Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 23, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SMSI | ||
Entity Registrant Name | SMITH MICRO SOFTWARE INC | ||
Entity Central Index Key | 948,708 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 18,250,909 | ||
Entity Public Float | $ 18,910,405 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 2,205 | $ 2,229 |
Accounts receivable, net of allowances for doubtful accounts and other adjustments of $221 and $197 at December 31, 2017 and 2016, respectively | 5,145 | 4,962 |
Prepaid expenses and other current assets | 576 | 726 |
Total current assets | 7,926 | 7,917 |
Equipment and improvements, net | 1,229 | 1,811 |
Deferred tax asset, net | 404 | |
Other assets | 146 | 149 |
Intangible assets, net | 487 | 745 |
Goodwill | 3,685 | 3,686 |
Total assets | 13,877 | 14,308 |
Current liabilities: | ||
Accounts payable | 1,333 | 1,907 |
Accrued payroll and benefits | 1,994 | 2,391 |
Related party notes payable | 1,000 | |
Other accrued liabilities | 416 | 1,112 |
Deferred revenue | 73 | 98 |
Total current liabilities | 4,816 | 5,508 |
Non-current liabilities: | ||
Related-party notes payable, net of discount & issuance costs of $0 and $619 at December 31, 2017 and 2016, respectively | 1,200 | 1,295 |
Notes payable, net of discount & issuance costs of $442 and $619, at December 31, 2017 and 2016, respectively | 1,558 | 1,295 |
Deferred rent | 970 | 1,162 |
Other long term liabilities | 766 | 1,808 |
Deferred tax liability, net | 181 | |
Total non-current liabilities | 4,494 | 5,741 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.001 per share; 5,000,000 shares authorized; 5,500 shares issued and outstanding at December 31, 2017 | ||
Common stock, par value $0.001 per share; 100,000,000 shares authorized; 14,268,765 and 12,297,954 shares issued and outstanding at December 31, 2017 and 2016, respectively | 14 | 12 |
Additional paid-in capital | 237,486 | 229,275 |
Accumulated comprehensive deficit | (232,933) | (226,228) |
Total stockholders’ equity | 4,567 | 3,059 |
Total liabilities and stockholders' equity | $ 13,877 | $ 14,308 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowances for doubtful accounts receivable | $ 221 | $ 197 |
Related-party notes payable, discount & issuance costs | 0 | 619 |
Notes payable, discount & issuance costs | $ 442 | $ 619 |
Preferred stock, par value | $ 0.001 | |
Preferred stock, shares authorized | 5,000,000 | |
Preferred stock, shares issued | 5,500 | |
Preferred stock, shares outstanding | 5,500 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 14,268,765 | 12,297,954 |
Common stock, shares outstanding | 14,268,765 | 12,297,954 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenues | $ 22,974 | $ 28,235 | $ 39,507 |
Cost of revenues | 5,082 | 7,564 | 8,152 |
Gross profit | 17,892 | 20,671 | 31,355 |
Operating expenses: | |||
Selling and marketing | 6,186 | 9,615 | 8,902 |
Research and development | 8,952 | 15,906 | 13,863 |
General and administrative | 8,551 | 10,341 | 11,128 |
Restructuring expenses | (123) | 303 | |
Long-lived asset impairment | 411 | ||
Total operating expenses | 23,566 | 36,576 | 33,893 |
Operating loss | (5,674) | (15,905) | (2,538) |
Non-operating income (expense): | |||
Change in carrying value of contingent liability | 668 | ||
Loss on debt extinguishment | (405) | ||
Interest income (expense), net | (1,120) | (313) | 1 |
Other income (expense), net | (8) | (22) | 3 |
Loss before provision for income taxes | (7,207) | (15,572) | (2,534) |
Provision for income tax expense (benefit) | (546) | (229) | 68 |
Net loss | (6,661) | (15,343) | (2,602) |
Other comprehensive income (loss), before tax: | |||
Unrealized holding gains (losses) on available-for-sale securities | 2 | (1) | |
Other comprehensive income (expense), net of tax | 2 | (1) | |
Comprehensive loss | $ (6,661) | $ (15,341) | $ (2,603) |
Net loss per share: | |||
Basic and diluted | $ (0.49) | $ (1.28) | $ (0.26) |
Weighted average shares outstanding: | |||
Basic and diluted | 13,489 | 11,951 | 10,162 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Comprehensive Deficit [Member] |
BALANCE at Dec. 31, 2014 | $ 14,902 | $ 45 | $ 223,141 | $ (208,284) | |
BALANCE, Shares at Dec. 31, 2014 | 45,000,000 | ||||
Exercise of common stock options | $ 10 | 10 | |||
Exercise of common stock options, shares | 2,000 | 8,000 | |||
Non-cash compensation recognized on stock options and ESPP | $ 186 | 186 | |||
Restricted stock grants, net of cancellations | 1,967 | $ 1 | 1,966 | ||
Restricted stock grants, net of cancellations, shares | 1,091,000 | ||||
Cancellation of shares for payment of withholding tax | (458) | (458) | |||
Cancellation of shares for payment of withholding tax, shares | (394,000) | ||||
Tax benefit deficiencies related to restricted stock expense | 5 | 5 | |||
Employee stock purchase plan | 17 | 17 | |||
Employee stock purchase plan, shares | 24,000 | ||||
Comprehensive loss | (2,603) | (2,603) | |||
BALANCE at Dec. 31, 2015 | 14,026 | $ 46 | 224,867 | (210,887) | |
BALANCE, Shares at Dec. 31, 2015 | 45,729,000 | ||||
Non-cash compensation recognized on stock options and ESPP | 137 | 137 | |||
Restricted stock grants, net of cancellations | 1,391 | 1,391 | |||
Restricted stock grants, net of cancellations, shares | 366,000 | ||||
Cancellation of shares for payment of withholding tax | (304) | (304) | |||
Cancellation of shares for payment of withholding tax, shares | (126,000) | ||||
Employee stock purchase plan | 13 | 13 | |||
Employee stock purchase plan, shares | 7,000 | ||||
Shares issued for iMobileMagic acquisition | 1,737 | 1,737 | |||
Shares issued for iMobileMagic acquisition, shares | 611,000 | ||||
Shares issued for interest on notes payable | 17 | 17 | |||
Shares issued for interest on notes payable, shares | 8,000 | ||||
Effects of reverse stock split | (3) | $ (34) | 31 | ||
Effects of reverse stock split, shares | (34,297,000) | ||||
Issuance of warrants in stock offering | 1,386 | 1,386 | |||
Comprehensive loss | (15,341) | (15,341) | |||
BALANCE at Dec. 31, 2016 | $ 3,059 | $ 12 | 229,275 | (226,228) | |
BALANCE, Shares at Dec. 31, 2016 | 12,297,954 | 12,298,000 | |||
Non-cash compensation recognized on stock options and ESPP | $ 44 | 44 | |||
Restricted stock grants, net of cancellations | 1,127 | 1,127 | |||
Restricted stock grants, net of cancellations, shares | (69,000) | ||||
Cancellation of shares for payment of withholding tax | (171) | (171) | |||
Cancellation of shares for payment of withholding tax, shares | (126,000) | ||||
Employee stock purchase plan | 3 | 3 | |||
Employee stock purchase plan, shares | 4,000 | ||||
Preferred shares issued in stock offering,net of offering costs | 5,213 | 5,213 | |||
Preferred shares issued in stock offering, net of offering costs, shares | 3,000 | ||||
Common shares issued in stock offering,net of offering costs | 1,992 | $ 2 | 1,990 | ||
Common shares issued in stock offering, net offering costs, shares | 2,162,000 | ||||
Issuance of warrants in stock offering | 64 | 64 | |||
Preferred shares issued with debtconversion | (103) | (103) | |||
Preferred shares issued with debt conversion, shares | 3,000 | ||||
Warrant repricing | 44 | (44) | |||
Comprehensive loss | (6,661) | (6,661) | |||
BALANCE at Dec. 31, 2017 | $ 4,567 | $ 14 | $ 237,486 | $ (232,933) | |
BALANCE, Shares at Dec. 31, 2017 | 5,500 | 6,000 | |||
BALANCE, Shares at Dec. 31, 2017 | 14,268,765 | 14,269,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net loss | $ (6,661) | $ (15,343) | $ (2,602) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 922 | 1,381 | 1,904 |
Amortization of debt discounts and financing issuance costs | 459 | 168 | |
Restructuring reserve adjustment | (123) | ||
Long-lived asset impairment | 411 | ||
Change in carrying value of contingent liability | (668) | ||
Loss on debt extinguishment | 405 | ||
Provision for adjustments to accounts receivable and doubtful accounts | 182 | 70 | 31 |
Provision for excess and obsolete inventory | 11 | 48 | |
Loss (gain) on disposal of fixed assets | (6) | 27 | 1 |
Tax benefits from stock-based compensation | (5) | ||
Non-cash compensation related to stock options and restricted stock | 1,171 | 1,528 | 2,158 |
Deferred income taxes | (585) | (137) | |
Change in operating accounts: | |||
Accounts receivable | (365) | 3,368 | 40 |
Prepaid expenses and other assets | 154 | 475 | 790 |
Accounts payable and accrued liabilities | (2,947) | (1,966) | (1,362) |
Deferred revenue | (25) | (828) | (1,058) |
Net cash used in operating activities | (7,419) | (11,503) | (55) |
Investing activities: | |||
Cash paid for acquisitions, net of cash acquired | (2,485) | ||
Capital expenditures | (77) | (500) | (124) |
Proceeds from the sale of short-term investments | 4,079 | ||
Purchases of short-term investments | (1,199) | ||
Net cash provided by (used in) investing activities | (77) | 1,094 | (1,323) |
Financing activities: | |||
Cash received from issuance of common stock and warrants, net of offering costs | 2,056 | ||
Cash received from issuance of preferred stock, net of offering costs | 2,413 | ||
Cash received from short-term secured promissory notes | 1,800 | ||
Cash received from related-party notes payable, net of issuance costs of $97 (2016) | 1,200 | 1,903 | |
Cash received from notes payable, net of issuance costs of $97 (2016) | 1,903 | ||
Cash received from stock sale for employee stock purchase plan | 3 | 13 | 17 |
Cash received from exercise of stock options | 10 | ||
Tax benefits received from stock-based compensation | 5 | ||
Net cash provided by financing activities | 7,472 | 3,819 | 32 |
Net decrease in cash and cash equivalents | (24) | (6,590) | (1,346) |
Cash and cash equivalents, beginning of period | 2,229 | 8,819 | 10,165 |
Cash and cash equivalents, end of period | 2,205 | 2,229 | 8,819 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes | 15 | 27 | 17 |
Cash paid for interest expense | 662 | 21 | |
Change in unrealized gain (loss) on short-term investments | $ 2 | $ (1) | |
Issuance of common stock warrants in connection with stock offering | 64 | ||
Issuance of preferred stock in settlement of senior subordinated debt | $ 2,800 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Statement Of Cash Flows [Abstract] | |
Notes issuance cost | $ 97 |
Notes issuance cost to related party | $ 97 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies The Company Smith Micro develops software to simplify and enhance the mobile experience, providing solutions to leading wireless service providers, device manufacturers, and wireless users around the world. From optimizing wireless networks to uncovering customer experience insights, and from providing visual access to wireless voicemail to ensuring family safety, our solutions enrich connected lifestyles while creating new opportunities to engage consumers via smartphones. We also provide a services platform for the Internet of Things (“IoT”) that enables comprehensive device management and firmware over-the-air (“FOTA”) updates for various types of connected devices. In addition, Smith Micro’s portfolio includes a wide range of products for creating, sharing, and monetizing rich content, such as visual messaging 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. For more than three decades, Smith Micro has developed deep expertise in embedded software for mobile devices, policy-based management platforms, and highly-scalable client and server applications. Tier 1 mobile network operators, cable providers, OEMs/device manufacturers, and enterprise businesses across a wide range of industries use our software to capitalize on the growth of connected consumers, mobile apps, vehicle telematics, and smart cities. In general, we help our customers: • Provide valuable digital lifestyle services, such as family location services, parental controls, and device security to mobile consumers; • Manage mobile devices over-the-air for maximum performance, efficiency, reliability and cost-effectiveness; • Provide easy visual access to wirelessly delivered voicemail messages, while also providing easy conversion of voice messages to text messages; • Optimize wireless networks, reduce operational costs, and deliver “best-connected” user experiences; • Efficiently and securely manage connected devices comprising the IoT; and • Design and create 2D and 3D digital illustrations, animation and figure design with easy-to-use, professional-grade graphics software. We continue to innovate and evolve our business to take advantage of industry trends and opportunities in emerging markets, such as digital lifestyle services and online safety, “Big Data” analytics, automotive telematics, and the industrial IoT. The key to our longevity, however, is not simply technological innovation, but a never-ending focus on customer value. Basis of Presentation The accompanying consolidated financial statements reflect the operating results and financial position of Smith Micro and its wholly owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany amounts have been eliminated in consolidation. Foreign Currency Transactions The Company has international operations resulting from current and prior year acquisitions. The countries in which the Company has a subsidiary or branch office in are Serbia, Sweden, Portugal, the United Kingdom and Canada. The functional currency for all of these foreign entities is the U.S. dollar in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 830-30, Foreign Currency Matters-Translation of Financial Statements Business Combinations The Company applies the provisions of FASB ASC Topic No. 805, Business Combinations , in the accounting for its acquisitions, which requires recognition of the assets acquired and the liabilities assumed at their acquisition date fair values, separately from goodwill. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period that exists up to twelve months from the acquisition date, the Company may record adjustments to the tangible and specifically identifiable intangible assets acquired and liabilities assumed with a corresponding adjustment to goodwill in the reporting period in which the adjusted amounts are determined. Upon the conclusion of the measurement period or final determination of the values of assets acquired and liabilities assumed, whichever comes first, the impact of any subsequent adjustments is included in the consolidated statements of operations. Costs to exit or restructure certain activities of an acquired company or the Company’s internal operations are accounted for as a one-time termination and exit cost pursuant to FASB ASC Topic No. 420, Exit or Disposal Cost Obligations , and are accounted for separately from the business combination. A liability for costs associated with an exit or disposal activity is recognized and measured at its fair value in the Company’s consolidated statement of operations in the period in which the liability is incurred. Uncertain income tax positions and tax-related valuation allowances that are acquired in connection with a business combination are initially estimated as of the acquisition date. The Company reevaluates these items quarterly based upon facts and circumstances that existed as of the acquisition date, with any adjustments to the preliminary estimates being recorded to goodwill if such adjustments occur within the 12-month measurement period. Subsequent to the end of the measurement period or the Company’s final determination of the value of the tax allowance or contingency, whichever comes first, changes to these uncertain tax positions and tax-related valuation allowances will affect the provision for income taxes in the consolidated statement of operations, and could have a material impact on results of operations and financial position. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Fair Value of Financial Instruments 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 upon the sale of an asset or the amount that would be 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 equivalents and short-term investments at fair value. Our cash equivalents and short-term investments are classified within Level 1 by using quoted market prices utilizing market observable inputs. As required by FASB ASC Topic No. 825, Financial Instruments As required by FASB ASC Topic No. 350, for goodwill and other intangibles impairment analysis, we utilize fair value measurements which are categorized within Level 3 of the fair value hierarchy. At December 31, 2017 and 2016, the carrying value and the aggregate fair value of the Company’s short and long-term debt were as follows (in thousands): As of December 31, 2017 As of December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities: Short-term debt - related party $ 1,000 $ 1,000 $ — $ — Long-term debt - related party 1,200 1,200 1,295 1,295 Long-term debt 1,558 1,558 1,295 1,295 Total long-term debt $ 3,758 $ 3,758 $ 2,590 $ 2,590 The carrying value of $3.8 million is net of debt discount of $0.4 million and debt issuance costs of $0.1 million as of December 31, 2017. The carrying value of $2.6 million is net of debt discount of $1.2 million and debt issuance costs of $0.2 million as of December 31, 2016. Significant Concentrations For the year ended December 31, 2017, two customers, each accounting for over 10% of revenues, made up 75% of revenues and 72% of accounts receivable, and one service provider with more than 10% of purchases totaled 11% of accounts payable. For the year ended December 31, 2016, two customers, each accounting for over 10% of revenues, made up 77% of revenues and 80% of accounts receivable, and one service provider with more than 10% of purchases totaled 24% of accounts payable. For the year ended December 31, 2015, two customers, each accounting for over 10% of revenues, made up 76% of revenues and 83% of accounts receivable, and one service provider with more than 10% of purchases totaled 13% of accounts payable. Cash and Cash Equivalents Cash and cash equivalents generally consist of cash, government securities, mutual funds, and money market funds. These securities are primarily held in two financial institutions and are uninsured except for the minimum Federal Deposit Insurance Corporation coverage, and have original maturity dates of three months or less. As of December 31, 2017 and 2016, bank balances totaling approximately $2.0 million and $2.1 million, respectively, were uninsured. Accounts Receivable and Allowance for Doubtful Accounts We sell our products worldwide. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history, the customer’s current credit worthiness and various other factors, as determined by our review of their current credit information. We continuously monitor collections and payments from our customers. We estimate credit losses and maintain an allowance for doubtful accounts reserve based upon these estimates. While such credit losses have historically been within our estimated reserves, we cannot guarantee that we will continue to experience the same credit loss rates that we have in the past. If not, this could have an adverse effect on our consolidated financial statements. Allowances for product returns are included in other adjustments to accounts receivable on the accompanying consolidated balance sheets. Product returns are estimated based on historical experience and have also been within management’s estimates. 