Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 02, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | QUMU CORP | |
Entity Central Index Key | 892,482 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 9,529,153 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 5,202 | $ 7,690 |
Receivables, net of allowance for doubtful accounts of $83 and $21, respectively | 4,954 | 5,529 |
Contract assets | 339 | 0 |
Income tax receivable | 277 | 156 |
Prepaid expenses and other current assets | 1,934 | 1,830 |
Total current assets | 12,706 | 15,205 |
Property and equipment, net of accumulated depreciation of $2,697 and $4,678, respectively | 533 | 911 |
Intangible assets, net | 5,202 | 6,295 |
Goodwill | 7,224 | 7,390 |
Deferred income taxes, non-current | 69 | 77 |
Other assets, non-current | 4,200 | 4,398 |
Total assets | 29,934 | 34,276 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 2,961 | 3,878 |
Accrued compensation | 1,216 | 1,824 |
Deferred revenue | 8,514 | 8,923 |
Deferred rent | 49 | 181 |
Financing obligations | 226 | 1,047 |
Warrant liability | 2,886 | 819 |
Total current liabilities | 15,852 | 16,672 |
Long-term liabilities: | ||
Deferred revenue, non-current | 947 | 141 |
Income taxes payable, non-current | 0 | 3 |
Deferred tax liability, non-current | 76 | 153 |
Deferred rent, non-current | 298 | 507 |
Financing obligations, non-current | 0 | 3 |
Term loan, non-current | 7,956 | 7,605 |
Other non-current liabilities | 485 | 0 |
Total long-term liabilities | 9,762 | 8,412 |
Total liabilities | 25,614 | 25,084 |
Commitments and contingencies (Note 4) | 0 | 0 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, authorized 250,000 shares, no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, authorized 29,750,000 shares, issued and outstanding 9,529,153 and 9,364,804, respectively | 95 | 94 |
Additional paid-in capital | 68,435 | 68,035 |
Accumulated deficit | (61,319) | (56,197) |
Accumulated other comprehensive loss | (2,891) | (2,740) |
Total stockholders’ equity | 4,320 | 9,192 |
Total liabilities and stockholders’ equity | $ 29,934 | $ 34,276 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 81 | $ 21 |
Property and equipment, accumulated depreciation and amortization | $ 2,697 | $ 4,678 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 29,750,000 | 29,750,000 |
Common stock, shares issued (in shares) | 9,529,153 | 9,364,804 |
Common stock, shares outstanding (in shares) | 9,529,153 | 9,364,804 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 250,000 | 250,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues: | ||||
Software licenses and appliances | $ 2,867 | $ 929 | $ 3,318 | $ 2,149 |
Service | 4,759 | 5,725 | 9,139 | 11,216 |
Total revenues | 7,626 | 6,654 | 12,457 | 13,365 |
Cost of revenues: | ||||
Software licenses and appliances | 804 | 368 | 1,139 | 862 |
Service | 1,602 | 1,918 | 3,379 | 4,008 |
Total cost of revenues | 2,406 | 2,286 | 4,518 | 4,870 |
Gross profit | 5,220 | 4,368 | 7,939 | 8,495 |
Operating expenses: | ||||
Research and development | 1,639 | 1,798 | 3,542 | 3,907 |
Sales and marketing | 2,412 | 2,524 | 4,592 | 4,975 |
General and administrative | 1,747 | 2,009 | 3,928 | 4,469 |
Amortization of purchased intangibles | 227 | 226 | 456 | 449 |
Total operating expenses | 6,025 | 6,557 | 12,518 | 13,800 |
Operating loss | (805) | (2,189) | (4,579) | (5,305) |
Other income (expense): | ||||
Interest expense, net | (510) | (334) | (1,354) | (651) |
Decrease (increase) in fair value of warrant liability | (278) | 11 | 109 | (67) |
Other, net | (16) | (124) | (403) | (179) |
Total other expense, net | (804) | (447) | (1,648) | (897) |
Loss before income taxes | (1,609) | (2,636) | (6,227) | (6,202) |
Income tax benefit | (78) | (25) | (166) | (29) |
Net loss | $ (1,531) | $ (2,611) | $ (6,061) | $ (6,173) |
Earnings per share, basic (in dollars per share) | $ (0.16) | $ (0.28) | $ (0.64) | $ (0.66) |
Weighted average number of shares outstanding, basic (in shares) | 9,484 | 9,356 | 9,427 | 9,301 |
Warrant fair value adjustment net of tax | $ 0 | $ (11) | $ 0 | $ 0 |
Net income (loss) from continuing operations available to common shareholders, diluted | $ (1,531) | $ (2,622) | $ (6,061) | $ (6,173) |
Earnings per share, diluted (in dollars per share) | $ (0.16) | $ (0.28) | $ (0.64) | $ (0.66) |
Weighted average number of shares outstanding, diluted (in shares) | 9,484 | 9,357 | 9,427 | 9,301 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (1,531) | $ (2,611) | $ (6,061) | $ (6,173) |
Other comprehensive income: | ||||
Net change in foreign currency translation adjustments | (769) | 559 | (146) | 696 |
Total other comprehensive income | (769) | 559 | (146) | 696 |
Total comprehensive loss | $ (2,300) | $ (2,052) | $ (6,207) | $ (5,477) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities: | ||
Net loss | $ (6,061) | $ (6,173) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,347 | 1,548 |
Stock-based compensation | 438 | 783 |
Accretion of debt discount and issuance costs | 1,035 | 236 |
Loss on lease contract termination | 177 | |
Change in fair value of warrant liability | (109) | 67 |
Deferred income taxes | (72) | (71) |
Changes in operating assets and liabilities: | ||
Receivables | 588 | 2,425 |
Contract assets | 211 | 0 |
Income taxes receivable / payable | (130) | 135 |
Prepaid expenses and other assets | 197 | 710 |
Accounts payable and other accrued liabilities | (1,019) | 315 |
Accrued compensation | (604) | (522) |
Deferred revenue | 938 | (368) |
Deferred rent | (144) | (150) |
Other non-current liabilities | 436 | 0 |
Net cash used in operating activities | (2,772) | (1,065) |
Investing activities: | ||
Purchases of property and equipment | (73) | (20) |
Net cash used in investing activities | (73) | (20) |
Financing activities: | ||
Proceeds from term loan and warrant issuance | 10,000 | 0 |
Principal payments on term loan | (8,000) | 0 |
Payments for term loan issuance costs | (1,308) | (125) |
Principal payments on financing obligations | (247) | (255) |
Common stock repurchases to settle employee withholding liability | (27) | (11) |
Net cash provided by (used in) financing activities | 418 | (391) |
Effect of exchange rate changes on cash | (61) | 94 |
Net increase (decrease) in cash and cash equivalents | (2,488) | (1,382) |
Cash and cash equivalents, beginning of period | 7,690 | 10,364 |
Cash and cash equivalents, end of period | 5,202 | 8,982 |
Supplemental disclosures of net cash paid (received) during the period: | ||
Income taxes, net | 37 | (106) |
Interest, net | $ 35 | $ 420 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation Qumu Corporation (the "Company") provides the software applications businesses use to create, manage, secure, deliver and measure the success of their videos. The Company's innovative solutions release the power of video to engage and empower employees, partners and clients, allowing organizations around the world to realize the greatest possible value from video they create and publish. Whatever the audience size, viewer device or network configuration, the Company's solutions are how business does video. The Company views its operations and manages its business as one segment and one reporting unit. Factors used to identify the Company's single operating segment and reporting unit include the financial information available for evaluation by the chief operating decision maker in making decisions about how to allocate resources and assess performance. The Company manages the marketing of its products and services through regional sales representatives and independent distributors in the United States and international markets. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The accompanying condensed consolidated financial statements are unaudited and have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Pursuant to such rules and regulations, certain financial information and footnote disclosures normally included in a complete set of financial statements have been condensed or omitted. However, in the opinion of management, the financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position and results of operations and cash flows of the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2017 . The Company has continued to experience recurring operating losses and negative cash flows from operating activities. The ability of the Company to continue as a going concern is dependent upon the Company maintaining compliance with its term loan covenants beginning September 30, 2018. The Company's credit agreement is described in Note 4–"Commitments and Contingencies." If an event of default occurs due to the Company not maintaining compliance with its covenants, the lender may accelerate the repayment of outstanding principal, which could negatively impact the Company’s ability to fund its working capital requirements, capital expenditures and general corporate expenses. The Company is projecting future compliance with its covenants under its current operating plan and, as described in Note 10–"Subsequent Events," the sale of BriefCam and partial prepayment of the term loan. Recently Adopted Accounting Standards Revenue from Contracts with Customers On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and the related amendments ("Topic 606") using the modified retrospective transition method. Under this method, the Company evaluated contracts that were in effect at the beginning of fiscal 2018 as if those contracts had been accounted for under Topic 606. The Company did not evaluate individual modifications for those periods prior to the adoption date, but the aggregate effect of all modifications as of the adoption date and such effects are provided below. Under the modified retrospective transition approach, periods prior to the adoption date were not adjusted and continue to be reported in accordance with historical, pre-Topic 606 accounting. A cumulative catch up adjustment was recorded to beginning accumulated deficit to reflect the impact of all existing arrangements under Topic 606. At the adoption date, the Company adjusted accumulated deficit by $939,000 , primarily driven by uncompleted contracts for which revenue will not be recognized in future periods under Topic 606, partially offset by the incremental originating costs associated with those contracts. The cumulative effect of the changes made to our January 1, 2018 condensed consolidated balance sheet from the modified retrospective adoption of Topic 606 was as follows (in thousands): December 31, Adjustments January 1, Assets: Contract assets $ — $ 550 $ 550 Prepaid expenses and other current assets 1,830 (99 ) 1,731 Other assets, non-current 4,398 (10 ) 4,388 Liabilities: Deferred revenue 8,923 (493 ) 8,430 Deferred revenue, non-current 141 — 141 Stockholders’ equity: Accumulated deficit (56,197 ) 939 (55,258 ) Accumulated other comprehensive loss (2,740 ) (5 ) (2,745 ) The most significant impact of the adoption of Topic 606 was on the Company's term software licenses that, under the Company's previous revenue accounting ("Topic 605"), would have continued to be recognized into revenue ratably in 2018 and beyond. However, under Topic 606 the standalone selling price attributable to the license is recognized upon transfer of control resulting in up-front recognition, typically upon fulfillment. The timing of revenue recognition for perpetual software licenses, hardware, and professional services is expected to remain substantially