View Filing Data

Print Document View Excel Document

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2015	Apr. 24, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Entity Registrant Name	Vringo Inc
Entity Central Index Key	0001410428
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	VRNG
Entity Common Stock, Shares Outstanding		93,571,042

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 12,239	$ 16,023
Deposits with courts	2,070	2,067
Other current assets	389	510
Total current assets	14,698	18,600
Property and equipment, at cost, net of $610 and $389 accumulated depreciation as of March 31, 2015 and December 31, 2014, respectively	0	221
Intangible assets, net	16,821	17,625
Other assets	989	989
Total assets	32,508	37,435
Current liabilities
Accounts payable and accrued expenses	4,750	4,731
Derivative warrant liabilities	0	1
Total current liabilities	4,750	4,732
Long-term liabilities
Derivative warrant liabilities	0	174
Other liabilities	1,507	1,349
Commitments and contingencies (Note 10)
Stockholders’ equity
Series A Convertible Preferred stock, $0.01 par value per share; 5,000,000 authorized; none issued and outstanding	0	0
Common stock, $0.01 par value per share 150,000,000 authorized; 93,571,042 and 93,404,895 issued and outstanding as of March 31, 2015 and December 31, 2014, respectively	936	934
Additional paid-in capital	217,996	215,951
Accumulated deficit	(192,681)	(185,705)
Total stockholders’ equity	26,251	31,180
Total liabilities and stockholders’ equity	$ 32,508	$ 37,435

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2015	Dec. 31, 2014
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 610	$ 389
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	150,000,000	150,000,000
Common stock, issued	93,571,042	93,404,895
Common stock, outstanding	93,571,042	93,404,895
Series A convertible preferred stock [Member]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenue	$ 150	$ 250
Costs and Expenses*
Operating legal costs	3,101	4,875
Amortization of intangibles	804	957
General and administrative	2,998	4,243
Total operating expenses	6,903	10,075
Operating loss from continuing operations	(6,753)	(9,825)
Non-operating income (expense), net	(223)	1
Gain (loss) on revaluation of warrants	0	(1,076)
Loss from continuing operations before income taxes	(6,976)	(10,900)
Income tax expense	0	0
Loss from continuing operations	(6,976)	(10,900)
Loss from discontinued operations before income taxes*	0	(209)
Income tax expense	0	0
Loss from discontinued operations	0	(209)
Net loss	$ (6,976)	$ (11,109)
Basic
Loss per share from continuing operations	$ (0.07)	$ (0.13)
Loss per share from discontinued operations	(0.00)	(0.00)
Total net loss per share	(0.07)	(0.13)
Diluted
Loss per share from continuing operations	(0.07)	(0.13)
Loss per share from discontinued operations	(0.00)	(0.00)
Total net loss per share	$ (0.07)	$ (0.13)
Weighted-average number of shares outstanding during the period:
Basic	93,404,895	85,457,670
Diluted	93,404,895	85,457,670
* Includes stock-based compensation expense, as follows:
Stock Based Compensation Expense	$ 1,872	$ 2,800
Operating legal costs [Member]
* Includes stock-based compensation expense, as follows:
Stock Based Compensation Expense	318	343
General and Administrative [Member]
* Includes stock-based compensation expense, as follows:
Stock Based Compensation Expense	1,554	2,306
Discontinued Operations [Member]
* Includes stock-based compensation expense, as follows:
Stock Based Compensation Expense	$ 0	$ 151

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2013	$ 114,282	$ 845	$ 189,465	$ (76,028)
Exercise of stock options and vesting of RSU	1,944	13	1,931	0
Exercise of warrants	2,011	7	2,004	0
Stock-based compensation	2,800	0	2,800	0
Net loss for the period	(11,109)	0	0	(11,109)
Balance at Mar. 31, 2014	109,928	865	196,200	(87,137)
Balance at Dec. 31, 2014	31,180	934	215,951	(185,705)
Exercise of stock options and vesting of RSU	0	2	(2)	0
Change in classification of derivative warrants to equity warrants	175	0	175	0
Stock-based compensation	1,872	0	1,872	0
Net loss for the period	(6,976)	0	0	(6,976)
Balance at Mar. 31, 2015	$ 26,251	$ 936	$ 217,996	$ (192,681)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities
Net loss	$ (6,976)	$ (11,109)
Items not affecting cash flows
Depreciation and amortization	1,025	1,141
Stock-based compensation	1,872	2,800
Change in fair value of warrants	0	1,076
Exchange rate loss, net	226	20
Changes in current assets and liabilities
Decrease in other current assets	120	139
Increase (decrease) in payables and accruals	231	(2,560)
Net cash used in operating activities	(3,502)	(8,493)
Cash flows from investing activities
Acquisition of property and equipment	0	(72)
Increase in deposits	(278)	0
Net cash used in investing activities	(278)	(72)
Cash flows from financing activities
Exercise of stock options	0	1,531
Exercise of warrants	0	1,265
Cash provided by financing activities	0	2,796
Effect of exchange rate changes on cash and cash equivalents	(4)	1
Decrease in cash and cash equivalents	(3,784)	(5,768)
Cash and cash equivalents at beginning of period	16,023	33,586
Cash and cash equivalents at end of period	12,239	27,818
Non-cash investing and financing transactions
Non-cash acquisition of cost method investment	0	787
Conversion of derivative warrants into common stock	0	746
Change in classification of derivative warrants to equity warrants	$ 175	$ 0

General

3 Months Ended

Mar. 31, 2015

General [Abstract]

General

Note 1. General

Overview

Vringo, Inc., together with its consolidated subsidiaries (“Vringo” or the “Company”), is engaged in the development and monetization of intellectual property worldwide. The Company's intellectual property portfolio consists of over 600 patents and patent applications covering telecom infrastructure, internet search and mobile technologies. The Company’s patents and patent applications have been developed internally or acquired from third parties. In potential acquisitions, the Company seeks to purchase all of, or interests in, technology and intellectual property in exchange for cash, the Company’s securities and/or interests in the monetization of those assets. Revenue from this aspect of Vringo’s business can be generated through licensing and litigation efforts.

Prior to December 31, 2013, the Company operated a global platform for the distribution of mobile social applications and the services that it developed. On February 18, 2014, the Company executed the sale of its mobile social application business to InfoMedia Services Limited (“InfoMedia”), receiving an 8.25% ownership interest in InfoMedia as consideration. As part of the transaction, the Company has the opportunity to license certain intellectual property assets and support InfoMedia to identify and protect new intellectual property.

Infrastructure Patents

The Company’s infrastructure patents are primarily made up of a patent portfolio purchased from Nokia Corporation (“Nokia”) in 2012. This patent portfolio is comprised of 124 patent families with counterparts in certain jurisdictions world-wide and encompass technologies relating to telecom infrastructure, including communication management, data and signal transmission, mobility management, radio resources management and services. Declarations were filed by Nokia indicating that 31 of the 124 patent families acquired may be essential to wireless communications standards. The Company also owns other acquired infrastructure patent portfolios and has filed over 60 internally developed patent applications. As one of the means of realizing the value of the patents on telecom infrastructure, the Company has filed a number of suits against ZTE Corporation (“ZTE”), ASUSTeK Computer Inc. (“ASUS”), and certain of their subsidiaries, affiliates and other companies in the United States, European jurisdictions, India, Australia, Brazil, and Malaysia alleging infringement of certain U.S., European, Indian, Australian, Brazilian, and Malaysian patents.

To date, in connection with the suits filed against ZTE, Vringo patents have been found to be infringed in the United Kingdom (“UK”) and Germany, and preliminary relief has been granted in India, Brazil, Romania, and the Netherlands. Separately, Vringo has entered into settlement and license agreements with ADT, Tyco, D-Link, and Belkin.

