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Guarantor and Non-Guarantor Financial Statements (Tables) | 3 Months Ended
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Jun. 30, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
Condensed Balance Sheet | Condensed Consolidated Balance Sheet as of June 30, 2017 (Unaudited) (in thousands, except par value and share amounts)
|  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidated Total
ASSETS |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |
Cash |  | $ | 254 |  |  | $ | 5,962 |  |  | $ | 86 |  |  | $ | 6,302 |
Restricted cash |  | 156 |  |  | 175 |  |  | — |  |  | 331 |
Accounts receivable, net of allowance of $671 |  | — |  |  | 19,121 |  |  | 1,015 |  |  | 20,136 |
Deposits |  | — |  |  | 121 |  |  | — |  |  | 121 |
Prepaid expenses and other current assets |  | 333 |  |  | 245 |  |  | 4 |  |  | 582 |
Total current assets |  | 743 |  |  | 25,624 |  |  | 1,105 |  |  | 27,472 |
Property and equipment, net |  | 58 |  |  | 2,378 |  |  | 17 |  |  | 2,453 |
Deferred tax assets |  | 352 |  |  | — |  |  | — |  |  | 352 |
Intangible assets, net |  | — |  |  | 2,270 |  |  | 1,705 |  |  | 3,975 |
Goodwill |  | — |  |  | 70,377 |  |  | 6,244 |  |  | 76,621 |
TOTAL ASSETS |  | $ | 1,153 |  |  | $ | 100,649 |  |  | $ | 9,071 |  |  | $ | 110,873 |
INTERCOMPANY |  |  |  |  |  |  |  |
Intercompany payable/receivable, net |  | 124,468 |  |  | (108,411 | ) |  | (16,057 | ) |  | — |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |
Accounts payable |  | $ | 1,259 |  |  | $ | 18,770 |  |  | $ | 234 |  |  | $ | 20,263 |
Accrued license fees and revenue share |  | — |  |  | 9,761 |  |  | 191 |  |  | 9,952 |
Accrued compensation |  | 34 |  |  | 1,233 |  |  | — |  |  | 1,267 |
Short-term debt, net of debt issuance costs and discounts of $307 |  | 1,943 |  |  | — |  |  | — |  |  | 1,943 |
Other current liabilities |  | 1,248 |  |  | 525 |  |  | — |  |  | 1,773 |
Total current liabilities |  | 4,484 |  |  | 30,289 |  |  | 425 |  |  | 35,198 |
Convertible notes, net of debt issuance costs and discounts of $5,975 |  | 10,025 |  |  | — |  |  | — |  |  | 10,025 |
Convertible note embedded derivative liability |  | 4,526 |  |  | — |  |  | — |  |  | 4,526 |
Warrant liability |  | 1,540 |  |  | — |  |  | — |  |  | 1,540 |
Other non-current liabilities |  | 770 |  |  | 79 |  |  | — |  |  | 849 |
Total liabilities |  | 21,345 |  |  | 30,368 |  |  | 425 |  |  | 52,138 |
Stockholders' equity |  |  |  |  |  |  |  |
Preferred stock |  |  |  |  |  |  |  |
Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized, 100,000 issued and outstanding (liquidation preference of $1,000) |  | 100 |  |  | — |  |  | — |  |  | 100 |
Common stock |  |  |  |  |  |  |  |
$0.0001 par value: 200,000,000 shares authorized; 67,342,084 issued and 66,607,628 outstanding at June 30, 2017. |  | (28 | ) |  | — |  |  | 36 |  |  | 8 |
Additional paid-in capital |  | 300,453 |  |  | — |  |  | — |  |  | 300,453 |
Treasury stock (754,599 shares at June 30, 2017) |  | (71 | ) |  | — |  |  | — |  |  | (71 | )
Accumulated other comprehensive loss |  | — |  |  | (1,709 | ) |  | 1,380 |  |  | (329 | )
Accumulated deficit |  | (196,099 | ) |  | (37,347 | ) |  | (7,980 | ) |  | (241,426 | )