unchanged. See Note 2–"Revenue" for the Company's revenue recognition policy after the adoption of Topic 606. Revenue generated under Topic 606 is expected to be approximately $1.1 million lower than revenue would have been under Topic 605 for the year ending December 31, 2018. The following table summarizes the effects of adopting Topic 606 on the Company’s condensed consolidated statement of operations and comprehensive income (loss) for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 Revenues $ 7,626 $ 240 $ 7,866 $ 12,457 $ 424 $ 12,881 Cost of revenues 2,406 10 2,416 4,518 18 4,536 Sales and marketing 2,412 14 2,426 4,592 38 4,630 Net loss (1,531 ) 216 (1,315 ) (6,061 ) 368 (5,693 ) Net change in foreign currency translation adjustments (769 ) 14 (755 ) (146 ) 10 (136 ) Total comprehensive loss (2,300 ) 230 (2,070 ) (6,207 ) 378 (5,829 ) The following table summarizes the effects of adopting Topic 606 on the Company’s condensed consolidated balance sheet as of June 30, 2018 : June 30, 2018 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 Assets: Contract assets 339 (339 ) — Prepaid expenses and other current assets 1,934 50 1,984 Other assets, non-current 4,200 3 4,203 Liabilities: Deferred revenue 8,514 275 8,789 Deferred revenue, non-current 947 (5 ) 942 Stockholders’ equity: Accumulated deficit (61,319 ) (571 ) (61,890 ) Accumulated other comprehensive loss (2,891 ) 15 (2,876 ) The Company’s net cash used in operating activities for the six months ended June 30, 2018 did not change due to the adoption of Topic 606. The following table summarizes the effects of adopting Topic 606 on the financial statement line items of the Company’s condensed consolidated statement of cash flows for the six months ended June 30, 2018 : Six Months Ended June 30, 2018 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 Operating activities: Net loss $ (6,061 ) $ 368 $ (5,693 ) Adjustments to reconcile net loss to net cash used in operating activities: Changes in operating assets and liabilities: Contract assets 211 (211 ) — Prepaid expenses and other assets 197 56 253 Deferred revenue 938 (213 ) 725 Financial Instruments In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall , which the Company adopted on January 1, 2018, modifying its accounting and required disclosures for its equity investment previously accounted for under the cost basis method of accounting. The Company’s equity investment consists of its investment totaling $3.1 million in convertible preferred stock of privately-held BriefCam, Ltd. (“BriefCam”), as described in Note 9–"Investment in Software Company," which is included in other assets in the condensed consolidated balance sheets. The new standard eliminated the cost method of accounting for investments in equity securities that do not have readily determinable fair values and permits the election of a measurement alternative that allows such securities to be recorded at cost, less impairment, if any, plus or minus changes resulting from observable price changes in market-based transactions for an identical or similar investment of the same issuer. The Company adopted the provisions of the new standard applicable to its investment in BriefCam on a prospective basis and elected the measurement alternative for non-marketable investments previously accounted for under the cost method of accounting. Gains and losses resulting from observable price changes in market-based transactions for an identical or similar investment of the same issuer or impairment will be recorded through net income (loss) in the period incurred. The Company’s investment in BriefCam had a carrying value of $3.1 million as of June 30, 2018 and December 31, 2017 . During the six months ended June 30, 2018 , there were no observable price changes or impairments related to the Company’s non-marketable investment in the equity security. See Note 10–"Subsequent Events" for information relating to the sale of the Company’s investment in BriefCam subsequent to June 30, 2018 . Income Taxes In March 2018, the Company adopted ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which updates the income tax accounting in U.S. GAAP to reflect the SEC interpretive guidance released on December 22, 2017, when the Tax Cuts and Jobs Act of 2017 was signed into law. Additional information regarding the adoption of this standard is contained in Note 7–"Income Taxes." Accounting Standards Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) , which allows a reclassification from accumulated other comprehensive income (loss) to retained earnings (accumulated deficit) for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 and requires certain disclosures regarding stranded tax effects in accumulated other comprehensive income (loss). This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted during interim or annual periods. The Company does not believe the impact of adopting this standard will be material to its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The purpose of the amendment is to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not believe the impact of adopting this standard will be material to its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which will supersede the existing lease guidance and will require all leases with a term greater than 12 months to be recognized in the statements of financial position and eliminate current real estate-specific lease guidance, while maintaining substantially similar classification criteria for distinguishing between finance leases and operating leases. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact on its consolidated financial statements of adopting this standard, which will require right-of-use assets and lease liabilities be recorded in the consolidated balance sheet for operating leases. |
Revenue (Notes)
Revenue (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company generates revenue through the sale of enterprise video content management software, hardware, maintenance and support, and professional and other services. Software sales may take the form of a perpetual software license, a cloud-hosted software as a service (SaaS) or a term software license. Software licenses and appliances revenue includes sales of perpetual software licenses and hardware. Service revenue includes SaaS, term software licenses, maintenance and support, and professional and other services. An individual sale can range from single year agreements for thousands of dollars to multi-year agreements for over a million dollars. The Company follows a five-step model to assess each contract of a sale or service to a customer: identify the legally binding contract, identify the performance obligations, determine the transaction price, allocate the transaction price, and determine whether revenue will be recognized at a point in time or over time basis. Revenue is recognized upon transfer of control of promised products or services (i.e., performance obligations) to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for promised goods or services. The Company’s performance obligations are satisfied either over time (for cloud-hosted software as a service, maintenance and support, and other services) or at a point in time (for software licenses and hardware). The Company enters into contracts that can include various combinations of software licenses, appliances, maintenance and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each distinct performance obligation, on a relative basis using its standalone selling price. The Company determines the standalone selling price for software-related elements, including professional services and software maintenance and support contracts, based on the price charged for the deliverable when sold separately. With the adoption of Topic 606 beginning January 1, 2018, the Company had a change in the accounting for revenue of its on-premise term software license arrangements. Under Topic 605, the term software license and technical support elements of the combined bundle were recognized over time. In contrast, Topic 606 requires the Company to identify the performance obligations in the contract – that is, those promised goods and services (or bundles of promised goods or services) that are distinct – and allocate the transaction price of the contract to those performance obligations on the basis of standalone selling prices. The transaction price allocated to each performance obligation is then recognized either at a point in time or over time using an appropriate measure of progress. Under Topic 606, the Company has concluded that its on-premise term software licenses and technical support for its on-premise term software licenses are distinct from each other. As a result, the software license is now recognized upon transfer of control, which is at fulfillment, resulting in earlier revenue recognition. The revenue allocable to technical support continues to be recognized ratably over the non-cancellable committed term of the agreement. Other items relating to charges collected from customers include shipping and handling charges and sales taxes charges. Shipping and handling charges collected from customers as part of the Company's sales transactions are included in revenues and the associated costs are included in cost of revenues. Sales taxes charged to and collected from customers as part of the Company’s sales transactions are excluded from revenues and recorded as a liability to the applicable governmental taxing authority. Nature of Products and Services Perpetual software licenses The Company’s perpetual software license arrangements grant customers the right to use the software indefinitely as it exists at the time of purchase. The Company recognizes revenue for distinct software licenses once the license period has begun and the software has been made available to the customer. Payments for perpetual software license contracts are generally received upon fulfillment of the software product. Term software licenses The Company's term software licenses differ from perpetual software licenses in that the customer's right to use the licensed product has a termination date. Prior to the adoption of Topic 606, these licenses were recognized ratably over the contractual term, beginning on the commencement date of each contract, which is typically the date the Company’s product has been fulfilled. Under the provisions of Topic 606, term software licenses are now recognized upon transfer of control, which is typically at fulfillment, resulting in up-front revenue recognition. The Company categorizes revenue from term software licenses as subscription, maintenance and support revenue in service revenues. Payments are generally received quarterly or annually in equal or near equal installments over the term of the agreement. Cloud-hosted software as a service Cloud-hosted software as a service (SaaS) arrangements grant customers the right to access and use the licensed products at the outset of an arrangement via third-party cloud providers. Updates are generally made available throughout the entire term of the arrangement, which is generally one to three years. The Company provides an online library and technical support resources in these cloud-hosted SaaS arrangements, which in conjunction with the SaaS license constitute a single, combined performance obligation, and revenue is recognized over the term of the license. Payments are generally received annually in