Search Patents

On September 15, 2011, the Company’s wholly-owned subsidiary, I/P Engine, Inc. (“I/P Engine”), initiated litigation against AOL Inc., Google, Inc., IAC Search & Media, Inc., Gannett Company, Inc., and Target Corporation (collectively, the “Defendants”) for infringement of claims of certain of its owned patents. Trial commenced during 2012, and, on November 6, 2012, the jury ruled in favor of I/P Engine and against the Defendants. After upholding the validity of the patents-in-suit, and determining that the asserted claims of the patents were infringed by the Defendants, the jury found that reasonable royalty damages should be based on a “running royalty,” and that the running royalty rate should be 3.5%. The jury also awarded I/P Engine a total of approximately $30.5 million. In January 2014, the United States District Court, Eastern District of Virginia (the “District Court”) ordered that I/P Engine recover an additional sum of $17.32 million from the Defendants for supplemental damages and prejudgment interest. Further, the District Court ruled that the appropriate ongoing royalty rate for Defendants' continued infringement of the patents-in-suit is a rate of 6.5% of the 20.9% royalty base previously set by the District Court. These rulings were appealed by the Defendants and the oral argument was heard before the United States Court of Appeals for the Federal Circuit (“Federal Circuit”) on May 6, 2014.

On August 15, 2014, the Federal Circuit reversed the judgment of the District Court by holding that the claims of the patents-in-suit asserted by the Company against the Defendants are invalid for obviousness. The Company filed a petition with the Federal Circuit on October 15, 2014 seeking en banc review of the decision. On October 20, 2014, the Federal Circuit invited the defendants/appellants to respond to the petition. On December 15, 2014, the Federal Circuit denied I/P Engine's petition for rehearing of the case en banc and consequently, the Company announced that I/P Engine will seek review by the Supreme Court of the United States (“Supreme Court”) of the Federal Circuit’s decision. I/P Engine intends to file a petition for a writ of certiorari with the Supreme Court, which requests review of the Federal Circuit’s decision, by the May 14, 2015 deadline.

Financial conditions

As of March 31, 2015, the Company had a cash balance of $12,239. The Company’s average monthly cash spent in operations for the three-month periods ended March 31, 2015 and 2014 was approximately $1,167 and $2,831, respectively. In addition, the Company paid approximately $2,682 in deposits with courts beginning in the second quarter of 2014 to date, related to proceedings in Germany, Brazil, Romania, and Malaysia, which are included in Deposits with courts in the consolidated balance sheets as of March 31, 2015 and December 31, 2014. Deposits with courts paid in local currency are remeasured on the balance sheet date based on the related foreign exchange rate on that date. As of March 31, 2015, Deposits with courts totaled $2,070. As of March 31, 2015 and December 31, 2014, the Company’s total stockholders' equity was $26,251 and $31,180, respectively. The decrease in stockholders’ equity since December 31, 2014 is mainly due to the operating loss during the quarter ended March 31, 2015.

On May 4, 2015 (the “Closing Date”), the Company entered into a securities purchase agreement with certain institutional investors in a registered direct offering of $12,500 of Senior Secured Convertible Notes (the “Notes”) and certain warrants to purchase shares of the Company’s common stock. On the Closing Date, the Company issued the Notes, which are convertible into shares of the Company’s common stock at $1.00 per share, bear 8% interest and mature in 21 months from the date of issuance, unless earlier converted. In addition, the Company issued approximately 5.4 million warrants to purchase shares of the Company’s common stock, which are exercisable at $1.00 per share and are exercisable for a period of five years. In connection with the issuance of the Notes and warrants, the Company received net cash proceeds of $12,425 on May 5, 2015. The Company’s obligations under the outstanding Notes are secured by a first priority perfected security interest in substantially all of the Company’s U.S. assets. In addition, stock of certain subsidiaries of the Company has been pledged. The outstanding notes contain customary events of default, as well as covenants which include restrictions on the assumption of new debt by the Company.

The principal amount of the outstanding Notes will be repaid monthly, and the Company may make such payments and related interest payments in cash or, subject to certain conditions, in registered shares of the Company’s common stock, at its election. If the Company chooses to repay the Notes in shares of its common stock, the shares will be issued at a 15% discount, based on the then-current market price data of the Company’s common stock. The Company may also repay the Notes in advance of the maturity schedule subject to early repayment penalties. This transaction will be accounted for in the second quarter of fiscal 2015. As a result of this transaction, the Company’s cash balance as of May 5, 2015 is approximately $22,900.

The Company’s operating plans include efforts to increase revenue through the licensing of its intellectual property, strategic partnerships, and litigation, when required, which may be resolved through a settlement or collection. Disputes regarding the assertion of patents and other intellectual property rights are highly complex and technical. The majority of the Company’s expenditures consist of costs related to the Company’s litigation campaigns. In the cases against ZTE and ASUS, the Company incurred costs during the first quarter of 2015 related to the preparation and filing of briefs and other court documents, as well as case preparation and management. A large percentage of these costs were incurred in the UK and the U.S. In civil law jurisdictions, such as Germany, France, Spain, and others, the majority of costs are incurred in the early stages of litigation. With respect to the Company’s litigation in such countries, the respective campaigns are currently in the later stages and therefore the Company has already incurred the large majority of the related anticipated costs. As such, based on the Company’s plans, costs in these jurisdictions are projected to be lower in the remainder of 2015 and other future periods.

Despite the Company’s plans, its legal proceedings may continue for several years and may require significant expenditures for legal fees and other expenses. Further, should the Company be deemed the losing party in certain of its litigations, it may be liable for some or all of its opponents’ legal fees. In addition, in connection with litigation, the Company has made several affirmative financial guarantees to courts around the world, and might face the need to make additional guarantees in the future.

In addition, the Company’s plans to continue to expand its planned operations through acquisitions and monetization of additional patents, other intellectual property or operating businesses may be time consuming, complex and costly to consummate. The Company may utilize many different transaction structures in its acquisitions and the terms of such acquisition agreements tend to be heavily negotiated. The Company’s future ability to raise capital, if necessary, may be limited. Even if the Company is able to acquire particular patents or other intellectual property assets, there is no guarantee that it will generate sufficient revenue related to those assets to offset the acquisition costs. Therefore, no assurance can be given at this time as to whether the Company will be able to achieve its objectives or whether it will have the sources of liquidity for follow through with its operating plans.

In addition, until the Company generates sufficient revenue, the Company may need to raise additional funds, which may be achieved through the issuance of additional equity or debt, or through loans from financial institutions. There can be no assurance, however, that any such opportunities will materialize. The Company may also be able to raise additional funds through the exercise of its outstanding warrants and options, however, substantially all of such outstanding equity instruments are currently “out of the money”.

As a result of the events and circumstances described above, including the cash proceeds received in connection with the May 2015 financing transaction and the Company’s operating plans, which include paying the principal and interest related to the Notes in shares of the Company’s common stock, the Company believes that it currently has sufficient cash to continue its current operations for at least the next twelve months.

Accounting and Reporting Policies

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Accounting and Reporting Policies

Note 2. Accounting and Reporting Policies

(a) Basis of presentation and principles of consolidation

The accompanying interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X, and should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the three month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the entire fiscal year or for any other interim period. All significant intercompany balances and transactions have been eliminated in consolidation.

(b) Use of estimates

The preparation of accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Actual results may differ from such estimates. Significant items subject to such estimates and assumptions include the Company’s intangibles assets, the useful lives of the Company’s intangible assets, the valuation of the Company’s derivative warrants, the valuation of stock-based compensation, deferred tax assets and liabilities, income tax uncertainties and other contingencies.

(c) Translation into U.S. dollars

The Company conducts certain transactions in foreign currencies, which are recorded at the exchange rate as of the transaction date. All exchange gains and losses occurring from the remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected as non-operating income or expense in the consolidated statements of operations.

(d) Cash and cash equivalents

The Company invests its cash in money market funds with financial institutions. The Company has established guidelines relating to diversification and maturities of its investments in order to minimize credit risk and maintain high liquidity of funds. All highly liquid investments with original maturities of three months or less at acquisition date are considered cash equivalents.

(e) Derivative instruments

The Company recognizes all derivative instruments as either assets or liabilities in the consolidated balance sheets at their respective fair values. Derivative instruments are revalued at each reporting date, with changes in the fair value of the instruments included in the consolidated statements of operations as non-operating income (expense). As of March 31, 2015, the Company does not have any outstanding derivative instruments.

