Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | BROADVISION INC | |
Entity Central Index Key | 920,448 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Trading Symbol | bvsn | |
Entity Common Stock, Shares Outstanding | 4,916,248 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 7,415 | $ 9,600 |
Short-term investments | 19,870 | 19,531 |
Accounts receivable, net of reserves of $184 and $135 as of March 31, 2016 and December 31, 2015, respectively | 1,029 | 1,751 |
Prepaids and other | 1,161 | 1,098 |
Total current assets | 29,475 | 31,980 |
Property and equipment, net | 77 | 87 |
Other assets | 145 | 143 |
Total assets | 29,697 | 32,210 |
Current liabilities: | ||
Accounts payable | 494 | 551 |
Accrued expenses | 1,932 | 2,161 |
Unearned revenue | 1,664 | 1,518 |
Deferred maintenance | 1,205 | 1,553 |
Total current liabilities | 5,295 | 5,783 |
Other non-current liabilities | 838 | 918 |
Total liabilities | $ 6,133 | $ 6,701 |
Stockholders' Equity: | ||
Preferred stock, $0.0001 par value; 1,000 shares authorized; no shares issued and outstanding as of March 31, 2016 and December 31, 2015 | ||
Common stock, $0.0001 par value; 11,200 shares authorized; 4,909 and 4,895 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively | $ 0 | $ 0 |
Additional paid-in capital | 1,269,839 | 1,269,582 |
Accumulated other comprehensive loss | (890) | (739) |
Accumulated deficit | (1,245,385) | (1,243,334) |
Total stockholders' equity | 23,564 | 25,509 |
Total liabilities and stockholders' equity | $ 29,697 | $ 32,210 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets | ||
Accounts receivable, allowance for doubtful accounts | $ 184 | $ 135 |
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 11,200,000 | 11,200,000 |
Common stock, shares issued | 4,909,000 | 4,895,000 |
Common stock, shares outstanding | 4,909,000 | 4,895,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Software licenses | $ 1,019 | $ 1,087 |
Services | 990 | 1,409 |
Total revenues | 2,009 | 2,496 |
Cost of revenues: | ||
Cost of software revenues | 38 | 45 |
Cost of services | 772 | 717 |
Total cost of revenues | 810 | 762 |
Gross profit | 1,199 | 1,734 |
Operating expenses: | ||
Research and development | 1,743 | 1,858 |
Sales and marketing | 1,151 | 1,140 |
General and administrative | 985 | 888 |
Total operating expenses | 3,879 | 3,886 |
Operating loss | (2,680) | (2,152) |
Interest income, net | 17 | 11 |
Other income (expense), net | 639 | (1,399) |
Loss before provision for income taxes | (2,024) | (3,540) |
Provision for income taxes | (27) | (15) |
Net loss | (2,051) | (3,555) |
Other comprehensive (loss) gain, net of tax: | ||
Foreign currency translation adjustment | 151 | 175 |
Comprehensive loss | $ (1,900) | $ (3,380) |
Net loss per share, basic and diluted: | ||
Basic and diluted net loss per share | $ (0.42) | $ (0.74) |
Shares used in computing: | ||
Weighted average shares, basic and diluted | 4,896 | 4,833 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (2,051) | $ (3,555) |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Depreciation and amortization | 12 | 27 |
Stock-based compensation | 202 | 290 |
Provision of receivable reserves | 47 | (43) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 675 | 1,306 |
Prepaids and other | (63) | (181) |
Other non-current assets | (2) | (6) |
Accounts payable and accrued expenses | (286) | (204) |
Unearned revenue and deferred maintenance | (202) | 905 |
Other noncurrent liabilities | (80) | 416 |
Net cash used for operating activities | (1,748) | (1,045) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2) | (3) |
Purchase of short-term investments | (7,555) | (5,828) |
Maturities of short-term investments | 7,216 | 6,763 |
Net cash (used for) provided by investing activities | (341) | 932 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net | $ 55 | $ 75 |
Proceeds from exercise of common stock options, net | ||
Net cash provided by financing activities | $ 55 | $ 75 |
Effect of exchange rates on cash and cash equivalents | (151) | 175 |
Net (decrease) increase in cash and cash equivalents | (2,185) | 137 |
Cash and cash equivalents at beginning of period | 9,600 | 24,941 |
Cash and cash equivalents at end of period | $ 7,415 | $ 25,078 |
Organization And Summary Of Sig
Organization And Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Organization And Summary Of Significant Accounting Policies [Abstract] | |
