23,723,267	28,550,515	31,297,947
Total revenue	48,570,991	46,273,515	58,636,504
Cost of revenue:
Product	1,942,985	2,791,950	4,155,413
Support and service	7,739,149	7,838,766	11,000,401
Total cost of revenue	9,682,134	10,630,716	15,155,814
Gross profit	38,888,857	35,642,799	43,480,690
Operating expenses:
Research and development costs	12,787,606	12,452,528	15,613,543
Selling and marketing	18,021,989	24,426,438	25,222,954
General and administrative	9,181,289	9,105,545	12,265,038
Investigation, litigation, and settlement related costs (benefits)	8,842	(5,417,925)	373,619
Restructuring costs	172,995	1,135,310	3,606,020
Total operating expenses	40,172,721	41,701,896	57,081,174
Operating loss	(1,283,864)	(6,059,097)	(13,600,484)
Interest and other (loss) income, net	(269,954)	(642,633)	1,094,126
Loss before income taxes	(1,553,818)	(6,701,730)	(12,506,358)
Provision (benefit) for income taxes	375,543	510,091	(1,573,768)
Net loss	(1,929,361)	(7,211,821)	(10,932,590)
Less: Accrual of Series A redeemable convertible preferred stock dividends	765,203	747,616	216,379
Less: Accretion to redemption value of Series A redeemable convertible preferred stock	587,613	493,363	127,504
Net loss attributable to common stockholders	$ (3,282,177)	$ (8,452,800)	$ (11,276,473)
Earnings per share
Basic net loss per share attributable to common stockholders (in dollars per share)	$ (0.08)	$ (0.18)	$ (0.24)
Diluted net loss per share attributable to common stockholders (in dollars per share)	$ (0.08)	$ (0.18)	$ (0.24)
Weighted average basic shares outstanding (in shares)	41,093,644	46,265,225	47,979,467
Weighted average diluted shares outstanding (in shares)	41,093,644	46,265,225	47,979,467

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,929,361)	$ (7,211,821)	$ (10,932,590)
Other comprehensive (loss) income, net of applicable taxes:
Foreign currency translation	(190,499)	157,410	(92,767)
Net unrealized loss on marketable securities	(1,998)	(4,818)	(2,800)
Net minimum pension liability	573	98,505	(16,770)
Total other comprehensive (loss) income, net of applicable taxes:	(191,924)	251,097	(112,337)
Total comprehensive loss	(2,121,285)	(6,960,724)	(11,044,927)
Less: Accrual of Series A redeemable convertible preferred stock dividends	765,203	747,616	216,379
Less: Accretion to redemption value of Series A redeemable convertible preferred stock	587,613	493,363	127,504
Total comprehensive loss attributable to common stockholders	$ (3,474,101)	$ (8,201,703)	$ (11,388,810)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' (Deficit) Equity - USD ($)	Total	Common stock	Additional paid-in capital	Accumulated deficit	Treasury stock	Accumulated other comprehensive loss	Stockholders' equity
Beginning Balance, amount at Dec. 31, 2012		$ 55,616	$ 162,673,833	$ (100,910,119)	$ (46,916,339)	$ (1,650,050)
Exercise of stock awards		421	697,081
Beneficial conversion feature			1,951,266
Shares issued for Series A redeemable convertible preferred stock dividend payment		0	0
Share-based compensation to non-employees		0
Accretion of Series A redeemable convertible preferred stock	$ (127,504)		(127,504)
Dividends on Series A redeemable convertible preferred stock	(216,379)		(216,379)
Share-based compensation to non-employees			37,379
Share-based compensation to employees			1,668,050
Net loss	(10,932,590)			(10,932,590)
Shares received for Estate litigation settlement					0
Purchase of shares					0
Other comprehensive (loss) income, net						(112,337)
Ending Balance, amount at Dec. 31, 2013		56,037	166,683,726	(111,842,709)	(46,916,339)	(1,762,387)	$ 6,218,328
Exercise of stock awards		323	24,361
Beneficial conversion feature			0
Shares issued for Series A redeemable convertible preferred stock dividend payment		0	0
Share-based compensation to non-employees		0
Accretion of Series A redeemable convertible preferred stock	(493,363)		(493,363)
Dividends on Series A redeemable convertible preferred stock	(747,616)		(747,616)
Share-based compensation to non-employees			1,173
Share-based compensation to employees			1,465,010
Net loss	(7,211,821)			(7,211,821)
Shares received for Estate litigation settlement					(5,293,319)
Purchase of shares	(4,685,401)				(4,685,401)
Other comprehensive (loss) income, net						251,097
Ending Balance, amount at Dec. 31, 2014		56,360	166,933,291	(119,054,530)	(56,895,059)	(1,511,290)	(10,471,228)
Exercise of stock awards		354	58,888
Beneficial conversion feature			0
Shares issued for Series A redeemable convertible preferred stock dividend payment		227	385,385
Share-based compensation to non-employees		254
Accretion of Series A redeemable convertible preferred stock	(587,613)		(587,613)
Dividends on Series A redeemable convertible preferred stock	(765,203)		(765,203)
Share-based compensation to non-employees			577,820
Share-based compensation to employees			1,351,303
Net loss	(1,929,361)			(1,929,361)
Shares received for Estate litigation settlement					0
Purchase of shares	$ (137,858)				(137,858)
Other comprehensive (loss) income, net						(191,924)
Ending Balance, amount at Dec. 31, 2015		$ 57,195	$ 167,953,871	$ (120,983,891)	$ (57,032,917)	$ (1,703,214)	$ (11,708,956)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Cash flows from operating activities:
Net loss	$ (1,929,361)	$ (7,211,821)	$ (10,932,590)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	1,988,924	2,503,762	2,660,826
Share-based payment compensation	1,351,303	1,465,010	1,668,050
Non-cash professional services expenses	578,074	1,173	37,379
Gain on Estate litigation settlement	0	(5,293,319)	0
Restructuring costs	172,995	921,895	3,580,731
Payment of restructuring costs	(469,248)	(1,199,473)	(2,274,716)
Realized gain on marketable securities	0	0	(826)
Gain on sale of cost method investment	0	0	(2,096,364)
Loss on disposal of fixed assets	45,578	0	0
Provision for returns and doubtful accounts	(6,745)	(64,904)	(294,074)
Deferred income tax provision	(126,640)	121,694	110,203
Changes in operating assets and liabilities:
Accounts receivable	2,232,538	2,394,162	3,327,614
Prepaid expenses and other current assets	(202,147)	(11,072)	1,129,742
Inventory	281,959	566,897	(276,571)
Other assets	15,978	168,042	(95,052)
Accounts payable	(231,598)	280,170	(1,809,000)
Accrued expenses and other long-term liabilities	674,603	(1,142,903)	(11,758,230)
Deferred revenue	(10,699,696)	6,991,933	5,887,953
Net cash (used in) provided by operating activities	(6,323,483)	491,246	(11,134,925)
Cash flows from investing activities:
Sales of marketable securities	15,200,100	39,131,215	33,982,164
Purchases of marketable securities	(11,863,108)	(41,958,829)	(31,527,129)
Proceeds from sale of cost method investment	0	0	3,000,000
Transfer from restricted cash	0	750,000	0
Purchases of property and equipment	(796,654)	(758,906)	(1,536,167)
Proceeds from sale of fixed assets	3,153	0	0
Capitalized software development costs	(134,100)	(184,215)	(973,842)
Security deposits	229,016	(16,723)	(244,814)
Purchase of intangible assets	(214,500)	(138,315)	(128,122)
Net cash provided by (used in) investing activities	2,423,907	(3,175,773)	2,572,090
Cash flows from financing activities:
Proceeds from exercise of stock options	59,242	24,684	697,500
Repurchase of common stock	(137,858)	(4,685,401)	0
Dividends paid on Series A redeemable convertible preferred stock	(377,690)	(777,091)	0
Proceeds from issuance of Series A redeemable convertible preferred stock, net of issuance costs	0	0	8,731,677
Net cash (used in) provided by financing activities	(456,306)	(5,437,808)	9,429,177
Effect of exchange rate changes on cash and cash equivalents	(504,627)	(292,114)	(229,470)
Net (decrease) increase in cash and cash equivalents	(4,860,509)	(8,414,449)	636,872
Cash and cash equivalents, beginning of period	10,873,891	19,288,340	18,651,468
Cash and cash equivalents, end of period	6,013,382	10,873,891	19,288,340
Supplemental Disclosures:
Cash paid for income taxes, net	195,895	186,194	95,593
Non-cash financing activities:
Undistributed Series A redeemable convertible preferred stock dividends	188,805	186,904	216,379
Shares issued for Series A redeemable convertible preferred stock dividend payment	$ 385,612	$ 0	$ 0