(f) Intangible assets

Intangible assets include purchased patents which are recorded based on the cost to acquire them. These assets are amortized over their remaining estimated useful lives, which are periodically evaluated for reasonableness. The Company’s intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In assessing the recoverability of the Company's intangible assets, the Company must make estimates and assumptions regarding future cash flows and other factors to determine the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such charge. Fair value estimates are made at a specific point in time, based on relevant information. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. If these estimates or material related assumptions change in the future, the Company may be required to record impairment charges related to its intangible assets.

(g) Revenue recognition

Revenue from patent licensing and enforcement is recognized if collectability is reasonably assured, persuasive evidence of an arrangement exists, the sales price is fixed or determinable and delivery of the service has been rendered. The Company uses management's best estimate of selling price for individual elements in multiple-element arrangements, where vendor specific evidence or third party evidence of selling price is not available.

Currently, the Company’s revenue arrangements provide for the payment of contractually determined fees and other consideration for the grant of certain intellectual property rights related to the Company’s patents. These rights typically include some combination of the following: (i) the grant of a non-exclusive, retroactive and future license to manufacture and/or sell products covered by patents, (ii) the release of the licensee from certain claims, and (iii) the dismissal of any pending litigation. The intellectual property rights granted typically extend until the expiration of the related patents. Pursuant to the terms of these agreements, the Company has no further obligation with respect to the grant of the non-exclusive retroactive and future licenses, covenants-not-to-sue, releases, and other deliverables, including no express or implied obligation on the Company’s part to maintain or upgrade the related technology, or provide future support or services. Generally, the agreements provide for the grant of the licenses, covenants-not-to-sue, releases, and other significant deliverables upon execution of the agreement, or upon receipt of the upfront payment. As such, the earnings process is complete and revenue is recognized upon the execution of the agreement, upon receipt of the upfront fee, and when all other revenue recognition criteria have been met.

(h) Operating legal costs

Operating legal costs mainly include expenses incurred in connection with the Company’s patent licensing and enforcement activities, patent-related legal expenses paid to external patent counsel (including contingent legal fees), licensing and enforcement related research, consulting and other expenses paid to third parties, as well as related internal payroll expenses and stock-based compensation. In addition, amounts received by the Company for reimbursements of legal fees in connection with our litigation campaigns are recorded in Operating legal costs as contra-expense.

(i) Stock-based compensation

Stock-based compensation is recognized as an expense in the consolidated statements of operations and such cost is measured at the grant-date fair value of the equity-settled award. The fair value of stock options is estimated at the date of grant using the Black-Scholes-Merton option-pricing model. The expense is recognized on a straight-line basis, over the requisite service period. The Company uses the simplified method to estimate the expected term of options due to insufficient history and high turnover in the past. Since the Company lacks sufficient history, expected volatility is estimated based on a weighted average historical volatility of the Company and comparable entities with publicly traded shares. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve at the date of grant.

(j) Recently Issued Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which impacts virtually all aspects of an entity's revenue recognition. The core principle of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance is effective for annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of the adoption on its consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Topic 205): Going Concern. The new standard provides guidance around 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. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 and early adoption is permitted. The Company is currently evaluating the impact of the adoption on its consolidated financial statements.

(k) Reclassification

Certain balances have been reclassified to conform to presentation requirements.

Intangible Assets

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 3. Intangible Assets

The following table provides information regarding the Company’s intangible assets, which consist of its patents:

					Weighted average
	March 31, 2015		December 31, 2014		amortization period (years)
Patents		28,213		28,213		8.9
Less: accumulated amortization and impairment		(11,392)		(10,588)
	$	16,821	$	17,625

The Company’s patents consist of three major patent portfolios, which were acquired from third parties, as well as a number of internally developed patents. The costs related to internally developed patents are expensed as incurred.

In August 2012, the Company purchased a portfolio from Nokia consisting of various patents and patent applications as described in Note 1. The total consideration paid for the portfolio was $22,000 and the Company capitalized certain costs related to the acquisition of patents in the total amount of $548. Under the terms of the purchase agreement, to the extent that the gross revenue generated by such portfolio exceeds $22,000, the Company is obligated to pay a royalty of 35% of such excess. The Company has not recorded any amounts in respect of this contingent consideration, as both the amounts of future potential revenue, if any, and the timing of such revenue cannot be reasonably estimated.

The Company’s patents are amortized over their expected useful lives (i.e., through the expiration date of the patent). During the three-month periods ended March 31, 2015 and 2014, the Company recorded amortization expense of $804 and $957, respectively, related to its patents.

During the third quarter of 2014, the Company determined that there were impairment indicators related to certain of its patents. A significant factor that was considered when making this determination included the announcement of the Federal Circuit’s decision on August 15, 2014 described in Note 1. The Company concluded that this factor was deemed a “triggering” event requiring that the related patent assets be tested for impairment during the third quarter of 2014. In performing this impairment test, the Company determined that the patent portfolio containing the patents-in-suit in I/P Engine's litigation against AOL Inc., Google Inc. et al, which represents an asset group, was subject to impairment testing. In the first step of the impairment test, the Company utilized its projections of future undiscounted cash flows based on the Company’s existing plans for the patents. As a result, it was determined that the Company’s projections of future undiscounted cash flows were less than the carrying value of the asset group. Accordingly, the Company performed the second step of the impairment test to measure the potential impairment by calculating the asset group’s fair value. This resulted in an impairment of $1,355 during the third quarter of 2014, related to the asset group, which represents the difference between the fair value and the carrying value of the asset group. There were no impairment charges related to the Company’s patents during the three-month periods ended March 31, 2015 and 2014.

Net Loss per Common Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share, Basic and Diluted [Abstract]

Net Loss per Common Share

Note 4. Net Loss per Common Share

Basic net loss per share is computed by dividing the net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing the net loss for the period by the weighted-average number of shares of common stock plus dilutive potential common stock considered outstanding during the period. However, as the Company generated net losses in all periods presented, some potentially dilutive securities that relate to the continuing operations, including certain warrants and stock options, were not reflected in diluted net loss per share because the impact of such instruments was anti-dilutive. The table below presents the computation of basic and diluted net losses per common share:

	Three months ended
	March 31,
	2015		2014
Basic Numerator:
Loss from continuing operations attributable to shares of common stock	$	(6,976)	$	(10,900)
Loss from discontinued operations attributable to shares of common stock	$	-	$	(209)
Net loss attributable to shares of common stock	$	(6,976)	$	(11,109)
Basic Denominator:

Weighted average number of shares of common stock outstanding during the period		93,404,895		85,428,830
Weighted average number of penny stock options		-		28,840
Basic common stock shares outstanding		93,404,895		85,457,670
Basic loss per common stock share from continuing operations	$	(0.07)	$	(0.13)
Basic loss per common stock share from discontinued operations	$	(0.00)	$	(0.00)
Basic net loss per common stock share	$	(0.07)	$	(0.13)

Diluted Numerator:
Net loss from continuing operations attributable to shares of common stock	$	(6,976)	$	(10,900)
Increase in net loss attributable to derivative warrants	$	-	$	-

Diluted net loss from continuing operations attributable to shares of common stock	$	(6,976)	$	(10,900)

Diluted net loss from discontinued operations attributable to shares of common stock	$	-	$	(209)
Diluted net loss attributable to shares of common stock	$	(6,976)	$	(11,109)

Diluted Denominator:
Basic common stock shares outstanding		93,404,895		85,457,670
Shares assumed issued upon exercise of derivative warrants during the period		-		-
Diluted common stock shares outstanding		93,404,895		85,457,670
Diluted loss per common stock share from continuing operations	$	(0.07)	$	(0.13)
Diluted loss per common stock share from discontinued operations	$	(0.00)	$	(0.00)
Diluted net loss per common stock share	$	(0.07)	$	(0.13)

Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact:
Both vested and unvested options at $0.96-$5.50 exercise price, to purchase an equal number of shares of common stock of the Company		9,202,345		10,331,409

Unvested RSU to issue an equal number of shares of common stock of the Company		676,564		1,890,738
Common stock shares granted, but not yet vested		-		14,331

Warrants to purchase an equal number of shares of common stock of the Company		17,402,654		17,708,713

Total number of potentially dilutive instruments, excluded from the calculation of net loss per share		27,281,563		29,945,191

Discontinued Operations

3 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Assets Held For Sale

Note 5. Discontinued Operations

On February 18, 2014, the Company executed the sale of its mobile social application business to InfoMedia. As consideration for the assets and agreements related to the Company’s mobile social application business, the Company received 18 Class B shares of InfoMedia, which represent an 8.25% ownership interest in InfoMedia. Additionally, the Company’s Chief Executive Officer was appointed as a full voting member on InfoMedia’s board of directors and the Company received a number of customary protective rights. The InfoMedia Class B shares are accounted for as a cost-method investment at the carrying amount of $787 and are included in Other assets in the consolidated balance sheets as of March 31, 2015 and December 31, 2014. During the quarter ended March 31, 2015, there were no events or changes in circumstances that would indicate that the carrying amount of this investment may no longer be recoverable.

