Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SMSI | |
Entity Registrant Name | SMITH MICRO SOFTWARE INC | |
Entity Central Index Key | 948,708 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 12,134,505 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 2,504 | $ 2,229 |
Accounts receivable, net of allowances for doubtful accounts and other adjustments of $80 (2017) and $197 (2016) | 4,705 | 4,962 |
Income tax receivable | 1 | 1 |
Inventories, net of reserves for excess and obsolete inventory of $148 (2017) and $148 (2016) | 13 | 12 |
Prepaid expenses and other current assets | 508 | 713 |
Total current assets | 7,731 | 7,917 |
Equipment and improvements, net | 1,651 | 1,811 |
Other assets | 146 | 149 |
Intangible assets, net | 680 | 745 |
Goodwill | 3,685 | 3,686 |
Total assets | 13,893 | 14,308 |
Current liabilities: | ||
Accounts payable | 1,600 | 1,907 |
Accrued liabilities | 3,281 | 3,503 |
Related-party notes payable, short-term | 2,000 | |
Deferred revenue | 684 | 98 |
Total current liabilities | 7,565 | 5,508 |
Non-current liabilities: | ||
Related-party notes payable, net of discount & issuance costs of $938 (2017) and $1,033 (2016) | 1,062 | 967 |
Notes payable, net of discount & issuance costs of $938 (2017) and $1,033 (2016) | 1,062 | 967 |
Warrant liability | 502 | 1,210 |
Deferred rent and other long-term liabilities | 2,873 | 2,971 |
Deferred tax liability, net | 181 | 181 |
Total non-current liabilities | 5,680 | 6,296 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, par value $0.001 per share; 5,000,000 shares authorized; none issued or outstanding | ||
Common stock, par value $0.001 per share; 100,000,000 shares authorized; 12,116,156 and 12,297,954 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 12 | 12 |
Additional paid-in capital | 228,265 | 227,889 |
Accumulated comprehensive deficit | (227,629) | (225,397) |
Total stockholders’ equity | 648 | 2,504 |
Total liabilities and stockholders' equity | $ 13,893 | $ 14,308 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowances for doubtful accounts receivable | $ 80 | $ 197 |
Reserves for excess and obsolete inventory | 148 | 148 |
Related-party notes payable, discount & issuance costs | 938 | 1,033 |
Notes payable, discount & issuance costs | $ 938 | $ 1,033 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 12,116,156 | 12,297,954 |
Common stock, shares outstanding | 12,116,156 | 12,297,954 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenues | $ 5,576 | $ 7,214 |
Cost of revenues | 1,283 | 2,113 |
Gross profit | 4,293 | 5,101 |
Operating expenses: | ||
Selling and marketing | 1,793 | 2,370 |
Research and development | 2,497 | 3,923 |
General and administrative | 2,189 | 2,486 |
Restructuring expense | 392 | |
Total operating expenses | 6,871 | 8,779 |
Operating loss | (2,578) | (3,678) |
Other expense: | ||
Change in fair value of warrant liability | 708 | |
Interest income (expense), net | (344) | 1 |
Other expense | (10) | (3) |
Loss before provision for income taxes | (2,224) | (3,680) |
Provision for income tax expense | 8 | 26 |
Net loss | (2,232) | (3,706) |
Other comprehensive income, before tax: | ||
Unrealized holding gains on available-for-sale securities | 2 | |
Other comprehensive income, net of tax | 2 | |
Comprehensive loss | $ (2,232) | $ (3,704) |
Net loss per share: | ||
Basic and diluted | $ (0.18) | $ (0.32) |
Weighted average shares outstanding: | ||
Basic and diluted | 12,163 | 11,524 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Comprehensive Deficit [Member] |
BALANCE at Dec. 31, 2016 | $ 2,504 | $ 12 | $ 227,889 | $ (225,397) |
BALANCE, Shares at Dec. 31, 2016 | 12,297,954 | 12,298,000 | ||
Non-cash compensation recognized on stock options and ESPP | $ 13 | 13 | ||
Restricted stock grants, net of cancellations | 433 | 433 | ||
Restricted stock grants, net of cancellations, shares | (129,000) | |||
Cancellation of shares for payment of withholding tax | (72) | (72) | ||
Cancellation of shares for payment of withholding tax, shares | (55,000) | |||
Employee stock purchase plan | 2 | 2 | ||
Employee stock purchase plan, shares | 2,000 | |||
Comprehensive loss | (2,232) | (2,232) | ||
BALANCE at Mar. 31, 2017 | $ 648 | $ 12 | $ 228,265 | $ (227,629) |
BALANCE, Shares at Mar. 31, 2017 | 12,116,156 | 12,116,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities: | ||
Net loss | $ (2,232) | $ (3,706) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 234 | 426 |
Amortization of debt discounts and financing issuance costs | 190 | |
Change in fair value of warrant liability | (708) | |
Provision for doubtful accounts and other adjustments to accounts receivable | 74 | |
Provision for excess and obsolete inventory | 3 | |
Loss on disposal of fixed assets | 2 | |
Non-cash compensation related to stock options, ESPP and restricted stock | 446 | 361 |
Change in operating accounts: | ||
Accounts receivable | 183 | 2,686 |
Inventories | (1) | 9 |
Prepaid expenses and other assets | 209 | (208) |
Accounts payable and accrued liabilities | (695) | 17 |
Deferred revenue | 586 | 667 |
Net cash provided by (used in) operating activities | (1,714) | 257 |
Investing activities: | ||
Capital expenditures | (13) | (86) |
Proceeds from the sale of short-term investments | 2,401 | |
Net cash provided by (used in) investing activities | (13) | 2,315 |
Financing activities: | ||
Cash received from stock sale for employee stock purchase plan | 2 | 7 |
Cash received from related-party notes payable | 2,000 | |
Net cash provided by financing activities | 2,002 | 7 |
Net increase in cash and cash equivalents | 275 | 2,579 |
Cash and cash equivalents, beginning of period | 2,229 | 8,819 |
Cash and cash equivalents, end of period | 2,504 | 11,398 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | 2 | $ 21 |
Cash paid for interest expense | $ 120 |
The Company
The Company | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company | 1. The Company Smith Micro Software, Inc. (“Smith Micro,” “Company,” “we,” “us,” and “or”) develops software to simplify and enhance the mobile experience, providing solutions to leading wireless service providers, device manufacturers, and enterprise businesses around the world. From optimizing wireless networks to uncovering customer experience insights, and from streamlining Wi-Fi access to ensuring family safety, our solutions enrich connected lifestyles, while creating new opportunities to engage consumers via smartphones. Our portfolio also includes a wide range of products for creating, sharing, and monetizing rich content, such as visual messaging, video streaming, and 2D/3D graphics applications. With this as a focus, it is Smith Micro’s mission to help our customers thrive in a connected world. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The accompanying interim consolidated balance sheet and statement of stockholders’ equity as of March 31, 2017, and the related consolidated statements of operations and comprehensive loss and cash flows for the three months ended March 31, 2017 and 2016, are unaudited. The unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted. In the opinion of management, the accompanying unaudited consolidated financial statements for the periods presented reflect all adjustments, which are normal and recurring, necessary to fairly state the financial position, results of operations and cash flows. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 10, 2017. Intercompany balances and transactions have been eliminated in consolidation. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2017. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements not yet Adopted | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements not yet Adopted | 3. Recently Issued Accounting Pronouncements not yet Adopted In February 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles-Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In March 2016, the FASB issued final guidance in ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Topic 825-10) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Going Concern Evaluation
Going Concern Evaluation | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Going Concern Evaluation | 4. Going Concern Evaluation In connection with preparing consolidated financial statements for the three months ended March 31, 2017, management evaluated whether there were conditions and events, considered in the aggregate, that raised substantial doubt about the Company’s ability to continue as a going concern within one year from the date that the financial statements are issued. The Company considered the following: • Operating losses for eight consecutive quarters. • Negative cash flow from operating activities for four consecutive quarters. • Depressed stock price resulting in being non-compliant with NASDAQ listing rules to maintain a stock price of $1.00/share. • Stockholders’ equity being less than $2.5 million at March 31, 2017 resulting in being non-compliant with NASDAQ listing rules. Ordinarily, conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern relate to the entity’s ability to meet its obligations as they become due. The Company evaluated its ability to meet its obligations as they become due within one year from the date that the financial statements are issued by considering the following: • The Company raised $4.0 million of debt financing during the year ended December 31, 2016. • The Company has been able to raise capital from short-term loans from its Board members. • As a result of the Company’s restructuring that was implemented during the three months ended December 31, 2016, and again during the three months ended March 31, 2017, the Company’s cost structure is now in line with its current baseline revenue projections going forward. See Footnote 6 below for additional details regarding restructuring. Management believes that the Company will generate enough cash from operations to satisfy its obligations for the next twelve months. The Company will take the following actions, if it starts to trend unfavorable to its internal profitability and cash flow projections, in order to mitigate conditions or events that would raise substantial doubt about its ability to continue as a going concern: • Raise additional capital through short-term loans. • Implement additional restructuring and cost reductions. • Raise additional capital through a private placement. • Secure a commercial bank line of credit. • Dispose of one or more product lines. • Sell or license intellectual property. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 5. Restructuring 2017 Restructuring In the first quarter of fiscal 2017, the Board of Directors reviewed an additional restructuring plan intended to further streamline and flatten the Company’s organization, reduce overall headcount by approximately 16%, and reduce its overall cost structure by another $0.9 - $1.0 million per quarter. The restructuring plan resulted in special charges totaling $0.4 million recorded during the three-month period ending March 31, 2017. These charges were primarily related to severance costs and included $0.2 2016 Restructuring In the fourth quarter of fiscal 2016, the Board of Directors approved a plan of restructuring intended to streamline and flatten the Company’s organization, reduce overall headcount by approximately 30%, and reduce its overall cost structure by approximately $2.5 million per quarter. The restructuring plan resulted in special charges totaling $0.3 million recorded during the three-month period ended December 31, 2016. These charges were primarily related to severance costs and were all paid out by December 31, 2016. 2014 Restructuring On May 6, 2014, the Board of Directors approved a plan of restructuring intended to streamline and flatten the Company’s organization, reduce overall headcount by approximately 20%, and reduce its overall cost structure by approximately $2.0 million per quarter. The restructuring plan resulted in special charges totaling $1.8 million recorded during the three-month period ended June 30, 2014. These charges were for non-cash stock-based compensation expense of $1.3 million, severance costs for affected employees of $0.4 million, and other related costs of $0.1 million. 2013 Restructuring On July 25, 2013, the Board of Directors approved a plan of restructuring intended to bring the Company’s operating expenses better in line with revenues. The restructuring plan involved a realignment of organizational structures, facility consolidations/closures, and headcount reductions of approximately 26% of the Company’s worldwide workforce resulting in annualized savings of approximately $16.0 million. The restructuring plan resulted in special charges totaling $5.6 million recorded in the year ended December 31, 2013. These charges were for lease/rental terminations of $3.3 million, severance costs for affected employees of $1.1 million, equipment, and improvements write-offs as a result of our lease/rental terminations of $1.0 million and other related costs of $0.2 million. In the year ended December 31, 2014, we increased the reserve by $0.6 million due to changes in our assumptions on future sublease income on our lease terminations of $0.8 million, partially offset by adjustments to our one-time employee termination benefits. Following is the activity in our restructuring liability for the three months ended March 31, 2017 (in thousands): December 31, 2016 March 31, 2017 Balance Provision-net Usage Balance Lease/rental terminations $ 1,786 $ (3 ) $ (91 ) $ 1,692 One-time employee termination benefits 65 483 (364 ) 184 Datacenter consolidation, other 109 (88 ) (21 ) — Total $ 1,960 $ 392 $ (476 ) $ 1,876 Of the total $1.9 million balance, $0.5 million is reported in Accrued liabilities and $1.4 million is reported in Deferred rent and other long-term liabilities on the balance sheet. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 6. Net Loss Per Share The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share On August 15, 2016, the Company filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware for the purpose of effecting a reverse stock split (the “Reverse Split”) of the outstanding shares of the Company’s common stock at a ratio of one (1) share for every four (4) shares outstanding, so that every four (4) outstanding shares of common stock before the Reverse Split represents one (1) share of common stock after the Reverse Split. Proportionate adjustments were made to: (i) the aggregate number of shares of Common Stock available for equity-based awards to be granted in the future under our 2015 Omnibus Equity Incentive Plan; (ii) the number of shares that would be owned upon vesting of restricted stock awards and stock options which are outstanding under our 2015 Omnibus Equity Incentive Plan and 2005 Stock Option Plan, and the exercise price of any outstanding stock options, and (iii) the number of shares of Common Stock available for purchase under our Preferred Shares Rights Agreement, dated October 16, 2015, between us and Computershare Trust Company, N.A., as rights agent. We have a total of 100,000,000 authorized shares of common stock which remained unchanged by the reverse stock split. The Reverse Split, which was approved by the Company’s stockholders at the special meeting held on August 15, 2016, and was effective on August 17, 2016. The Company adjusted shareholders' equity to reflect the reverse stock split by reclassifying an amount equal to the par value of the additional shares arising from the split from common stock to the Additional Paid-in Capital during the third quarter of fiscal 2016, resulting in no net impact to shareholders' equity on our consolidated balance sheets. Fractional shares were rounded down to the nearest whole share. Stockholders received cash in lieu of such fractional shares. All information presented herein has been retrospectively adjusted to reflect the reverse stock split as if it took place as of the earliest period presented. Three Months Ended March 31, 2017 2016 (unaudited, in thousands, except per share amounts) Numerator: Net loss available to common stockholders $ (2,232 ) $ (3,706 ) Denominator: Weighted average shares outstanding - basic 12,163 11,524 Potential common shares - options (treasury stock method) — — Weighted average shares outstanding - diluted 12,163 11,524 Shares excluded (anti-dilutive) — — Shares excluded due to an exercise price greater than weighted average stock price for the period 1,908 401 Net loss per common share: Basic $ (0.18 ) $ (0.32 ) Diluted $ (0.18 ) $ (0.32 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation Stock Plans During the three months ended March 31, 2017, the Company granted 18,750 shares of restricted stock with a grant date fair value of $1.25 per share. These costs will be amortized ratably over a period of 12 months. As of March 31, 2017, there were 1.7 million shares available for future grants under the 2015 Omnibus Equity Incentive Plan. Employee Stock Purchase Plan The Company’s most recent six-month offering period ended March 31, 2017 and resulted in 2,002 shares being purchased/granted at a fair value of $0.79 per share. The next six-month offering period began on April 1, 2017 and will end on September 30, 2017. These shares will have a fair value of $0.77 per share. Stock Compensation The Company accounts for all stock-based payment awards made to employees and directors based on their fair values which is recognized as compensation expense over the vesting period using the straight-line method over the requisite service period for each award as required by FASB ASC Topic No. 718, Compensation-Stock Compensation Stock-based non-cash compensation expense related to stock options, restricted stock grants and the employee stock purchase plan were recorded in the financial statements as follows (in thousands): Three Months Ended March 31, 2017 2016 (unaudited) Cost of revenues $ — $ 2 Selling and marketing 3 70 Research and development 79 121 General and administrative 137 168 Restructuring expense 227 — Total non-cash stock compensation expense $ 446 $ 361 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements The Company measures and discloses fair value measurements as required by FASB ASC Topic No. 820, Fair Value Measurements and Disclosures Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the FASB establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: • Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. • Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As required by FASB ASC Topic No. 820, we measure our cash and cash equivalents at fair value. Our cash equivalents are classified within Level 1 by using quoted market prices utilizing market observable inputs. As required by FASB ASC Topic No. 820, we measure our warrant liability at fair value. Our warrant liability is classified within Level 3 as some of the inputs to our valuation model are either not observable quoted prices or are not derived principally from or corroborated by observable market data by correlation or other means. As required by FASB ASC Topic No. 820, we utilize quoted market prices to estimate the fair value of our fixed rate debt, when available. If quoted market prices are not available, we calculate the fair value of our fixed rate debt based on a currently available market rate, assuming the loans are outstanding through maturity and considering the collateral. In determining the current market rate for fixed rate debt, a market spread is added to the quoted yields on federal government treasury securities with similar terms to the debt. |
Debt and Fair Value of Financia