Organization And Summary Of Significant Accounting Policies | Note 1. O rganization and Summary of Significant Accounting Policies Broad V ision, Inc. was incorporated in Delaware in May 1993. We develop, market, and support enterprise portal applications that enable companies to unify their e-business infrastructure and conduct both interactions and transactions with employees, partners, and customers through a personalized self-service model that increases revenues, reduces costs, and improves productivity. Except where specifically noted or the context otherwise requires, the use of terms such as the “Company”, “Broad V ision,” “we” and “our” in these Notes to Condensed Consolidated Financial Statements refers to Broad V ision, Inc. and its subsidiaries. There have been no material changes in our critical accounting policies, estimates and judgments during the three -month period ended March 31 , 201 6 compared to the disclosures in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 201 5 , filed with the Securities and Exchange Commission (the “SEC”) on April 1 4 , 201 6 , as amended, other than those disclosed herein. Basis of Presentation The condensed consolidated financial results and related information as of and for the three months ended March 31, 2016 and March 31, 2015 are unaudited. The Condensed Consolidated Balance Sheet at December 31, 2015 has been derived from the audited consolidated financial statements as of that date but does not necessarily reflect all of the disclosures previously reported in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The unaudited condensed consolidated financial statements should be reviewed in conjunction with the audited consolidated financial statements and related notes contained in our 2015 Annual Report on Form 10-K filed with the SEC on April 14, 2016, as amended. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions in Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of interim financial information have been included. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the remainder of the year ending December 31, 2016 or any future interim period. The condensed consolidated financial statements include our accounts and those of our wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make certain assumptions and estimates that affect reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to receivable reserves, stock-based compensation, investments, impairment assessments and income taxes, as well as contingencies and litigation. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates using different assumptions or conditions. Stock-Based Compensation The following table sets forth the components of the total stock-based compensation expense recognized in our Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 2015 Cost of services $ 25 $ 46 Research and development 58 81 Sales and marketing 78 99 General and administrative 41 64 $ 202 $ 290 Net Loss Per Share Information Basic net loss per share is computed using the weighted-average number of shares of common stock outstanding, excluding the effects of any potentially dilutive securities. Diluted net loss per share is computed using the weighted-average number of shares of common stock outstanding and, when dilutive, common equivalent shares from outstanding stock options using the treasury stock method. The Company incurred net losses for the three months ended March 31, 2016 and 2015, and therefore, basic and diluted net loss per share for those periods are the same, as all potential common equivalent shares would be anti-dilutive. The following table sets forth the basic and diluted net loss per share computational data for the periods presented (in thousands, except per share amounts): Three Months Ended March 31, 2016 2015 Net Loss $ (2,051) $ (3,555) Weighted-average common shares outstanding used to compute basic and diluted net loss per share 4,896 4,833 Basic and diluted net loss per share $ (0.42) $ (0.74) Legal Proceedings We are subject from time to time to various legal actions and other claims arising in the ordinary course of business. We are not a party to any legal proceedings that we believe would have a material adverse effect on our consolidated financial position or consolidated results of operations. Foreign Currency Translations The functional currencies of all foreign subsidiaries are the local currencies of their respective countries. Assets and liabilities of these subsidiaries are translated into U.S. dollars at the balance sheet date. Income and expense items are translated at average exchange rates for the periods presented. Foreign exchange gains and losses resulting from the remeasurement of foreign currency assets and liabilities are included as other income (expense), net in the Condensed Consolidated Statements of Comprehensive Loss. For the three months ended March 31, 2016, and 2015, translation loss was $151,000 and $175,000 , respectively. These amounts are included in the accumulated other comprehensive loss account in the Condensed Consolidated Balance Sheets. Comprehensive Loss Comprehensive loss includes net loss and other comprehensive gains and losses, which primarily consists of foreign currency translation