In connection with the sale of its mobile social application business, the Company is required to present the results of the Company’s mobile social application business as discontinued operations in the consolidated statements of operations. The following table represents the components of operating results from discontinued operations for the three months ended March 31, 2014, as presented in the consolidated statements of operations:

Revenue	$	37
Operating expenses		(266)
Operating loss		(229)

Non-operating income		20
Loss before taxes on income		(209)
Income tax expense		-
Loss from discontinued operations	$	(209)

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

+ Details

Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 6. Fair Value Measurements

The Company measures fair value in accordance with FASB Accounting Standard Codification (“ASC”) 820-10, Fair Value Measurements and Disclosures. FASB ASC 820-10 clarifies that fair value is an exit price, representing the amount that would be received by selling an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, FASB ASC 820-10 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

Level 2: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The following table presents the placement in the fair value hierarchy of liabilities measured at fair value on a recurring basis as of December 31, 2014:

Fair value measurement at reporting date using

Quoted prices in

active markets

Significant other

Significant

for identical

observable

unobservable

Derivative warrant liabilities

Balance

assets (Level 1)

inputs (Level 2)

inputs (Level 3)

As of December 31, 2014

175

The Company measures its derivative liabilities at fair value. The Conversion Warrants, the derivative Reload Warrants and the derivative Series 1 Warrants (as defined in Note 8) were classified within Level 3 because they were valued using the Black-Scholes-Merton and the Monte-Carlo models (as these warrants included down-round protection clauses), which utilize significant inputs that are unobservable in the market. On January 1, 2015, the down-round protection clauses associated with all of the Company’s outstanding derivative warrants expired and, as a result, these warrants no longer meet the criteria for liability classification. As such, the related liabilities were revalued as of January 1, 2015 and the balance of $175 was reclassified to equity as of March 31, 2015.

In addition to the above, the Company’s financial instruments as of March 31, 2015 and December 31, 2014 consisted of cash, cash equivalents, receivables, accounts payable and deposits. The carrying amounts of all the aforementioned financial instruments approximate fair value.

Valuation processes for Level 3 Fair Value Measurements

Fair value measurement of the derivative warrant liabilities related to the Conversion Warrants, Reload Warrants and Series 1 Warrants (as defined in Note 8) fall within Level 3 of the fair value hierarchy. The fair value measurements are evaluated by management to ensure that changes are consistent with expectations of management based upon the sensitivity and nature of the inputs.

December 31, 2014:

Description	Valuation technique	Unobservable inputs	Range
Conversion Warrants, derivative Reload Warrants and derivative Series 1 Warrants	Black-Scholes-Merton and the Monte-Carlo models	Volatility		56.55% - 77.06%
		Risk free interest rate		0.13% - 0.87%
		Expected term, in years		0.48 - 2.55
		Dividend yield		0%

Sensitivity of Level 3 measurements to changes in significant unobservable inputs

The inputs to estimate the fair value of the Company’s derivative warrant liabilities were the current market price of the Company’s common stock, the exercise price of the warrant, its remaining expected term, the volatility of the Company’s common stock price, the Company’s assumptions regarding the probability and timing of a down-round protection triggering event and the risk-free interest rate. Significant changes in any of those inputs in isolation can result in a significant change in the fair value measurement. Generally, an increase in the market price of the Company’s shares of common stock, an increase in the volatility of the Company’s shares of common stock, an increase in the remaining term of the warrant, or an increase of a probability of a down-round triggering event would each result in a directionally similar change in the estimated fair value of the Company’s warrants. Such changes would increase the associated liability while decreases in these assumptions would decrease the associated liability. An increase in the risk-free interest rate or a decrease in the positive differential between the warrant’s exercise price and the market price of the Company’s shares of common stock would result in a decrease in the estimated fair value measurement of the warrants and thus a decrease in the associated liability. The Company has not, and does not plan to, declare dividends on its common stock, and as such, there is no change in the estimated fair value of the warrants due to the dividend assumption.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Stock-based Compensation

3 Months Ended

Mar. 31, 2015

Share-based Compensation [Abstract]

Stock-based Compensation

Note 7. Stock-based Compensation

The Company has a stock-based compensation plan available to grant stock options and RSU to the Company’s directors, employees and consultants. Under the 2012 Employee, Director and Consultant Equity Incentive Plan (the “Plan”), a maximum of 15,600,000 shares of common stock may be awarded. As of March 31, 2015, 4,974,566 shares were available for future grants under the Plan.

The following table illustrates the stock options granted during the three month period ended March 31, 2015:

Fair market

Assumptions used in

No. of

Exercise

value at

Black-Scholes option

Title

Grant date

options

price

grant date

Vesting terms

pricing model

Directors and Employees

January 2015

1,150,000

$0.51 - $0.59

$0.33 - $0.38

Over 1 year for Directors; Over 3 years for Employees

Volatility: 74.9 % - 77.1%
Risk free interest rate: 1.27% - 1.51%
Expected term, in years: 5.31-5.81
Dividend yield: 0.00%

Certain options granted are subject to acceleration of vesting of 75% - 100% (according to the agreement signed with each grantee), upon a subsequent change of control.

The activity related to stock options and RSU during the three month period ended March 31, 2015 consisted of the following:

	RSU				Options
			Weighted average								Weighted average
	No. of		grant date fair		No. of		Weighted average		Exercise price		grant date fair
	RSU		value		options		exercise price		range		value
Outstanding at January 1, 2015		1,196,357	$	3.64		8,052,345	$	3.36	$	0.96 - $5.50	$	2.24
Granted		-		-		1,150,000	$	0.54	$	0.51 - $0.59	$	0.35
Vested/Exercised		(166,147)	$	3.62		-		-		-		-
Forfeited		(353,646)	$	3.63		-		-		-		-
Expired		-		-		-		-		-		-
Outstanding at March 31, 2015		676,564	$	3.64		9,202,345	$	3.01	$	0.51 - $5.50	$	2.00
Exercisable at March 31, 2015		-		-		6,876,927	$	3.29	$	0.51 - $5.50

The Company did not recognize tax benefits related to its stock-based compensation as there is a full valuation allowance recorded.

Warrants

3 Months Ended

Mar. 31, 2015

Warrants and Rights Note Disclosure [Abstract]

Warrants

Note 8. Warrants

The following table summarizes information about warrant activity during the three month period ended March 31, 2015:

			Weighted average		Exercise
	No. of warrants		exercise price		price range
Outstanding at January 1, 2015		17,402,654	$	4.26	$	0.94 - $5.06
Granted		-	$	-	$	-
Exercised		-	$	-	$	-
Outstanding at March 31, 2015		17,402,654	$	4.26	$	0.94 - $5.06

The Company’s outstanding warrants as of March 31, 2015 consist of the following:

					Remaining
	No. outstanding*		Exercise price		contractual life	Expiration Date
Series 1 Warrants		1,490,250	$	1.76	2.30 years	July 19, 2017
Series 2 Warrants		1,943,523	$	1.76	2.30 years	July 19, 2017
Conversion Warrants		14,492	$	0.94	0.22 years	June 21, 2015
Reload Warrants		758,023	$	1.76	1.86 years	February 6, 2017
IPO Warrants		4,784,000	$	5.06	0.22 years	June 21, 2015
October 2012 Warrants		3,000,000	$	5.06	0.22 years	June 21, 2015
June 2014 Warrants		5,412,366	$	5.06	0.22 years	June 21, 2015
Outstanding as of March 31, 2015		17,402,654

* All outstanding warrants as of March 31, 2015 are classified as equity.

