Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 21, 2016 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | One Horizon Group, Inc. | ||
Entity Central Index Key | 225,211 | ||
Document Type | 10-K | ||
Trading Symbol | OHGI | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 70,580,000 | ||
Entity Common Stock, Shares Outstanding | 35,045,423 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 1,772 | $ 3,172 |
Accounts receivable, net | 3,560 | 9,072 |
Other assets | 402 | 576 |
Total current assets | 5,734 | 12,820 |
Property and equipment, net | 96 | 212 |
Intangible assets, net | 9,823 | 10,960 |
Investment | 18 | 19 |
Debt issue costs | 263 | 395 |
Total assets | 15,934 | 24,406 |
Current liabilities: | ||
Accounts payable | 223 | 556 |
Accrued expenses | 220 | 360 |
Accrued compensation | 18 | 15 |
Income taxes | 90 | 93 |
Amount due to related parties, current portion | 600 | |
Current portion of long-term debt | 5 | 73 |
Total current liabilities | 556 | 1,697 |
Long-term liabilities | ||
Long term debt, net of current portion | 108 | |
Amount due to related parties, net of current portion | 2,354 | 2,598 |
Convertible debenture | 2,899 | 2,598 |
Deferred income taxes | 215 | 235 |
Mandatorily redeemable preferred shares | 73 | 90 |
Total liabilities | 6,097 | 7,326 |
One Horizon Group, Inc. stockholders' equity | ||
Preferred stock: $0.0001 par value, authorized 50,000,000; issued and outstanding 170,940 shares | 1 | 1 |
Common stock: $0.0001 par value, authorized 200,000,000 shares, issued and outstanding 35,147,283 shares (2014: 33,281,069); | 3 | 3 |
Additional paid-in capital | 36,070 | 32,163 |
Deferred Compensation | (214) | |
Retained Earnings (Deficit) | (26,201) | (15,227) |
Accumulated other comprehensive income | (36) | 63 |
Total One Horizon Group, Inc. stockholders' equity | 9,837 | 16,789 |
Non-controlling interest | 291 | |
Total stockholders' equity | 9,837 | 17,080 |
Total liabilities and stockholders' equity | $ 15,934 | $ 24,406 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock: par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock: authorized | 50,000,000 | 50,000,000 |
Preferred stock: issued | 170,940 | 170,940 |
Preferred stock: outstanding | 170,940 | 170,940 |
Common stock: par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock: authorized | 200,000,000 | 200,000,000 |
Common stock: issued | 35,147,283 | 33,281,069 |
Common stock: outstanding | 35,147,283 | 33,281,069 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||
Revenue | $ 1,532 | $ 5,122 |
Cost of revenue | ||
Hardware | 116 | 362 |
Amortization of intangibles | 2,111 | 1,890 |
Total cost of revenue | 2,227 | 2,252 |
Gross margin | (695) | 2,870 |
Expenses: | ||
General and administrative | 3,326 | 4,374 |
Increase in Allowance for doubtful accounts | 5,562 | 180 |
Depreciation | 67 | 146 |
Research and development | 579 | 379 |
Total expenses | 9,534 | 5,079 |
Loss from operations | (10,229) | (2,209) |
Other income and expense: | ||
Interest expense | (722) | (16) |
Interest expense - related parties | (2) | 36 |
Gain on settlement of lease | 36 | |
Foreign exchange | (29) | 8 |
Interest income | 2 | 2 |
Total other income and expense | (715) | 30 |
Loss from continuing operations before income taxes | (10,944) | (2,179) |
Income taxes (recovery) | (20) | (210) |
Net loss for the year | (10,924) | (1,969) |
Loss attributable to non-controlling interest | (50) | (105) |
Net loss for the year attributable to One Horizon Group, Inc. | (10,874) | (1,864) |
Less: Preferred dividends | (100) | (44) |
Net loss attributable to One Horizon Group, Inc. Common stockholders | $ (10,974) | $ (1,908) |
Earnings per share | ||
Basic net loss per share (in dollars per share) | $ (0.32) | $ (0.06) |
Diluted net loss per share (in dollars per share) | $ (0.30) | $ (0.06) |
Weighted average number of shares outstanding | ||
Basic and diluted (in shares) | 33,996 | 32,981 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Comprehensive Income Loss | ||
Net loss | $ (10,924) | $ (1,969) |
Other comprehensive (loss): | ||
Foreign currency translation adjustment gain (loss) | (99) | (1,074) |
Comprehensive loss | (11,023) | (3,043) |
Comprehensive loss attributable to the non-controlling interest | (50) | (105) |
Total comprehensive loss | $ (10,973) | $ (2,938) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Deferred Compensation [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-controlling Interest [Member] | Total |
Balance at beginning at Dec. 31, 2013 | $ 3 | $ 28,269 | $ (13,319) | $ 1,137 | $ 396 | $ 16,486 | ||
Balance at beginning (in shares) at Dec. 31, 2013 | 32,921 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (1,864) | (105) | (1,969) | |||||
Foreign currency translations | (1,074) | (1,074) | ||||||
Preferred dividends | (44) | (44) | ||||||
Common stock issued for services received | 65 | $ 65 | ||||||
Common stock issued for services received (in shares) | 15 | 15,000 | ||||||
Common stock issued for services to be received in the future | 323 | (323) | $ 322,500 | |||||
Common stock issued for services to be received in the future (in shares) | 75 | 75,000 | ||||||
Amortization of deferred compensation | 109 | $ 109 | ||||||
Options issued for services | 516 | 516 | ||||||
Preferred Stock issued for cash | $ 1 | 981 | 982 | |||||
Preferred Stock issued for cash (in shares) | 171 | |||||||
Common stock issued for services received | $ 108 | 108 | ||||||
Common stock issued for services received (in shares) | 25 | |||||||
Costs of financing | $ (108) | (108) | ||||||
Common stock issued in settlement of debt | 822 | $ 822 | ||||||
Common stock issued in settlement of debt (in shares) | 246 | 553,500 | ||||||
Fair value of warrants issued for services received | 187 | $ 187 | ||||||
Issuance of warrants in connection with convertible debenture | 599 | 599 | ||||||
Beneficial conversion feature in connection with convertible debenture | 303 | 303 | ||||||
Warrants issued as part of debt issue costs | 98 | 98 | ||||||
Balance at ending at Dec. 31, 2014 | $ 1 | $ 3 | 32,163 | (214) | (15,227) | 63 | 291 | 17,080 |
Balance at ending (in shares) at Dec. 31, 2014 | 171 | 33,282 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (10,874) | (50) | (10,924) | |||||
Foreign currency translations | (99) | (99) | ||||||
Preferred dividends | (100) | (100) | ||||||
Amortization of deferred compensation | 214 | 214 | ||||||
Issuance of common stock for cash | 3,266 | 3,266 | ||||||
Issuance of common stock for cash (in shares) | 1,866 | |||||||
Costs of issuance of common stock | (391) | (391) | ||||||
Options issued for services | 660 | 660 | ||||||
Contribution of shares of subsidiary | 241 | (241) | ||||||
Amounts owing to related parties forgiven | 131 | 131 | ||||||
Balance at ending at Dec. 31, 2015 | $ 1 | $ 3 | $ 36,070 | $ (26,201) | $ (36) | $ 9,837 | ||
Balance at ending (in shares) at Dec. 31, 2015 | 171 | 35,148 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | ||
Net loss for the year | $ (10,874) | $ (1,864) |
Adjustment to reconcile net loss for the year to net cash used in operating activities: | ||
Depreciation of property and equipment | 67 | 146 |
Amortization of intangible assets | 2,111 | 1,890 |
Increase in allowance for doubtful accounts | 5,562 | 180 |
Amortization of debt issue costs | 132 | |
Amortization of beneficial conversion feature | 101 | |
Amortization of debt discount | 199 | |
Amortization of deferred compensation | 214 | |
Gain on settlement of lease | (36) | |
Options issued for services received | 660 | 516 |
Warrants issued for services | 187 | |
Common shares issued for services received | 174 | |
Net loss attributable to non-controlling interest | (50) | (105) |
Changes in operating assets and liabilities | ||
Accounts receivable | (50) | (1,988) |
Other assets | 174 | (437) |
Accounts payable and accrued expenses | (302) | (244) |
Income taxes | (3) | |
Deferred income taxes | (20) | (210) |
Net cash used in operating activities | (2,115) | (1,755) |
Cash used in investing activities: | ||
Acquisition of intangible assets | (1,063) | (1,122) |
Acquisition of property and equipment | (9) | (49) |
Other assets | 4 | |
Net cash used in investing activities | (1,072) | (1,167) |
Cash flow from financing activities: | ||
Increase (decrease) in long-term borrowing, net | (144) | (68) |
Cash proceeds from issuance of common stock | 2,875 | |
Proceeds from issuance of preferred stock, net of costs | 982 | |
Proceeds from issuance of convertible debenture, net of costs | 3,202 | |
Preferred dividends paid | (100) | |
Advances from related parties, net of repayment | (844) | (33) |
Net cash provided by financing activities | 1,787 | 4,083 |
Increase in cash during the year | (1,400) | 1,161 |
Foreign exchange effect on cash | (59) | |
Cash at beginning of the year | 3,172 | 2,070 |
Cash at end of the year | 1,772 | 3,172 |
Interest paid | 216 | |
Income taxes paid | ||
Non-cash transactions: | ||
Common stock issued for services received | 65 | |
Common stock issued for settlement of debt | 822 | |
Common stock issued for services to be received in the future | 323 | |
Fair value of warrants issued for services received | $ 187 |
Description of Business and Pri
Description of Business and Principles of Consolidation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Principles of Consolidation | Note 1. Description of Business and Principles of Consolidation Description of Business One Horizon Group, Inc., (the Company or OHGI) develops proprietary software primarily in the Voice over Internet Protocol (VoIP) and bandwidth optimization markets. Its subsidiary Horizon Globex GmbH provides our software and hosted VoIP services under perpetual license arrangements on a business to business basis throughout the world to telecommunications companies. OHGI through its Chinese company Suzhou Aishuo Network Information Co., Ltd provides the Aishuo App to end user customers through App stores based in China. Our Aishuo subscribers purchase call credits for Public Service Telephone Network (PSTN) access using a variety of Chinese on-line payments services including Union Pay and Apple Pay. Principles of Consolidation The December 31, 2015 and 2014 consolidated financial statements include the accounts of One Horizon Group, Inc. and its wholly owned subsidiaries OHG, Horizon Globex GmbH, Abbey Technology GmbH, One Horizon Group Pte Limited, Horizon Globex Ireland Limited, Global Phone Credit Limited and One Horizon Hong Kong Limited, and its wholly owned subsidiary. Horizon Network Technology Co. Ltd. (HNT) In addition included in the consolidated financial statements for the year ended December 31, 2015, are the accounts of Suzhou Aishuo Network Information Co., Ltd, which is controlled by One Horizon Group, Inc. through various contractual arrangements. (Note 3) During the year ended December 31, 2015, the minority parties which held ownership interests in HNT returned their shareholdings to HNT such that HNT is now fully owned by the Company. The amount of consolidated net loss attributable to the Company and the non-controlling interest, up to the time that the shareholdings were returned, are both presented on the face of the Consolidated Statement of Operations. All significant intercompany balances and transactions have been eliminated. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Accounting and Presentation These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States Foreign Currency Translation The reporting currency of the Company is the United States dollar. Assets and liabilities of operations other than those denominated in U.S. dollars, primarily in Switzerland, the United Kingdom and China, are translated into United States dollars at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the average rate of exchange throughout the period. Gains or losses from these translations are reported as a separate component of other comprehensive income (loss) until all or a part of the investment in the subsidiaries is sold or liquidated. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations. Transaction gains and losses that arise from exchange-rate fluctuations on transactions denominated in a currency other than the functional currency are included in general and administrative expenses. Cash Cash and cash equivalents include bank demand deposit accounts and highly liquid short term investments with maturities of three months or less when purchased. Cash consists of checking accounts held at financial institutions in the United Kingdom, Switzerland, Ireland, Singapore, Hong Kong and China which, at times, balances may exceed insured limits. The Company has not experienced any losses related to these balances, and management believes the credit risk to be minimal. Accounts Receivable Accounts receivable result primarily from sale of software and licenses to customers and are recorded at their principal amounts. The categories of sales and receivables and their terms of payment are as follows: a) Master License Agreement (Agreement) deposits these deposits are payable in accordance with the terms of the Agreement. The deposits are invoiced and recognized when the Agreement is signed providing the deposits are due to be received within 12 months. When the deposits under the Agreement are due in later periods, the later deposits are invoiced when they are due. b) Maintenance and operational fees and end user licenses fees these charges are invoiced and recognized when a customer is due to pay them under the Agreement. In some Agreements, the charges are invoiced and payable when the service/licenses have been delivered by the Company. In the other cases, the Company has agreed to payments on revenue share basis whereby the Company will receive an agreed proportion of a customers revenue from its operation of the Horizon service. On revenue share basis, the income for maintenance and operational fees together with end user licenses fees are not recognized until these charges are invoiced and due. In September 2014, the Company reported that it had converted a significant number of its customers to a revenue share basis of collection (prior revenue was recognized in accordance with revenue recognition policies - see note in Revenue Recognition) and the balance outstanding at the point of conversion for those customers will be collected prior to the commencement of recognizing income on revenue share basis. In addition, on revenue share basis, the Company also offers a hosted service where a customer can buy vouchers for resale of minutes to be used over the Public Service Telephone Network ("PTSN"). These voucher sales are recognized when invoiced and payment terms are 30 days. Accounts receivable balances from certain customers arose from revenue recognised prior to September 30, 2014. The effective date as of which many of the companys customers entered into revenue sharing arrangements. Those revenue sharing arrangements changed the basis under which the customers would pay their existing balances, as described, effective starting as early as October 1, 2014. Revenue that has been recognized under category b), prior to the Companys conversion of Tier 2 customers to revenue share arrangements on October 1, 2014, was based on invoices provided to customers as payments became due. As of December 31, 2015, a significant portion of those receivables remain uncollected, which management attributes in part to the Companys conversion of those customers to a revenue share arrangement. Considering the effects of the revenue share arrangements on collection of accounts receivable and the timing of those collections, along with other factors, management has estimated the amounts they expect to collect within 12 months of the balance sheet date from those customers operating under revenue share arrangements. The portion of the receivable balance expected to be received in more than 12 months is considered a non-current receivable. The Company maintains its belief that current and non-current accounts receivable continue to be due from their customers. Further, management is of the belief that its customers are contractually obligated to pay the full amount due as provided under the Master License Agreements executed by each of its customers. Regardless, management has considered the collectability of those receivables classified as long-term in terms of providing an appropriate allowance for the slow-paying nature of these accounts. For receivables classified as long-term, management believes there is general uncertainty in the collection of those balances and the timing of those collections, taken as a whole, and has increased the general provision for doubtful accounts to cover accounts receivable balances expected to be collected beyond 12 months from the balance sheet date. The slow-pay uncertainties arise from a number of factors, including the effects of revenue share arrangements, the extended time customers are talking to generate significant revenue under revenue share arrangements, and general technological changes in the industry. c) Software consultancy fees When customers require customization of software, the Company quotes a flat project amount or a daily rate for the work. When a Customer has confirmed their approval of the quote and the work has been undertaken, the Company will invoice consultancy fee and recognize the revenue. The terms of payment are fixed terms and normally 30 days of the date of the invoice. d) Hardware fees Hardware fees represent the fees the Company charges for the supply of ancillary equipment which customers occasionally ask us to source and supply. The Company quotes the price prior to the delivery and upon delivery, invoices the customer with payment due within stated terms, normally 30 days from the date of the invoice. When necessary, the Company provides an allowance for doubtful accounts that is based on a review of outstanding receivables, historical collection information, and current economic conditions. The Company has strong collection history in all categories above except category b), and generally does not believe that an allowance for doubtful accounts for these categories except category b) is necessary. For receivables in category b), when the Company becomes aware of a customers inability to meet its financial obligations, such as in the case of bankruptcy or deterioration in the customers operating results, financial position, or credit rating, the Company records a specific reserve for bad debts to reduce the related receivable to the amount it believes to be collectable. The Company records a general allowance for doubtful collections for those accounts receivable considered to be slow paying, on the basis described above for accounts receivable balances of customers under category (b) above. There was an allowance of $6,055,000 and $492,000 for doubtful accounts at December 31, 2015 and December 31, 2014, respectively. Receivables are generally unsecured. Account balances are charged off against the allowance when the Company determines that certain receivable will probably not be recovered. The Company does not have off-balance sheet credit exposure related to its customers. As of December 31, 2015 and December 31, 2014, two customers accounted for 24% and 28%, respectively, of the accounts receivable balance. When a portion of the receivable balances of certain customers under category (b) above, is expected to be received in more than 12 months, the relevant balances are shown as a non current asset. Due to an uncertainty in the timing of the receipt of these balances the Company has decided to provide a general provision covering these balances. The Company retains it belief that the balances are recoverable and when recovery is achieved the appropriate reduction in the general provision will be shown. Property and Equipment Property and equipment is primarily comprised of leasehold property improvements, motor vehicles and equipment that are recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives as follows: motor vehicles 5 years, equipment between 3 and 5 years, leasehold property improvements, over the lesser of the estimated remaining useful life of the asset or the remaining term of the lease. Repairs and maintenance are charged to expense as incurred. Expenditures that substantially increase the useful lives of existing assets are capitalized. Investment Cost-based investments includes investments in companies for which we do not have the ability to exercise significant influence. The cost-based investments are analyzed for impairment based on current market and other factors relevant to the investments. No impairment was considered necessary as of December 31, 2015 or 2014. As of December 31, 2015 and 2014, we had $18,000 and $19,000 respectively of cost-based investments on our balance sheet. Fair Value Measurements Fair value is defined as the exchange price that will be received for an asset or paid to transfer a liability (an exit price) in the principal. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which the first two are considered to be observable and the third unobservable: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Intangible Assets Intangible assets include software development costs and customer lists and are amortized on a straight-line basis over the estimated useful lives of five years for customer lists and ten years for software development. The Company periodically evaluates whether changes have occurred that would require revision of the remaining estimated useful life. The Company performs periodic reviews of its capitalized intangible assets to determine if the assets have continuing value to the Company. The Company expenses software development costs as incurred until technological feasibility has been established, at which time those costs are capitalized until the product is available for general release to customers. Judgement is required in determining when technological feasibility of a product is established. The Company has determined that after technological feasibility for software products is reached, the Company continues to address all high risk development issues through coding and testing prior to the release of the products to customers. The amortization of these costs is included in cost of revenue over the estimated life of the products. During the years ended December 31, 2015 and 2014 software development costs of $1,063,000 and $1,122,000, respectively, have been capitalized. Impairment of Other Long-Lived Assets The Company evaluates the recoverability of its property and equipment and other long-lived assets whenever events or changes in circumstances indicate impairment may have occurred. An impairment loss is recognized when the net book value of such assets exceeds the estimated future undiscounted cash flows attributed to the assets or the business to which the assets relate. Impairment losses, if any, are measured as the amount by which the carrying value exceeds the fair value of the assets. During the years ended December 31, 2015 and 2014 the Company identified no impairment losses related to the Companys long-lived assets. Revenue Recognition The Company recognizes revenue when it is realized or realizable and earned. The Company establishes persuasive evidence of a sales arrangement for each type of revenue transaction based on a signed contract with the customer and that delivery has occurred or services have been rendered, price is fixed and determinable, and collectability is reasonably assured. ● Software and licenses revenue from sales of perpetual licenses to telecom entities is recognized at the date of invoices raised for installments due under the agreement, unless payment terms exceed one year, as described below, presuming all other relevant revenue recognition criteria are met. Revenue from sales of perpetual licenses to other entities is recognized over the agreed collection period ● Revenue for user licenses purchased by customers is recognized when the user license is delivered except as set out below. ● Revenue for maintenance services is recognized over the period of delivery of the services except as set out below. ● Effective as of October 1, 2014, the Company amended certain existing customer contracts with respect to the terms under which those customers would pay the Company for perpetual licenses, user licenses and maintenance services provided by the Company. Existing customer contracts required payments for maintenance services to be made based on contractually specified fixed amounts, which were billed regularly through September 2014. Through that date the Company recorded revenue for licenses and maintenance services when those licenses and services were billed. Revenue for user licenses was recorded as earned and revenue for maintenance services was recorded based on a fixed annual fee, billed quarterly. The Company has modified the payment terms under certain of those existing customer contracts by entering into Revenue Sharing agreements with those customers. Under the terms of these Revenue Sharing agreements, future payments will be due from the customer when that customer has generated revenue from its customers who subscribe to use the Horizon products and services. Effective October 1, 2014 revenue will be recorded by the Company when it invoices the customer for the revenue share due to the Company. Certain customers who entered into revenue sharing arrangements had outstanding balances due to the Company as of September 30, 2014, which balances were included in accounts receivable at that date. Payments received after September 30, 2014, from those customers under revenue sharing agreements have been applied to the customers existing accounts receivable balances first. For those customers having balances due at September 30, 2014, revenue related to perpetual and user licenses and maintenance services will be recorded only after existing accounts receivable balances are fully collected. ● Revenues from Aishuo retail sales are recognized when the PSTN calls and texts are made by the customer Where the Company has entered into a Revenue Share with the customer, then all future revenue from granting of user licenses and for maintenance services will