Quarterly report pursuant to Section 13 or 15(d)

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

v2.4.0.8
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2014
Accounting Policies [Abstract]  
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]
A summary of the impact of the correction of this error on the net loss per common share, basic and diluted, is as follows:

 
 
Three months ended March 31, 2014
Net loss per common share, basic and diluted—as previously reported
 
$
(0.47
)
Difference in net loss per common share, basic and diluted
 
0.10

Net loss per common share, basic and diluted—as restated
 
$
(0.37
)
 
 
 
Weighted average common shares, basic and diluted (in thousands)
 
 
Weighted-average shares, basic and diluted—as previously reported
 
55,914

Add: Net weighted average shares incorrectly excluded from the original calculation
 
16,064

Weighted average shares, basic and diluted—as restated
 
71,978

Schedule of Segment Reporting Information, by Segment
Segment revenue, expenses and contribution profit for the three month periods ended March 31, 2014 and 2013 derived from the Company's Connectivity and Content segments were as follows (in thousands):

 
Three Months Ended March 31,
 
2014
 
2013
 
Content
 
Connectivity
 
Consolidated
 
Content
 
Connectivity
 
Consolidated
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Licensing
$
52,331

 

 
$
52,331

 
$
23,304

 
$

 
$
23,304

Service
11,061

 
16,494

 
27,555

 
3,872

 
6,294

 
10,166

Equipment
198

 
5,884

 
6,082

 

 
9,043

 
9,043

Total Revenue
63,590

 
22,378

 
85,968

 
27,176

 
15,337

 
42,513

Operating Expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of Sales
46,144

 
18,973

 
65,117

 
20,503

 
15,246

 
35,749

Contribution Profit
17,446

 
3,405

 
20,851

 
6,673

 
91

 
6,764

Other Operating Expenses
 
 
 
 
30,243

 
 
 
 
 
28,916

Loss from Operations
 
 
 
 
$
(9,392
)
 
 
 
 
 
$
(22,152
)

Fair Value Measurements, Recurring and Nonrecurring
The following tables summarize the Company's financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2014, and December 31, 2013, respectively (in thousands):

 
March 31, 2014
 
Quotes Prices in Active Markets (Level 1)
 
 Significant Other Observable Inputs (Level 2)
 
 Significant Other Unobservable Inputs (Level 3)
Earn-out liability (1)
$
1,444

 
$

 
$

 
$
1,444

Global Eagle warrants (2)
86,960

 
86,960

 

 

Total financial liabilities
$
88,404

 
$
86,960

 
$

 
$
1,444


(1) Includes $1.4 million earn-out liability for EIM, a subsidiary of AIA assumed in the Business Combination.
(2) Includes 15,571,050 public warrants.

 
December 31, 2013
 
Quotes Prices in Active Markets (Level 1)
 
 Significant Other Observable Inputs (Level 2)
 
 Significant Other Unobservable Inputs (Level 3)
Earn-out liability (1)
$
1,421

 
$

 
$

 
$
1,421

Global Eagle warrants (2)
71,570

 
71,570

 

 

Total financial liabilities
$
72,991

 
$
71,570

 
$

 
$
1,421


(1) Includes $1.4 million earn-out liability for EIM, a subsidiary of AIA assumed in the Business Combination.
(2) Includes 15,567,650 public warrants.
Fair Value, by Balance Sheet Grouping
The following table shows both the carrying amounts, which approximate the fair values, of the Company's financial assets and liabilities in the consolidated financial statements at March 31, 2014 and December 31, 2013, respectively (in thousands):

 
March 31, 2014
 
December 31, 2013
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
Financial liabilities:
 
 
 
 
 
 
 
Notes payable
$
7,702

 
$
7,702

 
$
10,801

 
$
10,801


Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following table presents the fair value roll-forward reconciliation of level 3 assets and liabilities measured at fair value basis for the period ended March 31, 2014, (in thousands):

 
Earn-Out Liability
Balance, December 31, 2013
$
1,421

  Change in value
23

Balance, March 31, 2014
$
1,444