Debt and Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Debt and Fair Value of Financial Instruments | 9. Debt and Fair Value of Financial Instruments The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic No. 480, Distinguishing Liabilities From Equity Derivatives and Hedging At March 31, 2017 and December 31, 2016, the carrying value and the aggregate fair value of the Company’s warrant liability and long-term debt were as follows (in thousands): As of March 31, 2017 As of December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities: Warrant liability, net $ 502 $ 502 $ 1,210 $ 1,210 Long-term debt, net $ 2,124 $ 2,124 $ 1,934 $ 1,934 The warrants were accounted for as liabilities, with changes in the fair value included in net loss for the respective periods. Because some of the inputs to our valuation model were either not observable nor derived principally from or corroborated by observable market data by correlation or other means, the warrant liability is classified as a Level 3 in the fair value hierarchy. Our stock price can be volatile and there could be material fluctuations in the value of the warrants in future periods. A roll forward of our warrant liability classified as Level 3 and measured at fair value on a recurring basis is as follows (in thousands): Balance, December 31, 2016 (audited) $ 1,210 Change in fair value of warrant liability (708 ) Balance, March 31, 2017 (unaudited) $ 502 Warrant Liability On September 2, 2016, we entered into a Note and Warrant Purchase Agreement with Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith, pursuant to which the Company issued and sold to the Investors in a private placement senior subordinated promissory notes in the aggregate principal amount of $4,000,000 and five-year warrants to purchase an aggregate of 1,700,000 shares of the Company’s common stock at an exercise price of $2.74 per share that expire five years from the date of issuance. The Company completed the transactions contemplated by the Purchase Agreement and issued the Notes and Warrants on September 6, 2016. We assessed the warrants and concluded that they should be recorded as a liability. The initial fair value of the warrant liability associated with the Note and Warrant Purchase Agreement was $2.1 million, and the fair value has decreased to $ 0.5 million as of March 31, 2017. All changes in the fair value of warrants will be recognized in our consolidated statements of operations until they are either exercised or expire. The warrants are not traded in an active securities market and, as such, the estimated fair value as of March 31, 2017 was determined by using an option pricing model (Black-Scholes) with the following assumptions: As of March 31, 2017 Expected term 4.42 Common stock market price $ 0.93 Risk-free interest rate 2.01 % Expected volatility 70.8 % Resulting fair value (per warrant) $ 0.30 Expected volatility is based on historical volatility. Historical volatility was computed using monthly pricing observations for recent periods that correspond to the expected term of the warrants. We believe this method produces an estimate that is representative of our expectations of future volatility over the expected term of these warrants. We currently have no reason to believe future volatility over the expected remaining life of these warrants is likely to differ materially from historical volatility. The expected life is based on the remaining contractual term of the warrants. The risk-free interest rate is the U.S. Treasury bond rate as of the valuation date. Short-Term Debt On March 31, 2017, the Company entered into a short-term secured borrowing arrangement with Steven L. and Monique P. Elfman (“Elfman”) pursuant to which Elfman loaned to the Company $1,000,000 and the Company issued to Elfman a Secured Promissory Note (the “Note”) bearing interest at the rate of 18% per annum. The Note is due on or before June 23, 2017 and is secured by the Company’s accounts receivable and certain other assets. Mr. Elfman is a director of the Company. On February 7, 2017, the Company entered into a short-term secured borrowing arrangement with William W. and Dieva L. Smith (“Smith”) and on February 8, 2017 entered into a short-term secured borrowing arrangement with Steven L. and Monique P. Elfman (“Elfman”) pursuant to which Smith and Elfman each loaned to the Company $1,000,000 and the Company issued to each of them a Secured Promissory Note (the “Notes”) bearing interest at the rate of 18% per annum. The Notes were due on March 24, 2017 and are secured by the Company’s accounts receivable and certain other assets. Messrs. Smith and Elfman are each directors of the Company, and Mr. Smith is the Chairman and Chief Executive Officer of the Company. Elfman’s Note was paid when due. On March 25, 2017, the Company entered into an Amendment to the Long-Term Debt At March 31, 2017, the aggregate fair value and the carrying value of the Company’s long-term debt was as follows (in thousands): As of March 31, 2017 As of December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt - related party $ 1,062 $ 1,062 $ 967 $ 967 Long-term debt 1,062 1,062 967 967 Total long-term debt $ 2,124 $ 2,124 $ 1,934 $ 1,934 The carrying value of $2.1 million and $1.9 million are net of debt discount of $1.7 million and $1.9 million and debt issuance costs of $0.2 million and $0.2 million as of March 31, 2017 and December 31, 2016, respectively. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 10. Cash and Cash Equivalents Cash and cash equivalents are primarily held in two financial institutions and are uninsured except for the minimum Federal Deposit Insurance Corporation (“FDIC”) coverage and have original maturity dates of three months or less. As of March 31, 2017, and December 31, 2016, bank balances totaling approximately $2.2 million and $2.1 million, respectively, were uninsured. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | 11. Accounts Receivable The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses and those losses have been within management’s estimates. Allowances for product returns are included in other adjustments to accounts receivable on the consolidated balance sheets. Product returns are estimated based on historical experience and management estimations. The Company is utilizing the accounts receivable balances to secure the related party short term notes payable. |
Impairment or Disposal of Long
Impairment or Disposal of Long Lived Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Impairment or Disposal of Long Lived Assets | 12. Impairment or Disposal of Long Lived Assets Long-lived assets to be held are reviewed for events or changes in circumstances which indicate that their carrying value may not be recoverable. They are tested for recoverability using undiscounted cash flows to determine whether or not impairment to such value has occurred as required by FASB ASC Topic No. 360, Property, Plant, and Equipment |
Equipment and Improvements
Equipment and Improvements | 3 Months Ended |
Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Equipment and Improvements | 13. Equipment and Improvements Equipment and improvements are stated at cost. Depreciation is computed using the straight-line method based on the estimated useful lives of the assets, generally ranging from three to seven years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 14. Goodwill In accordance with FASB ASC Topic No. 350, Intangibles-Goodwill and Other |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 15. Intangible Assets The following table sets forth our acquired intangible assets by major asset class as of March 31, 2017 and December 31, 2016 (in thousands except for useful life data): March 31, 2017 December 31, 2016 Useful life Accumulated Net Accumulated Net book value Impairment Net (years) Gross amortization book value Gross amortization before impairment charge book value Purchased technology 5-6 $ 265 $ (43 ) $ 222 $ 265 $ (32 ) $ 233 $ — $ 233 Customer relationships 3-6 528 (132 ) 396 999 (147 ) 852 (411 ) 441 Trademarks/trade names 2 38 (14 ) 24 38 (9 ) 29 — 29 Non-compete 3 51 (13 ) 38 51 (9 ) 42 — 42 Total $ 882 $ (202 ) $ 680 $ 1,353 $ (197 ) $ 1,156 $ (411 ) $ 745 Intangible assets amortization expense was $0.1 million for the three months ended March 31, 2017, respectively, and $0 for the three months ended March 31, 2016, respectively. Future amortization expense related to intangible assets as of March 31, 2017 are as follows (in thousands): Year Ending December 31, 2017 - 9 months remaining $ 194 2018 249 2019 143 2020 46 2021 40 Beyond 8 Total $ 680 |
Segment, Customer Concentration
Segment, Customer Concentration and Geographical Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment, Customer Concentration and Geographical Information | 16. Segment, Customer Concentration and Geographical Information Segment Information Public companies are required to report financial and descriptive information about their reportable operating segments as required by FASB ASC Topic No. 280, Segment Reporting The Company does not separately allocate operating expenses to these business units, nor does it allocate specific assets. Therefore, business unit information reported includes only revenues. The following table shows the revenues generated by each business unit (in thousands): Three Months Ended March 31, 2017 2016 (unaudited) Wireless $ 4,359 $ 5,973 Graphics 1,217 1,241 Total revenues $ 5,576 $ 7,214 Customer Concentration Information A summary of the Company’s customers that represent 10% or more of the Company’s net revenues is as follows: Three Months Ended March 31, 2017 2016 Wireless: Sprint (& affiliates) 61.8 % 65.0 % Graphics: FastSpring 13.9 % 13.6 % The two customers listed above comprised 75% and 84% our accounts receivable as of March 31, 2017 and 2016, respectively. Geographical Information During the three months ended March 31, 2017 and 2016, the Company operated in three geographic locations; the Americas, EMEA (Europe, the Middle East, and Africa), and Asia Pacific. Revenues, attributed to the geographic location of the customer’s bill-to address, were as follows (in thousands): Three Months Ended March 31, 2017 2016 (unaudited) Americas $ 5,474 $ 7,142 EMEA 49 62 Asia Pacific 53 10 Total revenues $ 5,576 $ 7,214 The Company does not separately allocate specific assets to these geographic locations. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. Related-Party Transactions On March 31, 2017, the Company entered into a short-term secured borrowing arrangement with Steven L. and Monique P. Elfman (“Elfman”) pursuant to which Elfman loaned to the Company $1,000,000 and the Company issued to Elfman a Secured Promissory Note (the “Note”) bearing interest at the rate of 18% per annum. The Note is due on or before June 23, 2017 and is secured by the Company’s accounts receivable and certain other assets. Mr. Elfman is a director of the Company. On February 7, 2017, the Company entered into a short-term secured borrowing arrangement with William W. and Dieva L. Smith (“Smith”) and on February 8, 2017 entered into a short-term secured borrowing arrangement with Steven L. and Monique P. Elfman (“Elfman”) pursuant to which Smith and Elfman each loaned to the Company $1,000,000 and the Company issued to each of them a Secured Promissory Note (the “Notes”) bearing interest at the rate of 18% per annum. The Notes were due on March 24, 2017 and are secured by the Company’s accounts receivable and certain other assets. Messrs. Smith and Elfman are each directors of the Company, and Mr. Smith is the Chairman and Chief Executive Officer of the Company. Elman’s Note was paid when due. On March 25, 2017, the Company entered into an Amendment to the Note issued to Smith that extended the Maturity Date of the Note to June 26, 2017. On September 2, 2016, the Company entered into a Note and Warrant Purchase Agreement (the “Purchase Agreement”) with William W. and Dieva L. Smith (collectively, the “Investors”), pursuant to which the Company issued and sold to the Investors in a private placement senior subordinated promissory notes in the aggregate principal amount of $2,000,000 (the “Notes”) and five-year warrants (the “Warrants”) to purchase an aggregate of 850,000 shares of the Company’s common stock at an exercise price of $2.74 per share. The Company completed the transactions contemplated by the Purchase Agreement and issued the Notes and Warrants on September 6, 2016. William W. Smith, Jr. is the Company’s Chairman of the Board, President and Chief Executive Officer. Refer to Note 19 Long Term Debt below for additional details. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies Leases The Company leases its buildings under operating leases that expire on various dates through 2022. Future minimum annual lease payments under such leases as of March 31, 2017 are as follows (in thousands): Year Ending December 31, Operating 2017-9 months remaining $ 1,779 2018 2,396 2019 2,005 2020 1,707 2021 1,710 2022 33 Total $ 9,630 As of March 31, 2017, $3.8 million of the remaining lease commitments expense has been accrued as part of the 2013 Restructuring Plan, partially offset by future estimated sublease income of $2.0 million. Rent expense under operating leases was $0.4 million and $0.3 million for the three months ended March 31, 2017 and 2016, respectively. As a condition of our Pittsburgh lease that was signed in November 2010, the landlord agreed to incentives of $40.00 per square foot, or a total of $2.2 million, for improvements to the space. These costs have been included in deferred rent in our long-term liabilities and are being amortized over the ten-year lease term. Pennsylvania Opportunity Grant Program On September 19, 2016, we entered into a Settlement and Release Agreement with the Commonwealth of Pennsylvania, acting by and through the Department of Community and Economic Development (“DCED”) to repay $0.3 million of the original $1.0 million grant. Per the agreement, the total amount due of $0.3 million is at 0% interest and is payable in twenty equal quarterly installments commencing on January 31, 2017 and ending on October 31, 2021. The balances were $0.3 million as of March 31, 2017 and December 31, 2016 and are reported in Accrued liabilities and Deferred rent and other long-term liabilities on the balance sheet. On January 31, 2017, the Company paid the first installment of $17,133. Litigation The Company may become involved in various legal proceedings arising from its business activities. While management does not believe the ultimate disposition of these matters will have a material adverse impact on the Company’s consolidated results of operations, cash flows, or financial position, litigation is inherently unpredictable, and depending on the nature and timing of these proceedings, an unfavorable resolution could materially affect the Company’s future consolidated results of operations, cash flows, or financial position in a particular period. Other Contingent Contractual Obligations During its normal course of business, the Company has made certain indemnities, commitments, and guarantees under which it may be required to make payments in relation to certain transactions. These include: intellectual property indemnities to the Company’s customers and licensees in connection with the use, sale, and/or license of Company products; indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease; indemnities to vendors and service providers pertaining to claims based on the negligence or willful misconduct of the Company; indemnities involving the accuracy of representations and warranties in certain contracts; and, indemnities to directors and officers of the Company to the maximum extent permitted under the laws of the State of Delaware. In addition, the Company has made contractual commitments to employees providing for severance payments upon the occurrence of certain prescribed events. The Company may also issue a guarantee in the form of a standby letter of credit as security for contingent liabilities under certain customer contracts. The duration of these indemnities, commitments, and guarantees varies, and in certain cases, may be indefinite. The majority of these indemnities, commitments, and guarantees may not provide for any limitation of the maximum potential for future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities, commitments, and guarantees in the accompanying consolidated balance sheets. |
Long Term Debt
Long Term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long Term Debt | 19. Long Term Debt On September 2, 2016, the Company entered into a Note and Warrant Purchase Agreement (the “Purchase Agreement”) with Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith (collectively, the “Investors”), pursuant to which the Company issued and sold to the Investors in a private placement senior subordinated promissory notes in the aggregate principal amount of $4,000,000 (the “Notes”) and five-year warrants (the “Warrants”) to purchase an aggregate of 1,700,000 shares of the Company’s common stock (the “Warrant Shares”) at an exercise price of $2.74 per share. The Company completed the transactions contemplated by the Purchase Agreement and issued the Notes and Warrants on September 6, 2016. The Notes mature three years following the issuance date, or September 6, 2019, and bear interest at the rate of 10% of the outstanding principal balance of the Notes, payable quarterly in cash or shares of the Company’s common stock at a conversion price equal to the greater of (i) the five-day volume weighted average closing price of the common stock on the Nasdaq Stock Market, measured on the third trading day prior to the date that interest is due, or, (ii) the minimum price so that payment of interest for such installment in the form of common stock shall not constitute “equity compensation” to an officer, director, employee or consultant of the Company for purposes of Rule 5635(c) of the Nasdaq Stock Market or a private placement that, combined with the other securities issued or issuable under the Purchase Agreement, would require shareholder approval by the Company under Rule 5635(d) of the Nasdaq Stock Market. The Notes are subordinate and junior in right of payment to the prior payment in full of all claims, whether now existing or arising in the future, of holders of senior debt of the Company, as described in the Notes. Under the Notes, if an Acceleration Event occurs and shall be continuing, any Holder of the Notes may by written notice delivered to the Secretary of the Company within ninety days after any occurrence of such Acceleration Event (an “Acceleration Notice”) declare the entire unpaid principal balance of the Note, together with all interest accrued, due and payable without presentment, demand, protest, or notice (except for the delivery of an Acceleration Notice). For purposes of the Notes, an Acceleration Event shall occur if, while the Notes are outstanding, William W. Smith, Jr. (i) is not nominated for re-election as a director of the Company at the normal expiration of his term as director, (ii) is terminated or removed as Chairman of the Board of Directors of the Company, (iii) is terminated or removed as Chief Executive Officer of the Company, or (iv) dies or becomes permanently disabled. An Acceleration Event shall not occur if Mr. Smith consents to any of the events referenced above or voluntarily resigns or retires from any of the positions listed. We allocated the aggregate proceeds of the senior subordinated promissory notes payable between the warrants and the debt obligations based on their fair values. In accordance with FASB ASC Topics 480 and 815, the warrants were recorded as a liability and are marked to market at each reporting end. The fair value of the warrants was calculated utilizing the Black-Scholes option pricing model. The Black-Scholes option-pricing model incorporates various and highly sensitive assumptions, including expected volatility, expected term, and risk-free interest rates. The expected volatility is based on the historical volatility of the Company’s common stock over the most recent period. The risk-free interest rate for the period within the contractual life of the warrant is based on the U.S. Treasury yield in effect at the time of grant. We are amortizing the fair value of the warrants as a discount of $2.1 million over the term of the loan using the effective interest method, with an effective interest rate of 28.4%. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 20. Income Taxes We account for income taxes as required by FASB ASC Topic No. 740, Income Taxes The Company assesses whether a valuation allowance should be recorded against its deferred tax assets based on the consideration of all available evidence, using a “more likely than not” realization standard. The four sources of taxable income that must be considered in determining whether deferred tax assets will be realized are: (1) future reversals of existing taxable temporary differences (i.e., offset of gross deferred tax liabilities against gross deferred tax assets); (2) taxable income in prior carryback years, if carryback is permitted under the applicable tax law; (3) tax planning strategies; and (4) future taxable income exclusive of reversing temporary differences and carryforwards. In assessing whether a valuation allowance is required, significant weight is to be given to evidence that can be objectively verified. A significant factor in the Company’s assessment is that the Company has been in a five-year historical cumulative loss as of the end of fiscal year 2016. These facts, combined with uncertain near-term market and economic conditions, reduced the Company’s ability to rely on projections of future taxable income in assessing the realizability of its deferred tax assets. After a review of the four sources of taxable income as of December 31, 2016 (as described above), and after consideration of the Company’s continuing cumulative loss position as of December 31, 2016, the Company will continue to reserve its US-based deferred tax amounts, which total $76.3 million, as of March 31, 2017. The Company is subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. Federal income tax returns of the Company are subject to IRS examination for the 2012 – 2015 tax years. State income tax returns are subject to examination for a period of three to four years after filing. The outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. We may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to our consolidated financial results. It is the Company’s policy to classify any interest and/or penalties in the consolidated financial statements as a component of income tax expense. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events The Company evaluates and discloses subsequent events as required by FASB ASC Topic No. 855, Subsequent Events Subsequent events have been evaluated as of the date of this filing and no further disclosures were required. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim consolidated balance sheet and statement of stockholders’ equity as of March 31, 2017, and the related consolidated statements of operations and comprehensive loss and cash flows for the three months ended March 31, 2017 and 2016, are unaudited. The unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted. In the opinion of management, the accompanying unaudited consolidated financial statements for the periods presented reflect all adjustments, which are normal and recurring, necessary to fairly state the financial position, results of operations and cash flows. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 10, 2017. Intercompany balances and transactions have been eliminated in consolidation. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2017. |
Recently Issued Accounting Pronouncements not yet Adopted | In February 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles-Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In March 2016, the FASB issued final guidance in ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Topic 825-10) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Going Concern Evaluation | Going Concern Evaluation In connection with preparing consolidated financial statements for the three months ended March 31, 2017, management evaluated whether there were conditions and events, considered in the aggregate, that raised substantial doubt about the Company’s ability to continue as a going concern within one year from the date that the financial statements are issued. The Company considered the following: • Operating losses for eight consecutive quarters. • Negative cash flow from operating activities for four consecutive quarters. • Depressed stock price resulting in being non-compliant with NASDAQ listing rules to maintain a stock price of $1.00/share. • Stockholders’ equity being less than $2.5 million at March 31, 2017 resulting in being non-compliant with NASDAQ listing rules. Ordinarily, conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern relate to the entity’s ability to meet its obligations as they become due. The Company evaluated its ability to meet its obligations as they become due within one year from the date that the financial statements are issued by considering the following: • The Company raised $4.0 million of debt financing during the year ended December 31, 2016. • The Company has been able to raise capital from short-term loans from its Board members. • As a result of the Company’s restructuring that was implemented during the three months ended December 31, 2016, and again during the three months ended March 31, 2017, the Company’s cost structure is now in line with its current baseline revenue projections going forward. See Footnote 6 below for additional details regarding restructuring. Management believes that the Company will generate enough cash from operations to satisfy its obligations for the next twelve months. The Company will take the following actions, if it starts to trend unfavorable to its internal profitability and cash flow projections, in order to mitigate conditions or events that would raise substantial doubt about its ability to continue as a going concern: • Raise additional capital through short-term loans. • Implement additional restructuring and cost reductions. • Raise additional capital through a private placement. • Secure a commercial bank line of credit. • Dispose of one or more product lines. • Sell or license intellectual property. |
Net Loss Per Share | Net Loss Per Share The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share On August 15, 2016, the Company filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware for the purpose of effecting a reverse stock split (the “Reverse Split”) of the outstanding shares of the Company’s common stock at a ratio of one (1) share for every four (4) shares outstanding, so that every four (4) outstanding shares of common stock before the Reverse Split represents one (1) share of common stock after the Reverse Split. Proportionate adjustments were made to: (i) the aggregate number of shares of Common Stock available for equity-based awards to be granted in the future under our 2015 Omnibus Equity Incentive Plan; (ii) the number of shares that would be owned upon vesting of restricted stock awards and stock options which are outstanding under our 2015 Omnibus Equity Incentive Plan and 2005 Stock Option Plan, and the exercise price of any outstanding stock options, and (iii) the number of shares of Common Stock available for purchase under our Preferred Shares Rights Agreement, dated October 16, 2015, between us and Computershare Trust Company, N.A., as rights agent. We have a total of 100,000,000 authorized shares of common stock which remained unchanged by the reverse stock split. The Reverse Split, which was approved by the Company’s stockholders at the special meeting held on August 15, 2016, and was effective on August 17, 2016. The Company adjusted shareholders' equity to reflect the reverse stock split by reclassifying an amount equal to the par value of the additional shares arising from the split from common stock to the Additional Paid-in Capital during the third quarter of fiscal 2016, resulting in no net impact to shareholders' equity on our consolidated balance sheets. Fractional shares were rounded down to the nearest whole share. Stockholders received cash in lieu of such fractional shares. All information presented herein has been retrospectively adjusted to reflect the reverse stock split as if it took place as of the earliest period presented. Three Months Ended March 31, 2017 2016 (unaudited, in thousands, except per share amounts) Numerator: Net loss available to common stockholders $ (2,232 ) $ (3,706 ) Denominator: Weighted average shares outstanding - basic 12,163 11,524 Potential common shares - options (treasury stock method) — — Weighted average shares outstanding - diluted 12,163 11,524 Shares excluded (anti-dilutive) — — Shares excluded due to an exercise price greater than weighted average stock price for the period 1,908 401 Net loss per common share: Basic $ (0.18 ) $ (0.32 ) Diluted $ (0.18 ) $ (0.32 ) |
Stock-Based Compensation | Stock Compensation The Company accounts for all stock-based payment awards made to employees and directors based on their fair values which is recognized as compensation expense over the vesting period using the straight-line method over the requisite service period for each award as required by FASB ASC Topic No. 718, Compensation-Stock Compensation |