be recognized when the Company has delivered user licenses and is entitled to invoice. The Company enters into arrangements in which a customer purchases a combination of software licenses, maintenance services and post-contract customer support (PCS). As a result, judgment is sometimes required to determine the appropriate accounting, including how the price should be allocated among the deliverable elements if there are multiple elements. PCS may include rights to upgrades, when and if available, support, updates and enhancements. When vendor specific objective evidence (VSOE) of fair value exists for all elements in a multiple element arrangement, revenue is allocated to each element based on the relative fair value of each of the elements. VSOE of fair value is established by the price charged when the same element is sold separately. Accordingly, the judgments involved in assessing the fair values of various elements of an agreement can impact the recognition of revenue in each period. Changes in the allocation of the sales price between deliverables might impact the timing of revenue recognition, but would not change the total revenue recognized on the contract. When elements such as software and services are contained in a single arrangement, or in related arrangements with the same customer, we allocate revenue to each element based on its relative fair value, provided that such element meets the criteria for treatment as a separate unit of accounting. In the absence of fair value for a delivered element, revenue is first allocated to the fair value of the undelivered elements and then allocated to the residual delivered elements. In the absence of fair value for an undelivered element, the arrangement is accounted for as a single unit of accounting, resulting in a delay of revenue recognition for the delivered elements until the undelivered elements are fulfilled. No sales arrangements to date include undelivered elements for which VSOE does not exist. For purposes of revenue recognition for perpetual licenses, the Company considers payment terms exceeding one year as a presumption that the fee in the transaction is not fixed and determinable. This presumption however, may be overcome if persuasive evidence demonstrates that the Company has a business practice of extending payment terms and has been successful in collecting under the original terms, without providing any concessions. In doing so, the Company considers if the arrangement is sufficiently similar to historical arrangements in terms of similar customers and products is assessing whether there is evidence of a history of successful collection. In order to determine the companys historical experience is based on sufficiently similar arrangements, the Company considers the various factor including the types of customers and products, product life cycle, elements Included in the arrangement, length of payment terms and economics of license arrangement. If the presumption cannot be overcome due to a lack of such evidence, revenue should be recognized as payments become due, assuming all other revenue recognition criteria has been met. During 2015 78% of the Companys revenue was concentrated in the hands of two major customers. Leases Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Assets held under finance leases are recognized as assets of the Company at their fair value or, if lower, at the present value of the minimum lease payments, each determined at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight-line basis over the lease term. Advertising Expenses It is the Companys policy to expense advertising costs as incurred. Advertising costs totaling $30,000 were incurred during the year ended December 31, 2015 (2014: $0). Research and Development Expenses Research and development expenses include all direct costs, primarily salaries for Company personnel and outside consultants, related to the development of new products, significant enhancements to existing products, and the portion of costs of development of internal-use software required to be expensed. Research and development costs are charged to operations as incurred with the exception of those software development costs that may qualify for capitalization. The Company incurred research and development costs in the amount of $579,000 and $379,000 in the years ended December 31, 2015 and 2014, respectively. Debt Issue Costs Debt issue costs related to long-term debt are capitalized and amortized over the term of the related debt using the effective interest method. Income Taxes Deferred income tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, operating loss, and tax credit carryforwards, and are measured using the enacted income tax rates and laws that will be in effect when the differences are expected to be recovered or settled. Realization of certain deferred income tax assets is dependent upon generating sufficient taxable income in the appropriate jurisdiction. The Company records a valuation allowance to reduce deferred income tax assets to amounts that are more likely than not to be realized. The initial recording and any subsequent changes to valuation allowances are based on a number of factors (positive and negative evidence). The Company considers its actual historical results to have a stronger weight than other, more subjective, indicators when considering whether to establish or reduce a valuation allowance. The Company continually evaluates its uncertain income tax positions and may record a liability for any unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties are recorded as a component of interest expense and other expense, respectively. Because tax laws are complex and subject to different interpretations, significant judgment is required. As a result, the Company makes certain estimates and assumptions in: (1) calculating its income tax expense, deferred tax assets, and deferred tax liabilities; (2) determining any valuation allowance recorded against deferred tax assets; and (3) evaluating the amount of unrecognized tax benefits, as well as the interest and penalties related to such uncertain tax positions. The Companys estimates and assumptions may differ significantly from tax benefits ultimately realized. Net Loss per Share Basic net loss per share is calculated by dividing the net loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. Diluted loss per share takes into consideration common shares outstanding (computed under basic loss per share) and potentially dilutive securities. For the years ended December 31, 2015 and 2014, outstanding stock options, warrants and convertible debt are antidilutive because of net losses, and as such, their effect has not been included in the calculation of diluted net loss per share. Common shares issuable are considered outstanding as of the original approval date for purposes of earnings per share computations. Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss), as defined, includes net income (loss), foreign currency translation adjustment, and all changes in equity (net assets) during a period from non-owner sources. To date, the Company has not had any significant transactions that are required to be reported in other comprehensive income (loss), except for foreign currency translation adjustments. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the fiscal year. The Company makes estimates for, among other items, useful lives for depreciation and amortization, determination of future cash flows associated with impairment testing for long-lived assets, determination of the fair value of stock options and warrants, valuation allowance for deferred tax assets, allowances for doubtful accounts, and potential income tax assessments and other contingencies. The Company bases its estimates on historical experience, current conditions, and other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates and assumptions. Financial Instruments The carrying amounts of our financial assets and liabilities such as cash, current accounts receivable and accounts payable approximate their fair values based on level 1 inputs in the fair value hierarchy because of the short maturity of these instruments. Due to the conversion features and other terms, it is not practical to estimate the fair value of amounts due to related parties and long term debt. Share-Based Compensation The Company accounts for share-based awards at fair value on date of grant and recognizes compensation over the service period for awards expected to vest. The fair value of stock options is determined using the Black-Scholes option pricing model, which includes subjective judgements about the expected life of the awards, forfeiture rates and stock price volatility. The Company issues new shares of common stock to satisfy exercises and vesting of awards, granted under our stock plans. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates (ASU) No. 2014-09, Revenue from Contracts with Customers In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, Income Taxes Balance Sheet Reclassification of Deferred Taxes (Topic 740) In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which amends ASC 835-30, Interest Imputation of Interest. This ASU requires that debt issuance costs related to borrowings be presented in the balance sheet as a direct deduction from the carrying amount of the borrowing. This treatment is consistent with debt discounts. The ASU does not affect the amount or timing of expenses for debt issuance costs. The effective date will be the first quarter of fiscal year 2017 and will be applied retrospectively. The adoption will not have a material effect on the company's consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which amends ASC 835-30, Interest Imputation of Interest. This ASU clarifies the presentation and subsequent measurement of debt issuance costs associated with lines of credit. These costs may be presented as an asset and amortized ratably over the term of the line of credit arrangement, regardless of whether there are outstanding borrowings on the arrangement. The effective date will be the first quarter of fiscal year 2017 and will be applied retrospectively. The adoption will not have a material effect on the company's consolidated financial statements. In 2015, the FASB issued new guidance related to consolidations. The new standard amends the guidelines for determining whether certain legal entities should be consolidated and reduces the number of consolidation models. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. We are evaluating the impact, if any, of adopting this new accounting guidance on our consolidated financial statements. |
Suzhou Aishuo Network Informati
Suzhou Aishuo Network Information Co. Ltd. | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Suzhou Aishuo Network Information Co. Ltd. | Note 3. Suzhou Aishuo Network Information Co. Ltd. The Company has control of a Chinese entity Suzhou Aishuo Network Information Co. Ltd. (AISHOU) through various contractual arrangements in place. As a result of this control, one hundred percent of the results of operations, assets, liabilities and cash flows of AISHUO have been consolidated in the accompanying consolidated financial statements. Summarized assets, liabilities and results of operations of AISHOU are as follows: December 31 December 31 2015 2014 Assets $ 43 3 Intercompany receivables/(payables) (123 ) 151 Other liabilities (60 ) - Revenue 56 - Net loss (286 ) (8 ) |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Note 4. Property and Equipment, net Property and equipment consist of the following: (in thousands) December 31 December 31 2015 2014 Leasehold improvements $ - $ 265 Motor vehicle - 120 Equipment 291 348 291 733 Less accumulated depreciation (195 ) (521 ) Property and equipment, net $ 96 $ 212 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 5. Intangible Assets Intangible assets consist primarily of software development costs and customer and reseller relationships which are amortized over the estimated useful life, generally on a straight-line basis with the exception of customer relationships, which are generally amortized over the greater of straight-line or the related assets pattern of economic benefit. (in thousands) December 31 December 31 2015 2014 Horizon software $ 17,879 $ 16,936 ZTEsoft Telecom software 469 495 Contractual relationships 885 885 19,233 18,316 Less accumulated amortization (9,410 ) (7,356 ) Intangible assets, net $ 9,823 $ 10,960 Amortization of intangible assets for each of the next five years is estimated to be $2,000,000 per year |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Note 6. Long-term Debt Long term liabilities consist of the following (in thousands) December 31 December 31 2015 2014 Vehicle loan $ - $ 32 Equipment loan 5 15 Office term loan - 134 5 181 Less current portion (5 ) (73 ) Balance $ - $ 108 During the year ended December 31, 2015 the Company negotiated early settlement of the Office and vehicle term loan balances. As a result a gain of $32,000 was recorded. |
Convertible Debenture