advance of the service period. Hardware The Company sells appliances that are typically drop shipped from third-party suppliers selected by the Company. The transaction price allocated to the appliance is generally recognized as revenue at fulfillment when the customer obtains control of the product. Payments for appliances are generally received upon delivery of the hardware product. Maintenance and support Maintenance and support arrangements grant customers the right to software updates and technical support over the term of the maintenance and support contract. Revenue from maintenance and support is generally recognized ratably over the contract term beginning on the commencement date of each contract, which is upon fulfillment of the software obligation. Payments are generally received annually in advance of the service period. Professional services and training Professional services and training generally consist of software implementation, on-boarding services and best practices consulting. Revenue from professional services contracts is typically recognized as performed, generally using hours expended to measure progress. Services are generally invoiced monthly for work performed. Revenues by product category and geography The Company combines its products and services into three product categories and three geographic regions, based on customer location, as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Software licenses and appliances $ 2,867 $ 929 $ 3,318 $ 2,149 Service Subscription, maintenance and support 4,122 5,110 8,160 9,948 Professional services and other 637 615 979 1,268 Total service 4,759 5,725 9,139 11,216 Total revenues $ 7,626 $ 6,654 $ 12,457 $ 13,365 Three Months Ended Six Months Ended 2018 2017 2018 2017 North America $ 5,017 $ 4,606 $ 7,827 $ 9,423 Europe 1,465 1,863 3,075 3,608 Asia 1,144 185 1,555 334 Total $ 7,626 $ 6,654 $ 12,457 $ 13,365 Significant Judgments More judgments and estimates are required under Topic 606 than were required under Topic 605. Due to the complexity of certain contracts, the actual revenue recognition treatment required under Topic 606 for the Company’s arrangements may be dependent on contract-specific terms and may vary in some instances. Our contracts with customers typically contain promises to transfer multiple products and services to a customer. Judgment is required to determine whether each product and/or service is considered to be a distinct performance obligation that should be accounted for separately under the contract. We allocate the transaction price to the distinct performance obligations based on relative standalone selling price (“SSP”). We estimate SSP by maximizing use of observable prices such as the prices charged to customers on a standalone basis, established prices lists, contractually stated prices, profit margins and other entity-specific factors, or by using information such as market conditions and other observable inputs. However, the selling prices of the Company's software licenses and cloud-hosted SaaS arrangements are highly variable. Thus, we estimate SSP for software licenses and cloud-hosted SaaS arrangements using the residual approach, determined based on total transaction price less the SSP of other goods and services promised in the contract. Determining whether licenses and services are distinct performance obligations that should be accounted for separately, or not distinct and thus accounted for together, requires significant judgment. In some arrangements, such as most of the Company’s license arrangements, the Company has concluded that the licenses and associated services are distinct from each other. In others, like the Company’s cloud-hosted SaaS arrangements, the license and certain services are not distinct from each other and therefore the Company has concluded that these promised goods and services are a single, combined performance obligation. If a group of agreements are so closely related that they are, in effect, part of a single arrangement, such agreements are deemed to be one arrangement for revenue recognition purposes. The Company exercises significant judgment to evaluate the relevant facts and circumstances in determining whether the separate agreements should be accounted for separately or as, in substance, a single arrangement. The Company’s judgments about whether a group of contracts comprise a single arrangement can affect the allocation of consideration to the distinct performance obligations, which could have an effect on results of operations for the periods involved. The Company is required to estimate the total consideration expected to be received from contracts with customers. In limited circumstances, the consideration expected to be received is variable based on the specific terms of the contract or based on the Company’s expectations of the term of the contract. Generally, the Company has not experienced significant returns from or refunds to customers. These estimates require significant judgment and the change in these estimates could have an effect on its results of operations during the periods involved. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in receivables or contract liabilities (deferred revenue) on the Company’s condensed consolidated balance sheet. The Company records deferred revenue when revenue is recognized subsequent to invoicing. The Company’s balances for contract assets totaled $550,000 and $339,000 as of January 1, 2018 and June 30, 2018 , respectively. The Company’s balances for contract liabilities, which are included in deferred revenue, totaled $8.6 million and $9.5 million as of January 1, 2018 and June 30, 2018 , respectively. During the three and six months ended June 30, 2018 , the Company recognized $3.7 million and $7.0 million of revenue that was included in the deferred revenue balance, as adjusted for Topic 606, at the beginning of the period. All other activity in deferred revenue is due to the timing of invoices in relation to the timing of revenue as described above. Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. The Company has elected to exclude the future billable professional services from the remaining performance obligations. Contracted but unsatisfied performance obligations were approximately $18.6 million as of June 30, 2018 , of which the Company expects to recognize $10.9 million of revenue over the next 12 months and the remainder thereafter. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s products and services, and not to facilitate financing arrangements. Deferred Sales Commissions Sales commissions represent the direct incremental costs related to the acquisition of customer contracts. The Company recognizes commissions as sales and marketing expense at the time the associated product revenue is recognized, requiring establishment of a deferred cost in the event a commission is paid prior to recognition of revenue. The deferred commission amounts are recoverable through the related future revenue streams under non-cancellable customer contracts and commission clawback provisions in the Company's sales compensation plans. Deferred commission costs included in prepaid expenses and other assets were $326,000 and $308,000 at June 30, 2018 and December 31, 2017 , respectively. Deferred commission costs in other assets, non-current were $46,000 and $47,000 at June 30, 2018 and December 31, 2017 , respectively. The Company recognized commissions expense of $505,000 and $387,000 during the three months ended June 30, 2018 and 2017 , respectively, and $731,000 and $788,000 during the six months ended June 30, 2018 and 2017 , respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets The Company’s amortizable intangible assets consisted of the following (in thousands): June 30, 2018 Customer Relationships Developed Technology Trademarks / Trade-Names Total Original cost $ 4,883 $ 8,145 $ 2,182 $ 15,210 Accumulated amortization (2,465 ) (6,669 ) (874 ) (10,008 ) Net identifiable intangible assets $ 2,418 $ 1,476 $ 1,308 $ 5,202 December 31, 2017 Customer Relationships Developed Technology Trademarks / Trade-Names Total Original cost $ 4,928 $ 8,225 $ 2,184 $ 15,337 Accumulated amortization (2,194 ) (6,043 ) (805 ) (9,042 ) Net identifiable intangible assets $ 2,734 $ 2,182 $ 1,379 $ 6,295 Changes to the carrying amount of net amortizable intangible assets for the six months ended June 30, 2018 consisted of the following (in thousands): Six Months Ended Balance, beginning of period $ 6,295 Amortization expense (1,047 ) Currency translation (46 ) Balance, end of period $ 5,202 Amortization expense of intangible assets consisted of the following (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Amortization expense associated with the developed technology included in cost of revenues $ 293 $ 298 $ 591 $ 591 Amortization expense associated with other acquired intangible assets included in operating expenses 227 226 456 449 Total amortization expense $ 520 $ 524 $ 1,047 $ 1,040 Goodwill On October 3, 2014, the Company completed the acquisition of Kulu Valley, Ltd., subsequently renamed Qumu Ltd., and recognized $8.8 million of goodwill and $6.7 million of intangible assets. The goodwill balance of $7.2 million at June 30, 2018 reflects the impact of foreign currency exchange rate fluctuations since the acquisition date. As of June 30, 2018 , the Company’s market capitalization, without a control premium, was greater than its book value and, as a result, the Company concluded there was no goodwill impairment. Declines in the Company’s market capitalization or a downturn in its future financial performance and/or future outlook could require the Company to record goodwill and other impairment charges. While a goodwill impairment charge is a non-cash charge, it would have a negative impact on the Company's results of operations. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases and Other Financing Obligations Balances for assets acquired under capital lease obligations and included in property and equipment were as follows (in thousands): June 30, December 31, Computer and network equipment $ 511 $ 511 Furniture 287 287 Assets acquired under capital lease obligations 798 798 Accumulated depreciation (705 ) (613 ) Assets acquired under capital lease obligations, net $ 93 $ 185 The current and long-term portions of capital leases and other financing obligations were as follows (in thousands): June 30, December 31, Capital leases and other financing obligations, current $ 226 $ 1,047 Capital leases and other financing obligations, non-current — 3 Total capital leases and other financing obligations $ 226 $ 1,050 The Company leases certain of its facilities and some of its equipment under non-cancelable operating lease arrangements. The rental payments under these leases are charged to expense on a straight-line basis over the non-cancelable term of the lease. Future minimum payments under capital lease obligations, other financing obligations, and non-cancelable operating leases, excluding property taxes and other operating expenses, as of June 30, 2018 are as follows (in thousands): Capital leases and other financing obligations Operating leases Total Remainder of 2018 $ 230 $ 310 $ 540 2019 3 500 503 2020 — 266 266 2021 — 268 268 2022 — 273 273 Thereafter — 23 23 Total minimum lease payments 233 $ 1,640 $ 1,873 Less amount representing interest (7 ) Present value of net minimum lease payments $ 226 Lease Contract Termination The Company determined that it had excess capacity at its Minneapolis, Minnesota headquarters and effective May 1, 2018 ceased using a portion of its leased space, subsequently making it available for sublessee occupancy. During the three months ended June 30, 2018, the Company entered into a sublease agreement having a term beginning May 1, 2018 and extending through January 2023. Accordingly, the Company recorded a liability at fair value of $224,000 for the future contractual lease payments, net of expected sublease receipts. Included in other income (expenses) for three and six months ended June 30, 2018 is the loss related to the exit activity of $177,000 , which is net of adjustments for the derecognition of leasehold improvement and deferred rent balances related to the exit activity. A reconciliation of the beginning and ending contract termination obligation balances, including the obligation for exit activities related to a portion of the Company's London, England leased office facilities in December 2017, is as follows (in thousands): Three Months Ended Six Months Ended London, England Minneapolis, Minnesota Total London, England Minneapolis, Minnesota Total Contract termination obligation, beginning of period $ 149 $ — $ 149 $ 194 $ — $ 194 Lease termination costs incurred — 224 224 — 224 224 Accretion expense 4 4 8 9 4 13 Payments on obligations (50 ) (14 ) (64 ) (100 ) (14 ) (114 ) Contract termination obligation, end of period $ 103 $ 214 $ 317 $ 103 $ 214 $ 317 The contract termination obligation is included in other accrued liabilities in the Company's consolidated balance sheets. Term Loans The Company's term loans are reported in the consolidated balance sheets as follows (in thousands): June 30, December 31, Term loan, at face value $ 10,000 $ 8,000 Unamortized original issue discount (1,729 ) (121 ) Unamortized debt issuance costs (315 ) (274 ) Term loan $ 7,956 $ 7,605 Credit Agreement – ESW Holdings, Inc. On January 12, 2018, the Company and its wholly-owned subsidiary, Qumu, Inc., entered into a term loan credit agreement (the “ESW credit agreement”) with ESW Holdings, Inc. as lender and administrative agent pursuant to which the Company borrowed $10.0 million in the form of a term loan. Proceeds from the ESW credit agreement were used to pay the remaining outstanding balance of $8.0 million on the Hale term note plus a 10% prepayment penalty of $800,000 on January 12, 2018. The term loan is scheduled to mature on January 10, 2020. Interest accrues and compounds monthly at a variable rate per annum equal to the prime rate plus 4.0% . The Company may prepay the term loan at any time with the payment of a pre-payment fee of 10% of the amount prepaid. However, no pre-payment fee will be incurred for any pre-payment made from the proceeds of the Company’s sale of its investment in BriefCam, Ltd. The term loan had an estimated fair value of $8.0 million as of June 30, 2018 . The fair value of the term loan is estimated using a discounted cash flow analysis based on the Company’s current incremental borrowing rate. As the contractual terms of the loan provide all the necessary inputs for this calculation, the term loan is classified as Level 2 within the fair value hierarchy. The estimated fair value is not necessarily indicative of the amount that would be realized in a current market exchange. Credit Agreement – Hale Capital Partners, LP The term loan balance as of December 31, 2017 consisted of a term loan credit agreement (the “Hale credit agreement”) with HCP-FVD, LLC as lender and Hale Capital Partners, LP as administrative agent, under which the Company borrowed $8.0 million as a term loan on October 21, 2016. The term loan was scheduled to mature on October 21, 2019 and required payment of interest monthly at the prime rate plus 6.0% . Covenant Compliance The ESW credit agreement contains affirmative and negative covenants and requirements relating to the Company and its operations. The negative covenants of the ESW credit agreement require the Company to meet financial covenants beginning with the quarter ended September 30, 2018 relating to minimum core bookings, maximum deferred revenue non-current, minimum subscription, and maintenance and support revenue, and minimum subscription and maintenance and support dollar renewal rates. The Company’s monthly, quarterly and annual results of operations are subject to significant fluctuations due to a variety of factors, many of which are outside of the Company’s control. These factors include the number and mix of products and solutions sold in the period, timing of customer purchase commitments, including the impact of long sales cycles and seasonal buying patterns, and variability in the size of customer purchases and the impact of large customer orders on a particular period. The foregoing factors are difficult to forecast, and these, as well as other factors, could adversely affect the Company’s monthly, quarterly and annual results of operations. Failure to achieve its monthly, quarterly or annual forecasts may result in the Company being out of compliance with covenants or projecting noncompliance in the future. Management actively monitors its opportunity pipeline, forecast, and projected covenant compliance on an ongoing basis. Contingencies The Company is exposed to a number of asserted and unasserted claims encountered in the normal course of business. Legal costs related to loss contingencies are expensed as incurred. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company’s financial position or results of operations. The Company’s standard arrangements include provisions indemnifying customers against liabilities if the Company's products infringe a third-party’s intellectual property rights. The Company has not incurred any costs in its continuing operations as a result of such indemnifications and has not accrued any liabilities related to such contingent obligations in the accompanying condensed consolidated financial statements. |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements A hierarchy for inputs used in measuring fair value is in place that distinguishes market data between observable independent market inputs and unobservable market assumptions by the reporting entity. The hierarchy is intended to maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that the most observable inputs be used when available. Three levels within the hierarchy may be used to measure fair value: • Level 1: Inputs are unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2: Inputs include data points that are observable such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) such as interest rates and yield curves that are observable for the asset or liability, either directly or indirectly. • Level 3: Inputs are generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect an entity’s own estimates of assumptions that market participants would use in pricing the asset or liability. In conjunction with the debt financings completed in October 2016 and January 2018, the Company issued two warrants for the purchase of up to 1,239,286 of the Company's common stock, which remained unexercised and outstanding at June 30, 2018 . The warrant issued in conjunction with the October 21, 2016 debt financing (Hale warrant) for the purchase of up to 314,286 shares of the Company's common stock expires on October 21, 2026, has an exercise price of $2.80 per share and is transferable. The warrant issued in conjunction with the January 12, 2018 debt financing (ESW warrant) for the purchase of up to 925,000 shares of the Company's common stock expires on January 12, 2028, has an exercise price of $1.96 per share and is transferable. The warrants contain a cash settlement feature upon the occurrence of a certain events, essentially the sale of the Company as defined in the warrant agreements. As a result of this feature, the warrants are subject to derivative accounting as prescribed under ASC 815. Accordingly, the fair value of the warrants on the dates of issuance were recorded in the Company’s consolidated balance sheets as a liability. The warrant liability was recorded in the Company's consolidated balance sheets at its fair value on the respective dates of issuance and is revalued on each subsequent balance sheet date until such instrument is exercised or expires, with any changes in the fair value between reporting periods recorded as other income or expense. The Company recorded a non-cash gain (loss) of $(278,000) and $11,000 during the three months ended June 30, 2018 and 2017 , respectively, and a non-cash gain (loss) of $109,000 and $(67,000) during the six months ended June 30, 2018 and 2017 , respectively, from the change in fair value of the warrant liability. The increase in fair value for the three months ended June 30, 2018 and decrease in fair value for the six months ended June 30, 2018 was primarily driven by a corresponding increase and decrease, respectively, in the Company’s stock price. The decrease in fair value during the three months ended June 30, 2017 was primarily driven by decreased volatility in the Company’s stock price and the increase in fair value during the six months ended June 30, 2017 was primarily driven by an increase in the Company’s stock price impacting the Hale warrant, which was the only warrant outstanding as of such date. The Company estimates the fair value of this liability using option pricing models that are based on the individual characteristics of the warrants on the valuation date, which includes assumptions for expected volatility, expected life and risk-free interest rate, as well as the present value of the minimum cash payment component of the instrument. Changes in the assumptions used could have a material impact on the resulting fair value. The primary inputs affecting the value of the warrant liability are the Company’s stock price and volatility in the Company's stock price, as well as assumptions about the probability and timing of certain events, such as a change in control or future equity offerings. Increases in the fair value of the underlying stock or increases in the volatility of the stock price generally result in a corresponding increase in the fair value of the warrant liability; conversely, decreases in the fair value of the underlying stock or decreases in the volatility of the stock price generally result in a corresponding decrease in the fair value of the warrant liability. The Company’s liabilities measured at fair value on a recurring basis and the fair value hierarchy utilized to determine such fair values is as follows at June 30, 2018 and December 31, 2017 (in thousands): Fair Value Measurements Using Total Fair Quoted Prices in Significant Other Significant Liabilities: Derivative warrant liability - ESW warrant $ 2,202 $ — $ — $ 2,202 Derivative warrant liability - Hale warrant 684 — — 684 Derivative warrant liabilities $ 2,886 $ — $ — $ 2,886 Fair Value Measurements Using Total Fair Quoted Prices in Significant Other Significant Liabilities: Derivative warrant liability - Hale warrant $ 819 $ — $ — $ 819 The Company classified the warrant liability as Level 3 due to the lack of relevant observable market data over fair value inputs such as the probability-weighting of the various scenarios in the arrangement. The following table represents a rollforward of the fair value of the Level 3 instrument (significant unobservable inputs): Balance at December 31, 2017 $ 819 Addition of warrant