adjustments. Total comprehensive loss is presented in the accompanying Condensed Consolidated Statements of Comprehensive Loss. Total accumulated other comprehensive loss is displayed as a separate component of stockholders’ equity in the accompanying Condensed Consolidated Balance Sheets. The accumulated balances of other comprehensive loss consist of the following, net of taxes (in thousands): Accumulated Other Comprehensive Loss Balance, December 31, 2015 $ (739) Net change during period (151) Balance, March 31, 2016 $ (890) Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), which amended the existing accounting standards for revenue recognition and will supersede most existing revenue recognition guidance under U.S. GAAP. ASU 2014-09 establishes principles to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for us using either of two methods: (i) retrospective application of ASU 2014-09 to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective application of ASU 2014-09 with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016. We are currently evaluating the impact of ASU 2014-09 on our condensed consolidated financial statements and related disclosures. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40) . The new guidance addresses management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect to early adopt this guidance and does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements. |
Selected Condensed Consolidated
Selected Condensed Consolidated Balance Sheet Detail | 3 Months Ended |
Mar. 31, 2016 | |
Selected Condensed Consolidated Balance Sheet Detail [Abstract] | |
Selected Condensed Consolidated Balance Sheet Detail | Note 2. Selected Condensed Consolidated Balance Sheet Detail Accrued expenses consisted of the following (in thousands): March 31, December 31, 2016 2015 (unaudited) Employee benefits $ 658 $ 615 Commissions and bonuses 207 298 Sales and other taxes 153 144 Income tax and tax contingencies 280 278 Deferred rent 94 89 Other 540 737 Total accrued expenses $ 1,932 $ 2,161 Other non-current liabilities consisted of the following (in thousands): March 31, December 31, 2016 2015 (unaudited) Deferred maintenance and unearned revenue $ 231 $ 301 Other 607 617 Total other non-current liabilities $ 838 $ 918 |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | Note 3. Fair Value of Financial Instruments We measure assets and liabilities at fair value based on an exit price as defined by the FASB guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value: • Level 1 - Quoted prices in active markets for identical assets or liabilities; • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.; • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We measure the following financial assets at fair value on a recurring basis. The fair value of these financial assets as of March 31 , 201 6 (in thousands) is as follows: Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable March 31, Assets Inputs Inputs 2016 (Level 1) (Level 2) (Level 3) Cash and cash equivalents: Cash $ 6,928 $ 6,928 $ - $ - Money market funds 487 487 - - Total cash and cash equivalents $ 7,415 $ 7,415 $ - $ - Fixed income securities Certificates of deposits $ 9,084 $ - $ 9,084 $ - Corporate bonds - financial 2,213 - 2,213 - Corporate bonds - industrial 2,598 - 2,598 - U.S. Treasury Securities 5,975 5,975 Total fixed income securities $ 19,870 $ - $ 19,870 $ - Level 2 securities are priced using quoted market prices for similar instruments, nonbinding market prices that are corroborated by observable market data, or discounted cash flow techniques. The fair value of accounts receivable and accounts payable for all periods presented approximates their respective carrying amounts due to the short-term nature of these balances. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 4. Commitments and Contingencies Warranties and Indemnification We provide a warranty to our perpetual license customers that our software will perform substantially in accordance with the documentation we provide with the software, typically for a period of 90 days following receipt of the software. Historically, costs related to these warranties have been immaterial. Accordingly, we have not recorded any warranty liabilities as of March 31, 2016 and December 31, 201 5 , respectively. Our perpetual software license agreements typically provide for indemnification of customers for intellectual property infringement claims caused by use of a current release of our software consistent with the terms of the license agreement. The term of these indemnification clauses is generally perpetual. The potential future payments we could be required to make under these indemnification clauses are generally limited to the amount the customer paid for the software. Historically, costs related to these