Convertible Debenture | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Convertible Debenture | Note 7. Convertible Debenture In December 2014, the Company closed a private placement of $3,500,000 under Regulation S whereby we issued to an investor a convertible debenture that is convertible into 1,555,556 shares of Common Stock, Class C Warrant to purchase 388,889 shares of Common Stock, Class D Warrant to purchase 388,889 shares of Common Stock and the potential for performance warrants. The unsecured convertible debenture is for a term of three years from the date of issue and has an interest rate of 8% per annum, payable quarterly in arrears in either cash, shares of common stock or a combination of cash and shares of common stock. The Company has the right to repurchase the convertible debenture upon notice at any time after the first twelve months. The Class C and Class D warrants have a term of four years and are each entitled to purchase one-fourth of a share of common stock. In total the Company issued 388,889 Class C warrants and 388,889 Class D warrants. Performance Warrants associated with the convertible debenture were potentially issuable and exercisable based on the Companys annual reported subscriber numbers, twenty four (24) months after December 22, 2014, as is reflected in our 2014 Form 10-K. In the first quarter of 2016 the Company announced it has achieved the required number subscriber downloads and therefore the additional performance warrants are not issuable by the Company. Proceeds received in 2014 from the convertible debentures were allocated between the convertible debenture and warrants based on their relative fair values. The resulting discount for the warrants is amortized using the effective interest method over the life of the debentures. The relative fair value of Class C and Class D warrants resulted in a discount of $598,500 at the date of issuance. After allocating a portion of the proceeds to the warrants, the effective conversion price of the convertible debentures was determined to result in a beneficial conversion feature. The beneficial conversion feature has a relative fair value of $302,994 at the date of issuance and is being amortized over the life of the convertible debenture. The beneficial conversion feature discount is amortized using the effective interest method over the life of the debentures. During the year ended December 31, 2015 amortization of the debt discount in the amount of $199,233 and the amortization of the beneficial conversion feature in the amount of $100,980 are included in interest expense in the consolidated statement of operations. A total of 1,555,556 shares of common stock have been reserved for the potential conversion of the convertible debenture. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Note 8. Related-Party Transactions Amounts due to related parties include the following: (in thousands) December 31 December 31 2015 2014 Loans due to stockholders (current and former officers and directors) Due within one year $ - $ 600 Long-term 2,354 2,598 $ 2,354 $ 3,198 The balance of related party debt outstanding as at December 31, 2015 of $2,354,000 matures on April 1, 2017 and is interest free (2014: 0.21%) During the year ended December 31, 2015 the Company entered into a sales contract, with a customer (Horizon Latin America) in which the Company holds a minority ownership interest. The customer purchased perpetual software license, requiring initial payments of $500,000, which has been recognized as revenue in the year ended December 31, 2015. The Company owns a cost based investment interest of 19% in the customer with no voting rights or board representation therein. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Share Capital | Note 9. Share Capital Preferred Stock The Companys authorized capital includes 50,000,000 shares of preferred stock of $0.0001 par value. The designation of rights including voting powers, preferences, and restrictions shall be determined by the Board of Directors before the issuance of any shares. On July 21, 2014 the Company completed a private placement of 170,940 shares of mandatorily convertible Series A Preferred Stock that also included 100,000 Class B warrants, each warrant convertible to one share of common stock at an exercise price of $4 per share. The net proceeds of the offering were $982,000 after deducting offering costs. The holders of Series A Preferred Stock are entitled to receive cumulative dividends during a period of twenty-four (24) months from and after the Issuance Date (the Dividend Period). During the Dividend Period for each outstanding share of Series Preferred Stock, dividends shall be payable quarterly in cash, at the rate of 10% per annum on or before each ninety (90) day period following the Issuance Date (each a Dividend Payment Date), with the first Dividend Payment Date to occur promptly following the three month period following the Issuance Date, and continuing until the end of the Dividend Period. Following the expiration of the Dividend Period, the holders of Series A Preferred Stock shall not be entitled to any additional dividend payment or coupon rate. Shares of Series A Preferred Stock are convertible in whole or in part, at the option of the holders, into shares of common stock at $5.85 per share prior to the Maturity, and all outstanding shares of Series A Preferred Stock shall automatically convert to shares of common stock upon Maturity, provided however, at no time may holders convert shares of Series A Preferred Stock if the number of shares of common stock to be issued pursuant to such conversion would cause the number of shares of common stock beneficially owned by such holder and its affiliates to exceed 9.99% of the then issued and outstanding shares of common stock outstanding at such time, unless the holder provides us with a waiver notice in such form and with such content specified in the Series A Certificate of Designation. Shares of Series A Preferred Stock are redeemable, at the option of the holders commencing any time after 12 months from and after the closing at a price equal to the original purchase price plus all accrued but unpaid dividends. In the event that the Company completes a financing of $10 million or greater prior to Maturity, the Series A Preferred Stock will be redeemed at a price equal to the original purchase price plus all accrued but unpaid dividends. 170,940 shares of Series A preferred stock are issued and outstanding as of December 31, 2015. Mandatorily Redeemable Preferred Shares (Deferred Stock) The Companys subsidiary One Horizon Group Plc (OHG) has in issue 50,000 shares of deferred stock, par value of £1.These shares are non-voting, non-participating, redeemable and have been presented as a long-term liability. Common Stock The Company is authorized to issue 200 million shares of common stock, par value of $0.0001. On August 10, 2015, in connection with an Underwriting Agreement dated August 4, 2015 (the Underwriting Agreement) with Aegis Capital Corp. (Aegis), as representative of the several underwriters named therein (the Underwriters), the Company closed a firm commitment underwritten public offering of 1,714,286 shares of Common Stock, and warrants to purchase up to an aggregate of 857,143 shares of Common Stock at a combined offering price of $1.75 per share and accompanying warrants. Pursuant to the Underwriting Agreement, the Underwriters exercised an option to purchase 151,928 additional shares of Common Stock and 75,964 additional warrants. The Company allocated $2.5 million of the proceeds of the common stock and $0.8 million to the warrants to purchase common stock. This allocation was based on the relative fair value of each security on the date of issuance. The warrants offered have a per share exercise price of $2.50 (subject to adjustment in the event of certain stock dividends and distributions, stock splits, stock combinations, reclassifications or similar events affecting our Common Stock and also upon any distributions of assets, including cash, stock or other property to our stockholders), are exercisable immediately and will expire three years from the date of issuance. Subject to applicable laws, the warrants may be offered for sale, sold, transferred or assigned without the Companys consent. During the year ended December 31, 2014, the Company: · issued 15,000 shares of common stock for services received with a fair value of $64,500. · issued 25,000 shares of common stock for services received, in connection with the $1 million private placement, with a fair value of $107,500 · issued 75,000 shares of common stock for services received in the future with a fair value of $322,500 · issued 246,000 shares of common stock in settlement of amounts owing of $553,500 Stock Purchase Warrants At December 31, 2015, the Company had reserved 3,294,746 shares of its common stock for the following outstanding warrants: Number of Warrants Exercise Price Expiry 116,760 $ 0.86 no expiry date 1,209,675 4.25 January 2019 100,000 4.00 July 2016 60,000 6.55 December 2015 68,850 2.25 December 2018 403,786 3.00 December 2018 402,568 3.50 December 2018 857,143 2.50 August 2018 75,964 2.50 September 2018 There were 933,107 warrants issued and none exercised during the year ended December 31, 2015. If, at the time of exercise of warrants issued pursuant to the financing of August 2015, wherein a total of 933,107 warrants were issued, that the shares issued upon exercise are not able to be included in a registration statement then the holder may request that the warrants so exercised be done on a cashless basis. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Note 10. Stock-Based Compensation The shareholders approved a stock option plan on August 6, 2013, the 2013 Equity Incentive Plan. This stock option plan is for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, cash bonuses and other stock-based awards to employees, directors and consultants of the Company. There are 3,000,000 shares of common stock available for granting awards under the plan. Each year, commencing 2014, until 2016, the number of shares of common stock available for granting awards shall be increased by the lesser of 1,000,000 shares of common stock and 5% of the total number of shares of common stock outstanding. During the year ended December 31, 2014 the Company issued options to purchase 500,000 shares of common stock under the 2013 Equity Incentive Plan. The options become fully vested on January 15, 2017 and are exercisable, at an exercise price of $4.54 per common share, to January 15, 2024. During the year ended December 31, 2015 the Company issued options to purchase 564,000 shares of common stock under the 2013 Equity Incentive Plan. These options become fully vested on May 12, 2018 and are exercisable, at an exercise price of $1.09 per common share, between May 12, 2015 and May 12, 2025. On both January 1, 2014 and 2015 the number of shares available for granting awards under the 2013 Equity Incentive Plan was increased by 1,000,000 shares. A summary of the Companys 2013 Equity Incentive Plan as of December 31, 2015, is as follows: Weighted Number of Exercise Outstanding at December 31, 2013 - - Options issued 500,000 4.54 Outstanding at December 31, 2014 500,000 $ 4.54 Options issued 564,000 1.09 Options forfeited (120,000 ) 4.54 Outstanding at December 31, 2015 944,000 $ 2.48 The grant date fair value of these options, using the Black-Scholes option-pricing model, was estimated to be $2,576,000. This expense, less an estimated forfeiture rate of 30%, is being recognized over the 3 year vesting periods. The amount of $596,000 and $516,000 has been recognized during the year ended December 31, 2015 and December 31, 2014 respectively. As of December 31, 2015 there was unrecognized compensation expense of approximately $706,000 to be recognized over the remaining vesting periods. For the 2013 Equity Incentive Plan there were 564,000 options issued and 120,000 were forfeited and none were exercised during the year ended December 31, 2015. A summary of the Companys other stock options as of December 31, 2015, is as follows: Weighted Number of Exercise Outstanding at December 31, 2013 584,650 0.53 Options forfeited - - Outstanding at December 31, 2014 584,650 $ 0.53 Options issued 291,900 0.53 Options forfeited (850 ) 0.51 Outstanding at December 31, 2015 875,700 $ 0.53 The grant date fair value of the options issued in 2015, using the Black-Scholes option-pricing model, is estimated to be $255,000. This expense is being recognized over the 2 year vesting period. The amount of $64,000 and $nil has been recognized during the year ended December 31, 2015 and the year ended December 31, 2014 respectively. As at December 31, 2015 there was unrecognized compensation expense of approximately $191,000 to be recognized over the remaining vesting period. There were 291,900 options issued, no options exercised and 850 options were forfeited during the year ended December 31, 2015. The following table summarizes stock options outstanding at December 31, 2015: Number Average Number Intrinsic Outstanding Remaining Exercisable Value at Contractual at at December 31, Life December 