Consolidated Statements of Cas8

Consolidated Statements of Cash Flows (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Supplemental Cash Flow Elements [Abstract]
Interest Paid	$ 0	$ 0	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies (a) The Company and Nature of Operations FalconStor Software, Inc., a Delaware Corporation (the "Company"), is a leading software-defined storage company offering a converged data services software platform that is hardware agnostic. The Company develops, manufactures and sells data migration, business continuity, disaster recovery, optimized backup and de-duplication solutions and provides the related maintenance, implementation and engineering services. The Company currently has a working capital deficiency of $2.3 million , which is inclusive of current deferred revenue of $16.6 million , and a stockholders' deficit and covenants associated with its Preferred Stock that are mutually agreed to annually. The Company believes it continues to have sufficient liquidity to meet its operating requirements which includes marketing its new product offering FreeStor, and expanding its existing suite of software offerings. The Company also believes that its covenants are achievable, however, if they are not met, the Series A redeemable convertible preferred stock could be redeemed by the holder. (b) Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. (c) Use of Estimates 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. The Company’s significant estimates include those related to revenue recognition, accounts receivable allowances, share-based payment compensation, marketable securities, valuation of embedded derivatives, software development costs, goodwill and other intangible assets and income taxes. Actual results could differ from those estimates. The financial market volatility, both in the U.S. and in many other countries where the Company operates, has impacted and may continue to impact the Company’s business. Such conditions could have a material impact to the Company’s significant accounting estimates discussed above. (d) Cash Equivalents and Marketable Securities The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company records its cash equivalents and marketable securities at fair value in accordance with the authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) on fair value measurements and disclosures. As of December 31, 2015 and 2014 , the Company’s cash equivalents consisted of money market funds and commercial paper. At December 31, 2015 and 2014 , the fair value of the Company’s cash equivalents amounted to approximately $2.7 million and $2.0 million , respectively. As of December 31, 2015 and 2014 , the Company’s marketable securities consisted of corporate bonds and government securities with a fair value of approximately $7.4 million and $10.9 million , respectively. All of the Company’s marketable securities are classified as available-for-sale, and accordingly, unrealized gains and losses on marketable securities, net of tax, are reflected as a component of accumulated other comprehensive loss in stockholders’ deficit. Any other-than-temporary impairments are recorded within interest and other (loss) income, net in the consolidated statement of operations. See Note (4) M arketable Securities for additional information. (e) Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measurements, a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is as follows: Level 1 —Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 —Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 —Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. As of December 31, 2015 and 2014 , the fair value of the Company’s financial instruments including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximated carrying value due to the short maturity of these instruments. See Note (3) Fair Value Measurements for additional information. (f) Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risk. Terms of convertible preferred stock are reviewed to determine whether or not they contain embedded derivative instruments that are required under FASB ASC 815 “Derivatives and Hedging” (“ASC 815”) to be accounted for separately from the host contract, and recorded on the balance sheet at fair value. The fair value of derivatives are required to be revalued at each reporting date, with corresponding changes in fair value recorded in current period operating results. See Note (13) Derivative Financial Instruments for additional information. (g) Revenue Recognition The Company derives its revenue from sales of its products, support and services. Product revenue consists of the Company’s software integrated with industry standard hardware and sold as complete turn-key integrated solutions, as stand-alone software applications or sold on a subscription or consumption basis. Depending on the nature of the arrangement revenue related to turn-key solutions and stand-alone software applications are generally recognized upon shipment and delivery of license keys. For certain arrangements revenue is recognized based on usage or ratably over the term of the arrangement. Support and services revenue consists of both maintenance revenues and professional services revenues. Revenue is recorded net of applicable sales taxes. In accordance with the authoritative guidance issued by the FASB on revenue recognition, the Company recognizes revenue when persuasive evidence of an arrangement exists, the fee is fixed or determinable, delivery has occurred, and collection of the resulting receivable is deemed probable. Products delivered to a customer on a trial basis are not recognized as revenue until the trial period has ended and acceptance has occurred by the customer. Reseller and distributor customers typically send the Company a purchase order when they have an end user identified. For bundled arrangements that include either maintenance or both maintenance and professional services, the Company uses the residual method to determine the amount of product revenue to be recognized. Under the residual method, consideration is allocated to the undelivered elements based upon vendor-specific objective evidence (“VSOE”) of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as product revenue. If VSOE does not exist for all undelivered elements of an arrangement, the Company recognizes total revenue from the arrangement ratably over the term of the maintenance agreement. The Company's long-term portion of deferred revenue consists of (i) payments received for maintenance contracts with terms in excess of one year as of the balance sheet date, and (ii) payments received for product sales bundled with multiple years of maintenance but for which VSOE did not exist for all undelivered elements of the arrangement. The Company provides an allowance for product returns as a reduction of revenue, based upon historical experience and known or expected trends. When more than one element, such as hardware, software and services are contained in a single arrangement, the Company will first allocate revenue based upon the relative selling price into two categories: (1) non-software components, such as hardware and any hardware-related items, as required system software that functions with the hardware to deliver the essential functionality of the hardware and related post-contract customer support, and software as service subscriptions and (2) software components and applications, such as post-contract customer support and other services. The Company will then allocate revenue within the non-software category to each element based upon their relative selling price using a hierarchy of VSOE, third-party evidence of selling price (“TPE”) or estimated selling prices (“ESP”), if VSOE or TPE does not exist. The Company will allocate revenue within the software category to the undelivered elements based upon their fair value using VSOE with the residual revenue allocated to the delivered elements. If the Company cannot objectively determine the VSOE of the fair value of any undelivered software element, the Company will defer revenue for all software components until all elements are delivered and services have been performed, until fair value can objectively be determined for any remaining undelivered elements, or until software maintenance is the only undelivered element which the Company does not have VSOE for, in which case revenue is recognized over the maintenance term for all software elements. Revenues associated with maintenance services are deferred and recognized as revenue ratably over the term of the contract. Revenues associated with software implementation and software engineering services are recognized when the services are performed. Costs of providing these services are included in cost of support and services. The Company has entered into various distribution, licensing and joint promotion agreements with OEMs, whereby the Company has provided to the OEM a non-exclusive software license to install the Company’s software on certain hardware or to resell the Company’s software in exchange for payments based on the products distributed by these OEMs. Such payments from the OEM or distributor are recognized as revenue in the period reported by the OEM. From time to time the Company will enter into funded software development arrangements. Under such arrangements, revenue recognition will not commence until final delivery and/or acceptance of the product. For arrangements where the Company has VSOE for the undelivered elements, the Company will follow the residual method and recognize product revenue upon final delivery and/or acceptance of the product. For arrangements where the Company does not have VSOE for the undelivered elements, the Company will recognize the entire arrangement fee ratably commencing at the time of final delivery and/or acceptance through the end of the service period in the arrangement. Certain arrangements, for which VSOE of fair value for the undelivered maintenance elements cannot be established, are accounted for as a single unit of account. The revenue recognized from single units of accounting are typically allocated and classified on the consolidated statements of operations as product revenue and support and services revenue. Since VSOE cannot be established, VSOE of similar maintenance offerings provides the basis for the support and services revenue classification, and the remaining residual consideration provides the basis for the product revenue classification. In 2013, the Company entered into a joint development agreement whereby final acceptance of the software delivered under the joint development agreement occurred on November 16, 2014. During 2014, the Company began to recognize the total committed fee as revenue ratably over a twenty-five and a half month period which began on November 16, 2014 and included a contractual twenty-four month maintenance period. During 2015, the customer elected to terminate its maintenance agreement and as such all unrecognized deferred revenue was accelerated and recognized as product revenue during the year. As of December 31, 2015 and 2014, the Company recorded product revenue of approximately $11.3 million and $0.6 million , respectively, and maintenance revenue of approximately $0.2 million related to this agreement for the year ended December 31, 2014. As of December 31, 2015, there is no deferred revenue or undelivered services remaining related to this agreement. (h) Property and Equipment Property and equipment are recorded at cost. Depreciation is recognized using the straight-line method over the estimated useful lives of the assets (3 to 7 years). Leasehold improvements are amortized on a straight-line basis over the terms of the respective leases or over their estimated useful lives, whichever is shorter. (i) Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations. The Company has not amortized goodwill related to its acquisitions, but instead tests the balance for impairment. The Company evaluates goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. The Company tests goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting unit. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. The Company’s annual impairment assessment is performed during the fourth quarter of each year, and the Company has determined there to be no impairment for any of the periods presented. Based on the Company’s analysis, the fair value of its reporting unit substantially exceeds the carrying value of its goodwill balances as of December 31, 2015 and 2014 . Identifiable intangible assets include (i) assets acquired through business combinations, which include customer contracts and intellectual property, and (ii) patents amortized over three years using the straight-line method. The gross carrying amount and accumulated amortization of other intangible assets as of December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 Goodwill $ 4,150,339 $ 4,150,339 Other intangible assets: Gross carrying amount $ 3,609,524 $ 3,395,024 Accumulated amortization (3,353,387 ) (3,198,987 ) Net carrying amount $ 256,137 $ 196,037 For the years ended December 31, 2015 , 2014 and 2013 , amortization expense was $154,400 , $121,874 and $122,951 , respectively. As of December 31, 2015 , amortization expense for existing identifiable intangible assets is expected to be $136,434 , $95,083 and $24,620 for the years ended December 31, 2016 , 2017 and 2018 , respectively. Such assets will be fully amortized at December 31, 2018 . (j) Software Development Costs and Purchased Software Technology In accordance with the authoritative guidance issued by the FASB on costs of software to be sold, leased, or marketed, costs associated with the development of new software products and enhancements to existing software products are expensed as incurred until technological feasibility of the product has been established. Based on the Company’s product development process, technological feasibility is established upon completion of a working model. Amortization of software development costs is recorded at the greater of the straight-line basis over the product’s estimated life, or the ratio of current period revenue of the related products to total current and anticipated future revenue of these products. The gross carrying amount and accumulated amortization of software development costs as of December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 Software development costs: Gross carrying amount $ 3,037,215 $ 2,903,115 Accumulated amortization (1,920,399 ) (1,394,598 ) Software development costs, net $ 1,116,816 $ 1,508,517 During the years ended December 31, 2015 , 2014 and 2013 , the Company recorded $525,801 , $471,773 and $339,589 , respectively, of amortization expense related to capitalized software costs. As of December 31, 2015 , amortization expense for software development costs is expected to be $467,257 , $292,144 , $247,095 , $79,174 and $31,146 for the years ended December 31, 2016 , 2017 , 2018 , 2019 and 2020 , respectively. Such assets will be fully amortized at December 31, 2020 . (k) Income Taxes The Company records income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In determining the period in which related tax benefits are realized for financial reporting purposes, excess share-based compensation deductions included in net operating losses are realized after regular net operating losses are exhausted. The Company accounts for uncertain tax positions in accordance with the authoritative guidance issued by the FASB on income taxes, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return, should be recorded in the financial statements. Pursuant to the authoritative guidance, the Company may recognize the tax benefit from an uncertain tax position only if it meets the “more likely than not” threshold that the position will be sustained on examination by the taxing authority, based on the technical merits of the position or expiration of statutes. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. In addition, the authoritative guidance addresses de-recognition, classification, interest and penalties on income taxes, accounting in interim periods, and also requires increased disclosures. The Company includes interest and penalties related to its uncertain tax positions as part of income tax expense within its consolidated statement of operations. See Note (6) Income Taxes for additional information. (l) Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the sum of the expected future cash flows, undiscounted and without interest, is less than the carrying amount of the asset, an impairment loss is recognized as the amount by which the carrying amount of the asset exceeds its fair value. (m) Share-Based Payments The Company accounts for share-based payments in accordance with the authoritative guidance issued by the FASB on share-based compensation, which establishes the accounting for transactions in which an entity exchanges its equity instruments for goods or services. Under the provisions of the authoritative guidance, share-based compensation expense is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite employee service period (generally the vesting period), net of estimated forfeitures. For share-based payment awards that contain performance criteria share-based compensation expense is recorded when the achievement of the performance condition is considered probable of achievement and is recorded straight-line over the requisite service period. If such performance criteria are not met, no compensation cost is recognized and any recognized compensation cost is reversed. The Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model or the Monte Carlo simulation model if a market condition exists. Share-based compensation expense for a share-based payment award with a market condition is recorded straight-line over the longer of the explicit service period or the service period derived from the Monte Carlo simulation. The estimation of share-based awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company’s current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. Additionally, share-based awards to non-employees are expensed over the period in which the related services are rendered at their fair value. All share-based awards are expected to be fulfilled with new shares of common stock. See Note (10) Share-Based Payment Arrangements for additional information. (n) Foreign Currency Assets and liabilities of foreign operations are translated at rates of exchange at the end of the period, while results of operations are translated at average exchange rates in effect for the period. Gains and losses from the translation of foreign assets and liabilities from the functional currency of the Company’s subsidiaries into the U.S. dollar are classified as accumulated other comprehensive loss in stockholders’ deficit. Gains and losses from foreign currency transactions are included in the consolidated statements of operations within interest and other income (loss), net. During the years ended December 31, 2015 , 2014 and 2013 , foreign currency transactional losses totaled approximately $0.4 million , $0.7 million and $1.1 million , respectively. (o) Earnings Per Share (EPS) Basic EPS is computed based on the weighted average number of shares of common stock outstanding. Diluted EPS is computed based on the weighted average number of common shares outstanding increased by dilutive common stock equivalents, attributable to stock option awards, restricted stock awards and Series A redeemable convertible preferred stock outstanding. The following represents the common stock equivalents that were excluded from the computation of diluted shares outstanding because their effect would have been anti-dilutive for the years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, 2015 2014 2013 Stock options and restricted stock 7,972,341 7,800,293 8,150,032 Series A redeemable convertible preferred stock 8,781,516 8,781,516 8,781,516 Total anti-dilutive common stock equivalents 16,753,857 16,581,809 16,931,548 The following represents a reconciliation of the numerators and denominators of the basic and diluted EPS computation: Year Ended December 31, 2015 2014 2013 Numerator: Net Loss $ (1,929,361 ) $ (7,211,821 ) $ (10,932,590 ) Effects of Series A redeemable convertible preferred stock: Less: Series A redeemable convertible preferred stock dividends 765,203 747,616 216,379 Less: Accretion to redemption value of Series A redeemable convertible preferred stock 587,613 493,363 127,504 Net loss attributable to common stockholders $ (3,282,177 ) $ (8,452,800 ) $ (11,276,473 ) Denominator: Weighted average basic shares outstanding 41,093,644 46,265,225 47,979,467 Effect of dilutive securities: Stock options and restricted stock — — — Series A redeemable convertible preferred stock — — — Weighted average diluted shares outstanding 41,093,644 46,265,225 47,979,467 EPS: Basic net loss per share attributable to common stockholders $ (0.08 ) $ (0.18 ) $ (0.24 ) Diluted net loss per share attributable to common stockholders $ (0.08 ) $ (0.18 ) $ (0.24 ) (p) Investments As of December 31, 2015 and 2014 , the Company did not have any cost-method investments. During 2013, the Company sold its interest in Tianjin Zhongke Blue Whale Information Technologies Co., Ltd. (“Blue Whale”), a Chinese joint venture, for $3.0 million . The Company recorded a gain of $2.1 million within "interest and other (loss) income, net" in the accompanying consolidated statements of operations. (q) Treasury Stock The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ deficit. (r) Recently Issued Accounting Pronouncements In November 2015, the FASB issued new guidance which requires an entity to classify deferred tax liabilities and assets, along with any related valuation allowance, as non-current in its consolidated balance sheet. The amendments in this update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, which for the Company will be the annual period ending December 31, 2017. Early adoption, including adoption in an interim period, is permitted. The Company has not yet adopted this guidance and currently does not expect the adoption of the new guidance by the Company to have a significant impact on our financial results. In November 2014, the FASB issued new guidance which requires an entity to determine whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or to equity by considering the economic characteristics and risks of the entire hybrid financial instrument, including the embedded derivative feature that is being evaluated for separate accounting from the host contract. The effects of initially adopting the amendments in this update should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendments are effective. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which for the Company will be the annual period ending December 31, 2016. Early adoption, including adoption in an interim period, is permitted. The Company has not yet adopted this guidance and currently does not expect the adoption of the new guidance by the Company to have a significant impact on our financial results. In August 2014, the FASB issued new guidance which requires an entity to evaluate whether there are conditions or events, in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the financial statements are available to be issued when applicable), and to provide related footnote disclosures in certain circumstances. The new standard is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter, which for the Company will be the annual period ending December 31, 2016. Early adoption is permitted. The Company has not yet adopted this guidance and currently does not expect the adoption of the new guidance by the Company to have a significant impact on our financial reporting or disclosures. In May 2014, the FASB issued new guidance which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This new guidance will replace most existing revenue recognition guidance in Generally Accepted Accounting Principles in the United States when it becomes effective. The new standard is effective for the annual period ending after December 15, 2017, including interim reporting period within that period, which for the Company will be the annual period ending December 31, 2018. Early adoption as of January 1, 2017 is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that this new guidance will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its financial reporting.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consist of the following: December 31, 2015 December 31, 2014 Computer hardware and software $ 16,607,596 $ 16,065,087 Furniture and equipment 961,712 939,475 Leasehold improvements 1,931,291 1,997,529 Automobile 13,008 13,008 Property and Equipment, Gross 19,513,607 19,015,099 Less accumulated depreciation (17,947,675 ) (16,867,911 ) Property and Equipment, Net $ 1,565,932 $ 2,147,188 During the year ended December 31, 2015 , the Company wrote off approximately $214,000 of fixed assets and approximately $161,000 of related accumulated depreciation related to assets that were no longer in use. During the year ended December 31, 2014, the Company wrote off approximately $0.7 million of fully depreciated assets and related accumulated depreciation related to assets that were no longer in use. During the year ended December 31, 2014, in connection with the Company's 2013 restructuring plan, the Company wrote-off gross property and equipment of $0.6 million and the associated accumulated depreciation of $0.3 million related to assets that were no longer in use as a result of the closure of foreign facilities. Depreciation expense was $1.3 million , $1.7 million and $2.2 million in 2015 , 2014 and 2013 , respectively.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company measures its cash equivalents, marketable securities and derivative instruments at fair value. Fair value is an exit price, representing the amount that would be received on the sale of an asset or that would be paid to transfer a liability in an orderly transaction between market participants. As a basis for considering such assumptions, the Company utilizes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value. Fair Value Hierarchy The methodology for measuring fair value specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs) or reflect the Company’s own assumptions of market participant valuation (unobservable inputs). As a result, observable and unobservable inputs have created the following fair value hierarchy: • Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities. The Level 1 category includes money market funds and commercial paper, which at December 31, 2015 and 2014 totaled $2.7 million and $2.0 million , respectively, which are included within “cash and cash equivalents” in the consolidated balance sheets. • Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly. The Level 2 category includes government securities and corporate debt securities, which at December 31, 2015 and 2014 totaled $7.4 million and $10.9 million , respectively, which are included within “marketable securities” in the consolidated balance sheets. • Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The Level 3 category includes derivatives, which at both December 31, 2015 and 2014 totaled $0.1 million which are included in "other long-term liabilities" in the consolidated balance sheets with the change in fair value from the period included in "interest and other (loss) income, net" in the consolidated statement of operations. The Company did not hold any cash, cash equivalents or marketable securities categorized as Level 3 as of December 31, 2015 or 2014 . Measurement of Fair Value The Company measures fair value as an exit price using the procedures described below for all assets and liabilities measured at fair value. When available, the Company uses unadjusted quoted market prices to measure fair value and classifies such items within Level 1. If quoted market prices are not available, fair value is based upon financial models that use, when possible, current market-based or independently-sourced market parameters such as interest rates and currency rates. Items valued using financial generated models are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be inputs that are readily observable. If quoted market prices are not available, the valuation model used generally depends on the specific asset or liability being valued. The determination of fair value considers various factors including interest rate yield curves and time value underlying the financial instruments. The fair value of the Company’s investments in corporate debt and government securities have been determined utilizing third party pricing services and reviewed by management. The pricing services use inputs to determine fair value which are derived from observable market sources including reportable trades, benchmark curves, credit spreads, broker/dealer quotes, bids, offers, and other industry and economic events. These investments are included in Level 2 of the fair value hierarchy. The fair value of the Company’s derivatives were valued using the Black-Scholes pricing model adjusted for probability assumptions, with all significant inputs, except for the probability and volatility assumptions, derived from or corroborated by observable market data such as stock price and interest rates. The probability and volatility assumptions are both significant to the fair value measurement and unobservable. These embedded derivatives are included in Level 3 of the fair value hierarchy. Items Measured at Fair Value on a Recurring Basis The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2015 : Fair Value Measurements at Reporting Date Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant other Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents: Money market funds and commercial paper $ 2,725,094 $ 2,725,094 $ — $ — Total cash equivalents 2,725,094 2,725,094 — — Marketable securities: Corporate debt and government securities 7,420,042 — 7,420,042 — Total marketable securities 7,420,042 — 7,420,042 — Derivative liabilities: Derivative Instruments 82,024 — — 82,024 Total derivative liabilities 82,024 — — 82,024 Total assets and liabilities measured at fair value $ 10,227,160 $ 2,725,094 $ 7,420,042 $ 82,024 The following table presents the Company’s assets that are measured at fair value on a recurring basis at December 31, 2014 : Fair Value Measurements at Reporting Date Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant other Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents: Money market funds and commercial paper $ 2,049,972 $ 2,049,972 $ — $ — Total cash equivalents 2,049,972 2,049,972 — — Marketable securities: Corporate debt and government securities 10,900,722 — 10,900,722 — Total marketable securities 10,900,722 — 10,900,722 — Derivative liabilities: Derivative Instruments 137,171 — — 137,171 Total derivative liabilities 137,171 — — 137,171 Total assets and liabilities measured at fair value $ 13,087,865 $ 2,049,972 $ 10,900,722 $ 137,171 The following table presents the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of each of the years ended December 31, 2015 and 2014 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) December 31, 2015 December 31, 2014 December 31, 2013 Beginning Balance $ 137,171 $ 159,134 $ — Issuance of Derivative Instruments — — 170,337 Total gains recognized in earnings (55,147 ) (21,963 ) (11,203 ) Ending Balance $ 82,024 $ 137,171 $ 159,134

Marketable Securities

Marketable Securities	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Marketable Securities The Company’s marketable securities consist of available-for-sale securities, which are carried at fair value, with unrealized gains and losses reported as a separate component of stockholders’ equity. Unrealized gains and losses are computed on the specific identification method. Realized gains, realized losses and declines in value judged to be other-than-temporary, are included in interest and other income (loss), net. The cost of available-for-sale securities sold is based on the specific identification method and interest earned is included in interest and other income. The cost and fair values of the Company’s available-for-sale marketable securities as of December 31, 2015 , were as follows: Aggregate Cost or Amortized Net Unrealized Government securities $ 6,560,303 $ 6,562,792 $ (2,489 ) Corporate debt securities 859,739 860,656 (917 ) $ 7,420,042 $ 7,423,448 $ (3,406 ) The cost and fair values of the Company’s available-for-sale marketable securities as of December 31, 2014 , were as follows: Aggregate Cost or Amortized Net Unrealized Government securities $ 6,740,825 $ 6,741,466 $ (641 ) Corporate debt securities 4,159,897 4,160,664 (767 ) $ 10,900,722 $ 10,902,130 $ (1,408 ) The cost and fair values of available-for-sale securities by contractual maturity as of December 31, 2015 , were as follows: Fair Value Cost Due within one year $ 7,420,042 $ 7,423,448 Due after one year — — $ 7,420,042 $ 7,423,448

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses are comprised of the following: December 31, 2015 December 31, 2014 Accrued compensation $ 2,236,494 $ 2,320,238 Accrued consulting and professional fees 1,561,425 594,580 Accrued marketing and promotion 69,258 27,390 Other accrued expenses 588,746 1,008,760 Accrued income taxes 106,270 137,191 Accrued other taxes 1,247,596 1,117,053 Accrued hardware purchases 67,280 580,932 Accrued restructuring costs 717,640 959,270 Accrued investigation, litigation, and settlement costs — 6,880 Accrued Series A redeemable convertible preferred stock dividends 188,805 186,904 $ 6,783,514 $ 6,939,198

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Information pertaining to the Company’s loss before income taxes and the applicable provision for income taxes is as follows: December 31, 2015 2014 2013 Loss before income taxes: Domestic loss $ (2,310,565 ) $ (7,638,422 ) $ (13,466,322 ) Foreign income 756,747 936,692 959,964 Total loss before income taxes: (1,553,818 ) (6,701,730 ) (12,506,358 ) Provision (benefit) for income taxes: Current: Federal $ 3,939 $ (843 ) $ (1,823,192 ) State and local 16,002 26,145 (209,079 ) Foreign 482,242 400,407 348,300 502,183 425,709 (1,683,971 ) Deferred: Federal $ (167,634 ) $ 14,878 $ 14,875 State and local 7,006 (3,027 ) 981 Foreign 33,988 72,531 94,347 (126,640 ) 84,382 110,203 Total provision (benefit) for income taxes: $ 375,543 $ 510,091 $ (1,573,768 ) During 2015 , the Company recorded a tax provision of $0.6 million related to state and local and foreign taxes offset by a tax benefit of $0.2 million related to certain AMT tax credits that became realizable on a more-likely-than-not basis as a result of recent federal tax legislation enacted in December 2015. During 2014 , the Company recorded a tax provision of $0.5 million related to state and local and foreign taxes. During 2013, the Company recorded a tax benefit of $1.6 million primarily related to the reversal of unrecognized tax benefits of $2.3 million due to the expiration of applicable statutes of limitations partly offset by state and local and foreign taxes, withholding taxes on the gain on the sale of our cost-method investment and interest related to federal uncertain tax positions. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2015 2014 Deferred Tax Assets: Allowance for receivables $ 72,539 $ 42,861 Deferred revenue 2,939,462 4,198,465 Share-based compensation 3,095,723 3,099,636 Accrued expenses and other liabilities 307,565 362,721 Domestic net operating loss carryforwards 26,023,318 23,386,049 Foreign net operating loss carryforwards 99,544 7,503 Tax credit carryforwards 574,997 574,998 AMT tax credit carryforwards 483,285 484,077 Capital loss carryforwards 77,586 75,607 Fixed assets 554,154 527,881 Intangibles 1,762,519 2,051,230 Sub-total 35,990,692 34,811,028 Valuation allowance (35,121,608 ) (34,625,398 ) Total Deferred Tax Assets 869,084 185,630 Deferred Tax Liabilities: Deferred state income tax (541,359 ) — Foreign withholding taxes (128,261 ) (111,291 ) Total Deferred Tax Liabilities (669,620 ) (111,291 ) Net Deferred Tax Assets $ 199,464 $ 74,339 As of each reporting date, the Company considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. As of December 31, 2015 , the Company considered the impact of new legislation regarding potential refunds of its AMT tax credits and determined that there is sufficient positive evidence to conclude that it is more-likely-than-not that AMT credits of $0.2 million are realizable which resulted in a reduction to the valuation allowance and a benefit to income tax expense. With respect to the Company’s other net domestic deferred tax assets, the Company’s conclusion did not change and, therefore, the Company did not record any benefit for its net domestic deferred tax assets for 2015 and 2014 . As of December 31, 2015 , the Company had federal net operating loss carryforwards of approximately $74.0 million which are set to expire beginning in 2030 through 2035, if not utilized. As of December 31, 2015 , the Company had approximately $1.1 million of various tax credit carryforwards, of which, approximately $0.6 million related to research and development tax credit carryforwards which expire at various dates beginning in 2020 through 2029, if not utilized. As of December 31, 2015 , the Company had approximately $0.5 million related to AMT credit carryforwards, which may be carried forward indefinitely. As of December 31, 2015 , the Company has not provided for the United States income or additional foreign withholding taxes on approximately $4.1 million of undistributed earnings of its subsidiaries operating outside of the United States, with the exception of China. It is the Company’s practice and intention to reinvest those earnings permanently. Generally, such amounts become subject to United States taxation upon remittance of dividends and under certain other circumstances. Determination of the amount of any unrecognized deferred tax liability related to investments in these foreign subsidiaries is not practicable. The effective tax rate before income taxes varies from the current statutory federal income tax rate as follows: December 31, 2015 2014 2013 Tax at Federal statutory rate $ (543,836 ) $ (2,345,606 ) $ (4,377,225 ) Increase (reduction) in income taxes resulting from: State and local taxes 3,195 10,182 8,948 Non-deductible expenses (31,199 ) 52,565 25,295 Settlement costs — (80,406 ) 56,882 Net effect of foreign operations 235,850 129,003 552,855 Uncertain tax positions 26,814 28,485 (2,173,905 ) Change in valuation allowance 680,780 2,715,868 4,333,382 Other 3,939 — — $ 375,543 $ 510,091 $ (1,573,768 ) A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: 2015 2014 Balance at January 1, $ 224,637 $ 217,237 Increases to tax positions taken in prior years 9,306 7,400 Decreases to tax positions taken in prior years — — Increase for tax positions taken during the current year — — Expiration of statutes of limitation — — Translation (16,654 ) — Balance at December 31, $ 217,289 $ 224,637 At December 31, 2015 , $0.3 million including interest, if recognized, would reduce the Company’s annual effective tax rate. As of December 31, 2015 , the Company had approximately $0.1 million of accrued interest. The Company believes it is reasonably possible that $14,265 of its unrecognized tax benefits will reverse within the next 12 months . The Company records any interest and penalties related to unrecognized tax benefits in income tax expense. The Company files federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2012 through 2015 tax years generally remain subject to examination by federal and most state tax authorities. In addition to the U.S., the Company’s major taxing jurisdictions include China, Taiwan, Japan, South Korea, France and Germany.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The changes in Accumulated Other Comprehensive Loss, net of applicable tax, for December 31, 2015 are as follows: Foreign Net Net Total Accumulated other comprehensive (loss) income at December 31, 2014 $ (1,536,495 ) $ (1,408 ) $ 26,613 $ (1,511,290 ) Other comprehensive (loss) income Other comprehensive loss before reclassifications (190,499 ) (1,549 ) (5,997 ) (198,045 ) Amounts reclassified from accumulated other comprehensive (loss) income — (449 ) 6,570 6,121 Total other comprehensive (loss) income (190,499 ) (1,998 ) 573 (191,924 ) Accumulated other comprehensive (loss) income at December 31, 2015 $ (1,726,994 ) $ (3,406 ) $ 27,186 $ (1,703,214 ) The changes in Accumulated Other Comprehensive Loss, net of applicable tax, for December 31, 2014 are as follows: Foreign Net Net Total Accumulated other comprehensive (loss) income at December 31, 2013 $ (1,693,905 ) $ 3,410 $ (71,892 ) $ (1,762,387 ) Other comprehensive (loss) income Other comprehensive income (loss) before reclassifications 157,410 (844 ) 85,744 242,310 Amounts reclassified from accumulated other comprehensive (loss) income — (3,974 ) 12,761 8,787 Total other comprehensive income (loss) 157,410 (4,818 ) 98,505 251,097 Accumulated other comprehensive (loss) income at December 31, 2014 $ (1,536,495 ) $ (1,408 ) $ 26,613 $ (1,511,290 ) The changes in Accumulated Other Comprehensive Loss, net of applicable tax, for December 31, 2013 are as follows: Foreign Net Net Total Accumulated other comprehensive (loss) income at December 31, 2012 $ (1,601,138 ) $ 6,210 $ (55,122 ) $ (1,650,050 ) Other comprehensive (loss) income Other comprehensive loss before reclassifications (92,767 ) (1,974 ) (25,320 ) (120,061 ) Amounts reclassified from accumulated other comprehensive (loss) income — (826 ) 8,550 7,724 Total other comprehensive loss (92,767 ) (2,800 ) (16,770 ) (112,337 ) Accumulated other comprehensive (loss) income at December 31, 2013 $ (1,693,905 ) $ 3,410 $ (71,892 ) $ (1,762,387 ) For the year ended December 31, 2015 and 2014 , the amounts reclassified to net loss related to the Company’s defined benefit plan and sale of marketable securities. These amounts are included within “Operating loss" within the consolidated statement of operations.