indemnification provisions have been immaterial. We also maintain liability insurance that limits our exposure. As a result, we believe the potential liability of these indemnification clauses is minimal. Accordingly, we did not record any liabilities for these agreements as of March 31, 2016 and December 31, 2015 respectively. We entered into agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer is, or was, serving in such capacity. The term of the indemnification period is for so long as such officer or director is subject to an indemnifiable event by reason of the fact that such person was serving in such capacity. The maximum potential amount of future payments we could be required to make under these indemnification agreements may be unlimited; however, we have a director and officer insurance policy that limits our exposure and enables us to recover a portion of any future amounts paid. As a result of our insurance policy coverage, we believe the estimated fair value of these indemnification agreements is insignificant. Accordingly, we have no liabilities recorded for these agreements as of either March 31 , 201 6 or December 31, 201 5 . We assess the need for an indemnification reserve on a quarterly basis and there can be no guarantee that an indemnification reserve will not become necessary in the future. Leases We lease our headquarters facility and our other facilities under noncancelable operating lease agreements each of which will expire during or before June, 2018. We recognize the rent expense on a straight line basis over the lease period. Under the terms of our lease agreements, we are required to pay property taxes, insurance and normal maintenance costs. A summary of total future minimum lease payments under noncancelable operating lease agreements as of March 31 , 201 6 (in thousands) is as follows: Operating Years ending December 31, Lease 2016 (nine months) $ 682 2017 780 2018 365 2019 - 2020 and thereafter - Total minimum lease payments $ 1,827 |
Geographic, Segment And Signifi
Geographic, Segment And Significant Customer Information | 3 Months Ended |
Mar. 31, 2016 | |
Geographic, Segment and Significant Customer Information [Abstract] | |
Geographic, Segment and Significant Customer Information | Note 5. Geographic, Segment and Significant Customer Information We operate in one segment: electronic business solutions. The disaggregated revenue information regarding types of revenues is as follows (in thousands): Three Months Ended March 31, 2016 2015 Software licenses $ 1,019 $ 1,087 Services Consulting services 408 551 Maintenance 582 858 Total revenues $ 2,009 $ 2,496 We currently operate in three primary geographical territories : North and South America (Americas); Europe, Middle East and Africa (Europe); and Asia, Pacific and Japan (Asia/Pacific). Disaggregated financial information regarding our geographic revenues is as follows (in thousands): Three Months Ended March 31, Revenues: 2016 2015 Americas $ 969 $ 1,098 Europe 305 622 Asia/Pacific 735 776 Total revenues $ 2,009 $ 2,496 For t he three month period s ended March 31 , 201 6 , one of our customers , Indian Railways Catering and Tourism Corporation Limited, accounted for 10.8% of our revenues. For the three month period ended March 31, 2015, none of our customers accounted for more than 10% of our revenues. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 6. Related Party Transactions On November 14, 2008, BroadVision (Delaware) LLC, a Delaware limited liability company (“BVD”), which was then our wholly owned subsidiary, entered into a Share Purchase Agreement with CHRM LLC, a Delaware limited liability company, that is controlled by Dr. Pehong Chen, our CEO and largest stockholder and in which our CFO, Peter Chu holds a minority interest. We and CHRM LLC then entered into an Amended and Restated Operating Agreement of BroadVision (Delaware) LLC dated as of November 14, 2008 (the “BVD Operating Agreement”). Under these agreements, CHRM LLC received, in exchange for the assignment of certain intellectual property rights, 20 Class B Shares of BVD, representing the right to receive a portion of any distribution of Funds from “Capital Transactions” (as such term is defined in the BVD Operating Agreement), with the exact amount to be determined based on our and CHRM LLC’s capital account balances at the time of such distribution. A “capital transaction” under that agreement is any merger or sale of substantially all of the assets of BVD as a result of which the members of BVD will no longer have an interest in BVD or the assets of BVD will be distributed to its members. Class B Shares do not participate in any profits of BVD except for net profits related to a “capital transaction,” in which case the net profits are allocated to the owners of Class A and Class B Shares in proportion to