$XWEL
XWELL Inc Stock $xwel

$xwel Overview Financials Valuation SEC Filings Company Website

2016 Q3 Form 10-Q Financial Statement

#000114420416132791 Filed on November 09, 2016

Income Statement

Concept	2016 Q3	2015 Q4	2015 Q3
Revenue	$3.101M	$22.54M	$0.00
YoY Change		9917.78%	-100.0%
Cost Of Revenue	$2.718M	$4.010M	$0.00
YoY Change		-29.03%	-100.0%
Gross Profit	$383.0K	$18.53M	$0.00
YoY Change		-441.88%	-100.0%
Gross Profit Margin	12.35%	82.21%
Selling, General & Admin	$3.564M	$2.990M	$2.095M
YoY Change	70.12%	-16.01%	-49.49%
% of Gross Profit	930.55%	16.14%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization	$1.400M	$860.0K	$820.0K
YoY Change	70.73%		-64.81%
% of Gross Profit	365.54%	4.64%
Operating Expenses	$3.564M	$3.850M	$2.095M
YoY Change	70.12%	17.02%	-49.49%
Operating Profit	-$3.777M	$14.68M	-$9.690M
YoY Change	-61.02%	-119.36%	-36.23%
Interest Expense	$949.0K	$710.0K	$1.708M
YoY Change	-44.44%	-3650.0%
% of Operating Profit		4.84%
Other Income/Expense, Net	-$1.483M	-$40.00K	-$2.181M
YoY Change	-32.0%	-33.33%	-6331.43%
Pretax Income	-$5.261M	$15.23M	-$11.87M
YoY Change	-55.68%	-120.07%	-4.08%
Income Tax	$0.00	-$870.0K	$0.00
% Of Pretax Income		-5.71%
Net Earnings	-$5.261M	$16.20M	-$11.87M
YoY Change	-55.68%	-121.28%	-4.08%
Net Earnings / Revenue	-169.65%	71.87%
Basic Earnings Per Share	-$0.34		-$1.16
Diluted Earnings Per Share	-$0.34	$81.00M	-$1.16
COMMON SHARES
Basic Shares Outstanding	15.47M shares	112.7M shares	10.25M shares
Diluted Shares Outstanding	15.47M shares		10.25M shares

Balance Sheet

Concept	2016 Q3	2015 Q4	2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments	$23.40M	$25.00M	$14.40M
YoY Change	62.5%	56.25%	-40.74%
Cash & Equivalents	$21.68M	$24.95M	$14.40M
Short-Term Investments	$1.700M
Other Short-Term Assets	$300.0K	$1.396M	$2.900M
YoY Change	-89.66%	173.73%	-19.44%
Inventory	$408.0K	$379.0K
Prepaid Expenses		$674.0K
Receivables	$1.833M	$246.0K
Other Receivables	$0.00	$0.00
Total Short-Term Assets	$26.00M	$28.28M	$17.30M
YoY Change	50.29%	52.03%	-37.99%
LONG-TERM ASSETS
Property, Plant & Equipment		$0.00
YoY Change		-100.0%
Goodwill	$4.863M	$0.00
YoY Change
Intangibles		$16.48M
YoY Change		-6.52%
Long-Term Investments
YoY Change
Other Assets	$1.100M	$916.0K	$1.100M
YoY Change	0.0%	-24.3%	6.38%
Total Long-Term Assets	$9.300M	$22.26M	$16.30M
YoY Change	-42.94%	18.16%	-80.93%
TOTAL ASSETS
Total Short-Term Assets	$26.00M	$28.28M	$17.30M
Total Long-Term Assets	$9.300M	$22.26M	$16.30M
Total Assets	$35.30M	$50.53M	$33.60M
YoY Change	5.06%	34.99%	-70.37%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable	$7.400M	$4.278M	$9.900M
YoY Change	-25.25%	18.9%	30.26%
Accrued Expenses		$607.0K
YoY Change		30.54%
Deferred Revenue
YoY Change
Short-Term Debt	$0.00	$3.100M	$4.100M
YoY Change	-100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities	$7.900M	$9.141M	$14.10M
YoY Change	-43.99%	93.17%	86.61%
LONG-TERM LIABILITIES
Long-Term Debt	$0.00	$0.00	$0.00
YoY Change
Other Long-Term Liabilities	$119.0K	$386.0K	$2.800M
YoY Change	-95.75%	-71.39%	361.29%
Total Long-Term Liabilities	$119.0K	$386.0K	$2.800M
YoY Change	-95.75%	-71.39%	361.29%
TOTAL LIABILITIES
Total Short-Term Liabilities	$7.900M	$9.141M	$14.10M
Total Long-Term Liabilities	$119.0K	$386.0K	$2.800M
Total Liabilities	$8.594M	$9.943M	$16.90M
YoY Change	-49.15%	63.51%	106.98%
SHAREHOLDERS EQUITY
Retained Earnings		-$196.9M	-$213.1M
YoY Change		6.01%	94.47%
Common Stock	$158.0K	$132.0K	$1.106M
YoY Change	-85.71%	41.94%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity	$26.70M	$40.52M	$16.70M
YoY Change
Total Liabilities & Shareholders Equity	$35.32M	$50.46M	$33.63M
YoY Change	5.02%	34.79%	-70.34%

Cashflow Statement

Concept	2016 Q3	2015 Q4	2015 Q3
OPERATING ACTIVITIES
Net Income	-$5.261M	$16.20M	-$11.87M
YoY Change	-55.68%	-121.28%	-4.08%
Depreciation, Depletion And Amortization	$1.400M	$860.0K	$820.0K
YoY Change	70.73%		-64.81%
Cash From Operating Activities	-$3.670M	$10.98M	-$5.840M
YoY Change	-37.16%	-234.56%	-19.56%
INVESTING ACTIVITIES
Capital Expenditures	-$90.00K	$0.00	$0.00
YoY Change			-100.0%
Acquisitions
YoY Change
Other Investing Activities	-$1.730M	$170.0K	$20.00K
YoY Change	-8750.0%	-270.0%
Cash From Investing Activities	-$1.830M	$170.0K	$20.00K
YoY Change	-9250.0%	-270.0%	-120.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities	-280.0K	-610.0K	0.000
YoY Change
NET CHANGE
Cash From Operating Activities	-3.670M	10.98M	-5.840M
Cash From Investing Activities	-1.830M	170.0K	20.00K
Cash From Financing Activities	-280.0K	-610.0K	0.000
Net Change In Cash	-5.780M	10.54M	-5.820M
YoY Change	-0.69%	-227.6%	-20.92%
FREE CASH FLOW
Cash From Operating Activities	-$3.670M	$10.98M	-$5.840M
Capital Expenditures	-$90.00K	$0.00	$0.00
Free Cash Flow	-$3.580M	$10.98M	-$5.840M
YoY Change	-38.7%	-234.56%	-18.44%