Series A Redeemable Convertible

Series A Redeemable Convertible Preferred Stock	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Series A Redeemable Convertible Preferred Stock	Series A Redeemable Convertible Preferred Stock On September 16, 2013, the Company issued to Hale Capital Partners, LP (“Hale”) 900,000 shares of the Company’s Series A redeemable convertible preferred stock, par value $0.001 per share, at a price of $10 per share, for an aggregate purchase consideration of $9.0 million , which was subsequently transferred to HCP-FVA LLC. Each share of Series A redeemable convertible preferred stock is convertible into common stock equivalents, at the option of the holder and upon certain mandatory conversion events described below, at a conversion rate of $1.02488 (as adjusted for stock splits, stock dividends, reverse stock splits, stock combinations, reclassifications and similar events). The Company received net proceeds of approximately $8.7 million from the issuance of the redeemable convertible preferred stock in 2013, net of transaction costs. If the volume weighted average price of common stock for each trading day of any 60 consecutive trading days exceeds 250% of the conversion price and exceeds 225% of the conversion price through the conversion date, and certain equity conditions are met such that shares of common stock issued upon conversion can be immediately saleable by the redeemable convertible preferred stockholders, the Company can convert the redeemable convertible preferred stock up to an amount equal to the greater of 25% of the daily trading volume for the 20 consecutive trading days immediately preceding the conversion date or the amount of an identified bona fide block trade at a price reasonably acceptable to the applicable redeemable convertible preferred stockholder, but which price is not less than the arithmetic average of the weighted average prices of the common stock for the five trading days immediately preceding such sale. The holders of the Series A redeemable convertible preferred stock have veto power over certain future financings, and certain rights to participate in any subsequent financing, whether through debt or equity (subject to certain exclusions). In addition, the Company's agreements with the holders of the Series A redeemable convertible preferred stock provide that if, at the time of certain future debt or equity financings, the proceeds of which exceed $5.0 million , the holders of the Series A redeemable convertible preferred stock still have outstanding Series A redeemable convertible preferred stock, then the Company must offer to repurchase their Series A redeemable convertible preferred stock. The holders of the Series A redeemable convertible preferred stock have the right to accept the offer or to retain their Series A redeemable convertible preferred stock. If the Company does a financing, and the holders of the Series A redeemable convertible preferred stock elect to have their Series A redeemable convertible preferred stock repurchased, then the capital raised in excess of $5.0 million will go to repurchase the holders’ Series A redeemable convertible preferred stock, instead of being able to be used for our business. Upon consummation of a fundamental sale transaction, the Series A redeemable convertible preferred stock shall be redeemed at a per share redemption price equal to the greater of 250% of the per share purchase price of the Series A redeemable convertible preferred stock or the product of the number of shares of common stock underlying the Series A redeemable convertible preferred stock and the closing price immediately prior to such fundamental sale transaction. Upon certain triggering events, such as bankruptcy, insolvency or a material adverse effect, failure to achieve minimum financial covenants or failure of the Company to issue shares upon conversion of the Series A redeemable convertible preferred stock in accordance with its obligations, the Series A redeemable convertible preferred stockholders may require the Company to redeem all or some of the Series A redeemable convertible preferred stock at a price equal to the greater of 100% of the stated value plus accrued and unpaid dividends or the product of the number of shares of common stock underlying the Series A redeemable convertible preferred stock and the closing price as of the occurrence of the triggering event. On or after August 5, 2017, each Series A redeemable convertible preferred stockholder can require the Company to redeem its Series A redeemable convertible preferred stock in cash at a price equal to 100% of the stated value being redeemed plus accrued and unpaid dividends. If the Company does not have the funds necessary to redeem the Series A redeemable convertible preferred stock, the dividends accruing on any outstanding Series A redeemable convertible preferred stock will increase to prime plus 10% (from prime plus 5% ). For each six months that the Series A redeemable convertible preferred stock remains unredeemed, the dividend rate increases by 1% , subject to a maximum dividend rate of 19% . In addition, the Company's failure to redeem the Series A redeemable convertible preferred stock would be considered a “Breach Event” under the agreements with the holders of the Series A redeemable convertible preferred stock. If a Breach Event were to occur and the Company is in default under or has breached any provision in respect of its obligations to redeem the Series A redeemable convertible preferred stock, then, under the agreements with the holders of our Series A redeemable convertible preferred stock, the Company's Board of Directors would automatically be increased, with the holders of the Series A redeemable convertible preferred stock having the right to appoint the new directors, so that the holders of the Series A redeemable convertible preferred stock would have appointed a majority of the Board of Directors. This would give the holders of the Series A redeemable convertible preferred stock control of the Company. As of December 31, 2015 , the Company was not in compliance with the financial covenant based on billings for two consecutive quarters and the financial covenant based on cash for the fourth quarter of 2015, which provided the redeemable convertible preferred stockholders the right to require the Company to redeem any of the Series A redeemable convertible preferred stock at the greater of 100% of the stated value plus accrued and unpaid dividends or the product of the number of shares of common stock underlying the Series A redeemable convertible preferred stock and the closing price as of December 31, 2015 . On January 27, 2016, the Company obtained a waiver from the holders of the Series A redeemable convertible preferred stock waiving the holders' rights arising from the covenant violation as of December 31, 2015 . The Company believes it will be in compliance with the 2016 quarterly financial covenants with respect to the holders of the Series A redeemable convertible preferred stock. However, if the Company is unable to maintain compliance with the 2016 covenants, the Company intends to work with the holders of the Series A redeemable convertible preferred stock to obtain additional waivers, as necessary. As of December 31, 2015 , the Company did not fail any other financial or non-financial covenants related to the Company's Series A redeemable convertible preferred stock. Holders of the Series A redeemable convertible preferred stock are entitled to receive quarterly dividends at the Prime Rate (Wall Street Journal Eastern Edition) plus 5% (up to a maximum amount of 10%) , payable in cash, provided, that if the Company will not have at least $1.0 million in positive cash flow for any calendar quarter after giving effect to the payment of such dividends, the Company, at its election, can pay such dividends in whole or in part in cash, provided that cash flow from operations is not negative, and the remainder can be accrued or paid in common stock to the extent certain equity conditions are satisfied. As of December 31, 2014, due to the lack of sufficient surplus to pay dividends as required by the Delaware General Business Corporation Law, the Company was not permitted to pay the fourth quarter dividend in cash and accrued its fourth quarter 2014 dividend. As of March 31, 2015, the Company had sufficient surplus to pay dividends as required by the Delaware General Business Corporation law; however, the Company was not in compliance with the positive cash flow requirement to pay dividends in cash which would have required the Company to pay these dividends in kind through additional shares of this Series A redeemable convertible preferred stock. As a result, on April 20, 2015, the Company obtained a waiver from the holders to allow the Company to pay the fourth quarter 2014 and first quarter 2015 quarterly dividends in cash. These dividends were paid in cash in April 2015. The Company subsequently accrued the dividends payable for the periods ended June 30, 2015 and September 30, 2015. In December 2015, the holder of the Series A redeemable convertible preferred stock exercised its right to convert such accrued dividends into 227,345 shares of the Company's common stock. In January 2016, the Company issued 103,200 shares of the Company's common stock as payment for the fourth quarter 2015 dividend. Each share of redeemable convertible preferred stock has a vote equal to the number of shares of common stock into which the redeemable convertible preferred stock would be convertible as of the record date of September 13, 2013. The Company’s closing stock price on the record date was $1.23 per share which results in voting power of an aggregate of 7,317,073 shares. In addition, holders of a majority of the redeemable convertible preferred stock must approve certain actions, including any amendments to the Company's charter or bylaws that adversely affects the voting powers, preferences or other rights of the redeemable convertible preferred stock; payment of dividends or distributions; any liquidation, capitalization, reorganization or any other fundamental transaction of the Company; issuance of certain equity securities senior to or in parity with the redeemable convertible preferred stock as to dividend rights, redemption rights, liquidation preference and other rights; issuances of equity below the conversion price; any liens or borrowings other than non-convertible indebtedness from standard commercial lenders which does not exceed 80% of the Company’s accounts receivable; and the redemption or purchase of any capital stock of the Company. The Company has classified the Series A redeemable convertible preferred stock as temporary equity in the financial statements as it is subject to redemption at the option of the holder under certain circumstances. As a result of the Company’s analysis of all the embedded conversion and put features within the Series A redeemable convertible preferred stock, the contingent redemption put options in the Series A redeemable convertible preferred stock were determined to not be clearly and closely related to the debt-type host and also did not meet any other scope exceptions for derivative accounting. Therefore the contingent redemption put options are being accounted for as derivative instruments and the fair value of these derivative instruments were bifurcated from the Series A redeemable convertible preferred stock and recorded as a liability. As of December 31, 2015 and 2014 the fair value of these derivative instruments was $82,024 and $137,171 , respectively. The gain on the change in fair value of these derivative instruments for 2015 and 2014 of $55,147 and $21,963 , respectively, was included in “Interest and other (loss) income, net” within the consolidated statement of operations. At the time of issuance the Company recorded transaction costs of $0.3 million , a beneficial conversion feature of $2.0 million and fair value allocated to the embedded derivatives of $0.2 million . These amounts were recorded as discounts to the Series A redeemable convertible preferred stock and are being accreted to the Series A redeemable convertible preferred stock using the effective interest method through the stated redemption date of August 5, 2017, which represents the earliest redemption date of the instrument. The Company included deductions of $0.6 million and $0.5 million as accretion adjustments to net loss attributable to common stockholders on the statement of operations and in determining loss per share for the years ended December 31, 2015 and 2014 , respectively. The Company also included deductions of $0.8 million and $0.7 million as adjustments to net loss attributable to common shareholders on the statement of operations and in determining loss per share for the years ended December 31, 2015 and 2014 , respectively, for dividends (including accrued dividends) on the Series A redeemable convertible preferred stock during the period.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Stock Repurchase Activity On April 22, 2015, the Company’s Board of Directors (the "Board") approved a new stock buy-back program (the "Repurchase Program"). The Repurchase Program authorizes management to repurchase in the aggregate up to five million shares of the Company's common stock. Repurchases may be made by the Company from time to time in open-market or privately-negotiated transactions as permitted by securities laws and other legal requirements, and subject to market conditions and other factors. The Repurchase Program superseded and replaced the Company's prior stock buy-back program. The Repurchase Program does not obligate the Company to make repurchases at any specific time or situation. The Company was required to obtain approvals from the Series A redeemable convertible preferred stockholders for the Repurchase Program. The Repurchase Program does not have an expiration date and may be amended or terminated by the Board at any time without prior notice. During the year ended December 31, 2015 , the Company repurchased 92,161 shares of its common stock at an aggregate purchase price of $137,858 or $1.50 per share. As of December 31, 2015 , the Company had the authorization to repurchase 4,907,839 shares of its common stock based upon its judgment and market conditions. During the year ended December 31, 2014 , the Company entered into a purchase agreement to acquire 4,298,533 shares of the Company's common stock held by the Estate of ReiJane Huai (the "Estate") for $4.7 million and the shares were transferred to the Company's treasury account. On June 12, 2014, the Company entered into an agreement to settle the action it filed against the Estate in Surrogates Court, Nassau County, State of New York. Mr. Huai was the former Chairman, President and Chief Executive Officer of the Company. Effective June 27, 2014, pursuant to the settlement agreement, the Estate transferred 3,132,141 shares of FalconStor common stock to the Company. The Company recorded these shares within treasury and recorded a gain of $5.3 million within "Investigation, litigation, and settlement related costs (benefits)" in the consolidated statement of operations based upon the closing price of the Company's stock price on June 26, 2014 of $1.69 per share. Independent Marketing Agreement On July 24, 2015, the Company entered into an Independent Marketing Agreement with RFN Prime Marketing Inc., to provide among other items, certain sales and marketing deliverables to the Company in exchange for up to 2.55 million shares of restricted Company common stock which will be issued based on certain milestone achievements and/or transactions over a twenty-four month period. The restricted Company common stock will be valued as they are earned, and the resulting value will be recorded as an expense in the period in which the performance milestone is met and the stock is earned. As of December 31, 2015 , none of the performance milestones have been met, and therefore no restricted Company common stock has been issued.

