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Guarantor and Non-Guarantor Financial Statements (Tables) | 12 Months Ended
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Mar. 31, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
Condensed Balance Sheet |
Consolidated Balance Sheet
as of March 31, 2018
(Unaudited)
(dollars in thousands) |  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidated Total
ASSETS |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |
Cash |  | 501 |  |  | 11,800 |  |  | 419 |  |  | 12,720 |
Restricted cash |  | 156 |  |  | 175 |  |  | — |  |  | 331 |
Accounts receivable, net of allowance of $512 |  | — |  |  | 16,777 |  |  | 273 |  |  | 17,050 |
Deposits |  | 34 |  |  | 113 |  |  | 4 |  |  | 151 |
Prepaid expenses and other current assets |  | 330 |  |  | 406 |  |  | 14 |  |  | 750 |
Current assets held for disposal |  | — |  |  | 8,610 |  |  | 143 |  |  | 8,753 |
Total current assets |  | 1,021 |  |  | 37,881 |  |  | 853 |  |  | 39,755 |
Property and equipment, net |  | 257 |  |  | 2,485 |  |  | 15 |  |  | 2,757 |
Deferred tax assets |  | 596 |  |  | — |  |  | — |  |  | 596 |
Intangible assets, net |  | — |  |  | 1,231 |  |  | — |  |  | 1,231 |
Goodwill |  | — |  |  | 41,268 |  |  | 1,000 |  |  | 42,268 |
TOTAL ASSETS |  | 1,874 |  |  | 82,865 |  |  | 1,868 |  |  | 86,607 |
INTERCOMPANY |  |  |  |  |  |  |  |
Intercompany payable/receivable, net |  | 117,873 |  |  | (114,234 | ) |  | (3,639 | ) |  | — |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |
Accounts payable |  | 1,031 |  |  | 18,841 |  |  | 23 |  |  | 19,895 |
Accrued license fees and revenue share |  | — |  |  | 7,989 |  |  | 243 |  |  | 8,232 |
Accrued compensation |  | 2,285 |  |  | 661 |  |  | 20 |  |  | 2,966 |
Short-term debt, net of debt issuance costs and discounts of $205 |  | 1,445 |  |  | — |  |  | — |  |  | 1,445 |
Other current liabilities |  | 911 |  |  | 231 |  |  | — |  |  | 1,142 |
Current liabilities held for disposal |  |  |  | 12,246 |  |  | 480 |  |  | 12,726 |
Total current liabilities |  | 5,672 |  |  | 39,968 |  |  | 766 |  |  | 46,406 |
Convertible notes, net of debt issuance costs and discounts of $1,827 |  | 3,873 |  |  | — |  |  | — |  |  | 3,873 |
Convertible note embedded derivative liability |  | 4,676 |  |  | — |  |  | — |  |  | 4,676 |
Warrant liability |  | 3,980 |  |  | — |  |  | — |  |  | 3,980 |
Other non-current liabilities |  | — |  |  | — |  |  | — |  |  | — |
Non-current liabilities held for disposal |  | — |  |  | — |  |  | — |  |  | — |
Total liabilities |  | 18,201 |  |  | 39,968 |  |  | 766 |  |  | 58,935 |
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; 76,843,278 issued and 76,108,822 outstanding at March 31, 2018. |  | 10 |  |  | — |  |  | — |  |  | 10 |
Additional paid-in capital |  | 318,066 |  |  | — |  |  | — |  |  | 318,066 |
Treasury stock (754,599 shares at December 31, 2017) |  | (71 | ) |  | — |  |  | — |  |  | (71 | )
Accumulated other comprehensive loss |  | (15 | ) |  | (621 | ) |  | 311 |  |  | (325 | )
Accumulated deficit |  | (216,544 | ) |  | (70,716 | ) |  | (2,848 | ) |  | (290,108 | )