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. Internal Software Development Costs Development costs incurred in the research and development of new software products and enhancements to existing software products are expensed as incurred until technological feasibility has been established. The Company considers technological feasibility to be established when all planning, designing, coding, and testing has been completed according to design specifications. After technological feasibility is established, any additional costs are capitalized. Through December 31, 2017, software has been substantially completed concurrently with the establishment of technological feasibility; accordingly, no costs have been capitalized to date. 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 Goodwill In accordance with FASB ASC Topic No. 350, Intangibles-Goodwill and Other Intangible Assets and Amortization Amortization expense related to other intangibles acquired in acquisitions is calculated on a straight line basis over two to six years. Intangible assets are tested for impairment if events or circumstances occur indicating that the respective asset might be impaired. Derivatives 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 Going Concern Evaluation In connection with preparing consolidated financial statements for the year ended December 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 eleven consecutive quarters. • Negative cash flow from operating activities for seven consecutive quarters. • Stock price below $1.00/share resulting in non-compliance with NASDAQ listing rules to maintain a stock price of $1.00/share. • Stockholders’ equity less than $2.5 million at March 31, 2017 and June 30, 2017, resulting in non-compliance with NASDAQ listing rules. • Revenue declines for two consecutive years, including a decline of 32% of revenue from the Company’s largest customer, in fiscal year 2016 compared to fiscal year 2015. 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 raised funds from short-term loans from related parties. • As a result of the Company’s restructurings that were 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 future revenue projections. • In May 2017, the Company issued $2.2 million in a private placement offering of its common stock. • In September 2017, the Company closed on a $5.5 million preferred stock transaction which converted $2.8 million of long and short-term debt, and received $2.7 million of new capital. • On March 5, 2018, the Company issued $5.0 million in a private placement offering of its common stock. In addition to the recent capital raised on March 5, 2018, management also believes that the Company will generate enough cash from operations to satisfy its obligations for the next twelve months from the issuance date. The Company will take the following actions if it starts to trend unfavorably 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. Revenue Recognition We currently report our net revenues under two operating groups: Wireless and Graphics. Within each of these groups, software revenue is recognized based on the customer and contract type. We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed and determinable, and collectability is probable as required by FASB ASC Topic No. 605-985, Revenue Recognition-Software We have a limited number of multiple element agreements for which we have contracted to provide a perpetual license for use of proprietary software, to provide non-recurring engineering, and in some cases, to provide software maintenance (post contract support). For these software and software-related multiple element arrangements, we must: (1) determine whether and when each element has been delivered; (2) determine whether undelivered products or services are essential to the functionality of the delivered products and services; (3) determine the fair value of each undelivered element using vendor-specific objective evidence (“VSOE”); and (4) allocate the total price among the various elements. VSOE of fair value is used to allocate a portion of the price to the undelivered elements and the residual method is used to allocate the remaining portion to the delivered elements. Absent VSOE, revenue is deferred until the earlier of the point at which VSOE of fair value exists for any undelivered element or until all elements of the arrangement have been delivered. However, if the only undelivered element is post contract support, the entire arrangement fee is recognized ratably over the performance period. We determine VSOE for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial arrangement. In determining VSOE, we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range. We have established VSOE for our post contract support services and non-recurring engineering. On occasion, we enter into fixed fee arrangements, typically for trial purposes, in which customer payments are tied to the achievement of specific milestones. Revenue for these contracts is recognized based on customer acceptance of certain milestones as they are achieved. We also enter hosting arrangements that sometimes include up-front, non-refundable set-up fees. Revenue is recognized for these fees over the term of the agreement. For Graphics sales, management reviews available retail channel information and makes a determination of a return provision for sales made to distributors and retailers based on current channel inventory levels and historical return patterns. Certain sales to distributors or retailers are made on a consignment basis. Revenue for consignment sales are not recognized until sell through to the final customer is established. Certain revenues are booked net of revenue sharing payments. Sales directly to end users are recognized upon shipment. End users have a thirty-day right of return, but such returns are reasonably estimable and have historically been immaterial. We also provide technical support to our customers. Such costs have historically been insignificant. Sales Incentives For our Graphics sales, the cost of sales incentives the Company offers without charge to customers that can be used in, or that are exercisable by a customer as a result of, a single exchange transaction is accounted for as a reduction of revenue as required by FASB ASC Topic No. 605-50, Revenue Recognition-Customer Payments and Incentives Stock-Based Compensation The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and recognizes such awards 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 Recently Adopted Accounting Pronouncements In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40) In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment, In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815) Recently Issued Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions The Company did not engage in any acquisitions during 2017. The following table summarizes the consideration paid for acquisitions in 2016 (in thousands): Fair value of assets acquired $ 5,843 Fair value of liabilities assumed 1,525 Total purchase price $ 4,318 Allocation of purchase price: Cash $ 2,581 Common stock 1,737 Total purchase price $ 4,318 Cash consideration paid $ 2,581 Less: cash acquired (96 ) Cash consideration paid, net of cash acquired $ 2,485 Birdstep Technology AB On April 7, 2016, pursuant to the Share Purchase Agreement, dated as of March 8, 2016, by and between the Company and Birdstep Technology ASA (“Birdstep”), the Company completed its acquisition of 100% of the outstanding capital stock of Birdstep’s wholly owned Swedish subsidiary, Birdstep Technology AB. Pursuant to the terms of the Share Purchase Agreement, the Company paid a net purchase price of $2.0 million in cash to Birdstep at the closing. As a result of the acquisition, Birdstep Technology AB became a wholly-owned subsidiary of the Company. Acquisition-related costs of $0.2 million were recorded as expense in the fiscal year 2016 in the general and administrative section of the consolidated statement of operations. The Company’s allocation of the purchase price is summarized as follows (in thousands): Assets: Cash and cash equivalents $ 73 Accounts receivable 99 Income tax receivable 103 Prepaids and other current assets 311 Equipment and improvements 30 Intangible assets 670 Goodwill 1,991 Total assets $ 3,277 Liabilities: Accounts payable $ 223 Accrued liabilities 421 Deferred revenue 486 Deferred tax liability 147 Total liabilities $ 1,277 Total purchase price $ 2,000 The results of operations of Birdstep Technology AB have been included in the Company’s consolidated financial statements from the date of acquisition. The pro-forma effect of the acquisition on historical periods is not material and therefore is not included. The purpose of the Birdstep acquisition was to re-enter the Asia-Pacific and European wireless markets, and to acquire engineering talent that was already in place and developing essentially the same NetWise-type products that we were. iMobileMagic – Mobile Experiences, LDA On July 19, 2016, the Company and iMobileMagic – Mobile Experiences, LDA (“iMM”), a Portuguese limited liability company, entered into a Share Purchase Agreement pursuant to which the Company agreed to acquire 100% of the outstanding share capital of iMM. Under the terms of the Share Purchase Agreement, the aggregate purchase price of approximately $2.3 million consisted of the following consideration: (i) approximately $0.6 million in cash; (ii) approximately $0.6 million in value of Buyer’s common stock; and (iii) approximately $1.1 million in value of Buyer’s common stock to be held in escrow pursuant to an Escrow Agreement. As a result of the acquisition, iMM has become a wholly-owned subsidiary of the Company. Approximately 16 employees continued as employees of iMM following the Closing. Acquisition-related costs of $0.2 million were recorded as expense in fiscal year 2016 in the general and administrative section of the consolidated statement of operations. The Company’s allocation of the purchase price is summarized as follows (in thousands): Assets: Cash and cash equivalents $ 23 Short term investments 1 Accounts receivable 156 Prepaids and other current assets 8 Intangible assets 683 Goodwill 1,695 Total assets $ 2,566 Liabilities: Accounts payable $ 13 Accrued liabilities 64 Deferred tax liability 171 Total liabilities $ 248 Total purchase price $ 2,318 The results of operations of iMobileMagic have been included in the Company’s consolidated financial statements from the date of acquisition. The pro-forma effect of the acquisition on historical periods is not material and therefore is not included. The purpose of the iMobileMagic acquisition was to enter into the fast growing international family services, location-tracking market. |
Equipment and Improvements
Equipment and Improvements | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Equipment and Improvements | 3. Equipment and Improvements Equipment and improvements consist of the following (in thousands): December 31, 2017 2016 Computer hardware, software, and equipment $ 14,617 $ 14,617 Leasehold improvements 5,316 5,315 Office furniture and fixtures 962 1,073 20,895 21,005 Less accumulated depreciation and amortization (19,666 ) (19,194 ) Equipment and improvements, net $ 1,229 $ 1,811 Depreciation and amortization expense on equipment and improvements was $0.7 million, $1.2 million, and $1.9 million for the years ended December 31, 2017, 2016, and 2015 respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets The following table sets forth our acquired intangible assets by major asset class as of December 31, 2017 and December 31, 2016 (in thousands except for useful life data): December 31, 2017 December 31, 2016 Useful life (years) Gross Accumulated amortization Net book value before impairment Impairment charge in 2016 Net book value Gross Accumulated amortization Net book value before impairment Impairment charge Net book value Purchased technology 5-6 $ 265 $ (78 ) $ 187 $ — $ 187 $ 265 $ (32 ) $ 233 $ — $ 233 Customer relationships 3-6 999 (324 ) 675 (411 ) 264 999 (147 ) 852 (411 ) 441 Trademarks/trade names 2 38 (28 ) 10 — 10 38 (9 ) 29 — 29 Non-compete 3 51 (25 ) 26 — 26 51 (9 ) 42 — 42 Total $ 1,353 $ (455 ) $ 898 $ (411 ) $ 487 $ 1,353 $ (197 ) $ 1,156 $ (411 ) $ 745 Intangible assets amortization expense was $0.3 million and $0.2 million for the years ended December 31, 2017 and 2016, respectively. Future amortization expense related to intangible assets as of December 31, 2017 are as follows (in thousands): Year Ending December 31, 2018 249 2019 143 2020 46 2021 40 2022 9 Beyond — Total $ 487 Valuation of Goodwill and Intangible Assets The Company accounts for goodwill and intangible assets as required by FASB ASC Topic No. 350, Intangibles-Goodwill and Other • a determination that the carrying value of such assets cannot be recovered through undiscounted cash flows; • loss of legal ownership or title to the assets; • significant changes in our strategic business objectives and utilization of the assets; or • the impact of significant negative industry or economic trends. If the intangible assets are considered to be impaired, the impairment we recognize is the amount by which the carrying value of the intangible assets exceeds the fair value of the intangible assets. In addition, we base the useful lives and the related amortization expense on our estimate of the useful life of the intangible assets. Due to the numerous variables associated with our judgments and assumptions relating to the carrying value of our intangible assets and the effects of changes in circumstances affecting these valuations, both the precision and reliability of the resulting estimates are subject to uncertainty, and as additional information becomes known, we may change our estimate, in which case, the likelihood of a material change in our reported results would increase. The Company recognized an impairment loss of $0.4 million in the three and twelve months ended December 31, 2016 related to an intangible asset acquired from our Birdstep acquisition. We review the recoverability of the carrying value of goodwill at least annually or whenever events or circumstances indicate a potential impairment. Our annual impairment testing date is December 31. Recoverability of goodwill is determined by comparing the estimated fair value of our reporting units to the carrying value of the underlying net assets in the reporting units. If the estimated fair value of a reporting unit is determined to be less than the fair value of its net assets, goodwill is deemed impaired and an impairment loss is recognized to the extent that the carrying value of goodwill exceeds the difference between the estimated fair value of the reporting unit and the fair value of its other assets and liabilities. We determined that we did not have any impairment of goodwill at December 31, 2017. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt Short-term Debt 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 $1.0 million and the Company issued to each of them a Secured Promissory Note (the “Original Notes”) bearing interest at the rate of 18% per annum. The Original Notes were due on March 24, 2017 and were secured by the Company’s accounts receivable and certain other assets. William W. Smith, Jr. is the Company’s Chairman of the Board, President and Chief Executive Officer, and Steven L. Elfman is a director of the Company. On March 25, 2017, the Company entered into an Amendment to the Original Note issued to Smith that extended the Maturity Date of the Note to June 26, 2017. On March 31, 2017, the Company entered into a new short-term secured borrowing arrangement with Elfman for $1.0 million which matured on June 23, 2017. On June 30, 2017, the Company entered into a new short-term secured borrowing arrangement with each of Smith and Elfman to refinance the prior arrangement with each of them, which matured on June 26, 2017 and June 23, 2017, respectively. Under the new borrowing arrangements, the Company issued to each of Smith and Elfman a new Secured Promissory Note (“Replacement Notes”) with a principal balance of $1.0 million, bearing interest at the rate of 12% per annum, and maturing on September 25, 2017. The maturity date of the Replacement Note entered into with Smith may be extended by up to 180 days upon the mutual consent of the Company and Smith. Each of the Replacement Notes are secured by the Company’s accounts receivable and certain other assets. On August 22, 2017, the Company entered into Amendments to the Replacement Notes issued to each of Smith and Elfman, which extended the Maturity Date of the Replacement Notes from September 25, 2017 to January 25, 2018. The amendments did not change any other terms of the Replacement Notes. On August 23, 2017, the Company entered into a borrowing arrangement with Smith, under which the Company borrowed $0.8 million and issued to Smith a Secured Promissory Note, bearing interest at the rate of 12% per annum, and maturing on January 25, 2018. On August 24, 2017, the Company entered into a new borrowing arrangement with Andrew Arno (“Arno”), under which the Company borrowed $0.3 million and issued to Arno new Secured Promissory Notes with an aggregate principal balance of $0.3 million, bearing interest at the rate of 12% per annum, and maturing on January 31, 2018. Andrew Arno is a director of the Company. On September 29, 2017, the Company exchanged shares of the Company’s newly designated Series B 10% Convertible Preferred Stock (“Series B Preferred Stock”) for outstanding short-term indebtedness with a principal amount of $0.8 million owed to Smith and $0.1 million to Arno for 750 and 50 shares, respectively. See Note 6, Equity Transactions, for further details on the Series B Preferred Stock Offering. The Company reviewed FASB ASC Topic No. 470-50, Debt Extinguishment The Company evaluated the refinancing of the short-term debt instruments under FASB ASU Topic No. 470-60, Troubled Debt Restructurings, Long-term Debt 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 (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 $4.0 million (the “Notes”). The Company completed the transactions contemplated by the Note and Warrant Purchase Agreement and issued the Notes 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. 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. On September 29, 2017, the Company exchanged shares of the Company’s newly designated Series B 10% Convertible Preferred Stock for outstanding long-term indebtedness with a principal amount of $2.0 million owed to Smith for 2,000 of the Series B Preferred Stock. See Note 6, Equity Transactions, for further details on the Series B Preferred Stock Offering. The Company reviewed FASB ASC Topic No. 470-50, Debt Extinguishment The Company evaluated the conversion of the long-term debt under FASB ASU Topic No. 470-60, Troubled Debt Restructurings See also Note 15 for debt transactions that occurred subsequent to December 31, 2017. |
Equity Transactions