liability 2,176 Change in fair value (109 ) Balance at June 30, 2018 $ 2,886 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company granted the following stock-based awards: Three Months Ended Six Months Ended 2018 2017 2018 2017 Stock options 540,500 10,000 540,500 135,000 Restricted stock awards and restricted stock units 180,000 150,000 180,000 212,500 Performance stock units — — — 166,149 The stock options, restricted stock awards and performance stock units granted during the three and six months ended June 30, 2018 and 2017 were granted under the Company's Second Amended and Restated 2007 Stock Incentive Plan (the "2007 Plan"), a shareholder approved plan. Of the 166,149 performance stock units granted in connection with the Company's 2017 short-term incentive plan ("2017 Incentive Plan"), 116,168 vested during the three months ended March 31, 2018. In settlement of the performance stock units, during the three months ended March 31, 2018, the Company issued 25,726 shares, which is equal to the number of performance stock units vested multiplied by the percentage achievement of the performance goals for the 2017 Incentive Plan of approximately 22.1% . During the three months ended June 30, 2018 , the Company’s shareholders approved an amendment to the 2007 Plan to increase the number of shares authorized under the plan by 500,000 to a total of 3,230,320 shares. The Company recognized the following expense related to its share-based payment arrangements (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Stock-based compensation cost, before income tax benefit: Stock options $ 73 $ 118 $ 120 $ 244 Restricted stock awards and restricted stock units 155 210 318 419 Performance stock units — 42 — 120 Total stock-based compensation $ 228 $ 370 $ 438 $ 783 Three Months Ended Six Months Ended 2018 2017 2018 2017 Stock-based compensation cost included in: Cost of revenues $ 8 $ 18 $ 18 $ 32 Operating expenses 220 352 420 751 Total stock-based compensation $ 228 $ 370 $ 438 $ 783 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As of June 30, 2018 and December 31, 2017 , the Company’s liability for gross unrecognized tax benefits totaled $1.2 million and $1.1 million , respectively (excluding interest and penalties). The Company had no accrued interest and penalties relating to unrecognized tax benefits at June 30, 2018 and had $1,400 of accrued interest and penalties relating to unrecognized tax benefits on a gross basis at December 31, 2017 . The change in the liability for gross unrecognized tax benefits reflects an increase in reserves established for federal and state research and development credits. Additionally, the Company continues to analyze the different aspects of the Tax Cuts and Jobs Act of 2017 which could potentially affect the provisional estimates that were recorded at December 31, 2017 . During the six months ended June 30, 2018 , there were no changes made to the provisional amounts recognized in 2017. The Company does not currently expect significant changes in the amount of unrecognized tax benefits during the next twelve months. |
Computation of Net Loss Per Sha
Computation of Net Loss Per Share of Common Stock | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Net Loss Per Share of Common Stock | Computation of Net Loss Per Share of Common Stock The following table identifies the components of net loss per basic and diluted share (in thousands, except for per share data): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net loss per share – basic Net loss $ (1,531 ) $ (2,611 ) $ (6,061 ) $ (6,173 ) Weighted average shares outstanding – basic 9,484 9,356 9,427 9,301 Net loss per share – basic $ (0.16 ) $ (0.28 ) $ (0.64 ) $ (0.66 ) Net loss per share – diluted Loss attributable to common shareholders: Net loss $ (1,531 ) $ (2,611 ) $ (6,061 ) $ (6,173 ) Numerator effect of dilutive securities Warrant — (11 ) — — Loss from attributable to common shareholders $ (1,531 ) $ (2,622 ) $ (6,061 ) $ (6,173 ) Weighted average shares outstanding – diluted: Weighted average shares outstanding – basic 9,484 9,356 9,427 9,301 Denominator effect of dilutive securities Warrant — 1 — — Diluted potential common shares — 1 — — Weighted average shares outstanding – diluted 9,484 9,357 9,427 9,301 Net loss per share – diluted $ (0.16 ) $ (0.28 ) $ (0.64 ) $ (0.66 ) Stock options, warrants and restricted stock units to acquire common shares excluded from the computation of diluted weighted-average common shares as their effect is anti-dilutive were as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Stock options 1,283 1,562 1,225 1,545 Warrants 1,239 — 1,183 314 Restricted stock units 120 135 135 128 Total anti-dilutive 2,642 1,697 2,543 1,987 |
Investment in Software Company
Investment in Software Company | 6 Months Ended |
Jun. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Investment in Software Company | Investment in Software Company As of June 30, 2018 and December 31, 2017 , the Company held an investment totaling $3.1 million in convertible preferred stock of BriefCam, Ltd. (“BriefCam”), a privately-held Israeli company that develops video synopsis technology to augment security and surveillance systems to facilitate review of surveillance video. The investment does not have a readily determinable fair value and is recorded at cost, less impairment, if any, plus or minus changes resulting from observable price changes in market-based transactions for an identical or similar investment of the same issuer and is included in other non-current assets. The Company's ownership interest is less than 20% . The security is reviewed quarterly for observable price changes in market-based transactions for an identical or similar investment of the same issuer, as well as for changes in circumstances or the occurrence of events that suggest the Company’s investment may not be fully recoverable. If the fair value of the investment is determined to be less than its carrying amount, the Company writes down the investment to its fair value and recognizes the write-down in net income. The Company monitors BriefCam's results of operations, business plan and capital raising activities and is not aware of any events or circumstances that would indicate a decline in the fair value below the carrying value of its investment. During the six months ended June 30, 2018 , there were no observable price changes in market-based transactions for an identical or similar investment of the same issuer or impairments related to the Company’s non-marketable investment in the equity security. See Note 10–"Subsequent Events” for information relating to the sale of the Company’s investment in BriefCam subsequent to June 30, 2018. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events Sale of BriefCam On May 7, 2018, BriefCam, Canon Inc. (“Canon”), and the shareholders of BriefCam, including the Company, entered into a stock purchase agreement by which Canon would acquire all of the outstanding shares of BriefCam. On July 3, 2018, BriefCam announced that Canon had completed its acquisition of BriefCam. On July 6, 2018, the Company received approximately $9,678,000 from the closing proceeds for its shares of BriefCam Ltd. Partial Prepayment of ESW Term Loan On July 19, 2018, the Company paid $6,463,000 on its outstanding term loan from ESW Holdings, Inc. under its term loan credit agreement dated January 12, 2018. The payment was comprised of principal of $6.0 million and accrued interest of $463,000 for the period January 12, 2018 to the payment date of July 19, 2018. The Company used a portion of the $9,638,000 in net proceeds from the sale of its investment in BriefCam to fund the prepayment. Under the term loan credit agreement, any voluntary prepayment by the Company from the net proceeds received from the disposition of the Company’s investment in BriefCam will not trigger a prepayment fee. |
Revenue (Policies)
Revenue (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Significant Judgments More judgments and estimates are required under Topic 606 than were required under Topic 605. Due to the complexity of certain contracts, the actual revenue recognition treatment required under Topic 606 for the Company’s arrangements may be dependent on contract-specific terms and may vary in some instances. Our contracts with customers typically contain promises to transfer multiple products and services to a customer. Judgment is required to determine whether each product and/or service is considered to be a distinct performance obligation that should be accounted for separately under the contract. We allocate the transaction price to the distinct performance obligations based on relative standalone selling price (“SSP”). We estimate SSP by maximizing use of observable prices such as the prices charged to customers on a standalone basis, established prices lists, contractually stated prices, profit margins and other entity-specific factors, or by using information such as market conditions and other observable inputs. However, the selling prices of the Company's software licenses and cloud-hosted SaaS arrangements are highly variable. Thus, we estimate SSP for software licenses and cloud-hosted SaaS arrangements using the residual approach, determined based on total transaction price less the SSP of other goods and services promised in the contract. Determining whether licenses and services are distinct performance obligations that should be accounted for separately, or not distinct and thus accounted for together, requires significant judgment. In some arrangements, such as most of the Company’s license arrangements, the Company has concluded that the licenses and associated services are distinct from each other. In others, like the Company’s cloud-hosted SaaS arrangements, the license and certain services are not distinct from each other and therefore the Company has concluded that these promised goods and services are a single, combined performance obligation. If a group of agreements are so closely related that they are, in effect, part of a single arrangement, such agreements are deemed to be one arrangement for revenue recognition purposes. The Company exercises significant judgment to evaluate the relevant facts and circumstances in determining whether the separate agreements should be accounted for separately or as, in substance, a single arrangement. The Company’s judgments about whether a group of contracts comprise a single arrangement can affect the allocation of consideration to the distinct performance obligations, which could have an effect on results of operations for the periods involved. The Company is required to estimate the total consideration expected to be received from contracts with customers. In limited circumstances, the consideration expected to be received is variable based on the specific terms of the contract or based on the Company’s expectations of the term of the contract. Generally, the Company has not experienced significant returns from or refunds to customers. These estimates require significant judgment and the change in these estimates could have an effect on its results of operations during the periods involved. Revenue The Company generates revenue through the sale of enterprise video content management software, hardware, maintenance and support, and professional and other services. Software sales may take the form of a perpetual software license, a cloud-hosted software as a service (SaaS) or a term