31, December 31, Exercise Price 2015 (Years) 2015 2015 $ 0.53 291,900 4.50 291,900 $ 183,987 0.53 291,900 6.50 291,900 183,987 0.53 291,900 9.75 - - 4.54 380,000 8.00 - - 1.09 564,000 9.50 - - At December 31, 2015, 5,875,700 shares of common stock were reserved for all outstanding options and future commitments under the 2013 Equity Incentive Plan. The fair value of each option granted in 2015 is estimated at the date of grant using the Black-Scholes option-pricing model. The assumptions used in calculating the fair value of the options granted were: risk-free interest rate of 2.5%, a 3 year expected life, a dividend yield of 0.0%, and a stock price volatility factor of 95% The fair value of each option granted in 2014 is estimated at the date of grant using the Black-Scholes option-pricing model. The assumptions used in calculating the fair value of the options granted were: risk-free interest rate of 2.5%, a 2 year expected life, a dividend yield of 0.0%, and a stock price volatility factor of 123% |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes Income tax benefit of $20,000 and $210,000 in 2015 and 2014, respectively, is recognized for the impact of deferred tax assets and liabilities, which represent consequences of events that have been recognized differently in the financial statements under GAAP than for tax purposes. The difference between the U.S. statutory federal tax rate of 34% in 2015 and 2014 and the provision for income tax recorded by the Company is primarily attributable to the change in the Companys valuation allowance against its deferred tax assets and to a lesser extent to the tax rate differential on losses in foreign countries. Loss from operations before income taxes consisted of the following (in thousands): December 31, December 31, 2015 2014 United States $ (2,281 ) $ (1,646 ) International (8,663 ) (533 ) Total $ (10,944 ) $ (2,179 ) As of December 31, 2015, the Company had federal net operating losses of $3.5 million available for future deduction from taxable income derived in the United States. The Companys United Kingdom subsidiary has non-capital losses of approximately $13.3 million available for future deductions from taxable income derived in the United Kingdom, which do not expire. The potential benefit of net operating loss carryforwards has not been recognized in the combined financial statements since the Company cannot determine that it is more likely than not that such benefit will be utilized in future years. The tax years 2006 through 2014 remain open to examination by federal authorities and other jurisdictions in which the Company operates namely United Kingdom, Switzerland, Ireland, China and Hong Kong. The components of the net deferred tax liability and the amount of the valuation allowance are as follows: (in thousands) December 31 2015 2014 Deferred tax assets (liabilities) Net operating loss carryforwards - United States $ 1,205 $ 829 Net operating loss carryforwards - International 3,322 3,249 Valuation allowance (4,527 ) (4,078 ) Net deferred tax liabilities $ - $ - The increase in the valuation allowance was $449,000 for the year ended December 31, 2015 and $646,000 for the year ended December 31, 2014. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Contractual Commitments The Company incurred total rent expense of $86,000 and $100,000, respectively, for the years ended December 31, 2015 and 2014. Minimum contractual commitments, as of December 31, 2015, is as follows: Operating Long-term leases Financing 2016 $ 23,000 $ 5,000 2017 - - 2018 - - Legal Proceedings In 2012, we sold certain former subsidiaries engaged in provision of satellite service in 2012 to Broadband Satellite Services (BSS), a company incorporated under laws of England and Wales. Horizon Globex, a company incorporated in Switzerland and a subsidiary of us, had provided these subsidiary companies with software and IT services. In connection with its acquisition of our former subsidiary companies, BSS entered into three agreements with Horizon Globex pursuant to which BSS continued to use Horizon Globex to supply software and IT services. Notwithstanding the fact that Horizon Globex has provided such ongoing software and IT services, BSS has failed to pay our fees pursuant to the agreements. As a result, on December 23, 2014, we initiated legal proceedings in the High Court, Queens Bench Division, Commercial Court No. 2014 folio 1560 against BSS in the United Kingdom to collect such fees in the amount of $640,000. Subsequently, BSS asserted counter claims in the amount of $5.8 million, alleging among other claims, civil fraud in connection with the sale of subsidiary companies. Based on the timing of these claims, which were never raised until we filed our action against BSS, it is our position that these claims are specious and represent nothing more than an attempt to improve BSS's negotiating position with regard to our legitimate claims against it. As a result, we plan to continue to carry out our claims against BSS to the fullest extent possible and to defend BSS's counter-claims vigorously. We note further that several of BSS's counter claims may be time barred by applicable sections of the contracts and plan to assert the same as an affirmative defense to such counter claim. Notwithstanding our views with regard to our claims against BSS and BSS's counterclaims, litigation is by its nature unpredictable and therefore we cannot guarantee with certainty the outcome of our dispute with BSS. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Note 13. Segment Information The Company has two business segments, both of which involve the development and licensing of software for mobile VoIP. One for business to business line and one for business to consumer line, primarily represented by Aishuo for 2015 and 2014 activity in the business to consumer line is not material for separate segment presentation. The Companys revenues were generated in the following geographic areas: 2015 2014 China $ 57,000 $ 0 Rest of Asia $ 900,000 $ 3,700,000 Europe and Russia $ 25,000 $ 800,000 The Americas $ 550,000 $ 600,000 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 14. Subsequent Event On March 2, 2016, the Company received a written alert from Nasdaq Listing Qualifications that our closing bid price for the last 30 consecutive business days was less than $1.00 per share. As a result the Company is below the continued listing requirement to maintain a minimum bid price of $1.00 per share as set forth in Nasdaq Listing Rule 5550(a). However, Nasdaq Listing Rule 581(c)(3)(A) provides us a compliance period of 180 calendar days to regain compliance. If at any time during this 180 day period the closing bid price is at least $1.00 for a minimum of 10 consecutive business days, we will regain compliance. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting and Presentation | Basis of Accounting and Presentation These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company is the United States dollar. Assets and liabilities of operations other than those denominated in U.S. dollars, primarily in Switzerland, the United Kingdom and China, are translated into United States dollars at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the average rate of exchange throughout the period. Gains or losses from these translations are reported as a separate component of other comprehensive income (loss) until all or a part of the investment in the subsidiaries is sold or liquidated. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations. Transaction gains and losses that arise from exchange-rate fluctuations on transactions denominated in a currency other than the functional currency are included in general and administrative expenses. |
Cash | Cash Cash and cash equivalents include bank demand deposit accounts and highly liquid short term investments with maturities of three months or less when purchased. Cash consists of checking accounts held at financial institutions in the United Kingdom, Switzerland, Ireland, Singapore, Hong Kong and China which, at times, balances may exceed insured limits. The Company has not experienced any losses related to these balances, and management believes the credit risk to be minimal. |
Accounts Receivable | Accounts Receivable Accounts receivable result primarily from sale of software and licenses to customers and are recorded at their principal amounts. The categories of sales and receivables and their terms of payment are as follows: a) Master License Agreement (Agreement) deposits these deposits are payable in accordance with the terms of the Agreement. The deposits are invoiced and recognized when the Agreement is signed providing the deposits are due to be received within 12 months. When the deposits under the Agreement are due in later periods, the later deposits are invoiced when they are due. b) Maintenance and operational fees and end user licenses fees these charges are invoiced and recognized when a customer is due to pay them under the Agreement. In some Agreements, the charges are invoiced and payable when the service/licenses have been delivered by the Company. In the other cases, the Company has agreed to payments on revenue share basis whereby the Company will receive an agreed proportion of a customers revenue from its operation of the Horizon service. On revenue share basis, the income for maintenance and operational fees together with end user licenses fees are not recognized until these charges are invoiced and due. In September 2014, the Company reported that it had converted a significant number of its customers to a revenue share basis of collection (prior revenue was recognized in accordance with revenue recognition policies - see note in Revenue Recognition) and the balance outstanding at the point of conversion for those customers will be collected prior to the commencement of recognizing income on revenue share basis. In addition, on revenue share basis, the Company also offers a hosted service where a customer can buy vouchers for resale of minutes to be used over the Public Service Telephone Network ("PTSN"). These voucher sales are recognized when invoiced and payment terms are 30 days. Accounts receivable balances from certain customers arose from revenue recognised prior to September 30, 2014. The effective date as of which many of the companys customers entered into revenue sharing arrangements. Those revenue sharing arrangements changed the basis under which the customers would pay their existing balances, as described, effective starting as early as October 1, 2014. Revenue that has been recognized under category b), prior to the Companys conversion of Tier 2 customers to revenue share arrangements on October 1, 2014, was based on invoices provided to customers as payments became due. As of December 31, 2015, a significant portion of those receivables remain uncollected, which management attributes in part to the Companys conversion of those customers to a revenue share arrangement. Considering the effects of the revenue share arrangements on collection of accounts receivable and the timing of those collections, along with other factors, management has estimated the amounts they expect to collect within 12 months of the balance sheet date from those customers operating under revenue share arrangements. The portion of the receivable balance expected to be received in more than 12 months is considered a non-current receivable. The Company maintains its belief that current and non-current accounts receivable continue to be due from their customers. Further, management is of the belief that its customers are contractually obligated to pay the full amount due as provided under the Master License Agreements executed by each of its customers. Regardless, management has considered the collectability of those receivables classified as long-term in terms of providing an appropriate allowance for the slow-paying nature of these accounts. For receivables classified as long-term, management believes there is general uncertainty in the collection of those balances and the timing of those collections, taken as a whole, and has increased the general provision for doubtful accounts to cover accounts receivable balances expected to be collected beyond 12 months from the balance sheet date. The slow-pay uncertainties arise from a number of factors, including the effects of revenue share arrangements, the extended time customers are talking to generate significant revenue under revenue share arrangements, and general technological changes in the industry. c) Software consultancy fees When customers require customization of software, the Company quotes a flat project amount or a daily rate for the work. When a Customer has confirmed their approval of the quote and the work has been undertaken, the Company will invoice consultancy fee and recognize the revenue. The terms of payment are fixed terms and normally 30 days of the date of the invoice. d) Hardware fees Hardware fees represent the fees the Company charges for the supply of ancillary equipment which customers occasionally ask us to source and supply. The Company