Guarantor and Non-Guarantor Financial Statements (Tables)
 3 Months Ended
Jun. 30, 2018
Condensed Financial Information Disclosure [Abstract]  
Condensed Balance Sheet
Consolidated Balance Sheet
as of June 30, 2018 (Unaudited)
(in thousands, except par value and share amounts)
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
ASSETS
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
Cash
 
$
946

 
$
7,612

 
$
80

 
$
8,638

Restricted cash
 
156

 
175

 
—

 
331

Accounts receivable, net of allowance of $790
 
—

 
19,102

 
244

 
19,346

Deposits
 
34

 
113

 
4

 
151

Prepaid expenses and other current assets
 
349

 
443

 
10

 
802

Current assets held for disposal
 
—

 
4,053

 
340

 
4,393

Total current assets
 
1,485

 
31,498

 
678

 
33,661

Property and equipment, net
 
267

 
2,435

 
9

 
2,711

Deferred tax assets
 
632

 
—

 
—

 
632

Intangible assets, net
 
1

 
895

 
—

 
896

Goodwill
 
1,065

 
40,201

 
1,002

 
42,268

Long-term assets held for disposal
 
—

 
—

 
—

 
—

TOTAL ASSETS
 
$
3,450

 
$
75,029

 
$
1,689

 
$
80,168

INTERCOMPANY
 
 
 
 
 
 
 
 
Intercompany payable / (receivable), net
 
114,746

 
(98,385
)
 
(16,361
)
 
—

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
Accounts payable
 
$
1,015

 
$
17,285

 
$
(8
)
 
$
18,292

Accrued license fees and revenue share
 
—

 
11,169

 
322

 
11,491

Accrued compensation
 
489

 
688

 
—

 
1,177

Short-term debt, net of debt issuance costs and discounts of $163
 
1,437

 
—

 
—

 
1,437

Other current liabilities
 
1,138

 
(163
)
 
511

 
1,486

Current liabilities held for disposal
 
—

 
7,610

 
438

 
8,048

Total current liabilities
 
4,079

 
36,589

 
1,263

 
41,931

Convertible notes, net of debt issuance costs and discounts of $1,709
 
3,991

 
—

 
—

 
3,991

Convertible note embedded derivative liability
 
3,056

 
—

 
—

 
3,056

Warrant liability
 
2,410

 
—

 
—

 
2,410

Total liabilities
 
13,536

 
36,589

 
1,263

 
51,388

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; 77,145,980 issued and 76,391,381 outstanding at June 30, 2018.
 
10

 
—

 
—

 
10

Additional paid-in capital
 
318,690

 
—

 
—

 
318,690

Treasury stock (754,599 shares at June 30, 2018)
 
(71
)
 
—

 
—

 
(71
)
Accumulated other comprehensive loss
 
30

 
(1,491
)
 
1,136

 
(325
)
Accumulated deficit
 
(214,099
)
 
(58,454
)
 
(17,071
)
 
(289,624
)
Total stockholders' equity
 
104,660

 
(59,945
)
 
(15,935
)
 
28,780

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
118,196

 
$
(23,356
)
 
$
(14,672
)
 
$
80,168


Consolidated Balance Sheet
as of March 31, 2018 (Unaudited)
(in thousands, except par value and share amounts)
 
 
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
 
3,218

 
—

 
—

 
3,218

Warrant liability
 
1,076

 
—

 
—

 
1,076

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 March 31, 2018)
 
(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
Condensed Income Statement
Consolidated Statement of Operations and Comprehensive Loss
for the three months ended June 30, 2018 (Unaudited)
(in thousands, except par value and share amounts)
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Elimination
 
Consolidated Total
Net revenues
 
$
—

 
$
40,927

 
$
204

 
$
(19,019
)
 
$
22,112

Cost of revenues
 
 
 
 
 
 
 
 
 
 
License fees and revenue share
 
—

 
34,145

 
90

 
(19,019
)
 