Total stockholders' equity |  | 104,355 |  |  | (39,056 | ) |  | (6,564 | ) |  | 58,735 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |  | $ | 125,700 |  |  | $ | (8,688 | ) |  | $ | (6,139 | ) |  | $ | 110,873 |
Condensed Consolidated Balance Sheet as of March 31, 2017 (Unaudited) (in thousands, except par value and share amounts)
|  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidated Total
ASSETS |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |
Cash |  | $ | 258 |  |  | $ | 5,333 |  |  | $ | 558 |  |  | $ | 6,149 |
Restricted cash |  | 156 |  |  | 175 |  |  | — |  |  | 331 |
Accounts receivable, net of allowance of $597 |  | — |  |  | 15,740 |  |  | 814 |  |  | 16,554 |
Deposits |  | — |  |  | 121 |  |  | — |  |  | 121 |
Prepaid expenses and other current assets |  | 282 |  |  | 226 |  |  | 2 |  |  | 510 |
Total current assets |  | 696 |  |  | 21,595 |  |  | 1,374 |  |  | 23,665 |
Property and equipment, net |  | 64 |  |  | 2,296 |  |  | 17 |  |  | 2,377 |
Deferred tax assets |  | 352 |  |  | — |  |  | — |  |  | 352 |
Intangible assets, net |  | — |  |  | 2,647 |  |  | 1,918 |  |  | 4,565 |
Goodwill |  | — |  |  | 70,377 |  |  | 6,244 |  |  | 76,621 |
TOTAL ASSETS |  | $ | 1,112 |  |  | $ | 96,915 |  |  | $ | 9,553 |  |  | $ | 107,580 |
INTERCOMPANY |  |  |  |  |  |  |  |
Intercompany payable/receivable, net |  | 123,800 |  |  | (107,348 | ) |  | (16,452 | ) |  | — |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |
Accounts payable |  | $ | 1,023 |  |  | $ | 18,697 |  |  | $ | 148 |  |  | $ | 19,868 |
Accrued license fees and revenue share |  | — |  |  | 8,312 |  |  | 217 |  |  | 8,529 |
Accrued compensation |  | 32 |  |  | 1,041 |  |  | — |  |  | 1,073 |
Other current liabilities |  | 794 |  |  | 510 |  |  | — |  |  | 1,304 |
Total current liabilities |  | 1,849 |  |  | 28,560 |  |  | 365 |  |  | 30,774 |
Convertible notes, net of debt issuance costs and discounts of $6,315 |  | 9,685 |  |  | — |  |  | — |  |  | 9,685 |
Convertible note embedded derivative liability |  | 3,218 |  |  | — |  |  | — |  |  | 3,218 |
Warrant liability |  | 1,076 |  |  | — |  |  | — |  |  | 1,076 |
Other non-current liabilities |  | 695 |  |  | 87 |  |  | — |  |  | 782 |
Total liabilities |  | 16,523 |  |  | 28,647 |  |  | 365 |  |  | 45,535 |
Stockholders' equity |  |  |  |  |  |  |  |
Preferred stock |  |  |  |  |  |  |  |
Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized, 100,000 issued and outstanding (liquidation preference of $1,000) |  | 100 |  |  | — |  |  | — |  |  | 100 |
Common stock |  |  |  |  |  |  |  |
$0.0001 par value: 200,000,000 shares authorized; 67,329,262 issued and 66,594,806 outstanding at March 31, 2017 |  | 8 |  |  | — |  |  | — |  |  | 8 |
Additional paid-in capital |  | 299,580 |  |  | — |  |  | — |  |  | 299,580 |
Treasury stock (754,599 shares at March 31, 2017) |  | (71 | ) |  | — |  |  | — |  |  | (71 | )
Accumulated other comprehensive loss |  | — |  |  | (1,704 | ) |  | 1,383 |  |  | (321 | )
Accumulated deficit |  | (191,228 | ) |  | (37,376 | ) |  | (8,647 | ) |  | (237,251 | )
Total stockholders' equity |  | 108,389 |  |  | (39,080 | ) |  | (7,264 | ) |  | 62,045 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |  | $ | 124,912 |  |  | $ | (10,433 | ) |  | $ | (6,899 | ) |  | $ | 107,580 |
Condensed Income Statement | Consolidated Statement of Operations and Comprehensive Loss for the three months ended June 30, 2017 (Unaudited) (in thousands, except par value and share amounts)