quotes the price prior to the delivery and upon delivery, invoices the customer with payment due within stated terms, normally 30 days from the date of the invoice. When necessary, the Company provides an allowance for doubtful accounts that is based on a review of outstanding receivables, historical collection information, and current economic conditions. The Company has strong collection history in all categories above except category b), and generally does not believe that an allowance for doubtful accounts for these categories except category b) is necessary. For receivables in category b), when the Company becomes aware of a customers inability to meet its financial obligations, such as in the case of bankruptcy or deterioration in the customers operating results, financial position, or credit rating, the Company records a specific reserve for bad debts to reduce the related receivable to the amount it believes to be collectable. The Company records a general allowance for doubtful collections for those accounts receivable considered to be slow paying, on the basis described above for accounts receivable balances of customers under category (b) above. There was an allowance of $6,055,000 and $492,000 for doubtful accounts at December 31, 2015 and December 31, 2014, respectively. Receivables are generally unsecured. Account balances are charged off against the allowance when the Company determines that certain receivable will probably not be recovered. The Company does not have off-balance sheet credit exposure related to its customers. As of December 31, 2015 and December 31, 2014, two customers accounted for 24% and 28%, respectively, of the accounts receivable balance. When a portion of the receivable balances of certain customers under category (b) above, is expected to be received in more than 12 months, the relevant balances are shown as a non current asset. Due to an uncertainty in the timing of the receipt of these balances the Company has decided to provide a general provision covering these balances. The Company retains it belief that the balances are recoverable and when recovery is achieved the appropriate reduction in the general provision will be shown. |
Property and Equipment | Property and Equipment Property and equipment is primarily comprised of leasehold property improvements, motor vehicles and equipment that are recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives as follows: motor vehicles 5 years, equipment between 3 and 5 years, leasehold property improvements, over the lesser of the estimated remaining useful life of the asset or the remaining term of the lease. Repairs and maintenance are charged to expense as incurred. Expenditures that substantially increase the useful lives of existing assets are capitalized. |
Investment | Investment Cost-based investments includes investments in companies for which we do not have the ability to exercise significant influence. The cost-based investments are analyzed for impairment based on current market and other factors relevant to the investments. No impairment was considered necessary as of December 31, 2015 or 2014. As of December 31, 2015 and 2014, we had $18,000 and $19,000 respectively of cost-based investments on our balance sheet. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that will be received for an asset or paid to transfer a liability (an exit price) in the principal. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which the first two are considered to be observable and the third unobservable: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs are supported by little or no market activity and are significant to the fair value of the assets or liabilities. |
Intangible Assets | Intangible Assets Intangible assets include software development costs and customer lists and are amortized on a straight-line basis over the estimated useful lives of five years for customer lists and ten years for software development. The Company periodically evaluates whether changes have occurred that would require revision of the remaining estimated useful life. The Company performs periodic reviews of its capitalized intangible assets to determine if the assets have continuing value to the Company. The Company expenses software development costs as incurred until technological feasibility has been established, at which time those costs are capitalized until the product is available for general release to customers. Judgement is required in determining when technological feasibility of a product is established. The Company has determined that after technological feasibility for software products is reached, the Company continues to address all high risk development issues through coding and testing prior to the release of the products to customers. The amortization of these costs is included in cost of revenue over the estimated life of the products. During the years ended December 31, 2015 and 2014 software development costs of $1,063,000 and $1,122,000, respectively, have been capitalized. |
Impairment of Other Long-Lived Assets | Impairment of Other Long-Lived Assets The Company evaluates the recoverability of its property and equipment and other long-lived assets whenever events or changes in circumstances indicate impairment may have occurred. An impairment loss is recognized when the net book value of such assets exceeds the estimated future undiscounted cash flows attributed to the assets or the business to which the assets relate. Impairment losses, if any, are measured as the amount by which the carrying value exceeds the fair value of the assets. During the years ended December 31, 2015 and 2014 the Company identified no impairment losses related to the Companys long-lived assets. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when it is realized or realizable and earned. The Company establishes persuasive evidence of a sales arrangement for each type of revenue transaction based on a signed contract with the customer and that delivery has occurred or services have been rendered, price is fixed and determinable, and collectability is reasonably assured. ● Software and licenses revenue from sales of perpetual licenses to telecom entities is recognized at the date of invoices raised for installments due under the agreement, unless payment terms exceed one year, as described below, presuming all other relevant revenue recognition criteria are met. Revenue from sales of perpetual licenses to other entities is recognized over the agreed collection period ● Revenue for user licenses purchased by customers is recognized when the user license is delivered except as set out below. ● Revenue for maintenance services is recognized over the period of delivery of the services except as set out below. ● Effective as of October 1, 2014, the Company amended certain existing customer contracts with respect to the terms under which those customers would pay the Company for perpetual licenses, user licenses and maintenance services provided by the Company. Existing customer contracts required payments for maintenance services to be made based on contractually specified fixed amounts, which were billed regularly through September 2014. Through that date the Company recorded revenue for licenses and maintenance services when those licenses and services were billed. Revenue for user licenses was recorded as earned and revenue for maintenance services was recorded based on a fixed annual fee, billed quarterly. The Company has modified the payment terms under certain of those existing customer contracts by entering into Revenue Sharing agreements with those customers. Under the terms of these Revenue Sharing agreements, future payments will be due from the customer when that customer has generated revenue from its customers who subscribe to use the Horizon products and services. Effective October 1, 2014 revenue will be recorded by the Company when it invoices the customer for the revenue share due to the Company. Certain customers who entered into revenue sharing arrangements had outstanding balances due to the Company as of September 30, 2014, which balances were included in accounts receivable at that date. Payments received after September 30, 2014, from those customers under revenue sharing agreements have been applied to the customers existing accounts receivable balances first. For those customers having balances due at September 30, 2014, revenue related to perpetual and user licenses and maintenance services will be recorded only after existing accounts receivable balances are fully collected. ● Revenues from Aishuo retail sales are recognized when the PSTN calls and texts are made by the customer Where the Company has entered into a Revenue Share with the customer, then all future revenue from granting of user licenses and for maintenance services will be recognized when the Company has delivered user licenses and is entitled to invoice. The Company enters into arrangements in which a customer purchases a combination of software licenses, maintenance services and post-contract customer support (PCS). As a result, judgment is sometimes required to determine the appropriate accounting, including how the price should be allocated among the deliverable elements if there are multiple elements. PCS may include rights to upgrades, when and if available, support, updates and enhancements. When vendor specific objective evidence (VSOE) of fair value exists for all elements in a multiple element arrangement, revenue is allocated to each element based on the relative fair value of each of the elements. VSOE of fair value is established by the price charged when the same element is sold separately. Accordingly, the judgments involved in assessing the fair values of various elements of an agreement can impact the recognition of revenue in each period. Changes in the allocation of the sales price between deliverables might impact the timing of revenue recognition, but would not change the total revenue recognized on the contract. When elements such as software and services are contained in a single arrangement, or in related arrangements with the same customer, we allocate revenue to each element based on its relative fair value, provided that such element meets the criteria for treatment as a separate unit of accounting. In the absence of fair value for a delivered element, revenue is first allocated to the fair value of the undelivered elements and then allocated to the residual delivered elements. In the absence of fair value for an undelivered element, the arrangement is accounted for as a single unit of accounting, resulting in a delay of revenue recognition for the delivered elements until the undelivered elements are fulfilled. No sales arrangements to date include undelivered elements for which VSOE does not exist. For purposes of revenue recognition for perpetual licenses, the Company considers payment terms exceeding one year as a presumption that the fee in the transaction is not fixed and determinable. This presumption however, may be overcome if persuasive evidence demonstrates that the Company has a business practice of extending payment terms and has been successful in collecting under the original terms, without providing any concessions. In doing so, the Company considers if the arrangement is sufficiently similar to historical arrangements in terms of similar customers and products is assessing whether there is evidence of a history of successful collection. In order to determine the companys historical experience is based on sufficiently similar arrangements, the Company considers the various factor including the types of customers and products, product life cycle, elements Included in the arrangement, length of payment terms and economics of license arrangement. If the presumption cannot be overcome due to a lack of such evidence, revenue should be recognized as payments become due, assuming all other revenue recognition criteria has been met. During 2015 78% of the Companys revenue was concentrated in the hands of two major customers. |
Leases | Leases Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Assets held under finance leases are recognized as assets of the Company at their fair value or, if lower, at the present value of the minimum lease payments, each determined at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight-line basis over the lease term. |
Advertising Expenses | Advertising Expenses It is the Companys policy to expense advertising costs as incurred. Advertising costs totaling $30,000 were incurred during the year ended December 31, 2015 (2014: $0). Advertising Expenses It is the Companys policy to expense advertising costs as incurred. Advertising costs totaling $30,000 were incurred during the year ended December 31, 2015 (2014: $0). |
Research and Development Expenses | Research and Development Expenses Research and development expenses include all direct costs, primarily salaries for Company personnel and outside consultants, related to the development of new products, significant enhancements to existing products, and the portion of costs of development of internal-use software required to be expensed. Research and development costs are charged to operations as incurred with the exception of those software development costs that may qualify for capitalization. The Company incurred research and development costs in the amount of $579,000 and $379,000 in the years ended December 31, 2015 and 2014, respectively. |