Facts In Submission

Frame	Concept Type	Concept / XBRL Key	Value	Unit
CY2016Q3	us-gaap	Additional Paid In Capital AdditionalPaidInCapital	243450000	USD
CY2015Q4	us-gaap	Additional Paid In Capital AdditionalPaidInCapital	237246000	USD
CY2016Q3	us-gaap	Liabilities And Stockholders Equity LiabilitiesAndStockholdersEquity	35317000	USD
CY2016Q3	us-gaap	Derivative Liabilities Noncurrent DerivativeLiabilitiesNoncurrent	601000	USD
CY2015Q4	us-gaap	Derivative Liabilities Noncurrent DerivativeLiabilitiesNoncurrent	416000	USD
CY2016Q3	us-gaap	Other Liabilities Noncurrent OtherLiabilitiesNoncurrent	119000	USD
CY2015Q4	us-gaap	Other Liabilities Noncurrent OtherLiabilitiesNoncurrent	386000	USD
CY2016Q3	us-gaap	Common Stock Value CommonStockValue	158000	USD
CY2015Q4	us-gaap	Common Stock Value CommonStockValue	132000	USD
CY2015Q3	us-gaap	Interest Expense InterestExpense	1708000	USD
CY2015Q4	us-gaap	Liabilities And Stockholders Equity LiabilitiesAndStockholdersEquity	50459000	USD
CY2016Q3	us-gaap	Goodwill Goodwill	4863000	USD
CY2015Q4	us-gaap	Goodwill Goodwill	4863000	USD
CY2016Q3	us-gaap	Commitments And Contingencies CommitmentsAndContingencies		USD
CY2015Q4	us-gaap	Commitments And Contingencies CommitmentsAndContingencies		USD
CY2016Q3	us-gaap	Accounts Receivable Net Current AccountsReceivableNetCurrent	1833000	USD
CY2015Q4	us-gaap	Accounts Receivable Net Current AccountsReceivableNetCurrent	246000	USD
CY2016Q3	us-gaap	Inventory Net InventoryNet	408000	USD
CY2015Q4	us-gaap	Inventory Net InventoryNet	379000	USD
CY2016Q3	fh	Accounts Payable Accrued Expenses And Other Current Liabilities AccountsPayableAccruedExpensesAndOtherCurrentLiabilities	7421000	USD
CY2015Q4	fh	Accounts Payable Accrued Expenses And Other Current Liabilities AccountsPayableAccruedExpensesAndOtherCurrentLiabilities	5855000	USD
CY2016Q3	us-gaap	Deferred Revenue Current DeferredRevenueCurrent	453000	USD
CY2015Q4	us-gaap	Deferred Revenue Current DeferredRevenueCurrent	175000	USD
CY2016Q3	us-gaap	Senior Notes Current SeniorNotesCurrent	0	USD
CY2015Q4	us-gaap	Senior Notes Current SeniorNotesCurrent	3111000	USD
CY2016Q3	us-gaap	Liabilities Liabilities	8594000	USD
CY2015Q4	us-gaap	Liabilities Liabilities	9943000	USD
	us-gaap	Unrealized Gain Loss On Derivatives UnrealizedGainLossOnDerivatives	1411000	USD
	us-gaap	Weighted Average Number Of Shares Outstanding Basic WeightedAverageNumberOfSharesOutstandingBasic	9688744	shares
	us-gaap	Weighted Average Number Of Diluted Shares Outstanding WeightedAverageNumberOfDilutedSharesOutstanding	9688744	shares
	us-gaap	Interest Expense InterestExpense	2173000	USD
	us-gaap	Gains Losses On Extinguishment Of Debt GainsLossesOnExtinguishmentOfDebt	-1254000	USD
	us-gaap	Licenses Revenue LicensesRevenue	150000	USD
	us-gaap	Sales Revenue Goods Net SalesRevenueGoodsNet	0	USD
	us-gaap	Revenues Revenues	150000	USD
	us-gaap	Net Income Loss NetIncomeLoss	-27356000	USD
	us-gaap	Earnings Per Share Basic EarningsPerShareBasic	-2.82
	us-gaap	Earnings Per Share Diluted EarningsPerShareDiluted	-2.82
CY2016Q3	us-gaap	Operating Income Loss OperatingIncomeLoss	-3777000	USD
CY2015Q3	us-gaap	Operating Income Loss OperatingIncomeLoss	-9690000	USD
CY2016Q3	us-gaap	Unrealized Gain Loss On Derivatives UnrealizedGainLossOnDerivatives	-272000	USD
CY2015Q3	us-gaap	Unrealized Gain Loss On Derivatives UnrealizedGainLossOnDerivatives	716000	USD
CY2016Q3	us-gaap	Weighted Average Number Of Shares Outstanding Basic WeightedAverageNumberOfSharesOutstandingBasic	15473895	shares
CY2015Q3	us-gaap	Weighted Average Number Of Shares Outstanding Basic WeightedAverageNumberOfSharesOutstandingBasic	10246624	shares
CY2016Q3	us-gaap	Weighted Average Number Of Diluted Shares Outstanding WeightedAverageNumberOfDilutedSharesOutstanding	15473895	shares
CY2015Q3	us-gaap	Weighted Average Number Of Diluted Shares Outstanding WeightedAverageNumberOfDilutedSharesOutstanding	10246624	shares
	us-gaap	Effect Of Exchange Rate On Cash And Cash Equivalents EffectOfExchangeRateOnCashAndCashEquivalents	0	USD
CY2014Q4	us-gaap	Cash And Cash Equivalents At Carrying Value CashAndCashEquivalentsAtCarryingValue	16023000	USD
	fh	Amortization And Impairment Of Intangible Assets AmortizationAndImpairmentOfIntangibleAssets	2436000	USD
CY2016Q3	us-gaap	Selling General And Administrative Expense SellingGeneralAndAdministrativeExpense	3955000	USD
CY2015Q3	us-gaap	Selling General And Administrative Expense SellingGeneralAndAdministrativeExpense	2095000	USD
CY2016Q3	us-gaap	Interest Expense InterestExpense	949000	USD
CY2016Q3	us-gaap	Gains Losses On Extinguishment Of Debt GainsLossesOnExtinguishmentOfDebt	-262000	USD
CY2015Q3	us-gaap	Gains Losses On Extinguishment Of Debt GainsLossesOnExtinguishmentOfDebt	-1044000	USD
CY2016Q3	us-gaap	Licenses Revenue LicensesRevenue	1350000	USD
CY2015Q3	us-gaap	Licenses Revenue LicensesRevenue	0	USD
CY2016Q3	us-gaap	Sales Revenue Goods Net SalesRevenueGoodsNet	1755000	USD
CY2015Q3	us-gaap	Sales Revenue Goods Net SalesRevenueGoodsNet	0	USD
CY2016Q3	us-gaap	Revenues Revenues	3105000	USD
CY2015Q3	us-gaap	Revenues Revenues	0	USD
CY2016Q3	us-gaap	Net Income Loss NetIncomeLoss	-5261000	USD
CY2015Q3	us-gaap	Net Income Loss NetIncomeLoss	-11871000	USD
CY2016Q3	us-gaap	Earnings Per Share Basic EarningsPerShareBasic	-0.34
CY2015Q3	us-gaap	Earnings Per Share Basic EarningsPerShareBasic	-1.16
CY2016Q3	us-gaap	Earnings Per Share Diluted EarningsPerShareDiluted	-0.34
CY2015Q3	us-gaap	Earnings Per Share Diluted EarningsPerShareDiluted	-1.16
CY2016Q3	us-gaap	Other Nonoperating Income Expense OtherNonoperatingIncomeExpense	-1000	USD
CY2015Q3	us-gaap	Other Nonoperating Income Expense OtherNonoperatingIncomeExpense	-145000	USD
	us-gaap	Other Nonoperating Income Expense OtherNonoperatingIncomeExpense	147000	USD
	us-gaap	Other Nonoperating Income Expense OtherNonoperatingIncomeExpense	-322000	USD
CY2016Q3	us-gaap	Cost Of Revenue CostOfRevenue	1560000	USD
CY2015Q3	us-gaap	Cost Of Revenue CostOfRevenue	0	USD
	us-gaap	Cost Of Revenue CostOfRevenue	4866000	USD
	us-gaap	Cost Of Revenue CostOfRevenue	0	USD
CY2016Q3	us-gaap	Legal Fees LegalFees	894000	USD
CY2015Q3	us-gaap	Legal Fees LegalFees	6776000	USD
	us-gaap	Legal Fees LegalFees	2469000	USD
	us-gaap	Legal Fees LegalFees	15341000	USD
CY2016Q3	fh	Amortization And Impairment Of Intangible Assets AmortizationAndImpairmentOfIntangibleAssets	203000	USD
CY2015Q3	fh	Amortization And Impairment Of Intangible Assets AmortizationAndImpairmentOfIntangibleAssets	819000	USD
	fh	Amortization And Impairment Of Intangible Assets AmortizationAndImpairmentOfIntangibleAssets	13404000	USD
	us-gaap	Selling General And Administrative Expense SellingGeneralAndAdministrativeExpense	10212000	USD
	us-gaap	Selling General And Administrative Expense SellingGeneralAndAdministrativeExpense	7391000	USD
CY2016Q3	us-gaap	Costs And Expenses CostsAndExpenses	6882000	USD
CY2015Q3	us-gaap	Costs And Expenses CostsAndExpenses	9690000	USD
	us-gaap	Costs And Expenses CostsAndExpenses	34609000	USD
	us-gaap	Costs And Expenses CostsAndExpenses	25168000	USD
	us-gaap	Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	1447000	USD
	us-gaap	Stock Issued During Period Value New Issues StockIssuedDuringPeriodValueNewIssues	3049000	USD
	us-gaap	Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	4191000	USD
	fh	Adjustments To Additional Paid In Capital Conversion Of Derivative Warrants Into Equity Warrants AdjustmentsToAdditionalPaidInCapitalConversionOfDerivativeWarrantsIntoEquityWarrants	175000	USD
CY2014Q4	us-gaap	Stockholders Equity StockholdersEquity	31180000	USD
CY2015Q3	us-gaap	Stockholders Equity StockholdersEquity	16702000	USD
	us-gaap	Share Based Compensation ShareBasedCompensation	1447000	USD
	us-gaap	Share Based Compensation ShareBasedCompensation	4191000	USD
	us-gaap	Foreign Currency Transaction Gain Loss Unrealized ForeignCurrencyTransactionGainLossUnrealized	76000	USD
	us-gaap	Foreign Currency Transaction Gain Loss Unrealized ForeignCurrencyTransactionGainLossUnrealized	-361000	USD
	us-gaap	Increase Decrease In Other Current Assets IncreaseDecreaseInOtherCurrentAssets	-129000	USD
	us-gaap	Increase Decrease In Other Current Assets IncreaseDecreaseInOtherCurrentAssets	466000	USD
	us-gaap	Increase Decrease In Accounts Payable And Accrued Liabilities IncreaseDecreaseInAccountsPayableAndAccruedLiabilities	1571000	USD
	us-gaap	Increase Decrease In Accounts Payable And Accrued Liabilities IncreaseDecreaseInAccountsPayableAndAccruedLiabilities	5223000	USD
CY2015Q3	us-gaap	Cash And Cash Equivalents At Carrying Value CashAndCashEquivalentsAtCarryingValue	14402000	USD
	us-gaap	Net Cash Provided By Used In Financing Activities Continuing Operations NetCashProvidedByUsedInFinancingActivitiesContinuingOperations	-327000	USD
	us-gaap	Cash And Cash Equivalents Period Increase Decrease CashAndCashEquivalentsPeriodIncreaseDecrease	-1621000	USD
	us-gaap	Increase Decrease In Other Operating Liabilities IncreaseDecreaseInOtherOperatingLiabilities	-267000	USD
	us-gaap	Increase Decrease In Other Operating Liabilities IncreaseDecreaseInOtherOperatingLiabilities	0	USD
	us-gaap	Interest Paid InterestPaid	40000	USD
	us-gaap	Interest Paid InterestPaid	0	USD
	us-gaap	Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount	2605033	shares
	us-gaap	Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount	3132486	shares
CY2016Q3	us-gaap	Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount	2499113	shares