Equity Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity Transactions | 6. Equity Transactions Preferred Stock Offering On September 29, 2017, the Company entered into a Securities Purchase Agreement with several investors for the issuance and sale (the “Offering”) of 5,500 shares of the Company’s newly designated Series B 10% Convertible Preferred Stock (the “Series B Preferred Stock”) at a stated value of $1,000 per share, for a total purchase price of $5.5 million. The Series B Preferred Stock is convertible into the Company’s Common Stock at a conversion price of $1.14 per share, which was the closing bid price of the Common Stock on September 28, 2017, or 4,824,562 shares of Common Stock in the aggregate. The holders of Series B Preferred Stock are entitled to receive cumulative dividends out of funds legally available thereof at a rate of ten percent (10%) per annum, payable (i) when and as declared by the Board of Directors, in quarterly installments on March 1, June 1, September 1 and December 1, (ii) upon conversion into Common Stock with respect the Series B Preferred Stock being converted, and (iii) upon redemption of the Series B Preferred Stock by the Company. In the event that the trading price of the Company’s Common Stock for 20 consecutive trading days (as determined in the Certificate of Designation) exceeds 400% of the then effective Conversion Price of the Series B Preferred Stock (initially set at $1.14), the Company may force conversion of the Series B Preferred Stock into shares of Common Stock or elect to redeem the Series B Preferred Stock for cash. In addition, upon the occurrence of certain triggering events, each holder of Series B Preferred Stock will have the right to require the Company to redeem such holder’s shares for cash equal to the stated value plus accrued and unpaid dividends and liquidated damages, costs, expenses and other amounts due in respect of the Series B Preferred Stock, and with respect to certain other triggering events, each holder will have the right to increase the dividend rate on such holder’s Series B Preferred Stock to twelve percent (12%) while such triggering event is continuing. In the Offering, the Company raised gross cash proceeds of $2.7 million, and exchanged outstanding indebtedness with a principal amount of $2.8 million owed to Smith (both long and short-term debt) and $0.1 million owed to Arno. The Offering raised net cash proceeds of $2.5 million (after deducting the placement agent fee and expenses of the Offering). The Company intends to use the net cash proceeds from the Offering for working capital purposes. In connection with the Offering, the Company granted customary registration rights to investors with respect to the resale of shares of Common Stock issuable upon conversion of the Series B Convertible Preferred Stock. Common Stock Offering On May 16, 2017, the Company entered into subscription agreements with four accredited investors in a private placement pursuant to which the Company issued and sold to such investors an aggregate of 85,000 shares of its unregistered common stock at a price per share of $1.10. On May 17, 2017, the Company completed a registered direct offering of 2,077,000 shares of its common stock, which realized gross proceeds of $2.3 million before deducting transaction fees and other expenses. Offering costs related to the transaction totaled $0.2 million, comprised of $0.1 million of transaction fees and $0.1 million of legal and other expenses, resulting in net proceeds of $2.1 million. The Company engaged Sutter Securities Incorporated (“Sutter”) and Chardan Capital Markets, LLC (“Chardan”) as co-placement agents in connection with the offering, and under the terms of the engagement paid the placement agents a cash placement fee and issued to the placement agents warrants to purchase shares of Common Stock equal to 5% of the number of shares sold through each of them, without duplication, at an exercise price per share equal to $1.21 (Sutter) and $1.155 (Chardan). The warrants have a term of five years and will be exercisable beginning on November 18, 2017. Warrants On September 2, 2016, the Company entered into a Note and Warrant Purchase Agreement with 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 $4.0 million 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, which expires 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. The terms of the warrants provide that if the Company sells or issues shares of common stock with an exercise price less than $2.74 per share, the exercise price shall be adjusted accordingly to the terms set forth in the Agreement, as discussed in greater detail in the following paragraph. We assessed the warrants and concluded that they should be recorded as equity. Since the issuance of the warrants to the Investors (the “Smith Warrant” and the “Unterberg Warrant”) on September 6, 2016, there have been five triggering events, causing the warrants to be repriced from the original exercise price of $2.74: Common Stock offerings in May 2017 for $1.10 and $1.05, the issuance of warrants to Sutter and Chardan with exercise prices of $1.21 and $1.155, respectively, all resulting in a charge of $3,000, and the Series B Preferred Stock issuance with a conversion price of $1.14 in September 2017, resulting in a charge of $41,000. The triggering event charges were recorded to Stockholders’ Equity in the applicable period. Upon application of the triggering events above, the exercise price of the Unterberg Warrant was adjusted to $2.14 and the exercise price of the Smith Warrant was adjusted to $2.38, which is also the agreed upon floor for the Smith Warrants. The Company issued warrants to purchase shares of Common Stock to the placement agents engaged in connection with a registered direct offering completed on May 17, 2017. See the prior section under the heading “Common Stock Offering” for additional details regarding the warrants issued to the placement agents in connection with that offering. See also Note 15 for equity transactions that occurred subsequent to December 31, 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Income (loss) before provision for income taxes was generated from the following sources (in thousands): Year Ended December 31, 2017 2016 2015 Domestic $ (7,132 ) $ (15,145 ) $ (2,651 ) Foreign (75 ) (427 ) 117 Total loss before provision for income taxes $ (7,207 ) $ (15,572 ) $ (2,534 ) A summary of the income tax expense (benefit) is as follows (in thousands): Year Ended December 31, 2017 2016 2015 Current: Federal $ — $ — $ — State (1 ) (153 ) 5 Foreign 40 61 63 Total current 39 (92 ) 68 Deferred: Federal (530 ) — — State — — — Foreign (55 ) (137 ) — Total deferred (585 ) (137 ) — Total provision $ (546 ) $ (229 ) $ 68 A reconciliation of the provision for income taxes to the amount of income tax expense (benefit) that would result from applying the federal statutory rate to the loss before income taxes is as follows: Year Ended December 31, 2017 2016 2015 Federal statutory rate 35.0 % 35.0 % 35.0 State tax, net of federal benefit 3.9 4.6 (20.4 ) Equity compensation (4.5 ) (0.3 ) (13.7 ) International tax items (0.8 ) (1.0 ) (4.6 ) Foreign taxes 0.2 0.5 (2.5 ) Uncertain tax positions 0.0 1.1 0.0 Other 0.0 (0.2 ) (10.6 ) Miscellaneous (0.2 ) (0.5 ) (1.1 ) Effect of change in rate (372.4 ) 0.0 0.0 Change in valuation allowance 346.4 (37.7 ) 15.2 7.6 % 1.5 % (2.7 ) The major components of the Company’s deferred tax assets and liabilities are as follows (in thousands): Year Ended December 31, 2017 2016 Deferred income tax assets Net operating loss carry forwards $ 40,042 $ 54,165 Credit carry forwards 3,557 3,464 Fixed assets 531 985 Intangibles 8,446 15,894 Equity-based compensation 399 688 Nondeductible accruals 465 1,346 Various reserves 81 132 Other 2 22 Valuation allowance (52,948 ) (76,648 ) Total deferred income taxes - net 575 48 Deferred income tax liabilities Foreign intangibles (126 ) (181 ) Unrealized translation gain/loss (23 ) 9 Prepaid expenses (22 ) (57 ) Total deferred income liabilities (171 ) (229 ) Net deferred income tax assets (liabilities) $ 404 $ (181 ) The Company has federal and state net operating loss (“NOL”) carryforwards of approximately $151.0 million and $147.8 million, respectively, at December 31, 2017, to reduce future cash payments for income taxes. These federal NOL carryforwards will expire from 2024 through 2037 and state NOL carryforwards will expire 2017 through 2037. The Company also had $0.5 million of Alternative minimum tax credit carryforwards with an indefinite life, available to offset regular federal income tax requirements. The Company has federal and state tax credit carryforwards of approximately $2.5 million and $0.7 million, respectively, at December 31, 2017. These tax credits will begin to expire in 2027. To the extent that an ownership change has occurred under Internal Revenue Code Sections 382 and 383, the Company’s use of its loss carryforwards and credit carryforwards to offset future taxable income may be limited. At December 31, 2017 and 2016, the Company had unrecognized tax benefits, including interest and penalties, of approximately $0.4 million. The Company’s gross unrecognized tax benefits as of December 31, 2017 and 2016 and the changes in those balances are as follows (in thousands): Year Ended December 31, 2017 2016 Beginning balance $ 428 $ 592 Increases (decreases) in tax positions for the current year — (164 ) Increases (decreases) in tax positions for the prior year — — Gross unrecognized tax benefits, ending balance $ 428 $ 428 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. After a review of the four sources of taxable income as of December 31, 2017 (as described above), and after consideration of the Company’s continuing cumulative loss position as of December 31, 2017, the Company recorded a valuation allowance related to its U.S.-based deferred tax assets of $52.9 million at December 31, 2017. During 2017, the valuation allowance on deferred tax assets decreased by $23.7 million, increased $1.7 million in 2016, and decreased $0.8 million in 2015. We recognized interest and penalties accrued related to unrecognized tax benefits in income tax expense. During 2017 and 2016, we recognized $0 and of interest and penalties. The cumulative interest and penalties at December 31, 2017 and 2016 were $0. Unrecognized tax benefits of $164.0 million were released in October of 2016, which impacted the effective tax rate due to the expiration of the statute of limitations. We do not anticipate any material changes to unrecognized tax benefits within the next twelve months that will affect the effective tax rate. The Company is subject to U.S. federal income tax, as well as to income tax of multiple state jurisdictions. Federal income tax returns of the Company are subject to IRS examination for the 2013 – 2016 tax years. State income tax returns are subject to examination for a period of three to four years after filing. As of December 31, 2017, the Company had no outstanding tax audits. 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. On December 22, 2017, the President signed the Tax Cuts and Jobs Act (“the 2017 Act”) into law. The 2017 Act will have pervasive financial reporting implications for all companies with U.S. operations. We reviewed and incorporated the new tax bill implications in the 2017 financial statements. The main change is the remeasurement of deferred taxes at the new corporate tax rate of 21%, which reduced the net deferred tax assets, before valuation allowance, by $26.9 million. Due to full valuation allowance, the change in deferred taxes was fully offset by the change in valuation allowance. The 2017 Act has no significant impact on the 2017 financial statements. For financial reporting purposes, income (loss) before provision for income taxes for our foreign subsidiaries was $(0.1) million, $(0.4) million, and $0.1 million for the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017, unremitted earnings of foreign subsidiaries were approximately $0.3 million and have been included in our computation of the transition tax associated with the enactment of the Act discussed above. We do not provide for U.S. taxes on our unremitted earnings of foreign subsidiaries that have not been previously taxed since we intend to invest such undistributed earnings indefinitely outside of the U.S. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 8. Net Loss Per Share The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share Year Ended December 31, 2017 2016 2015 (in thousands, except per share amounts) Numerator: Net loss available to common stockholders $ (6,661 ) $ (15,343 ) $ (2,602 ) Denominator: Weighted average shares outstanding - basic 13,489 11,951 11,486 Potential common shares - options (treasury stock method) — — — Weighted average shares outstanding - diluted 13,489 11,951 11,486 Shares excluded (anti-dilutive) — — 17 Shares excluded due to an exercise price greater than weighted average stock price for the period 1,839 2,094 383 Net loss per common share: Basic $ (0.49 ) $ (1.28 ) $ (0.23 ) Diluted $ (0.49 ) $ (1.28 ) $ (0.23 ) |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 9. Employee Benefit Plans The Company offers its employees participation in a 401(k) plan, in which the Company matches the employee contributions at a rate of 20%, subject to a vesting schedule. Total employer contributions amounted to $0.2 million in each of the years ended December 31, 2017, 2016, and 2015. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation Stock Plans On June 18, 2015, our Shareholders approved the 2015 Omnibus Equity Incentive Plan (“2015 OEIP”). The 2015 OEIP, which became effective the same date, replaced the 2005 Stock Option / Stock Issuance Plan (“2005 Plan”) which was due to expire on July 28, 2015. All outstanding options under the 2005 Plan remain outstanding, but no new grants will be made under the 2005 Plan. The maximum number of shares of the Company’s common stock available for issuance over the term of the 2015 OEIP may not exceed 2,125,000 shares. The 2015 Plan provides for the issuance of full value awards (restricted stock, performance stock, dividend equivalent right or restricted stock units) and partial value awards (stock options or stock appreciation rights) to employees, non-employee members of the board and consultants. Any full value award settled in shares will be debited as 1.2 shares, and partial value awards settled in shares will be debited as 1.0 shares against the share reserve. The exercise price per share for stock option grants is not to be less than the fair market value per share of the Company’s common stock on the date of grant. The Board of Directors has the discretion to determine the vesting schedule. Stock options may be exercisable immediately or in installments, but generally vest over a four-year period from the date of grant. In the event the holder ceases to be employed by the Company, all unvested stock options terminate and all vested stock options may be exercised within a period of 90 days following termination. In general, stock options expire ten years from the date of grant. Restricted stock is valued using the closing stock price on the date of the grant. The total value is expensed over the vesting period of 12 to 48 months. Employee Stock Purchase Plan The Company has a shareholder approved employee stock purchase plan (“ESPP”), under which substantially all employees may purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning and end of six-month offering periods. An employee’s payroll deductions under the ESPP are limited to 10% of the employee’s compensation and employees may not purchase more than the lesser of $25,000 of stock, or 250 shares, for any purchase period. Additionally, no more than 250,000 shares may be purchased under the plan. Stock Compensation Expense The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and 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 Valuation of Stock Option and Restricted Stock Awards The assumptions used to compute the share-based compensation costs for the stock options granted during the years ended December 31, 2017, 2016, and 2015, respectively, using the Black-Scholes option pricing model, were as follows: Year Ended December 31, 2017 2016 2015 Weighted average grant date fair value of stock options — $ 1.40 $ 3.08 Assumptions — Risk-free interest rate (weighted average) — 1.1 % 1.1 % Expected dividend yield — — — Weighted average expected life (years) — 4.8 4.0 Volatility (weighted average) — 74.3 % 83.5 % Forfeiture rate — 23.0 % 23.3 % There were no stock options granted during 2017. The risk-free interest rate assumption was based on the United States Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. The Company assumed no dividend yield because it does not expect to pay dividends for the foreseeable future. The weighted average expected life is the vesting period for those options granted during that period. The average volatility is based on the actual historical volatility of our common stock. The forfeiture rate was based on modified employee turnover. Grants of restricted stock are valued using the closing stock price on the date of grant. In the year ended December 31, 2016, a total of 75,000 shares of restricted stock, with a total value of $51,000, were granted to non-employee members of the Board of Directors. This cost will be amortized over a period of 12 months. In addition, 300,000 shares of restricted stock, with a total value of $0.9 million, were granted to key officers and employees of the Company. This cost will be amortized over a period of 48 months. Valuation of ESPP The fair values are estimated at the beginning of each offering period using a Black-Scholes valuation model that uses the assumptions noted in the following table. The risk-free rate is based on the U.S. treasury yield curve in effect at the time of grant. Expected volatility was based on the historical volatility on the day of grant. Following is a schedule of the shares purchased, the fair value per share, and the Black-Scholes model assumptions for each offering period: September March 31, September March 31, September 30, March 31, Offering Period Ended 2017 2017 2016 2016 2015 2015 Shares purchased for offering period 2,000 2,002 3,536 3,498 3,113 2,804 Fair value per share $ 0.35 $ 0.72 $ 0.77 $ 1.24 $ 2.39 $ 1.72 Assumptions Risk-free interest rate (average) 0.89 % 0.47 % 0.47 % 0.18 % 0.11 % 0.40 % Expected dividend yield — — — — — — Weighted average expected life (years) 0.5 0.5 0.5 0.5 0.5 0.5 Volatility (average) 64.2 % 52.6 % 40.4 % 66.1 % 103.8 % 109.1 % Compensation Costs Non-cash stock-based compensation expenses related to stock options, restricted stock grants and the ESPP were recorded in the financial statements as follows (in thousands): Year Ended December 31, 2017 2016 2015 Cost of revenues $ 1 $ 3 $ 12 Selling and marketing (23 ) 277 335 Research and development 213 495 644 General and administrative 582 753 1,167 Restructuring expense 398 — — Total non-cash stock compensation expense $ 1,171 $ 1,528 $ 2,158 Total share-based compensation for each year includes cash payment of income taxes related to grants of restricted stock in the amounts of $0.0, $0.0, and $0.1 million for the years ended December 31, 2017, 2016, and 2015, respectively. Stock Options A summary of the Company’s stock options outstanding under the 2015 OEIP and 2005 Plan as of December 31, 2017 and the activity during the years ended herein are as follows (in thousands except per share amounts): Weighted Ave. Aggregate Shares Exercise Price Intrinsic Value Outstanding as of December 31, 2014 534 $ 21.16 $ — (322 options exercisable at a weighted average exercise price of $32.16) Granted (weighted average fair value of $3.08) 18 $ 5.08 Exercised (2 ) $ 4.76 Cancelled (139 ) $ 16.20 Outstanding as of December 31, 2015 411 $ 21.56 $ — (1,291 options exercisable at a weighted average exercise price of $8.04) Granted (weighted average fair value of $1.40) 33 $ 2.36 Exercised — $ — Cancelled (71 ) $ 8.04 Outstanding as of December 31, 2016 373 $ 22.51 $ — (307 options exercisable at a weighted average exercise price of $26.48) Granted — $ — Exercised — $ — Cancelled (234 ) $ 32.54 Outstanding as of December 31, 2017 139 $ 5.69 $ — Exercisable as of December 31, 2017 116 $ 6.16 $ — Vested and expected to vest at December 31, 2017 123 $ 4.48 $ — During the year ended December 31, 2017, no options were granted or exercised. As of December 31, 2017, there was $1.8 million of unrecognized compensation costs related to non-vested stock options and restricted stock granted under the Plans. At December 31, 2017, there were 1.7 million and 0 shares available for future grants under the 2015 OEIP and 2005 Plan, respectively. Restricted Stock Awards There were 88,000 restricted stock awards granted under the 2015 OEIP and 2005 Stock Plan in 2017. A summary of the Company’s restricted stock awards outstanding under the 2015 OEIP and 2005 Plan as of December 31, 2017, and the activity during years ended therein, are as follows (in thousands): Weighted Number grant date of shares fair value Unvested at December 31, 2014 431 $ 7.64 Granted 343 $ 6.00 Vested (252 ) $ 7.80 Cancelled and forfeited (71 ) $ 6.68 Unvested at December 31, 2015 451 $ 6.44 Granted 375 $ 2.70 Vested (253 ) $ 5.83 Cancelled and forfeited (139 ) $ 4.16 Unvested at December 31, 2016 434 $ 4.30 Granted 88 $ 1.11 Vested (329 ) $ 3.98 Cancelled and forfeited (26 ) $ 2.70 Unvested at December 31, 2017 167 $ 3.49 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. 