15,216

Other direct cost of revenues
 
—

 
507

 
—

 
—

 
507

Total cost of revenues
 
—

 
34,652

 
90

 
(19,019
)
 
15,723

Gross profit
 
—

 
6,275

 
114

 
—

 
6,389

Operating expenses
 
 
 
 
 
 
 
 
 
 
Product development
 
90

 
2,904

 
115

 
—

 
3,109

Sales and marketing
 
124

 
1,508

 
204

 
—

 
1,836

General and administrative
 
1,162

 
1,490

 
52

 
—

 
2,704

Total operating expenses
 
1,376

 
5,902

 
371

 
—

 
7,649

Income / (loss) from operations
 
(1,376
)
 
373

 
(257
)
 
—

 
(1,260
)
Interest and other income / (expense), net
 
 
 
 
 
 
 
 
 
 
Interest income / (expense)
 
(320
)
 
1

 
—

 
—

 
(319
)
Foreign exchange transaction gain / (loss)
 
—

 
10

 
(2
)
 
—

 
8

Change in fair value of convertible note embedded derivative liability
 
1,620

 
—

 
—

 
—

 
1,620

Change in fair value of warrant liability
 
1,570

 
—

 
—

 
—

 
1,570

Other income / (expense)
 
894

 
(1,016
)
 
(5
)
 
—

 
(127
)
Total interest and other income / (expense), net
 
3,764

 
(1,005
)
 
(7
)
 
—

 
2,752

Income / (loss) from operations before income taxes
 
2,388

 
(632
)
 
(264
)
 
—

 
1,492

Income tax benefit
 
(36
)
 
—

 
—

 
—

 
(36
)
Net income / (loss) from continuing operations, net of taxes
 
2,424

 
(632
)
 
(264
)
 
—

 
1,528

 
 
 
 
 
 
 
 
 
 
 
Income / (loss) from operations of discontinued components
 
(37
)
 
(1,016
)
 
9

 
—

 
(1,044
)
Net loss from discontinued operations, net of taxes
 
(37
)
 
(1,016
)
 
9

 
—

 
(1,044
)
Net income / (loss)
 
$
2,387

 
$
(1,648
)
 
$
(255
)
 
$
—

 
$
484

Comprehensive income / (loss)
 
$
2,387

 
$
(1,648
)
 
$
(255
)
 
$
—

 
$
484


Consolidated Statement of Operations and Comprehensive Loss
for the three months ended June 30, 2017 (Unaudited)
(in thousands, except par value and share amounts)
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Elimination
 
Consolidated Total
Net revenues
 
$
—

 
$
27,067

 
$
250

 
$
(12,164
)
 
$
15,153

Cost of revenues
 
 
 
 
 
 
 
 
 
 
License fees and revenue share
 
—

 
21,721

 
35

 
(12,164
)
 
9,592

Other direct cost of revenues
 
—

 
195

 
214

 
—

 
409

Total cost of revenues
 
—

 
21,916

 
249

 
(12,164
)
 
10,001

Gross profit
 
—

 
5,151

 
1

 
—

 
5,152

Operating expenses
 
 
 
 
 
 
 
 
 
 
Product development
 
5

 
2,157

 
12

 
—

 
2,174

Sales and marketing
 
102

 
982

 
53

 
—

 
1,137

General and administrative
 
2,252

 
1,032

 
74

 
—

 
3,358

Total operating expenses
 
2,359

 
4,171

 
139

 
—

 
6,669

Income / (loss) from operations
 
(2,359
)
 
980

 
(138
)
 
—

 
(1,517
)
Interest and other income / (expense), net
 
 
 
 
 
 
 
 
 
 
Interest income / (expense)
 
(710
)
 
3

 
—

 
—

 
(707
)
Foreign exchange transaction loss
 
—

 
(63
)
 
—

 
—

 
(63
)
Change in fair value of convertible note embedded derivative liability
 
(1,308
)
 