Total stockholders' equity |  | 101,546 |  |  | (71,337 | ) |  | (2,537 | ) |  | 27,672 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |  | 119,747 |  |  | (31,369 | ) |  | (1,771 | ) |  | 86,607 |
Consolidated Balance Sheet
as of March 31, 2017
(Unaudited)
(dollars in thousands) |  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidated Total
ASSETS |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |
Cash |  | 257 |  |  | 5,335 |  |  | 557 |  |  | 6,149 |
Restricted cash |  | 156 |  |  | 175 |  |  | — |  |  | 331 |
Accounts receivable, net of allowance of $228 |  | — |  |  | 10,131 |  |  | 532 |  |  | 10,663 |
Deposits |  | — |  |  | 121 |  |  | — |  |  | 121 |
Prepaid expenses and other current assets |  | 282 |  |  | 165 |  |  | 1 |  |  | 448 |
Current assets held for disposal |  | — |  |  | 5,671 |  |  | 282 |  |  | 5,953 |
Total current assets |  | 695 |  |  | 21,598 |  |  | 1,372 |  |  | 23,665 |
Property and equipment, net |  | 64 |  |  | 1,925 |  |  | 17 |  |  | 2,006 |
Cost method investment |  | — |  |  | — |  |  | — |  |  | — |
Deferred tax assets |  | 352 |  |  | — |  |  | — |  |  | 352 |
Intangible assets, net |  | — |  |  | 2,647 |  |  | — |  |  | 2,647 |
Goodwill |  | — |  |  | 41,268 |  |  | 1,000 |  |  | 42,268 |
Long-term assets held for disposal |  | — |  |  | 36,642 |  |  | — |  |  | 36,642 |
TOTAL ASSETS |  | 1,111 |  |  | 104,080 |  |  | 2,389 |  |  | 107,580 |
INTERCOMPANY |  |  |  |  |  |  |  |
Intercompany payable/receivable, net |  | 123,801 |  |  | (119,493 | ) |  | (4,308 | ) |  | — |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |
Accounts payable |  | 1,022 |  |  | 10,749 |  |  | 16 |  |  | 11,787 |
Accrued license fees and revenue share |  | — |  |  | 2,979 |  |  | 32 |  |  | 3,011 |
Accrued compensation |  | 33 |  |  | 487 |  |  | — |  |  | 520 |
Other current liabilities |  | 768 |  |  | 273 |  |  | — |  |  | 1,041 |
Current liabilities held for disposal |  | — |  |  | 14,097 |  |  | 318 |  |  | 14,415 |
Total current liabilities |  | 1,823 |  |  | 28,585 |  |  | 366 |  |  | 30,774 |
Convertible notes, net of debt issuance costs and discounts of $6,315 |  | 9,685 |  |  | — |  |  | — |  |  | 9,685 |
Other non-current liabilities |  | 697 |  |  | — |  |  | — |  |  | 697 |
Convertible note embedded derivative liability |  | 3,218 |  |  | — |  |  | — |  |  | 3,218 |
Warrant liability |  | 1,076 |  |  | — |  |  | — |  |  | 1,076 |
Non-current liabilities held for disposal |  | — |  |  | 85 |  |  | — |  |  | 85 |
Total liabilities |  | 16,499 |  |  | 28,670 |  |  | 366 |  |  | 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 |  | (18 | ) |  | (613 | ) |  | 310 |  |  | (321 | )
Accumulated deficit |  | (191,186 | ) |  | (43,470 | ) |  | (2,595 | ) |  | (237,251 | )
Total stockholders' equity |  | 108,413 |  |  | (44,083 | ) |  | (2,285 | ) |  | 62,045 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |  | 124,912 |  |  | (15,413 | ) |  | (1,919 | ) |  | 107,580 |
Condensed Income Statement |
Consolidated Statement of Operations and Comprehensive Loss
For the year ended March 31, 2018
(Unaudited)
(dollars in thousands) |  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Elimination |  | Consolidated Total
