Intangible Assets
12 Months Ended
Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Note 5 — Intangible Assets
 
 
As of December 31,
 
Weighted average
amortization period
 
 
2013
 
2012
 
(years)
Acquired technology (refer to Note 6)
 
$
10,133
 
$
10,133
 
6.0
Less: accumulated amortization
 
 
(2,451)
 
 
(763)
 
 
Less: impairment of technology (refer to Note 7)
 
 
(7,045)
 
 
 
 
Less: technology reclassified to assets held for sale (refer to Note 7)
 
 
(637)
 
 
 
 
Total
 
 
 
 
9,370
 
 
 
 
 
 
 
 
 
 
 
Patents
 
 
28,213
 
 
26,694
 
8.3
Less: accumulated amortization
 
 
(5,465)
 
 
(2,020)
 
 
Total
 
 
22,748
 
 
24,674
 
 
 
 
 
 
 
 
 
 
 
 
 
$
22,748
 
$
34,044
 
 
 
In August 2012, the Company purchased from Nokia Corporation a portfolio consisting of various patents and patent applications. The portfolio encompasses a broad range of technologies relating to telecom infrastructure, including communication management, data and signal transmission, mobility management, radio resources management and services. The total consideration paid for the portfolio was $22,000. In addition, 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 reliably estimated. 
 
In October 2012, the Company’s subsidiary entered into an additional patent purchase agreement. As partial consideration, the Company issued 160,600 shares of common stock to the seller with a fair value of $750. In addition, under the terms of the purchase agreement, 20% of the gross revenue collected will be payable to the seller as a royalty. 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 reliably estimated.
 
During the years ended December 31, 2013 and 2012, the Company recorded total patent amortization expense of $3,445 and $1,692,  respectively, and $5,465 cumulatively from Inception. In addition, during the years ended December 31, 2013 and 2012, total amortization expense of $1,688 and $763 was recorded, respectively, and $2,451 cumulatively from Inception, for the Company’s acquired technology (for December 31, 2013 classification refer to Note 7). Estimated patent amortization expense for each of the five succeeding years, based upon intangible assets owned at December 31, 2013 is as follows:
 
Year ending December 31,
 
Amount
 
2014
 
$
3,832
 
2015
 
 
3,766
 
2016
 
 
3,045
 
2017
 
 
2,845
 
2018
 
 
2,822
 
2019 and thereafter
 
 
6,438
 
 
 
$
22,748