CY2015Q3	us-gaap	Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount	3013438	shares
CY2015Q4	us-gaap	Business Combination Consideration Transferred Equity Interests Issued And Issuable BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable	5378000	USD
CY2015Q4	us-gaap	Noncash Or Part Noncash Acquisition Debt Assumed1 NoncashOrPartNoncashAcquisitionDebtAssumed1	193000	USD
CY2015Q4	us-gaap	Business Combination Consideration Transferred1 BusinessCombinationConsiderationTransferred1	5571000	USD
CY2015Q4	us-gaap	Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Cash And Equivalents BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents	144000	USD
CY2015Q4	us-gaap	Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets Receivables BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsReceivables	245000	USD
	us-gaap	Net Cash Provided By Used In Financing Activities Continuing Operations NetCashProvidedByUsedInFinancingActivitiesContinuingOperations	12207000	USD
	fh	Conversion Original Debt And Interest Amount ConversionOriginalDebtAndInterestAmount	2996000	USD
	fh	Conversion Original Debt And Interest Amount ConversionOriginalDebtAndInterestAmount	8512000	USD
	us-gaap	Depreciation And Amortization DepreciationAndAmortization	1467000	USD
	us-gaap	Depreciation And Amortization DepreciationAndAmortization	2657000	USD
	fh	Adjustments To Additional Paid In Capital Conversion Of Derivative Warrants Into Equity Warrants AdjustmentsToAdditionalPaidInCapitalConversionOfDerivativeWarrantsIntoEquityWarrants	0	USD
	fh	Increase Decrease Fair Value Of Warrants And Conversion Feature IncreaseDecreaseFairValueOfWarrantsAndConversionFeature	185000	USD
	fh	Increase Decrease Fair Value Of Warrants And Conversion Feature IncreaseDecreaseFairValueOfWarrantsAndConversionFeature	-1411000	USD
	us-gaap	Extinguishment Of Debt Amount ExtinguishmentOfDebtAmount	356000	USD
	us-gaap	Extinguishment Of Debt Amount ExtinguishmentOfDebtAmount	1409000	USD
	fh	Debt Discount DebtDiscount	0	USD
	fh	Debt Discount DebtDiscount	2961000	USD
	us-gaap	Impairment Of Intangible Assets Excluding Goodwill ImpairmentOfIntangibleAssetsExcludingGoodwill	11937000	USD
	us-gaap	Impairment Of Intangible Assets Excluding Goodwill ImpairmentOfIntangibleAssetsExcludingGoodwill	0	USD
	fh	Amendment To Warrants As Part Of Debt Modification AmendmentToWarrantsAsPartOfDebtModification	-281000	USD
	fh	Amendment To Warrants As Part Of Debt Modification AmendmentToWarrantsAsPartOfDebtModification	0	USD
	us-gaap	Amortization Of Financing Costs And Discounts AmortizationOfFinancingCostsAndDiscounts	1871000	USD
	us-gaap	Amortization Of Financing Costs And Discounts AmortizationOfFinancingCostsAndDiscounts	1839000	USD
	us-gaap	Increase Decrease In Accounts Receivable IncreaseDecreaseInAccountsReceivable	0	USD
	us-gaap	Increase Decrease In Inventories IncreaseDecreaseInInventories	0	USD
	us-gaap	Increase Decrease In Deferred Revenue IncreaseDecreaseInDeferredRevenue	0	USD
	us-gaap	Net Cash Provided By Used In Operating Activities Continuing Operations NetCashProvidedByUsedInOperatingActivitiesContinuingOperations	-2969000	USD
	us-gaap	Net Cash Provided By Used In Operating Activities Continuing Operations NetCashProvidedByUsedInOperatingActivitiesContinuingOperations	-13553000	USD
	us-gaap	Payments To Acquire Property Plant And Equipment PaymentsToAcquirePropertyPlantAndEquipment	243000	USD
	us-gaap	Payments To Acquire Property Plant And Equipment PaymentsToAcquirePropertyPlantAndEquipment	0	USD
	us-gaap	Increase Decrease In Deposits Outstanding IncreaseDecreaseInDepositsOutstanding	272000	USD
	us-gaap	Increase Decrease In Deposits Outstanding IncreaseDecreaseInDepositsOutstanding	-2001000	USD
	us-gaap	Net Cash Provided By Used In Investing Activities Continuing Operations NetCashProvidedByUsedInInvestingActivitiesContinuingOperations	24000	USD
	us-gaap	Net Cash Provided By Used In Investing Activities Continuing Operations NetCashProvidedByUsedInInvestingActivitiesContinuingOperations	-272000	USD
	fh	Proceeds From Issuance Of Notes Payable And Warrants ProceedsFromIssuanceOfNotesPayableAndWarrants	0	USD
	fh	Proceeds From Issuance Of Notes Payable And Warrants ProceedsFromIssuanceOfNotesPayableAndWarrants	12425000	USD
	us-gaap	Payments Of Debt Issuance Costs PaymentsOfDebtIssuanceCosts	218000	USD
	us-gaap	Payments Of Debt Issuance Costs PaymentsOfDebtIssuanceCosts	50000	USD
CY2015Q4	us-gaap	Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Inventory BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory	234000	USD
CY2015Q4	us-gaap	Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets Prepaid Expense And Other Assets BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets	18000	USD
CY2015Q4	us-gaap	Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssets	641000	USD
CY2015Q4	us-gaap	Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Intangible Assets Other Than Goodwill BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill	2146000	USD
CY2015Q4	us-gaap	Goodwill Goodwill	4863000	USD
CY2015Q4	us-gaap	Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Assets BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets	7650000	USD
CY2015Q4	us-gaap	Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Accounts Payable BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccountsPayable	464000	USD
CY2015Q4	fh	Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Credit Line BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesCreditLine	270000	USD
CY2015Q4	fh	Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Accrued Expenses BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccruedExpenses	44000	USD
CY2015Q4	us-gaap	Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Other BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesOther	173000	USD
CY2015Q4	us-gaap	Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deferred Tax Liabilities Current BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesCurrent	866000	USD
CY2015Q4	us-gaap	Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Liabilities BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedLiabilities	1817000	USD
CY2015Q4	us-gaap	Business Combination Acquisition Of Less Than100 Percent Noncontrolling Interest Fair Value BusinessCombinationAcquisitionOfLessThan100PercentNoncontrollingInterestFairValue	262000	USD
CY2015Q4	us-gaap	Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Less Noncontrolling Interest BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedLessNoncontrollingInterest	5571000	USD
CY2015Q4	us-gaap	Finite Lived Intangible Assets Accumulated Amortization FiniteLivedIntangibleAssetsAccumulatedAmortization	13883000	USD
CY2016Q3	us-gaap	Finite Lived Intangible Assets Gross FiniteLivedIntangibleAssetsGross	30602000	USD
CY2015Q4	us-gaap	Finite Lived Intangible Assets Gross FiniteLivedIntangibleAssetsGross	30359000	USD
CY2016Q3	us-gaap	Amortization Of Intangible Assets AmortizationOfIntangibleAssets	203000	USD
CY2015Q3	us-gaap	Amortization Of Intangible Assets AmortizationOfIntangibleAssets	819000	USD
	us-gaap	Amortization Of Intangible Assets AmortizationOfIntangibleAssets	1467000	USD
	us-gaap	Amortization Of Intangible Assets AmortizationOfIntangibleAssets	2436000	USD
CY2016Q3	fh	Carrying Value Percentage Of Patents CarryingValuePercentageOfPatents	0.887	pure
CY2016Q2	us-gaap	Finite Lived Intangible Assets Net FiniteLivedIntangibleAssetsNet	1526000	USD
	us-gaap	Nonoperating Income Expense NonoperatingIncomeExpense	-1925000	USD
	us-gaap	Nonoperating Income Expense NonoperatingIncomeExpense	-2338000	USD
	us-gaap	Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest	-20023000	USD
	us-gaap	Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest	-27356000	USD
	fh	Operating Loss OperatingLoss	18098000	USD
	fh	Operating Loss OperatingLoss	25018000	USD
CY2016Q3	us-gaap	Nonoperating Income Expense NonoperatingIncomeExpense	-1484000	USD
CY2015Q3	us-gaap	Nonoperating Income Expense NonoperatingIncomeExpense	-2181000	USD
CY2016Q3	us-gaap	Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest	-5261000	USD
CY2015Q3	us-gaap	Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest	-11871000	USD
CY2016Q3	fh	Operating Loss OperatingLoss	3777000	USD
CY2015Q3	fh	Operating Loss OperatingLoss	9690000	USD
CY2016Q1	us-gaap	Extinguishment Of Debt Amount ExtinguishmentOfDebtAmount	210000	USD
CY2016Q1	us-gaap	Payments Of Debt Issuance Costs PaymentsOfDebtIssuanceCosts	50000	USD
CY2016Q3	us-gaap	Repayments Of Debt RepaymentsOfDebt	2011000	USD
CY2016Q3	fh	Additional Payment Percentage On Early Repayment AdditionalPaymentPercentageOnEarlyRepayment	0.15	pure
CY2016Q2	us-gaap	Common Stock Par Or Stated Value Per Share CommonStockParOrStatedValuePerShare	0.01
CY2016Q2	us-gaap	Impairment Of Intangible Assets Excluding Goodwill ImpairmentOfIntangibleAssetsExcludingGoodwill	11937000	USD
	us-gaap	Goodwill And Intangible Asset Impairment GoodwillAndIntangibleAssetImpairment	11937000	USD
CY2016Q3	fh	Warrants Or Rights Outstanding WarrantsOrRightsOutstanding	469179	shares
CY2015Q4	us-gaap	Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber	871484	shares
	us-gaap	Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross	730000	shares
	us-gaap	Stock Issued During Period Shares Stock Options Exercised StockIssuedDuringPeriodSharesStockOptionsExercised	0	shares
	us-gaap	Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod	100050	shares