Share-Based Payment Arrangement

Share-Based Payment Arrangements	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Payment Arrangements	Share-Based Payment Arrangements The following table summarizes the plans under which the Company granted equity compensation as of December 31, 2015 : Name of Plan Shares Shares Available Shares Last Date for Grant FalconStor Software, Inc., 2006 Incentive Stock Plan 13,455,546 2,914,559 7,310,270 May 17, 2016 FalconStor Software, Inc., 2013 Outside Directors Equity Compensation Plan 400,000 210,000 133,900 May 9, 2016 On July 1, 2015 , the total shares available for issuance under the FalconStor Software, Inc., 2006 Incentive Stock Plan (the “2006 Plan”) totaled 3,246,122 . Pursuant to the 2006 Plan, as amended, if, on July 1 st of any calendar year in which the 2006 Plan is in effect, the number of shares of stock as to which options, restricted shares and restricted stock units may be granted under the 2006 Plan is less than five percent (5)% of the number of outstanding shares of stock, then the number of shares of stock available for issuance under the 2006 Plan is automatically increased so that the number equals five percent (5)% of the shares of stock outstanding. In no event shall the number of shares of stock subject to the 2006 Plan in the aggregate exceed twenty million shares, subject to adjustment as provided in the 2006 Plan. On July 1, 2015 , the total number of outstanding shares of the Company’s common stock totaled 40,920,192 . Pursuant to the 2006 Plan, as amended, the total shares available for issuance under the 2006 Plan were not increased as of July 1, 2015 . The following table summarizes the Company’s equity plans that have expired but that still have equity awards outstanding as of December 31, 2015 : Name of Plan Shares Available for Grant Shares Outstanding FalconStor Software, Inc., 2000 Stock Option Plan — 328,171 2004 Outside Directors Stock Option Plan — 40,000 FalconStor Software, Inc., 2007 Outside Directors Equity Compensation Plan — 160,000 All outstanding options granted under the Company’s equity plans have terms of ten years A summary of the Company’s stock option activity for 2015 is as follows: Number of Weighted Weighted Aggregate Options Outstanding at December 31, 2014 5,466,936 $ 3.93 5.51 $ 7,350 Granted 340,000 $ 1.81 Exercised (43,560 ) $ 1.36 Forfeited (666,185 ) $ 5.00 Expired (241,250 ) $ 6.50 Options Outstanding at December 31, 2015 4,855,941 $ 3.53 4.76 $ 632,581 Options Exercisable at December 31, 2015 4,046,871 $ 3.92 4.13 $ 374,972 Options Expected to Vest after December 31, 2015 (1) 566,349 $ 1.60 7.88 $ 180,326 (1) Options expected to vest after December 31, 2015 reflect an estimated forfeiture rate Stock option exercises are fulfilled with new shares of common stock. The total cash received from stock option exercises for the years ended December 31, 2015 , 2014 and 2013 was $59,242 , $24,684 and $697,500 , respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2015 , 2014 and 2013 was $9,970 , $3,836 and $121,819 , respectively. The Company recognized share-based compensation expense for all awards issued under the Company’s stock equity plans in the following line items in the consolidated statement of operations: Years ended December 31, 2015 2014 2013 Cost of revenue - Product $ — $ — $ 181 Cost of revenue - Support and Service 98,776 91,197 136,975 Research and development costs 806,348 282,416 363,296 Selling and marketing 285,787 327,694 397,967 General and administrative 738,466 764,876 807,010 $ 1,929,377 $ 1,466,183 $ 1,705,429 The Company did not recognize any tax benefits related to share-based compensation expense during the years ended December 31, 2015 , 2014 and 2013 . The Company has the ability to issue both restricted stock and restricted stock units. The fair value of the restricted stock awards and restricted stock units are expensed at either (i) the fair value per share at date of grant (directors, officers and employees), or (ii) the fair value per share as of each reporting period (non-employee consultants). A summary of the total stock-based compensation expense related to restricted stock awards and restricted stock units, which is included in the Company’s total share-based compensation expense for each respective year, is as follows: Years ended December 31, 2015 2014 2013 Directors, officers and employees $ 827,055 $ 602,889 $ 257,843 Non-employee consultants — — — $ 827,055 $ 602,889 $ 257,843 A summary of the Company’s restricted stock activity for 2015 is as follows: Number of Restricted Stock Awards Non-Vested at December 31, 2014 2,333,357 Granted 1,493,555 Vested (310,155 ) Forfeited (400,357 ) Non-Vested at December 31, 2015 3,116,400 On July 28, 2015 the Company granted 500,000 shares of restricted stock to the President and Chief Executive Officer of the Company. The restricted shares have terms of 10 years. The restrictions of the restricted stock lapse upon the Company's achievement of performance criteria related to the Company's Common Stock closing trading price. The fair value of the common stock price market condition was calculated using the Monte Carlo simulation model resulting in a weighted average fair value of $1.05 per share. Share-based compensation expense for the common stock price market condition is being recorded straight-line over the service period derived from the Monte Carlo simulation since the awards exercisability depends entirely on achieving a market condition. The explicit service period and the service period derived from the Monte Carlo simulation were the same for the grant. Restricted stock and restricted stock units are fulfilled with new shares of common stock. The total intrinsic value of restricted stock for which the restrictions lapsed during the years ended December 31, 2015 , 2014 and 2013 was $0.4 million , $0.5 million and $0.2 million , respectively. Options granted to non-employee consultants have exercise prices equal to the fair market value of the stock on the date of grant and a contractual term of ten years . Restricted stock awards granted to non-employee consultants have a contractual term equal to the lapse of restriction(s) of each specific award. Vesting periods for share-based awards granted to non-employee consultants range from immediate vesting to three years depending on service requirements. A summary of the total stock-based compensation expense related to share-based awards granted to non-employee consultants, which is included in the Company’s total share-based compensation expense for each respective period, is as follows: Years ended December 31, 2015 2014 2013 Non-qualified stock options $ 73,539 $ 1,173 $ 37,379 Restricted stock awards — — — $ 73,539 $ 1,173 $ 37,379 On October 29, 2015, the Company issued 253,535 shares of its common stock to Cumulus Logic, LLC, as a milestone payment related to the Software License and Development Agreement between the Company and Cumulus Logic, LLC. The Company recorded stock compensation expense of $504,535 related to this transaction based on the fair value of the common stock on the date of issue of $1.99 . This expense was included in "research and development costs" in the accompanying consolidated statements of operations. The Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model. For awards with market conditions the Company utilizes the Monte Carlo simulation model to estimate the fair value. The Company believes that these valuation techniques and the approach utilized to develop the underlying assumptions are appropriate in estimating the fair value of the Company’s share-based payments granted during the years ended December 31, 2015 , 2014 and 2013 . Estimates of fair value are not intended to predict actual future events or the value ultimately realized by the employees who receive equity awards. The per share weighted average fair value of share-based payments granted during the years ended December 31, 2015 , 2014 and 2013 was $1.32 , $1.26 and $0.84 , respectively. In addition to the exercise and grant date prices of the awards, certain weighted average assumptions that were used to estimate the fair value of share-based payment grants in the respective periods are listed in the table below: Years ended December 31, 2015 2014 2013 Expected dividend yield 0% 0% 0% Expected volatility 55 - 56% 55 - 57% 61 - 64% Risk-free interest rate 1.35 - 1.67% 1.20 - 1.84% 0.84 - 1.64% Expected term (years) 5.5 3.4 - 5.5 5.5 Discount for post-vesting restrictions N/A N/A N/A Options granted to officers, employees and directors during fiscal 2015 , 2014 , and 2013 have exercise prices equal to the fair market value of the stock on the date of grant, a contractual term of ten years , and a vesting period generally of three years . Based on each respective group’s historical vesting experience and expected trends, the estimated forfeiture rate for officers, employees, and directors, as adjusted, for fiscal years 2015 , 2014 and 2013 was 30% , 30% and 0% , respectively. The impact of the change in the forfeiture rates from 2012 to 2013 was a reduction to share-based compensation expense of $0.1 million . The Company estimates expected volatility based primarily on historical daily volatility of the Company’s stock and other factors, if applicable. The risk-free interest rate is based on the United States treasury yield curve in effect at the time of grant. The expected option term is the number of years that the Company estimates that options will be outstanding prior to exercise. The expected term of the awards was determined based upon an estimate of the expected term of “plain vanilla” options as prescribed in SEC Staff Accounting Bulletin (“SAB”) No. 110. As of December 31, 2015 , there was approximately $1.9 million total unrecognized compensation cost related to the Company’s unvested stock options, restricted stock and restricted stock unit awards granted under the Company’s stock plans. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 1.85 years. As of December 31, 2015 , the Company had 11,096,900 shares of common stock reserved for issuance upon the exercise of stock options, restricted stock and restricted stock units.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of component materials and finished systems. Inventories are stated at the lower of cost (first-in, first-out) or market, not in excess of net realizable value. Component material consists of certain key replacement parts for the finished systems. Inventories are as follows: December 31, 2015 December 31, 2014 Finished systems $ 70,534 $ 352,493 Total Inventory $ 70,534 $ 352,493 As of December 31, 2015 and 2014 , the Company had not recorded any reserve for excess and/or obsolete inventories in arriving at estimated net realizable value of its inventory.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company has an operating lease covering its corporate office facility that expires in April 2021. The Company also has several additional operating leases related to offices in foreign countries. The expiration dates for these leases range from 2016 through 2017. The following is a schedule of future minimum lease payments for all operating leases as of December 31, 2015 : 2016 $ 1,919,172 2017 1,570,236 2018 1,361,341 2019 1,402,181 2020 1,444,247 Thereafter 491,020 $ 8,188,197 These leases require the Company to pay its proportionate share of real estate taxes and other common charges. Total rent expense for operating leases was $2.4 million , $3.0 million and $3.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company typically provides its customers a warranty on its software products for a period of no more than 90 days. Such warranties are accounted for in accordance with the authoritative guidance issued by the FASB on contingencies. For the year ended December 31, 2015 , the Company has not incurred any costs related to warranty obligations. Under the terms of substantially all of its software license agreements, the Company has agreed to indemnify its customers for all costs and damages arising from claims against such customers based on, among other things, allegations that the Company’s software infringes the intellectual property rights of a third party. In most cases, in the event of an infringement claim, the Company retains the right to (i) procure for the customer the right to continue using the software; (ii) replace or modify the software to eliminate the infringement while providing substantially equivalent functionality; or (iii) if neither (i) nor (ii) can be reasonably achieved, the Company may terminate the license agreement and refund to the customer a pro-rata portion of the license fee paid to the Company. Such indemnification provisions are accounted for in accordance with the authoritative guidance issued by the FASB on guarantees. From time to time, in the ordinary course of business, the Company receives claims for indemnification, typically from OEMs. The Company is not currently aware of any material claims for indemnification. Upon certain triggering events, such as bankruptcy, insolvency or a material adverse effect, failure to achieve minimum financial covenants or failure of the Company to issue shares upon conversion of the Series A redeemable convertible preferred stock in accordance with its obligations, the Series A redeemable convertible preferred stockholders may require the Company to redeem all or some of the Series A redeemable convertible preferred stock at a price equal to the greater of 100% of the stated value plus accrued and unpaid dividends or the product of the number of shares of common stock underlying the Series A redeemable convertible preferred stock and the closing price as of the occurrence of the triggering event. On or after August 5, 2017, each Series A redeemable convertible preferred stockholder can require the Company to redeem its Series A redeemable convertible preferred stock in cash at a price equal to 100% of the stated value being redeemed plus accrued and unpaid dividends. As of December 31, 2015 , the Company was not in compliance with the financial covenant based on billings for two consecutive quarters and the financial covenant based on cash for the fourth quarter of 2015, which provided the redeemable convertible preferred stockholders the right to require the Company to redeem any of the Series A redeemable convertible preferred stock at the greater of 100% of the stated value plus accrued and unpaid dividends or the product of the number of shares of common stock underlying the Series A redeemable convertible preferred stock and the closing price as of December 31, 2015 . On January 27, 2016 the Company obtained a waiver from the holders of the Series A redeemable convertible preferred stock waiving the holders' rights arising from the billings covenant violation as of December 31, 2015 . The Company believes it will be in compliance with the 2016 quarterly financial covenants with respect to the Series A redeemable convertible preferred stock. However, if the Company is unable to maintain compliance with the 2016 covenants, the Company intends to work with the holders of the Series A redeemable convertible preferred stock to obtain additional waivers, as necessary. As of December 31, 2015 , the Company did not fail any other financial or non-financial covenants related to the Company's Series A redeemable convertible preferred stock. However, as described under Note (8) Series A Redeemable Convertible Preferred Stock , the Company obtained a waiver on April 20, 2015 to enable it to pay the required quarterly dividends on the Series A redeemable convertible preferred stock in cash for the fourth quarter of 2014 and the first quarter of 2015 and accrued its dividend payments for the required quarterly dividends on the Series A redeemable convertible preferred stock for the second, third and fourth quarters of 2015. The second and third quarter 2015 dividends were paid with Company common stock during December 2015. On July 24, 2015, the Company entered into an Independent Marketing Agreement with RFN Prime Marketing Inc., to provide among other items, certain sales and marketing deliverables to the Company in exchange for up to 2.55 million shares of restricted Company common stock which will be issued based on certain milestone achievements and/or transactions over a twenty-four month period. The restricted Company common stock will be valued as they are earned, and the resulting value will be recorded as an expense in the period in which the performance milestone is met and the stock is earned. As of December 31, 2015 , none of the performance milestones have been met, and therefore no restricted Company common stock has been issued. On July 24, 2015, the Company renewed its Employment Agreement (“Quinn Employment Agreement”) with Gary Quinn. Pursuant to the Quinn Employment Agreement, the Company agreed to continue to employ Mr. Quinn as President and Chief Executive Officer of the Company effective July 24, 2015, at an annual salary of $0.5 million per annum, which will automatically renew every twelve (12) months unless either party gives notice to the other that it will not renew at least sixty (60) days prior to the end of the term. Among other items, The Quinn Employment Agreement also provided for the grant of 500,000 restricted shares which vest 50% and 50% based upon the achievement of two predetermined milestones of the Company’s Common Stock closing trading price for ninety (90) consecutive trading days. The 500,000 restricted shares were granted to Mr. Quinn by the Company’s Compensation Committee on July 28, 2015. From time to time, the Company has undertaken restructuring and expense control measures to support its business performance and to align the Company’s cost structure with its resources. During the third quarter of 2013, the Company adopted a restructuring plan intended to better align the Company’s cost structure with the skills and resources required to more effectively execute the Company’s long-term growth strategy and to support revenue levels the Company expects to achieve on a go forward basis (the "2013 Plan"). In connection with the 2013 Plan, the Company eliminated over 100 positions worldwide, implemented tighter expense controls, ceased non-core activities and closed or downsized several facilities. As of December 31, 2015 the restructuring accrual totaled $0.7 million . The 2013 Plan was substantially completed by December 31, 2014; however, the Company expects the majority of the remaining accrued severance related costs to be paid once final settlement litigation is completed, which can be at various times over the next three to twenty-four months In addition, as of December 31, 2015 , our liability for uncertain tax positions totaled $0.3 million .

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments The Company from time to time will use derivative financial instruments, such as foreign currency forward contracts, as economic hedges to reduce exchange rate risks arising from the change in fair value of certain foreign currency denominated assets and liabilities (i.e., receivables and payables). The purpose of the Company’s foreign currency risk management program is to reduce volatility in earnings caused by exchange rate fluctuations. In accordance with the authoritative guidance issued by the FASB on derivatives and hedging, companies are required to recognize all of the derivative financial instruments as either assets or liabilities at fair value in their balance sheets. The Company does not use derivative financial instruments for trading or speculative purposes. As of December 31, 2015 , 2014 and 2013 , the Company had no foreign currency forward contracts outstanding. The Company did not utilize foreign currency forward contracts during the years ended December 31, 2015 , 2014 and 2013 . As a result of the Company’s analysis of all the embedded conversion and put features within its Series A redeemable convertible preferred stock, the contingent redemption put options in the Series A redeemable convertible preferred stock were determined to not be clearly and closely related to the debt-type host and also did not meet any other scope exceptions for derivative accounting. Therefore the contingent redemption put options are being accounted for as derivative instruments and the fair value of these derivative instruments were bifurcated from the Series A redeemable convertible preferred stock and recorded as a liability. At the time of issuance of the Series A redeemable convertible preferred stock the fair value of these derivative instruments were recorded as a reduction to preferred stock. As of December 31, 2015 and 2014 , the fair value of these derivative instruments was $82,024 and $137,171 , respectively. The gain on the change in fair value of these derivative instruments for the years ended December 31, 2015 , 2014 and 2013 of $55,147 , $21,963 and $11,203 , respectively, was included in “Interest and other (loss) income, net” within the consolidated statement of operations.

Litigation

Litigation	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Litigation	Litigation In view of the inherent difficulty of predicting the outcome of litigation, particularly where the claimants seek very large or indeterminate damages, the Company generally cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each pending matter may be. In accordance with the authoritative guidance issued by the FASB on contingencies, the Company accrues anticipated costs of settlement, damages and losses for claims to the extent specific losses are probable and estimable. The Company records a receivable for insurance recoveries when such amounts are probable and collectable. In such cases, there may be an exposure to loss in excess of any amounts accrued. If, at the time of evaluation, the loss contingency related to a litigation is not both probable and estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and estimable and, the Company will expense these costs as incurred. If the estimate of a probable loss is a range and no amount within the range is more likely, the Company will accrue the minimum amount of the range. Stockholder Litigation Company stockholders filed actions in the Suffolk County Division of the Supreme Court of the State of New York, putatively derivatively on behalf of the Company, against the Company, each of the Company’s Directors, Mr. Weber, the former Chief Financial Officer and Vice President of Operations of the Company, Wayne Lam, a former Vice president of the Company, the estate of Mr. Huai, the former Chairman, President and Chief Executive Officer of the Company, and Jason Lin, a former employee of the Company (the “Derivative Action”). The consolidated amended Derivative Action complaint alleged that the defendants breached their duties to the Company by: (1) causing or allowing the dissemination of false and misleading information; (2) failing to maintain internal controls; (3) failing to manage the Company properly; (4) unjustly enriching themselves; (5) abusing their control of the Company; and (6) wasting Company assets. On March 5, 2013, the Suffolk County Division of the Supreme Court of the State of New York granted a motion made by all of the defendants in the Derivative Action, except Mr. Lin, and dismissed the Derivative Action as to all defendants other than Mr. Lin. The stockholders appealed the dismissal of the Derivative Action and on March 18, 2015, the Appellate Division, Second Department unanimously affirmed the New York Supreme Court’s decision dismissing the Derivative Action. The Plaintiffs have not timely sought leave to appeal the Appellate Division’s decision to the New York Court of Appeals, and thus the Company believes this matter has been finally resolved. The Company has insurance policies that were purchased to cover, among other things, lawsuits like the Derivative Action and a class action lawsuit that has been settled by the Company (the "Class Action"). The Company’s Directors and Officers (“D&O”) Insurance, is composed of more than one layer, with each layer written by a different insurance company. However, the events that gave rise to the claims in the Derivative Action and the Class Action caused the Company’s insurers to reserve their rights to disclaim, rescind, or otherwise not be obligated to provide coverage to the Company and certain other insureds under the policies. In light of these uncertainties, the Company entered into settlements with two of its insurers. Pursuant to these settlements, the Company will not receive repayment of all amounts it might otherwise have received. During 2015 and 2014 , the Company recorded an expense of less than $0.1 million and a benefit of $5.4 million , respectively, of investigation, litigation and settlement related legal costs, net of expected recoveries, related to expenses related to the Class Action and Derivative Action lawsuits, the Estate settlement and other settlement related activities that are not recoverable through insurance. Other Claims The Company is subject to various legal proceedings and claims, asserted or unasserted, which arise in the ordinary course of business. While the outcome of any such matters cannot be predicted with certainty, such matters are not expected to have a material adverse effect on the Company’s financial condition or operating results. The Company continues to assess certain litigation and claims to determine the amounts, if any, that the Company believes may be paid as a result of such claims and litigation and, therefore, additional losses may be accrued and paid in the future, which could materially adversely impact the Company’s financial results, its cash flows and its cash reserves.

Restructuring Costs

Restructuring Costs	12 Months Ended
	Dec. 31, 2015
Restructuring and Related Activities [Abstract]
Restructuring Costs	Restructuring Costs From time to time, the Company has undertaken restructuring and expense control measures to support its business performance and to align the Company’s cost structure with its resources. In the third quarter of 2013, the Company adopted the 2013 Plan to better align the Company’s cost structure with the skills and resources required to more effectively execute the Company’s long-term growth strategy and to support revenue levels the Company expects to achieve on a go forward basis. In connection with the 2013 Plan, the Company eliminated over 100 positions worldwide, implemented tighter expense controls, ceased non-core activities and closed or downsized several facilities. The 2013 Plan was substantially completed by December 31, 2014; however, we expect the majority of the severance related costs to be paid once final settlement litigation is completed, which can be at various times over the next three to twenty-four months. The total amount incurred under the 2013 Plan for the years ended December 31, 2015 and 2014 , was $0.2 million and $1.1 million , respectively. Accrued restructuring costs as of December 31, 2015 associated with the 2013 Plan is as follows: Severance related costs Facility and other costs Total Original charge $ 3,179,131 $ 426,889 $ 3,606,020 Utilized/Paid (2,067,554 ) (231,973 ) (2,299,527 ) Balance at December 31, 2013 $ 1,111,577 $ 194,916 $ 1,306,493 Provisions/Additions 365,174 770,136 1,135,310 Utilized/Paid (653,325 ) (759,563 ) (1,412,888 ) Balance at December 31, 2014 $ 823,426 $ 205,489 $ 1,028,915 Provisions/Additions 55,527 117,468 172,995 Utilized/Paid (161,313 ) (307,935 ) (469,248 ) Balance at December 31, 2015 $ 717,640 $ 15,022 $ 732,662 Included in facility and other costs for the year ended December 31, 2014 and 2013, is a charge of $0.2 million and less than $0.1 million , respectively, related to the write-off of property and equipment that were no longer in use due to the closure of certain of the Company's foreign facilities. The severance related liabilities and facility and other liabilities are included within “accrued expenses” and "accounts payable" in the accompanying consolidated balance sheet for 2015 . The expenses under the 2013 Plan are included within “restructuring costs” in the accompanying consolidated statements of operations.

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Employee Benefit Plans Defined Contribution Plan Effective July 2002, the Company established a voluntary savings and defined contribution plan (the “Plan”) under Section 401(k) of the Internal Revenue Code. This Plan covers all U.S. employees meeting certain eligibility requirements and allows participants to contribute a portion of their annual compensation. Employees are 100% vested in their own contributions. For the years ended December 31, 2015 , 2014 and 2013 , the Company did not make any contributions to the Plan. Effective July 1, 2007, the Company, in accordance with the labor pension system in Taiwan, contributes 6% of salaries to individual pension accounts managed by the Bureau of Labor Insurance. The plan covers all Taiwan employees that elect the new pension system and all employees hired after July 1, 2005. For the years ended December 31, 2015 , 2014 and 2013 , the Company contributed approximately $77,000 , $97,000 and $115,000 , respectively. Defined Benefit Plan The Company has a defined benefit plan covering employees in Taiwan. The Company accounts for its defined benefit plan in accordance with the authoritative guidance issued by the FASB on retirement benefits, which requires the Company to recognize the funded status of its defined benefit plan in the accompanying consolidated balance sheet, with the corresponding adjustment to accumulated other comprehensive income, net of tax. At December 31, 2015 and 2014 , $27,186 and $26,613 , respectively, is included in accumulated other comprehensive (loss) income for amounts that have not yet been recognized in net periodic pension cost. These amounts include the following: unrecognized transition obligation of $15,615 and $21,590 at December 31, 2015 and 2014 , respectively, and unrecognized actuarial (gain) loss of ($42,800) and ($48,203) at December 31, 2015 and 2014 , respectively. During 2015 , the total amount recorded in other comprehensive (loss) income related to the pension plan was $573 (net of tax), which consisted of an actuarial loss of ($4,827) and the recognition of $5,400 of transition obligations recognized during 2015 as a component of net periodic pension cost. The transition obligation and actuarial gain included in accumulated other comprehensive loss and expected to be recognized in net periodic pension cost for the year ended December 31, 2016 , is $5,400 and $1,618 respectively. Pension information for the years ended December 31, 2015 and 2014 , is as follows: 2015 2014 Accumulated benefit obligation $ 149,932 $ 145,004 Changes in projected benefit obligation: Projected benefit obligation at beginning of year 193,144 288,845 Interest cost 4,348 6,439 Actuarial loss (gain) 2,549 (92,394 ) Benefits paid — — Service cost 1,240 2,223 Currency translation and other (7,183 ) (11,969 ) Projected benefit obligation at end of year $ 194,098 $ 193,144 Changes in plan assets: Fair value of plan assets at beginning of year $ 120,018 $ 114,791 Actual return on plan assets 3,129 2,583 Benefits paid — — Employer contributions 7,864 9,480 Currency translation and other (4,677 ) (6,836 ) Fair value of plan assets at end of year $ 126,334 $ 120,018 Funded status $ 67,764 $ 73,126 Components of net periodic pension cost: Interest cost $ 4,348 $ 6,439 Expected return on plan assets (2,702 ) (2,312 ) Amortization of net loss 3,684 6,411 Service cost 1,240 2,223 Net periodic pension cost $ 6,570 $ 12,761 The Company makes contributions to the plan so that minimum contribution requirements, as determined by government regulations, are met. Company contributions of approximately $8,000 are expected to be made during 2016 . Benefit payments of approximately $209,000 are expected to be paid in 2016 through 2025. The Company utilized the following assumptions in computing the benefit obligation at December 31, 2015 and 2014 as follows: Years ended December 31, 2015 2014 Discount rate 1.75 % 2.25 % Rate of increase in compensation levels 2.00 % 2.00 % Expected long-term rate of return on plan assets 1.75 % 2.25 %

Segment Reporting and Concentra

Segment Reporting and Concentrations	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Segment Reporting and Concentrations	Segment Reporting and Concentrations The Company is organized in a single operating segment for purposes of making operating decisions and assessing performance. Revenues from the United States to customers in the following geographical areas for the years ended December 31, 2015 , 2014 and 2013 , and the location of long-lived assets as of December 31, 2015 and 2014 , are summarized as follows: Years ended December 31, 2015 2014 2013 Revenues: Americas $ 23,308,240 $ 16,935,743 $ 22,538,045 Asia Pacific 12,934,261 14,154,568 17,128,902 Europe, Middle East, Africa and Other 12,328,490 15,183,204 18,969,557 Total Revenues $ 48,570,991 $ 46,273,515 $ 58,636,504 December 31, 2015 2014 Long-lived assets: Americas $ 7,519,787 $ 8,327,602 Asia Pacific 650,633 822,277 Europe, Middle East, Africa and Other 168,241 233,669 Total long-lived assets $ 8,338,661 $ 9,383,548 For the year ended December 31, 2015 , the Company had two customers that accounted for 10% or more of total revenue. For the years ended December 31, 2014 and 2013 , the Company had one customer that accounted for 11% and 14% of total revenue, respectively. As of December 31, 2015 , the Company had two customers that accounted for 10% or more of the gross accounts receivable balance. As of December 31, 2014 , the Company had one customer that accounted for 11% of gross accounts receivable balances.