Revenue from Settlements and Licensing Agreements

3 Months Ended

Mar. 31, 2015

Revenue from Settlement and Licensing Agreement [Abstract]

Revenue from Settlement and Licensing Agreement

Note 9. Revenue from Settlements and Licensing Agreements

During the first quarter of 2015, the Company entered into a confidential agreement with D-Link, effective March 10, 2015, that resolved all litigation pending between the parties.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 10. Commitments and Contingencies

Litigation and legal proceedings

The Company retains the services of professional service providers, including law firms that specialize in intellectual property licensing, enforcement and patent law. These service providers are often retained on an hourly, monthly, project, contingent or a blended fee basis. In contingency fee arrangements, a portion of the legal fee is based on predetermined milestones or the Company’s actual collection of funds. The Company accrues contingent fees when it is probable that the milestones will be achieved and the fees can be reasonably estimated.

The Company’s subsidiaries have filed patent infringement lawsuits against the subsidiaries of ZTE and its subsidiaries in the UK, France, Germany, Netherlands, Australia, India, Brazil, Malaysia, and Romania, and against ASUS and its subsidiaries in Germany, Spain and India. In such jurisdictions, an unsuccessful plaintiff may be required to pay a portion of the other party’s legal fees. In addition, the Company may be required to grant additional written commitments, as necessary, in connection with its commenced proceedings against ZTE and its subsidiaries in various countries. It should be noted, however, that if the Company were successful on any court applications or the entirety of any litigation, the defendants may be responsible for a substantial portion of the Company’s legal fees.

Pursuant to negotiation with ZTE’s UK subsidiary, the Company made two written commitments, in November 2012 and May 2013, representing payment should a liability by Vringo Infrastructure arise as a result of the two cases it has filed. Each of the cases filed include three patents which the Company has alleged are infringed by ZTE. The defendants estimated the total possible liability to be no more than approximately $2,900 for each case.

In March 2014, the Company withdrew one of the patents included in the first case against ZTE’s UK subsidiary. ZTE withdrew its invalidity counterclaims.

In November 2014, with respect to another patent included in the first case, the Court found that Vringo’s patent is valid as amended and infringed by ZTE. ZTE did not appeal the decision, and the decision is final.

On February 17, 2015, Vringo withdrew its infringement claims against ZTE on three of the four remaining European Patents in suit in the second litigation in the UK. ZTE subsequently withdrew its invalidity counterclaims in respect of these three patents.

On April 10, 2015, Vringo and ZTE reached an agreement in relation to the remaining European Patent in issue (EP (UK) 1 330 933) in the second patent case in the UK in which the parties will withdraw their respective claims and counterclaims.

The Company recorded its best estimate of its liability in respect of ZTE’s legal fees, which is presented in Other liabilities included in the consolidated balance sheets as of March 31, 2015 and December 31, 2014.

On September 13, 2013 and January 28, 2014, Vringo Germany filed two suits in the Regional Court of Düsseldorf, alleging infringement of two European patents by ZTE’s German subsidiary. Those cases were heard by the Court on November 27, 2014. On January 22, 2015, the Court issued its judgment, finding that ZTE does not infringe either patent. On February 17, 2015, Vringo filed notices of appeal for each patent. The appeal process is anticipated to take at least one year.

On May 5, 2014, the Company deposited a bond of €1,000 (approximately $1,085 as of March 31, 2015) to enforce an injunction against ZTE in Germany. Should the injunction be successfully overturned on appeal, the Company may be obligated to compensate ZTE for any damages allegedly suffered as a result of the enforcement of the injunction, which would be ascertained through separate damages proceedings. Should the judgment which granted the injunction be affirmed on appeal, however, the amount paid as security would be returnable to the Company in full. The Company has assessed the likelihood of the injunction being successfully overturned on appeal as remote.

In Brazil, as a condition of the relief requested, the Company deposited R$2,020 on April 17, 2014 (approximately $621 as of March 31, 2015), as a surety against the truth of allegations contained in the complaint. This deposit is returnable at the end of the litigation unless ZTE is the prevailing party and proves that actual material damages were suffered while the requested relief was in place. The Company has assessed the likelihood of ZTE doing so as remote.

In Romania, Vringo Infrastructure filed a patent infringement lawsuit against ZTE in the Bucharest Tribunal Civil Section on June 23, 2014 and the Court granted an ex-parte preliminary injunction, ordering ZTE to cease any importation, exportation, introduction on the market, offer for sale, storage, sale, trade, distribution, promotion, or any other business activity regarding the infringing product. The Company deposited a bond of €243 on February 11, 2015 (approximately $264 as of March 31, 2015) with the Court in order to continue to enforce the injunction.

The bond deposits in Germany and Romania and the surety deposit in Brazil are included in Deposits with courts in the consolidated balance sheets as of March 31, 2015 and December 31, 2014.

Leases

In July 2012, the Company signed a rental agreement for its corporate executive office in New York for an annual rental fee of approximately $137 (subject to certain adjustments) which was to expire in September 2015. In January 2014, the Company entered into an amended lease agreement with the landlord for a different office space within the same building. The initial annual rental fee for this new office is approximately $403 (subject to certain future escalations and adjustments) beginning on August 1, 2014, which was the date when the new office space was available. This lease will expire in October 2019. Rent expense for operating leases for the three month periods ended March 31, 2015 and 2014 were $91 and $112, respectively.

Risks and Uncertainties

3 Months Ended

Mar. 31, 2015

Risks and Uncertainties [Abstract]

Risks and Uncertainties

Note 11. Risks and Uncertainties

(a)

New legislation, regulations or rulings that impact the patent enforcement process or the rights of patent holders could negatively affect the Company’s current business model. For example, limitations on the ability to bring patent enforcement claims, limitations on potential liability for patent infringement, lower evidentiary standards for invalidating patents, increases in the cost to resolve patent disputes and other similar developments could negatively affect the Company’s ability to assert its patent or other intellectual property rights.

(b)

The patents owned by the Company are presumed to be valid and enforceable. As part of the Company’s ongoing legal proceedings, the validity and/or enforceability of its patents is often challenged in a court or an administrative proceeding. On August 15, 2014, the Federal Circuit reversed a judgment of the United States District Court for the Eastern District of Virginia by holding that the asserted claims of the patents-in-suit in I/P Engine's litigation against AOL Inc., Google Inc. et al. are invalid for obviousness. Additionally, during the second half of 2014, the Patent Re-Examination Board of the State Intellectual Property Office of the People’s Republic of China held that nine of the Company's Chinese patents, and partial claims on two of the Company’s other Chinese patents, are invalid. The Company is appealing these decisions. The Company’s other patents have not been declared to be invalid or unenforceable to date.

	(c)	Financial instruments which potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company maintains its cash and cash equivalents with various major financial institutions. These major financial institutions are located in the United States and the Company’s policy is designed to limit exposure to any one institution.

	(d)	A portion of the Company’s expenses are denominated in foreign currencies. If the value of the U.S. dollar weakens against the value of these currencies, there will be a negative impact on the Company’s operating costs. In addition, the Company is subject to the risk of exchange rate fluctuations to the extent it holds monetary assets and liabilities in these currencies.

	(e)	The Company may choose to raise additional funds in connection with any potential acquisition of patent portfolios or other intellectual property assets or operating businesses. In addition, the Company may also need additional funds to respond to business opportunities and challenges, including its ongoing operating expenses, protection of its assets, development of new lines of business and enhancement of its operating infrastructure. While the Company may need to seek additional funding, it may not be able to obtain financing on acceptable terms, or at all. If the Company is unable to obtain additional funding on a timely basis, it may be required to curtail or terminate some of its business plans.