Net revenues |  | — |  |  | 135,687 |  |  | 905 |  |  | (61,841 | ) |  | 74,751 |
Cost of revenues |  |  |  |  |  |  |  |  |  |
License fees and revenue share |  | — |  |  | 109,573 |  |  | 235 |  |  | (61,841 | ) |  | 47,967 |
Other direct cost of revenues |  | — |  |  | 1,729 |  |  | — |  |  | — |  |  | 1,729 |
Total cost of revenues |  | — |  |  | 111,302 |  |  | 235 |  |  | (61,841 | ) |  | 49,696 |
Gross profit |  | — |  |  | 24,385 |  |  | 670 |  |  | — |  |  | 25,055 |
Operating expenses |  |  |  |  |  |  |  |  |  |
Product development |  | 46 |  |  | 9,448 |  |  | 159 |  |  | — |  |  | 9,653 |
Sales and marketing |  | 630 |  |  | 5,007 |  |  | 450 |  |  | — |  |  | 6,087 |
General and administrative |  | 10,971 |  |  | 3,767 |  |  | 386 |  |  | — |  |  | 15,124 |
Total operating expenses |  | 11,647 |  |  | 18,222 |  |  | 995 |  |  | — |  |  | 30,864 |
Income / (loss) from operations |  | (11,647 | ) |  | 6,163 |  |  | (325 | ) |  | — |  |  | (5,809 | )
Interest and other income / (expense), net |  |  |  |  |  |  |  |  |  |
Interest income / (expense), net |  | (2,071 | ) |  | 4 |  |  | — |  |  | — |  |  | (2,067 | )
Foreign exchange transaction gain / (loss) |  | 2 |  |  | (159 | ) |  | 9 |  |  | — |  |  | (148 | )
Change in fair value of convertible note embedded derivative liability |  | (7,559 | ) |  | — |  |  | — |  |  | — |  |  | (7,559 | )
Change in fair value of warrant liability |  | (3,208 | ) |  | — |  |  | — |  |  | — |  |  | (3,208 | )
Gain / (loss) on extinguishment of debt |  | (1,787 | ) |  | 2 |  |  | — |  |  | — |  |  | (1,785 | )
Other income / (expense) |  | 3 |  |  | (75 | ) |  | — |  |  | — |  |  | (72 | )
Total interest and other income / (expense), net |  | (14,620 | ) |  | (228 | ) |  | 9 |  |  | — |  |  | (14,839 | )
Income / (loss) from operations before income taxes |  | (26,267 | ) |  | 5,935 |  |  | (316 | ) |  | — |  |  | (20,648 | )
Income tax benefit |  | (951 | ) |  | — |  |  | — |  |  | — |  |  | (951 | )
Net income / (loss) from operations, net of taxes |  | (25,316 | ) |  | 5,935 |  |  | (316 | ) |  | — |  |  | (19,697 | )
Discontinued operations, net of taxes |  |  |  |  |  |  |  |  |  |
Income / (loss) from operations of discontinued components |  | — |  |  | (33,168 | ) |  | 8 |  |  | — |  |  | (33,160 | )
Net income / (loss) from discontinued operations, net of taxes |  | — |  |  | (33,168 | ) |  | 8 |  |  | — |  |  | (33,160 | )
Net loss |  | (25,316 | ) |  | (27,233 | ) |  | (308 | ) |  | — |  |  | (52,857 | )
Other comprehensive loss |  |  |  |  |  |  |  |  |  |
Foreign currency translation adjustment |  | — |  |  | (4 | ) |  | — |  |  | — |  |  | (4 | )
Comprehensive loss |  | (25,316 | ) |  | (27,237 | ) |  | (308 | ) |  | — |  |  | (52,861 | )
Consolidated Statement of Operations and Comprehensive Loss
For the year ended March 31, 2017
(Unaudited)
(dollars in thousands) |  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Elimination |  | Consolidated Total
Net revenues |  | — |  |  | 70,703 |  |  | 1,126 |  |  | (31,622 | ) |  | 40,207 |
Cost of revenues |  |  |  |  |  |  |  |  |  |
License fees and revenue share |  | — |  |  | 57,936 |  |  | 60 |  |  | (31,622 | ) |  | 26,374 |