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 December 31, 2017 are as follows (in thousands): Year Ending December 31, 2018 $ 2,435 2019 2,031 2020 1,728 2021 1,731 2022 33 Beyond — Total $ 7,958 As of December 31, 2017, $3.2 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 $2.6 million. Total rent expense was $1.1 million, $1.6 million, and $1.3 million for the years ended December 31, 2017, 2016, and 2015, respectively. As a condition of our lease in Pittsburgh, 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 remaining lease term. Pennsylvania Opportunity Grant Program On September 26, 2011, we received $1.0 million from the State of Pennsylvania to help fund our agreement to start-up a new facility. The grant carried with it an obligation, or commitment, to employ at least 232 people within a three-year time period that ended on December 31, 2013. We received an extension of time to meet this employment commitment by April 30, 2016. The grant contained conditions that would require us to return a pro-rata amount of the monies received if we failed to meet these conditions. As such, the monies had been recorded as a liability in the accrued liabilities line item on the balance sheet until we are irrevocably entitled to retain the monies, or until it is determined that we need to return a portion or all of the monies received. On June 27, 2016, we received a letter from the State of Pennsylvania requesting reimbursement of $0.3 million and said we earned the remaining $0.7 million of the original $1.0 million grant. 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 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. 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 and/or postretirement benefits 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. |
Segment, Customer Concentration
Segment, Customer Concentration and Geographical Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment, Customer Concentration and Geographical Information | 12. 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): Year Ended December 31, 2017 2016 2015 Wireless $ 18,342 $ 23,086 $ 33,553 Graphics 4,632 5,149 5,954 Total revenues 22,974 28,235 39,507 Cost of revenues 5,082 7,564 8,152 Gross profit $ 17,892 $ 20,671 $ 31,355 Customer Concentration Information A summary of the Company’s customers that represent 10% or more of the Company’s revenues is as follows: Year Ended December 31, 2017 2016 2015 Wireless: Sprint (& affiliates) 61 % 63 % 65 % Graphics: FastSpring 14 % 14 % 11 % The customers listed above comprised 72%, 80%, and 83% of our accounts receivable as of December 31, 2017, 2016, and 2015, respectively. Our major customers could reduce their orders of our products in favor of a competitor's product or for any other reason. The loss of any of our major customers or decisions by a significant customer to substantially reduce purchases could have a material adverse effect on our business. Geographical Information During the years ended December 31, 2017, 2016, and 2015, 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): Year Ended December 31, 2017 2016 2015 Americas $ 22,579 $ 27,618 $ 39,008 EMEA 170 424 239 Asia Pacific 225 193 260 Total revenues $ 22,974 $ 28,235 $ 39,507 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions On September 2, 2016, the Company entered into a Note and Warrant Purchase Agreement (the “Purchase Agreement”) with certain investors, including William W. Smith, Jr. and Dieva L. Smith (collectively, “Smith”). William W. Smith, Jr. is the Company’s Chairman of the Board, President and Chief Executive Officer. Pursuant to the Purchase Agreement, the Company issued and sold to Smith in a private placement a senior subordinated promissory note in the aggregate principal amount of $2.0 million (the “Debt Notes”) and a five-year warrant (the “Warrant”) 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 Debt Note and Warrant to Smith on September 6, 2016. Refer to Note 6, Equity Transactions, for additional details. In September 2017, the Debt Note issued to Smith was exchanged for shares of our Series B Preferred Stock in connection with the Series B Preferred Stock transaction described below, and is no longer outstanding. On December 6, 2016, the Company entered into a short-term secured borrowing arrangement with Smith pursuant to which Smith loaned the Company $1.0 million and the Company issued to Smith a Secured Promissory Note bearing interest at the rate of 18% per annum, which was due on December 14, 2016 and was secured by the Company’s accounts receivable and certain other assets. On February 7, 2017, the Company entered into a new short-term secured borrowing arrangement with Smith, and on February 8, 2017, the Company 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 $1.0 million and the Company issued to each of them a Secured Promissory Note (the “Original Notes”) bearing interest at the rate of 18% per annum. The Original Notes were due on March 24, 2017 and were secured by the Company’s accounts receivable and certain other assets. Steven L. Elfman is a director of the Company. The Original Notes for Elfman and Smith were amended to extend their maturity dates to June 23 and June 26, 2017, respectively. The Company’s borrowings under the Original Notes with Smith and Elfman were refinanced on June 30, 2017. In connection with such refinancing, the Company issued each of Smith and Elfman a new Secured Promissory Note in the amount of $1.0 million, bearing interest at the rate of 12% per annum and maturing on September 25, 2017 (each, a “Replacement Note”). Each of the Replacement Notes is secured by the Company’s accounts receivable and other assets. The maturity date under the Smith Replacement Note has been extended to July 25, 2018. The maturity date under the Elfman Replacement Note was extended to February 11, 2018. The Elfman Replacement Note has since been fully paid and is no longer outstanding. On May 16, 2017, the Company entered into a subscription agreement with Andrew Arno (“Arno”) in a private placement pursuant to which the Company issued and sold 50,000 shares of its common stock at a price per share of $1.10. Andrew Arno is a director of the Company. On August 23, 2017, the Company entered into a new borrowing arrangement with Smith, under which the Company borrowed $0.8 million and issued to Smith a new Secured Promissory Note, bearing interest at the rate of 12% per annum, and maturing on January 25, 2018. In September 2017, this new Secured Promissory Note was exchanged by Smith for shares of our Series B Preferred Stock in connection with the Series B Preferred Stock transaction described below, and is no longer outstanding. On August 24, 2017, the Company entered into a new borrowing arrangement with Arno, under which the Company borrowed $0.3 million and issued to Arno Secured Promissory Notes with an aggregate principal balance of $0.3 million, bearing interest at the rate of 12% per annum, and maturing on January 31, 2018. A portion of the debt under the Arno borrowing arrangement was exchanged by Arno for shares of our Series B Preferred Stock in connection with the Series B Preferred Stock transaction described below, and the maturity date for the remaining balance has been extended to July 25, 2018. On September 29, 2017, the Company exchanged shares of the Company’s newly designated Series B 10% Convertible Preferred Stock for outstanding indebtedness with a principal amount of $2.8 million owed to Smith and Arno for 2,750 and 50 shares, respectively, of Series B Preferred Stock. See also Note 15 for related party transactions that occurred subsequent to December 31, 2017. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 14. 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 for primarily related to severance costs and were all paid out by December 31, 2016. In the first quarter of fiscal 2017, the Board of Directors approved 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 will result in special charges totaling approximately $0.3 million to be recorded during the three-month period ending March 31, 2017. These charges are primarily related to severance costs and include $0.1 million of non-cash stock-based compensation severance. Following is the activity in our restructuring liability for the year ended December 31, 2017 (in thousands): December 31, 2016 December 31, 2017 Balance Provision, net Usage Balance Lease/rental terminations $ 1,786 $ (778 ) $ (304 ) $ 704 One-time employee termination benefits 65 721 (786 ) — Datacenter consolidation, other 109 (88 ) (21 ) — Total $ 1,960 $ (145 ) $ (1,111 ) $ 704 During the fourth quarter of 2017, the Company renewed and secured sublease contracts through the end of the lease expiration and consequently updated its future sublease assumptions resulting in $0.7 million of restructuring income on the consolidated statement of operations and comprehensive income. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events The Company evaluates and discloses subsequent events as required by ASC Topic No. 855, Subsequent Events On January 30, 2018, the Company entered into amendments to certain of its existing Secured Promissory Notes for the sole purpose of extending the relevant maturity dates. The Note dated August 18, 2017 issued to Steven L. Elfman and Monique P. Elfman was amended to extend the maturity date of the Note to February 11, 2018. The Note dated June 26, 2017 issued to William W. Smith, Jr. and Dieva L. Smith was amended to extend the maturity date to July 25, 2018. The Notes dated August 24, 2017 issued to Next Generation TC FBO Andrew Arno IRA 1663 and Andrew Arno were amended to extend the maturity date of each to July 25, 2018. On March 6, 2018, the Company completed a private placement with several investors, wherein a total of 2,857,144 shares of the Company’s common stock was issued at a purchase price of $1.75 per share, with each investor also receiving a warrant to purchase up to a number of shares of Common Stock equal to the number of shares of Common Stock purchased by such investor in the Offering at an exercise price of $2.17 per share, for a total purchase price of $5,000,000 (the “Offering”) . and The Company engaged Chardan Capital Markets, LLC (“Chardan”) as placement agent for the Offering pursuant to an engagement letter agreement. The Company agreed to pay Chardan a cash placement fee equal to 8.0% of the gross proceeds of the offering, and has issued to Chardan a warrant to purchase shares of Common Stock equal to 3.0% of the number of shares sold in the Offering (the “Chardan Warrant”). The Chardan Warrant will have exercise price of $2.365 per share, a term of 5.5 years from the closing date of the Offering, and otherwise identical terms to the warrants to be issued to the investors in the Offering. In connection with the Offering, on March 5, 2018, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with investors containing customary representations and warranties. Pursuant to the terms of the Purchase Agreement, the Company agreed to use its best efforts to cause the conversion of all shares of the Company’s Series B 10% Convertible Preferred Stock (the “Series B Preferred Stock”) into shares of Common Stock pursuant to the terms of the Company’s Certificate of Designation (the “Certificate of Designation”) with respect to the Series B Preferred Stock. In connection therewith, the Company has entered into Letter Agreements with each of William W. Smith, Jr. (“Smith”) and Andrew Arno (“Arno”), whereby each of Smith and Arno agree to take certain action to convert the shares of Series B Preferred Stock held by them pursuant to terms outlined in the Purchase Agreement, and further agreed that their shares upon conversion shall not be subject to resale registration rights. Pursuant to the terms of the Purchase Agreement, the Company has entered into voting agreements with each of its directors, executive officers and greater than 10% stockholders, by which each such person has agreed to vote all shares of Company capital stock held by them in favor of waiving any applicable beneficial ownership threshold in the Company’s existing Certificate of Designation for the Series B Preferred Stock. In addition, as a condition to closing, the following note holders amended their existing Secured Promissory Notes (the “Notes”) for the sole purpose of extending the relevant maturity dates to March 25, 2020: (i) Secured Promissory Note dated June 26, 2017, issued to Smith and Dieva L. Smith, as amended; (ii) Secured Promissory Note dated August 24, 2017, issued to Next Generation TC FBO Andrew Arno IRA 1663, as amended; and (iii) Secured Promissory Note, dated August 24, 2017 issued to Arno, as amended. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 16. Quarterly Financial Data (Unaudited) The following financial information reflects all normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of the results of the interim periods. Summarized quarterly data for fiscal 2017 and 2016 are as follows (in thousands, except per share data): Year Ended December 31, 2017 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Selected quarterly financial data: Revenues $ 5,576 $ 5,862 $ 5,804 $ 5,732 Gross profit $ 4,293 $ 4,577 $ 4,645 $ 4,377 Operating loss $ (2,578 ) $ (1,619 ) $ (942 ) $ (535 ) Net loss $ (2,880 ) $ (1,952 ) $ (1,670 ) $ (160 ) Net loss per share - basic (1) $ (0.24 ) $ (0.15 ) $ (0.12 ) $ (0.01 ) Weighted average shares outstanding - basic 12,163 13,179 14,297 14,281 Net loss per share - diluted (1) $ (0.24 ) $ (0.15 ) $ (0.12 ) $ (0.01 ) Weighted average shares outstanding - diluted 12,163 13,179 14,297 14,281 Year Ended December 31, 2016 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Selected quarterly financial data: Revenues $ 7,214 $ 7,459 $ 6,478 $ 7,084 Gross profit $ 5,101 $ 5,547 $ 4,680 $ 5,343 Operating loss $ (3,679 ) $ (3,907 ) $ (4,557 ) $ (3,762 ) Net loss $ (3,706 ) $ (3,279 ) $ (4,314 ) $ (3,725 ) Net loss per share - basic (1) $ (0.32 ) $ (0.28 ) $ (0.35 ) $ (0.30 ) Weighted average shares outstanding - basic 11,524 11,741 12,209 12,323 Net loss per share - diluted (1) $ (0.32 ) $ (0.28 ) $ (0.35 ) $ (0.30 ) Weighted average shares outstanding - diluted 11,524 11,741 12,209 12,323 (1) Basic and diluted net loss per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts will not necessarily equal the total for the year. F-1 |
Organization, Basis of Presen24
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company | The Company Smith Micro develops software to simplify and enhance the mobile experience, providing solutions to leading wireless service providers, device manufacturers, and wireless users around the world. From optimizing wireless networks to uncovering customer experience insights, and from providing visual access to wireless voicemail to ensuring family safety, our solutions enrich connected lifestyles while creating new opportunities to engage consumers via smartphones. We also provide a services platform for the Internet of Things (“IoT”) that enables comprehensive device management and firmware over-the-air (“FOTA”) updates for various types of connected devices. In addition, Smith Micro’s portfolio includes a wide range of products for creating, sharing, and monetizing rich content, such as visual messaging 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. For more than three decades, Smith Micro has developed deep expertise in embedded software for mobile devices, policy-based management platforms, and highly-scalable client and server applications. Tier 1 mobile network operators, cable providers, OEMs/device manufacturers, and enterprise businesses across a wide range of industries use our software to capitalize on the growth of connected consumers, mobile apps, vehicle telematics, and smart cities. In general, we help our customers: • Provide valuable digital lifestyle services, such as family location services, parental controls, and device security to mobile consumers; • Manage mobile devices over-the-air for maximum performance, efficiency, reliability and cost-effectiveness; • Provide easy visual access to wirelessly delivered voicemail messages, while also providing easy conversion of voice messages to text messages; • Optimize wireless networks, reduce operational costs, and deliver “best-connected” user experiences; • Efficiently and securely manage connected devices comprising the IoT; and • Design and create 2D and 3D digital illustrations, animation and figure design with easy-to-use, professional-grade graphics software. We continue to innovate and evolve our business to take advantage of industry trends and opportunities in emerging markets, such as digital lifestyle services and online safety, “Big Data” analytics, automotive telematics, and the industrial IoT. The key to our longevity, however, is not simply technological innovation, but a never-ending focus on customer value. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements reflect the operating results and financial position of Smith Micro and its wholly owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany amounts have been eliminated in consolidation. |
Foreign Currency Transactions | Foreign Currency Transactions The Company has international operations resulting from current and prior year acquisitions. The countries in which the Company has a subsidiary or branch office in are Serbia, Sweden, Portugal, the United Kingdom and Canada. The functional currency for all of these foreign entities is the U.S. dollar in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 830-30, Foreign Currency Matters-Translation of Financial Statements |