Accounting and Reporting Policies (Policies)

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Basis of presentation and principles of consolidation

(a) Basis of presentation and principles of consolidation

Use of estimates

(b) Use of estimates

Translation into U.S. dollars

(c) Translation into U.S. dollars

Cash and cash equivalents

(d) Cash and cash equivalents

Derivative instruments

(e) Derivative instruments

Intangible assets

(f) Intangible assets

Revenue recognition

(g) Revenue recognition

Operating legal costs

(h) Operating legal costs

Stock-based compensation

(i) Stock-based compensation

Recently Issued Accounting Pronouncements

(j) Recently Issued Accounting Pronouncements

Reclassification

(k) Reclassification

Certain balances have been reclassified to conform to presentation requirements.

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Components of Finite-Lived Intangible Assets

The following table provides information regarding the Company’s intangible assets, which consist of its patents:

					Weighted average
	March 31, 2015		December 31, 2014		amortization period (years)
Patents		28,213		28,213		8.9
Less: accumulated amortization and impairment		(11,392)		(10,588)
	$	16,821	$	17,625

Net Loss per Common Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share, Basic and Diluted [Abstract]

Computation of Net Loss per Common Share

The table below presents the computation of basic and diluted net losses per common share:

	Three months ended
	March 31,
	2015		2014
Basic Numerator:
Loss from continuing operations attributable to shares of common stock	$	(6,976)	$	(10,900)
Loss from discontinued operations attributable to shares of common stock	$	-	$	(209)
Net loss attributable to shares of common stock	$	(6,976)	$	(11,109)
Basic Denominator:

Weighted average number of shares of common stock outstanding during the period		93,404,895		85,428,830
Weighted average number of penny stock options		-		28,840
Basic common stock shares outstanding		93,404,895		85,457,670
Basic loss per common stock share from continuing operations	$	(0.07)	$	(0.13)
Basic loss per common stock share from discontinued operations	$	(0.00)	$	(0.00)
Basic net loss per common stock share	$	(0.07)	$	(0.13)

Diluted Numerator:
Net loss from continuing operations attributable to shares of common stock	$	(6,976)	$	(10,900)
Increase in net loss attributable to derivative warrants	$	-	$	-

Diluted net loss from continuing operations attributable to shares of common stock	$	(6,976)	$	(10,900)

Diluted net loss from discontinued operations attributable to shares of common stock	$	-	$	(209)
Diluted net loss attributable to shares of common stock	$	(6,976)	$	(11,109)

Diluted Denominator:
Basic common stock shares outstanding		93,404,895		85,457,670
Shares assumed issued upon exercise of derivative warrants during the period		-		-
Diluted common stock shares outstanding		93,404,895		85,457,670
Diluted loss per common stock share from continuing operations	$	(0.07)	$	(0.13)
Diluted loss per common stock share from discontinued operations	$	(0.00)	$	(0.00)
Diluted net loss per common stock share	$	(0.07)	$	(0.13)

Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact:
Both vested and unvested options at $0.96-$5.50 exercise price, to purchase an equal number of shares of common stock of the Company		9,202,345		10,331,409

Unvested RSU to issue an equal number of shares of common stock of the Company		676,564		1,890,738
Common stock shares granted, but not yet vested		-		14,331

Warrants to purchase an equal number of shares of common stock of the Company		17,402,654		17,708,713

Total number of potentially dilutive instruments, excluded from the calculation of net loss per share		27,281,563		29,945,191

Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

The following table represents the components of operating results from discontinued operations for the three months ended March 31, 2014, as presented in the consolidated statements of operations:

Revenue	$	37
Operating expenses		(266)
Operating loss		(229)

Non-operating income		20
Loss before taxes on income		(209)
Income tax expense		-
Loss from discontinued operations	$	(209)

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References + Details

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Measurements [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the placement in the fair value hierarchy of liabilities measured at fair value on a recurring basis as of December 31, 2014:

Fair value measurement at reporting date using

Quoted prices in

active markets

Significant other

Significant

for identical

observable

unobservable

Derivative warrant liabilities

Balance

assets (Level 1)

inputs (Level 2)

inputs (Level 3)

As of December 31, 2014

175

Fair Value Measurements Based Upon Sensitivity and Nature of Inputs

The fair value measurements are evaluated by management to ensure that changes are consistent with expectations of management based upon the sensitivity and nature of the inputs.

December 31, 2014:

Description	Valuation technique	Unobservable inputs	Range
Conversion Warrants, derivative Reload Warrants and derivative Series 1 Warrants	Black-Scholes-Merton and the Monte-Carlo models	Volatility		56.55% - 77.06%
		Risk free interest rate		0.13% - 0.87%
		Expected term, in years		0.48 - 2.55
		Dividend yield		0%

Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2015

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock Options and Restricted Stock Units Activity

The activity related to stock options and RSU during the three month period ended March 31, 2015 consisted of the following:

	RSU				Options
			Weighted average								Weighted average
	No. of		grant date fair		No. of		Weighted average		Exercise price		grant date fair
	RSU		value		options		exercise price		range		value
Outstanding at January 1, 2015		1,196,357	$	3.64		8,052,345	$	3.36	$	0.96 - $5.50	$	2.24
Granted		-		-		1,150,000	$	0.54	$	0.51 - $0.59	$	0.35
Vested/Exercised		(166,147)	$	3.62		-		-		-		-
Forfeited		(353,646)	$	3.63		-		-		-		-
Expired		-		-		-		-		-		-
Outstanding at March 31, 2015		676,564	$	3.64		9,202,345	$	3.01	$	0.51 - $5.50	$	2.00
Exercisable at March 31, 2015		-		-		6,876,927	$	3.29	$	0.51 - $5.50

Stock Option [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Options Granted

The following table illustrates the stock options granted during the three month period ended March 31, 2015:

Fair market

Assumptions used in

No. of

Exercise

value at

Black-Scholes option

Title

Grant date

options

price

grant date

Vesting terms

pricing model

Directors and Employees

January 2015

1,150,000

$0.51 - $0.59

$0.33 - $0.38

Over 1 year for Directors; Over 3 years for Employees

Volatility: 74.9 % - 77.1%
Risk free interest rate: 1.27% - 1.51%
Expected term, in years: 5.31-5.81
Dividend yield: 0.00%

Warrants (Tables)

3 Months Ended

Mar. 31, 2015

Warrants and Rights Note Disclosure [Abstract]

Schedule Of Changes In Warrants Activity

The following table summarizes information about warrant activity during the three month period ended March 31, 2015:

			Weighted average		Exercise
	No. of warrants		exercise price		price range
Outstanding at January 1, 2015		17,402,654	$	4.26	$	0.94 - $5.06
Granted		-	$	-	$	-
Exercised		-	$	-	$	-
Outstanding at March 31, 2015		17,402,654	$	4.26	$	0.94 - $5.06

Schedule Of Warrants Outstanding

The Company’s outstanding warrants as of March 31, 2015 consist of the following:

					Remaining
	No. outstanding*		Exercise price		contractual life	Expiration Date
Series 1 Warrants		1,490,250	$	1.76	2.30 years	July 19, 2017
Series 2 Warrants		1,943,523	$	1.76	2.30 years	July 19, 2017
Conversion Warrants		14,492	$	0.94	0.22 years	June 21, 2015
Reload Warrants		758,023	$	1.76	1.86 years	February 6, 2017
IPO Warrants		4,784,000	$	5.06	0.22 years	June 21, 2015
October 2012 Warrants		3,000,000	$	5.06	0.22 years	June 21, 2015
June 2014 Warrants		5,412,366	$	5.06	0.22 years	June 21, 2015
Outstanding as of March 31, 2015		17,402,654

* All outstanding warrants as of March 31, 2015 are classified as equity.