software license. Software licenses and appliances revenue includes sales of perpetual software licenses and hardware. Service revenue includes SaaS, term software licenses, maintenance and support, and professional and other services. An individual sale can range from single year agreements for thousands of dollars to multi-year agreements for over a million dollars. The Company follows a five-step model to assess each contract of a sale or service to a customer: identify the legally binding contract, identify the performance obligations, determine the transaction price, allocate the transaction price, and determine whether revenue will be recognized at a point in time or over time basis. Revenue is recognized upon transfer of control of promised products or services (i.e., performance obligations) to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for promised goods or services. The Company’s performance obligations are satisfied either over time (for cloud-hosted software as a service, maintenance and support, and other services) or at a point in time (for software licenses and hardware). The Company enters into contracts that can include various combinations of software licenses, appliances, maintenance and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each distinct performance obligation, on a relative basis using its standalone selling price. The Company determines the standalone selling price for software-related elements, including professional services and software maintenance and support contracts, based on the price charged for the deliverable when sold separately. With the adoption of Topic 606 beginning January 1, 2018, the Company had a change in the accounting for revenue of its on-premise term software license arrangements. Under Topic 605, the term software license and technical support elements of the combined bundle were recognized over time. In contrast, Topic 606 requires the Company to identify the performance obligations in the contract – that is, those promised goods and services (or bundles of promised goods or services) that are distinct – and allocate the transaction price of the contract to those performance obligations on the basis of standalone selling prices. The transaction price allocated to each performance obligation is then recognized either at a point in time or over time using an appropriate measure of progress. Under Topic 606, the Company has concluded that its on-premise term software licenses and technical support for its on-premise term software licenses are distinct from each other. As a result, the software license is now recognized upon transfer of control, which is at fulfillment, resulting in earlier revenue recognition. The revenue allocable to technical support continues to be recognized ratably over the non-cancellable committed term of the agreement. Other items relating to charges collected from customers include shipping and handling charges and sales taxes charges. Shipping and handling charges collected from customers as part of the Company's sales transactions are included in revenues and the associated costs are included in cost of revenues. Sales taxes charged to and collected from customers as part of the Company’s sales transactions are excluded from revenues and recorded as a liability to the applicable governmental taxing authority. Nature of Products and Services Perpetual software licenses The Company’s perpetual software license arrangements grant customers the right to use the software indefinitely as it exists at the time of purchase. The Company recognizes revenue for distinct software licenses once the license period has begun and the software has been made available to the customer. Payments for perpetual software license contracts are generally received upon fulfillment of the software product. Term software licenses The Company's term software licenses differ from perpetual software licenses in that the customer's right to use the licensed product has a termination date. Prior to the adoption of Topic 606, these licenses were recognized ratably over the contractual term, beginning on the commencement date of each contract, which is typically the date the Company’s product has been fulfilled. Under the provisions of Topic 606, term software licenses are now recognized upon transfer of control, which is typically at fulfillment, resulting in up-front revenue recognition. The Company categorizes revenue from term software licenses as subscription, maintenance and support revenue in service revenues. Payments are generally received quarterly or annually in equal or near equal installments over the term of the agreement. Cloud-hosted software as a service Cloud-hosted software as a service (SaaS) arrangements grant customers the right to access and use the licensed products at the outset of an arrangement via third-party cloud providers. Updates are generally made available throughout the entire term of the arrangement, which is generally one to three years. The Company provides an online library and technical support resources in these cloud-hosted SaaS arrangements, which in conjunction with the SaaS license constitute a single, combined performance obligation, and revenue is recognized over the term of the license. Payments are generally received annually in advance of the service period. Hardware The Company sells appliances that are typically drop shipped from third-party suppliers selected by the Company. The transaction price allocated to the appliance is generally recognized as revenue at fulfillment when the customer obtains control of the product. Payments for appliances are generally received upon delivery of the hardware product. Maintenance and support Maintenance and support arrangements grant customers the right to software updates and technical support over the term of the maintenance and support contract. Revenue from maintenance and support is generally recognized ratably over the contract term beginning on the commencement date of each contract, which is upon fulfillment of the software obligation. Payments are generally received annually in advance of the service period. Professional services and training Professional services and training generally consist of software implementation, on-boarding services and best practices consulting. Revenue from professional services contracts is typically recognized as performed, generally using hours expended to measure progress. Services are generally invoiced monthly for work performed. |
Nature of Business and Basis 18
Nature of Business and Basis of Presentation Accounting Standards Recently Adopted (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The cumulative effect of the changes made to our January 1, 2018 condensed consolidated balance sheet from the modified retrospective adoption of Topic 606 was as follows (in thousands): December 31, Adjustments January 1, Assets: Contract assets $ — $ 550 $ 550 Prepaid expenses and other current assets 1,830 (99 ) 1,731 Other assets, non-current 4,398 (10 ) 4,388 Liabilities: Deferred revenue 8,923 (493 ) 8,430 Deferred revenue, non-current 141 — 141 Stockholders’ equity: Accumulated deficit (56,197 ) 939 (55,258 ) Accumulated other comprehensive loss (2,740 ) (5 ) (2,745 ) |
Recently Issued Accounting Standards | The following table summarizes the effects of adopting Topic 606 on the Company’s condensed consolidated statement of operations and comprehensive income (loss) for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 Revenues $ 7,626 $ 240 $ 7,866 $ 12,457 $ 424 $ 12,881 Cost of revenues 2,406 10 2,416 4,518 18 4,536 Sales and marketing 2,412 14 2,426 4,592 38 4,630 Net loss (1,531 ) 216 (1,315 ) (6,061 ) 368 (5,693 ) Net change in foreign currency translation adjustments (769 ) 14 (755 ) (146 ) 10 (136 ) Total comprehensive loss (2,300 ) 230 (2,070 ) (6,207 ) 378 (5,829 ) The following table summarizes the effects of adopting Topic 606 on the Company’s condensed consolidated balance sheet as of June 30, 2018 : June 30, 2018 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 Assets: Contract assets 339 (339 ) — Prepaid expenses and other current assets 1,934 50 1,984 Other assets, non-current 4,200 3 4,203 Liabilities: Deferred revenue 8,514 275 8,789 Deferred revenue, non-current 947 (5 ) 942 Stockholders’ equity: Accumulated deficit (61,319 ) (571 ) (61,890 ) Accumulated other comprehensive loss (2,891 ) 15 (2,876 ) The Company’s net cash used in operating activities for the six months ended June 30, 2018 did not change due to the adoption of Topic 606. The following table summarizes the effects of adopting Topic 606 on the financial statement line items of the Company’s condensed consolidated statement of cash flows for the six months ended June 30, 2018 : Six Months Ended June 30, 2018 As reported under Topic 606 Adjustments Balances without adoption of Topic 606 Operating activities: Net loss $ (6,061 ) $ 368 $ (5,693 ) Adjustments to reconcile net loss to net cash used in operating activities: Changes in operating assets and liabilities: Contract assets 211 (211 ) — Prepaid expenses and other assets 197 56 253 Deferred revenue 938 (213 ) 725 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The Company combines its products and services into three product categories and three geographic regions, based on customer location, as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Software licenses and appliances $ 2,867 $ 929 $ 3,318 $ 2,149 Service Subscription, maintenance and support 4,122 5,110 8,160 9,948 Professional services and other 637 615 979 1,268 Total service 4,759 5,725 9,139 11,216 Total revenues $ 7,626 $ 6,654 $ 12,457 $ 13,365 Three Months Ended Six Months Ended 2018 2017 2018 2017 North America $ 5,017 $ 4,606 $ 7,827 $ 9,423 Europe 1,465 1,863 3,075 3,608 Asia 1,144 185 1,555 334 Total $ 7,626 $ 6,654 $ 12,457 $ 13,365 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of acquired intangible assets (excluding goodwill) | The Company’s amortizable intangible assets consisted of the following (in thousands): June 30, 2018 Customer Relationships Developed Technology Trademarks / Trade-Names Total Original cost $ 4,883 $ 8,145 $ 2,182 $ 15,210 Accumulated amortization (2,465 ) (6,669 ) (874 ) (10,008 ) Net identifiable intangible assets $ 2,418 $ 1,476 $ 1,308 $ 5,202 December 31, 2017 Customer Relationships Developed Technology Trademarks / Trade-Names Total Original cost $ 4,928 $ 8,225 $ 2,184 $ 15,337 Accumulated amortization (2,194 ) (6,043 ) (805 ) (9,042 ) Net identifiable intangible assets $ 2,734 $ 2,182 $ 1,379 $ 6,295 Changes to the carrying amount of net amortizable intangible assets for the six months ended June 30, 2018 consisted of the following (in thousands): Six Months Ended Balance, beginning of period $ 6,295 Amortization expense (1,047 ) Currency translation (46 ) Balance, end of period $ 5,202 |
Amortization of acquired intangible assets | Amortization expense of intangible assets consisted of the following (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Amortization expense associated with the developed technology included in cost of revenues $ 293 $ 298 $ 591 $ 591 Amortization expense associated with other acquired intangible assets included in operating expenses 227 226 456 449 Total amortization expense $ 520 $ 524 $ 1,047 $ 1,040 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Capital Leased Assets | Balances for assets acquired under capital lease obligations and included in property and equipment were as follows (in thousands): June 30, December 31, Computer and network equipment $ 511 $ 511 Furniture 287 287 Assets acquired under capital lease obligations 798 798 Accumulated depreciation (705 ) (613 ) Assets acquired under capital lease obligations, net $ 93 $ 185 |