Other direct cost of revenues |  | — |  |  | 1,518 |  |  | 1,057 |  |  | — |  |  | 2,575 |
Total cost of revenues |  | — |  |  | 59,454 |  |  | 1,117 |  |  | (31,622 | ) |  | 28,949 |
Gross profit |  | — |  |  | 11,249 |  |  | 9 |  |  | — |  |  | 11,258 |
Operating expenses |  |  |  |  |  |  |  |  |  |
Product development |  | 30 |  |  | 9,171 |  |  | 82 |  |  | — |  |  | 9,283 |
Sales and marketing |  | 452 |  |  | 3,623 |  |  | 105 |  |  | — |  |  | 4,180 |
General and administrative |  | 11,009 |  |  | 3,889 |  |  | (132 | ) |  | — |  |  | 14,766 |
Total operating expenses |  | 11,491 |  |  | 16,683 |  |  | 55 |  |  | — |  |  | 28,229 |
Loss from operations |  | (11,491 | ) |  | (5,434 | ) |  | (46 | ) |  | — |  |  | (16,971 | )
Interest and other income / (expense), net |  |  |  |  |  |  |  |  |  |
Interest expense, net |  | (1,329 | ) |  | (1,296 | ) |  | — |  |  | — |  |  | (2,625 | )
Foreign exchange transaction loss |  | — |  |  | (22 | ) |  | (4 | ) |  | — |  |  | (26 | )
Change in fair value of convertible note embedded derivative liability |  | 475 |  |  | — |  |  | — |  |  | — |  |  | 475 |
Change in fair value of warrant liability |  | 147 |  |  | — |  |  | — |  |  | — |  |  | 147 |
Loss on extinguishment of debt |  | — |  |  | (293 | ) |  | — |  |  | — |  |  | (293 | )
Other income / (expense) |  | 58 |  |  | (47 | ) |  | — |  |  | — |  |  | 11 |
Total interest and other income / (expense), net |  | (649 | ) |  | (1,658 | ) |  | (4 | ) |  | — |  |  | (2,311 | )
Loss from operations before income taxes |  | (12,140 | ) |  | (7,092 | ) |  | (50 | ) |  | — |  |  | (19,282 | )
Income tax benefit |  | (144 | ) |  | — |  |  | — |  |  | — |  |  | (144 | )
Net loss from operations, net of taxes |  | (11,996 | ) |  | (7,092 | ) |  | (50 | ) |  | — |  |  | (19,138 | )
Discontinued operations, net of taxes |  |  |  |  |  |  |  |  |  |
Income / (loss) from operations of discontinued components |  | — |  |  | (5,237 | ) |  | 111 |  |  | — |  |  | (5,126 | )
Net income / (loss) from discontinued operations, net of taxes |  | — |  |  | (5,237 | ) |  | 111 |  |  | — |  |  | (5,126 | )
Net income / (loss) |  | (11,996 | ) |  | (12,329 | ) |  | 61 |  |  | — |  |  | (24,264 | )
Other comprehensive loss |  |  |  |  |  |  |  |  |  |
Foreign currency translation adjustment |  | — |  |  | (119 | ) |  | — |  |  | — |  |  | (119 | )
Comprehensive income / (loss) |  | (11,996 | ) |  | (12,448 | ) |  | 61 |  |  | — |  |  | (24,383 | )
Consolidated Statement of Operations and Comprehensive Loss
For the year ended March 31, 2016
(Unaudited)
(dollars in thousands) |  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidated Total
Net revenues |  | — |  |  | 39,432 |  |  | 124 |  |  | 22,251 |
Cost of revenues |  |  |  |  |  |  |  |
License fees and revenue share |  | — |  |  | 30,619 |  |  | — |  |  | 13,314 |
Other direct cost of revenues |  | — |  |  | 9,775 |  |  | (2,298 | ) |  | 7,477 |
Total cost of revenues |  | — |  |  | 40,394 |  |  | (2,298 | ) |  | 20,791 |
Gross profit / (loss) |  | — |  |  | (962 | ) |  | 2,422 |  |  | 1,460 |
Operating expenses |  |  |  |  |  |  |  |