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

General (Additional Information) (Details) - USD ($) $ / shares in Units, shares in Millions				1 Months Ended	3 Months Ended
	May 05, 2015	May 04, 2015	Nov. 06, 2012	Jan. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Feb. 18, 2014	Dec. 31, 2013
Cost Method Investment Ownership Percentage								8.25%
Royalty Rate			3.50%	20.90%
Supplemental Damages And Prejudgment Interest				$ 17,320,000
Running Royalty Amount			$ 30,500,000
Ongoing Royalty Rate				6.50%
Cash					$ 12,239,000
Average Monthly Cash Spent In Operations					1,167,000	$ 2,831,000
Stockholders Equity					26,251,000	109,928,000	$ 31,180,000		$ 114,282,000
Payments for Deposits					2,682,000
Deposits Assets, Current					2,070,000		2,067,000
Cash and cash equivalents	$ 22,900,000				$ 12,239,000	$ 27,818,000	$ 16,023,000		$ 33,586,000
Subsequent Event [Member]
Proceeds From Issuance Of Notes Payable And Warrants	$ 12,425
Subsequent Event [Member] \| Warrant [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 1.00
Class Of Warrant Or Right Term		5 years
Warrants Issued During Period Shares		5.4
Senior Notes [Member] \| Subsequent Event [Member]
Debt Discount Percentage		15.00%
Debt Instrument, Face Amount		$ 12,500
Debt Instrument, Convertible, Conversion Price		$ 1.00
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Term		21 months

Intangible Assets (Schedule of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Patents	$ 28,213	$ 28,213
Less: accumulated amortization and impairment	(11,392)	(10,588)
Finite-Lived Intangible Assets, Net	$ 16,821	$ 17,625
Weighted average amortization period (years)	8 years 10 months 24 days

Intangible Assets (Additional Information) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Aug. 31, 2012	Mar. 31, 2015	Sep. 30, 2014	Mar. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets		$ 804		$ 957
Impairment of Intangible Assets, Finite-lived			$ 1,355
Gross Revenue By Portfolio Under Purchase Agreement	$ 22,000
Capitalize Cost Related To Acquisition Of Patents	$ 548
Royalty Payable On Excess Of Acquisition Cost	35.00%
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets		$ 804		$ 957

Net Loss per Common Share (Computation of basic and diluted net losses per common share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share Disclosure [Line Items]
Loss from continuing operations attributable to shares of common stock	$ (6,976)	$ (10,900)
Loss from discontinued operations attributable to shares of common stock	0	(209)
Net loss attributable to shares of common stock	$ (6,976)	$ (11,109)
Basic common stock shares outstanding	93,404,895	85,457,670
Basic loss per common stock share from continuing operations	$ (0.07)	$ (0.13)
Basic loss per common stock share from discontinued operations	(0.00)	(0.00)
Basic net loss per common stock share	$ (0.07)	$ (0.13)
Diluted common stock shares outstanding	93,404,895	85,457,670
Diluted loss per common stock share from continuing operations	$ (0.07)	$ (0.13)
Diluted loss per common stock share from discontinued operations	(0.00)	(0.00)
Diluted net loss per common stock share	$ (0.07)	$ (0.13)
Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact:
Total number of potentially dilutive instruments, excluded from the calculation of net loss per share	27,281,563	29,945,191
Basic Numerator [Member]
Earnings Per Share Disclosure [Line Items]
Loss from continuing operations attributable to shares of common stock	$ (6,976)	$ (10,900)
Loss from discontinued operations attributable to shares of common stock	0	(209)
Net loss attributable to shares of common stock	$ (6,976)	$ (11,109)
Basic Denominator [Member]
Earnings Per Share Disclosure [Line Items]
Weighted average number of shares of common stock outstanding during the period	93,404,895	85,428,830
Weighted average number of penny stock options	0	28,840
Basic common stock shares outstanding	93,404,895	85,457,670
Basic loss per common stock share from continuing operations	$ (0.07)	$ (0.13)
Basic loss per common stock share from discontinued operations	(0.00)	(0.00)
Basic net loss per common stock share	$ (0.07)	$ (0.13)
Diluted Numerator [Member]
Earnings Per Share Disclosure [Line Items]
Loss from continuing operations attributable to shares of common stock	$ (6,976)	$ (10,900)
Increase in net loss attributable to derivative warrants	0	0
Diluted net loss from continuing operations attributable to shares of common stock	(6,976)	(10,900)
Diluted net loss from discontinued operations attributable to shares of common stock	0	(209)
Diluted net loss attributable to shares of common stock	$ (6,976)	$ (11,109)
Diluted Denominator [Member]
Earnings Per Share Disclosure [Line Items]
Basic common stock shares outstanding	93,404,895	85,457,670
Shares assumed issued upon exercise of derivative warrants during the period	0	0
Diluted common stock shares outstanding	93,404,895	85,457,670
Diluted loss per common stock share from continuing operations	$ (0.07)	$ (0.13)
Diluted loss per common stock share from discontinued operations	(0.00)	(0.00)
Diluted net loss per common stock share	$ (0.07)	$ (0.13)
Both vested and unvested options at $0.96-$5.50 exercise price, to purchase an equal number of shares of common stock of the Company [Member]
Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact:
Total number of potentially dilutive instruments, excluded from the calculation of net loss per share	9,202,345	10,331,409
Unvested Restricted Stock Units (“RSU”) [Member]
Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact:
Total number of potentially dilutive instruments, excluded from the calculation of net loss per share	676,564	1,890,738
Common stock shares granted, but not yet vested [Member]
Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact:
Total number of potentially dilutive instruments, excluded from the calculation of net loss per share	0	14,331
Warrants to purchase an equal number of shares of common stock of the Company [Member]
Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact:
Total number of potentially dilutive instruments, excluded from the calculation of net loss per share	17,402,654	17,708,713

Net Loss per Common Share (Parenthetical) (Details) - $ / shares	Mar. 31, 2015	Dec. 31, 2014
Earnings Per Share Disclosure [Line Items]
Stock Option Exercise Price	$ 3.01	$ 3.36
Maximum [Member]
Earnings Per Share Disclosure [Line Items]
Stock Option Exercise Price	5.50	5.50
Maximum [Member] \| Stock Option [Member]
Earnings Per Share Disclosure [Line Items]
Stock Option Exercise Price	5.50
Minimum [Member]
Earnings Per Share Disclosure [Line Items]
Stock Option Exercise Price	0.51	$ 0.96
Minimum [Member] \| Stock Option [Member]
Earnings Per Share Disclosure [Line Items]
Stock Option Exercise Price	$ 0.96

Discontinued Operations (Disposal Group Not Discontinued Operation Income Statement Disclosures) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue		$ 37
Operating expenses		(266)
Operating loss		(229)
Non-operating income		20
Loss before taxes on income	$ 0	(209)
Income tax expense	0	0
Loss from discontinued operations	$ 0	$ (209)

Discontinued Operations (Additional Information) (Details) - USD ($) $ in Thousands	Mar. 31, 2015	Dec. 31, 2014	Feb. 18, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cost Method Investment Ownership Percentage			8.25%
Infomedia [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cost Method Investment Ownership Percentage			8.25%
Cost Method Investments	$ 787	$ 787

Fair Value Measurements (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) $ in Thousands	Dec. 31, 2014 USD ($)
Liabilities
Derivative warrant liabilities	$ 175
Fair Value, Inputs, Level 1 [Member]
Liabilities
Derivative warrant liabilities	0
Fair Value, Inputs, Level 2 [Member]
Liabilities
Derivative warrant liabilities	0
Fair Value Inputs Level 3 [Member]
Liabilities
Derivative warrant liabilities	$ 175

Fair Value Measurements (Based Upon Sensitivity and Nature of Inputs) (Details)	12 Months Ended
	Dec. 31, 2014
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Dividend yield	0.00%
Minimum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Volatility	56.55%
Risk free interest rate	0.13%
Expected term, in years	5 months 23 days
Maximum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Volatility	77.06%
Risk free interest rate	0.87%
Expected term, in years	2 years 6 months 18 days

Fair Value Measurements (Additional Information) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2015 USD ($)
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity	$ 175