Debt Issue Costs | Debt Issue Costs Debt issue costs related to long-term debt are capitalized and amortized over the term of the related debt using the effective interest method. |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, operating loss, and tax credit carryforwards, and are measured using the enacted income tax rates and laws that will be in effect when the differences are expected to be recovered or settled. Realization of certain deferred income tax assets is dependent upon generating sufficient taxable income in the appropriate jurisdiction. The Company records a valuation allowance to reduce deferred income tax assets to amounts that are more likely than not to be realized. The initial recording and any subsequent changes to valuation allowances are based on a number of factors (positive and negative evidence). The Company considers its actual historical results to have a stronger weight than other, more subjective, indicators when considering whether to establish or reduce a valuation allowance. The Company continually evaluates its uncertain income tax positions and may record a liability for any unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties are recorded as a component of interest expense and other expense, respectively. Because tax laws are complex and subject to different interpretations, significant judgment is required. As a result, the Company makes certain estimates and assumptions in: (1) calculating its income tax expense, deferred tax assets, and deferred tax liabilities; (2) determining any valuation allowance recorded against deferred tax assets; and (3) evaluating the amount of unrecognized tax benefits, as well as the interest and penalties related to such uncertain tax positions. The Companys estimates and assumptions may differ significantly from tax benefits ultimately realized. |
Net Loss per Share | Net Loss per Share Basic net loss per share is calculated by dividing the net loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. Diluted loss per share takes into consideration common shares outstanding (computed under basic loss per share) and potentially dilutive securities. For the years ended December 31, 2015 and 2014, outstanding stock options, warrants and convertible debt are antidilutive because of net losses, and as such, their effect has not been included in the calculation of diluted net loss per share. Common shares issuable are considered outstanding as of the original approval date for purposes of earnings per share computations. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss), as defined, includes net income (loss), foreign currency translation adjustment, and all changes in equity (net assets) during a period from non-owner sources. To date, the Company has not had any significant transactions that are required to be reported in other comprehensive income (loss), except for foreign currency translation adjustments. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the fiscal year. The Company makes estimates for, among other items, useful lives for depreciation and amortization, determination of future cash flows associated with impairment testing for long-lived assets, determination of the fair value of stock options and warrants, valuation allowance for deferred tax assets, allowances for doubtful accounts, and potential income tax assessments and other contingencies. The Company bases its estimates on historical experience, current conditions, and other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates and assumptions. |
Financial Instruments | Financial Instruments The carrying amounts of our financial assets and liabilities such as cash, current accounts receivable and accounts payable approximate their fair values based on level 1 inputs in the fair value hierarchy because of the short maturity of these instruments. Due to the conversion features and other terms, it is not practical to estimate the fair value of amounts due to related parties and long term debt. |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based awards at fair value on date of grant and recognizes compensation over the service period for awards expected to vest. The fair value of stock options is determined using the Black-Scholes option pricing model, which includes subjective judgements about the expected life of the awards, forfeiture rates and stock price volatility. The Company issues new shares of common stock to satisfy exercises and vesting of awards, granted under our stock plans. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates (ASU) No. 2014-09, Revenue from Contracts with Customers In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, Income Taxes Balance Sheet Reclassification of Deferred Taxes (Topic 740) In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which amends ASC 835-30, Interest Imputation of Interest. This ASU requires that debt issuance costs related to borrowings be presented in the balance sheet as a direct deduction from the carrying amount of the borrowing. This treatment is consistent with debt discounts. The ASU does not affect the amount or timing of expenses for debt issuance costs. The effective date will be the first quarter of fiscal year 2017 and will be applied retrospectively. The adoption will not have a material effect on the company's consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which amends ASC 835-30, Interest Imputation of Interest. This ASU clarifies the presentation and subsequent measurement of debt issuance costs associated with lines of credit. These costs may be presented as an asset and amortized ratably over the term of the line of credit arrangement, regardless of whether there are outstanding borrowings on the arrangement. The effective date will be the first quarter of fiscal year 2017 and will be applied retrospectively. The adoption will not have a material effect on the company's consolidated financial statements. In 2015, the FASB issued new guidance related to consolidations. The new standard amends the guidelines for determining whether certain legal entities should be consolidated and reduces the number of consolidation models. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. We are evaluating the impact, if any, of adopting this new accounting guidance on our consolidated financial statements. |
Suzhou Aishuo Network Informa23
Suzhou Aishuo Network Information Co. Ltd. (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of assets, liabilities and results of operations of AISHOU | Summarized assets, liabilities and results of operations of AISHOU are as follows: December 31 December 31 2015 2014 Assets $ 43 3 Intercompany receivables/(payables) (123 ) 151 Other liabilities (60 ) - Revenue 56 - Net loss (286 ) (8 ) |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consist of the following: (in thousands) December 31 December 31 2015 2014 Leasehold improvements $ - $ 265 Motor vehicle - 120 Equipment 291 348 291 733 Less accumulated depreciation (195 ) (521 ) Property and equipment, net $ 96 $ 212 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Intangible assets consist primarily of software development costs and customer and reseller relationships which are amortized over the estimated useful life, generally on a straight-line basis with the exception of customer relationships, which are generally amortized over the greater of straight-line or the related assets pattern of economic benefit. (in thousands) December 31 December 31 2015 2014 Horizon software $ 17,879 $ 16,936 ZTEsoft Telecom software 469 495 Contractual relationships 885 885 19,233 18,316 Less accumulated amortization (9,410 ) (7,356 ) Intangible assets, net $ 9,823 $ 10,960 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long - term liabilities | Long term liabilities consist of the following (in thousands) December 31 December 31 2015 2014 Vehicle loan $ - $ 32 Equipment loan 5 15 Office term loan - 134 5 181 Less current portion (5 ) (73 ) Balance $ - $ 108 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of due to related parties | Amounts due to related parties include the following: (in thousands) December 31 December 31 2015 2014 Loans due to stockholders (current and former officers and directors) Due within one year $ - $ 600 Long-term 2,354 2,598 $ 2,354 $ 3,198 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stock purchase warrants | At December 31, 2015, the Company had reserved 3,294,746 shares of its common stock for the following outstanding warrants: Number of Warrants Exercise Price Expiry 116,760 $ 0.86 no expiry date 1,209,675 4.25 January 2019 100,000 4.00 July 2016 60,000 6.55 December 2015 68,850 2.25 December 2018 403,786 3.00 December 2018 402,568 3.50 December 2018 857,143 2.50 August 2018 75,964 2.50 September 2018 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of equity incentive plan | A summary of the Companys 2013 Equity Incentive Plan as of December 31, 2015, is as follows: Weighted Number of Exercise Outstanding at December 31, 2013 - - Options issued 500,000 4.54 Outstanding at December 31, 2014 500,000 $ 4.54 Options issued 564,000 1.09 Options forfeited (120,000 ) 4.54 Outstanding at December 31, 2015 944,000 $ 2.48 |
Schedule of other stock options | A summary of the Companys other stock options as of December 31, 2015, is as follows: Weighted Number of Exercise Outstanding at December 31, 2013 584,650 0.53 Options forfeited - - Outstanding at December 31, 2014 584,650 $ 0.53 Options issued 291,900 0.53 Options forfeited (850 ) 0.51 Outstanding at December 31, 2015 875,700 $ 0.53 |
Schedule of stock options outstanding exercise price range | The following table summarizes stock options outstanding at December 31, 2015: Number Average Number Intrinsic Outstanding Remaining Exercisable Value at Contractual at at December 31, Life December 31, December 31, Exercise Price 2015 (Years) 2015 2015 $ 0.53 291,900 4.50 291,900 $ 183,987 0.53 291,900 6.50 291,900 183,987 0.53 291,900 9.75 - - 4.54 380,000 8.00 - - 1.09 564,000 9.50 - - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of loss from operations before income taxes | Loss from operations before income taxes consisted of the following (in thousands): December 31, December 31, 2015 2014 United States $ (2,281 ) $ (1,646 ) International (8,663 ) (533 ) Total $ (10,944 ) $ (2,179 ) |
Schedule of net deferred tax liability | The components of the net deferred tax liability and the amount of the valuation allowance are as follows: (in thousands) December 31 2015 2014 Deferred tax assets (liabilities) Net operating loss carryforwards - United States $ 1,205 $ 829 Net operating loss carryforwards - International 3,322 3,249 Valuation allowance (4,527 ) (4,078 ) Net deferred tax liabilities $ - $ - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum contractual commitments | Minimum contractual commitments, as of December 31, 2015, is as follows: Operating Long-term leases Financing 2016 $ 23,000 $ 5,000 2017 - - 2018 - - |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of revenues by geographic areas | The Companys revenues were generated in the following geographic areas: 2015 2014 China $ 57,000 $ 0 Rest of Asia $ 900,000 $ 3,700,000 Europe and Russia $ 25,000 $ 800,000 The Americas $ 550,000 $ 600,000 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Details Narrative) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Number | Dec. 31, 2014USD ($)Number | |
Allowance for doubtful accounts | $ 6,055 | $ 492 |
Capitalized cost for software development | 1,063 | 1,122 |
Advertising costs | 30,000 | 0 |
Research and development costs | 579 | 379 |
Investment | $ 18 | $ 19 |
Customer Lists [Member] | ||
Useful life of intangible assets | 5 years | |
Software Development [Member] | ||
Useful life of intangible assets | 10 years | |
Motor Vehicle [Member] | ||
Useful life | 5 years | |
Equipment [Member] | Minimum [Member] | ||
Useful life | 3 years | |
Equipment [Member] | Maximum [Member] | ||
Useful life | 5 years | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||
Percentage of concentration risk | 24.00% | 28.00% |
Number of customers | Number | 2 | 2 |
Customer Concentration Risk [Member] | Sales Revenue [Member] | ||
Percentage of concentration risk | 78.00% | |
Number of customers | Number | 2 |
Suzhou Aishuo Network Informa34
Suzhou Aishuo Network Information Co. Ltd. (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | $ 15,934 | $ 24,406 |
Net loss | (10,874) | (1,864) |
Suzhou Aishuo Network Information Co. Ltd [Member] | ||
Assets | 43 | 3 |
Intercompany receivables/(payables) | (123) | 151 |
Other liabilities | (60) | |
Revenue | 56 | |
Net loss | $ (286) | $ (8) |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property and equipment, gross | $ 291 | $ 733 |
Less accumulated depreciation | (195) | (521) |