Business Combinations | Business Combinations The Company applies the provisions of FASB ASC Topic No. 805, Business Combinations , in the accounting for its acquisitions, which requires recognition of the assets acquired and the liabilities assumed at their acquisition date fair values, separately from goodwill. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period that exists up to twelve months from the acquisition date, the Company may record adjustments to the tangible and specifically identifiable intangible assets acquired and liabilities assumed with a corresponding adjustment to goodwill in the reporting period in which the adjusted amounts are determined. Upon the conclusion of the measurement period or final determination of the values of assets acquired and liabilities assumed, whichever comes first, the impact of any subsequent adjustments is included in the consolidated statements of operations. Costs to exit or restructure certain activities of an acquired company or the Company’s internal operations are accounted for as a one-time termination and exit cost pursuant to FASB ASC Topic No. 420, Exit or Disposal Cost Obligations , and are accounted for separately from the business combination. A liability for costs associated with an exit or disposal activity is recognized and measured at its fair value in the Company’s consolidated statement of operations in the period in which the liability is incurred. Uncertain income tax positions and tax-related valuation allowances that are acquired in connection with a business combination are initially estimated as of the acquisition date. The Company reevaluates these items quarterly based upon facts and circumstances that existed as of the acquisition date, with any adjustments to the preliminary estimates being recorded to goodwill if such adjustments occur within the 12-month measurement period. Subsequent to the end of the measurement period or the Company’s final determination of the value of the tax allowance or contingency, whichever comes first, changes to these uncertain tax positions and tax-related valuation allowances will affect the provision for income taxes in the consolidated statement of operations, and could have a material impact on results of operations and financial position. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments 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 upon the sale of an asset or the amount that would be 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 equivalents and short-term investments at fair value. Our cash equivalents and short-term investments are classified within Level 1 by using quoted market prices utilizing market observable inputs. As required by FASB ASC Topic No. 825, Financial Instruments As required by FASB ASC Topic No. 350, for goodwill and other intangibles impairment analysis, we utilize fair value measurements which are categorized within Level 3 of the fair value hierarchy. At December 31, 2017 and 2016, the carrying value and the aggregate fair value of the Company’s short and long-term debt were as follows (in thousands): As of December 31, 2017 As of December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities: Short-term debt - related party $ 1,000 $ 1,000 $ — $ — Long-term debt - related party 1,200 1,200 1,295 1,295 Long-term debt 1,558 1,558 1,295 1,295 Total long-term debt $ 3,758 $ 3,758 $ 2,590 $ 2,590 The carrying value of $3.8 million is net of debt discount of $0.4 million and debt issuance costs of $0.1 million as of December 31, 2017. The carrying value of $2.6 million is net of debt discount of $1.2 million and debt issuance costs of $0.2 million as of December 31, 2016. |
Significant Concentrations | Significant Concentrations For the year ended December 31, 2017, two customers, each accounting for over 10% of revenues, made up 75% of revenues and 72% of accounts receivable, and one service provider with more than 10% of purchases totaled 11% of accounts payable. For the year ended December 31, 2016, two customers, each accounting for over 10% of revenues, made up 77% of revenues and 80% of accounts receivable, and one service provider with more than 10% of purchases totaled 24% of accounts payable. For the year ended December 31, 2015, two customers, each accounting for over 10% of revenues, made up 76% of revenues and 83% of accounts receivable, and one service provider with more than 10% of purchases totaled 13% of accounts payable. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents generally consist of cash, government securities, mutual funds, and money market funds. These securities are primarily held in two financial institutions and are uninsured except for the minimum Federal Deposit Insurance Corporation coverage, and have original maturity dates of three months or less. As of December 31, 2017 and 2016, bank balances totaling approximately $2.0 million and $2.1 million, respectively, were uninsured. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts We sell our products worldwide. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history, the customer’s current credit worthiness and various other factors, as determined by our review of their current credit information. We continuously monitor collections and payments from our customers. We estimate credit losses and maintain an allowance for doubtful accounts reserve based upon these estimates. While such credit losses have historically been within our estimated reserves, we cannot guarantee that we will continue to experience the same credit loss rates that we have in the past. If not, this could have an adverse effect on our consolidated financial statements. Allowances for product returns are included in other adjustments to accounts receivable on the accompanying consolidated balance sheets. Product returns are estimated based on historical experience and have also been within management’s estimates. |
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. |
Internal Software Development Costs | Internal Software Development Costs Development costs incurred in the research and development of new software products and enhancements to existing software products are expensed as incurred until technological feasibility has been established. The Company considers technological feasibility to be established when all planning, designing, coding, and testing has been completed according to design specifications. After technological feasibility is established, any additional costs are capitalized. Through December 31, 2017, software has been substantially completed concurrently with the establishment of technological feasibility; accordingly, no costs have been capitalized to date. |
Impairment or Disposal of Long-Lived Assets | 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 |
Goodwill | Goodwill In accordance with FASB ASC Topic No. 350, Intangibles-Goodwill and Other |
Intangible Assets and Amortization | Intangible Assets and Amortization Amortization expense related to other intangibles acquired in acquisitions is calculated on a straight line basis over two to six years. Intangible assets are tested for impairment if events or circumstances occur indicating that the respective asset might be impaired. |
Derivatives | Derivatives 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 |
Going Concern Evaluation | Going Concern Evaluation In connection with preparing consolidated financial statements for the year ended December 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 eleven consecutive quarters. • Negative cash flow from operating activities for seven consecutive quarters. • Stock price below $1.00/share resulting in non-compliance with NASDAQ listing rules to maintain a stock price of $1.00/share. • Stockholders’ equity less than $2.5 million at March 31, 2017 and June 30, 2017, resulting in non-compliance with NASDAQ listing rules. • Revenue declines for two consecutive years, including a decline of 32% of revenue from the Company’s largest customer, in fiscal year 2016 compared to fiscal year 2015. 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 raised funds from short-term loans from related parties. • As a result of the Company’s restructurings that were 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 future revenue projections. • In May 2017, the Company issued $2.2 million in a private placement offering of its common stock. • In September 2017, the Company closed on a $5.5 million preferred stock transaction which converted $2.8 million of long and short-term debt, and received $2.7 million of new capital. • On March 5, 2018, the Company issued $5.0 million in a private placement offering of its common stock. In addition to the recent capital raised on March 5, 2018, management also believes that the Company will generate enough cash from operations to satisfy its obligations for the next twelve months from the issuance date. The Company will take the following actions if it starts to trend unfavorably 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. |
Revenue Recognition | Revenue Recognition We currently report our net revenues under two operating groups: Wireless and Graphics. Within each of these groups, software revenue is recognized based on the customer and contract type. We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed and determinable, and collectability is probable as required by FASB ASC Topic No. 605-985, Revenue Recognition-Software We have a limited number of multiple element agreements for which we have contracted to provide a perpetual license for use of proprietary software, to provide non-recurring engineering, and in some cases, to provide software maintenance (post contract support). For these software and software-related multiple element arrangements, we must: (1) determine whether and when each element has been delivered; (2) determine whether undelivered products or services are essential to the functionality of the delivered products and services; (3) determine the fair value of each undelivered element using vendor-specific objective evidence (“VSOE”); and (4) allocate the total price among the various elements. VSOE of fair value is used to allocate a portion of the price to the undelivered elements and the residual method is used to allocate the remaining portion to the delivered elements. Absent VSOE, revenue is deferred until the earlier of the point at which VSOE of fair value exists for any undelivered element or until all elements of the arrangement have been delivered. However, if the only undelivered element is post contract support, the entire arrangement fee is recognized ratably over the performance period. We determine VSOE for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial arrangement. In determining VSOE, we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range. We have established VSOE for our post contract support services and non-recurring engineering. On occasion, we enter into fixed fee arrangements, typically for trial purposes, in which customer payments are tied to the achievement of specific milestones. Revenue for these contracts is recognized based on customer acceptance of certain milestones as they are achieved. We also enter hosting arrangements that sometimes include up-front, non-refundable set-up fees. Revenue is recognized for these fees over the term of the agreement. For Graphics sales, management reviews available retail channel information and makes a determination of a return provision for sales made to distributors and retailers based on current channel inventory levels and historical return patterns. Certain sales to distributors or retailers are made on a consignment basis. Revenue for consignment sales are not recognized until sell through to the final customer is established. Certain revenues are booked net of revenue sharing payments. Sales directly to end users are recognized upon shipment. End users have a thirty-day right of return, but such returns are reasonably estimable and have historically been immaterial. We also provide technical support to our customers. Such costs have historically been insignificant. |
Sales Incentives | Sales Incentives For our Graphics sales, the cost of sales incentives the Company offers without charge to customers that can be used in, or that are exercisable by a customer as a result of, a single exchange transaction is accounted for as a reduction of revenue as required by FASB ASC Topic No. 605-50, Revenue Recognition-Customer Payments and Incentives |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and recognizes such awards 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 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40) In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment, In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815) |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), |
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 Year Ended December 31, 2017 2016 2015 (in thousands, except per share amounts) Numerator: Net loss available to common stockholders $ (6,661 ) $ (15,343 ) $ (2,602 ) Denominator: Weighted average shares outstanding - basic 13,489 11,951 11,486 Potential common shares - options (treasury stock method) — — — Weighted average shares outstanding - diluted 13,489 11,951 11,486 Shares excluded (anti-dilutive) — — 17 Shares excluded due to an exercise price greater than weighted average stock price for the period 1,839 2,094 383 Net loss per common share: Basic $ (0.49 ) $ (1.28 ) $ (0.23 ) Diluted $ (0.49 ) $ (1.28 ) $ (0.23 ) |
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 |
Organization, Basis of Presen25
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Aggregate Fair Value and Carrying Value of Short and Long-term Debt | At December 31, 2017 and 2016, the carrying value and the aggregate fair value of the Company’s short and long-term debt were as follows (in thousands): As of December 31, 2017 As of December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities: Short-term debt - related party $ 1,000 $ 1,000 $ — $ — Long-term debt - related party 1,200 1,200 1,295 1,295 Long-term debt 1,558 1,558 1,295 1,295 Total long-term debt $ 3,758 $ 3,758 $ 2,590 $ 2,590 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Acquisition [Line Items] | |
Summary of Consideration Paid for Acquisitions | The following table summarizes the consideration paid for acquisitions in 2016 (in thousands): Fair value of assets acquired $ 5,843 Fair value of liabilities assumed 1,525 Total purchase price $ 4,318 Allocation of purchase price: Cash $ 2,581 Common stock 1,737 Total purchase price $ 4,318 Cash consideration paid $ 2,581 Less: cash acquired (96 ) Cash consideration paid, net of cash acquired $ 2,485 |
Birdstep Technology AB [Member] | |
Business Acquisition [Line Items] | |
Summary of Allocation of Purchase Price | The Company’s allocation of the purchase price is summarized as follows (in thousands): Assets: Cash and cash equivalents $ 73 Accounts receivable 99 Income tax receivable 103 Prepaids and other current assets 311 Equipment and improvements 30 Intangible assets 670 Goodwill 1,991 Total assets $ 3,277 Liabilities: Accounts payable $ 223 Accrued liabilities 421 Deferred revenue 486 Deferred tax liability 147 Total liabilities $ 1,277 Total purchase price $ 2,000 |
iMobileMagic - Mobile Experiences LDA [Member] | |
Business Acquisition [Line Items] | |
Summary of Allocation of Purchase Price | The Company’s allocation of the purchase price is summarized as follows (in thousands): Assets: Cash and cash equivalents $ 23 Short term investments 1 Accounts receivable 156 Prepaids and other current assets 8 Intangible assets 683 Goodwill 1,695 Total assets $ 2,566 Liabilities: Accounts payable $ 13 Accrued liabilities 64 Deferred tax liability 171 Total liabilities $ 248 Total purchase price $ 2,318 |
Equipment and Improvements (Tab
Equipment and Improvements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Summary of Equipment and Improvements | Equipment and improvements consist of the following (in thousands): December 31, 2017 2016 Computer hardware, software, and equipment $ 14,617 $ 14,617 Leasehold improvements 5,316 5,315 Office furniture and fixtures 962 1,073 20,895 21,005 Less accumulated depreciation and amortization (19,666 ) (19,194 ) Equipment and improvements, net $ 1,229 $ 1,811 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 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 December 31, 2017 and December 31, 2016 (in thousands except for useful life data): December 31, 2017 December 31, 2016 Useful life (years) Gross Accumulated amortization Net book value before impairment Impairment charge in 2016 Net book value Gross Accumulated amortization Net book value before impairment Impairment charge Net book value Purchased technology 5-6 $ 265 $ (78 ) $ 187 $ — $ 187 $ 265 $ (32 ) $ 233 $ — $ 233 Customer relationships 3-6 999 (324 ) 675 (411 ) 264 999 (147 ) 852 (411 ) 441 Trademarks/trade names 2 38 (28 ) 10 — 10 38 (9 ) 29 — 29 Non-compete 3 51 (25 ) 26 — 26 51 (9 ) 42 — 42 Total $ 1,353 $ (455 ) $ 898 $ (411 ) $ 487 $ 1,353 $ (197 ) $ 1,156 $ (411 ) $ 745 |
Future Amortization Expense Related to Intangible Assets | Future amortization expense related to intangible assets as of December 31, 2017 are as follows (in thousands): Year Ending December 31, 2018 249 2019 143 2020 46 2021 40 2022 9 Beyond — Total $ 487 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Provision for Income Taxes | Income (loss) before provision for income taxes was generated from the following sources (in thousands): Year Ended December 31, 2017 2016 2015 Domestic $ (7,132 ) $ (15,145 ) $ (2,651 ) Foreign (75 ) (427 ) 117 Total loss before provision for income taxes $ (7,207 ) $ (15,572 ) $ (2,534 ) |
Summary of Income Tax Expense (Benefit) | A summary of the income tax expense (benefit) is as follows (in thousands): Year Ended December 31, 2017 2016 2015 Current: Federal $ — $ — $ — State (1 ) (153 ) 5 Foreign 40 61 63 Total current 39 (92 ) 68 Deferred: Federal (530 ) — — State — — — Foreign (55 ) (137 ) — Total deferred (585 ) (137 ) — Total provision $ (546 ) $ (229 ) $ 68 |
Federal Statutory Rate to Loss Before Income Taxes | A reconciliation of the provision for income taxes to the amount of income tax expense (benefit) that would result from applying the federal statutory rate to the loss before income taxes is as follows: Year Ended December 31, 2017 2016 2015 Federal statutory rate 35.0 % 35.0 % 35.0 State tax, net of federal benefit 3.9 4.6 (20.4 ) Equity compensation (4.5 ) (0.3 ) (13.7 ) International tax items (0.8 ) (1.0 ) (4.6 ) Foreign taxes 0.2 0.5 (2.5 ) Uncertain tax positions 0.0 1.1 0.0 Other 0.0 (0.2 ) (10.6 ) Miscellaneous (0.2 ) (0.5 ) (1.1 ) Effect of change in rate (372.4 ) 0.0 0.0 Change in valuation allowance 346.4 (37.7 ) 15.2 7.6 % 1.5 % (2.7 ) |
Components of Deferred Tax Assets and Liabilities | The major components of the Company’s deferred tax assets and liabilities are as follows (in thousands): Year Ended December 31, 2017 2016 Deferred income tax assets Net operating loss carry forwards $ 40,042 $ 54,165 Credit carry forwards 3,557 3,464 Fixed assets 531 985 Intangibles 8,446 15,894 Equity-based compensation 399 688 Nondeductible accruals 465 1,346 Various reserves 81 132 Other 2 22 Valuation allowance (52,948 ) (76,648 ) Total deferred income taxes - net 575 48 Deferred income tax liabilities Foreign intangibles (126 ) (181 ) Unrealized translation gain/loss (23 ) 9 Prepaid expenses (22 ) (57 ) Total deferred income liabilities (171 ) (229 ) Net deferred income tax assets (liabilities) $ 404 $ (181 ) |
