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Contingencies
 12 Months Ended
Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]  
Contingencies

  13. Contingencies

 

Litigation

 

The Company is subject to litigation from time to time in the ordinary course of its business. There can be no assurance that any claims will be decided in the Company’s favor and the Company is not insured against all claims made. During the pendency of such claims, the Company will continue to incur the costs of its legal defense. Currently, there is no material litigation pending or threatened against the Company.

 

Equipment Repairs

 

Beginning in the fourth quarter of 2014, the Company encountered challenges with assembling its second generation cases for its BEOND tablet. As a result, the Company accrued approximately $716,000 and $204,000 of expense during the years ended December 31, 2015 and 2014, respectively, for cases deployed at customer sites that the Company has deemed probable it will need to repair. This expense was recognized in direct costs on the consolidated statement of operations and other current liabilities on the consolidated balance sheets. As of December 31, 2016, approximately $175,000 remained in other current liabilities. The Company may continue to experience challenges with its tablet equipment, and as a result, it may be required to recognize additional repair expense contingencies in the future.

 

Sales and Use Tax

 

From time to time, state tax authorities will make inquiries as to whether or not a portion of the Company’s services require the collection of sales and use taxes from customers in those states. Many states have expanded their interpretation of their sales and use tax statutes to subject more activities to tax. The Company evaluates such inquiries on a case-by-case basis and has favorably resolved the majority of these tax issues in the past without any material adverse consequences.

 

The Company has been involved in sales tax inquiries with certain states and provinces. As a result of those inquiries, the Company recorded a total net liability of $25,000 as of December 31, 2015, which is included in the sales taxes payable balance in the accompanying consolidated balance sheets. Based on the guidance set forth by ASC No. 450, Contingencies, management has deemed the likelihood as reasonably possible that it will be required to pay all or part of these assessments. During the year ended December 31, 2016, the Company resolved all matters under inquiry, and the previously recognized $25,000 was sufficient under the assessments. Accordingly, there was no liability recorded as of December 31, 2016.