	us-gaap	Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod	9000	shares
CY2016Q3	us-gaap	Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber	1492434	shares
CY2016Q3	us-gaap	Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber	995767	shares
CY2015Q4	us-gaap	Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice	30.65
	us-gaap	Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice	1.66
	us-gaap	Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice	0
	us-gaap	Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice	27.88
	us-gaap	Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice	55
CY2016Q3	us-gaap	Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice	16.51
CY2016Q3	us-gaap	Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice	23.65
CY2015Q4	us-gaap	Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue	20.49
	us-gaap	Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue	0.89
CY2016Q3	us-gaap	Common Stock Shares Issued CommonStockSharesIssued	15799881	shares
CY2015Q4	us-gaap	Common Stock Shares Issued CommonStockSharesIssued	13220050	shares
CY2016Q3	us-gaap	Common Stock Shares Outstanding CommonStockSharesOutstanding	15799881	shares
CY2015Q4	us-gaap	Common Stock Shares Outstanding CommonStockSharesOutstanding	13220050	shares
CY2016Q3	us-gaap	Allocated Share Based Compensation Expense AllocatedShareBasedCompensationExpense	485000	USD
CY2015Q3	us-gaap	Allocated Share Based Compensation Expense AllocatedShareBasedCompensationExpense	1066000	USD
	us-gaap	Allocated Share Based Compensation Expense AllocatedShareBasedCompensationExpense	1447000	USD
	us-gaap	Allocated Share Based Compensation Expense AllocatedShareBasedCompensationExpense	4191000	USD
	us-gaap	Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Weighted Average Grant Date Fair Value SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue	0
	us-gaap	Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Options Forfeited Weighted Average Grant Date Fair Value SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue	17.04
	fh	Share Based Compensation Arrangement By Share Based Payment Award Vested Options Expired Weighted Average Grant Date Fair Value ShareBasedCompensationArrangementByShareBasedPaymentAwardVestedOptionsExpiredWeightedAverageGrantDateFairValue	26.2
CY2016Q3	us-gaap	Share Based Compensation ShareBasedCompensation	485000	USD
CY2015Q3	us-gaap	Share Based Compensation ShareBasedCompensation	1066000	USD
CY2016Q3	us-gaap	Operating Leases Rent Expense Net OperatingLeasesRentExpenseNet	109000	USD
	us-gaap	Operating Leases Rent Expense Net OperatingLeasesRentExpenseNet	274000	USD
	us-gaap	Operating Leases Rent Expense Net OperatingLeasesRentExpenseNet	327000	USD
CY2015Q3	us-gaap	Operating Leases Rent Expense Net OperatingLeasesRentExpenseNet	91000	USD
CY2016Q3	us-gaap	Common Stock Par Or Stated Value Per Share CommonStockParOrStatedValuePerShare	0.01
CY2015Q4	us-gaap	Common Stock Par Or Stated Value Per Share CommonStockParOrStatedValuePerShare	0.01
CY2016Q3	us-gaap	Common Stock Shares Authorized CommonStockSharesAuthorized	150000000	shares
CY2015Q4	us-gaap	Common Stock Shares Authorized CommonStockSharesAuthorized	150000000	shares
	us-gaap	Use Of Estimates UseOfEstimates	<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif"> <b><i>(b) Use of estimates</i></b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The preparation of the accompanying condensed 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 condensed 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 valuation of intangible 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.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
	us-gaap	Prior Period Reclassification Adjustment Description PriorPeriodReclassificationAdjustmentDescription	<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif"> <b><i>(d) Reclassification</i></b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font>On November 27, 2015, the Company implemented the Reverse Stock Split, which became effective at the opening of trading on the NASDAQ on that date. As of November 27, 2015, every 10 shares of the Company’s issued and outstanding common stock were combined into one share of its common stock, except to the extent that the Reverse Stock Split resulted in any of the Company’s stockholders owning a fractional share, which was rounded up to the next highest whole share. In connection with the Reverse Stock Split, there was no change in the nominal par value per share of $0.01 and the Company’s authorized shares.</div> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Certain balances have been reclassified to conform to presentation requirements, including to retroactively present the effect of the Reverse Stock Split. All references to the number of shares of common stock, price per share and weighted average shares of common stock have been adjusted to reflect the Reverse Stock Split on a retroactive basis for all periods presented, unless otherwise noted.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">As a result of the adoption by the Company of <i> ASU No. 2015-03</i> on a retrospective basis, during the nine-month period ended September 30, 2016, the Company reclassified $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">73</font> of debt issuance costs as of December 31, 2015 from other current assets to senior secured notes.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
	us-gaap	Revenue Recognition Deferred Revenue RevenueRecognitionDeferredRevenue	<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b><i>(f) Deferred revenue</i></b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Deferred revenue includes (i) payments received from customers in advance of providing the product and (ii) amounts deferred if other conditions of revenue recognition have not been met. The Company accounts for funds raised from crowdfunding campaigns and pre-sales as deferred revenue.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2015Q4	us-gaap	Stockholders Equity Note Stock Split StockholdersEquityNoteStockSplit	On November 27, 2015, the Company implemented the Reverse Stock Split, which became effective at the opening of trading on the NASDAQ on that date. As of November 27, 2015, every 10 shares of the Companys issued and outstanding common stock were combined into one share of its common stock, except to the extent that the Reverse Stock Split resulted in any of the Companys stockholders owning a fractional share, which was rounded up to the next highest whole share. In connection with the Reverse Stock Split, there was no change in the nominal par value per share of $0.01 and the Companys authorized shares.
CY2016Q1	fh	Old Conversion Price Of Warrants OldConversionPriceOfWarrants	10.00
CY2016Q1	fh	New Conversion Price Of Warrants NewConversionPriceOfWarrants	3.00
	us-gaap	Stock Issued During Period Value Restricted Stock Award Net Of Forfeitures StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures	0	USD
	us-gaap	Stock Issued During Period Value Other StockIssuedDuringPeriodValueOther	1734000	USD
	us-gaap	Stock Issued During Period Value New Issues StockIssuedDuringPeriodValueNewIssues	8512000	USD
	us-gaap	Issuance Of Stock And Warrants For Services Or Claims IssuanceOfStockAndWarrantsForServicesOrClaims	53000	USD
	us-gaap	Issuance Of Stock And Warrants For Services Or Claims IssuanceOfStockAndWarrantsForServicesOrClaims	0	USD
CY2015Q3	fh	General And Administrative Expensesaccounting And Audit GeneralAndAdministrativeExpensesaccountingAndAudit	150000	USD
	fh	General And Administrative Expensesaccounting And Audit GeneralAndAdministrativeExpensesaccountingAndAudit	387000	USD
	fh	General And Administrative Expensesaccounting And Audit GeneralAndAdministrativeExpensesaccountingAndAudit	446000	USD
CY2016Q3	us-gaap	Marketing And Advertising Expense MarketingAndAdvertisingExpense	110000	USD
CY2015Q3	us-gaap	Marketing And Advertising Expense MarketingAndAdvertisingExpense	0	USD
	us-gaap	Payments To Acquire Investments PaymentsToAcquireInvestments	1734000	USD
	us-gaap	Payments To Acquire Investments PaymentsToAcquireInvestments	0	USD
	us-gaap	Proceeds From Issuance Of Common Stock ProceedsFromIssuanceOfCommonStock	1734000	USD
	us-gaap	Proceeds From Issuance Of Common Stock ProceedsFromIssuanceOfCommonStock	0	USD
	us-gaap	Proceeds From Repayments Of Debt ProceedsFromRepaymentsOfDebt	-2011000	USD
	us-gaap	Proceeds From Repayments Of Debt ProceedsFromRepaymentsOfDebt	0	USD
CY2016Q3	us-gaap	Marketable Securities Current MarketableSecuritiesCurrent	1734000	USD
CY2015Q4	us-gaap	Marketable Securities Current MarketableSecuritiesCurrent	0	USD
CY2016Q3	us-gaap	Royalty Expense RoyaltyExpense	270000	USD
CY2015Q3	us-gaap	Royalty Expense RoyaltyExpense	0	USD
	us-gaap	Royalty Expense RoyaltyExpense	3658000	USD
	us-gaap	Royalty Expense RoyaltyExpense	0	USD
CY2016Q3	us-gaap	Sales Commissions And Fees SalesCommissionsAndFees	1041000	USD
CY2015Q3	us-gaap	Sales Commissions And Fees SalesCommissionsAndFees	419000	USD
	us-gaap	Sales Commissions And Fees SalesCommissionsAndFees	2722000	USD
	us-gaap	Sales Commissions And Fees SalesCommissionsAndFees	1504000	USD
CY2016Q3	fh	General And Administrative Expenses Stockbased Compensation GeneralAndAdministrativeExpensesStockbasedCompensation	426000	USD
CY2015Q3	fh	General And Administrative Expenses Stockbased Compensation GeneralAndAdministrativeExpensesStockbasedCompensation	936000	USD
