0001415889-16-006146.txt : 20160609 0001415889-16-006146.hdr.sgml : 20160609 20160609172630 ACCESSION NUMBER: 0001415889-16-006146 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 58 CONFORMED PERIOD OF REPORT: 20160430 FILED AS OF DATE: 20160609 DATE AS OF CHANGE: 20160609 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MAJESCO ENTERTAINMENT CO CENTRAL INDEX KEY: 0001076682 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 061529524 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-51128 FILM NUMBER: 161706795 BUSINESS ADDRESS: STREET 1: 4041-T HADLEY ROAD CITY: S. PLAINFIELD STATE: NJ ZIP: 07080 BUSINESS PHONE: (732) 225-8910 MAIL ADDRESS: STREET 1: 4041-T HADLEY ROAD CITY: S. PLAINFIELD STATE: NJ ZIP: 07080 FORMER COMPANY: FORMER CONFORMED NAME: MAJESCO HOLDINGS INC DATE OF NAME CHANGE: 20040416 FORMER COMPANY: FORMER CONFORMED NAME: CONNECTIVCORP DATE OF NAME CHANGE: 20010815 FORMER COMPANY: FORMER CONFORMED NAME: SPINROCKET COM INC DATE OF NAME CHANGE: 20000502 10-Q 1 cool10q_apr302016.htm QUARTERLY REPORT cool10q_apr302016.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-Q
 
QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended April 30, 2016
 
Commission File No. 000-51128
 
Majesco Entertainment Company
(Exact name of registrant as specified in its charter)
 
DELAWARE
06-1529524
(State or Other Jurisdiction of
(I.R.S. Employer
Incorporation or Organization)
Identification No.)
 
404I-T Hadley Road
S. Plainfield, New Jersey 07080
(Address of principal executive offices)
 
Registrant’s Telephone Number, Including Area Code: (732) 225-8910
 
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x No  ¨
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.4.05 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  x No  ¨
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
 
Large accelerated filer ¨
Accelerated filer ¨
Non-accelerated filer ¨
Smaller reporting company  x
   
(Do not check if a smaller reporting company)
  
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
 
As of May 31, 2016, there were 15,608,875 shares of the Registrant’s common stock outstanding.
 
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
 
 
Page
PART I - FINANCIAL INFORMATION
  
   
 
   
PART II - OTHER INFORMATION
  
   
 
 
PART I. FINANCIAL INFORMATION
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
(in thousands, except share and per share amounts)
 
   
April 30,
    
October 31,
  
   
2016
    
2015
  
   
(Unaudited)
        
ASSETS
            
Current assets:
            
Cash and cash equivalents
   $ 7,346     $ 17,053  
Accounts receivable
     415       283  
Capitalized software development costs and license fees
     85       179  
Prepaid expenses and other current assets
     178       101  
Total current assets
     8,024       17,616  
Property and equipment, net
     31       45  
TOTAL ASSETS
   $ 8,055     $ 17,661  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
                 
Current liabilities:
                
Accounts payable and accrued expenses
   $ 1,496     $ 1,686  
Payable to Zift
     75       318  
Warrant liability
     344       -  
Total current liabilities
     1,915       2,004  
Total liabilities
     1,915       2,004  
                 
Commitments and Contingencies
                
                 
STOCKHOLDERS’ EQUITY:
                
Convertible Preferred stock – 10,000,000 shares authorized, 8,413,630 and 9,025,265 shares issued and outstanding at April 30, 2016 and October 31, 2015, aggregate liquidation preference $5,561 and $5,968, respectively
     10,407       10,694  
Common stock — $.001 par value; 250,000,000 shares authorized; 13,583,875 and 11,109,293 shares issued and outstanding at April 30, 2016 and October 31, 2015, respectively
     14       11  
Additional paid-in capital
     121,003       128,488  
Accumulated deficit
     (125,284 )     (123,536 )
Total stockholders’ equity
     6,140       15,657  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
   $ 8,055     $ 17,661  
 
See accompanying notes to condensed consolidated financial statements.
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
(Unaudited, in thousands, except share and per share amounts)

   
For the three months ended
    
For the six months ended
  
   
April 30,
    
April 30,
  
   
2016
    
2015
    
2016
    
2015
  
Net revenues
   $ 412     $ 1,705     $ 1,003     $ 5,176  
Cost of sales
                                
Product costs
     1       663       1       2,070  
Software development costs and license fees
     124       245       182       952  
      125       908       183       3,022  
Gross profit
     287       797       820       2,154  
Operating costs and expenses
                                