Product development |  | (582 | ) |  | 4,943 |  |  | 522 |  |  | 4,883 |
Sales and marketing |  | 46 |  |  | 2,718 |  |  | 144 |  |  | 2,908 |
General and administrative |  | 11,457 |  |  | 4,182 |  |  | 564 |  |  | 16,203 |
Total operating expenses |  | 10,921 |  |  | 11,843 |  |  | 1,230 |  |  | 23,994 |
Income / (loss) from operations |  | (10,921 | ) |  | (12,805 | ) |  | 1,192 |  |  | (22,534 | )
Interest and other income / (expense), net |  |  |  |  |  |  |  |
Interest income / (expense), net |  | 1 |  |  | (1,717 | ) |  | — |  |  | (1,716 | )
Foreign exchange transaction loss |  | (6 | ) |  | (12 | ) |  | (6 | ) |  | (24 | )
Other income / (expense) |  | 18 |  |  | (22 | ) |  | — |  |  | (4 | )
Total interest and other income / (expense), net |  | 13 |  |  | (1,751 | ) |  | (6 | ) |  | (1,744 | )
Income / (loss) from operations before income taxes |  | (10,908 | ) |  | (14,556 | ) |  | 1,186 |  |  | (24,278 | )
Income tax provision |  | 130 |  |  | 84 |  |  | — |  |  | 214 |
Net income / (loss) from operations, net of taxes |  | (11,038 | ) |  | (14,640 | ) |  | 1,186 |  |  | (24,492 | )
Discontinued operations, net of taxes |  |  |  |  |  |  |  |
Loss from operations of discontinued components |  | — |  |  | (923 | ) |  | (2,617 | ) |  | (3,540 | )
Net loss from discontinued operations, net of taxes |  | — |  |  | (923 | ) |  | (2,617 | ) |  | (3,540 | )
Net loss |  | (11,038 | ) |  | (15,563 | ) |  | (1,431 | ) |  | (28,032 | )
Other comprehensive loss |  |  |  |  |  |  |  |
Foreign currency translation adjustment |  | — |  |  | (150 | ) |  | — |  |  | (150 | )
Comprehensive loss |  | (11,038 | ) |  | (15,713 | ) |  | (1,431 | ) |  | (28,182 | )
Condensed Cash Flow Statement |
Consolidated Statement of Cash Flows
For the year ended March 31, 2018
(Unaudited)
(dollars in thousands) |  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidated Total
Cash flows from operating activities |  |  |  |  |  |  |  |
Net loss |  | (25,316 | ) |  | 5,935 |  |  | (316 | ) |  | (19,697 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |
Depreciation and amortization |  | 21 |  |  | 2,629 |  |  | 10 |  |  | 2,660 |
Change in allowance for doubtful accounts |  | — |  |  | 299 |  |  | — |  |  | 299 |
Amortization of debt discount and debt issuance costs |  | 1,018 |  |  | — |  |  | — |  |  | 1,018 |
Stock-based compensation |  | 2,844 |  |  | (189 | ) |  | — |  |  | 2,655 |
Stock-based compensation for services rendered |  | 323 |  |  | — |  |  | — |  |  | 323 |
Change in fair value of convertible note embedded derivative liability |  | 7,559 |  |  | — |  |  | — |  |  | 7,559 |
Change in fair value of warrant liability |  | 3,208 |  |  | — |  |  | — |  |  | 3,208 |
Loss on extinguishment of debt |  | 1,787 |  |  | (2 | ) |  | — |  |  | 1,785 |
(Increase) / decrease in assets: |  |  |  |  |  |  |  |
Accounts receivable |  | — |  |  | (7,094 | ) |  | 23 |  |  | (7,071 | )
Deposits |  | (34 | ) |  | 8 |  |  | (4 | ) |  | (30 | )
Deferred tax assets |  | (244 | ) |  | — |  |  | — |  |  | (244 | )
Prepaid expenses and other current assets |  | (85 | ) |  | (209 | ) |  | (12 | ) |  | (306 | )