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts Allowance for Returns and Doubtful Accounts	12 Months Ended
	Dec. 31, 2015
Valuation and Qualifying Accounts [Abstract]
Valuation and Qualifying Accounts - Allowance for Returns and Doubtful Accounts	Valuation and Qualifying Accounts – Allowance for Returns and Doubtful Accounts Period Ended Balance at Beginning of Period Benefits to Expenses / Revenue (Increases) Deductions Balance at End of Period December 31, 2015 $ 119,530 (6,745 ) (78,500 ) $ 191,285 December 31, 2014 $ 276,302 (64,904 ) 91,868 $ 119,530 December 31, 2013 $ 940,101 (294,074 ) 369,725 $ 276,302 Note: Benefits to the allowance for doubtful accounts are recorded within “general and administrative expenses” within the consolidated statements of operations. Benefits to the return reserve for product and service are recorded within “product revenue” within the consolidated statements of operations. Due to cash collections of previously reserved accounts receivable balances, the Company recorded a benefit of less than $0.1 million , $0.1 million and less than $0.1 million during the years ended December 31, 2015 , 2014 and 2013 respectively. These amounts are within “benefits to expenses/revenue” above, and are included within revenue in each respective period in the accompanying consolidated statements of operations.

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data (Unaudited)	Quarterly Financial Data (Unaudited) The following is a summary of selected quarterly financial data for the years ended December 31, 2015 and 2014 : Quarter 2015 First Second Third Fourth Revenue (a) $ 19,939,876 $ 9,552,589 $ 9,683,226 $ 9,395,300 Gross profit 17,529,634 6,893,803 7,257,275 7,208,145 Net income (loss) attributable to common stockholders 4,934,176 (2,998,645 ) (2,922,694 ) (2,295,014 ) Basic net income (loss) per share attributable to common stockholders $ 0.12 $ (0.07 ) $ (0.07 ) $ (0.06 ) Diluted net income (loss) per share attributable to common stockholders $ 0.10 $ (0.07 ) $ (0.07 ) $ (0.06 ) Quarter 2014 First Second Third Fourth Revenue $ 12,001,499 $ 11,302,667 $ 11,175,440 $ 11,793,909 Gross profit 9,327,124 8,595,004 8,583,096 9,137,575 Net (loss) income attributable to common stockholders (b) (3,104,078 ) 1,023,512 (3,545,218 ) (2,827,016 ) Basic net (loss) income per share attributable to common stockholders $ (0.06 ) $ 0.02 $ (0.08 ) $ (0.06 ) Diluted net (loss) income per share attributable to common stockholders $ (0.06 ) $ 0.02 $ (0.08 ) $ (0.06 ) The sum of the quarterly net income (loss) per share amounts do not necessarily equal the annual amount reported, as per share amounts are computed independently for each quarter and the annual period based on the weighted average common shares outstanding in each period. (a) Revenue in the first quarter of 2015 includes revenue of $11.3 million from our joint development agreement. (b) Net income attributable to common stockholders in the second quarter of 2014 includes a gain of $5.3 million related to the Estate litigation settlement.

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires 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. The Company’s significant estimates include those related to revenue recognition, accounts receivable allowances, share-based payment compensation, marketable securities, valuation of embedded derivatives, software development costs, goodwill and other intangible assets and income taxes. Actual results could differ from those estimates. The financial market volatility, both in the U.S. and in many other countries where the Company operates, has impacted and may continue to impact the Company’s business. Such conditions could have a material impact to the Company’s significant accounting estimates discussed above.
Cash Equivalents and Marketable Securities	Cash Equivalents and Marketable Securities The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company records its cash equivalents and marketable securities at fair value in accordance with the authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) on fair value measurements and disclosures. As of December 31, 2015 and 2014 , the Company’s cash equivalents consisted of money market funds and commercial paper. At December 31, 2015 and 2014 , the fair value of the Company’s cash equivalents amounted to approximately $2.7 million and $2.0 million , respectively. As of December 31, 2015 and 2014 , the Company’s marketable securities consisted of corporate bonds and government securities with a fair value of approximately $7.4 million and $10.9 million , respectively. All of the Company’s marketable securities are classified as available-for-sale, and accordingly, unrealized gains and losses on marketable securities, net of tax, are reflected as a component of accumulated other comprehensive loss in stockholders’ deficit. Any other-than-temporary impairments are recorded within interest and other (loss) income, net in the consolidated statement of operations.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measurements, a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is as follows: Level 1 —Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 —Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 —Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. As of December 31, 2015 and 2014 , the fair value of the Company’s financial instruments including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximated carrying value due to the short maturity of these instruments.
Derivative Financial Instruments	Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risk. Terms of convertible preferred stock are reviewed to determine whether or not they contain embedded derivative instruments that are required under FASB ASC 815 “Derivatives and Hedging” (“ASC 815”) to be accounted for separately from the host contract, and recorded on the balance sheet at fair value. The fair value of derivatives are required to be revalued at each reporting date, with corresponding changes in fair value recorded in current period operating results.
Revenue Recognition	Revenue Recognition The Company derives its revenue from sales of its products, support and services. Product revenue consists of the Company’s software integrated with industry standard hardware and sold as complete turn-key integrated solutions, as stand-alone software applications or sold on a subscription or consumption basis. Depending on the nature of the arrangement revenue related to turn-key solutions and stand-alone software applications are generally recognized upon shipment and delivery of license keys. For certain arrangements revenue is recognized based on usage or ratably over the term of the arrangement. Support and services revenue consists of both maintenance revenues and professional services revenues. Revenue is recorded net of applicable sales taxes. In accordance with the authoritative guidance issued by the FASB on revenue recognition, the Company recognizes revenue when persuasive evidence of an arrangement exists, the fee is fixed or determinable, delivery has occurred, and collection of the resulting receivable is deemed probable. Products delivered to a customer on a trial basis are not recognized as revenue until the trial period has ended and acceptance has occurred by the customer. Reseller and distributor customers typically send the Company a purchase order when they have an end user identified. For bundled arrangements that include either maintenance or both maintenance and professional services, the Company uses the residual method to determine the amount of product revenue to be recognized. Under the residual method, consideration is allocated to the undelivered elements based upon vendor-specific objective evidence (“VSOE”) of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as product revenue. If VSOE does not exist for all undelivered elements of an arrangement, the Company recognizes total revenue from the arrangement ratably over the term of the maintenance agreement. The Company's long-term portion of deferred revenue consists of (i) payments received for maintenance contracts with terms in excess of one year as of the balance sheet date, and (ii) payments received for product sales bundled with multiple years of maintenance but for which VSOE did not exist for all undelivered elements of the arrangement. The Company provides an allowance for product returns as a reduction of revenue, based upon historical experience and known or expected trends. When more than one element, such as hardware, software and services are contained in a single arrangement, the Company will first allocate revenue based upon the relative selling price into two categories: (1) non-software components, such as hardware and any hardware-related items, as required system software that functions with the hardware to deliver the essential functionality of the hardware and related post-contract customer support, and software as service subscriptions and (2) software components and applications, such as post-contract customer support and other services. The Company will then allocate revenue within the non-software category to each element based upon their relative selling price using a hierarchy of VSOE, third-party evidence of selling price (“TPE”) or estimated selling prices (“ESP”), if VSOE or TPE does not exist. The Company will allocate revenue within the software category to the undelivered elements based upon their fair value using VSOE with the residual revenue allocated to the delivered elements. If the Company cannot objectively determine the VSOE of the fair value of any undelivered software element, the Company will defer revenue for all software components until all elements are delivered and services have been performed, until fair value can objectively be determined for any remaining undelivered elements, or until software maintenance is the only undelivered element which the Company does not have VSOE for, in which case revenue is recognized over the maintenance term for all software elements. Revenues associated with maintenance services are deferred and recognized as revenue ratably over the term of the contract. Revenues associated with software implementation and software engineering services are recognized when the services are performed. Costs of providing these services are included in cost of support and services. The Company has entered into various distribution, licensing and joint promotion agreements with OEMs, whereby the Company has provided to the OEM a non-exclusive software license to install the Company’s software on certain hardware or to resell the Company’s software in exchange for payments based on the products distributed by these OEMs. Such payments from the OEM or distributor are recognized as revenue in the period reported by the OEM. From time to time the Company will enter into funded software development arrangements. Under such arrangements, revenue recognition will not commence until final delivery and/or acceptance of the product. For arrangements where the Company has VSOE for the undelivered elements, the Company will follow the residual method and recognize product revenue upon final delivery and/or acceptance of the product. For arrangements where the Company does not have VSOE for the undelivered elements, the Company will recognize the entire arrangement fee ratably commencing at the time of final delivery and/or acceptance through the end of the service period in the arrangement. Certain arrangements, for which VSOE of fair value for the undelivered maintenance elements cannot be established, are accounted for as a single unit of account. The revenue recognized from single units of accounting are typically allocated and classified on the consolidated statements of operations as product revenue and support and services revenue. Since VSOE cannot be established, VSOE of similar maintenance offerings provides the basis for the support and services revenue classification, and the remaining residual consideration provides the basis for the product revenue classification. In 2013, the Company entered into a joint development agreement whereby final acceptance of the software delivered under the joint development agreement occurred on November 16, 2014. During 2014, the Company began to recognize the total committed fee as revenue ratably over a twenty-five and a half month period which began on November 16, 2014 and included a contractual twenty-four month maintenance period. During 2015, the customer elected to terminate its maintenance agreement and as such all unrecognized deferred revenue was accelerated and recognized as product revenue during the year. As of December 31, 2015 and 2014, the Company recorded product revenue of approximately $11.3 million and $0.6 million , respectively, and maintenance revenue of approximately $0.2 million related to this agreement for the year ended December 31, 2014. As of December 31, 2015, there is no deferred revenue or undelivered services remaining related to this agreement.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost. Depreciation is recognized using the straight-line method over the estimated useful lives of the assets (3 to 7 years). Leasehold improvements are amortized on a straight-line basis over the terms of the respective leases or over their estimated useful lives, whichever is shorter.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations. The Company has not amortized goodwill related to its acquisitions, but instead tests the balance for impairment. The Company evaluates goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. The Company tests goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting unit. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. The Company’s annual impairment assessment is performed during the fourth quarter of each year, and the Company has determined there to be no impairment for any of the periods presented. Based on the Company’s analysis, the fair value of its reporting unit substantially exceeds the carrying value of its goodwill balances as of December 31, 2015 and 2014 . Identifiable intangible assets include (i) assets acquired through business combinations, which include customer contracts and intellectual property, and (ii) patents amortized over three years using the straight-line method.
Software Development Costs and Purchased Software Technology	Software Development Costs and Purchased Software Technology In accordance with the authoritative guidance issued by the FASB on costs of software to be sold, leased, or marketed, costs associated with the development of new software products and enhancements to existing software products are expensed as incurred until technological feasibility of the product has been established. Based on the Company’s product development process, technological feasibility is established upon completion of a working model. Amortization of software development costs is recorded at the greater of the straight-line basis over the product’s estimated life, or the ratio of current period revenue of the related products to total current and anticipated future revenue of these products.
Income Taxes	Income Taxes The Company records income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In determining the period in which related tax benefits are realized for financial reporting purposes, excess share-based compensation deductions included in net operating losses are realized after regular net operating losses are exhausted. The Company accounts for uncertain tax positions in accordance with the authoritative guidance issued by the FASB on income taxes, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return, should be recorded in the financial statements. Pursuant to the authoritative guidance, the Company may recognize the tax benefit from an uncertain tax position only if it meets the “more likely than not” threshold that the position will be sustained on examination by the taxing authority, based on the technical merits of the position or expiration of statutes. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. In addition, the authoritative guidance addresses de-recognition, classification, interest and penalties on income taxes, accounting in interim periods, and also requires increased disclosures. The Company includes interest and penalties related to its uncertain tax positions as part of income tax expense within its consolidated statement of operations.
Long-Lived Assets	Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the sum of the expected future cash flows, undiscounted and without interest, is less than the carrying amount of the asset, an impairment loss is recognized as the amount by which the carrying amount of the asset exceeds its fair value.
Share-Based Payments	Share-Based Payments The Company accounts for share-based payments in accordance with the authoritative guidance issued by the FASB on share-based compensation, which establishes the accounting for transactions in which an entity exchanges its equity instruments for goods or services. Under the provisions of the authoritative guidance, share-based compensation expense is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite employee service period (generally the vesting period), net of estimated forfeitures. For share-based payment awards that contain performance criteria share-based compensation expense is recorded when the achievement of the performance condition is considered probable of achievement and is recorded straight-line over the requisite service period. If such performance criteria are not met, no compensation cost is recognized and any recognized compensation cost is reversed. The Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model or the Monte Carlo simulation model if a market condition exists. Share-based compensation expense for a share-based payment award with a market condition is recorded straight-line over the longer of the explicit service period or the service period derived from the Monte Carlo simulation. The estimation of share-based awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company’s current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. Additionally, share-based awards to non-employees are expensed over the period in which the related services are rendered at their fair value. All share-based awards are expected to be fulfilled with new shares of common stock.
Foreign Currency	Foreign Currency Assets and liabilities of foreign operations are translated at rates of exchange at the end of the period, while results of operations are translated at average exchange rates in effect for the period. Gains and losses from the translation of foreign assets and liabilities from the functional currency of the Company’s subsidiaries into the U.S. dollar are classified as accumulated other comprehensive loss in stockholders’ deficit. Gains and losses from foreign currency transactions are included in the consolidated statements of operations within interest and other income (loss), net.
Earnings Per Share (EPS)	Earnings Per Share (EPS) Basic EPS is computed based on the weighted average number of shares of common stock outstanding. Diluted EPS is computed based on the weighted average number of common shares outstanding increased by dilutive common stock equivalents, attributable to stock option awards, restricted stock awards and Series A redeemable convertible preferred stock outstanding.
Investments	Investments As of December 31, 2015 and 2014 , the Company did not have any cost-method investments. During 2013, the Company sold its interest in Tianjin Zhongke Blue Whale Information Technologies Co., Ltd. (“Blue Whale”), a Chinese joint venture, for $3.0 million . The Company recorded a gain of $2.1 million within "interest and other (loss) income, net" in the accompanying consolidated statements of operations.
Treasury Stock	Treasury Stock The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ deficit.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2015, the FASB issued new guidance which requires an entity to classify deferred tax liabilities and assets, along with any related valuation allowance, as non-current in its consolidated balance sheet. The amendments in this update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, which for the Company will be the annual period ending December 31, 2017. Early adoption, including adoption in an interim period, is permitted. The Company has not yet adopted this guidance and currently does not expect the adoption of the new guidance by the Company to have a significant impact on our financial results. In November 2014, the FASB issued new guidance which requires an entity to determine whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or to equity by considering the economic characteristics and risks of the entire hybrid financial instrument, including the embedded derivative feature that is being evaluated for separate accounting from the host contract. The effects of initially adopting the amendments in this update should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendments are effective. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which for the Company will be the annual period ending December 31, 2016. Early adoption, including adoption in an interim period, is permitted. The Company has not yet adopted this guidance and currently does not expect the adoption of the new guidance by the Company to have a significant impact on our financial results. In August 2014, the FASB issued new guidance which requires an entity to evaluate whether there are conditions or events, in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the financial statements are available to be issued when applicable), and to provide related footnote disclosures in certain circumstances. The new standard is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter, which for the Company will be the annual period ending December 31, 2016. Early adoption is permitted. The Company has not yet adopted this guidance and currently does not expect the adoption of the new guidance by the Company to have a significant impact on our financial reporting or disclosures. In May 2014, the FASB issued new guidance which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This new guidance will replace most existing revenue recognition guidance in Generally Accepted Accounting Principles in the United States when it becomes effective. The new standard is effective for the annual period ending after December 15, 2017, including interim reporting period within that period, which for the Company will be the annual period ending December 31, 2018. Early adoption as of January 1, 2017 is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that this new guidance will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its financial reporting.