their respective number of shares. To the extent BVD’s losses do not exceed undistributed net profits accumulated since the date of issuance of Class B Shares, such losses are allocated to Class A Shares. To the extent net losses exceed the undistributed net profits accumulated since the date of issuance of Class B Shares, such excess is allocated to the owners of Class A and Class B Shares in proportion to their respective cumulative capital contributions less any return of capital, until allocation of such losses results in having the capital account balances equal to zero . Then, net losses are allocated to the owners of Class A and Class B Shares in proportion to their respective number of shares. Upon liquidation the net assets of BVD are distributed to the owners of Class A and Class B in proportion to their capital account balances. BVD is the sole owner of BroadVision (Barbados) Limited (“BVB”) and BVB is the sole owner of BroadVision On Demand, a Chinese entity (“BVOD”). We have invested approximately $9.0 million in BVOD (directly and through BVD and BVB) from 2007 through 2015 . In 2014 we began making payments directly to BVOD for certain labor outsourcing services and expect to continue to pay BVOD for such services at the rate of approximately $400,000 per quarter for the foreseeable future . We made aggregate payments to BVOD of $ 6 69 ,000 and $400,000 (based on the RMB to USD exchange rates on the applicable dates of payment) for such services in the three months ended March 31, 2016 and 2015, respectively. These payments in part covered services render outside of the applicable three month periods. We have a controlling voting interest in BVD. Pursuant to the terms of the BVD Operating Agreement, the Class B Shares held by CHRM LLC have no voting rights. The 20 Class B Shares of BVD represent a non-controlling interest. We allocate profits and losses of BVD to the non-controlling interest under the Hypothetical Liquidation Book Value (“HLBV”) method. Under this method the profits and losses are allocated by reference to the profit sharing provisions in the BVD Operating Agreement assuming liquidation of BVD at its book value at the end of each reporting period. Profits and losses allocated to the balance of such interest under the HLBV method have not been material. In April 2015, we executed a renewal contract with SINA Corporation of which Dr. Pehong Chen, our CEO and largest stockholder, was a board member through December 2015, pursuant to which we provided HR information management hosting service, including software subscription, system upgrade and technical support, to SINA Corporation. The total license revenue that we were entitled to receive under that contract through its expiration in March 2016 was $184,000 . We recognized $46,000 of license revenue related to that contract for the first quarter of 2016 . |
Orgnaization And Summary Of Sig
Orgnaization And Summary Of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization And Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation The condensed consolidated financial results and related information as of and for the three months ended March 31, 2016 and March 31, 2015 are unaudited. The Condensed Consolidated Balance Sheet at December 31, 2015 has been derived from the audited consolidated financial statements as of that date but does not necessarily reflect all of the disclosures previously reported in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The unaudited condensed consolidated financial statements should be reviewed in conjunction with the audited consolidated financial statements and related notes contained in our 2015 Annual Report on Form 10-K filed with the SEC on April 14, 2016, as amended. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions in Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of interim financial information have been included. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the remainder of the year ending December 31, 2016 or any future interim period. The condensed consolidated financial statements include our accounts and those of our wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. |
Use Of Estimates | Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make certain assumptions and estimates that affect reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to receivable reserves, stock-based compensation, investments, impairment assessments and income taxes, as well as contingencies and litigation. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates using different assumptions or conditions. |
Stock-Based Compensation | Stock-Based Compensation The following table sets forth the components of the total stock-based compensation expense recognized in our Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 2015 Cost of services $ 25 $ 46 Research and development 58 81 Sales and marketing 78 99 General and administrative 41 64 $ 202 $ 290 |