Product research and development
     20       29       55       55  
Selling and marketing
     19       170       42       610  
General and administrative
     1,319       1,305       2,441       3,049  
Workforce reduction
     -       639       -       713  
Depreciation and amortization
     7       10       14       50  
      1,365       2,153       2,552       4,477  
Operating loss
     (1,078 )     (1,356 )     (1,732 )     (2,323 )
Other expenses (income)
                                
Interest and financing costs (income)
     (3 )     (1 )     (10 )     59  
Gain on extinguishment of liabilities
     -       (524 )     -       (1,050 )
Gain on asset sales, net
     -       (3 )     -       (128 )
Change in fair value of warrant liability
     26       768       26       1,547  
Loss before income taxes
     (1,101 )     (1,596 )     (1,748 )     (2,751 )
Income taxes
     -       2       -       3  
Net loss
     (1,101 )     (1,598 )     (1,748 )     (2,754 )
Special cash dividend attributable to preferred stockholders
       -       (6,002 )     -  
Conversion features accreted as dividends
     -       1,838       -       2,235  
Net loss attributable to common stockholders
   $ (1,101 )   $ (3,436 )   $ (7,750 )   $ (4,989 )
                                 
Net loss per share, basic and diluted:
   $ (0.10 )   $ (0.52 )   $ (0.74 )   $ (0.76 )
Weighted average shares outstanding, basic and diluted:
     11,294,900       6,610,270       10,543,254       6,568,526  
 
See accompanying notes to condensed consolidated financial statements.
 

MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
(Unaudited, in thousands)

   
For the six months ended
April 30,
  
   
2016
    
2015
  
CASH FLOWS FROM OPERATING ACTIVITIES
            
Net loss
   $ (1,748 )   $ (2,754 )
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
  
Change in warrant liability
     26       1,547  
Depreciation and amortization
     14       50  
Non-cash compensation expense
     993       388  
Provision for price protection
     -       41  
Amortization of capitalized software development costs and license fees
     85       397  
Gains on asset sales, net
     -       (108 )
Provision for excess inventory
     -       65  
Gain on extinguishment of liabilities
     -       (1,050 )
Offering costs expensed
     21       120  
Changes in operating assets and liabilities:
                
Accounts receivable
     (132 )     1,335  
Inventory
     -       1,193  
Capitalized software development costs and license fees
     9       -  
Advance payments for inventory
     -       57  
Prepaid expenses and other current assets
     (77 )     50  
Accounts payable and accrued expenses
     (190 )     (1,803 )
    Payable to Zift      (10 )      -  
Customer credits
     -       1,368  
Advances from customers and deferred revenue
     -       (14 )
Net cash (used in) provided by operating activities
     (1,009 )     882  
CASH FLOWS FROM INVESTING ACTIVITIES
                
Net proceeds from sale of assets
     -       217  
Net cash provided by investing activities
     -       217  
CASH FLOWS FROM FINANCING ACTIVITIES
                
Special cash dividend
     (10,000 )     -  
Proceeds from stock options exercise
     129       -  
Net proceeds from the sale of common stock and warrants
     1,406       -  
Payments to Zift
     (233 )      -  
Net proceeds from sale of units
     -       801  
Income tax withholding from stock compensation
     -       (12 )
Net cash (used in) provided by financing activities
     (8,698 )     789  
                 
Net (decrease) increase  in cash and cash equivalents
     (9,707 )     1,888  
Cash and cash equivalents — beginning of period
     17,053       7,196  
Cash and cash equivalents — end of period
   $ 7,346     $ 9,084  
                 
SUPPLEMENTAL CASH FLOW INFORMATION
                
Cash paid during the period for income taxes
   $ -     $ 98  
                 
Supplemental schedule of non-cash investing and financing activities:
          
Warrant liability reclassified to additional paid-in capital upon exchange
   $ -     $ 5,312  
Conversion of Series A preferred stock to common stock
   $ 147     $ -  
Conversion of Series D preferred stock to common stock
   $ 140     $ -  
Common stock shares and warrants issued for offering costs
   $ 75     $ -  
 
See accompanying notes to condensed consolidated financial statements.

 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
 
1. PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION
 
The accompanying financial statements present the financial results of Majesco Entertainment Company and Majesco Europe Limited, its wholly-owned subsidiary, (together, “Majesco” or the “Company”) on a consolidated basis. Prior to the November 2014 sale of its equity investment, the Company had 50% of the voting control of GMS Entertainment Limited (“GMS”) and the right to appoint one-half of the directors of GMS. Accordingly, the Company accounted for GMS on the equity method as a corporate joint venture.
 