Property and equipment, net | 96 | 212 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 265 | |
Motor Vehicle [Member] | ||
Property and equipment, gross | 120 | |
Equipment [Member] | ||
Property and equipment, gross | $ 291 | $ 348 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible assets, gross | $ 19,233 | $ 18,316 |
Less accumulated amortization | (9,410) | (7,356) |
Intangible assets, net | 9,823 | 10,960 |
Horizon Software [Member] | ||
Intangible assets, gross | 17,879 | 16,936 |
ZTEsoft Telecom Software [Member] | ||
Intangible assets, gross | 469 | 495 |
Contractual Relationships [Member] | ||
Intangible assets, gross | $ 885 | $ 885 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) $ in Thousands | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortization of intangible assets first year | $ 2,000 |
Amortization of intangible assets second year | 2,000 |
Amortization of intangible assets third year | 2,000 |
Amortization of intangible assets four year | 2,000 |
Amortization of intangible assets fifth year | $ 2,000 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long term debt | $ 5 | $ 181 |
Less current portion | 5 | 73 |
Balance | 108 | |
Vehicle Loan [Member] | ||
Long term debt | 32 | |
Equipment Loan [Member] | ||
Long term debt | 5 | 15 |
Office Term Loan [Member] | ||
Long term debt | $ 134 |
Long-term Debt (Details Narrati
Long-term Debt (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Office Term Loan [Member] | General and Administrative Expense [Member] | |
Gain on early settlement | $ 32 |
Convertible Debenture (Details
Convertible Debenture (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amortization debt discount | $ 199 | ||
Amortization beneficial conversion feature | 101 | ||
Private Placement [Member] | 8% Convertible Debenture [Member] | |||
Debt face amount | $ 3,500 | $ 3,500 | |
Number of common shares issued upon conversion | 1,555,556 | ||
Debt instrument term | 3 years | ||
Debt frequency payment | Quarterly | ||
Fair value of warrant | 598,500 | ||
Fair value of debt beneficial conversion feature | 302,994 | ||
Amortization debt discount | 199,233 | ||
Amortization beneficial conversion feature | $ 100,980 | ||
Description of warrants conversion terms | Each entitled to purchase one-fourth of a share of common stock. | ||
Private Placement [Member] | 8% Convertible Debenture [Member] | Class C Warrant [Member] | |||
Number of warrant shares issued upon conversion | 388,889 | ||
Warrant term | 4 years | ||
Private Placement [Member] | 8% Convertible Debenture [Member] | Class D Warrant [Member] | |||
Number of warrant shares issued upon conversion | 388,889 | ||
Warrant term | 4 years |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loans due to stockholders (current and former officers and directors) | ||
Due within one year | $ 600 | |
Long-term | 2,354 | 2,598 |
Due from officers or stockholders | $ 2,354 | $ 3,198 |
Related-Party Transactions (D42
Related-Party Transactions (Details Narrative) (USD $) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Due from officers or stockholders | $ 2,354 | $ 3,198 |
Maturity date | Apr. 1, 2017 | |
Interest rate | 0.21% | |
Horizon Latin America [Member] | ||
Initial payments received upon perpetual software license | $ 500 | |
Percentage ownership interest | 19.00% |
Share Capital (Details)
Share Capital (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
First Warrant [Member] | |
Number of Warrants | shares | 116,760 |
Exercise Price (in dollars per share) | $ / shares | $ 0.86 |
Second Warrant [Member] | |
Number of Warrants | shares | 1,209,675 |
Exercise Price (in dollars per share) | $ / shares | $ 4.25 |
Expiry | 2019-01 |
Third Warrant [Member] | |
Number of Warrants | shares | 100,000 |
Exercise Price (in dollars per share) | $ / shares | $ 4 |
Expiry | 2016-07 |
Four Warrant [Member] | |
Number of Warrants | shares | 60,000 |
Exercise Price (in dollars per share) | $ / shares | $ 6.55 |
Expiry | 2015-12 |
Five Warrant [Member] | |
Number of Warrants | shares | 68,850 |
Exercise Price (in dollars per share) | $ / shares | $ 2.25 |
Expiry | 2018-12 |
Six Warrant [Member] | |
Number of Warrants | shares | 403,786 |
Exercise Price (in dollars per share) | $ / shares | $ 3 |
Expiry | 2018-12 |
Seven Warrant [Member] | |
Number of Warrants | shares | 402,568 |
Exercise Price (in dollars per share) | $ / shares | $ 3.50 |
Expiry | 2018-12 |
Eight Warrant [Member] | |
Number of Warrants | shares | 857,143 |
Exercise Price (in dollars per share) | $ / shares | $ 2.50 |
Expiry | 2018-08 |
Nine Warrant [Member] | |
Number of Warrants | shares | 75,964 |
Exercise Price (in dollars per share) | $ / shares | $ 2.50 |
Expiry | 2018-09 |
Share Capital (Details Narrativ
Share Capital (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Aug. 10, 2015 | Jul. 21, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Preferred stock, authorized | 50,000,000 | 50,000,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||
Preferred stock, issued | 170,940 | 170,940 | ||
Preferred stock, outstanding | 170,940 | 170,940 | ||
Temporary equity issued | $ 73 | $ 90 | ||
Common stock, authorized | 200,000,000 | 200,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||
Number of shares issued upon services | 15,000 | |||
Value of shares issued upon services | $ 65 | |||
Number of shares issued upon services receive in future | 75,000 | |||
Value of shares issued upon services receive in future | $ 322,500 | |||
Number of shares issued upon settlement | $ 822 | |||
Value of shares issued upon settlement | 553,500 | |||
Aegis Capital Corp [Member] | Underwriting Agreement [Member] | ||||
Number of shares issued upon new issue | 1,714,286 | |||
Share price (in dollars per share) | $ 1.75 | |||
Number of additional shares issued upon new issue | 151,928 | |||
Proceeds from issuance public offering | $ 2,500 | |||
Warrant [Member] | ||||
Number of common shares reserved for outstanding warrants | 3,294,746 | |||
Warants outstanding | 933,107 | |||
Warrant [Member] | Aegis Capital Corp [Member] | Underwriting Agreement [Member] | ||||
Exercise price (in dollars per share) | $ 2.50 | |||
Debt instrument term | 3 years | |||
Number of shares issued upon new issue | 857,143 | |||
Number of additional shares issued upon new issue | 75,964 | |||
Proceeds from issuance public offering | $ 800 | |||
Mandatorily Redeemable Preferred Shares [Member] | One Horizon Group Plc [Member] | ||||
Temporary equity issued | $ 50,000 | |||
Mandatorily Redeemable Preferred Shares [Member] | One Horizon Group Plc [Member] | GBP [Member] | ||||
Temporary equity par value (in pound per share) | $ 1 | |||
Private Placement [Member] | ||||
Proceeds from private placement | $ 982 | $ 1,000 | ||
Number of shares issued upon services | 25,000 | |||
Value of shares issued upon services | $ 107,500 | |||
Private Placement [Member] | Class B Warrant [Member] | ||||
Number of shares issued | 100,000 | |||
Description of warrants conversion terms | Each warrant convertible to one share of common stock | |||
Exercise price (in dollars per share) | $ 4 | |||
Private Placement [Member] | 10% Series A Convertible Preferred Stock [Member] | ||||
Number of shares issued | 170,940 | |||
Conversion price (in dollars per share) | $ 5.85 | |||
Description of redemption terms | Company completes a financing of $10 million or greater prior to Maturity, the Series A Preferred Stock will be redeemed at a price equal to the original purchase price plus all accrued but unpaid dividends. | |||
Preferred stock, issued | 170,940 | |||
Preferred stock, outstanding | 170,940 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - 2013 Equity Incentive Plan [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at beginning | 500,000 | |
Options issued | 564,000 | 500,000 |
Options forfeited | (120,000) | |
Outstanding at ending | 944,000 | 500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning | $ 4.54 | |
Options issued | 1.09 | 4.54 |
Options forfeited | 4.54 | |
Outstanding at ending | $ 2.48 | $ 4.54 |
Stock-Based Compensation (Det46
Stock-Based Compensation (Details 1) - Other Stock Options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at beginning | 584,650 | 584,650 |
Options issued | 291,900 | |
Options forfeited | (850) | |
Outstanding at ending | 875,700 | 584,650 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning | $ 0.53 | $ 0.53 |
Options issued | 0.53 | |
Options forfeited | 0.51 | |
Outstanding at ending | $ 0.53 | $ 0.53 |
Stock-Based Compensation (Det47
Stock-Based Compensation (Details 2) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)shares | |
Exercise Price $0.53 [Member] | |
Number Outstanding | 291,900 |
Average Remaining Contractual Life (Years) | 4 years 6 months |
Number Exercisable | 291,900 |
Intrinsic Value | $ | $ 183,987 |
Exercise Price $0.53 [Member] | |
Number Outstanding | 291,900 |
Average Remaining Contractual Life (Years) | 6 years 6 months |
Number Exercisable | 291,900 |
Intrinsic Value | $ | $ 183,987 |
Exercise Price $0.53 [Member] | |
Number Outstanding | 291,900 |
Average Remaining Contractual Life (Years) | 9 years 9 months |
Number Exercisable | |
Intrinsic Value | $ | |
Exercise Price $4.54 [Member] | |
Number Outstanding | 380,000 |
Average Remaining Contractual Life (Years) | 8 years |
Number Exercisable | |
Intrinsic Value | $ | |
Exercise Price $1.09 [Member] | |
Number Outstanding | 564,000 |
Average Remaining Contractual Life (Years) | 9 years 6 months |
Number Exercisable | |
Intrinsic Value | $ |
Stock-Based Compensation (Det48
Stock-Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Aug. 06, 2013 | |
Other Stock Options [Member] | |||
Number of shares options gented/issued | 291,900 | ||
Weighted average exercise price (in dollars per share) | $ 0.53 | ||
Grant date fair value | $ 255 | ||
Vesting period | 2 years | ||
Compensation expense | $ 64 | $ 0 | |
Unrecognized compensation expense | $ 191 | ||
Unrecognized compensation expense recognition period | 2 years | ||
Number of options forfeited | 850 | ||
2013 Equity Incentive Plan [Member] | |||
Number of shares available for grants | 3,000,000 | ||
Number of addiotnal shares added to available for grants per year | 1,000,000 | ||
Number of shares options gented/issued | 564,000 | 500,000 | |
Description of vesting period terms | These options become fully vested on May 12, 2018. | The options become fully vested on January 15, 2017 | |
Weighted average exercise price (in dollars per share) | $ 1.09 | $ 4.54 | |
Expiration date | Jan. 15, 2024 | ||
Grant date fair value | $ 2,576 | ||
Forfeiture rate | 30.00% | ||
Vesting period | 3 years | ||
Compensation expense | $ 596 | $ 516 | |
Unrecognized compensation expense | $ 706 | ||
Unrecognized compensation expense recognition period | 3 years | ||
Number of options forfeited | 120,000 | ||
Number of common stock reserved for future issuance | 5,875,700 | ||
Risk-free interest rate | 2.50% | 2.50% | |
Expected term | 3 years | 2 years | |
Dividend yield | 0.00% | 0.00% | |
Volatility rate | 95.00% | 123.00% | |
2013 Equity Incentive Plan [Member] | Minimum [Member] | |||
Expiration date | May 12, 2015 | ||
2013 Equity Incentive Plan [Member] | Maximum [Member] | |||
Expiration date | May 12, 2025 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
United States | $ (2,281) | $ (1,646) |
International | (8,663) | (533) |
Total | $ (10,944) | $ (2,179) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets (liabilities) | ||
Net operating loss carryforwards - United States | $ 1,205 | $ 829 |
Net operating loss carryforwards - International | 3,322 | 3,249 |
Valuation allowance | (4,527) | (4,078) |
Net deferred tax liabilities |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income tax benefit | $ (20) | $ (210) |
Statutory federal tax rate | 34.00% | 34.00% |
Federal net operating losses | $ 3,500 | |
Increase in valuation allowance | 449 | $ 646 |
Non-Capital Loss Carryforward [Member] | ||
Federal net operating losses | $ 13,100 |
Commitments and Contingencies52
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating leases | |
2,016 | $ 23 |
2,017 | |
2,018 | |
Long-term Financing | |
2,016 | 5 |
2,017 | |
2,018 |
Commitments and Contingencies53
Commitments and Contingencies (Details Narrative) (USD $) - USD ($) $ in Thousands | Dec. 23, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Rent expense | $ 86 | $ 100 | |
Civil Fraud In connection With Sale Of Subsidary [Member] | |||
Name of defendant | Broadband Satellite Services | ||
Domicile of litigation | High Court, Queens Bench Division, Commercial Court No. 2014 folio 1560. | ||
Claim amount | $ 640 | ||
Amount of counter claim by defendant | $ 5,800 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | $ 1,532 | $ 5,122 |
China [Member] | ||
Revenues | 57 | 0 |
Rest Of Asia [Member] | ||
Revenues | 900 | 3,700 |
Europe and Russia [Member] | ||
Revenues | 25 | 800 |
The Americas [Member] | ||
Revenues | $ 550 | $ 600 |
Segment Information (Details Na
Segment Information (Details Narrative) | 12 Months Ended |
Dec. 31, 2015Number | |
Segment Reporting [Abstract] | |
Number of segments | 1 |