|  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Elimination |  | Consolidated Total
Net revenues |  | $ | — |  |  | $ | 37,937 |  |  | $ | 347 |  |  | $ | (12,164 | ) |  | $ | 26,120 |
Cost of revenues |  |  |  |  |  |  |  |  |  |
License fees and revenue share |  | — |  |  | 30,869 |  |  | 176 |  |  | (12,164 | ) |  | 18,881 |
Other direct cost of revenues |  | — |  |  | 409 |  |  | 214 |  |  | — |  |  | 623 |
Total cost of revenues |  | — |  |  | 31,278 |  |  | 390 |  |  | (12,164 | ) |  | 19,504 |
Gross profit |  | — |  |  | 6,659 |  |  | (43 | ) |  | — |  |  | 6,616 |
Operating expenses |  |  |  |  |  |  |  |  |  |
Product development |  | 5 |  |  | 2,741 |  |  | 12 |  |  | — |  |  | 2,758 |
Sales and marketing |  | 102 |  |  | 1,403 |  |  | 53 |  |  | — |  |  | 1,558 |
General and administrative |  | 2,325 |  |  | 1,425 |  |  | 74 |  |  | — |  |  | 3,824 |
Total operating expenses |  | 2,432 |  |  | 5,569 |  |  | 139 |  |  | — |  |  | 8,140 |
Income / (loss) from operations |  | (2,432 | ) |  | 1,090 |  |  | (182 | ) |  | — |  |  | (1,524 | )
Interest and other income / (expense), net |  |  |  |  |  |  |  |  |  |
Interest expense, net |  | (710 | ) |  | 3 |  |  | — |  |  | — |  |  | (707 | )
Foreign exchange transaction loss |  | — |  |  | (144 | ) |  | — |  |  | — |  |  | (144 | )
Change in fair value of convertible note embedded derivative liability |  | (1,308 | ) |  | — |  |  | — |  |  | — |  |  | (1,308 | )
Change in fair value of warrant liability |  | (464 | ) |  | — |  |  | — |  |  | — |  |  | (464 | )
Other income |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 3 |
Total interest and other income / (expense), net |  | (2,479 | ) |  | (141 | ) |  | — |  |  | — |  |  | (2,620 | )
Income / (loss) from operations before income taxes |  | (4,911 | ) |  | 949 |  |  | (182 | ) |  | — |  |  | (4,144 | )
Income tax provision |  | 31 |  |  | — |  |  | — |  |  | — |  |  | 31 |
Net income / (loss) |  | $ | (4,942 | ) |  | $ | 949 |  |  | $ | (182 | ) |  | $ | — |  |  | $ | (4,175 | )
Other comprehensive income / (loss) |  |  |  |  |  |  |  |  |  |
Foreign currency translation adjustment |  | — |  |  | (224 | ) |  | 216 |  |  | — |  |  | (8 | )
Comprehensive income / (loss) |  | $ | (4,942 | ) |  | $ | 725 |  |  | $ | 34 |  |  | $ | — |  |  | $ | (4,183 | )
Consolidated Statement of Operations and Comprehensive Loss for the three months ended June 30, 2016 (Unaudited) (in thousands, except par value and share amounts)
|  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Elimination |  | Consolidated Total
Net revenues |  | $ | — |  |  | $ | 29,604 |  |  | $ | 118 |  |  | $ | (5,683 | ) |  | $ | 24,039 |
Cost of revenues |  |  |  |  |  |  |  |  |  |
License fees and revenue share |  | — |  |  | 24,877 |  |  | 30 |  |  | (5,683 | ) |  | 19,224 |
Other direct cost of revenues |  | — |  |  | 1,805 |  |  | 75 |  |  | — |  |  | 1,880 |
Total cost of revenues |  | — |  |  | 26,682 |  |  | 105 |  |  | (5,683 | ) |  | 21,104 |
Gross profit |  | — |  |  | 2,922 |  |  | 13 |  |  | — |  |  | 2,935 |
Operating expenses |  |  |  |  |  |  |  |  |  |
Product development |  | — |  |  | 2,809 |  |  | 26 |  |  | — |  |  | 2,835 |
Sales and marketing |  | 41 |  |  | 1,429 |  |  | (26 | ) |  | — |  |  | 1,444 |