Net Loss Per Share Information | Net Loss Per Share Information Basic net loss per share is computed using the weighted-average number of shares of common stock outstanding, excluding the effects of any potentially dilutive securities. Diluted net loss per share is computed using the weighted-average number of shares of common stock outstanding and, when dilutive, common equivalent shares from outstanding stock options using the treasury stock method. The Company incurred net losses for the three months ended March 31, 2016 and 2015, and therefore, basic and diluted net loss per share for those periods are the same, as all potential common equivalent shares would be anti-dilutive. The following table sets forth the basic and diluted net loss per share computational data for the periods presented (in thousands, except per share amounts): Three Months Ended March 31, 2016 2015 Net Loss $ (2,051) $ (3,555) Weighted-average common shares outstanding used to compute basic and diluted net loss per share 4,896 4,833 Basic and diluted net loss per share $ (0.42) $ (0.74) |
Legal Proceedings | Legal Proceedings We are subject from time to time to various legal actions and other claims arising in the ordinary course of business. We are not a party to any legal proceedings that we believe would have a material adverse effect on our consolidated financial position or consolidated results of operations. |
Foreign Currency Translations | Foreign Currency Translations The functional currencies of all foreign subsidiaries are the local currencies of their respective countries. Assets and liabilities of these subsidiaries are translated into U.S. dollars at the balance sheet date. Income and expense items are translated at average exchange rates for the periods presented. Foreign exchange gains and losses resulting from the remeasurement of foreign currency assets and liabilities are included as other income (expense), net in the Condensed Consolidated Statements of Comprehensive Loss. For the three months ended March 31, 2016, and 2015, translation loss was $151,000 and $175,000 , respectively. These amounts are included in the accumulated other comprehensive loss account in the Condensed Consolidated Balance Sheets. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss includes net loss and other comprehensive gains and losses, which primarily consists of foreign currency translation adjustments. Total comprehensive loss is presented in the accompanying Condensed Consolidated Statements of Comprehensive Loss. Total accumulated other comprehensive loss is displayed as a separate component of stockholders’ equity in the accompanying Condensed Consolidated Balance Sheets. The accumulated balances of other comprehensive loss consist of the following, net of taxes (in thousands): Accumulated Other Comprehensive Loss Balance, December 31, 2015 $ (739) Net change during period (151) Balance, March 31, 2016 $ (890) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), which amended the existing accounting standards for revenue recognition and will supersede most existing revenue recognition guidance under U.S. GAAP. ASU 2014-09 establishes principles to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for us using either of two methods: (i) retrospective application of ASU 2014-09 to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective application of ASU 2014-09 with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016. We are currently evaluating the impact of ASU 2014-09 on our condensed consolidated financial statements and related disclosures. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40) . The new guidance addresses management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect to early adopt this guidance and does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements. |
Orgnaization And Summary Of S13
Orgnaization And Summary Of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization And Summary Of Significant Accounting Policies [Abstract] | |
Schedule Of Components Of The Total Stock-Based Compensation Expense | Three Months Ended March 31, 2016 2015 Cost of services $ 25 $ 46 Research and development 58 81 Sales and marketing 78 99 General and administrative 41 64 $ 202 $ 290 |
Schedule Of Basic And Diluted Net Loss Per Share | Three Months Ended March 31, 2016 2015 Net Loss $ (2,051) $ (3,555) Weighted-average common shares outstanding used to compute basic and diluted net loss per share 4,896 4,833 Basic and diluted net loss per share $ (0.42) $ (0.74) |
Schedule of Accumulated Balances Of Other Comprehensive Loss | Accumulated Other Comprehensive Loss Balance, December 31, 2015 $ (739) Net change during period (151) Balance, March 31, 2016 $ (890) |