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Intangible Assets and Goodwill	The gross carrying amount and accumulated amortization of other intangible assets as of December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 Goodwill $ 4,150,339 $ 4,150,339 Other intangible assets: Gross carrying amount $ 3,609,524 $ 3,395,024 Accumulated amortization (3,353,387 ) (3,198,987 ) Net carrying amount $ 256,137 $ 196,037
Summary of Software Development Costs	The gross carrying amount and accumulated amortization of software development costs as of December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 Software development costs: Gross carrying amount $ 3,037,215 $ 2,903,115 Accumulated amortization (1,920,399 ) (1,394,598 ) Software development costs, net $ 1,116,816 $ 1,508,517
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	The following represents the common stock equivalents that were excluded from the computation of diluted shares outstanding because their effect would have been anti-dilutive for the years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, 2015 2014 2013 Stock options and restricted stock 7,972,341 7,800,293 8,150,032 Series A redeemable convertible preferred stock 8,781,516 8,781,516 8,781,516 Total anti-dilutive common stock equivalents 16,753,857 16,581,809 16,931,548
Computation of Earnings Per Share	The following represents a reconciliation of the numerators and denominators of the basic and diluted EPS computation: Year Ended December 31, 2015 2014 2013 Numerator: Net Loss $ (1,929,361 ) $ (7,211,821 ) $ (10,932,590 ) Effects of Series A redeemable convertible preferred stock: Less: Series A redeemable convertible preferred stock dividends 765,203 747,616 216,379 Less: Accretion to redemption value of Series A redeemable convertible preferred stock 587,613 493,363 127,504 Net loss attributable to common stockholders $ (3,282,177 ) $ (8,452,800 ) $ (11,276,473 ) Denominator: Weighted average basic shares outstanding 41,093,644 46,265,225 47,979,467 Effect of dilutive securities: Stock options and restricted stock — — — Series A redeemable convertible preferred stock — — — Weighted average diluted shares outstanding 41,093,644 46,265,225 47,979,467 EPS: Basic net loss per share attributable to common stockholders $ (0.08 ) $ (0.18 ) $ (0.24 ) Diluted net loss per share attributable to common stockholders $ (0.08 ) $ (0.18 ) $ (0.24 )

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consist of the following: December 31, 2015 December 31, 2014 Computer hardware and software $ 16,607,596 $ 16,065,087 Furniture and equipment 961,712 939,475 Leasehold improvements 1,931,291 1,997,529 Automobile 13,008 13,008 Property and Equipment, Gross 19,513,607 19,015,099 Less accumulated depreciation (17,947,675 ) (16,867,911 ) Property and Equipment, Net $ 1,565,932 $ 2,147,188

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Schedule of Fair Value Assets Measured On Recurring Basis	The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2015 : Fair Value Measurements at Reporting Date Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant other Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents: Money market funds and commercial paper $ 2,725,094 $ 2,725,094 $ — $ — Total cash equivalents 2,725,094 2,725,094 — — Marketable securities: Corporate debt and government securities 7,420,042 — 7,420,042 — Total marketable securities 7,420,042 — 7,420,042 — Derivative liabilities: Derivative Instruments 82,024 — — 82,024 Total derivative liabilities 82,024 — — 82,024 Total assets and liabilities measured at fair value $ 10,227,160 $ 2,725,094 $ 7,420,042 $ 82,024 The following table presents the Company’s assets that are measured at fair value on a recurring basis at December 31, 2014 : Fair Value Measurements at Reporting Date Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant other Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents: Money market funds and commercial paper $ 2,049,972 $ 2,049,972 $ — $ — Total cash equivalents 2,049,972 2,049,972 — — Marketable securities: Corporate debt and government securities 10,900,722 — 10,900,722 — Total marketable securities 10,900,722 — 10,900,722 — Derivative liabilities: Derivative Instruments 137,171 — — 137,171 Total derivative liabilities 137,171 — — 137,171 Total assets and liabilities measured at fair value $ 13,087,865 $ 2,049,972 $ 10,900,722 $ 137,171
Fair Value Measurements Using Significant Unobservable Inputs	The following table presents the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of each of the years ended December 31, 2015 and 2014 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) December 31, 2015 December 31, 2014 December 31, 2013 Beginning Balance $ 137,171 $ 159,134 $ — Issuance of Derivative Instruments — — 170,337 Total gains recognized in earnings (55,147 ) (21,963 ) (11,203 ) Ending Balance $ 82,024 $ 137,171 $ 159,134

Marketable Securities (Tables)

Marketable Securities (Tables)	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-sale Securities	The cost and fair values of the Company’s available-for-sale marketable securities as of December 31, 2015 , were as follows: Aggregate Cost or Amortized Net Unrealized Government securities $ 6,560,303 $ 6,562,792 $ (2,489 ) Corporate debt securities 859,739 860,656 (917 ) $ 7,420,042 $ 7,423,448 $ (3,406 ) The cost and fair values of the Company’s available-for-sale marketable securities as of December 31, 2014 , were as follows: Aggregate Cost or Amortized Net Unrealized Government securities $ 6,740,825 $ 6,741,466 $ (641 ) Corporate debt securities 4,159,897 4,160,664 (767 ) $ 10,900,722 $ 10,902,130 $ (1,408 )
Schedule of cost basis and fair value of available-for-sale securities by contractual maturity	The cost and fair values of available-for-sale securities by contractual maturity as of December 31, 2015 , were as follows: Fair Value Cost Due within one year $ 7,420,042 $ 7,423,448 Due after one year — — $ 7,420,042 $ 7,423,448

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2015
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses are comprised of the following: December 31, 2015 December 31, 2014 Accrued compensation $ 2,236,494 $ 2,320,238 Accrued consulting and professional fees 1,561,425 594,580 Accrued marketing and promotion 69,258 27,390 Other accrued expenses 588,746 1,008,760 Accrued income taxes 106,270 137,191 Accrued other taxes 1,247,596 1,117,053 Accrued hardware purchases 67,280 580,932 Accrued restructuring costs 717,640 959,270 Accrued investigation, litigation, and settlement costs — 6,880 Accrued Series A redeemable convertible preferred stock dividends 188,805 186,904 $ 6,783,514 $ 6,939,198

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of loss before income taxes	Information pertaining to the Company’s loss before income taxes and the applicable provision for income taxes is as follows: December 31, 2015 2014 2013 Loss before income taxes: Domestic loss $ (2,310,565 ) $ (7,638,422 ) $ (13,466,322 ) Foreign income 756,747 936,692 959,964 Total loss before income taxes: (1,553,818 ) (6,701,730 ) (12,506,358 ) Provision (benefit) for income taxes: Current: Federal $ 3,939 $ (843 ) $ (1,823,192 ) State and local 16,002 26,145 (209,079 ) Foreign 482,242 400,407 348,300 502,183 425,709 (1,683,971 ) Deferred: Federal $ (167,634 ) $ 14,878 $ 14,875 State and local 7,006 (3,027 ) 981 Foreign 33,988 72,531 94,347 (126,640 ) 84,382 110,203 Total provision (benefit) for income taxes: $ 375,543 $ 510,091 $ (1,573,768 )
Schedule of deferred tax assets and liabilities	Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2015 2014 Deferred Tax Assets: Allowance for receivables $ 72,539 $ 42,861 Deferred revenue 2,939,462 4,198,465 Share-based compensation 3,095,723 3,099,636 Accrued expenses and other liabilities 307,565 362,721 Domestic net operating loss carryforwards 26,023,318 23,386,049 Foreign net operating loss carryforwards 99,544 7,503 Tax credit carryforwards 574,997 574,998 AMT tax credit carryforwards 483,285 484,077 Capital loss carryforwards 77,586 75,607 Fixed assets 554,154 527,881 Intangibles 1,762,519 2,051,230 Sub-total 35,990,692 34,811,028 Valuation allowance (35,121,608 ) (34,625,398 ) Total Deferred Tax Assets 869,084 185,630 Deferred Tax Liabilities: Deferred state income tax (541,359 ) — Foreign withholding taxes (128,261 ) (111,291 ) Total Deferred Tax Liabilities (669,620 ) (111,291 ) Net Deferred Tax Assets $ 199,464 $ 74,339
Schedule of effective tax rate reconciliation	The effective tax rate before income taxes varies from the current statutory federal income tax rate as follows: December 31, 2015 2014 2013 Tax at Federal statutory rate $ (543,836 ) $ (2,345,606 ) $ (4,377,225 ) Increase (reduction) in income taxes resulting from: State and local taxes 3,195 10,182 8,948 Non-deductible expenses (31,199 ) 52,565 25,295 Settlement costs — (80,406 ) 56,882 Net effect of foreign operations 235,850 129,003 552,855 Uncertain tax positions 26,814 28,485 (2,173,905 ) Change in valuation allowance 680,780 2,715,868 4,333,382 Other 3,939 — — $ 375,543 $ 510,091 $ (1,573,768 )
Schedule of unrecognized tax benefits	A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: 2015 2014 Balance at January 1, $ 224,637 $ 217,237 Increases to tax positions taken in prior years 9,306 7,400 Decreases to tax positions taken in prior years — — Increase for tax positions taken during the current year — — Expiration of statutes of limitation — — Translation (16,654 ) — Balance at December 31, $ 217,289 $ 224,637

Accumulated Other Comprehensi35

Accumulated Other Comprehensive Loss (Tables)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The changes in Accumulated Other Comprehensive Loss, net of applicable tax, for December 31, 2015 are as follows: Foreign Net Net Total Accumulated other comprehensive (loss) income at December 31, 2014 $ (1,536,495 ) $ (1,408 ) $ 26,613 $ (1,511,290 ) Other comprehensive (loss) income Other comprehensive loss before reclassifications (190,499 ) (1,549 ) (5,997 ) (198,045 ) Amounts reclassified from accumulated other comprehensive (loss) income — (449 ) 6,570 6,121 Total other comprehensive (loss) income (190,499 ) (1,998 ) 573 (191,924 ) Accumulated other comprehensive (loss) income at December 31, 2015 $ (1,726,994 ) $ (3,406 ) $ 27,186 $ (1,703,214 ) The changes in Accumulated Other Comprehensive Loss, net of applicable tax, for December 31, 2014 are as follows: Foreign Net Net Total Accumulated other comprehensive (loss) income at December 31, 2013 $ (1,693,905 ) $ 3,410 $ (71,892 ) $ (1,762,387 ) Other comprehensive (loss) income Other comprehensive income (loss) before reclassifications 157,410 (844 ) 85,744 242,310 Amounts reclassified from accumulated other comprehensive (loss) income — (3,974 ) 12,761 8,787 Total other comprehensive income (loss) 157,410 (4,818 ) 98,505 251,097 Accumulated other comprehensive (loss) income at December 31, 2014 $ (1,536,495 ) $ (1,408 ) $ 26,613 $ (1,511,290 ) The changes in Accumulated Other Comprehensive Loss, net of applicable tax, for December 31, 2013 are as follows: Foreign Net Net Total Accumulated other comprehensive (loss) income at December 31, 2012 $ (1,601,138 ) $ 6,210 $ (55,122 ) $ (1,650,050 ) Other comprehensive (loss) income Other comprehensive loss before reclassifications (92,767 ) (1,974 ) (25,320 ) (120,061 ) Amounts reclassified from accumulated other comprehensive (loss) income — (826 ) 8,550 7,724 Total other comprehensive loss (92,767 ) (2,800 ) (16,770 ) (112,337 ) Accumulated other comprehensive (loss) income at December 31, 2013 $ (1,693,905 ) $ 3,410 $ (71,892 ) $ (1,762,387 )

Share-Based Payment Arrangeme36

Share-Based Payment Arrangements (Tables)	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Details of Stock Option Plan	The following table summarizes the plans under which the Company granted equity compensation as of December 31, 2015 : Name of Plan Shares Shares Available Shares Last Date for Grant FalconStor Software, Inc., 2006 Incentive Stock Plan 13,455,546 2,914,559 7,310,270 May 17, 2016 FalconStor Software, Inc., 2013 Outside Directors Equity Compensation Plan 400,000 210,000 133,900 May 9, 2016
Schedule of Equity Awards Outstanding	The following table summarizes the Company’s equity plans that have expired but that still have equity awards outstanding as of December 31, 2015 : Name of Plan Shares Available for Grant Shares Outstanding FalconStor Software, Inc., 2000 Stock Option Plan — 328,171 2004 Outside Directors Stock Option Plan — 40,000 FalconStor Software, Inc., 2007 Outside Directors Equity Compensation Plan — 160,000
Schedule of Stock Option Activity	A summary of the Company’s stock option activity for 2015 is as follows: Number of Weighted Weighted Aggregate Options Outstanding at December 31, 2014 5,466,936 $ 3.93 5.51 $ 7,350 Granted 340,000 $ 1.81 Exercised (43,560 ) $ 1.36 Forfeited (666,185 ) $ 5.00 Expired (241,250 ) $ 6.50 Options Outstanding at December 31, 2015 4,855,941 $ 3.53 4.76 $ 632,581 Options Exercisable at December 31, 2015 4,046,871 $ 3.92 4.13 $ 374,972 Options Expected to Vest after December 31, 2015 (1) 566,349 $ 1.60 7.88 $ 180,326 (1) Options expected to vest after December 31, 2015 reflect an estimated forfeiture rate
Schedule of Share Based Compensation Recognized	The Company recognized share-based compensation expense for all awards issued under the Company’s stock equity plans in the following line items in the consolidated statement of operations: Years ended December 31, 2015 2014 2013 Cost of revenue - Product $ — $ — $ 181 Cost of revenue - Support and Service 98,776 91,197 136,975 Research and development costs 806,348 282,416 363,296 Selling and marketing 285,787 327,694 397,967 General and administrative 738,466 764,876 807,010 $ 1,929,377 $ 1,466,183 $ 1,705,429
Stock Based Compensation Expense - Restricted Stock	A summary of the total stock-based compensation expense related to restricted stock awards and restricted stock units, which is included in the Company’s total share-based compensation expense for each respective year, is as follows: Years ended December 31, 2015 2014 2013 Directors, officers and employees $ 827,055 $ 602,889 $ 257,843 Non-employee consultants — — — $ 827,055 $ 602,889 $ 257,843
Schedule of Restricted Stock Units Activity	A summary of the Company’s restricted stock activity for 2015 is as follows: Number of Restricted Stock Awards Non-Vested at December 31, 2014 2,333,357 Granted 1,493,555 Vested (310,155 ) Forfeited (400,357 ) Non-Vested at December 31, 2015 3,116,400
Schedule of Share-based Compensation, Nonemployee	A summary of the total stock-based compensation expense related to share-based awards granted to non-employee consultants, which is included in the Company’s total share-based compensation expense for each respective period, is as follows: Years ended December 31, 2015 2014 2013 Non-qualified stock options $ 73,539 $ 1,173 $ 37,379 Restricted stock awards — — — $ 73,539 $ 1,173 $ 37,379
Schedule of assumptions used to value share-based compensation	In addition to the exercise and grant date prices of the awards, certain weighted average assumptions that were used to estimate the fair value of share-based payment grants in the respective periods are listed in the table below: Years ended December 31, 2015 2014 2013 Expected dividend yield 0% 0% 0% Expected volatility 55 - 56% 55 - 57% 61 - 64% Risk-free interest rate 1.35 - 1.67% 1.20 - 1.84% 0.84 - 1.64% Expected term (years) 5.5 3.4 - 5.5 5.5 Discount for post-vesting restrictions N/A N/A N/A

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories are as follows: December 31, 2015 December 31, 2014 Finished systems $ 70,534 $ 352,493 Total Inventory $ 70,534 $ 352,493

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Payments For Operating Leases	The following is a schedule of future minimum lease payments for all operating leases as of December 31, 2015 : 2016 $ 1,919,172 2017 1,570,236 2018 1,361,341 2019 1,402,181 2020 1,444,247 Thereafter 491,020 $ 8,188,197

Restructuring Costs (Tables)

Restructuring Costs (Tables)	12 Months Ended
	Dec. 31, 2015
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Costs	Accrued restructuring costs as of December 31, 2015 associated with the 2013 Plan is as follows: Severance related costs Facility and other costs Total Original charge $ 3,179,131 $ 426,889 $ 3,606,020 Utilized/Paid (2,067,554 ) (231,973 ) (2,299,527 ) Balance at December 31, 2013 $ 1,111,577 $ 194,916 $ 1,306,493 Provisions/Additions 365,174 770,136 1,135,310 Utilized/Paid (653,325 ) (759,563 ) (1,412,888 ) Balance at December 31, 2014 $ 823,426 $ 205,489 $ 1,028,915 Provisions/Additions 55,527 117,468 172,995 Utilized/Paid (161,313 ) (307,935 ) (469,248 ) Balance at December 31, 2015 $ 717,640 $ 15,022 $ 732,662

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Schedule of Funded Status	Pension information for the years ended December 31, 2015 and 2014 , is as follows: 2015 2014 Accumulated benefit obligation $ 149,932 $ 145,004 Changes in projected benefit obligation: Projected benefit obligation at beginning of year 193,144 288,845 Interest cost 4,348 6,439 Actuarial loss (gain) 2,549 (92,394 ) Benefits paid — — Service cost 1,240 2,223 Currency translation and other (7,183 ) (11,969 ) Projected benefit obligation at end of year $ 194,098 $ 193,144 Changes in plan assets: Fair value of plan assets at beginning of year $ 120,018 $ 114,791 Actual return on plan assets 3,129 2,583 Benefits paid — — Employer contributions 7,864 9,480 Currency translation and other (4,677 ) (6,836 ) Fair value of plan assets at end of year $ 126,334 $ 120,018 Funded status $ 67,764 $ 73,126
Schedule of Pension Cost	Components of net periodic pension cost: Interest cost $ 4,348 $ 6,439 Expected return on plan assets (2,702 ) (2,312 ) Amortization of net loss 3,684 6,411 Service cost 1,240 2,223 Net periodic pension cost $ 6,570 $ 12,761
Schedule of Assumptions Used in Computing Benefit Obligations	The Company utilized the following assumptions in computing the benefit obligation at December 31, 2015 and 2014 as follows: Years ended December 31, 2015 2014 Discount rate 1.75 % 2.25 % Rate of increase in compensation levels 2.00 % 2.00 % Expected long-term rate of return on plan assets 1.75 % 2.25 %

Segment Reporting and Concent41

Segment Reporting and Concentrations (Tables)	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Schedule of Revenue And Long Lived Assets By Geographical Areas	Revenues from the United States to customers in the following geographical areas for the years ended December 31, 2015 , 2014 and 2013 , and the location of long-lived assets as of December 31, 2015 and 2014 , are summarized as follows: Years ended December 31, 2015 2014 2013 Revenues: Americas $ 23,308,240 $ 16,935,743 $ 22,538,045 Asia Pacific 12,934,261 14,154,568 17,128,902 Europe, Middle East, Africa and Other 12,328,490 15,183,204 18,969,557 Total Revenues $ 48,570,991 $ 46,273,515 $ 58,636,504 December 31, 2015 2014 Long-lived assets: Americas $ 7,519,787 $ 8,327,602 Asia Pacific 650,633 822,277 Europe, Middle East, Africa and Other 168,241 233,669 Total long-lived assets $ 8,338,661 $ 9,383,548

Valuation and Qualifying Acco42

Valuation and Qualifying Accounts Allowance for Returns and Doubtful Accounts (Tables)	12 Months Ended
	Dec. 31, 2015
Valuation and Qualifying Accounts [Abstract]
Schedule of Valuation Accounts	Period Ended Balance at Beginning of Period Benefits to Expenses / Revenue (Increases) Deductions Balance at End of Period December 31, 2015 $ 119,530 (6,745 ) (78,500 ) $ 191,285 December 31, 2014 $ 276,302 (64,904 ) 91,868 $ 119,530 December 31, 2013 $ 940,101 (294,074 ) 369,725 $ 276,302

Quarterly Financial Data (Una43

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Schedule of quarterly financial data	The following is a summary of selected quarterly financial data for the years ended December 31, 2015 and 2014 : Quarter 2015 First Second Third Fourth Revenue (a) $ 19,939,876 $ 9,552,589 $ 9,683,226 $ 9,395,300 Gross profit 17,529,634 6,893,803 7,257,275 7,208,145 Net income (loss) attributable to common stockholders 4,934,176 (2,998,645 ) (2,922,694 ) (2,295,014 ) Basic net income (loss) per share attributable to common stockholders $ 0.12 $ (0.07 ) $ (0.07 ) $ (0.06 ) Diluted net income (loss) per share attributable to common stockholders $ 0.10 $ (0.07 ) $ (0.07 ) $ (0.06 ) Quarter 2014 First Second Third Fourth Revenue $ 12,001,499 $ 11,302,667 $ 11,175,440 $ 11,793,909 Gross profit 9,327,124 8,595,004 8,583,096 9,137,575 Net (loss) income attributable to common stockholders (b) (3,104,078 ) 1,023,512 (3,545,218 ) (2,827,016 ) Basic net (loss) income per share attributable to common stockholders $ (0.06 ) $ 0.02 $ (0.08 ) $ (0.06 ) Diluted net (loss) income per share attributable to common stockholders $ (0.06 ) $ 0.02 $ (0.08 ) $ (0.06 ) The sum of the quarterly net income (loss) per share amounts do not necessarily equal the annual amount reported, as per share amounts are computed independently for each quarter and the annual period based on the weighted average common shares outstanding in each period. (a) Revenue in the first quarter of 2015 includes revenue of $11.3 million from our joint development agreement. (b) Net income attributable to common stockholders in the second quarter of 2014 includes a gain of $5.3 million related to the Estate litigation settlement.