Increase / (decrease) in liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | 8 |  |  | 8,092 |  |  | 8 |  |  | 8,108 |
Accrued license fees and revenue share |  | — |  |  | 5,010 |  |  | 211 |  |  | 5,221 |
Accrued compensation |  | 2,252 |  |  | 173 |  |  | 20 |  |  | 2,445 |
Accrued interest |  | (26 | ) |  | — |  |  | — |  |  | (26 | )
Other current liabilities |  | 6,078 |  |  | (5,381 | ) |  | (619 | ) |  | 78 |
Other non-current liabilities |  | (679 | ) |  | (16 | ) |  | — |  |  | (695 | )
Net cash provided by / (used in) operating activities - continuing operations |  | (1,286 | ) |  | 9,255 |  |  | (679 | ) |  | 7,290 |
Net cash provided by / (used in) operating activities - discontinued operations |  | — |  |  | (873 | ) |  | 549 |  |  | (324 | )
Net cash used in operating activities |  | (1,286 | ) |  | 8,382 |  |  | (130 | ) |  | 6,966 |
Cash flows from investing activities |  |  |  |  |  |  |  |
Capital expenditures |  | (213 | ) |  | (1,770 | ) |  | (9 | ) |  | (1,992 | )
Net cash provided by / (used in) investing activities - continuing operations |  | (213 | ) |  | (1,770 | ) |  | (9 | ) |  | (1,992 | )
Net cash provided by / (used in) investing activities - discontinued operations |  | — |  |  | (142 | ) |  | — |  |  | (142 | )
Net cash used in investing activities |  | (213 | ) |  | (1,912 | ) |  | (9 | ) |  | (2,134 | )
Cash flows from financing activities |  |  |  |  |  |  |  |
Proceeds from short-term borrowings |  | 2,500 |  |  | — |  |  | — |  |  | 2,500 |
Repayment of debt obligations |  | (1,098 | ) |  | — |  |  | — |  |  | (1,098 | )
Payment for debt issuance costs |  | (346 | ) |  | — |  |  | — |  |  | (346 | )
Options exercised |  | 337 |  |  | — |  |  | — |  |  | 337 |
Warrant exercised |  | 350 |  |  | — |  |  | — |  |  | 350 |
Net cash provided in financing activities |  | 1,743 |  |  | — |  |  | — |  |  | 1,743 |
Effect of exchange rate changes on cash |  | — |  |  | (5 | ) |  | 1 |  |  | (4 | )
Net change in cash |  | 244 |  |  | 6,465 |  |  | (138 | ) |  | 6,571 |
Cash, beginning of period |  | 257 |  |  | 5,335 |  |  | 557 |  |  | 6,149 |
Cash, end of period |  | 501 |  |  | 11,800 |  |  | 419 |  |  | 12,720 |
Consolidated Statement of Cash Flows
For the year ended March 31, 2017
(Unaudited)
(dollars in thousands) |  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidated Total
Cash flows from operating activities |  |  |  |  |  |  |  |
Net loss |  | (11,996 | ) |  | (7,092 | ) |  | (50 | ) |  | (19,138 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |
Depreciation and amortization |  | 14 |  |  | 663 |  |  | 1,929 |  |  | 2,606 |
Change in allowance for doubtful accounts |  | — |  |  | 33 |  |  | 15 |  |  | 48 |
Amortization of debt discount and debt issuance costs |  | 1,256 |  |  | — |  |  | — |  |  | 1,256 |
Stock-based compensation |  | 3,748 |  |  | (386 | ) |  | — |  |  | 3,362 |
Stock-based compensation for services rendered |  | 398 |  |  | — |  |  | — |  |  | 398 |
Impairment of intangible assets |  | — |  |  | — |  |  | 757 |  |  | 757 |
Change in fair value of convertible note embedded derivative liability |  | (475 | ) |  | — |  |  | — |  |  | (475 | )