	fh	General And Administrative Expenses Stockbased Compensation GeneralAndAdministrativeExpensesStockbasedCompensation	1256000	USD
	fh	General And Administrative Expenses Stockbased Compensation GeneralAndAdministrativeExpensesStockbasedCompensation	3560000	USD
CY2016Q3	fh	General And Administrative Expenseslegal Merger And Acquisition And Financing GeneralAndAdministrativeExpenseslegalMergerAndAcquisitionAndFinancing	1053000	USD
CY2015Q3	fh	General And Administrative Expenseslegal Merger And Acquisition And Financing GeneralAndAdministrativeExpenseslegalMergerAndAcquisitionAndFinancing	76000	USD
	fh	General And Administrative Expenseslegal Merger And Acquisition And Financing GeneralAndAdministrativeExpenseslegalMergerAndAcquisitionAndFinancing	1436000	USD
	fh	General And Administrative Expenseslegal Merger And Acquisition And Financing GeneralAndAdministrativeExpenseslegalMergerAndAcquisitionAndFinancing	247000	USD
CY2016Q3	fh	General And Administrative Expensesaccounting And Audit GeneralAndAdministrativeExpensesaccountingAndAudit	99000	USD
	us-gaap	Marketing And Advertising Expense MarketingAndAdvertisingExpense	856000	USD
	us-gaap	Marketing And Advertising Expense MarketingAndAdvertisingExpense	0	USD
CY2015Q3	fh	General And Administrative Expensesproduct Development GeneralAndAdministrativeExpensesproductDevelopment	0	USD
CY2016Q3	fh	General And Administrative Expensesproduct Development GeneralAndAdministrativeExpensesproductDevelopment	113000	USD
	fh	General And Administrative Expensesproduct Development GeneralAndAdministrativeExpensesproductDevelopment	634000	USD
	fh	General And Administrative Expensesproduct Development GeneralAndAdministrativeExpensesproductDevelopment	0	USD
CY2016Q3	us-gaap	General Insurance Expense GeneralInsuranceExpense	121000	USD
CY2015Q3	us-gaap	General Insurance Expense GeneralInsuranceExpense	191000	USD
	us-gaap	General Insurance Expense GeneralInsuranceExpense	516000	USD
	us-gaap	General Insurance Expense GeneralInsuranceExpense	496000	USD
CY2016Q3	us-gaap	Other General And Administrative Expense OtherGeneralAndAdministrativeExpense	992000	USD
CY2015Q3	us-gaap	Other General And Administrative Expense OtherGeneralAndAdministrativeExpense	323000	USD
	us-gaap	Other General And Administrative Expense OtherGeneralAndAdministrativeExpense	2405000	USD
	us-gaap	Other General And Administrative Expense OtherGeneralAndAdministrativeExpense	1138000	USD
	us-gaap	Nature Of Operations NatureOfOperations	<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="center"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><strong><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Note 1. General</font></strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><strong><i>Overview</i></strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">On May 6, 2016, Vringo, Inc. changed its name to FORM Holdings Corp. (“FORM” or the “Company”) and concurrently announced its repositioning as a holding company of small and middle market growth companies. The Company’s focus is on acquiring and building companies that would benefit from:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both">•</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">additional capital;</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both">•</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">exposure to visibility from the public markets;</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both">•</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">talent recruiting;</div> </td> </tr> </table>   <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both">•</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">rebranding; and</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both">•</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">implementation of best practices.</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The Company’s management team is committed to execute on its strategy. The Company is industry agnostic, but limits the scope of its pipeline by looking only at companies with a clear path to grow in excess of $100,000 in revenue.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The Company’s common stock, par value $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">0.01</font> per share, which was previously listed on the NASDAQ Capital Market under the trading symbol “VRNG,” has been listed under the trading symbol “FH” since May 9, 2016.</div>  </div> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The Company currently has three operating segments:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both">•</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">Group Mobile</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both">•</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">FLI Charge</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both">•</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">Intellectual property</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Group Mobile is a growing premier supplier of innovative and full-service mobile technology solutions, including rugged computers, tablets, mobile devices, accessories, a full suite of professional services and other related products geared toward emergency first responders, municipalities and corporations. In addition, Group Mobile specializes in high-quality customer service and support for those products.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">FLI Charge owns a patented conductive wireless charging technology and focuses on the development and commercialization of its technology through the direct-to-consumer sale of <font style="FONT-FAMILY:Times New Roman, Times, Serif"> conductive charging pads, phone cases, charging adaptors and other</font> enablements, as well as partnerships and licensing agreements in various industries. FLI Charge is currently working with partners <font style="FONT-FAMILY:Times New Roman, Times, Serif">to implement</font> FLI Charge technology <font style="FONT-FAMILY:Times New Roman, Times, Serif">in various fields such as furniture and automotive</font>. FLI Charge’s business model is based on manufacturing and commercializing its own conductive charging pads, phone cases, <font style="FONT-FAMILY:Times New Roman, Times, Serif">charging adaptors and other enablements as well as licensing its technology in exchange for recurring licensing revenue</font>.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The intellectual property operating segment is focused on the innovation, development and monetization of intellectual property. The Company’s portfolio consists of over 600 patents and patent applications covering <font style="FONT-FAMILY:Times New Roman, Times, Serif">a range of technologies including</font> telecom infrastructure, <font style="FONT-FAMILY:Times New Roman, Times, Serif">mobile devices, remote monitoring and</font> ad-insertion.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Prior to December 31, 2013, the Company operated a global platform for the distribution of mobile social applications and services. On February 18, 2014, the Company sold its mobile social application business to InfoMedia Services Limited (“InfoMedia”), receiving an <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 8.25</font>% ownership interest in InfoMedia as consideration and a seat on the board of directors of InfoMedia. As part of the transaction, the Company has the opportunity to license certain intellectual property assets and work with InfoMedia to identify and protect new intellectual property.</div> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><font style="COLOR: #181818">On August 8, 2016, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with FHXMS, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company (the “Merger Sub”), XpresSpa Holdings, LLC, a Delaware limited liability company (“XpresSpa”), the unitholders of XpresSpa who are parties thereto (the “Unitholders”) and Mistral XH Representative, LLC, as representative of the Unitholders (the “Representative”), pursuant to which the Merger Sub will merge with and into XpresSpa, with XpresSpa being the surviving entity and a wholly-owned subsidiary of the Company (the “Surviving Entity”) and the Unitholders becoming stockholders of FORM (the “Merger”).</font> The Company is holding its annual meeting of stockholders on November 28, 2016 to approve, among other things, the Merger and the issuance of shares of FORM Common Stock, FORM Preferred Stock and warrants to the Unitholders in connection with the Merger. Assuming stockholder approval is received, the Company expects to complete the Merger shortly after the stockholders vote.</div>   <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Each of the Company’s operating segments are described below.