—

 
—

 
—

 
(1,308
)
Change in fair value of warrant liability
 
(464
)
 
—

 
—

 
—

 
(464
)
Other income
 
3

 
—

 
—

 
—

 
3

Total interest and other income / (expense), net
 
(2,479
)
 
(60
)
 
—

 
—

 
(2,539
)
Income / (loss) from continuing operations before income taxes
 
(4,838
)
 
920

 
(138
)
 
—

 
(4,056
)
Income tax provision
 
31

 
—

 
—

 
—

 
31

Net income / (loss) from continuing operations, net of taxes
 
(4,869
)
 
920

 
(138
)
 
—

 
(4,087
)
 
 
 
 
 
 
 
 
 
 
 
Loss from operations of discontinued components
 
—

 
(44
)
 
(44
)
 
—

 
(88
)
Net loss from discontinued operations, net of taxes
 
—

 
(44
)
 
(44
)
 
—

 
(88
)
Net income / (loss)
 
$
(4,869
)
 
$
876

 
$
(182
)
 
$
—

 
$
(4,175
)
Other comprehensive income / (loss)
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 
—

 
(216
)
 
216

 
—

 
—

Comprehensive income / (loss)
 
$
(4,869
)
 
$
660

 
$
34

 
$
—

 
$
(4,175
)
Condensed Cash Flow Statement
Consolidated Statement of Cash Flows
for the three months ended June 30, 2018 (Unaudited)
(in thousands, except par value and share amounts)
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net income / (loss)
 
$
2,424

 
$
(632
)
 
$
(264
)
 
$
1,528

Adjustments to reconcile net income / (loss) to net cash used in operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
8

 
719

 
2

 
729

Change in allowance for doubtful accounts
 
—

 
238

 
40

 
278

Amortization of debt discount and debt issuance costs
 
161

 
—

 
—

 
161

Stock-based compensation
 
463

 
—

 
—

 
463

Stock-based compensation for services rendered
 
85

 
—

 
—

 
85

Change in fair value of convertible note embedded derivative liability
 
(1,620
)
 
—

 
—

 
(1,620
)
Change in fair value of warrant liability
 
(1,570
)
 
—

 
—

 
(1,570
)
(Increase) / decrease in assets:
 
 
 
 
 
 
 
 
Accounts receivable
 
—

 
(2,735
)
 
161

 
(2,574
)
Deferred tax assets
 
(36
)
 
—

 
—

 
(36
)
Prepaid expenses and other current assets
 
(19
)
 
43

 
(76
)
 
(52
)
Increase / (decrease) in liabilities:
 
 
 
 
 
 
 
 
Accounts payable
 
(15
)
 
(1,557
)
 
(31
)
 
(1,603
)
Accrued license fees and revenue share
 
—

 
3,180

 
79

 
3,259

Accrued compensation
 
(1,784
)
 
34

 
(31
)
 
(1,781
)
Accrued interest
 
135

 
—

 
—

 
135

Other current liabilities
 
3,237

 
(3,114
)
 
86

 
209

Other non-current liabilities
 
—

 
(6
)
 
—

 
(6
)
Cash provided by / (used in) operating activities - continuing operations
 
1,469

 
(3,830
)
 
(34
)
 
(2,395
)
Cash used in operating activities - discontinued operations
 
—

 
(903
)
 
(321
)
 
(1,224
)
Net cash provided by / (used in) operating activities
 
1,469

 
(4,733
)
 
(355
)
 
(3,619
)
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
Capital expenditures
 
(1,013
)
 
586

 
16

 
(411
)
Cash provided by / (used in) investing activities - continuing operations
 
(1,013
)
 
586

 
16

 
(411
)
Cash used in investing activities - discontinued operations
 
—

 
(41
)
 
—

 
(41
)
Net cash provided by / (used in) investing activities
 
(1,013
)
 