Summary of Significant Accoun44

Summary of Significant Accounting Policies (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Goodwill	$ 4,150,339	$ 4,150,339
Other intangible assets
Gross carrying amount	3,609,524	3,395,024
Accumulated amortization	(3,353,387)	(3,198,987)
Net carrying amount	$ 256,137	$ 196,037

Summary of Significant Accoun45

Summary of Significant Accounting Policies (Details 1) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Gross carrying amount	$ 3,037,215	$ 2,903,115
Accumulated amortization	(1,920,399)	(1,394,598)
Software development costs, net	$ 1,116,816	$ 1,508,517

Summary of Significant Accoun46

Summary of Significant Accounting Policies (Details 2) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common stock equivalents	16,753,857	16,581,809	16,931,548
Stock option and restricted stock award
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common stock equivalents	7,972,341	7,800,293	8,150,032
Series A redeemable convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common stock equivalents	8,781,516	8,781,516	8,781,516

Summary of Significant Accoun47

Summary of Significant Accounting Policies (Details 3) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Numerator:
Net loss	$ (2,295,014)	$ (2,922,694)	$ (2,998,645)	$ 4,934,176	$ (2,827,016)	$ (3,545,218)	$ 1,023,512	$ (3,104,078)	$ (1,929,361)	$ (7,211,821)	$ (10,932,590)
Preferred Stock Dividends and Other Adjustments [Abstract]
Less: Series A redeemable convertible preferred stock dividends									765,203	747,616	216,379
Less: Accretion to redemption value of Series A redeemable convertible preferred stock									587,613	493,363	127,504
Net loss attributable to common stockholders									$ (3,282,177)	$ (8,452,800)	$ (11,276,473)
Denominator:
Weighted average basic shares outstanding (in shares)									41,093,644	46,265,225	47,979,467
Effect of dilutive securities:
Stock options and restricted stock									0	0	0
Series A redeemable convertible preferred stock									0	0	0
Weighted average diluted shares outstanding (in shares)									41,093,644	46,265,225	47,979,467
EPS:
Basic net loss per share attributable to common stockholders (in dollars per share)	$ (0.06)	$ (0.07)	$ (0.07)	$ 0.12	$ (0.06)	$ (0.08)	$ 0.02	$ (0.06)	$ (0.08)	$ (0.18)	$ (0.24)
Diluted net loss per share attributable to common stockholders (in dollars per share)	$ (0.06)	$ (0.07)	$ (0.07)	$ 0.10	$ (0.06)	$ (0.08)	$ 0.02	$ (0.06)	$ (0.08)	$ (0.18)	$ (0.24)

Summary of Significant Accoun48

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Working Capital Deficiency		$ 2,300,000
Deferred Revenue, Current		16,553,519	$ 23,380,012
Cash equivalents, fair value		2,700,000	2,000,000
Marketable securities, fair value		7,420,042	10,900,722
Product revenue recorded related to agreement	$ 11,300,000	11,300,000	600,000
Maintenance revenue recorded related to agreement			200,000
Deferred Revenue or Services Remaining Related to License Agreement		0
Amortization expense		154,400	121,874	$ 122,951
Identifiable intangible assets, amortization expense, 2016		136,434
Identifiable intangible assets, amortization expense, 2017		95,083
Identifiable intangible assets, amortization expense, 2018		24,620
Capitalized computer software amortization		525,801	471,773	339,589
Expected future amortization expense for software development costs, 2016		467,257
Expected future amortization expense for software development costs, 2017		292,144
Expected future amortization expense for software development costs, 2018		247,095
Expected future amortization expense for software development costs, 2019		79,174
Expected future amortization expense for software development costs, 2020		31,146
Foreign currency transaction loss		400,000	700,000	1,100,000
Proceeds from sale of cost method investment		0	0	3,000,000
Gain on sale of joint venture		$ 0	0	2,096,364
Minimum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Estimated useful lives of the assets		3 years
Maximum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Estimated useful lives of the assets		7 years
Tianjin Zhongke Blue Whale Information Technologies Co., Ltd. ('Blue Whale')
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Proceeds from sale of cost method investment				3,000,000
Interest and other income (loss), net | Tianjin Zhongke Blue Whale Information Technologies Co., Ltd. ('Blue Whale')
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Gain on sale of joint venture				$ 2,100,000
Government securities and corporate debt securities
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Marketable securities, fair value		$ 7,400,000	$ 10,900,000

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Computer hardware and software	$ 16,607,596	$ 16,065,087
Furniture and equipment	961,712	939,475
Leasehold improvements	1,931,291	1,997,529
Automobile	13,008	13,008
Gross	19,513,607	19,015,099
Less accumulated depreciation	(17,947,675)	(16,867,911)
Net	$ 1,565,932	$ 2,147,188

Property and Equipment (Detail

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Disposals of property and equipment	$ 214,000
Accumulated depreciation on disposals of property and equipment	161,000
Write off of fully depreciated assets and related accumulated depreciation		$ 700,000
Depreciation expense	$ 1,300,000	1,700,000	$ 2,200,000
Facility and other costs | Restructuring Costs Under the 2013 Plan
Property, Plant and Equipment [Line Items]
Disposals of property and equipment		600,000
Accumulated depreciation on disposals of property and equipment		$ 300,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Sep. 16, 2013
Marketable securities:
Marketable securities, fair value	$ 7,420,042	$ 10,900,722
Derivative instruments, fair value	82,024	137,171	$ 200,000
Corporate debt and government securities
Marketable securities:
Marketable securities, fair value	7,400,000	10,900,000
Recurring
Cash equivalents:
Total cash equivalents	2,725,094	2,049,972
Marketable securities:
Marketable securities, fair value	7,420,042	10,900,722
Derivative instruments, fair value	82,024	137,171
Total derivative liabilities measured at fair value	82,024	137,171
Total assets and liabilities measured at fair value	10,227,160	13,087,865
Recurring | Corporate debt and government securities
Marketable securities:
Marketable securities, fair value	7,420,042	10,900,722
Recurring | Money market funds and commercial paper
Cash equivalents:
Total cash equivalents	2,725,094	2,049,972
Recurring | Fair Value, Inputs, Level 1
Cash equivalents:
Total cash equivalents	2,725,094	2,049,972
Marketable securities:
Marketable securities, fair value	0	0
Derivative instruments, fair value	0	0
Total derivative liabilities measured at fair value	0	0
Total assets and liabilities measured at fair value	2,725,094	2,049,972
Recurring | Fair Value, Inputs, Level 1 | Corporate debt and government securities
Marketable securities:
Marketable securities, fair value	0	0
Recurring | Fair Value, Inputs, Level 1 | Money market funds and commercial paper
Cash equivalents:
Total cash equivalents	2,725,094	2,049,972
Recurring | Fair Value, Inputs, Level 2
Cash equivalents:
Total cash equivalents	0	0
Marketable securities:
Marketable securities, fair value	7,420,042	10,900,722
Derivative instruments, fair value	0	0
Total derivative liabilities measured at fair value	0	0
Total assets and liabilities measured at fair value	7,420,042	10,900,722
Recurring | Fair Value, Inputs, Level 2 | Corporate debt and government securities
Marketable securities:
Marketable securities, fair value	7,420,042	10,900,722
Recurring | Fair Value, Inputs, Level 2 | Money market funds and commercial paper
Cash equivalents:
Total cash equivalents	0	0
Recurring | Fair Value, Inputs, Level 3
Cash equivalents:
Total cash equivalents	0	0
Marketable securities:
Marketable securities, fair value	0	0
Derivative instruments, fair value	82,024	137,171
Total derivative liabilities measured at fair value	82,024	137,171
Total assets and liabilities measured at fair value	82,024	137,171
Recurring | Fair Value, Inputs, Level 3 | Corporate debt and government securities
Marketable securities:
Marketable securities, fair value	0	0
Recurring | Fair Value, Inputs, Level 3 | Money market funds and commercial paper
Cash equivalents:
Total cash equivalents	$ 0	$ 0

Fair Value Measurements (Deta52

Fair Value Measurements (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 137,171	$ 159,134	$ 0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances	0	0	170,337
Total gains recognized in earnings	(55,147)	(21,963)	(11,203)
Ending Balance	$ 82,024	$ 137,171	$ 159,134

Fair Value Measurements (Deta53

Fair Value Measurements (Details Narrative) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Sep. 16, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities, fair value	$ 7,420,042	$ 10,900,722
Derivative Instruments	82,024	137,171	$ 200,000
Other long-term liabilities | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Instruments	100,000	100,000
Corporate debt and government securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities, fair value	7,400,000	10,900,000
Corporate debt and government securities | Marketable securities | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities, fair value	7,400,000	10,900,000
Money market funds and commercial paper | Cash and cash equivalents | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market funds	$ 2,700,000	$ 2,000,000

Marketable Securities (Details)

Marketable Securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Aggregate Fair Value	$ 7,420,042	$ 10,900,722
Cost or Amortized Cost	7,423,448	10,902,130
Net Unrealized Losses	(3,406)	(1,408)
Government securities
Schedule of Available-for-sale Securities [Line Items]
Aggregate Fair Value	6,560,303	6,740,825
Cost or Amortized Cost	6,562,792	6,741,466
Net Unrealized Losses	(2,489)	(641)
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Aggregate Fair Value	859,739	4,159,897
Cost or Amortized Cost	860,656	4,160,664
Net Unrealized Losses	$ (917)	$ (767)

Marketable Securities (Details

Marketable Securities (Details 1) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	$ 7,420,042	$ 10,900,722
Cost	7,423,448	$ 10,902,130
Due Within One Year
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	7,420,042
Cost	7,423,448
Due After One Year
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	0
Cost	$ 0

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Accrued compensation	$ 2,236,494	$ 2,320,238
Accrued consulting and professional fees	1,561,425	594,580
Accrued marketing and promotion	69,258	27,390
Other accrued expenses	588,746	1,008,760
Accrued income taxes	106,270	137,191
Accrued other taxes	1,247,596	1,117,053
Accrued hardware purchases	67,280	580,932
Accrued restructuring costs	717,640	959,270
Accrued investigation, litigation, and settlement costs	0	6,880
Accrued Series A redeemable convertible preferred stock dividends	188,805	186,904
Total accrued expenses	$ 6,783,514	$ 6,939,198

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Loss before income taxes:
Domestic loss	$ (2,310,565)	$ (7,638,422)	$ (13,466,322)
Foreign income	756,747	936,692	959,964
Loss before income taxes	(1,553,818)	(6,701,730)	(12,506,358)
Provision (benefit) for income taxes:
Federal	3,939	(843)	(1,823,192)
State and local	16,002	26,145	(209,079)
Foreign	482,242	400,407	348,300
Total	502,183	425,709	(1,683,971)
Deferred:
Federal	(167,634)	14,878	14,875
State and local	7,006	(3,027)	981
Foreign	33,988	72,531	94,347
Total	(126,640)	84,382	110,203
Total provision (benefit) for income taxes	$ 375,543	$ 510,091	$ (1,573,768)

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Deferred Tax Assets:
Allowance for receivables	$ 72,539	$ 42,861
Deferred revenue	2,939,462	4,198,465
Share-based compensation	3,095,723	3,099,636
Accrued expenses and other liabilities	307,565	362,721
Domestic net operating loss carryforwards	26,023,318	23,386,049
Foreign net operating loss carryforwards	99,544	7,503
Tax credit carryforwards	574,997	574,998
AMT tax credit carryforwards	483,285	484,077
Capital loss carryforwards	77,586	75,607
Fixed assets	554,154	527,881
Intangibles	1,762,519	2,051,230
Sub-total	35,990,692	34,811,028
Valuation allowance	(35,121,608)	(34,625,398)
Total Deferred Tax Assets	869,084	185,630
Deferred Tax Liabilities:
Deferred state income tax	(541,359)	0
Foreign withholding taxes	(128,261)	(111,291)
Total Deferred Tax Liabilities	(669,620)	(111,291)
Net Deferred Tax Assets	$ 199,464	$ 74,339

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Tax at Federal statutory rate	$ (543,836)	$ (2,345,606)	$ (4,377,225)
Increase (reduction) in income taxes resulting from:
State and local taxes	3,195	10,182	8,948
Non-deductible expenses	(31,199)	52,565	25,295
Settlement costs	0	(80,406)	56,882
Net effect of foreign operations	235,850	129,003	552,855
Uncertain tax positions	26,814	28,485	(2,173,905)
Change in valuation allowance	680,780	2,715,868	4,333,382
Other	3,939	0	0
Total provision (benefit) for income taxes	$ 375,543	$ 510,091	$ (1,573,768)

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at January 1,	$ 224,637	$ 217,237
Increases to tax positions taken in prior years	9,306	7,400
Decreases to tax positions taken in prior years	0	0
Increase for tax positions taken during the current year	0	0
Expiration of statutes of limitation	0	0
Translation	(16,654)	0
Balance at December 31,	$ 217,289	$ 224,637

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Loss Carryforwards [Line Items]
Provision (benefit) for income taxes	$ 375,543	$ 510,091	$ (1,573,768)
Income tax benefit	$ 200,000
Tax benefit related to the reversal of unrecognized tax benefits			$ 2,300,000
Federal net operating loss carryforwards expire	expire beginning in 2030 through 2035, if not utilized.
Tax credit carryforwards	$ 1,100,000
Undistributed earnings of foreign subsidiaries	4,100,000
Unrecognized tax benefits that would reduce effective tax rate	300,000
Accrued interest	100,000
Unrecognized tax benefits expected to reverse, net twelve months	14,265
Research tax credit carryforward
Operating Loss Carryforwards [Line Items]
Tax credit carryforwards	600,000
Alternative Minimum Tax Credit
Operating Loss Carryforwards [Line Items]
Tax credit carryforwards	500,000
State and local jurisdiction and foreign tax authority
Operating Loss Carryforwards [Line Items]
Provision (benefit) for income taxes	600,000
Domestic tax authority
Operating Loss Carryforwards [Line Items]
Federal net operating loss carryforwards	$ 74,000,000

Accumulated Other Comprehensi62

Accumulated Other Comprehensive Loss (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive (loss) income, beginning balance	$ (1,511,290)	$ (1,762,387)	$ (1,650,050)
Other comprehensive (loss) income
Other comprehensive income (loss) before reclassifications	(198,045)	242,310	(120,061)
Amounts reclassified from accumulated other comprehensive income (loss)	6,121	8,787	7,724
Total other comprehensive income (loss)	(191,924)	251,097	(112,337)
Accumulated other comprehensive (loss) income, ending balance	(1,703,214)	(1,511,290)	(1,762,387)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive (loss) income, beginning balance	(1,536,495)	(1,693,905)	(1,601,138)
Other comprehensive (loss) income
Other comprehensive income (loss) before reclassifications	(190,499)	157,410	(92,767)
Amounts reclassified from accumulated other comprehensive income (loss)	0	0	0
Total other comprehensive income (loss)	(190,499)	157,410	(92,767)
Accumulated other comprehensive (loss) income, ending balance	(1,726,994)	(1,536,495)	(1,693,905)
Net Unrealized Gains (Losses) On Marketable Securities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive (loss) income, beginning balance	(1,408)	3,410	6,210
Other comprehensive (loss) income
Other comprehensive income (loss) before reclassifications	(1,549)	(844)	(1,974)
Amounts reclassified from accumulated other comprehensive income (loss)	(449)	(3,974)	(826)
Total other comprehensive income (loss)	(1,998)	(4,818)	(2,800)
Accumulated other comprehensive (loss) income, ending balance	(3,406)	(1,408)	3,410
Net Minimum Pension Liability
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive (loss) income, beginning balance	26,613	(71,892)	(55,122)
Other comprehensive (loss) income
Other comprehensive income (loss) before reclassifications	(5,997)	85,744	(25,320)
Amounts reclassified from accumulated other comprehensive income (loss)	6,570	12,761	8,550
Total other comprehensive income (loss)	573	98,505	(16,770)
Accumulated other comprehensive (loss) income, ending balance	$ 27,186	$ 26,613	$ (71,892)

Series A Redeemable Convertib63

Series A Redeemable Convertible Preferred Stock (Details Narrative) - USD ($)	Sep. 16, 2013	Jan. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Jun. 26, 2014	Sep. 13, 2013
Class of Stock [Line Items]
Series A redeemable convertible preferred stock, shares issued			900,000	900,000
Series A redeemable convertible preferred stock, par value (in dollars per share)			$ 0.001	$ 0.001
Series A redeemable convertible preferred stock, purchase consideration (in millions)			$ 9,000,000	$ 9,000,000
Net proceeds from issuance of Series A redeemable convertible preferred stock			$ 0	0	$ 8,731,677
Consecutive trading days, convertible debt threshold			60 days
Minimum percentage of common stock price to conversion price to determine eligibility of conversion through 60 consecutive trading days			250.00%
Threshold of stock price trigger, percentage			225.00%
Daily trading volume			25.00%
Consecutive days			20 days
Preferred Stock, Financing Proceeds Threshold			$ 5,000,000
Upon fundamental sale transaction holders can redeem			250.00%
Upon certain triggering events holders can redeem			100.00%
Basis spread on Series A redeemable convertible preferred stock dividend, percentage			5.00%
Series A redeemable convertible preferred stock dividend rate description			Holders of the Series A redeemable convertible preferred stock are entitled to receive quarterly dividends at the Prime Rate (Wall Street Journal Eastern Edition) plus 5% (up to a maximum amount of 10%)
Series A redeemable convertible preferred stock dividend, minimum cash flow requirement			$ 1,000,000
Shares issued for Series A redeemable convertible preferred stock dividends			227,345
Share price (in dollars per share)						$ 1.69	$ 1.23
Voting power			7,317,073
Percentage of accounts receivable			80.00%
Accounting treatment for temporary equity			The Company has classified the Series A redeemable convertible preferred stock as temporary equity in the financial statements as it is subject to redemption at the option of the holder under certain circumstances.
Derivative instruments, fair value	$ 200,000		$ 82,024	137,171
Transaction costs associated with the preferred stock issuance	300,000
Beneficial conversion feature	$ 2,000,000
Accretion deduction included as an adjustment to net loss attributable to common stockholders			587,613	493,363	127,504
Dividend deduction included as an adjustment to net loss attributable to common stockholders			765,203	747,616	216,379
Interest and other income (loss)
Class of Stock [Line Items]
Gain on derivative			$ 55,147	$ 21,963	$ 11,203
Subsequent event
Class of Stock [Line Items]
Shares issued for Series A redeemable convertible preferred stock dividends		103,200
Series A redeemable convertible preferred stock
Class of Stock [Line Items]
Series A redeemable convertible preferred stock, shares issued	900,000
Series A redeemable convertible preferred stock, par value (in dollars per share)	$ 0.001
Series A redeemable convertible preferred stock price per share (in dollars per share)	$ 10
Series A redeemable convertible preferred stock, purchase consideration (in millions)	$ 9,000,000
Series A redeemable convertible preferred stock conversion price	$ 1.02488
Net proceeds from issuance of Series A redeemable convertible preferred stock	$ 8,700,000
Series A redeemable convertible preferred stock | Prime rate
Class of Stock [Line Items]
Series A redeemable convertible preferred stock, basis spread on dividend rate, conditional percentage			10.00%
Basis spread on Series A redeemable convertible preferred stock dividend, percentage			5.00%
Increase of dividend rate each six months stock remains unredeemed			1.00%
Maximum | Prime rate
Class of Stock [Line Items]
Maximum dividend rate			10.00%
Maximum | Series A redeemable convertible preferred stock | Prime rate
Class of Stock [Line Items]
Maximum dividend rate			19.00%

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Jul. 24, 2015	Jun. 27, 2014	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Apr. 22, 2015	Jun. 26, 2014	Sep. 13, 2013
Share-based Goods and Nonemployee Services Transaction [Line Items]
Number of shares authorized for repurchase							5,000,000
Stock repurchased during period, shares				92,161	4,298,533
Stock repurchased during period, value				$ 137,858	$ 4,685,401
Litigation Settlement and Retired During Period, Shares		3,132,141
Gain on Estate litigation settlement			$ 5,300,000	$ 0	$ 5,293,319	$ 0
Share price (in dollars per share)								$ 1.69	$ 1.23
Stock repurchased during period, average cost per share (in dollars per share)				$ 1.50
Remaining number of shares authorized for repurchased				4,907,839
Restricted Common Stock
Share-based Goods and Nonemployee Services Transaction [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	2,550,000
Expected period for shares to be issued	24 months