Fair Value Measurements | Fair Value Measurements The Company measures and discloses fair value measurements as required by FASB ASC Topic No. 820, Fair Value Measurements and Disclosures Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the FASB establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: • Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. • Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As required by FASB ASC Topic No. 820, we measure our cash and cash equivalents at fair value. Our cash equivalents are classified within Level 1 by using quoted market prices utilizing market observable inputs. As required by FASB ASC Topic No. 820, we measure our warrant liability at fair value. Our warrant liability is classified within Level 3 as some of the inputs to our valuation model are either not observable quoted prices or are not derived principally from or corroborated by observable market data by correlation or other means. As required by FASB ASC Topic No. 820, we utilize quoted market prices to estimate the fair value of our fixed rate debt, when available. If quoted market prices are not available, we calculate the fair value of our fixed rate debt based on a currently available market rate, assuming the loans are outstanding through maturity and considering the collateral. In determining the current market rate for fixed rate debt, a market spread is added to the quoted yields on federal government treasury securities with similar terms to the debt. |
Cash and Cash Equivalents | 10. Cash and Cash Equivalents Cash and cash equivalents are primarily held in two financial institutions and are uninsured except for the minimum Federal Deposit Insurance Corporation (“FDIC”) coverage and have original maturity dates of three months or less. As of March 31, 2017, and December 31, 2016, bank balances totaling approximately $2.2 million and $2.1 million, respectively, were uninsured. |
Accounts Receivable | 11. Accounts Receivable The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses and those losses have been within management’s estimates. Allowances for product returns are included in other adjustments to accounts receivable on the consolidated balance sheets. Product returns are estimated based on historical experience and management estimations. The Company is utilizing the accounts receivable balances to secure the related party short term notes payable. |
Impairment or Disposal of Long Lived Assets | Long-lived assets to be held are reviewed for events or changes in circumstances which indicate that their carrying value may not be recoverable. They are tested for recoverability using undiscounted cash flows to determine whether or not impairment to such value has occurred as required by FASB ASC Topic No. 360, Property, Plant, and Equipment |
Equipment and Improvements | Equipment and Improvements Equipment and improvements are stated at cost. Depreciation is computed using the straight-line method based on the estimated useful lives of the assets, generally ranging from three to seven years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. |
Goodwill | Goodwill In accordance with FASB ASC Topic No. 350, Intangibles-Goodwill and Other |
Segment Information | Segment Information Public companies are required to report financial and descriptive information about their reportable operating segments as required by FASB ASC Topic No. 280, Segment Reporting |
Income Taxes | We account for income taxes as required by FASB ASC Topic No. 740, Income Taxes |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
2013 Restructuring [Member] | |
Activity in Restructuring Liability Account | Following is the activity in our restructuring liability for the three months ended March 31, 2017 (in thousands): December 31, 2016 March 31, 2017 Balance Provision-net Usage Balance Lease/rental terminations $ 1,786 $ (3 ) $ (91 ) $ 1,692 One-time employee termination benefits 65 483 (364 ) 184 Datacenter consolidation, other 109 (88 ) (21 ) — Total $ 1,960 $ 392 $ (476 ) $ 1,876 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Three Months Ended March 31, 2017 2016 (unaudited, in thousands, except per share amounts) Numerator: Net loss available to common stockholders $ (2,232 ) $ (3,706 ) Denominator: Weighted average shares outstanding - basic 12,163 11,524 Potential common shares - options (treasury stock method) — — Weighted average shares outstanding - diluted 12,163 11,524 Shares excluded (anti-dilutive) — — Shares excluded due to an exercise price greater than weighted average stock price for the period 1,908 401 Net loss per common share: Basic $ (0.18 ) $ (0.32 ) Diluted $ (0.18 ) $ (0.32 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Non-Cash Compensation Expenses | Stock-based non-cash compensation expense related to stock options, restricted stock grants and the employee stock purchase plan were recorded in the financial statements as follows (in thousands): Three Months Ended March 31, 2017 2016 (unaudited) Cost of revenues $ — $ 2 Selling and marketing 3 70 Research and development 79 121 General and administrative 137 168 Restructuring expense 227 — Total non-cash stock compensation expense $ 446 $ 361 |
Debt and Fair Value of Financ32
Debt and Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Aggregate Fair Value and Carrying Value of Warrant Liability and Long-Term Debt | At March 31, 2017 and December 31, 2016, the carrying value and the aggregate fair value of the Company’s warrant liability and long-term debt were as follows (in thousands): As of March 31, 2017 As of December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities: Warrant liability, net $ 502 $ 502 $ 1,210 $ 1,210 Long-term debt, net $ 2,124 $ 2,124 $ 1,934 $ 1,934 |
Schedule of Roll Forward of Warrant Liability Classified as Level 3 and Measured at Fair Value on a Recurring Basis | A roll forward of our warrant liability classified as Level 3 and measured at fair value on a recurring basis is as follows (in thousands): Balance, December 31, 2016 (audited) $ 1,210 Change in fair value of warrant liability (708 ) Balance, March 31, 2017 (unaudited) $ 502 |
Fair Value of Warrants Determined by Using Option Pricing Model | The warrants are not traded in an active securities market and, as such, the estimated fair value as of March 31, 2017 was determined by using an option pricing model (Black-Scholes) with the following assumptions: As of March 31, 2017 Expected term 4.42 Common stock market price $ 0.93 Risk-free interest rate 2.01 % Expected volatility 70.8 % Resulting fair value (per warrant) $ 0.30 |
Aggregate Fair Value and Carrying Value of Long-term Debt | At March 31, 2017, the aggregate fair value and the carrying value of the Company’s long-term debt was as follows (in thousands): As of March 31, 2017 As of December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt - related party $ 1,062 $ 1,062 $ 967 $ 967 Long-term debt 1,062 1,062 967 967 Total long-term debt $ 2,124 $ 2,124 $ 1,934 $ 1,934 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Intangible Assets by Major Asset Class | The following table sets forth our acquired intangible assets by major asset class as of March 31, 2017 and December 31, 2016 (in thousands except for useful life data): March 31, 2017 December 31, 2016 Useful life Accumulated Net Accumulated Net book value Impairment Net (years) Gross amortization book value Gross amortization before impairment charge book value Purchased technology 5-6 $ 265 $ (43 ) $ 222 $ 265 $ (32 ) $ 233 $ — $ 233 Customer relationships 3-6 528 (132 ) 396 999 (147 ) 852 (411 ) 441 Trademarks/trade names 2 38 (14 ) 24 38 (9 ) 29 — 29 Non-compete 3 51 (13 ) 38 51 (9 ) 42 — 42 Total $ 882 $ (202 ) $ 680 $ 1,353 $ (197 ) $ 1,156 $ (411 ) $ 745 |
Future Amortization Expense Related to Intangible Assets | Future amortization expense related to intangible assets as of March 31, 2017 are as follows (in thousands): Year Ending December 31, 2017 - 9 months remaining $ 194 2018 249 2019 143 2020 46 2021 40 Beyond 8 Total $ 680 |
Segment, Customer Concentrati34
Segment, Customer Concentration and Geographical Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenues Generated by Each Business Unit | The following table shows the revenues generated by each business unit (in thousands): Three Months Ended March 31, 2017 2016 (unaudited) Wireless $ 4,359 $ 5,973 Graphics 1,217 1,241 Total revenues $ 5,576 $ 7,214 |
Company's Customers that Represent 10% or More of Company's Net Revenues | A summary of the Company’s customers that represent 10% or more of the Company’s net revenues is as follows: Three Months Ended March 31, 2017 2016 Wireless: Sprint (& affiliates) 61.8 % 65.0 % Graphics: FastSpring 13.9 % 13.6 % |
Company Revenue in Different Geographic Locations | Revenues, attributed to the geographic location of the customer’s bill-to address, were as follows (in thousands): Three Months Ended March 31, 2017 2016 (unaudited) Americas $ 5,474 $ 7,142 EMEA 49 62 Asia Pacific 53 10 Total revenues $ 5,576 $ 7,214 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Company Lease of Buildings under Non-Cancellable Operating Leases | Future minimum annual lease payments under such leases as of March 31, 2017 are as follows (in thousands): Year Ending December 31, Operating 2017-9 months remaining $ 1,779 2018 2,396 2019 2,005 2020 1,707 2021 1,710 2022 33 Total $ 9,630 |
Going Concern Evaluation - Addi
Going Concern Evaluation - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Going Concern Evaluation [Line Items] | ||
Substantial doubt about going concern, management's evaluation | In connection with preparing consolidated financial statements for the three months ended March 31, 2017, management evaluated whether there were conditions and events, considered in the aggregate, that raised substantial doubt about the Company’s ability to continue as a going concern within one year from the date that the financial statements are issued. The Company considered the following: Operating losses for eight consecutive quarters. Negative cash flow from operating activities for four consecutive quarters. Depressed stock price resulting in being non-compliant with NASDAQ listing rules to maintain a stock price of $1.00/share. Stockholders’ equity being less than $2.5 million at March 31, 2017 resulting in being non-compliant with NASDAQ listing rules. Ordinarily, conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern relate to the entity’s ability to meet its obligations as they become due. The Company evaluated its ability to meet its obligations as they become due within one year from the date that the financial statements are issued by considering the following: The Company raised $4.0 million of debt financing during the year ended December 31, 2016. The Company has been able to raise capital from short-term loans from its Board members. As a result of the Company’s restructuring that was implemented during the three months ended December 31, 2016, and again during the three months ended March 31, 2017, the Company’s cost structure is now in line with its current baseline revenue projections going forward. See Footnote 6 below for additional details regarding restructuring. Management believes that the Company will generate enough cash from operations to satisfy its obligations for the next twelve months. | |