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;BACKGROUND-COLOR: transparent; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><strong>Group Mobile</strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;BACKGROUND-COLOR: transparent; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><strong> </strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;BACKGROUND-COLOR: transparent; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Group Mobile is a growing and innovative full, end-to-end solution provider for project lifecycle services including system integration, hardware service support, pre- and post-deployment and customer support helpdesk. Group Mobile provides total hardware solutions, including rugged laptops, tablets and handheld computers. Group Mobile also markets rugged mobile printers, vehicle computer docking and mounting gear, power accessories, wireless communication products, antennas, carrying cases, and other peripherals, accessories and add-ons needed to maximize productivity in a mobile- or field-computing environment.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;BACKGROUND-COLOR: transparent; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;BACKGROUND-COLOR: transparent; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Group Mobile operates a full-service e-commerce website with live chat, up-to-date product information and computer system configuration capabilities. Group Mobile’s goal is to ensure that its customers purchase the best products and services for their specific requirements.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;BACKGROUND-COLOR: transparent; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Group Mobile purchases rugged mobile computing equipment and complementary products from its primary distribution and manufacturing partners and sells them to enterprises, resellers, and retail customers. Group Mobile’s primary customers range from corporations to local governments, emergency first responders and healthcare organizations. Group Mobile believes that its business is characterized by gross profits as a percentage of revenue slightly higher than is commonly found in resellers of computing devices. The market for rugged mobile computing products is trending towards an increase in the volume of unit sales combined with declining unit prices as the business transitions from primarily being comprised of laptops to one primarily comprised of rugged tablets. As this transition has occurred, Group Mobile is seeing shortened product life cycles and industry specific devices for segments such as healthcare. Group Mobile sets sale prices based on the market supply and demand characteristics for each particular product. Group Mobile is highly dependent on the end-market demand for rugged mobile computing products, which is influenced by many factors, including the introduction of new IT products by OEM, replacement cycles for existing rugged mobile computing products, overall economic growth, local and state budgets, and general business activity.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Product costs represent Group Mobile’s single largest expense and product inventory is one of the largest working capital investments for Group Mobile. Group Mobile’s primary suppliers include Synnex Corporation, Ingram Micro Inc., and Xplore Technologies Corporation, which, combined, represent approximately 80% of Group Mobile’s inventory purchases. Group Mobile has reseller agreements with most of its OEM and distribution partners. These agreements usually provide for nonexclusive resale and distribution rights. The agreements are generally short-term, subject to periodic renewal, and often contain provisions permitting termination by either Group Mobile or the supplier without cause upon relatively short notice. Furthermore, product procurement from the OEM suppliers is a highly complex process and, as such, efficient and effective purchasing operations are critical to Group Mobile’s success.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;CLEAR: both" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"><strong>FLI Charge</strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><i> </i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">FLI Charge is a wireless power company dedicated to simplifying the way people power and charge the multitude of mobile electronic devices they use on a daily basis. By eliminating the need to search and compete for outlets and charging cables, FLI Charge is improving the powering and charging experience for all currently existing battery and DC powered devices.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">FLI Charge designs, develops, licenses, manufactures and markets wireless conductive power and charging solutions. FLI Charge is currently working with partners in several verticals to bring products to market. These verticals include education, office, hospitality, automotive and consumer electronics among others. To date, FLI Charge has not yet generated any substantial revenue from its product sales. The Company believes that FLI Charge’s patented technology is the only wireless power solution that is fully interoperable between different mobile devices ranging from smartphones to power tools, and many more. FLI Charge’s wireless power solution can simultaneously power multiple devices on the same pad no matter their power requirements or positions on the pad.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">FLI Charge’s product line consists of power pads or surfaces as well as devices that are connected to or embedded with FLI Charge enabling technology. FLI Charge pads and surfaces are connected to a power source or battery. The surface of the pad has conductive contact strips that provide power and are constantly monitored by control circuitry that immediately halts power transfer if an unapproved load or short-circuit condition is detected. FLI Charge-enabled devices are embedded with the FLI Charge contact enablement that consists of four contact points, known as the “constellation.” The constellation is designed to make an immediate and continuous electrical connection with the contact strips regardless of the device’s orientation on the pad. The enablement monitors the power coming from the pad and ensures that the correct amount of power goes to the device. Once an approved FLI Charge device is placed on a pad, power is transferred immediately to charge or power the device.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">FLI Charge launched its consumer product line on Indiegogo, a crowdfunding platform, on June 15, 2016; the campaign was completed on August 15, 2016. <font style="FONT-FAMILY:Times New Roman, Times, Serif">The Company accounts for</font> funds raised from crowdfunding campaigns and presales, which were approximately $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">224</font>, as deferred revenue on the condensed consolidated balance sheets. FLI Charge expects to deliver products to the participants in the fourth quarter of 2016.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <strong> </strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><strong>Intellectual Property</strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The intellectual property operating segment is focused on the innovation, development and monetization of intellectual property. The Company’s portfolio consists of over 600 patents and patent applications covering <font style="FONT-FAMILY:Times New Roman, Times, Serif">a range of technologies including</font> telecom infrastructure, <font style="FONT-FAMILY:Times New Roman, Times, Serif">mobile devices, remote monitoring and</font> ad-insertion.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The Company is currently focused on monetizing its technology portfolio through a variety of value enhancing initiatives including, but not limited to, licensing, litigation and strategic partnerships.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"><strong><u><i>Recent Developments</i></u></strong></div>   <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"><i>XpresSpa</i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;CLEAR: both">  </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify">On August 8, 2016, the Company entered into the Merger Agreement with the Merger Sub, XpresSpa, the Unitholders and the Representative, pursuant to which the Merger Sub will merge with and into XpresSpa, with XpresSpa being the surviving entity and the Surviving Entity and the Unitholders becoming stockholders of FORM.