The Company is a provider of video game products primarily for the casual-game consumer and has published video games for interactive entertainment hardware platforms, including Nintendo’s DS, 3DS, Wii and WiiU, Sony’s PlayStation 3 and 4, or PS3 and PS4, Microsoft’s Xbox 360 and Xbox One and the personal computer, or PC. It has historically sold its products through two sales channels, retail and digital. It has sold packaged software to large retail chains, specialty retail stores, video game rental outlets and distributors and through digital distribution for platforms such as Xbox Live Arcade, PlayStation Network, or PSN, and Steam, and for mobile devices and online platforms. In 2015, the Company transferred retail distribution activities, assets and obligations to a company owned by its former chief executive officer (see Note 13).
 
The Company’s video game titles are targeted at various demographics at a range of price points. Due to the larger budget requirements for developing and marketing premium console titles for core gamers, the Company has focused on publishing more lower-cost games targeting casual-game consumers and independent game developer fans. In some instances, the Company’s titles are based on licenses of well-known properties and, in other cases, original properties. The Company enters into agreements with content providers and video game development studios for the creation of our video games.
 
The Company’s operations involve similar products and customers worldwide. These products are developed and sold domestically and internationally. The Company is centrally managed and our chief operating decision makers, the chief executive and other officers, use consolidated and other financial information supplemented by sales information by product category, major product title and platform for making operational decisions and assessing financial performance. Accordingly, it operates in a single segment.

NASDAQ listing. On March 3, 2016, the Company was notified by The NASDAQ Stock Market, LLC (“Nasdaq”) that it was not in compliance with Nasdaq Listing Rule 5550(a)(2) (the “Rule”) because the Company’s common stock failed to maintain a minimum closing bid price of $1.00 per share for the prior 30 consecutive business days. The notice has no immediate effect on the listing or trading of the Company’s common stock on The NASDAQ Capital Market and, at this time, the common stock will continue to trade on The NASDAQ Capital Market under the symbol “COOL”.
 
The Company has a period of 180 calendar days, or until August 30, 2016, to achieve compliance with the Rule. The Company will regain compliance with the Rule if, at any time before August 30, 2016, the closing bid price for the Company’s common stock is at least $1.00 per share for a minimum of 10 consecutive business days. In the event the Company does not regain compliance with the Rule by August 30, 2016, the Company may be eligible for an additional 180 calendar day compliance period. To qualify, the Company would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The NASDAQ Capital Market, with the exception of the bid price requirement, and would need to provide written notice of its intention to cure the bid price deficiency during the second compliance period by effecting a reverse stock split, if necessary.
 
Major customers. Microsoft, Sony, and Valve accounted for 40%, 28%, and 18%, respectively, of sales for the six months ended April 30, 2016. Sidekick and Microsoft accounted for 53% and 30%,  respectively, of accounts receivable as of April 30, 2016.

 Concentrations.  The Company develops and distributes video game software for proprietary platforms under licenses from Nintendo, Sony and Microsoft, which must be periodically renewed. The Company’s agreements with these manufacturers also grant them certain control over the Company’s products. In addition, for the six months ended April 30, 2016 and 2015 sales of the Company’s Zumba Fitness games accounted for approximately 10% and 30% of net revenues, respectively.
 
The accompanying interim condensed consolidated financial statements of the Company are unaudited, but in the opinion of management, reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results for the interim period. Accordingly, they do not include all information and notes required by generally accepted accounting principles for complete financial statements. The Company’s financial results are impacted by the seasonality of the retail selling season and the timing of the release of new titles. The results of operations for interim periods are not necessarily indicative of results to be expected for the entire fiscal year. The balance sheet at October 31, 2015 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the year ended October 31, 2015 filed with the Securities and Exchange Commission on Form 10-K on January 29, 2016.
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Principles of Consolidation.  The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary located in the United Kingdom. Significant intercompany accounts and transactions have been eliminated in consolidation.
 