Schedule of Debt | The current and long-term portions of capital leases and other financing obligations were as follows (in thousands): June 30, December 31, Capital leases and other financing obligations, current $ 226 $ 1,047 Capital leases and other financing obligations, non-current — 3 Total capital leases and other financing obligations $ 226 $ 1,050 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum payments under capital lease obligations, other financing obligations, and non-cancelable operating leases, excluding property taxes and other operating expenses, as of June 30, 2018 are as follows (in thousands): Capital leases and other financing obligations Operating leases Total Remainder of 2018 $ 230 $ 310 $ 540 2019 3 500 503 2020 — 266 266 2021 — 268 268 2022 — 273 273 Thereafter — 23 23 Total minimum lease payments 233 $ 1,640 $ 1,873 Less amount representing interest (7 ) Present value of net minimum lease payments $ 226 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | A reconciliation of the beginning and ending contract termination obligation balances, including the obligation for exit activities related to a portion of the Company's London, England leased office facilities in December 2017, is as follows (in thousands): Three Months Ended Six Months Ended London, England Minneapolis, Minnesota Total London, England Minneapolis, Minnesota Total Contract termination obligation, beginning of period $ 149 $ — $ 149 $ 194 $ — $ 194 Lease termination costs incurred — 224 224 — 224 224 Accretion expense 4 4 8 9 4 13 Payments on obligations (50 ) (14 ) (64 ) (100 ) (14 ) (114 ) Contract termination obligation, end of period $ 103 $ 214 $ 317 $ 103 $ 214 $ 317 |
Schedule of Long-term Debt Instruments | The Company's term loans are reported in the consolidated balance sheets as follows (in thousands): June 30, December 31, Term loan, at face value $ 10,000 $ 8,000 Unamortized original issue discount (1,729 ) (121 ) Unamortized debt issuance costs (315 ) (274 ) Term loan $ 7,956 $ 7,605 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The Company’s liabilities measured at fair value on a recurring basis and the fair value hierarchy utilized to determine such fair values is as follows at June 30, 2018 and December 31, 2017 (in thousands): Fair Value Measurements Using Total Fair Quoted Prices in Significant Other Significant Liabilities: Derivative warrant liability - ESW warrant $ 2,202 $ — $ — $ 2,202 Derivative warrant liability - Hale warrant 684 — — 684 Derivative warrant liabilities $ 2,886 $ — $ — $ 2,886 Fair Value Measurements Using Total Fair Quoted Prices in Significant Other Significant Liabilities: Derivative warrant liability - Hale warrant $ 819 $ — $ — $ 819 |
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | The following table represents a rollforward of the fair value of the Level 3 instrument (significant unobservable inputs): Balance at December 31, 2017 $ 819 Addition of warrant liability 2,176 Change in fair value (109 ) Balance at June 30, 2018 $ 2,886 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule Of Share-Based Payment Arrangements | The Company granted the following stock-based awards: Three Months Ended Six Months Ended 2018 2017 2018 2017 Stock options 540,500 10,000 540,500 135,000 Restricted stock awards and restricted stock units 180,000 150,000 180,000 212,500 Performance stock units — — — 166,149 |
Schedule of Allocation of Share-based Compensation Costs by Plan | The Company recognized the following expense related to its share-based payment arrangements (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Stock-based compensation cost, before income tax benefit: Stock options $ 73 $ 118 $ 120 $ 244 Restricted stock awards and restricted stock units 155 210 318 419 Performance stock units — 42 — 120 Total stock-based compensation $ 228 $ 370 $ 438 $ 783 Three Months Ended Six Months Ended 2018 2017 2018 2017 Stock-based compensation cost included in: Cost of revenues $ 8 $ 18 $ 18 $ 32 Operating expenses 220 352 420 751 Total stock-based compensation $ 228 $ 370 $ 438 $ 783 |
Computation of Net Loss Per S24
Computation of Net Loss Per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Components Of Net Income (Loss) Per Basic And Diluted Share | The following table identifies the components of net loss per basic and diluted share (in thousands, except for per share data): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net loss per share – basic Net loss $ (1,531 ) $ (2,611 ) $ (6,061 ) $ (6,173 ) Weighted average shares outstanding – basic 9,484 9,356 9,427 9,301 Net loss per share – basic $ (0.16 ) $ (0.28 ) $ (0.64 ) $ (0.66 ) Net loss per share – diluted Loss attributable to common shareholders: Net loss $ (1,531 ) $ (2,611 ) $ (6,061 ) $ (6,173 ) Numerator effect of dilutive securities Warrant — (11 ) — — Loss from attributable to common shareholders $ (1,531 ) $ (2,622 ) $ (6,061 ) $ (6,173 ) Weighted average shares outstanding – diluted: Weighted average shares outstanding – basic 9,484 9,356 9,427 9,301 Denominator effect of dilutive securities Warrant — 1 — — Diluted potential common shares — 1 — — Weighted average shares outstanding – diluted 9,484 9,357 9,427 9,301 Net loss per share – diluted $ (0.16 ) $ (0.28 ) $ (0.64 ) $ (0.66 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Stock options, warrants and restricted stock units to acquire common shares excluded from the computation of diluted weighted-average common shares as their effect is anti-dilutive were as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Stock options 1,283 1,562 1,225 1,545 Warrants 1,239 — 1,183 314 Restricted stock units 120 135 135 128 Total anti-dilutive 2,642 1,697 2,543 1,987 |
Nature of Business and Basis 25
Nature of Business and Basis of Presentation (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Accumulated deficit | $ (61,319,000) | $ (61,319,000) | $ (55,258,000) | $ (56,197,000) | |||
Contract assets | 339,000 | 339,000 | 550,000 | 0 | |||
Prepaid expenses and other current assets | 1,934,000 | 1,934,000 | 1,731,000 | 1,830,000 | |||
Other assets, non-current | 4,200,000 | 4,200,000 | 4,388,000 | 4,398,000 | |||
Deferred revenue | 8,514,000 | 8,514,000 | 8,430,000 | 8,923,000 | |||
Deferred revenue, non-current | 947,000 | 947,000 | 141,000 | 141,000 | |||
Accumulated other comprehensive loss | (2,891,000) | (2,891,000) | (2,745,000) | (2,740,000) | |||
Revenues | 7,626,000 | $ 6,654,000 | 12,457,000 | $ 13,365,000 | |||
Cost of revenues | 2,406,000 | 2,286,000 | 4,518,000 | 4,870,000 | |||
Sales and marketing | 2,412,000 | 2,524,000 | 4,592,000 | 4,975,000 | |||
Net loss | (1,531,000) | (2,611,000) | (6,061,000) | (6,173,000) | |||
Net change in foreign currency translation adjustments | (769,000) | 559,000 | (146,000) | 696,000 | |||
Total comprehensive loss | (2,300,000) | $ (2,052,000) | (6,207,000) | (5,477,000) | |||
Contract assets | 211,000 | 0 | |||||
Prepaid expenses and other assets | 197,000 | 710,000 | |||||
Deferred revenue | $ 938,000 | $ (368,000) | |||||
Number of reportable segments | segment | 1 | ||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Net loss | $ 368,000 | ||||||
Contract assets | (211,000) | ||||||
Prepaid expenses and other assets | 56,000 | ||||||
Deferred revenue | (213,000) | ||||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Accumulated deficit | (61,890,000) | (61,890,000) | |||||
Contract assets | 0 | 0 | |||||
Prepaid expenses and other current assets | 1,984,000 | 1,984,000 | |||||
Other assets, non-current | 4,203,000 | 4,203,000 | |||||
Deferred revenue | 8,789,000 | 8,789,000 | |||||
Deferred revenue, non-current | 942,000 | 942,000 | |||||
Accumulated other comprehensive loss | (2,876,000) | (2,876,000) | |||||
Revenues | 7,866,000 | 12,881,000 | |||||
Cost of revenues | 2,416,000 | 4,536,000 | |||||
Sales and marketing | 2,426,000 | 4,630,000 | |||||
Net loss | (1,315,000) | (5,693,000) | |||||
Net change in foreign currency translation adjustments | (755,000) | (136,000) | |||||
Total comprehensive loss | (2,070,000) | (5,829,000) | |||||
Contract assets | 0 | ||||||
Prepaid expenses and other assets | 253,000 | ||||||
Deferred revenue | 725,000 | ||||||
BriefCam Ltd | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cost method investments | 3,100,000 | 3,100,000 | $ 3,100,000 | ||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Accumulated deficit | (571,000) | (571,000) | 939,000 | ||||
Contract assets | (300,000) | (300,000) | 550,000 | ||||
Prepaid expenses and other current assets | 100,000 | 100,000 | (99,000) | ||||
Other assets, non-current | 0 | 0 | (10,000) | ||||
Deferred revenue | 275,000 | 275,000 | (493,000) | ||||
Deferred revenue, non-current | (5,000) | (5,000) | 0 | ||||
Accumulated other comprehensive loss | 15,000 | 15,000 | $ (5,000) | ||||
Revenues | 240,000 | 424,000 | |||||
Cost of revenues | 10,000 | 18,000 | |||||
Sales and marketing | 14,000 | 38,000 | |||||
Net loss | 216,000 | 368,000 | |||||
Net change in foreign currency translation adjustments | 14,000 | 10,000 | |||||
Total comprehensive loss | $ 230,000 | $ 378,000 | |||||
Scenario, Forecast | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Revenues | $ 1,100,000 |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 7,626 | $ 6,654 | $ 12,457 | $ 13,365 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 5,017 | 4,606 | 7,827 | 9,423 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,465 | 1,863 | 3,075 | 3,608 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,144 | 185 | 1,555 | 334 |
Software licenses and appliances | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,867 | 929 | 3,318 | 2,149 |
Subscription, maintenance and support | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 4,122 | 5,110 | 8,160 | 9,948 |
Professional services and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 637 | 615 | 979 | 1,268 |
Total service | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 4,759 | $ 5,725 | $ 9,139 | $ 11,216 |
Revenue Narrative (Details)
Revenue Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Contract assets, current | $ 339 | $ 339 | $ 550 | $ 0 |
Contract with customer, liability | 9,500 | 9,500 | $ 8,600 | |
Contract with customer, revenue recognized | 3,700 | 7,000 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligations | 10,900 | 10,900 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligations | $ 18,600 | $ 18,600 |
Revenue Contract Acquisition Co
Revenue Contract Acquisition Costs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Capitalized Contract Cost [Line Items] | |||||
Capitalized contract cost, amortization | $ 505,000 | $ 387,000 | $ 731,000 | $ 788,000 | |
Deferred Commissions | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized contract costs, current | 326,000 | 326,000 | $ 308,000 | ||
Capitalized contract costs, noncurrent | $ 46,000 | $ 46,000 | $ 47,000 |
Intangible Assets and Goodwil29
Intangible Assets and Goodwill (Components Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Original cost | $ 15,210 | $ 15,337 |
Accumulated amortization | (10,008) | (9,042) |
Net identifiable intangible assets | 5,202 | 6,295 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original cost | 4,883 | 4,928 |