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify">XpresSpa is a leading airport retailer of spa services and related products. It is a well-recognized and popular airport spa brand with nearly three times the number of U.S. locations as its closest competitor. It provides nearly 900,000 services per year. As of October 18, 2016, XpresSpa operated 51 total locations in 44 terminals and 21 airports in three countries. XpresSpa also sells wellness and travel products through its internet site, <u>www.xpresspa.com</u>. Services and products include:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> </div> </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"> </div> </td> <td style="WIDTH: 0.25in; FONT-SIZE: 10pt"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> •</font></div> </td> <td style="TEXT-ALIGN: justify; FONT-SIZE: 10pt"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> massage services for the neck, back, feet and whole body;</font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"> </div> </td> <td style="WIDTH: 0.25in; FONT-SIZE: 10pt"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> •</font></div> </td> <td style="TEXT-ALIGN: justify; FONT-SIZE: 10pt"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> nail care, such as pedicures, manicures and polish changes;</font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"> </div> </td> <td style="WIDTH: 0.25in; FONT-SIZE: 10pt"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> •</font></div> </td> <td style="TEXT-ALIGN: justify; FONT-SIZE: 10pt"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> beauty care services such as waxing and facials;</font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"> </div> </td> <td style="WIDTH: 0.25in; FONT-SIZE: 10pt"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> •</font></div> </td> <td style="TEXT-ALIGN: justify; FONT-SIZE: 10pt"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> hair care, such as haircuts and blow outs;</font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"> </div> </td> <td style="WIDTH: 0.25in; FONT-SIZE: 10pt"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> •</font></div> </td> <td style="TEXT-ALIGN: justify; FONT-SIZE: 10pt"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> wellness products such as massagers, lotions and aromatherapy aids; and</font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">  </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"> </div> </td> <td style="WIDTH: 0.25in; FONT-SIZE: 10pt"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> •</font></div> </td> <td style="TEXT-ALIGN: justify; FONT-SIZE: 10pt"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> travel products such as neck pillows, blankets, massage tools, travel kits and eye masks.</font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify">Upon completion of the Merger, (i) the then-outstanding common units of XpresSpa (other than those held by the Company, which will be cancelled without any consideration) and (ii) the then-outstanding preferred units of XpresSpa (other than those held by the Company, which will be cancelled without any consideration) will be automatically converted into the right to receive an aggregate of:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; COLOR: #181818; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both">(a)</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 2,500,000</font> shares of FORM common stock, par value $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">0.01</font> per share (“FORM Common Stock”),</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -0.25in; MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818">  </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both">(b)</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 494,792</font> shares of newly designated Series D Convertible Preferred Stock, par value $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">0.01</font> per share, of FORM (“FORM Preferred Stock”) with an aggregate initial liquidation preference of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">23,750</font>, and</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -0.25in; MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818">  </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both">(c)</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">five-year warrants to purchase an aggregate of <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 2,500,000</font> shares of FORM Common Stock, at an exercise price of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">3.00</font> per share, each subject to adjustment in the event of a stock split, dividend or similar events.</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The FORM Preferred Stock shall be initially convertible into an aggregate of <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 3,958,336</font> shares of FORM Common Stock, which equals a $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">6.00</font> per share conversion price, and each holder of FORM Preferred Stock shall be entitled to vote on an as converted basis. The FORM Preferred Stock is senior to the FORM Common Stock and the terms of the FORM Preferred Stock contain no restrictions on the Company’s ability to issue additional senior preferred securities or the Company’s ability to issue additional preferred securities in the future. <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">The Company has the right, but not the obligation, upon ten trading days’ notice to convert the outstanding shares of FORM Preferred Stock into FORM Common Stock at the then applicable conversion ratio, at any time or from time to time, if the volume weighted average price per share of the FORM Common Stock exceeds $9.00 for over any 20 days in a 30 consecutive trading day period.</font> The term of the FORM Preferred Stock is seven years, after which time FORM can repay the holders in shares of FORM Common Stock or cash at the Company’s election. <font style="FONT-FAMILY:Times New Roman, Times, Serif">If the Company elects to make a payment, or any portion thereof, in shares of FORM Common Stock, the number of shares deliverable (the “Base Shares”) will be based on the volume weighted average price per share of the FORM Common Stock for the 30 trading days prior to the date of calculation (the “Base Price”) plus an additional number of shares of FORM Common Stock (the “Premium Shares”), calculated as follows: (i) if the Base Price is greater than $9.00, no Premium Shares shall be issued, (ii) if the Base Price is greater than $7.00 and equal to or less than $9.00, an additional number of shares equal to 5% of the Base Shares shall be issued, (iii) if the Base Price is greater than $6.00 and equal to or less than $7.00, an additional number of shares equal to 10% of the Base Shares shall be issued, (iv) if the Base Price is greater than $5.00 and equal to or less than $6.00, an additional number of shares equal to 20% of the Base Shares shall be issued and (v) if the Base Price is less than or equal to $5.00, an additional number of shares equal to 25% of the Base Shares shall be issued. The</font> FORM Preferred Stock will accrue interest at 9% per annum, or $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">4.32</font> per share of FORM Preferred Stock.</div> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify">In addition, the Company entered into subscription agreements to sell <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 750,574</font> shares of its unregistered FORM Common Stock to certain holders of XpresSpa, at a purchase price of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">2.31</font> per share, for an aggregate purchase price of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1,734</font>.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><font style="COLOR: #181818">On August 8, 2016, FORM purchased from XpresSpa an aggregate of <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 1,733,826</font> of Series C Preferred Units of XpresSpa, at a per unit purchase price of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1.00</font> per unit, for an aggregate purchase price of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1,734</font>, which is included in other current assets</font> in the condensed consolidated balance sheets<font style="COLOR: #181818">. The Series C Preferred Units of XpresSpa will have a preference in the amount of its initial investment and shall bear <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 12</font>% interest until the closing of the anticipated merger agreement.</font></div>   <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The <font style="FONT-FAMILY:Times New Roman, Times, Serif">Company is holding its annual meeting of stockholders on November 28, 2016 to approve, among other things, the Merger and the issuance of shares of FORM Common Stock, FORM Preferred Stock and warrants to the Unitholders in connection with the Merger. Assuming stockholder approval is received, the Company expects to complete the Merger</font> shortly after the stockholders vote. Immediately following the completion of the Merger (without taking into account any shares of FORM Common Stock held by XpresSpa equity holders prior to the completion of the Merger), the former Unitholders of XpresSpa are expected to own approximately <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 18</font>% of the outstanding FORM Common Stock (or <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 33</font>% of the outstanding FORM Common Stock calculated on a fully diluted basis) and the current stockholders of the Company are expected to own approximately <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 82</font>% of the outstanding FORM Common Stock (or <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 67</font>% of the outstanding FORM Common Stock calculated on a fully diluted basis). </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"><i>Impairment of Patents</i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify">The Company’s name change and repositioning as a holding company was deemed a triggering event, which required the Company’s patent assets to be tested for impairment. In performing this impairment test, the Company determined that the patent portfolios, which together represent an asset group, were subject to impairment testing. In the first step of the impairment test, the Company utilized its projections of future undiscounted cash flows based on its 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 as of May 6, 2016. As a result, following amortization for the month of April, the Company recorded an impairment charge of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">11,937</font>, which resulted in a new carrying value of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1,526</font> on May 6, 2016. Following the impairment, the Company reevaluated the remaining useful life and concluded that there were no changes in the estimated useful life.