Selected Condensed Consolidat14
Selected Condensed Consolidated Balance Sheet Detail (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Selected Condensed Consolidated Balance Sheet Detail [Abstract] | |
Schedule Of Accrued Expenses | March 31, December 31, 2016 2015 (unaudited) Employee benefits $ 658 $ 615 Commissions and bonuses 207 298 Sales and other taxes 153 144 Income tax and tax contingencies 280 278 Deferred rent 94 89 Other 540 737 Total accrued expenses $ 1,932 $ 2,161 |
Schedule Of Other Noncurrent Liabilities | March 31, December 31, 2016 2015 (unaudited) Deferred maintenance and unearned revenue $ 231 $ 301 Other 607 617 Total other non-current liabilities $ 838 $ 918 |
Fair Values Of Financial Instru
Fair Values Of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable March 31, Assets Inputs Inputs 2016 (Level 1) (Level 2) (Level 3) Cash and cash equivalents: Cash $ 6,928 $ 6,928 $ - $ - Money market funds 487 487 - - Total cash and cash equivalents $ 7,415 $ 7,415 $ - $ - Fixed income securities Certificates of deposits $ 9,084 $ - $ 9,084 $ - Corporate bonds - financial 2,213 - 2,213 - Corporate bonds - industrial 2,598 - 2,598 - U.S. Treasury Securities 5,975 5,975 Total fixed income securities $ 19,870 $ - $ 19,870 $ - |
Commitments And Contingencies (
Commitments And Contingencies (Table) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies [Abstract] | |
Schedule Of Future Minimum Lease Payments | Operating Years ending December 31, Lease 2016 (nine months) $ 682 2017 780 2018 365 2019 - 2020 and thereafter - Total minimum lease payments $ 1,827 |
Geographical, Segment And Signi
Geographical, Segment And Significant Customer Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Geographic, Segment and Significant Customer Information [Abstract] | |
Schedule Of Revenue Regarding Types Of Revenue | Three Months Ended March 31, 2016 2015 Software licenses $ 1,019 $ 1,087 Services Consulting services 408 551 Maintenance 582 858 Total revenues $ 2,009 $ 2,496 |
Schedule of Revenue by Geographic Area | Three Months Ended March 31, Revenues: 2016 2015 Americas $ 969 $ 1,098 Europe 305 622 Asia/Pacific 735 776 Total revenues $ 2,009 $ 2,496 |
Organization And Summary Of S18
Organization And Summary Of Significant Accounting Policies (Narrative)(Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Organization And Summary Of Significant Accounting Policies [Abstract] | ||
Translation gain (loss) | $ (151) | $ (175) |
Organization And Summary Of S19
Organization And Summary Of Significant Accounting Policies (Schedule Of Components Of The Total Stock-Based Compensation Expense)(Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based Compensation Expense | $ 202 | $ 290 |
Cost of Services [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based Compensation Expense | 25 | 46 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based Compensation Expense | 58 | 81 |
Sales and Marketing Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based Compensation Expense | 78 | 99 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based Compensation Expense | $ 41 | $ 64 |
Organization And Summary Of S20
Organization And Summary Of Significant Accounting Policies (Schedule Of Basic And Diluted Net Loss Per Share)(Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Organization And Summary Of Significant Accounting Policies [Abstract] | ||
Net loss | $ (2,051) | $ (3,555) |
Weighted-average common shares outstanding used to compute basic and diluted net loss per share | 4,896 | 4,833 |
Basic and diluted net loss per share | $ (0.42) | $ (0.74) |
Orgnaization And Summary Of S21
Orgnaization And Summary Of Significant Accounting Policies (Schedule of Accumulated Balances Of Other Comprehensive Loss)(Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Organization And Summary Of Significant Accounting Policies [Abstract] | |
Accumulated Other Comprehensive Loss Balance | $ (739) |
Net Change during period | (151) |
Accumulated Other Comprehensive Loss Balance | $ (890) |
Selected Condensed Consolidat22
Selected Condensed Consolidated Balance Sheet Detail (Schedule Of Accrued Expenses)(Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Selected Condensed Consolidated Balance Sheet Detail [Abstract] | ||
Employee benefits | $ 658 | $ 615 |
Commissions and bonuses | 207 | 298 |
Sales and other taxes | 153 | 144 |
Income tax and tax contingencies | 280 | 278 |
Deferred rent | 94 | 89 |
Other | 540 | 737 |
Total accrued expenses | $ 1,932 | $ 2,161 |
Selected Condensed Consolidat23
Selected Condensed Consolidated Balance Sheet Detail (Schedule Of Other Non-Current Liabilities)(Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Selected Condensed Consolidated Balance Sheet Detail [Abstract] | ||
Deferred maintenance and unearned revenue | $ 231 | $ 301 |