Accumulated amortization | (2,465) | (2,194) |
Net identifiable intangible assets | 2,418 | 2,734 |
Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original cost | 8,145 | 8,225 |
Accumulated amortization | (6,669) | (6,043) |
Net identifiable intangible assets | 1,476 | 2,182 |
Trademarks / Trade-Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original cost | 2,182 | 2,184 |
Accumulated amortization | (874) | (805) |
Net identifiable intangible assets | $ 1,308 | $ 1,379 |
Intangible Assets and Goodwil30
Intangible Assets and Goodwill (Intangible Assets Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning of period | $ 6,295 | |||
Amortization expense | $ (520) | $ (524) | (1,047) | $ (1,040) |
Currency translation | 46 | |||
Balance, end of period | $ 5,202 | $ 5,202 |
Intangible Assets and Goodwil31
Intangible Assets and Goodwill (Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Amortization Expense [Abstract] | ||||
Amortization expense associated with the developed technology included in cost of revenues | $ 293 | $ 298 | $ 591 | $ 591 |
Amortization expense associated with other acquired intangible assets included in operating expenses | 227 | 226 | 456 | 449 |
Amortization expense | $ 520 | $ 524 | $ 1,047 | $ 1,040 |
Intangible Assets and Goodwil32
Intangible Assets and Goodwill (Narrative) (Details) - USD ($) $ in Thousands | Oct. 03, 2014 | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets [Line Items] | |||
Goodwill | $ 7,224 | $ 7,390 | |
Kulu Valley Ltd | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill acquired during period | $ 8,800 | ||
Intangible assets acquired during the period | $ 6,700 | ||
Goodwill | $ 7,200 |
Commitments and Contingencies33
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | $ 798 | $ 798 |
Accumulated depreciation | (705) | (613) |
Assets acquired under capital lease obligations, net | 93 | 185 |
Computer and network equipment | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | 511 | 511 |
Furniture | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | $ 287 | $ 287 |
Commitments and Contingencies34
Commitments and Contingencies (Schedule of Capital Leases and Other Financing Obligations) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Capital leases and other financing obligations, current | $ 226 | $ 1,047 |
Capital leases and other financing obligations, non-current | 0 | 3 |
Total capital leases and other financing obligations | $ 226 | $ 1,050 |
Commitments and Contingencies35
Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Capital leases and other financing obligations | |
Remainder of 2018 | $ 230 |
2,019 | 3 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total minimum lease payments | 233 |
Less amount representing interest | (7) |
Present value of net minimum lease payments | 226 |
Operating leases | |
Remainder of 2018 | 310 |
2,019 | 500 |
2,020 | 266 |
2,021 | 268 |
2,022 | 273 |
Thereafter | 23 |
Total minimum lease payments | 1,640 |
Remainder of 2018 | 540 |
2,019 | 503 |
2,020 | 266 |
2,021 | 268 |
2,022 | 273 |
Thereafter | 23 |
Total minimum lease payments | $ 1,873 |
Commitments and Contingencies L
Commitments and Contingencies Lease Contract Termination (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Contract termination obligation, beginning of period | $ 149 | $ 194 |
Lease termination costs incurred | 224 | 224 |
Accretion expense | 8 | 13 |
Payments on obligations | (64) | (114) |
Contract termination obligation, end of period | 317 | 317 |
London, United Kingdom [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Contract termination obligation, beginning of period | 149 | 194 |
Lease termination costs incurred | 0 | 0 |
Accretion expense | 4 | 9 |
Payments on obligations | (50) | (100) |
Contract termination obligation, end of period | 103 | 103 |
Minneapolis Headquarters [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Contract termination obligation, beginning of period | 0 | 0 |
Lease termination costs incurred | 224 | 224 |
Accretion expense | 4 | 4 |
Payments on obligations | (14) | (14) |
Contract termination obligation, end of period | 214 | $ 214 |
Business Exit Costs | $ 177 |
Commitments and Contingencies S
Commitments and Contingencies Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Term loan, at face value | $ 10,000 | $ 8,000 |
Unamortized original issue discount | (1,729) | (121) |
Unamortized debt issuance costs | (315) | (274) |
Term loan | $ 7,956 | $ 7,605 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) - USD ($) | Jan. 12, 2018 | Jan. 12, 2018 | Mar. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Oct. 21, 2016 |
Debt Instrument [Line Items] | ||||||
Term loan, at face value | $ 10,000,000 | $ 8,000,000 | ||||
Accrued prepayment fee | 800,000 | |||||
ESW Holdings, Inc. | ||||||
Debt Instrument [Line Items] | ||||||
Term loan, at face value | $ 10,000,000 | $ 10,000,000 | ||||
Debt instrument, basis spread on variable rate | 4.00% | |||||
Debt instrument, prepayment fee, percentage | 10.00% | |||||
Long-term debt, fair value | $ 8,000,000 | |||||
Hale Capital, LLP | ||||||
Debt Instrument [Line Items] | ||||||
Term loan, at face value | $ 8,000,000 | $ 8,000,000 | $ 8,000,000 | |||
Debt instrument, covenant threshold, percentage | 10.00% | |||||
Debt instrument, basis spread on variable rate | 6.00% |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Jan. 12, 2018 | Oct. 21, 2016 | |
Fair Value Disclosures [Abstract] | |||||||
Warrant shares (in shares) | 1,239,286 | 925,000 | 314,286 | ||||
Warrant, exercise price (in dollars per share) | $ 1.96 | $ 2.80 | |||||
Change in fair value of warrant liability | $ (278,000) | $ 11,000 | $ 109,000 | $ (67,000) |
Fair Value Measurements Measure
Fair Value Measurements Measurement Levels (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | $ 2,886 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | 2,886 | |
ESW Holdings, Inc. | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | 2,202 | |
ESW Holdings, Inc. | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | 0 | |
ESW Holdings, Inc. | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | 0 | |
ESW Holdings, Inc. | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | 2,202 | |
Hale Capital, LLP | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | 684 | $ 819 |
Hale Capital, LLP | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | 0 | 0 |
Hale Capital, LLP | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | 0 | 0 |
Hale Capital, LLP | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | $ 684 | $ 819 |
Fair Value Measurements Rollfor
Fair Value Measurements Rollforward (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Addition of warrant liability | $ 2,176,000 | |||
Change in fair value | $ 278,000 | $ (11,000) | (109,000) | $ 67,000 |
Balance at June 30, 2018 | 2,886,000 | 2,886,000 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Change in fair value | (109,000) | |||
Balance at June 30, 2018 | $ 2,886,000 | $ 2,886,000 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Stock-based Awards Granted) (Details) - 2007 Stock Incentive Plan - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted (in shares) | 540,500 | 10,000 | 540,500 | 135,000 | |
Restricted stock awards and restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity instruments other than options, granted (in shares) | 180,000 | 150,000 | 180,000 | 212,500 | |
Performance stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity instruments other than options, granted (in shares) | 0 | 0 | 166,149 | 0 |
Stock-Based Compensation Narrat
Stock-Based Compensation Narrative (Details) - 2007 Stock Incentive Plan - shares | May 10, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares authorized (in shares) | 500,000 | |||||
Shares authorized (in shares) | 3,230,320 | |||||
Performance stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments other than options, granted (in shares) | 0 | 0 | 166,149 | 0 | ||
Equity instruments other than options, vested (in shares) | 116,168 | |||||
Shares issued (in shares) | 25,726 | |||||
Award vesting rights, percentage | 22.10% |
Stock-Based Compensation (Sch44
Stock-Based Compensation (Schedule Of Allocation of Share-Based Compensation Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 228 | $ 370 | $ 438 | $ 783 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 73 | 118 | 120 | 244 |
Restricted stock awards and restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 155 | 210 | 318 | 419 |
Performance stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 0 | 42 | 0 | 120 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 8 | 18 | 18 | 32 |
Operating expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 220 | $ 352 | $ 420 | $ 751 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 1,200,000 | $ 1,100,000 |
Accrued interest and penalties relating to unrecognized tax benefits | $ 0 | $ 1,400 |
Computation of Net Loss Per S46
Computation of Net Loss Per Share of Common Stock (Components Of Net Income (Loss) Per Basic And Diluted Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net loss per share – basic | ||||
Net loss | $ (1,531) | $ (2,611) | $ (6,061) | $ (6,173) |
Weighted average number of shares outstanding, basic (in shares) | 9,484 | 9,356 | 9,427 | 9,301 |
Earnings per share, basic (in dollars per share) | $ (0.16) | $ (0.28) | $ (0.64) | $ (0.66) |
Net loss per share – diluted | ||||
Warrant fair value adjustment net of tax | $ 0 | $ (11) | $ 0 | $ 0 |
Net income (loss) available to common stockholders, diluted | $ (1,531) | $ (2,622) | $ (6,061) | $ (6,173) |
Incremental common shares attributable to dilutive effect of call options and warrants (in shares) | 0 | 1 | 0 | 0 |
Weighted average number of shares outstanding, diluted (in shares) | 9,484 | 9,357 | 9,427 | 9,301 |
Earnings per share, diluted (in dollars per share) | $ (0.16) | $ (0.28) | $ (0.64) | $ (0.66) |
Warrants | ||||
Net loss per share – diluted | ||||
Incremental common shares attributable to dilutive effect of call options and warrants (in shares) | 0 | 1 | 0 | 0 |
Computation of Net Loss Per S47
Computation of Net Loss Per Share of Common Stock (Schedule of Antidilutive Securities Excluded from the Computation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,642 | 1,697 | 2,543 | 1,987 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,283 | 1,562 | 1,225 | 1,545 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,239 | 0 | 1,183 | 314 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 120 | 135 | 135 | 128 |
Investment in Software Company
Investment in Software Company (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
BriefCam Ltd | ||
Cost method investments | $ 3.1 | $ 3.1 |
BriefCam Ltd | Maximum | ||
Minority ownership interest (less than 20%) | 20.00% | 20.00% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) | Jul. 19, 2018 | Jul. 06, 2018 |
BriefCam, Canon Inc | ||
Subsequent Event [Line Items] | ||
Total purchase price | $ 9,678,000 | |
Sale of investment, consideration transferred, net of estimated tax | $ 9,638,000 | |
ESW Holdings, Inc. | ||
Subsequent Event [Line Items] | ||
Debt instrument, payment | $ 6,463,000 | |
Debt instrument, principal payment | 6,000,000 | |
Debt instrument, interest payment | $ 463,000 |
Uncategorized Items - qumu-2018
Label | Element | Value |
Gain (Loss) on Termination of Lease | us-gaap_GainLossOnTerminationOfLease | $ 0 |