</div>  </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"><i>Stockholder Rights Plan</i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"><i> </i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">On March 18, 2016, the Company announced that the Company’s Board of Directors adopted a stockholder rights plan in the form of a Section 382 Rights Agreement designed to preserve the Company’s tax assets. As a part of the plan, the Company’s Board of Directors declared a dividend of one preferred-share-purchase right for each share of the Company’s common stock outstanding as of March 29, 2016. Effective on March 18, 2016, if any group or person acquires 4.99% or more of the Company’s outstanding shares of common stock, or if a group or person that already owns <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 4.99</font>% or more of the Company’s common stock acquires additional shares representing <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 0.5</font>% or more of the Company’s common stock, then, subject to certain exceptions, there would be a triggering event under the plan. The rights would then separate from the Company’s common stock and would be adjusted to become exercisable to purchase shares of the Company’s common stock having a market value equal to twice the purchase price of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">9.50</font>, resulting in significant dilution in the ownership interest of the acquiring person or group. The Company’s Board of Directors has the discretion to exempt any acquisition of the Company’s common stock from the provisions of the plan and has the ability to terminate the plan prior to a triggering event. In connection with this plan, the Company filed a Certificate of Designation of Series C Junior Preferred Stock with the Secretary of State of Delaware on March 18, 2016.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"><i>Senior Secured Notes</i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; COLOR: #181818" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">On March 9, 2016, the Company and the holders (the “Investors”) of the Company’s $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">12,500</font> Senior Secured Convertible Notes (the “Notes”), which were originally issued by the Company in a registered direct offering on May 4, 2015, entered into an exchange note agreement (the “Exchange Note Agreement”). Pursuant to the Exchange Note Agreement, the Company issued to the Investors an aggregate of <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 703,644</font> shares of its common stock, par value $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">0.01</font> per share, in exchange for the reduction of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1,267</font> of the outstanding aggregate principal amount of the Notes and $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">49</font> of accrued interest. As a result, the outstanding aggregate principal amount under the Notes was reduced from $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">3,016</font> to $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1,749</font> as of March 9, 2016.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;CLEAR: both">  </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">In addition, on March 9, 2016, the Company, with the consent of each of the Investors, agreed to amend the Notes. Pursuant to the Amended and Restated Senior Secured Notes (the “Amended Notes”) and the Indenture dated May 4, 2015, as supplemented by a First Supplemental Indenture dated May 4, 2015 and further supplemented by a Second Supplemental Indenture (the “Second Supplemental Indenture”) dated March 9, 2016: (i) the Amended Notes are no longer convertible into shares of the Company’s common stock and will be payable by the Company on the Maturity Date (as defined below) in cash only, (ii) the Maturity Date of the Amended Notes will extend to <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">June 30, 2017</font> (the “Maturity Date”), (iii) the Company will discontinue the payment of principal prior to the Maturity Date (subject to certain exceptions), (iv) the interest rate increased from <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">8</font>% to <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 10</font>% per annum and will accrue on the outstanding aggregate principal amount of the Amended Notes, payable monthly, and (v) the Company will pay to the Investors on the Maturity Date <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 102</font>% of the outstanding aggregate principal amount of the Amended Notes. The Company also agreed to maintain a cash balance (including cash equivalents) of not less than $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">2,900</font>.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">In addition, the Company agreed to reduce the exercise price of the warrants to purchase an aggregate of <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 537,500</font> shares of the Company’s common stock pursuant to the initial agreement (the “May 2015 Warrants”) from $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">10.00</font> to $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">3.00</font> per share and the parties also agreed to remove from the May 2015 Warrants certain anti-dilution features. Other terms of the May 2015 Warrants remained the same. Furthermore, in connection with the Amended Notes, the Company paid a restructuring fee of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">50</font> to the Investors.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">On July 1, 2016, the Company repaid in full its Amended Notes that were due on June 30, 2017. As required by the terms of the Amended Notes, notice of repayment was delivered to the Investors on June 30, 2016. The Company repaid the Amended Notes in full, including a <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 15</font>% fee for early repayment. The Company used an aggregate of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">2,011</font> of cash on hand for repayment of the Amended Notes. As a result of the repayment in full of the Amended Notes, all liens on the Company’s assets, including intellectual property, were released by the Investors.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;CLEAR: both">  </div> <i>Reverse Stock Split</i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Unless otherwise noted, the information contained in these condensed consolidated financial statements gives effect to a one-for-ten reverse stock split of our common stock effected on November 27, 2015 (the “Reverse Stock Split”) on a retroactive basis for all periods presented.</div> </div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2016Q1	us-gaap	Amortization Of Debt Discount Premium AmortizationOfDebtDiscountPremium	356000	USD
CY2016Q1	us-gaap	Convertible Long Term Notes Payable ConvertibleLongTermNotesPayable	2277000	USD
	us-gaap	Debt Conversion Converted Instrument Amount1 DebtConversionConvertedInstrumentAmount1	281000	USD
	us-gaap	Repayments Of Notes Payable RepaymentsOfNotesPayable	1267000	USD
	us-gaap	Payments Of Debt Restructuring Costs PaymentsOfDebtRestructuringCosts	183000	USD
	fh	Fair Value Of Considerations Provided To Holders Of Notes FairValueOfConsiderationsProvidedToHoldersOfNotes	1781000	USD
CY2015Q4	us-gaap	Senior Long Term Notes SeniorLongTermNotes	496000	USD
	us-gaap	Amortization Of Debt Discount Premium AmortizationOfDebtDiscountPremium	1253000	USD
CY2016Q1	us-gaap	Repayments Of Debt RepaymentsOfDebt	1190000	USD
	us-gaap	Repayments Of Debt RepaymentsOfDebt	2011000	USD
	fh	Payment Of Fee Outstanding Principal PaymentOfFeeOutstandingPrincipal	262000	USD
CY2016Q3	us-gaap	Unamortized Debt Issuance Expense UnamortizedDebtIssuanceExpense	73000	USD
	fh	Value Of Shares Issued For Reduction Of Outstanding Principal Amount ValueOfSharesIssuedForReductionOfOutstandingPrincipalAmount	1267000	USD
CY2016Q3	us-gaap	Debt Instrument Face Amount DebtInstrumentFaceAmount	1749000	USD

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fh-20160930.xml	Edgar Link	completed
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$XWEL
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2016 Q3 Form 10-Q Financial Statement

#000114420416132791 Filed on November 09, 2016

Income Statement

Balance Sheet

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$XWEL XWELL Inc Stock $xwel

2016 Q3 Form 10-Q Financial Statement

#000114420416132791 Filed on November 09, 2016

Income Statement

Balance Sheet

Cashflow Statement

Facts In Submission

Files In Submission

$XWEL
XWELL Inc Stock $xwel