Gross Unrecognized Tax Benefits Changes in Balances | The Company’s gross unrecognized tax benefits as of December 31, 2017 and 2016 and the changes in those balances are as follows (in thousands): Year Ended December 31, 2017 2016 Beginning balance $ 428 $ 592 Increases (decreases) in tax positions for the current year — (164 ) Increases (decreases) in tax positions for the prior year — — Gross unrecognized tax benefits, ending balance $ 428 $ 428 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Year Ended December 31, 2017 2016 2015 (in thousands, except per share amounts) Numerator: Net loss available to common stockholders $ (6,661 ) $ (15,343 ) $ (2,602 ) Denominator: Weighted average shares outstanding - basic 13,489 11,951 11,486 Potential common shares - options (treasury stock method) — — — Weighted average shares outstanding - diluted 13,489 11,951 11,486 Shares excluded (anti-dilutive) — — 17 Shares excluded due to an exercise price greater than weighted average stock price for the period 1,839 2,094 383 Net loss per common share: Basic $ (0.49 ) $ (1.28 ) $ (0.23 ) Diluted $ (0.49 ) $ (1.28 ) $ (0.23 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Assumptions Used to Compute Share-Based Compensation Costs for Stock Options Granted | The assumptions used to compute the share-based compensation costs for the stock options granted during the years ended December 31, 2017, 2016, and 2015, respectively, using the Black-Scholes option pricing model, were as follows: Year Ended December 31, 2017 2016 2015 Weighted average grant date fair value of stock options — $ 1.40 $ 3.08 Assumptions — Risk-free interest rate (weighted average) — 1.1 % 1.1 % Expected dividend yield — — — Weighted average expected life (years) — 4.8 4.0 Volatility (weighted average) — 74.3 % 83.5 % Forfeiture rate — 23.0 % 23.3 % |
Assumptions Used Estimate Fair Value of Employee Stock Purchase Plans | Following is a schedule of the shares purchased, the fair value per share, and the Black-Scholes model assumptions for each offering period: September March 31, September March 31, September 30, March 31, Offering Period Ended 2017 2017 2016 2016 2015 2015 Shares purchased for offering period 2,000 2,002 3,536 3,498 3,113 2,804 Fair value per share $ 0.35 $ 0.72 $ 0.77 $ 1.24 $ 2.39 $ 1.72 Assumptions Risk-free interest rate (average) 0.89 % 0.47 % 0.47 % 0.18 % 0.11 % 0.40 % Expected dividend yield — — — — — — Weighted average expected life (years) 0.5 0.5 0.5 0.5 0.5 0.5 Volatility (average) 64.2 % 52.6 % 40.4 % 66.1 % 103.8 % 109.1 % |
Non-Cash Stock-Based Compensation Expenses | Non-cash stock-based compensation expenses related to stock options, restricted stock grants and the ESPP were recorded in the financial statements as follows (in thousands): Year Ended December 31, 2017 2016 2015 Cost of revenues $ 1 $ 3 $ 12 Selling and marketing (23 ) 277 335 Research and development 213 495 644 General and administrative 582 753 1,167 Restructuring expense 398 — — Total non-cash stock compensation expense $ 1,171 $ 1,528 $ 2,158 |
Summary of Outstanding Stock Options and Related Activity | A summary of the Company’s stock options outstanding under the 2015 OEIP and 2005 Plan as of December 31, 2017 and the activity during the years ended herein are as follows (in thousands except per share amounts): Weighted Ave. Aggregate Shares Exercise Price Intrinsic Value Outstanding as of December 31, 2014 534 $ 21.16 $ — (322 options exercisable at a weighted average exercise price of $32.16) Granted (weighted average fair value of $3.08) 18 $ 5.08 Exercised (2 ) $ 4.76 Cancelled (139 ) $ 16.20 Outstanding as of December 31, 2015 411 $ 21.56 $ — (1,291 options exercisable at a weighted average exercise price of $8.04) Granted (weighted average fair value of $1.40) 33 $ 2.36 Exercised — $ — Cancelled (71 ) $ 8.04 Outstanding as of December 31, 2016 373 $ 22.51 $ — (307 options exercisable at a weighted average exercise price of $26.48) Granted — $ — Exercised — $ — Cancelled (234 ) $ 32.54 Outstanding as of December 31, 2017 139 $ 5.69 $ — Exercisable as of December 31, 2017 116 $ 6.16 $ — Vested and expected to vest at December 31, 2017 123 $ 4.48 $ — |
Summary of Outstanding Restricted Stock Awards and Related Activity | A summary of the Company’s restricted stock awards outstanding under the 2015 OEIP and 2005 Plan as of December 31, 2017, and the activity during years ended therein, are as follows (in thousands): Weighted Number grant date of shares fair value Unvested at December 31, 2014 431 $ 7.64 Granted 343 $ 6.00 Vested (252 ) $ 7.80 Cancelled and forfeited (71 ) $ 6.68 Unvested at December 31, 2015 451 $ 6.44 Granted 375 $ 2.70 Vested (253 ) $ 5.83 Cancelled and forfeited (139 ) $ 4.16 Unvested at December 31, 2016 434 $ 4.30 Granted 88 $ 1.11 Vested (329 ) $ 3.98 Cancelled and forfeited (26 ) $ 2.70 Unvested at December 31, 2017 167 $ 3.49 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 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 December 31, 2017 are as follows (in thousands): Year Ending December 31, 2018 $ 2,435 2019 2,031 2020 1,728 2021 1,731 2022 33 Beyond — Total $ 7,958 |
Segment, Customer Concentrati33
Segment, Customer Concentration and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenues Generated by Each Business Unit | The following table shows the revenues generated by each business unit (in thousands): Year Ended December 31, 2017 2016 2015 Wireless $ 18,342 $ 23,086 $ 33,553 Graphics 4,632 5,149 5,954 Total revenues 22,974 28,235 39,507 Cost of revenues 5,082 7,564 8,152 Gross profit $ 17,892 $ 20,671 $ 31,355 |
Company's Customers that Represent 10% or More of Company's Revenues | A summary of the Company’s customers that represent 10% or more of the Company’s revenues is as follows: Year Ended December 31, 2017 2016 2015 Wireless: Sprint (& affiliates) 61 % 63 % 65 % Graphics: FastSpring 14 % 14 % 11 % |
Company Revenue in Different Geographic Locations | Revenues attributed to the geographic location of the customer’s bill-to address, were as follows (in thousands): Year Ended December 31, 2017 2016 2015 Americas $ 22,579 $ 27,618 $ 39,008 EMEA 170 424 239 Asia Pacific 225 193 260 Total revenues $ 22,974 $ 28,235 $ 39,507 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Activity in Restructuring Liability Account | Following is the activity in our restructuring liability for the year ended December 31, 2017 (in thousands): December 31, 2016 December 31, 2017 Balance Provision, net Usage Balance Lease/rental terminations $ 1,786 $ (778 ) $ (304 ) $ 704 One-time employee termination benefits 65 721 (786 ) — Datacenter consolidation, other 109 (88 ) (21 ) — Total $ 1,960 $ (145 ) $ (1,111 ) $ 704 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Information | Summarized quarterly data for fiscal 2017 and 2016 are as follows (in thousands, except per share data): Year Ended December 31, 2017 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Selected quarterly financial data: Revenues $ 5,576 $ 5,862 $ 5,804 $ 5,732 Gross profit $ 4,293 $ 4,577 $ 4,645 $ 4,377 Operating loss $ (2,578 ) $ (1,619 ) $ (942 ) $ (535 ) Net loss $ (2,880 ) $ (1,952 ) $ (1,670 ) $ (160 ) Net loss per share - basic (1) $ (0.24 ) $ (0.15 ) $ (0.12 ) $ (0.01 ) Weighted average shares outstanding - basic 12,163 13,179 14,297 14,281 Net loss per share - diluted (1) $ (0.24 ) $ (0.15 ) $ (0.12 ) $ (0.01 ) Weighted average shares outstanding - diluted 12,163 13,179 14,297 14,281 Year Ended December 31, 2016 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Selected quarterly financial data: Revenues $ 7,214 $ 7,459 $ 6,478 $ 7,084 Gross profit $ 5,101 $ 5,547 $ 4,680 $ 5,343 Operating loss $ (3,679 ) $ (3,907 ) $ (4,557 ) $ (3,762 ) Net loss $ (3,706 ) $ (3,279 ) $ (4,314 ) $ (3,725 ) Net loss per share - basic (1) $ (0.32 ) $ (0.28 ) $ (0.35 ) $ (0.30 ) Weighted average shares outstanding - basic 11,524 11,741 12,209 12,323 Net loss per share - diluted (1) $ (0.32 ) $ (0.28 ) $ (0.35 ) $ (0.30 ) Weighted average shares outstanding - diluted 11,524 11,741 12,209 12,323 (1) Basic and diluted net loss per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts will not necessarily equal the total for the year. F-1 |
Organization, Basis of Presen36
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | Mar. 05, 2018USD ($) | Sep. 30, 2017USD ($) | May 31, 2017USD ($) | Dec. 31, 2017USD ($)CustomerServiceProviderInstitutionBusiness_Unit$ / shares | Dec. 31, 2016USD ($)CustomerServiceProvider | Dec. 31, 2015USD ($)CustomerServiceProvider | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2014USD ($) |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Experience in operation period | 30 years | ||||||||
Debt discount | $ 400,000 | $ 1,200,000 | |||||||
Long-term debt, net, carrying amount | 3,800,000 | 2,600,000 | |||||||
Debt issuance costs | $ 100,000 | $ 200,000 | |||||||
Number of customers concentrated | Customer | 2 | 2 | 2 | ||||||
Number of service providers concentrated | ServiceProvider | 1 | 1 | 1 | ||||||
Financial institutions to held securities | Institution | 2 | ||||||||
Cash and cash equivalents original maturity dates | Three months or less | ||||||||
Bank balances | $ 2,000,000 | $ 2,100,000 | |||||||
Costs capitalized | $ 0 | ||||||||
Substantial doubt about going concern, management's evaluation | In connection with preparing consolidated financial statements for the year ended December 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 eleven consecutive quarters.  Negative cash flow from operating activities for seven consecutive quarters.  Stock price below $1.00/share resulting in non-compliance with NASDAQ listing rules to maintain a stock price of $1.00/share.  Stockholders’ equity less than $2.5 million at March 31, 2017 and June 30, 2017, resulting in non-compliance with NASDAQ listing rules.  Revenue declines for two consecutive years, including a decline of 32% of revenue from the Company’s largest customer, in fiscal year 2016 compared to fiscal year 2015. 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 raised funds from short-term loans from related parties.  As a result of the Company’s restructurings that were 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 future revenue projections.  In May 2017, the Company issued $2.2 million in a private placement offering of its common stock.  In September 2017, the Company closed on a $5.5 million preferred stock transaction which converted $2.8 million of long and short-term debt, and received $2.7 million of new capital.  On March 5, 2018, the Company issued $5.0 million in a private placement offering of its common stock. In addition to the recent capital raised on March 5, 2018, management also believes that the Company will generate enough cash from operations to satisfy its obligations for the next twelve months from the issuance date. | ||||||||
Number of consecutive period of operating losses | 33 months | ||||||||
Number of consecutive period of negative cash flows from operating activities | 21 months | ||||||||
Stock price | $ / shares | $ 1 | ||||||||
Stockholders’ equity | $ 4,567,000 | 3,059,000 | $ 14,026,000 | $ 14,902,000 | |||||
Debt financing | 4,000,000 | ||||||||
Common shares issued in stock offering,net of offering costs | $ 1,992,000 | ||||||||
Preferred stock transaction | $ 5,500,000 | ||||||||
Debt instrument, principal amount | 2,800,000 | ||||||||
New equity capital raised | $ 2,700,000 | ||||||||
Substantial doubt about going concern, management's plans, substantial doubt not alleviated | The Company will take the following actions if it starts to trend unfavorably 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: ď‚· Raise additional capital through short-term loans. ď‚· Implement additional restructuring and cost reductions. ď‚· Raise additional capital through a private placement. ď‚· Secure a commercial bank line of credit. ď‚· Dispose of one or more product lines. ď‚· Sell or license intellectual property. | ||||||||
Number of operating groups | Business_Unit | 2 | ||||||||
Graphics [Member] | |||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Total sales incentives | $ 300,000 | $ 300,000 | $ 200,000 | ||||||
Private Placement [Member] | |||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Common shares issued in stock offering,net of offering costs | $ 2,200,000 | ||||||||
Private Placement [Member] | Subsequent Event [Member] | |||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Common shares issued in stock offering,net of offering costs | $ 5,000,000 | ||||||||
Largest Customer [Member] | |||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of decline of revenue | 32.00% | 32.00% | |||||||
Customer Relationships Intangible Asset [Member] | |||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Asset impairment charges | $ 400,000 | ||||||||
Customer Concentration Risk [Member] | Revenues [Member] | |||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Concentration percentage | 75.00% | 77.00% | 76.00% | ||||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Concentration percentage | 72.00% | 80.00% | 83.00% | ||||||
Supplier concentration risk [Member] | Accounts payable [Member] | |||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Concentration percentage | 11.00% | 24.00% | 13.00% | ||||||
Minimum [Member] | |||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives of the assets | 3 years | ||||||||
Intangible assets and amortization, useful life | 2 years | ||||||||
Minimum [Member] | Customer Concentration Risk [Member] | Revenues [Member] | |||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Concentration percentage | 10.00% | 10.00% | 10.00% | ||||||
Minimum [Member] | Supplier concentration risk [Member] | Purchase [Member] | |||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Concentration percentage | 10.00% | 10.00% | 10.00% | ||||||
Maximum [Member] | |||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives of the assets | 7 years | ||||||||
Intangible assets and amortization, useful life | 6 years | ||||||||
Stockholders’ equity | $ 2,500,000 | $ 2,500,000 |
Organization, Basis of Presen37
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Aggregate Fair Value and Carrying Value of Short and Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Short-term debt - related party | $ 1,000 | |
Long-term debt - related party | 1,200 | $ 1,295 |
Long-term debt | 1,558 | 1,295 |
Total long-term debt | 3,758 | 2,590 |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Short-term debt - related party | 1,000 | |
Long-term debt - related party | 1,200 | 1,295 |
Long-term debt | 1,558 | 1,295 |
Total long-term debt | $ 3,758 | $ 2,590 |
Acquisitions - Summary of Consi
Acquisitions - Summary of Consideration Paid for Acquisitions (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Business Combinations [Abstract] | |
Fair value of assets acquired | $ 5,843 |
Fair value of liabilities assumed | 1,525 |
Total purchase price | 4,318 |
Allocation of purchase price: | |
Cash | 2,581 |
Common stock | 1,737 |
Total purchase price | 4,318 |
Cash consideration paid | 2,581 |
Less: cash acquired | (96) |
Cash consideration paid, net of cash acquired | $ 2,485 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | Jul. 19, 2016USD ($)Employee | Apr. 07, 2016USD ($) | Dec. 31, 2017 | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | ||||
Total purchase price | $ 4,318 | |||
Total cash consideration | 2,485 | |||
Birdstep Technology AB [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition agreement date | Mar. 8, 2016 | |||
Business acquisition, equity interests acquired | 100.00% | |||
Total purchase price | $ 2,000 | |||
Birdstep Technology AB [Member] | General and Administrative [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs | 200 | |||
iMobileMagic - Mobile Experiences LDA [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition agreement date | Jul. 19, 2016 | |||
Business acquisition, equity interests acquired | 100.00% | |||
Acquisition-related costs | $ 200 | |||
Purchase price in cash | $ 2,300 | |||
Total cash consideration | 600 | |||
Buyers common stock initial shares | 600 | |||
Buyers common stock in escrow | $ 1,100 | |||
Number of employees | Employee | 16 |
Acquisitions - Summary of Alloc
Acquisitions - Summary of Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 19, 2016 | Apr. 07, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 3,685 | $ 3,686 | ||
Total assets | 5,843 | |||
Total liabilities | $ 1,525 | |||
Birdstep Technology AB [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 73 | |||
Accounts receivable | 99 | |||
Income tax receivable | 103 | |||
Prepaids and other current assets | 311 | |||
Equipment and improvements | 30 | |||
Intangible assets | 670 | |||
Goodwill | 1,991 | |||
Total assets | 3,277 | |||
Accounts payable | 223 | |||
Accrued liabilities | 421 | |||
Deferred revenue | 486 | |||
Deferred tax liability | 147 | |||
Total liabilities | 1,277 | |||
Total purchase price | $ 2,000 | |||
iMobileMagic - Mobile Experiences LDA [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 23 | |||
Short term investments | 1 | |||
Accounts receivable | 156 | |||
Prepaids and other current assets | 8 | |||
Intangible assets | 683 | |||
Goodwill | 1,695 | |||
Total assets | 2,566 | |||
Accounts payable | 13 | |||
Accrued liabilities | 64 | |||
Deferred tax liability | 171 | |||
Total liabilities | 248 | |||
Total purchase price | $ 2,318 |
Equipment and Improvements - Su
Equipment and Improvements - Summary of Equipment and Improvements (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Gross, Total | $ 20,895 | $ 21,005 |
Less accumulated depreciation and amortization | (19,666) | (19,194) |
Equipment and improvements, net | 1,229 | 1,811 |
Computer Hardware, Software, and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross, Total | 14,617 | 14,617 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross, Total | 5,316 | 5,315 |
Office Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross, Total | $ 962 | $ 1,073 |
Equipment and Improvements - Ad
Equipment and Improvements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization expense on equipment and improvements | $ 0.7 | $ 1.2 | $ 1.9 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets by Major Asset Class (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,353 | $ 1,353 |
Accumulated amortization | (455) | (197) |
Net book value before impairment | 898 | 1,156 |
Impairment charge | (411) | (411) |
Net book value | $ 487 | 745 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 2 years | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 6 years | |
Purchased Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 265 | 265 |
Accumulated amortization | (78) | (32) |
Net book value before impairment | 187 | 233 |
Net book value | $ 187 | 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 | $ 999 | 999 |
Accumulated amortization | (324) | (147) |
Net book value before impairment | 675 | 852 |
Impairment charge | (411) | (411) |
Net book value | $ 264 | 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 | (28) | (9) |
Net book value before impairment | 10 | 29 |
Net book value | $ 10 | 29 |
Non-Compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | |
Gross | $ 51 | 51 |
Accumulated amortization | (25) | (9) |
Net book value before impairment | 26 | 42 |
Net book value | $ 26 | $ 42 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible assets amortization expense | $ 300,000 | $ 200,000 |
Impairment of goodwill | $ 0 | |
Birdstep Technology AB [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Impairment loss of intangible assets | $ 400,000 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets - Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets Net [Abstract] | ||
2,018 | $ 249 | |
2,019 | 143 | |
2,020 | 46 | |
2,021 | 40 | |
2,022 | 9 | |