Number of consecutive period of operating losses | 24 months | |
Number of consecutive period of negative cash flows from operating activities | 12 months | |
Stock price | $ 1 | |
Stockholders’ equity | $ 648,000 | $ 2,504,000 |
Debt financing | $ 4,000,000 | |
Substantial doubt about going concern, management's plans, substantial doubt not alleviated | The Company will take the following actions if it starts to trend unfavorable to its internal profitability and cash flow projections, in order to mitigate conditions or events that would raise substantial doubt about its ability to continue as a going concern: Raise additional capital through short-term loans. Implement additional restructuring and cost reductions. Raise additional capital through a private placement. Secure a commercial bank line of credit. Dispose of one or more product lines. Sell or license intellectual property. | |
Maximum [Member] | ||
Going Concern Evaluation [Line Items] | ||
Stockholders’ equity | $ 2,500,000 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Thousands, $ / qtr in Millions | May 06, 2014$ / qtr | Jul. 25, 2013USD ($) | Mar. 31, 2017USD ($)$ / qtr | Dec. 31, 2016USD ($)$ / qtr | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
2017 Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reductions in company's worldwide workforce | 16.00% | ||||||
Special charges for restructuring plan | $ 400 | ||||||
Non-cash stock based compensation expense | $ 200 | ||||||
2017 Restructuring [Member] | Minimum [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction of overall cost structure | $ / qtr | 0.9 | ||||||
2017 Restructuring [Member] | Maximum [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction of overall cost structure | $ / qtr | 1 | ||||||
2016 Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reductions in company's worldwide workforce | 30.00% | ||||||
Special charges for restructuring plan | $ 300 | ||||||
Reduction of overall cost structure | $ / qtr | 2.5 | ||||||
2014 Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reductions in company's worldwide workforce | 20.00% | ||||||
Special charges for restructuring plan | $ 1,800 | ||||||
Reduction of overall cost structure | $ / qtr | 2 | ||||||
Non-cash stock based compensation expense | 1,300 | ||||||
Severance costs for affected employees | 400 | ||||||
Other restructuring related costs | $ 100 | ||||||
2013 Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reductions in company's worldwide workforce | 26.00% | ||||||
Special charges for restructuring plan | $ 5,600 | ||||||
Severance costs for affected employees | 1,100 | ||||||
Other restructuring related costs | 200 | ||||||
Annualized savings | $ 16,000 | ||||||
Lease/rental termination charges for restructuring | $ 800 | 3,300 | |||||
Equipment and improvements write-offs due to lease/rental terminations | $ 600 | $ 1,000 | |||||
Restructuring liability, total balance | $ 1,876 | $ 1,960 | |||||
Restructuring liability is reported in accrued liabilities | 500 | ||||||
Restructuring liability is reported in deferred rent and other long term liabilities | $ 1,400 |
Restructuring - Activity in Res
Restructuring - Activity in Restructuring Liability Accounts (Detail) - 2013 Restructuring [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | $ 1,960 |
Provision-net | 392 |
Usage | (476) |
Ending Balance | 1,876 |
Lease/Rental Terminations [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 1,786 |
Provision-net | (3) |
Usage | (91) |
Ending Balance | 1,692 |
One-Time Employee Termination Benefits [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 65 |
Provision-net | 483 |
Usage | (364) |
Ending Balance | 184 |
Datacenter Consolidation, Other [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 109 |
Provision-net | (88) |
Usage | $ (21) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) | Aug. 15, 2016shares | Mar. 31, 2017shares | Dec. 31, 2016shares |
Earnings Per Share [Abstract] | |||
Reverse stock split ratio | 0.25 | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Reverse stock split, effective date | Aug. 17, 2016 | ||
Reverse stock split, description | Common stock at a ratio of one (1) share for every four (4) shares outstanding, so that every four (4) outstanding shares of common stock before the Reverse Split represents one (1) share of common stock after the Reverse Split. |
Net Loss Per Share - Net Loss P
Net Loss Per Share - Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net loss available to common stockholders | $ (2,232) | $ (3,706) |
Denominator: | ||
Weighted average shares outstanding - basic | 12,163 | 11,524 |
Weighted average shares outstanding - diluted | 12,163 | 11,524 |
Shares excluded due to an exercise price greater than weighted average stock price for the period | 1,908 | 401 |
Net loss per common share: | ||
Basic | $ (0.18) | $ (0.32) |
Diluted | $ (0.18) | $ (0.32) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | |
Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee stock purchase plan (ESPP), shares purchased/granted | 2,000 | 2,002 | |
2015 Omnibus Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for future grants | 1,700,000 | 1,700,000 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock, granted | 18,750 | ||
Restricted stock vesting period | 12 months | ||
Restricted stock, grant date fair value | $ 1.25 | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee stock purchase plan, grant date fair value | $ 0.79 | ||
Employee Stock Purchase Plan [Member] | Scenario, Forecast [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee stock purchase plan, grant date fair value | $ 0.77 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Non-Cash Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | $ 446 | $ 361 |
Cost of Revenues [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | 2 | |
Selling and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | 3 | 70 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | 79 | 121 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | 137 | $ 168 |
Restructuring Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | $ 227 |
Debt and Fair Value of Financ43
Debt and Fair Value of Financial Instruments - Aggregate Fair Value and Carrying Value of Warrant Liability and Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 02, 2016 |
Fair Value of Warrant Liability and Long Term Debt [Line Items] | |||
Warrant liability, net | $ 502 | $ 2,100 | |
Carrying Amount [Member] | |||
Fair Value of Warrant Liability and Long Term Debt [Line Items] | |||
Warrant liability, net | 502 | $ 1,210 | |
Long-term debt, net | 2,124 | 1,934 | |
Fair Value [Member] | |||
Fair Value of Warrant Liability and Long Term Debt [Line Items] | |||
Warrant liability, net | 502 | 1,210 | |
Long-term debt, net | $ 2,124 | $ 1,934 |
Debt and Fair Value of Financ44
Debt and Fair Value of Financial Instruments - Schedule of Roll Forward of Warrant Liability Classified as Level 3 and Measured at Fair Value on a Recurring Basis (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Change in fair value of warrant liability | $ (708) |
Ending balance | 502 |
Fair Value, Measurements, Recurring [Member] | Basis of Fair Value Measurements, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Beginning balance | 1,210 |
Change in fair value of warrant liability | (708) |
Ending balance | $ 502 |
Debt and Fair Value of Financ45
Debt and Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | Mar. 31, 2017 | Feb. 08, 2017 | Feb. 07, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 02, 2016 |
Debt Instrument [Line Items] | ||||||
Warrant liability | $ 502,000 | $ 502,000 | $ 2,100,000 | |||
Proceeds from short term secured borrowing arrangement | $ 2,000,000 | |||||
Interest rate per annum | 10.00% | 10.00% | ||||
Debt discount | $ 1,700,000 | $ 1,700,000 | $ 1,900,000 | |||
Long-term debt, net, carrying amount | 2,124,000 | 2,124,000 | 1,900,000 | |||
Debt issuance costs | 200,000 | $ 200,000 | $ 200,000 | |||
Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith [Member] | Note and Warrant Purchase Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Purchase of warrants | 1,700,000 | |||||
Common stock exercise price | $ 2.74 | |||||
Warrants expiration period | 5 years | |||||
Notes and warrants issuance date | Sep. 6, 2016 | |||||
Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith [Member] | Senior Subordinated Notes [Member] | Note and Warrant Purchase Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 4,000,000 | |||||
Steven L. and Monique P. Elfman [Member] | Secured Promissory Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | $ 1,000,000 | ||||
Interest rate per annum | 18.00% | 18.00% | 18.00% | |||
Notes due date | Mar. 24, 2017 | |||||
Steven L. and Monique P. Elfman [Member] | Secured Promissory Note [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Notes due date | Jun. 23, 2017 | |||||
William W. and Dieva L. Smith [Member] | Secured Promissory Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | |||||
Interest rate per annum | 18.00% | |||||
Notes due date | Mar. 24, 2017 | |||||
William W. and Dieva L. Smith [Member] | Secured Promissory Note [Member] | Extended Maturity Date [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Notes due date | Jun. 26, 2017 | |||||
William W. and Dieva L. Smith [Member] | Note and Warrant Purchase Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Purchase of warrants | 850,000 | |||||