General and administrative |  | 4,012 |  |  | 1,395 |  |  | (302 | ) |  | — |  |  | 5,105 |
Total operating expenses |  | 4,053 |  |  | 5,633 |  |  | (302 | ) |  | — |  |  | 9,384 |
Loss from operations |  | (4,053 | ) |  | (2,711 | ) |  | 315 |  |  | — |  |  | (6,449 | )
Interest and other income / (expense), net |  |  |  |  |  |  |  |  |  |
Interest expense, net |  | — |  |  | (682 | ) |  | — |  |  | — |  |  | (682 | )
Foreign exchange transaction loss |  | — |  |  | (2 | ) |  | (1 | ) |  | — |  |  | (3 | )
Other income |  | 18 |  |  | — |  |  | — |  |  | — |  |  | 18 |
Total interest and other income / (expense), net |  | 18 |  |  | (684 | ) |  | (1 | ) |  | — |  |  | (667 | )
Income / (loss) from operations before income taxes |  | (4,035 | ) |  | (3,395 | ) |  | 314 |  |  | — |  |  | (7,116 | )
Income tax provision |  | 296 |  |  | — |  |  | — |  |  | — |  |  | 296 |
Net income / (loss) |  | $ | (4,331 | ) |  | $ | (3,395 | ) |  | $ | 314 |  |  | $ | — |  |  | $ | (7,412 | )
Other comprehensive income / (loss) |  |  |  |  |  |  |  |  |  |
Foreign currency translation adjustment |  | — |  |  | 27 |  |  | — |  |  | — |  |  | 27 |
Comprehensive income / (loss) |  | $ | (4,331 | ) |  | $ | (3,368 | ) |  | $ | 314 |  |  | $ | — |  |  | $ | (7,385 | )
Condensed Cash Flow Statement | Condensed Consolidated Statement of Cash Flows for the three months ended June 30, 2017 (Unaudited) (in thousands, except par value and share amounts)
|  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidated Total
Cash flows from operating activities |  |  |  |  |  |  |  |
Net loss |  | $ | (4,942 | ) |  | $ | 949 |  |  | $ | (182 | ) |  | $ | (4,175 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |
Depreciation and amortization |  | 34 |  |  | 667 |  |  | 187 |  |  | 888 |
Change in allowance for doubtful accounts |  | — |  |  | 75 |  |  | — |  |  | 75 |
Amortization of debt discount and debt issuance costs |  | 353 |  |  | — |  |  | — |  |  | 353 |
Accrued interest |  | 344 |  |  | — |  |  | — |  |  | 344 |
Stock-based compensation |  | 788 |  |  | — |  |  | — |  |  | 788 |
Restricted shares and warrants compensation for services rendered |  | 76 |  |  | — |  |  | — |  |  | 76 |
Change in fair value of convertible note embedded derivative liability |  | 1,308 |  |  | — |  |  | — |  |  | 1,308 |
Change in fair value of warrant liability |  | 464 |  |  | — |  |  | — |  |  | 464 |
(Increase) / decrease in assets: |  |  |  |  |  |  |  |
Accounts receivable |  | — |  |  | (3,456 | ) |  | (200 | ) |  | (3,656 | )
Prepaid expenses and other current assets |  | (52 | ) |  | (18 | ) |  | (2 | ) |  | (72 | )
Increase / (decrease) in liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | 236 |  |  | 73 |  |  | 86 |  |  | 395 |
Accrued license fees and revenue share |  | — |  |  | 1,449 |  |  | (26 | ) |  | 1,423 |
Accrued compensation |  | — |  |  | 194 |  |  | — |  |  | 194 |
Other current liabilities |  | 110 |  |  | 17 |  |  | (3 | ) |  | 124 |
Other non-current liabilities |  | 67 |  |  | — |  |  | — |  |  | 67 |
Intercompany movement of cash |  | (729 | ) |  | 1,061 |  |  | (332 | ) |  | — |
Net cash used in operating activities |  | (1,943 | ) |  | 1,011 |  |  | (472 | ) |  | (1,404 | )
Cash flows from investing activities |  |  |  |  |  |  |  |
Capital expenditures |  | — |  |  | (374 | ) |  | — |  |  | (374 | )