Net book value | $ 487 | $ 745 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Sep. 29, 2017 | Aug. 24, 2017 | Aug. 23, 2017 | Aug. 22, 2017 | Aug. 21, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Feb. 08, 2017 | Feb. 07, 2017 | Sep. 06, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | Sep. 02, 2016 |
Debt Instrument [Line Items] | ||||||||||||||
Aggregate principal amount | $ 2,800,000 | |||||||||||||
Proceeds from short term secured borrowing arrangement | $ 1,200,000 | $ 1,903,000 | ||||||||||||
Loss on related party debt extinguishment | (405,000) | |||||||||||||
Long-term debt, net, carrying amount | 3,800,000 | 2,600,000 | ||||||||||||
Debt issuance costs | 100,000 | 200,000 | ||||||||||||
Debt discount | 400,000 | $ 1,200,000 | ||||||||||||
Short-term Related Party Loan Extinguishment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Fair value of equity interest exchanged | 800,000 | |||||||||||||
Reduction in fair value due to allocation of legal fees and other direct issuance costs | 100,000 | |||||||||||||
Loss on related party debt extinguishment | 100,000 | |||||||||||||
Long-term Related Party Loan Extinguishment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Reduction in fair value due to allocation of legal fees and other direct issuance costs | 100,000 | |||||||||||||
Loss on related party debt extinguishment | 400,000 | |||||||||||||
Fair value of equity interest transferred | 2,000,000 | |||||||||||||
Long-term debt, net, carrying amount | 1,500,000 | |||||||||||||
Debt issuance costs | 100,000 | |||||||||||||
Debt discount | $ 400,000 | |||||||||||||
Series B 10% Convertible Preferred Stock [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Preferred stock, dividend rate | 10.00% | |||||||||||||
William W. and Dieva L. Smith [Member] | Short-term Indebtedness [Member] | Series B 10% Convertible Preferred Stock [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate principal amount | $ 800,000 | |||||||||||||
Preferred stock, shares issued upon convertible debt | 750 | |||||||||||||
William W. and Dieva L. Smith [Member] | Long-term Indebtedness [Member] | Series B 10% Convertible Preferred Stock [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate principal amount | $ 2,000,000 | |||||||||||||
Preferred stock, shares issued upon convertible debt | 2,000 | |||||||||||||
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 | |||||||||||||
Debt instrument extended maturity date | Jun. 26, 2017 | |||||||||||||
William W. and Dieva L. Smith [Member] | Secured Promissory Note [Member] | New Short-term Secured Borrowing Arrangement [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate per annum | 12.00% | 12.00% | ||||||||||||
Notes due date | Jan. 25, 2018 | Jan. 25, 2018 | Sep. 25, 2017 | Sep. 25, 2017 | ||||||||||
Aggregate principal amount | $ 1,000,000 | |||||||||||||
Notes due date, description | The maturity date of the Replacement Note entered into with Smith may be extended by up to 180 days upon the mutual consent of the Company and Smith. Each of the Replacement Notes are secured by the Company’s accounts receivable and certain other assets. | |||||||||||||
Proceeds from short term secured borrowing arrangement | $ 800,000 | |||||||||||||
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 | |||||||||||||
Interest rate per annum | 12.00% | 18.00% | ||||||||||||
Notes due date | Sep. 25, 2017 | Mar. 24, 2017 | Mar. 24, 2017 | |||||||||||
Debt instrument extended maturity date | Feb. 11, 2018 | Jun. 23, 2017 | ||||||||||||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | $ 1,000,000 | ||||||||||||
Steven L. and Monique P. Elfman [Member] | Secured Promissory Note [Member] | New Short-term Secured Borrowing Arrangement Matured on June 23, 2017 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | |||||||||||||
Notes due date | Jun. 23, 2017 | |||||||||||||
Steven L. and Monique P. Elfman [Member] | Secured Promissory Note [Member] | New Short-term Secured Borrowing Arrangement [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate per annum | 12.00% | |||||||||||||
Notes due date | Jan. 25, 2018 | Sep. 25, 2017 | Sep. 25, 2017 | |||||||||||
Aggregate principal amount | $ 1,000,000 | |||||||||||||
Andrew Arno [Member] | Short-term Indebtedness [Member] | Series B 10% Convertible Preferred Stock [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate principal amount | $ 100,000 | |||||||||||||
Preferred stock, shares issued upon convertible debt | 50 | |||||||||||||
Andrew Arno [Member] | Secured Promissory Note [Member] | New Short-term Secured Borrowing Arrangement [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate per annum | 12.00% | |||||||||||||
Notes due date | Jan. 31, 2018 | |||||||||||||
Aggregate principal amount | $ 300,000 | |||||||||||||
Proceeds from short term secured borrowing arrangement | $ 300,000 | |||||||||||||
Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith [Member] | Note and Warrant Purchase Agreement [Member] | Senior Subordinated Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate per annum | 10.00% | |||||||||||||
Notes due date | Sep. 6, 2019 | |||||||||||||
Aggregate principal amount | $ 4,000,000 | |||||||||||||
Notes maturity period | 3 years |
Equity Transactions - Additiona
Equity Transactions - Additional Information (Detail) | Sep. 29, 2017USD ($)$ / sharesshares | May 17, 2017USD ($)shares | May 16, 2017Investor$ / sharesshares | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)Triggering_Event$ / shares | May 31, 2017$ / shares | Sep. 02, 2016USD ($)$ / sharesshares |
Class of Stock [Line Items] | |||||||
Preferred stock, issued and sold to investors, purchase price | $ 5,500,000 | ||||||
Gross proceeds from issuance of preferred stock | 2,700,000 | ||||||
Debt instrument, principal amount | $ 2,800,000 | ||||||
Net proceeds from issuance of preferred stock | $ 2,413,000 | ||||||
Gross proceeds before deducting transaction fees and other expenses | $ 2,300,000 | ||||||
Offering cost related to the transaction | 200,000 | ||||||
Transaction fees | 100,000 | ||||||
Legal and other expenses | 100,000 | ||||||
Cash from issuance of common stock, net of offering costs | $ 2,100,000 | ||||||
Warrants term | 5 years | ||||||
Warrants exercisable beginning date | Nov. 18, 2017 | ||||||
Number of triggering events for issuance of warrants | Triggering_Event | 5 | ||||||
Warrants [Member] | |||||||
Class of Stock [Line Items] | |||||||
Triggering event charges | $ 3,000 | ||||||
Investors [Member] | Note and Warrant Purchase Agreement [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock exercise price | $ / shares | $ 2.74 | ||||||
Warrants expiration period | 5 years | ||||||
Purchase of warrants | shares | 1,700,000 | ||||||
Notes and warrants issuance date | Sep. 6, 2016 | ||||||
Investors [Member] | Note and Warrant Purchase Agreement [Member] | Senior Subordinated Notes [Member] | |||||||
Class of Stock [Line Items] | |||||||
Debt instrument, principal amount | $ 4,000,000 | ||||||
Unterberg Warrant [Member] | |||||||
Class of Stock [Line Items] | |||||||
Adjusted exercise price | $ / shares | $ 2.14 | ||||||
Smith Warrant [Member] | |||||||
Class of Stock [Line Items] | |||||||
Adjusted exercise price | $ / shares | 2.38 | ||||||
Series B Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, dividend rate | 10.00% | ||||||
Preferred stock, conversion price per share | $ / shares | $ 1.14 | $ 1.14 | |||||
Convertible preferred stock, terms of conversion | In the event that the trading price of the Company’s Common Stock for 20 consecutive trading days (as determined in the Certificate of Designation) exceeds 400% of the then effective Conversion Price of the Series B Preferred Stock (initially set at $1.14), the Company may force conversion of the Series B Preferred Stock into shares of Common Stock or elect to redeem the Series B Preferred Stock for cash. | ||||||
Preferred stock threshold consecutive trading days | 20 days | ||||||
Trading price of common stock exceeds conversion price, percentage | 400.00% | ||||||
Convertible preferred stock, right to increase in dividend percentage upon stock price trigger | 12.00% | ||||||
Triggering event charges | $ 41,000 | ||||||
Series B Preferred Stock [Member] | Andrew Arno [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares converted into common stock | shares | 50 | ||||||
Series B Preferred Stock [Member] | Smith Warrant [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares converted into common stock | shares | 2,750 | ||||||
Offering [Member] | |||||||
Class of Stock [Line Items] | |||||||
Gross proceeds from issuance of preferred stock | $ 2,700,000 | ||||||
Net proceeds from issuance of preferred stock | 2,500,000 | ||||||
Offering [Member] | Andrew Arno [Member] | |||||||
Class of Stock [Line Items] | |||||||
Debt instrument, principal amount | 100,000 | ||||||
Offering [Member] | Smith Warrant [Member] | |||||||
Class of Stock [Line Items] | |||||||
Debt instrument, principal amount | $ 2,800,000 | ||||||
Offering [Member] | Series B Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, issued and sold to investors | shares | 5,500 | ||||||
Preferred stock, dividend rate | 10.00% | ||||||
Preferred stock, price per share | $ / shares | $ 1,000 | ||||||
Preferred stock, issued and sold to investors, purchase price | $ 5,500,000 | ||||||
Preferred stock, conversion price per share | $ / shares | $ 1.14 | ||||||
Preferred stock, shares converted into common stock | shares | 4,824,562 | ||||||
Preferred stock, dividend payment terms | The holders of Series B Preferred Stock are entitled to receive cumulative dividends out of funds legally available thereof at a rate of ten percent (10%) per annum, payable (i) when and as declared by the Board of Directors, in quarterly installments on March 1, June 1, September 1 and December 1, (ii) upon conversion into Common Stock with respect the Series B Preferred Stock being converted, and (iii) upon redemption of the Series B Preferred Stock by the Company. | ||||||
Private Placement [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock, issued and sold to investors | shares | 85,000 | ||||||
Common stock, price per share | $ / shares | $ 1.10 | ||||||
Number of accredited investors | Investor | 4 | ||||||
Private Placement [Member] | Andrew Arno [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock, issued and sold to investors | shares | 50,000 | ||||||
Common stock, price per share | $ / shares | $ 1.10 | ||||||
Registered Direct Offering [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock, issued and sold to investors | shares | 2,077,000 | ||||||
Sutter [Member] | |||||||
Class of Stock [Line Items] | |||||||
Percentage of warrants to purchase shares of common stock on number of shares sold | 5.00% | ||||||
Common stock exercise price | $ / shares | $ 1.21 | ||||||
Common stock offering price per share | $ / shares | $ 1.10 | ||||||
Chardan [Member] | |||||||
Class of Stock [Line Items] | |||||||
Percentage of warrants to purchase shares of common stock on number of shares sold | 5.00% | ||||||
Common stock exercise price | $ / shares | $ 1.155 | ||||||
Common stock offering price per share | $ / shares | $ 1.05 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (7,132) | $ (15,145) | $ (2,651) |
Foreign | (75) | (427) | 117 |
Loss before provision for income taxes | $ (7,207) | $ (15,572) | $ (2,534) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 0 | $ 0 | |
State | $ (1) | (153) | 5 |
Foreign | 40 | 61 | 63 |
Total current | 39 | (92) | 68 |
Deferred: | |||
Federal | (530) | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | (55) | (137) | 0 |
Total deferred | (585) | (137) | 0 |
Total provision | $ (546) | $ (229) | $ 68 |
Income Taxes - Federal Statutor
Income Taxes - Federal Statutory Rate to Loss Before Income Taxes (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State tax, net of federal benefit | 3.90% | 4.60% | (20.40%) |
Equity compensation | (4.50%) | (0.30%) | (13.70%) |
International tax items | (0.80%) | (1.00%) | (4.60%) |
Foreign taxes | 0.20% | 0.50% | (2.50%) |
Uncertain tax positions | 0.00% | 1.10% | 0.00% |
Other | 0.00% | (0.20%) | (10.60%) |
Miscellaneous | (0.20%) | (0.50%) | (1.10%) |
Effect of change in rate | (372.40%) | 0.00% | 0.00% |
Change in valuation allowance | 346.40% | (37.70%) | 15.20% |
Total | 7.60% | 1.50% | (2.70%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets | ||
Net operating loss carry forwards | $ 40,042 | $ 54,165 |
Credit carry forwards | 3,557 | 3,464 |
Fixed assets | 531 | 985 |
Intangibles | 8,446 | 15,894 |
Equity-based compensation | 399 | 688 |
Nondeductible accruals | 465 | 1,346 |
Various reserves | 81 | 132 |
Other | 2 | 22 |
Valuation allowance | (52,948) | (76,648) |
Total deferred income taxes - net | 575 | 48 |
Deferred income tax liabilities | ||
Foreign intangibles | (126) | (181) |
Unrealized translation loss | 9 | |
Unrealized translation gain | (23) | |
Prepaid expenses | (22) | (57) |
Total deferred income liabilities | (171) | (229) |
Net deferred income tax assets (liabilities) | $ 404 | |
Net deferred income tax liabilities | $ (181) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||
Alternative minimum tax credit carryforwards | $ 500,000 | ||||
Tax credit carryforwards, Expire year | 2,027 | ||||
Unrecognized tax benefits | $ 428,000 | $ 428,000 | $ 592,000 | ||
Valuation allowance | 52,948,000 | 76,648,000 | |||
Increase (decrease) in valuation allowance of deferred tax assets | (23,700,000) | 1,700,000 | $ (800,000) | ||
Interest and penalties | 0 | 0 | |||
Cumulative interest and penalties | $ 0 | $ 0 | |||
Unrecognized tax benefits impacted due to expiration of statute of limitations | $ 164,000,000 | ||||
Corporate tax rate | 35.00% | 35.00% | 35.00% | ||
Reduced net deferred tax assets due to change in coporate tax rate | $ 26,900,000 | ||||
Income (loss) before provision for income taxes for foreign subsidiaries | (75,000) | $ (427,000) | $ 117,000 | ||
Unremitted earnings | 300,000 | ||||
Scenario, Forecast [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Corporate tax rate | 21.00% | ||||
Federal [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | $ 151,000,000 | ||||
Net operating loss carryforwards, expiry terms | Federal NOL carryforwards will expire from 2024 through 2037 | ||||
Tax credit carryforwards | $ 2,500,000 | ||||
Federal income tax returns subject to examination description | Federal income tax returns of the Company are subject to IRS examination for the 2013 – 2016 tax years | ||||
State [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | $ 147,800,000 | ||||
Net operating loss carryforwards, expiry terms | State NOL carryforwards will expire 2017 through 2037 | ||||
Tax credit carryforwards | $ 700,000 | ||||
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 |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Benefits Changes in Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 428 | $ 592 |
Increases (decreases) in tax positions for the current year | (164) | |
Increases (decreases) in tax positions for the prior year | 0 | 0 |
Gross unrecognized tax benefits, ending balance | $ 428 | $ 428 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net loss available to common stockholders | $ (160) | $ (1,670) | $ (1,952) | $ (2,880) | $ (3,725) | $ (4,314) | $ (3,279) | $ (3,706) | $ (6,661) | $ (15,343) | $ (2,602) |
Denominator: | |||||||||||
Weighted average shares outstanding - basic | 14,281 | 14,297 | 13,179 | 12,163 | 12,323 | 12,209 | 11,741 | 11,524 | 13,489 | 11,951 | 11,486 |
Weighted average shares outstanding - diluted | 14,281 | 14,297 | 13,179 | 12,163 | 12,323 | 12,209 | 11,741 | 11,524 | 13,489 | 11,951 | 11,486 |
Shares excluded (anti-dilutive) | 17 | ||||||||||
Shares excluded due to an exercise price greater than weighted average stock price for the period | 1,839 | 2,094 | 383 | ||||||||
Net loss per common share: | |||||||||||
Basic | $ (0.01) | $ (0.12) | $ (0.15) | $ (0.24) | $ (0.30) | $ (0.35) | $ (0.28) | $ (0.32) | $ (0.49) | $ (1.28) | $ (0.23) |
Diluted | $ (0.01) | $ (0.12) | $ (0.15) | $ (0.24) | $ (0.30) | $ (0.35) | $ (0.28) | $ (0.32) | $ (0.49) | $ (1.28) | $ (0.23) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employers matching contribution percentage to 401(k) plan | 20.00% | ||
Total employer contributions to 401(k) plan | $ 0.2 | $ 0.2 | $ 0.2 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 18, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted | 0 | 33,000 | 18,000 | |
Exercise of common stock options, shares | 2,000 | |||
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for issuance under plan | 250,000 | |||
Percentage of market value | 85.00% | |||
Percentage of employee's payroll deductions limited to employee's compensation | 10.00% | |||
Maximum Stock value of shares purchased by employees if one thousand shares purchased | $ 25,000 | |||
Maximum number of shares that employee can purchase each period | 250 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash payment of income taxes related to grants included in share-based compensation | $ 0 | $ 0 | $ 100,000 | |
Restricted Stock [Member] | Board of Directors non-employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 12 months | |||
Restricted stock shares granted | 75,000 | |||
Value of restricted stock granted | $ 51,000 | |||
Restricted Stock [Member] | Key officers and employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 48 months | |||
Restricted stock shares granted | 300,000 | |||
Value of restricted stock granted | $ 900,000 | |||
Stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise of common stock options, shares | 0 | |||
Unrecognized compensation costs related to non-vested awards granted | $ 1,800,000 | |||
2015 Omnibus Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
1995 Stock option expiry date | Jul. 28, 2015 | |||
Maximum number of shares available for issuance under plan | 2,125,000 | |||
Number of shares available for future grants | 1,700,000 | |||
2015 Omnibus Equity Incentive Plan [Member] | Full Value Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award settled against shares | 1.2 | |||
2015 Omnibus Equity Incentive Plan [Member] | Partial Value Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award settled against shares | 1 | |||
2015 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 4 years | |||
Stock option expiration period | 10 years | |||
2015 Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 48 months | |||
Vested stock options exercised period following termination | 90 days | |||
2015 Plan [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 12 months | |||
2005 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for future grants | 0 | |||
2015 Omnibus Equity Incentive Plan and 2005 Stock Option Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock shares granted | 88,000 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Compute Share-Based Compensation Costs for Stock Options Granted (Detail) - $ / shares | 6 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||
Weighted average grant date fair value of stock options | $ 1.40 | $ 3.08 | ||||||
Assumptions | ||||||||
Risk-free interest rate (weighted average) | 0.89% | 0.47% | 0.47% | 0.18% | 0.11% | 0.40% | 1.10% | 1.10% |
Weighted average expected life (years) | 6 months | 6 months | 6 months | 6 months | 6 months | 6 months | 4 years 9 months 18 days | 4 years |
Volatility (weighted average) | 64.20% | 52.60% | 40.40% | 66.10% | 103.80% | 109.10% | 74.30% | 83.50% |