Common stock exercise price | $ 2.74 | |||||
Warrants expiration period | 5 years | |||||
Notes and warrants issuance date | Sep. 6, 2016 | |||||
William W. and Dieva L. Smith [Member] | Senior Subordinated Notes [Member] | Note and Warrant Purchase Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 2,000,000 |
Debt and Fair Value of Financ46
Debt and Fair Value of Financial Instruments - Fair Value of Warrants Determined by Using Option Pricing Model (Detail) | Mar. 31, 2017$ / shares |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Common stock market price | $ 1 |
Warrant Liability [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Expected term | 4 years 5 months 1 day |
Common stock market price | $ 0.93 |
Risk-free interest rate | 2.01% |
Expected volatility | 70.80% |
Resulting fair value (per warrant) | $ 0.30 |
Debt and Fair Value of Financ47
Debt and Fair Value of Financial Instruments - Aggregate Fair Value and Carrying Value of Long-term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt - related party | $ 1,062 | $ 967 |
Long-term debt | 1,062 | 967 |
Total long-term debt | 2,124 | 1,934 |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt - related party | 1,062 | 967 |
Long-term debt | 1,062 | 967 |
Total long-term debt | $ 2,124 | $ 1,934 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)Institution | Dec. 31, 2016USD ($) | |
Cash And Cash Equivalents [Abstract] | ||
Financial institutions to held securities | Institution | 2 | |
Cash and cash equivalents original maturity dates | Three months or less | |
Bank balances | $ | $ 2.2 | $ 2.1 |
Impairment or Disposal of Lon49
Impairment or Disposal of Long Lived Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | ||
Asset impairment charges | $ 0 | |
Customer Relationships Intangible Asset [Member] | ||
Property Plant And Equipment [Line Items] | ||
Asset impairment charges | $ 400,000 |
Equipment and Improvements - Ad
Equipment and Improvements - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 3 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 7 years |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment | $ 0 | $ 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Acquired Intangible Assets by Major Asset Class (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 882 | $ 1,353 |
Accumulated amortization | (202) | (197) |
Net book value before impairment | 1,156 | |
Impairment charge | (411) | |
Net book value | 680 | 745 |
Purchased Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 265 | 265 |
Accumulated amortization | (43) | (32) |
Net book value before impairment | 233 | |
Net book value | $ 222 | 233 |
Purchased Technology [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years | |
Purchased Technology [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 6 years | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 528 | 999 |
Accumulated amortization | (132) | (147) |
Net book value before impairment | 852 | |
Impairment charge | (411) | |
Net book value | $ 396 | 441 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 6 years | |
Trademarks/Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 2 years | |
Gross | $ 38 | 38 |
Accumulated amortization | (14) | (9) |
Net book value before impairment | 29 | |
Net book value | $ 24 | 29 |
Non-Compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | |
Gross | $ 51 | 51 |
Accumulated amortization | (13) | (9) |
Net book value before impairment | 42 | |
Net book value | $ 38 | $ 42 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible assets amortization expense | $ 0.1 | $ 0 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets Net [Abstract] | ||
2017 - 9 months remaining | $ 194 | |
2,018 | 249 | |
2,019 | 143 | |
2,020 | 46 | |
2,021 | 40 | |
Beyond | 8 | |
Total | $ 680 | $ 745 |
Segment, Customer Concentrati55
Segment, Customer Concentration and Geographical Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2017Business_UnitLocation | Mar. 31, 2016Location | |
Revenue, Major Customer [Line Items] | ||
Number of primary business units | Business_Unit | 2 | |
Number of geographic locations | Location | 3 | 3 |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Sprint and Fast Spring [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration percentage | 75.00% | 84.00% |
Segment, Customer Concentrati56
Segment, Customer Concentration and Geographical Information - Revenues Generated by Each Business Unit (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue from External Customer [Line Items] | ||
Total revenues | $ 5,576 | $ 7,214 |
Wireless [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 4,359 | 5,973 |
Graphics [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | $ 1,217 | $ 1,241 |
Segment, Customer Concentrati57
Segment, Customer Concentration and Geographical Information - Company's Customers that Represent 10% or More of Company's Net Revenues (Detail) - Revenues [Member] - Customer Concentration Risk [Member] | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Wireless [Member] | Sprint and Affiliates [Member] | ||
Revenue, Major Customer [Line Items] | ||
Customer concentrating on 10% or more of net revenue | 61.80% | 65.00% |
Graphics [Member] | FastSpring [Member] | ||
Revenue, Major Customer [Line Items] | ||
Customer concentrating on 10% or more of net revenue | 13.90% | 13.60% |
Segment, Customer Concentrati58
Segment, Customer Concentration and Geographical Information - Company Revenue in Different Geographic Locations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue from External Customer [Line Items] | ||
Total revenues | $ 5,576 | $ 7,214 |
Americas [Member] | Reportable Geographical Components [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 5,474 | 7,142 |
EMEA [Member] | Reportable Geographical Components [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 49 | 62 |
Asia Pacific [Member] | Reportable Geographical Components [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | $ 53 | $ 10 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Mar. 31, 2017 | Feb. 08, 2017 | Feb. 07, 2017 | Mar. 31, 2017 | Sep. 02, 2016 |
Related Party Transaction [Line Items] | |||||
Proceeds from short term secured borrowing arrangement | $ 2,000,000 | ||||
Interest rate per annum | 10.00% | 10.00% | |||
Steven L. and Monique P. Elfman [Member] | Secured Promissory Note [Member] | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | $ 1,000,000 | |||
Interest rate per annum | 18.00% | 18.00% | 18.00% | ||
Notes due date | Mar. 24, 2017 | ||||
Steven L. and Monique P. Elfman [Member] | Secured Promissory Note [Member] | Maximum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Notes due date | Jun. 23, 2017 | ||||
William W. and Dieva L. Smith [Member] | Note and Warrant Purchase Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Warrants expiration period | 5 years | ||||
Purchase of warrants | 850,000 | ||||
Common stock exercise price | $ 2.74 | ||||
Notes and warrants issuance date | Sep. 6, 2016 | ||||
William W. and Dieva L. Smith [Member] | Note and Warrant Purchase Agreement [Member] | Senior Subordinated Notes [Member] | |||||
Related Party Transaction [Line Items] | |||||
Aggregate principal amount | $ 2,000,000 | ||||
William W. and Dieva L. Smith [Member] | Secured Promissory Note [Member] | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | ||||
Interest rate per annum | 18.00% | ||||
Notes due date | Mar. 24, 2017 | ||||
Debt instrument extended maturity date | Jun. 26, 2017 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Jan. 31, 2017USD ($) | Sep. 19, 2016USD ($)Installment | Mar. 31, 2017USD ($)$ / ft² | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) |
Leases [Abstract] | |||||
Expiration of non-cancellable operating leases | Through 2,022 | ||||
Accrued lease commitments expense | $ 3,800 | ||||
Estimated sublease income | 2,000 | ||||
Rent expense under operating leases | $ 400 | $ 300 | |||
Incentives per square feet | $ / ft² | 40 | ||||
Incentives for improvements to space | $ 2,200 | ||||
Lease agreement term | 10 years | ||||
Funds to be repaid under the agreement | $ 300 | $ 300 | $ 300 | ||
Interest rate of funds under the agreement | 0.00% | ||||
Number of equal quarterly installments | Installment | 20 | ||||
Repayment of granted amount, paid on first installment | $ 17,133 |
Commitments and Contingencies61
Commitments and Contingencies - Company Lease of Buildings under Non-Cancellable Operating Leases (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Leases [Abstract] | |
2017-9 months remaining | $ 1,779 |
2,018 | 2,396 |
2,019 | 2,005 |
2,020 | 1,707 |
2,021 | 1,710 |
2,022 | 33 |
Total | $ 9,630 |
Long Term Debt - Additional Inf
Long Term Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Sep. 02, 2016 | |
Debt Instrument [Line Items] | ||
Debt instrument maturity period | 3 years | |
Debt interest rate | 10.00% | |
Fair value of warrant discount | $ 2,100,000 | |
Interest rate, effective percentage | 28.40% | |
Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith [Member] | Note and Warrant Purchase Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Warrants expiration period | 5 years | |
Purchase of warrants | 1,700,000 | |
Common stock exercise price | $ 2.74 | |
Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith [Member] | Senior Subordinated Notes [Member] | Note and Warrant Purchase Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 4,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Valuation allowance | $ 76.3 |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Federal income tax returns subject to examination description | Federal income tax returns of the Company are subject to IRS examination for the 2012 – 2015 tax years. |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Federal income tax returns subject to examination description | State income tax returns are subject to examination for a period of three to four years after filing. |