Stock-based Compensation (Schedule Of Common Stock Options Granted) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Stockholders Equity [Line Items]
No. of options	1,150,000
Exercise price	$ 3.01	$ 3.36
Fair market value at grant date	0.35
Maximum [Member]
Stockholders Equity [Line Items]
Exercise price	5.50	5.50
Minimum [Member]
Stockholders Equity [Line Items]
Exercise price	$ 0.51	$ 0.96
Management Directors and Employees [Member]
Stockholders Equity [Line Items]
Grant Date	January 2015
No. of options	1,150,000
Vesting terms	Over 1 year for Directors; Over 3 years for Employees
Volatility Rate, Minimum	74.90%
Volatility Rate, Maximum	77.10%
Risk free interest rate, Minimum	1.27%
Risk free interest rate, Maximum	1.51%
Dividend yield	0.00%
Management Directors and Employees [Member] \| Maximum [Member]
Stockholders Equity [Line Items]
Exercise price	$ 0.59
Fair market value at grant date	$ 0.38
Expected term, in years	5 years 9 months 22 days
Management Directors and Employees [Member] \| Minimum [Member]
Stockholders Equity [Line Items]
Exercise price	$ 0.51
Fair market value at grant date	$ 0.33
Expected term, in years	5 years 3 months 22 days

Stock-based Compensation (Stock options and RSU activity) (Details)	3 Months Ended
	Mar. 31, 2015 $ / shares shares
Stockholders Equity [Line Items]
No. of options, Outstanding at January 1, 2015 \| shares	8,052,345
No. of options, Granted \| shares	1,150,000
No. of options, Vested/Exercised \| shares	0
No. of options, Forfeited \| shares	0
No. of options, Expired \| shares	0
No. of options, Outstanding at March 31, 2015 \| shares	9,202,345
No. of options, Exercisable at March 31, 2015 \| shares	6,876,927
Exercise price range, Outstanding at January 1, 2015	$ 3.36
Exercise price range, Granted	0.54
Exercise price range, Vested/Exercised	0
Exercise price range, Forfeited	0
Exercise price range, Expired	0
Exercise price range, Outstanding March 31, 2015	3.01
Exercise price range, Exercisable at March 31, 2015	3.29
Weighted average grant date fair value, Outstanding at January 1, 2015	2.24
Weighted average grant date fair value, Granted	0.35
Weighted average grant date fair value, Vested/Exercised	0
Weighted average grant date fair value, Forfeited	0
Weighted average grant date fair value, Expired	0
Weighted average grant date fair value, Outstanding at March 31, 2015	$ 2.00
Restricted Stock [Member]
Stockholders Equity [Line Items]
Beginning Balance \| shares	1,196,357
No. of RSUs, Granted \| shares	0
No. of RSUs, Vested/Exercised \| shares	(166,147)
No. of RSUs, Forfeited \| shares	(353,646)
No. of RSUs, Expired \| shares	0
Ending Balance \| shares	676,564
No. of RSUs, Exercisable at March 31, 2015 \| shares	0
Weighted average grant date fair value Outstanding at January 1, 2015	$ 3.64
Weighted average grant date fair value, Granted	0
Weighted average grant date fair value, Vested/Exercised	3.62
Weighted average grant date fair value, Forfeited	3.63
Weighted average grant date fair value, Expired	0
Weighted average grant date fair value, Outstanding at March 31, 2015	3.64
Weighted average grant date fair value, Exercisable at March 31, 2015	0
Minimum [Member]
Stockholders Equity [Line Items]
Exercise price range, Outstanding at January 1, 2015	0.96
Exercise price range, Granted	0.51
Exercise price range, Outstanding March 31, 2015	0.51
Exercise price range, Exercisable at March 31, 2015	0.51
Maximum [Member]
Stockholders Equity [Line Items]
Exercise price range, Outstanding at January 1, 2015	5.50
Exercise price range, Granted	0.59
Exercise price range, Outstanding March 31, 2015	5.50
Exercise price range, Exercisable at March 31, 2015	$ 5.50

Stock-based Compensation (Additional Information) (Details)	3 Months Ended
	Mar. 31, 2015 shares
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	4,974,566
Maximum [Member]
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	100.00%
Minimum [Member]
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	75.00%
Two Thousand Twelve Stock Option Plan [Member]
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	15,600,000

Warrants (Schedule Of Changes In Warrants Activity) (Details) - Warrant [Member]	3 Months Ended
	Mar. 31, 2015 $ / shares shares
Beginning Balance \| shares	17,402,654
Granted \| shares	0
Exercised \| shares	0
Ending Balance \| shares	17,402,654
Outstanding at January 1, 2015, Weighted average exercise price	$ 4.26
Granted, Weighted average exercise price	0
Exercised, Weighted average exercise price	0
Outstanding at March 31, 2015 , Weighted average exercise price	4.26
Granted, Exercise price range	0
Exercised, Exercise price range	0
Maximum [Member]
Outstanding at January 1, 2015, Exercise price range	5.06
Outstanding at March 31, 2015, Exercise price range	5.06
Minimum [Member]
Outstanding at January 1, 2015, Exercise price range	0.94
Outstanding at March 31, 2015, Exercise price range	$ 0.94

Warrants (Schedule of Warrants Outstanding) (Details)

3 Months Ended

Mar. 31, 2015

$ / shares

No. outstanding

17,402,654

^[1]

Series 1 Warrants [Member]

No. outstanding

1,490,250

^[1]

Exercise price | $ / shares

$ 1.76

Remaining contractual life

2 years 3 months 18 days

Expiration Date

July 19, 2017

Series 2 Warrants [Member]

No. outstanding

1,943,523

^[1]

Exercise price | $ / shares

$ 1.76

Remaining contractual life

2 years 3 months 18 days

Expiration Date

July 19, 2017

Conversion Warrants [Member]

No. outstanding

14,492

^[1]

Exercise price | $ / shares

$ 0.94

Remaining contractual life

2 months 19 days

Expiration Date

June 21, 2015

Reload Warrants [Member]

No. outstanding

758,023

^[1]

Exercise price | $ / shares

$ 1.76

Remaining contractual life

1 year 10 months 10 days

Expiration Date

February 6, 2017

IPO Warrants [Member]

No. outstanding

4,784,000

^[1]

Exercise price | $ / shares

$ 5.06

Remaining contractual life

2 months 19 days

Expiration Date

June 21, 2015

October 2012 Warrants [Member]

No. outstanding

3,000,000

^[1]

Exercise price | $ / shares

$ 5.06

Remaining contractual life

2 months 19 days

Expiration Date

June 21, 2015

June 2014 Warrants [Member]

No. outstanding

5,412,366

^[1]

Exercise price | $ / shares

$ 5.06

Remaining contractual life

2 months 19 days

Expiration Date

June 21, 2015

[1]	All outstanding warrants as of March 31, 2015 are classified as equity.

Commitments and Contingencies (Additional Information) (Details) € in Thousands, R$ in Thousands, $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Jul. 30, 2012 USD ($)	Mar. 31, 2015 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2014 USD ($)	Feb. 11, 2015 EUR (€)	May 05, 2014 EUR (€)	Apr. 17, 2014 BRL (R$)	May 31, 2013 USD ($)	Nov. 30, 2012 USD ($)
Finite-Lived Intangible Assets [Line Items]
Rental expense for operating leases		$ 91	$ 112
Deposits Assets, Current		2,070		$ 2,067
ZTE In Germany [Member]
Finite-Lived Intangible Assets [Line Items]
Deposits Assets, Current		1,085				€ 1,000
ZTE In Brazil [Member]
Finite-Lived Intangible Assets [Line Items]
Deposits Assets, Current		621					R$ 2,020
ZTE In Romania [Member]
Finite-Lived Intangible Assets [Line Items]
Deposits Assets, Current		$ 264			€ 243
Until Renovation Of Building [Member]
Finite-Lived Intangible Assets [Line Items]
Operating Lease Rent Expense Annual Fee				$ 403
Maximum [Member] \| Written Commitment One [Member]
Finite-Lived Intangible Assets [Line Items]
Guarantee placed for contingent loss in litigation									$ 2,900
Maximum [Member] \| Written Commitment Two [Member]
Finite-Lived Intangible Assets [Line Items]
Guarantee placed for contingent loss in litigation								$ 2,900
New York [Member]
Finite-Lived Intangible Assets [Line Items]
Operating Lease Rent Expense Annual Fee	$ 137