Revenue Recognition. The Company has recognized revenue upon the shipment of its products when: (1) title and the risks and rewards of ownership are transferred; (2) persuasive evidence of an arrangement exists; (3) there are no continuing obligations to the customer; and (4) the collection of related accounts receivable is probable. Certain products have been sold to customers with a street date (the earliest date these products may be resold by retailers). Revenue for sales of these products is not recognized prior to their street date. Some of the Company’s software products provide limited online features at no additional cost to the consumer. Generally, such features have been considered to be incidental to the Company’s overall product offerings and an inconsequential deliverable. Accordingly, the Company does not defer any revenue related to products containing these limited online features. However, in instances where online features or additional functionality is considered a substantive deliverable in addition to the software product, such characteristics will be taken into account when applying the Company’s revenue recognition policy.  While the Company has historically sold its products through two sales channels, retail and digital, in July 2015, the Company transferred retail distribution activities, assets and obligations to a company owned by its former chief executive officer (see Note 13), and therefore ceased retail sales.
 
The Company generally sold its products to retailers and distributors on a no-return basis, although in certain instances, the Company provided price protection or other allowances on certain unsold products. Price protection, when granted and applicable, allows customers a partial credit against amounts they owe the Company with respect to merchandise unsold by them. Revenue was recognized, and accounts receivable was presented, net of estimates of these allowances.
 
The Company estimated potential future product price protection and other allowances related to current period product revenue. The Company analyzed historical experience, current sell through of retailer inventory of the Company’s products, current trends in the video game market, the overall economy, changes in customer demand and acceptance of the Company’s products and other related factors when evaluating the adequacy of price protection and other allowances.
 
Sales incentives or other consideration given by the Company to customers that were considered adjustments of the selling price of its products, such as rebates and product placement fees, were reflected as reductions of revenue. Sales incentives and other consideration that represent costs incurred by the Company for benefits received, such as the appearance of the Company’s products in a customer’s national circular ad, are reflected as selling and marketing expenses, in accordance with Accounting Standards Codification (“ASC”) 605-50, Customer Payments and Incentives.
 
The Company’s software products are sold as downloads of digital content for which the consumer takes possession of the digital content for a fee. Revenue from product downloads is generally recognized when the download is made available (assuming all other recognition criteria are met).
 
The Company records revenue for distribution agreements where it is acting as an agent as defined by ASC Topic 605, Revenue Recognition, Subtopic 45, Principal Agent Considerations, on a net basis. When the Company enters into license or distribution agreements that provide for multiple copies of games in exchange for guaranteed amounts, revenue is recognized in accordance with the terms of the agreements, generally upon delivery of a master copy, assuming our performance obligations are complete and all other recognition criteria are met, or as per-copy royalties are earned on sales of games.
 
Cash and cash equivalents.  Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase. At various times, the Company has deposits in excess of the Federal Deposit Insurance Corporation limit. The Company has not experienced any losses on these accounts.
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
Accounts Receivable and Accounts Payable and Accrued Expenses. The carrying amounts of accounts receivable and accounts payable and accrued expenses approximate fair value as these accounts are largely current and short term in nature.
 
Allowance for doubtful accounts. The Company recognizes an allowance for losses on accounts receivable for estimated probable losses. The allowance is based on historical experiences, current aging of accounts, and other expected future write-offs, including specific identifiable customer accounts considered at risk or uncollectible. Any related expense associated with an allowance for doubtful accounts is recognized as general and administrative expense. As of April 30, 2016, there was no allowance for doubtful accounts.
 
Capitalized Software Development Costs and License Fees. Software development costs include fees in the form of milestone payments made to independent software developers and licensors. Software development costs are capitalized once technological feasibility of a product is established and management expects such costs to be recoverable against future revenues. For products where proven game engine technology exists, this may occur early in the development cycle. Technological feasibility is evaluated on a product-by-product basis. Amounts related to software development that are not capitalized are charged immediately to product research and development costs. Commencing upon a related product’s release, capitalized costs are amortized to cost of sales based upon the higher of (i) the ratio of current revenue to total projected revenue or (ii) straight-line charges over the expected marketable life of the product.
 
Prepaid license fees represent license fees to owners for the use of their intellectual property rights in the development of the Company’s products. Minimum guaranteed royalty payments for intellectual property licenses are initially recorded as an asset (prepaid license fees) and a current liability (accrued royalties payable) at the contractual amount upon execution of the contract or when specified milestones or events occur and when no significant performance remains with the licensor. Licenses are expensed to cost of sales at the higher of (i) the contractual royalty rate based on actual sales or (ii) an effective rate based upon total projected revenue related to such license. Capitalized software development costs and prepaid license fees are classified as non-current if they relate to titles for which the Company estimates the release date to be more than one year from the balance sheet date.
 