Other | 607 | 617 |
Total other non-current liabilities | $ 838 | $ 918 |
Fair Values Of Financial Inst24
Fair Values Of Financial Instruments (Fair Value, Assets Measured On Recurring Basis) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Cash and Cash Equivalents [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | $ 7,415 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | $ 7,415 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | |
Cash [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | $ 6,928 |
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | $ 6,928 |
Cash [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | |
Cash [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | |
Money Market Funds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | $ 487 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | $ 487 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | |
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | |
Fixed Income Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | $ 19,870 |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | $ 19,870 |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | |
Certificates of Deposit [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | $ 9,084 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | $ 9,084 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | |
Corporate Bonds - Financial [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | $ 2,213 |
Corporate Bonds - Financial [Member] | Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | |
Corporate Bonds - Financial [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | $ 2,213 |
Corporate Bonds - Financial [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | |
Corporate Bonds - Industrial [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | $ 2,598 |
Corporate Bonds - Industrial [Member] | Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | |
Corporate Bonds - Industrial [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | $ 2,598 |
Corporate Bonds - Industrial [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | |
US Treasury Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | $ 5,975 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities | $ 5,975 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed income securities |
Commitments And Contingencies25
Commitments And Contingencies (Narrative) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Loss Contingencies [Line Items] | ||
warranty liability | $ 0 | $ 0 |
Perpetual Software Indemnification Agreement [Member] | ||
Loss Contingencies [Line Items] | ||
indemnification liability | 0 | 0 |
Officers And Directors Indemnification Agreement [Member] | ||
Loss Contingencies [Line Items] | ||
indemnification liability | $ 0 | $ 0 |
Commitments And Contingencies26
Commitments And Contingencies (Schedule Of Future Minimum Lease Payments)(Details) $ in Thousands | Mar. 31, 2016USD ($) |
Commitments And Contingencies [Abstract] | |
2016 (nine months) | $ 682 |
2,017 | 780 |
2,018 | 365 |
2,019 | 0 |
2020 and thereafter | 0 |
Total minimum lease payments | $ 1,827 |
Geographic, Segment And Signi27
Geographic, Segment And Significant Customer Information (Schedule Of Revenue Regarding Types Of Revenues)(Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Geographic, Segment and Significant Customer Information [Abstract] | ||
Software licenses | $ 1,019 | $ 1,087 |
Consulting services | 408 | 551 |
Maintenance | 582 | 858 |
Total revenues | $ 2,009 | $ 2,496 |
Geographic, Segment And Signi28
Geographic, Segment And Significant Customer Information (Schedule of Revenue by Geographic Area)(Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)item | Mar. 31, 2015USD ($) | |
Geographical Revenue [Line Items] | ||
Revenues | $ 2,009 | $ 2,496 |
Number of primary geographical territories | item | 3 | |
Customer Concentration Risk [Member] | ||
Geographical Revenue [Line Items] | ||
Disclosure revenue from major customers | 10.8% | |
Americas [Member] | ||
Geographical Revenue [Line Items] | ||
Revenues | $ 969 | 1,098 |
Europe [Member] | ||
Geographical Revenue [Line Items] | ||
Revenues | 305 | 622 |
Asia Pacific [Member] | ||
Geographical Revenue [Line Items] | ||
Revenues | $ 735 | $ 776 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Nov. 14, 2008 | Mar. 31, 2016 | Mar. 31, 2015 |
Related Party Transaction [Line Items] | |||
Percentage owned | 0.00% | ||
Capital account balance | $ 0 | ||
Current equity investment | 9,000,000 | ||
Future Estimated Quarterly Labor Outsourcing Fees | 400,000 | ||
aggregate payments | 669,000 | $ 400,000 | |
Total license revenue that we were entitled to receive | 184,000 | ||
License revenue | $ 46,000 | ||
Common Class B [Member] | |||
Related Party Transaction [Line Items] | |||
Number of shares issued | 20 |