Change in fair value of warrant liability |  | (147 | ) |  | — |  |  | — |  |  | (147 | )
Loss on extinguishment of debt |  | — |  |  | 293 |  |  | — |  |  | 293 |
(Increase) / decrease in assets: |  |  |  |  |  |  |  |
Restricted cash transferred to / (from) operating cash |  | (156 | ) |  | (177 | ) |  | 2 |  |  | (331 | )
Accounts receivable |  | 25 |  |  | (3,076 | ) |  | (831 | ) |  | (3,882 | )
Deposits |  | — |  |  | (57 | ) |  | 80 |  |  | 23 |
Deferred tax assets |  | 148 |  |  | — |  |  | — |  |  | 148 |
Prepaid expenses and other current assets |  | (80 | ) |  | 150 |  |  | 11 |  |  | 81 |
Increase / (decrease) in liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | (233 | ) |  | 4,701 |  |  | (34 | ) |  | 4,434 |
Accrued license fees and revenue share |  | — |  |  | (21 | ) |  | 17 |  |  | (4 | )
Accrued compensation |  | 575 |  |  | (94 | ) |  | (96 | ) |  | 385 |
Accrued interest |  | 133 |  |  | (97 | ) |  | — |  |  | 36 |
Other current liabilities |  | (1,091 | ) |  | 270 |  |  | (502 | ) |  | (1,323 | )
Other non-current liabilities |  | (31 | ) |  | (85 | ) |  | — |  |  | (116 | )
Intercompany movement of cash |  | (15,146 | ) |  | 16,684 |  |  | (1,538 | ) |  | — |
Net cash provided by / (used in) operating activities - continuing operations |  | (23,058 | ) |  | 11,709 |  |  | (240 | ) |  | (11,589 | )
Net cash provided by / (used in) operating activities - discontinued operations |  | — |  |  | 4,067 |  |  | 527 |  |  | 4,594 |
Net cash used in operating activities |  | (23,058 | ) |  | 15,776 |  |  | 287 |  |  | (6,995 | )
Cash flows from investing activities |  |  |  |  |  |  |  |
Capital expenditures |  | — |  |  | (1,418 | ) |  | — |  |  | (1,418 | )
Proceeds from sale of cost method investment in Sift |  | 999 |  |  | — |  |  | — |  |  | 999 |
Net cash provided by / (used in) investing activities - continuing operations |  | 999 |  |  | (1,418 | ) |  | — |  |  | (419 | )
Net cash provided by / (used in) investing activities - discontinued operations |  | — |  |  | (177 | ) |  | — |  |  | (177 | )
Net cash used in investing activities |  | 999 |  |  | (1,595 | ) |  | — |  |  | (596 | )
Cash flows from financing activities |  |  |  |  |  |  |  |
Cash received from issuance of convertible notes |  | 16,000 |  |  | — |  |  | — |  |  | 16,000 |
Repayment of debt obligations |  | — |  |  | (11,000 | ) |  | — |  |  | (11,000 | )
Payment for debt issuance costs |  | (407 | ) |  | (1,976 | ) |  | — |  |  | (2,383 | )
Options exercised |  | 11 |  |  | — |  |  | — |  |  | 11 |
Net cash provided in financing activities |  | 15,604 |  |  | (12,976 | ) |  | — |  |  | 2,628 |
Effect of exchange rate changes on cash |  | — |  |  | (336 | ) |  | 217 |  |  | (119 | )
Net change in cash |  | (6,455 | ) |  | 869 |  |  | 504 |  |  | (5,082 | )
Cash, beginning of period |  | 6,712 |  |  | 4,466 |  |  | 53 |  |  | 11,231 |
Cash, end of period |  | 257 |  |  | 5,335 |  |  | 557 |  |  | 6,149 |
Consolidated Statement of Cash Flows
For the year ended March 31, 2016
(Unaudited)
(dollars in thousands) |  | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidated Total
Cash flows from operating activities |  |  |  |  |  |  |  |