Net cash used in investing activities |  | — |  |  | (374 | ) |  | — |  |  | (374 | )
Cash flows from financing activities |  |  |  |  |  |  |  |
Proceeds from short-term borrowings |  | 2,250 |  |  | — |  |  | — |  |  | 2,250 |
Payment of debt issuance costs |  | (320 | ) |  | — |  |  | — |  |  | (320 | )
Options exercised |  | 9 |  |  | — |  |  | — |  |  | 9 |
Net cash provided by (used in) financing activities |  | 1,939 |  |  | — |  |  | — |  |  | 1,939 |
Effect of exchange rate changes on cash |  | — |  |  | (8 | ) |  | — |  |  | (8 | )
Net change in cash |  | (4 | ) |  | 629 |  |  | (472 | ) |  | 153 |
Cash, beginning of period |  | 258 |  |  | 5,333 |  |  | 558 |  |  | 6,149 |
Cash, end of period |  | $ | 254 |  |  | $ | 5,962 |  |  | $ | 86 |  |  | $ | 6,302 |
Condensed Consolidated Statement of Cash Flows for the three months ended June 30, 2016 (Unaudited) (in thousands, except par value and share amounts)
|  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidated Total
Cash flows from operating activities |  |  |  |  |  |  |  |
Net loss |  | $ | (4,331 | ) |  | $ | (3,395 | ) |  | $ | 314 |  |  | $ | (7,412 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |
Depreciation and amortization |  | 2 |  |  | 1,802 |  |  | 290 |  |  | 2,094 |
Change in allowance for doubtful accounts |  | — |  |  | (82 | ) |  | (27 | ) |  | (109 | )
Amortization of debt discount and debt issuance costs |  | — |  |  | 342 |  |  | — |  |  | 342 |
Accrued interest |  | — |  |  | 1 |  |  | — |  |  | 1 |
Stock-based compensation |  | 1,223 |  |  | — |  |  | — |  |  | 1,223 |
Restricted shares and warrants compensation for services rendered |  | 80 |  |  | — |  |  | — |  |  | 80 |
(Increase) / decrease in assets: |  |  |  |  |  |  |  |
Accounts receivable |  | 22 |  |  | 1,952 |  |  | 6 |  |  | 1,980 |
Deposits |  | — |  |  | 69 |  |  | (3 | ) |  | 66 |
Prepaid expenses and other current assets |  | 16 |  |  | 68 |  |  | 5 |  |  | 89 |
Increase / (decrease) in liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | (190 | ) |  | 37 |  |  | (16 | ) |  | (169 | )
Accrued license fees and revenue share |  | — |  |  | 401 |  |  | 18 |  |  | 419 |
Accrued compensation |  | 699 |  |  | (674 | ) |  | (97 | ) |  | (72 | )
Other current liabilities |  | 109 |  |  | 718 |  |  | (455 | ) |  | 372 |
Intercompany movement of cash |  | 1,286 |  |  | (1,351 | ) |  | 65 |  |  | — |
Net cash used in operating activities |  | (1,084 | ) |  | (112 | ) |  | 100 |  |  | (1,096 | )
Cash flows from investing activities |  |  |  |  |  |  |  |
Capital expenditures |  | — |  |  | (472 | ) |  | — |  |  | (472 | )
Net cash used in investing activities |  | — |  |  | (472 | ) |  | — |  |  | (472 | )
Cash flows from financing activities |  |  |  |  |  |  |  |
Payment of debt issuance costs |  | — |  |  | (280 | ) |  | — |  |  | (280 | )
Options exercised |  | 2 |  |  | — |  |  | — |  |  | 2 |
Net cash provided by (used in) financing activities |  | 2 |  |  | (280 | ) |  | — |  |  | (278 | )
Effect of exchange rate changes on cash |  | — |  |  | 27 |  |  | — |  |  | 27 |
Net change in cash |  | (1,082 | ) |  | (837 | ) |  | 100 |  |  | (1,819 | )
Cash, beginning of period |  | 6,712 |  |  | 4,470 |  |  | 49 |  |  | 11,231 |
Cash, end of period |  | $ | 5,630 |  |  | $ | 3,633 |  |  | $ | 149 |  |  | $ | 9,412 |

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