545

 
16

 
(452
)
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
Options exercised
 
39

 
—

 
—

 
39

Repayment of debt obligations
 
(50
)
 
—

 
—

 
(50
)
Net cash used in financing activities
 
(11
)
 
—

 
—

 
(11
)
 
 
 
 
 
 
 
 
 
Net change in cash
 
445

 
(4,188
)
 
(339
)
 
(4,082
)
 
 
 
 
 
 
 
 
 
Cash and restricted cash, beginning of period
 
657

 
11,975

 
419

 
13,051

 
 
 
 
 
 
 
 
 
Cash and restricted cash, end of period
 
$
1,102

 
$
7,787

 
$
80

 
$
8,969

Consolidated Statement of Cash Flows
for the three months ended June 30, 2017 (Unaudited)
(in thousands, except par value and share amounts)
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net income / (loss)
 
$
(4,869
)
 
$
920

 
$
(138
)
 
$
(4,087
)
Adjustments to reconcile net income / (loss) to net cash used in operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
34

 
418

 
176

 
628

Change in allowance for doubtful accounts
 
—

 
146

 
—

 
146

Amortization of debt discount and debt issuance costs
 
353

 
—

 
—

 
353

Stock-based compensation
 
715

 
—

 
—

 
715

Stock-based compensation for services rendered
 
76

 
—

 
—

 
76

Change in fair value of convertible note embedded derivative liability
 
1,308

 
—

 
—

 
1,308

Change in fair value of warrant liability
 
464

 
—

 
—

 
464

(Increase) / decrease in assets:
 
 
 
 
 
 
 
 
Accounts receivable
 
—

 
(2,939
)
 
(180
)
 
(3,119
)
Prepaid expenses and other current assets
 
(52
)
 
(18
)
 
(2
)
 
(72
)
Increase / (decrease) in liabilities:
 
 
 
 
 
 
 
 
Accounts payable
 
236

 
(1,117
)
 
(26
)
 
(907
)
Accrued license fees and revenue share
 
—

 
2,857

 
48

 
2,905

Accrued compensation
 
—

 
98

 
—

 
98

Accrued interest
 
344

 
—

 
—

 
344

Other current liabilities
 
110

 
(643
)
 
—

 
(533
)
Other non-current liabilities
 
67

 
6

 
—

 
73

Intercompany movement of cash
 
(729
)
 
1,061

 
(332
)
 
—

Cash provided by / (used in) operating activities - continuing operations
 
(1,943
)
 
789

 
(454
)
 
(1,608
)
Cash provided by / (used in) operating activities - discontinued operations
 
—

 
222

 
(18
)
 
204

Net cash provided by / (used in) operating activities
 
(1,943
)
 
1,011

 
(472
)
 
(1,404
)
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
Capital expenditures
 
—

 
(365
)
 
—

 
(365
)
Cash provided by / (used in) investing activities - continuing operations
 
 
 
(365
)
 
—

 
(365
)
Cash provided by / (used in) investing activities - discontinued operations
 
 
 
(9
)
 
 
 
(9
)
Net cash used in investing activities
 
—

 
(374
)
 
—

 
(374
)
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
Proceeds from short-term borrowings
 
2,250

 
—

 
—

 
2,250

Payment of debt issuance costs
 
(320
)
 
—

 
—

 
(320
)
Options exercised
 
9

 
—

 
—

 
9

Net cash provided by financing activities
 
1,939

 
—

 
—

 
1,939

 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
 
—

 
(8
)
 
—

 
(8
)
 
 
 
 
 
 
 
 
 
Net change in cash
 
(4
)
 
629

 
(472
)
 
153

 
 
 
 
 
 
 
 
 
Cash and restricted cash, beginning of period
 
413

 
5,510

 
557

 
6,480

 
 
 
 
 
 
 
 
 
Cash and restricted cash, end of period
 
$
409

 
$
6,139

 
$
85

 
$
6,633