Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation– The consolidated financial statements include the accounts of NeoMedia Technologies, Inc. and our wholly-owned subsidiaries. We operate as one reportable segment. All significant intercompany accounts and transactions have been eliminated.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates– The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Changes in facts and circumstances may result in revised estimates, which are recorded in the period in which they become known.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation - FASB ASC 718, Stock Compensation , requires that all stock-based compensation be recognized as an expense in the financial statements and that such cost be measured at the grant date fair value of the award.  We account for modifications of the terms of existing option grants as exchanges of the existing equity instruments for new instruments.  The fair value of the modified option at the grant date is compared with the value at that date of the original option immediately before its terms are modified.  Any excess fair value of the modified option over the original option is recognized as additional compensation expense.

Earnings Per Share, Policy [Policy Text Block]

Basic and Diluted Net Income (Loss) Per Share – Basic net income (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of shares of our common stock, par value $0.001 per share (“Common Stock”), outstanding during the period. During the three and six months ended June 30, 2011 and the six months ended June 30, 2012, we reported a net loss per share, and as such, basic and diluted losses per share were equivalent. During the three months ended June 30, 2012, we reported net income per share and included dilutive instruments in the fully diluted net income per share calculation.

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Numerator:
Net income (loss)	$	124,119		$	(55,862	)	$	(41,415	)	$	(47,071	)
Effect of dilutive securities – adjustment for:
Change in fair value of derivative liability Series C and D preferred stock and debentures		(75,351	)		-			-			-
Change in fair value of derivative liability - warrants		(42,409	)		-			-			-
Change in fair value of hybrid financial instruments		(36,773	)		-			-			-
Loss on extinguishment of debt		27,479			-			-			-
Interest expense on convertible debt		2,003			-						-
Numerator for diluted earnings per share- income (loss) available to common stockholders after assumed conversions of debentures and exercise of warrants	$	(932	)	$	(55,862	)	$	(41,415	)	$	(47,071	)
Denominator
Weighted average shares used to compute basic EPS		1,148,526,738			137,692,460			326,414,797			46,114,822
Effect of dilutive securities:
Employee stock options		-			-			-			-
Derivative warrants		1,091,953,786
Convertible debentures		5,129,818,595			-			-			-
Convertible preferred stock		742,807,130			-			-			-
Dilutive potential common shares		6,964,579,511			-			-			-
Denominator for diluted earnings per share-adjusted weighted average shares and assumed conversions and exercise of options		8,113,106,249			137,692,460			326,414,797			46,114,822
Basic earnings per share	$	0.11		$	(0.41	)	$	(0.13	)	$	(1.02	)
Diluted earnings per share	$	0.00		$	(0.41	)	$	(0.13	)	$	(1.02	)

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill –Goodwill represents the excess of the purchase price paid for NeoMedia Europe over the fair value of the identifiable net assets and liabilities acquired, based on an independent appraisal of the assets and liabilities acquired. In accordance with FASB ASC 350, Intangibles - Goodwill and Other goodwill is not amortized, but is tested for impairment, at least annually , by applying the recognition and measurement provisions of FASB ASC 350, which require that we compare the carrying amount of the asset to its fair value. If impairment of the carrying value based on the estimated fair value exists, we measure the impairment through the use of discounted cash flows. If the carrying amount exceeds fair value, an impairment loss is recognized.

Inventory, Policy [Policy Text Block]

Inventories– All of our inventory of $341,000 is fully reserved for as of June 30, 2012 and December 31, 2011, respectively as we believe the inventory is slow moving and obsolete.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements - The following Accounting Standards Codification Updates have recently been issued:

ASU No. 2011-10	December  2011	Property, Plant, and Equipment (Topic 360): Derecognition of in Substance Real Estate—a Scope Clarification (a consensus of the FASB Emerging Issues Task Force)
ASU No. 2011-11	December  2011	Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities
ASU No. 2011-12	December  2011	Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05

To the extent appropriate, the guidance in the above Accounting Standards Codification Updates is already reflected in our consolidated financial statements and management does not anticipate that these accounting pronouncements will have any material future effect on our consolidated financial statements.