Share-Based Payment Arrangeme65

Share-Based Payment Arrangements (Details) - shares	12 Months Ended
	Dec. 31, 2015	Jul. 01, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Outstanding	4,855,941		5,466,936
FalconStor Software, Inc., 2006 Incentive Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Authorized	13,455,546	20,000,000
Shares Available for grant	2,914,559	3,246,122
Shares Outstanding	7,310,270
Last date for grant of shares	May 17, 2016
FalconStor Software, Inc., 2013 Outside Directors Equity Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Authorized	400,000
Shares Available for grant	210,000
Shares Outstanding	133,900
Last date for grant of shares	May 9, 2016

Share-Based Payment Arrangeme66

Share-Based Payment Arrangements (Details 1) - shares	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Outstanding	4,855,941	5,466,936
FalconStor Software, Inc., 2000 Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Available for grant	0
Shares Outstanding	328,171
2004 Outside Directors Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Available for grant	0
Shares Outstanding	40,000
FalconStor Software, Inc., 2007 Outside Directors Equity Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Available for grant	0
Shares Outstanding	160,000

Share-Based Payment Arrangeme67

Share-Based Payment Arrangements (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of Options Outstanding, Beginning	5,466,936
Number of Options, Granted	340,000
Number of Options, Exercised	(43,560)
Number of Options, Forfeited	(666,185)
Number of Options, Expired	(241,250)
Number of Options Outstanding, Ending	4,855,941	5,466,936
Number of Options, Exercisable	4,046,871
Number of Options, Expected to Vest after end of period	566,349
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted Average Exercise Price, Outstanding, Beginning (in dollars per share)	$ 3.93
Weighted Average Exercise Price, Granted (in dollars per share)	1.81
Weighted Average Exercise Price, Exercised (in dollars per share)	1.36
Weighted Average Exercise Price, Forfeited (in dollars per share)	5
Weighted Average Exercise Price, Expired (in dollars per share)	6.50
Weighted Average Exercise Price, Outstanding, Ending (in dollars per share)	3.53	$ 3.93
Weighted Average Exercise Price, Exercisable (in dollars per share)	3.92
Weighted Average Exercise Price, Expected to Vest After End of Period (in dollars per share)	$ 1.60
Weighted Average Remaining Contractual Life (in years), Outstanding	4 years 9 months 5 days	5 years 6 months 4 days
Weighted Average Remaining Contractual Life (in years), Exercisable	4 years 1 month 17 days
Weighted Average Remaining Contractual Life (in years), Expected to Vest after end of period	7 years 10 months 18 days
Aggregate Intrinsic Value, Outstanding	$ 632,581	$ 7,350
Aggregate Intrinsic Value, Exercisable	374,972
Aggregate Intrinsic Value, Expected to Vest	$ 180,326

Share-Based Payment Arrangeme68

Share-Based Payment Arrangements (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,929,377	$ 1,466,183	$ 1,705,429
Cost of revenue - Product
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	0	0	181
Cost of revenue - Support and Service
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	98,776	91,197	136,975
Research and development costs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	806,348	282,416	363,296
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	285,787	327,694	397,967
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 738,466	$ 764,876	$ 807,010

Share-Based Payment Arrangeme69

Share-Based Payment Arrangements (Details 4) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,929,377	$ 1,466,183	$ 1,705,429
Restricted stock and restricted stock units
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	827,055	602,889	257,843
Restricted stock and restricted stock units | Directors, officers, and employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	827,055	602,889	257,843
Restricted stock and restricted stock units | Non-employee consultants
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 0	$ 0	$ 0

Share-Based Payment Arrangeme70

Share-Based Payment Arrangements (Details 5)	12 Months Ended
	Dec. 31, 2015shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of Restricted Stock Awards/Units Non-Vested, Beginning	2,333,357
Granted	1,493,555
Vested	(310,155)
Forfeited	(400,357)
Number of Restricted Stock Awards/Units Non-Vested, Ending	3,116,400

Share-Based Payment Arrangeme71

Share-Based Payment Arrangements (Details 6) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1,929,377	$ 1,466,183	$ 1,705,429
Non-employee consultants | Share-based awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	73,539	1,173	37,379
Non-employee consultants | Non-qualified stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	73,539	1,173	37,379
Non-employee consultants | Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0	$ 0	$ 0

Share-Based Payment Arrangeme72

Share-Based Payment Arrangements (Details 7)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%	0.00%
Expected volatility Minimum	55.00%	55.00%	61.00%
Expected volatility Maximum	56.00%	57.00%	64.00%
Risk-free interest rate Minimum	1.35%	1.20%	0.84%
Risk-free interest rate Maximum	1.67%	1.84%	1.64%
Expected term (years)	5 years 6 months		5 years 6 months
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		3 years 4 months 24 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		5 years 6 months

Share-Based Payment Arrangeme73

Share-Based Payment Arrangements (Details Narrative) - USD ($)	Oct. 29, 2015	Jul. 28, 2015	Jul. 01, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Jul. 24, 2015	Jun. 26, 2014	Sep. 13, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of shares outstanding (in shares)				41,666,747	40,924,313
Options contractual term (maximum)		10 years		10 years
Proceeds from stock options, exercised				$ 59,242	$ 24,684	$ 697,500
Intrinsic value of stock options, exercised				9,970	3,836	121,819
Recognition of tax benefits related to share-based compensation expense				0	0	0
Market condition, weighted average grant date fair value		$ 1.05
Total intrinsic value of restricted stock for which the restrictions lapsed				400,000	500,000	200,000
Share-based compensation expense				$ 1,929,377	$ 1,466,183	$ 1,705,429
Share price (in dollars per share)								$ 1.69	$ 1.23
Weighted average fair value of share-based payments granted (in dollars per share)				$ 1.32	$ 1.26	$ 0.84
Estimated forfeiture rate for officers				30.00%	30.00%	30.00%
Estimated forfeiture rate for employees				30.00%	30.00%	30.00%
Estimated forfeiture rate for directors				0.00%	0.00%	0.00%
Reduction to share-based compensation expense due to change in forfeiture rates						$ 100,000
Restricted stock awards, granted				1,493,555
Total unrecognized compensation costs				$ 1,900,000
Weighted-average period of recognition for unrecognized compensation cost				1 year 10 months 7 days
Common stock reserved for issuance upon the exercise of stock options, restricted stock and restricted stock units				11,096,900
FalconStor Software, Inc., 2006 Incentive Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares available for issuance			3,246,122	2,914,559
Maximum shares outstanding under plan, percentage			5.00%
Maximum number of shares authorized (in shares)			20,000,000	13,455,546
Total number of shares outstanding (in shares)			40,920,192
President and Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted share grants		500,000					500,000
Non-employee consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options contractual term (maximum)				10 years
Vested period for options granted				3 years
Directors, officers, and employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options contractual term (maximum)				10 years
Vested period for options granted				3 years
Restricted stock | Non-employee consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense				$ 0	$ 0	$ 0
Cumulus Logic, LLC | Non-employee consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 504,535
Share price (in dollars per share)	$ 1.99
Common stock | Cumulus Logic, LLC | Non-employee consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued related to the Software License and Development Agreement	253,535

Inventories (Details)

Inventories (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Finished systems	$ 70,534	$ 352,493
Total Inventory	$ 70,534	$ 352,493

Inventories (Details Narrative)

Inventories (Details Narrative) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Reserve for excess and/or obsolete inventories	$ 0	$ 0

Commitments and Contingencies76

Commitments and Contingencies (Details)	Dec. 31, 2015USD ($)
Operating Lease Payment
2,016	$ 1,919,172
2,017	1,570,236
2,018	1,361,341
2,019	1,402,181
2,020	1,444,247
Thereafter	491,020
Total Future Minimum Lease Payments Due	$ 8,188,197

Commitments and Contingencies77

Commitments and Contingencies (Details Narrative)	Jul. 24, 2015USD ($)milestoneshares	Sep. 30, 2015	Dec. 31, 2015USD ($)position	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Jul. 28, 2015shares
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Total rent expense for operating leases			$ 2,400,000	$ 3,000,000	$ 3,300,000
Length of warranty of software products (no more than)			90 days
Warranty on software products			Under the terms of substantially all of its software license agreements, the Company has agreed to indemnify its customers for all costs and damages arising from claims against such customers based on, among other things, allegations that the Company’s software infringes the intellectual property rights of a third party. In most cases, in the event of an infringement claim, the Company retains the right to (i) procure for the customer the right to continue using the software; (ii) replace or modify the software to eliminate the infringement while providing substantially equivalent functionality; or (iii) if neither (i) nor (ii) can be reasonably achieved, the Company may terminate the license agreement and refund to the customer a pro-rata portion of the license fee paid to the Company. Such indemnification provisions are accounted for in accordance with the authoritative guidance issued by the FASB on guarantees. From time to time, in the ordinary course of business, the Company receives claims for indemnification, typically from OEMs. The Company is not currently aware of any material claims for indemnification.
Upon certain triggering events holders can redeem			100.00%
Number of positions eliminated, worldwide | position			100
Unrecognized tax benefits that would reduce effective tax rate			$ 300,000
President and Chief Executive Officer
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Annual salary President and Chief Executive Officer of the Company	$ 500,000
Employment Agreement renewal period	12 months
Employment Agreement termination notice period	60 days
Restricted share grants | shares	500,000					500,000
Percentage of shares vested, first milestone	50.00%
Percentage of shares vested, second milestone	50.00%
Restricted shares vesting milestones | milestone	2
Consecutive trading days for closing trading price to achieve restricted stock milestones	90 days
Restructuring Costs Under the 2013 Plan
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Restructuring Reserve			732,662	1,028,915	1,306,493
Severance related costs | Restructuring Costs Under the 2013 Plan
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Restructuring Reserve			$ 717,640	$ 823,426	$ 1,111,577
Minimum | Severance related costs
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Expected period for restructuring cost to be paid			3 months
Maximum | Severance related costs
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Expected period for restructuring cost to be paid		24 months	24 months
Restricted Common Stock
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance | shares	2,550,000
Expected period for shares to be issued	24 months

Derivative Financial Instrume78

Derivative Financial Instruments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Sep. 16, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Foreign currency forward contracts outstanding	$ 0	$ 0	$ 0
Derivative Instruments	82,024	137,171		$ 200,000
Interest and other income (loss)
Derivative Instruments, Gain (Loss) [Line Items]
Gain on derivative	$ 55,147	$ 21,963	$ 11,203

Litigation (Details)

Litigation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Loss Contingencies [Line Items]
Investigation, litigation and settlement related (benefit) expenses	$ 8,842	$ (5,417,925)	$ 373,619
Maximum
Loss Contingencies [Line Items]
Investigation, litigation and settlement related (benefit) expenses	$ 100,000

Restructuring Costs - Schedule

Restructuring Costs - Schedule of Restructuring Costs (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Restructuring Reserve [Roll Forward]
Provisions/Additions	$ 172,995	$ 1,135,310	$ 3,606,020
Utilized/Paid	(469,248)	(1,199,473)	(2,274,716)
Restructuring Costs Under the 2013 Plan
Restructuring Reserve [Roll Forward]
Beginning Balance	1,028,915	1,306,493
Provisions/Additions	172,995	1,135,310	3,606,020
Utilized/Paid	(469,248)	(1,412,888)	(2,299,527)
Ending Balance	732,662	1,028,915	1,306,493
Severance related costs | Restructuring Costs Under the 2013 Plan
Restructuring Reserve [Roll Forward]
Beginning Balance	823,426	1,111,577
Provisions/Additions	55,527	365,174	3,179,131
Utilized/Paid	(161,313)	(653,325)	(2,067,554)
Ending Balance	717,640	823,426	1,111,577
Facility and other costs | Restructuring Costs Under the 2013 Plan
Restructuring Reserve [Roll Forward]
Beginning Balance	205,489	194,916
Provisions/Additions	117,468	770,136	426,889
Utilized/Paid	(307,935)	(759,563)	(231,973)
Ending Balance	$ 15,022	$ 205,489	$ 194,916

Restructuring Costs (Details Na

Restructuring Costs (Details Narrative)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2015USD ($)position	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 172,995	$ 1,135,310	$ 3,606,020
Restructuring Costs Under the 2013 Plan
Restructuring Cost and Reserve [Line Items]
Workforce reduction (over 100) | position		100
Restructuring costs		$ 172,995	1,135,310	3,606,020
Facility and other costs | Restructuring Costs Under the 2013 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring costs		117,468	770,136	426,889
Accelerated depreciation cost (less than $0.1 million in FY 2013)			200,000	100,000
Severance related costs | Restructuring Costs Under the 2013 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 55,527	$ 365,174	$ 3,179,131
Minimum | Severance related costs
Restructuring Cost and Reserve [Line Items]
Expected period for restructuring cost to be paid		3 months
Maximum | Severance related costs
Restructuring Cost and Reserve [Line Items]
Expected period for restructuring cost to be paid	24 months	24 months

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Accumulated benefit obligation	$ 149,932	$ 145,004
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Projected benefit obligation at beginning of year	193,144	288,845
Interest cost	4,348	6,439
Actuarial loss (gain)	2,549	(92,394)
Benefits paid	0	0
Service cost	1,240	2,223
Currency translation and other	(7,183)	(11,969)
Projected benefit obligation at end of year	194,098	193,144
Changes in plan assets:
Fair value of plan assets at beginning of year	120,018	114,791
Actual return on plan assets	3,129	2,583
Benefits paid	0	0
Employer contributions	7,864	9,480
Currency translation and other	(4,677)	(6,836)
Fair value of plan assets at end of year	126,334	120,018
Funded status	$ 67,764	$ 73,126

Employee Benefit Plans (Detai83

Employee Benefit Plans (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Components of net periodic pension cost:
Interest cost	$ 4,348	$ 6,439
Expected return on plan assets	(2,702)	(2,312)
Amortization of net loss	3,684	6,411
Service cost	1,240	2,223
Net periodic pension cost	$ 6,570	$ 12,761

Employee Benefit Plans (Detai84

Employee Benefit Plans (Details 2)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Discount rate	1.75%	2.25%
Rate of increase in compensation levels	2.00%	2.00%
Expected long-term rate of return on plan assets	1.75%	2.25%

Employee Benefit Plans (Detai85

Employee Benefit Plans (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Total amount recognized in other comprehensive loss related to pension plan	$ 573	$ 98,505	$ (16,770)
Benefit payments expected over the next twelve months	8,000
Benefit payments expected in years 2016 - 2025	209,000
Foreign defined benefit plan, Taiwan
Defined Benefit Plan Disclosure [Line Items]
Amount included in accumulated other comprehensive income for amounts that have not yet been recognized in net periodic pension cost	27,186	26,613
Unrecognized transition obligation included in accumulated other comprehensive income	15,615	21,590
Unrecognized actuarial (gain) loss included in accumulated other comprehensive income	(42,800)	(48,203)
Total amount recognized in other comprehensive loss related to pension plan	573
Actuarial loss recognized	(4,827)
Recognition of transition obligations in other comprehensive income as a component of net periodic pension cost	5,400
Transition obligation expected to be recognized in net periodic pension cost in 2016	5,400
Actuarial loss expected to be recognized in net periodic pension cost in 2016	1,618
United States Postretirement Benefit Plan of US Entity [Member]
Defined Benefit Plan Disclosure [Line Items]
Contributions to defined contribution plan	$ 0	0	0
Foreign Postretirement Benefit Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Company contributions to plan, percentage of salary	6.00%
Contributions to defined contribution plan	$ 77,000	$ 97,000	$ 115,000

Segment Reporting and Concent86

Segment Reporting and Concentrations (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Total Revenues	$ 9,395,300	$ 9,683,226	$ 9,552,589	$ 19,939,876	$ 11,793,909	$ 11,175,440	$ 11,302,667	$ 12,001,499	$ 48,570,991	$ 46,273,515	$ 58,636,504
Long-lived assets:
Total long-lived assets	8,338,661				9,383,548				8,338,661	9,383,548
Americas
Revenues:
Total Revenues									23,308,240	16,935,743	22,538,045
Long-lived assets:
Total long-lived assets	7,519,787				8,327,602				7,519,787	8,327,602
Asia Pacific
Revenues:
Total Revenues									12,934,261	14,154,568	17,128,902
Long-lived assets:
Total long-lived assets	650,633				822,277				650,633	822,277
Europe, Middle East, Africa and Other
Revenues:
Total Revenues									12,328,490	15,183,204	$ 18,969,557
Long-lived assets:
Total long-lived assets	$ 168,241				$ 233,669				$ 168,241	$ 233,669

Segment Reporting and Concent87

Segment Reporting and Concentrations (Details Narrative) - customer	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue
Revenue, Major Customer [Line Items]
Number of customers accounting for greater than 10% of benchmark	2	1	1
Accounts receivable
Revenue, Major Customer [Line Items]
Number of customers accounting for greater than 10% of benchmark	2	1
Customer concentration risk | Revenue
Revenue, Major Customer [Line Items]
Percentage of revenue accounted for by one customer	10.00%	11.00%	14.00%
Customer concentration risk | Accounts receivable
Revenue, Major Customer [Line Items]
Percentage of revenue accounted for by one customer	10.00%	11.00%

Valuation and Qualifying Acco88

Valuation and Qualifying Accounts Allowance for Returns and Doubtful Accounts (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at Beginning of Period	$ 119,530	$ 276,302	$ 940,101
Charges (Benefits) to Expenses / Revenues	(6,745)	(64,904)	(294,074)
Deductions	(78,500)	91,868	369,725
Balance at End of Period	$ 191,285	$ 119,530	$ 276,302

Valuation and Qualifying Acco89

Valuation and Qualifying Accounts Allowance for Returns and Doubtful Accounts (Details Narrative) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Valuation and Qualifying Accounts [Abstract]
Cash collections of previously reserved accounts receivable included within revenue (less than $ 0.1 million during FY 2015 and 2013))	$ 0.1	$ 0.1	$ 0.1

Quarterly Financial Data (Una90

Quarterly Financial Data (Unaudited) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 9,395,300	$ 9,683,226	$ 9,552,589	$ 19,939,876	$ 11,793,909	$ 11,175,440	$ 11,302,667	$ 12,001,499	$ 48,570,991	$ 46,273,515	$ 58,636,504
Gross profit	7,208,145	7,257,275	6,893,803	17,529,634	9,137,575	8,583,096	8,595,004	9,327,124	38,888,857	35,642,799	43,480,690
Net (loss) income attributable to common stockholders	$ (2,295,014)	$ (2,922,694)	$ (2,998,645)	$ 4,934,176	$ (2,827,016)	$ (3,545,218)	$ 1,023,512	$ (3,104,078)	$ (1,929,361)	$ (7,211,821)	$ (10,932,590)
Basic net (loss) income per share attributable to common stockholders (in dollars per share)	$ (0.06)	$ (0.07)	$ (0.07)	$ 0.12	$ (0.06)	$ (0.08)	$ 0.02	$ (0.06)	$ (0.08)	$ (0.18)	$ (0.24)
Diluted net (loss) income per share attributable to common stockholders (in dollars per share)	$ (0.06)	$ (0.07)	$ (0.07)	$ 0.10	$ (0.06)	$ (0.08)	$ 0.02	$ (0.06)	$ (0.08)	$ (0.18)	$ (0.24)

Quarterly Financial Data (Una91

Quarterly Financial Data (Unaudited) (Detail Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Product revenue recorded related to agreement		$ 11,300,000	$ 11,300,000	$ 600,000
Gain on Estate litigation settlement	$ 5,300,000		$ 0	$ 5,293,319	$ 0