Net loss |  | (11,038 | ) |  | (14,640 | ) |  | 1,186 |  |  | (24,492 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |
Depreciation and amortization |  | 9 |  |  | 9,707 |  |  | (1,843 | ) |  | 7,873 |
Change in allowance for doubtful accounts |  | — |  |  | (495 | ) |  | — |  |  | (495 | )
Amortization of debt discount and debt issuance costs |  | 470 |  |  | — |  |  | — |  |  | 470 |
Stock-based compensation |  | 5,095 |  |  | — |  |  | — |  |  | 5,095 |
Stock-based compensation for services rendered |  | 867 |  |  | — |  |  | — |  |  | 867 |
Stock issued for settlement of liability |  | 283 |  |  | — |  |  | — |  |  | 283 |
(Increase) / decrease in assets: |  |  |  |  |  |  |  |
Restricted cash transferred to / (from) operating cash |  | 200 |  |  | — |  |  | — |  |  | 200 |
Accounts receivable |  | (24 | ) |  | (4,988 | ) |  | (85 | ) |  | (5,097 | )
Deposits |  | 9 |  |  | 74 |  |  | (118 | ) |  | (35 | )
Deferred tax assets |  | (418 | ) |  | — |  |  | — |  |  | (418 | )
Prepaid expenses and other current assets |  | (171 | ) |  | 111 |  |  | 39 |  |  | (21 | )
Increase / (decrease) in liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | (797 | ) |  | 7,821 |  |  | (3,644 | ) |  | 3,380 |
Accrued license fees and revenue share |  | — |  |  | 2,743 |  |  | (30 | ) |  | 2,713 |
Accrued compensation |  | (1,070 | ) |  | 1,316 |  |  | (1,346 | ) |  | (1,100 | )
Accrued interest |  | — |  |  | 12 |  |  | — |  |  | 12 |
Other current liabilities |  | (398 | ) |  | 262 |  |  | (670 | ) |  | (806 | )
Intercompany movement of cash |  | (4,014 | ) |  | (2,475 | ) |  | 6,489 |  |  | — |
Net cash provided by / (used in) operating activities - continuing operations |  | (10,997 | ) |  | (552 | ) |  | (22 | ) |  | (11,571 | )
Net cash provided by / (used in) operating activities - discontinued operations |  | — |  |  | 4,515 |  |  | (13 | ) |  | 4,502 |
Net cash used in operating activities |  | (10,997 | ) |  | 3,963 |  |  | (35 | ) |  | (7,069 | )
Cash flows from investing activities |  |  |  |  |  |  |  |
Capital expenditures |  | — |  |  | (1,549 | ) |  | — |  |  | (1,549 | )
Net cash proceeds from cost method investment in Sift |  | 875 |  |  | — |  |  | — |  |  | 875 |
Net cash provided by / (used in) investing activities - continuing operations |  | 875 |  |  | (1,549 | ) |  | — |  |  | (674 | )
Net cash used in investing activities |  | 875 |  |  | (1,549 | ) |  | — |  |  | (674 | )
Cash flows from financing activities |  |  |  |  |  |  |  |
Repayment of debt obligations |  | — |  |  | (600 | ) |  | — |  |  | (600 | )
Options exercised |  | 51 |  |  | — |  |  | — |  |  | 51 |
Stock issued for cash in stock offering, net |  | 12,627 |  |  | — |  |  | — |  |  | 12,627 |
Net cash provided in financing activities |  | 12,678 |  |  | (600 | ) |  | — |  |  | 12,078 |
Effect of exchange rate changes on cash |  | — |  |  | (173 | ) |  | — |  |  | (173 | )
Net change in cash |  | 2,556 |  |  | 1,641 |  |  | (35 | ) |  | 4,162 |
Cash, beginning of period |  | 4,156 |  |  | 2,825 |  |  | 88 |  |  | 7,069 |
Cash, end of period |  | 6,712 |  |  | 4,466 |  |  | 53 |  |  | 11,231 |

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