Forfeiture rate | 23.00% | 23.30% |
Stock-Based Compensation - As58
Stock-Based Compensation - Assumptions Used Estimate Fair Value of Employee Stock Purchase Plans (Detail) - $ / shares shares in Thousands | 6 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||
Shares purchased for offering period | 2,000 | 2,002 | 3,536 | 3,498 | 3,113 | 2,804 | ||
Fair value per share | $ 0.35 | $ 0.72 | $ 0.77 | $ 1.24 | $ 2.39 | $ 1.72 | ||
Assumptions | ||||||||
Risk-free interest rate (average) | 0.89% | 0.47% | 0.47% | 0.18% | 0.11% | 0.40% | 1.10% | 1.10% |
Weighted average expected life (years) | 6 months | 6 months | 6 months | 6 months | 6 months | 6 months | 4 years 9 months 18 days | 4 years |
Volatility (average) | 64.20% | 52.60% | 40.40% | 66.10% | 103.80% | 109.10% | 74.30% | 83.50% |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-Cash Stock-Based Compensation Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total non-cash stock compensation expense | $ 1,171 | $ 1,528 | $ 2,158 |
Cost of Revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total non-cash stock compensation expense | 1 | 3 | 12 |
Selling and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total non-cash stock compensation expense | (23) | 277 | 335 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total non-cash stock compensation expense | 213 | 495 | 644 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total non-cash stock compensation expense | 582 | $ 753 | $ 1,167 |
Restructuring Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total non-cash stock compensation expense | $ 398 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Outstanding Stock Options and Related Activity (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Outstanding Shares, beginning balance | 373,000 | 411,000 | 534,000 | |
Granted Shares | 0 | 33,000 | 18,000 | |
Exercised Shares | (2,000) | |||
Cancelled Shares | (234,000) | (71,000) | (139,000) | |
Outstanding Shares, ending balance | 139,000 | 373,000 | 411,000 | |
Exercisable Shares | 116,000 | 307,000 | 1,291,000 | 322,000 |
Vested and expected to vest Shares | 123,000 | |||
Outstanding Weighted Ave. Exercise Price, beginning balance | $ 22.51 | $ 21.56 | $ 21.16 | |
Granted, Weighted Ave. Exercise Price | 2.36 | 5.08 | ||
Exercised, Weighted Ave. Exercise Price | 4.76 | |||
Cancelled, Weighted Ave. Exercise Price | 32.54 | 8.04 | 16.20 | |
Outstanding Weighted Ave. Exercise Price, ending balance | 5.69 | 22.51 | 21.56 | |
Exercisable, Weighted Ave. Exercise Price | 6.16 | $ 26.48 | $ 8.04 | $ 32.16 |
Vested and expected to vest, Weighted Ave. Exercise Price | $ 4.48 |
Stock-Based Compensation - Su61
Stock-Based Compensation - Summary of Outstanding Stock Options and Related Activity (Parenthetical) (Detail) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Exercisable, options | 307 | 1,291 | 116 | 322 |
Exercisable, weighted average exercise price | $ 26.48 | $ 8.04 | $ 6.16 | $ 32.16 |
Weighted average grant-date fair value of stock options granted | $ 1.40 | $ 3.08 |
Stock-Based Compensation - Su62
Stock-Based Compensation - Summary of Outstanding Restricted Stock Awards and Related Activity (Detail) - Restricted Stock [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, beginning balance | 434 | 451 | 431 |
Number of shares, Granted | 88 | 375 | 343 |
Number of shares, Vested | (329) | (253) | (252) |
Number of shares, Cancelled and forfeited | (26) | (139) | (71) |
Number of shares, ending balance | 167 | 434 | 451 |
Weighted average grant date fair value, beginning balance | $ 4.30 | $ 6.44 | $ 7.64 |
Weighted average grant date fair value, Granted | 1.11 | 2.70 | 6 |
Weighted average grant date fair value, Vested | 3.98 | 5.83 | 7.80 |
Weighted average grant date fair value, Cancelled and forfeited | 2.70 | 4.16 | 6.68 |
Weighted average grant date fair value, ending balance | $ 3.49 | $ 4.30 | $ 6.44 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Sep. 19, 2016USD ($)Installment | Dec. 31, 2017USD ($)$ / ft² | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2013Number_Of_People | Jun. 27, 2016USD ($) | Sep. 26, 2011USD ($) |
Leases [Abstract] | |||||||
Expiration of non-cancellable operating leases | Through 2,022 | ||||||
Accrued lease commitments expense | $ 3.2 | ||||||
Estimated sublease income | 2.6 | ||||||
Rent expense under operating leases | $ 1.1 | $ 1.6 | $ 1.3 | ||||
Incentives per square feet | $ / ft² | 40 | ||||||
Incentives for improvements to space | $ 2.2 | ||||||
Amount received to start-up new facility | $ 1 | $ 1 | |||||
Minimum number of people to be employed | Number_Of_People | 232 | ||||||
Time period to meet employment commitment | 3 years | ||||||
New deadline to meet employment commitment | Apr. 30, 2016 | ||||||
Funds to be repaid under the agreement | $ 0.3 | ||||||
Interest rate of funds under the agreement | 0.00% | ||||||
Number of equal quarterly installments | Installment | 20 | ||||||
Grant earned under agreement | $ 0.7 |
Commitments and Contingencies64
Commitments and Contingencies - Company Lease of Buildings under Non-Cancellable Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 2,435 |
2,019 | 2,031 |
2,020 | 1,728 |
2,021 | 1,731 |
2,022 | 33 |
Total | $ 7,958 |
Segment, Customer Concentrati65
Segment, Customer Concentration and Geographical Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017Business_UnitLocation | Dec. 31, 2016Location | Dec. 31, 2015Location | |
Revenue, Major Customer [Line Items] | |||
Number of primary business units | Business_Unit | 2 | ||
Number of geographic locations | Location | 3 | 3 | 3 |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 72.00% | 80.00% | 83.00% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Sprint and Fast Spring [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 72.00% | 80.00% | 83.00% |
Segment, Customer Concentrati66
Segment, Customer Concentration and Geographical Information - Revenues Generated by Each Business Unit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | $ 5,732 | $ 5,804 | $ 5,862 | $ 5,576 | $ 7,084 | $ 6,478 | $ 7,459 | $ 7,214 | $ 22,974 | $ 28,235 | $ 39,507 |
Cost of revenues | 5,082 | 7,564 | 8,152 | ||||||||
Gross profit | $ 4,377 | $ 4,645 | $ 4,577 | $ 4,293 | $ 5,343 | $ 4,680 | $ 5,547 | $ 5,101 | 17,892 | 20,671 | 31,355 |
Wireless [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 18,342 | 23,086 | 33,553 | ||||||||
Graphics [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | $ 4,632 | $ 5,149 | $ 5,954 |
Segment, Customer Concentrati67
Segment, Customer Concentration and Geographical Information - Company's Customers that Represent 10% or More of Company's Revenues (Detail) - Revenues [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | |||
Customer concentrating on 10% or more of revenue | 75.00% | 77.00% | 76.00% |
Wireless [Member] | Sprint and Affiliates [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer concentrating on 10% or more of revenue | 61.00% | 63.00% | 65.00% |
Graphics [Member] | FastSpring [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer concentrating on 10% or more of revenue | 14.00% | 14.00% | 11.00% |
Segment, Customer Concentrati68
Segment, Customer Concentration and Geographical Information - Company Revenue in Different Geographic Locations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | $ 5,732 | $ 5,804 | $ 5,862 | $ 5,576 | $ 7,084 | $ 6,478 | $ 7,459 | $ 7,214 | $ 22,974 | $ 28,235 | $ 39,507 |
Americas [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 22,579 | 27,618 | 39,008 | ||||||||
EMEA [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 170 | 424 | 239 | ||||||||
Asia Pacific [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | $ 225 | $ 193 | $ 260 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Sep. 29, 2017 | Aug. 24, 2017 | Aug. 23, 2017 | Aug. 22, 2017 | Aug. 21, 2017 | Jun. 30, 2017 | May 16, 2017 | Mar. 31, 2017 | Mar. 25, 2017 | Feb. 08, 2017 | Feb. 07, 2017 | Dec. 06, 2016 | Sep. 02, 2016 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 2,800,000 | |||||||||||||||
Preferred stock transaction | 5,500,000 | |||||||||||||||
Proceeds from short term secured borrowing arrangement | $ 1,200,000 | $ 1,903,000 | ||||||||||||||
Private Placement [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Common stock, issued and sold to investors | 85,000 | |||||||||||||||
Common stock, price per share | $ 1.10 | |||||||||||||||
Series B 10% Convertible Preferred Stock [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Preferred stock, dividend rate | 10.00% | |||||||||||||||
William W. Smith, Jr. and Dieva L. Smith [Member] | Secured Promissory Note [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||||||||||||
Interest rate per annum | 12.00% | 18.00% | 18.00% | |||||||||||||
Notes due date | Sep. 25, 2017 | Mar. 24, 2017 | Dec. 14, 2016 | |||||||||||||
Debt instrument extended maturity date | Jul. 25, 2018 | Jun. 26, 2017 | ||||||||||||||
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 | 12.00% | 18.00% | ||||||||||||||
Notes due date | Sep. 25, 2017 | Mar. 24, 2017 | Mar. 24, 2017 | |||||||||||||
Debt instrument extended maturity date | Feb. 11, 2018 | Jun. 23, 2017 | ||||||||||||||
Andrew Arno [Member] | Private Placement [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Common stock, issued and sold to investors | 50,000 | |||||||||||||||
Common stock, price per share | $ 1.10 | |||||||||||||||
Andrew Arno [Member] | Series B 10% Convertible Preferred Stock [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Preferred stock, shares issued upon convertible debt | 50 | |||||||||||||||
William W. and Dieva L. Smith [Member] | Secured Promissory Note [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Interest rate per annum | 18.00% | |||||||||||||||
Notes due date | Mar. 24, 2017 | |||||||||||||||
Debt instrument extended maturity date | Jun. 26, 2017 | |||||||||||||||
William W. and Dieva L. Smith [Member] | Series B 10% Convertible Preferred Stock [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Preferred stock, shares issued upon convertible debt | 2,750 | |||||||||||||||
William W And Dieva L Smith and Andrew Arno [Member] | Series B 10% Convertible Preferred Stock [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 2,800,000 | |||||||||||||||
Note and Warrant Purchase Agreement [Member] | William W. Smith, Jr. and Dieva L. Smith [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 | |||||||||||||||
Note and Warrant Purchase Agreement [Member] | William W. Smith, Jr. and Dieva L. Smith [Member] | Series B 10% Convertible Preferred Stock [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Preferred stock transaction | 0 | |||||||||||||||
Note and Warrant Purchase Agreement [Member] | Senior Subordinated Notes [Member] | William W. Smith, Jr. and Dieva L. Smith [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 2,000,000 | |||||||||||||||
New Short-term Secured Borrowing Arrangement [Member] | Steven L. and Monique P. Elfman [Member] | Secured Promissory Note [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 1,000,000 | |||||||||||||||
Interest rate per annum | 12.00% | |||||||||||||||
Notes due date | Jan. 25, 2018 | Sep. 25, 2017 | Sep. 25, 2017 | |||||||||||||
New Short-term Secured Borrowing Arrangement [Member] | Andrew Arno [Member] | Secured Promissory Note [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 300,000 | |||||||||||||||
Proceeds from short term secured borrowing arrangement | $ 300,000 | |||||||||||||||
Interest rate per annum | 12.00% | |||||||||||||||
Notes due date | Jan. 31, 2018 | |||||||||||||||
New Short-term Secured Borrowing Arrangement [Member] | Andrew Arno [Member] | Series B 10% Convertible Preferred Stock [Member] | Secured Promissory Note [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Debt instrument extended maturity date | Jul. 25, 2018 | |||||||||||||||
New Short-term Secured Borrowing Arrangement [Member] | William W. and Dieva L. Smith [Member] | Secured Promissory Note [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 1,000,000 | |||||||||||||||
Proceeds from short term secured borrowing arrangement | $ 800,000 | |||||||||||||||
Interest rate per annum | 12.00% | 12.00% | ||||||||||||||
Notes due date | Jan. 25, 2018 | Jan. 25, 2018 | Sep. 25, 2017 | Sep. 25, 2017 | ||||||||||||
New Short-term Secured Borrowing Arrangement [Member] | William W. and Dieva L. Smith [Member] | Series B 10% Convertible Preferred Stock [Member] | Secured Promissory Note [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Preferred stock transaction | $ 0 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ / qtr in Millions, $ in Millions | 3 Months Ended | ||
Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($)$ / qtr | Dec. 31, 2016USD ($)$ / qtr | |
Restructuring Cost and Reserve [Line Items] | |||
Reductions in company's worldwide workforce | 16.00% | 30.00% | |
Reduction of overall cost structure | $ / qtr | 2.5 | ||
Special charges for restructuring plan | $ | $ 0.3 | $ 0.3 | |
Non-cash stock based compensation expense | $ | $ 0.1 | ||
Restructuring income | $ | $ 0.7 | ||
Minimum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reduction of overall cost structure | $ / qtr | 0.9 | ||
Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reduction of overall cost structure | $ / qtr | 1 |
Restructuring - Activity in Res
Restructuring - Activity in Restructuring Liability Accounts (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | $ 1,960 |
Provision, net | (145) |
Usage | (1,111) |
Ending Balance | 704 |
Lease/Rental Terminations [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 1,786 |
Provision, net | (778) |
Usage | (304) |
Ending Balance | 704 |
One-Time Employee Termination Benefits [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 65 |
Provision, net | 721 |
Usage | (786) |
Datacenter Consolidation, Other [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 109 |
Provision, net | (88) |
Usage | $ (21) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Mar. 06, 2018 | Mar. 05, 2018 | Jan. 30, 2018 | Jan. 29, 2018 | Sep. 29, 2017 | Jun. 30, 2017 | May 17, 2017 | May 16, 2017 | Mar. 31, 2017 | Mar. 25, 2017 | Feb. 08, 2017 | Feb. 07, 2017 | Dec. 06, 2016 | Dec. 31, 2017 |
Subsequent Event [Line Items] | ||||||||||||||
Gross proceeds before deducting placement agent fee and offering expenses | $ 2,300,000 | |||||||||||||
Cash from issuance of common stock, net of offering costs | $ 2,100,000 | |||||||||||||
Warrants term | 5 years | |||||||||||||
Series B 10% Convertible Preferred Stock [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Preferred stock, dividend rate | 10.00% | |||||||||||||
Common Stock [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Common shares issued in stock offering, net offering costs, shares | 2,162,000 | |||||||||||||
Private Placement [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Common shares issued in stock offering, net offering costs, shares | 85,000 | |||||||||||||
Common stock, price per share | $ 1.10 | |||||||||||||
Chardan [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Common stock exercise price | $ 1.155 | |||||||||||||
Percentage of warrants to purchase shares of common stock on number of shares sold | 5.00% | |||||||||||||
Subsequent Event [Member] | Series B 10% Convertible Preferred Stock [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Preferred stock, dividend rate | 10.00% | |||||||||||||
Subsequent Event [Member] | Private Placement [Member] | Common Stock [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Common shares issued in stock offering, net offering costs, shares | 2,857,144 | |||||||||||||
Common stock, price per share | $ 1.75 | |||||||||||||
Subsequent Event [Member] | Offering [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Gross proceeds before deducting placement agent fee and offering expenses | $ 5,000,000 | |||||||||||||
Cash from issuance of common stock, net of offering costs | $ 4,475,000 | |||||||||||||
Subsequent Event [Member] | Offering [Member] | Common Stock [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Common stock exercise price | $ 2.17 | |||||||||||||
Subsequent Event [Member] | Chardan [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Common stock exercise price | $ 2.365 | |||||||||||||
Percentage of gross proceeds of offering | 8.00% | |||||||||||||
Percentage of warrants to purchase shares of common stock on number of shares sold | 3.00% | |||||||||||||
Warrants term | 5 years 6 months | |||||||||||||
Andrew Arno [Member] | Private Placement [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Common shares issued in stock offering, net offering costs, shares | 50,000 | |||||||||||||
Common stock, price per share | $ 1.10 | |||||||||||||
Secured Promissory Note [Member] | Steven L. and Monique P. Elfman [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Notes due date | Sep. 25, 2017 | Mar. 24, 2017 | Mar. 24, 2017 | |||||||||||
Debt instrument extended maturity date | Feb. 11, 2018 | Jun. 23, 2017 | ||||||||||||
Secured Promissory Note [Member] | Steven L. and Monique P. Elfman [Member] | Subsequent Event [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Notes due date | Feb. 11, 2018 | Aug. 18, 2017 | ||||||||||||
Secured Promissory Note [Member] | William W. Smith, Jr. and Dieva L. Smith [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Notes due date | Sep. 25, 2017 | Mar. 24, 2017 | Dec. 14, 2016 | |||||||||||
Debt instrument extended maturity date | Jul. 25, 2018 | Jun. 26, 2017 | ||||||||||||
Secured Promissory Note [Member] | William W. Smith, Jr. and Dieva L. Smith [Member] | Subsequent Event [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Notes due date | Jul. 25, 2018 | Jun. 26, 2017 | ||||||||||||
Debt instrument extended maturity date | Mar. 25, 2020 | |||||||||||||
Secured Promissory Note [Member] | Next Generation TC FBO Andrew Arno IRA 1663 [Member] | Subsequent Event [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Notes due date | Jul. 25, 2018 | Aug. 24, 2017 | ||||||||||||
Debt instrument extended maturity date | Mar. 25, 2020 | |||||||||||||
Secured Promissory Note [Member] | Andrew Arno [Member] | Subsequent Event [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Notes due date | Jul. 25, 2018 | Aug. 24, 2017 | ||||||||||||
Debt instrument extended maturity date | Mar. 25, 2020 |
Quarterly Financial Data - Summ
Quarterly Financial Data - Summarized Quarterly Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 5,732 | $ 5,804 | $ 5,862 | $ 5,576 | $ 7,084 | $ 6,478 | $ 7,459 | $ 7,214 | $ 22,974 | $ 28,235 | $ 39,507 |
Gross profit | 4,377 | 4,645 | 4,577 | 4,293 | 5,343 | 4,680 | 5,547 | 5,101 | 17,892 | 20,671 | 31,355 |
Operating loss | (535) | (942) | (1,619) | (2,578) | (3,762) | (4,557) | (3,907) | (3,679) | (5,674) | (15,905) | (2,538) |
Net loss | $ (160) | $ (1,670) | $ (1,952) | $ (2,880) | $ (3,725) | $ (4,314) | $ (3,279) | $ (3,706) | $ (6,661) | $ (15,343) | $ (2,602) |
Net loss per share - basic | $ (0.01) | $ (0.12) | $ (0.15) | $ (0.24) | $ (0.30) | $ (0.35) | $ (0.28) | $ (0.32) | $ (0.49) | $ (1.28) | $ (0.23) |
Weighted average shares outstanding - basic | 14,281 | 14,297 | 13,179 | 12,163 | 12,323 | 12,209 | 11,741 | 11,524 | 13,489 | 11,951 | 11,486 |
Net loss per share - diluted | $ (0.01) | $ (0.12) | $ (0.15) | $ (0.24) | $ (0.30) | $ (0.35) | $ (0.28) | $ (0.32) | $ (0.49) | $ (1.28) | $ (0.23) |
Weighted average shares outstanding - diluted | 14,281 | 14,297 | 13,179 | 12,163 | 12,323 | 12,209 | 11,741 | 11,524 | 13,489 | 11,951 | 11,486 |