The amortization period for capitalized software development costs and prepaid license fees is usually no longer than one year from the initial release of the product. If actual revenues or revised forecasted revenues fall below the initial forecasted revenue for a particular license, the charge to cost of sales may be larger than anticipated in any given quarter. The recoverability of capitalized software development costs and prepaid license fees is evaluated quarterly based on the expected performance of the specific products to which the costs relate. When, in management’s estimate, future cash flows will not be sufficient to recover previously capitalized costs, the Company expenses these capitalized costs to “cost of sales-software development costs and license fees,” in the period such a determination is made. These expenses may be incurred prior to a game’s release for games that have been developed. If a game is cancelled prior to completion of development and never released to market, the amount is expensed to operating costs and expenses. If the Company was required to write off licenses, due to changes in market conditions or product acceptance, its results of operations could be materially adversely affected.
 
Costs of developing online free-to-play social games, including payments to third-party developers, are expensed as research and development expenses. Revenue from these games is largely dependent on players’ future purchasing behavior in the game and currently the Company cannot reliably project that future net cash flows from developed games will exceed related development costs.
 
Prepaid license fees and milestone payments made to the Company’s third party developers are typically considered non-refundable advances against the total compensation they can earn based upon the sales performance of the products. Any additional royalty or other compensation earned beyond the milestone payments is expensed to cost of sales as incurred.
 
Property and equipment.  Property and equipment is stated at cost. Depreciation and amortization is being provided for by the straight-line method over the estimated useful lives of the assets, generally five years. Amortization of leasehold improvements is provided for over the shorter of the term of the lease or the life of the asset.

Income taxes.  The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the potential for realization of deferred tax assets at each quarterly balance sheet date and records a valuation allowance for assets for which realization is not more likely than not.
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
Stock Based Compensation. The Company measures all stock-based compensation to employees using a fair value method and records such expense in general and administrative expenses. Compensation expense for stock options is recognized on a straight line basis over the vesting period of the award, based on the fair value of the option on the date of grant.
 
The fair value for options issued is estimated at the date of grant using a Black-Scholes option-pricing model. The risk free rate is derived from the U.S. Treasury yield curve in effect at the time of the grant. The volatility factor is determined based on the Company’s historical stock prices.
 
 Extinguishment of Liabilities. During the six months ended April 30, 2015, the Company recognized a gain on extinguishment of liabilities of $1.1 million. The Company determined that certain accounts payable balances and claims for license fees and services would never be paid because they were no longer being pursued for payment and had passed the statute of limitations as of April 30, 2015.
 
Gain on asset sales, net. During the six months ended April 30, 2015, we recognized approximately $128,000 in net gain from the sale of certain game rights and from the sale of office furniture and equipment upon the move to a smaller office.

Loss Per Share. Basic loss per share of common stock is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted loss per share excludes the potential impact of common stock options, unvested shares of restricted stock and outstanding common stock purchase warrants because their effect would be anti-dilutive.
 
Commitments and Contingencies.  We are subject to claims and litigation in the ordinary course of our business. We record a liability for commitments and contingencies when the amount is both probable and reasonably estimable. We record associated legal fees as incurred. We accrued contingent liabilities for certain potential licensor and customer liabilities and claims that were transferred to Zift but may not be extinguished by such transaction.

Accounting for Warrants.  The Company accounts for the issuance of common stock purchase warrants issued in connection with the equity offerings in accordance with the provisions of ASC 815, Derivatives and Hedging (“ASC 815”).  The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement).  The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net-cash settle the contract if an event occurs and if that event is outside the control of the Company) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). In addition, Under ASC 815, registered common stock warrants that require the issuance of registered shares upon exercise and do not expressly preclude an implied right to cash settlement are accounted for as derivative liabilities.  The Company classifies these derivative warrant liabilities on the condensed consolidated balance sheet as a current liability.

Change in fair value of warrant liability. The Company assessed the classification of common stock purchase warrants as of the date of each offering and determined that such instruments met the criteria for liability classification. Accordingly, the Company classified the warrants as a liability at their fair value and adjusts the instruments to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until the warrants are exercised or expired, and any change in fair value is recognized as “change in fair value of warrant liability” in the condensed consolidated statements of operations. The fair value of the warrants has been estimated using a Black-Scholes valuation model (see Note 7).

Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities or the disclosure of gain or loss contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Among the more significant estimates included in these financial statements are the recoverability of advance payments for capitalized software development costs and intellectual property licenses, the valuation of warrant liability, and the valuation allowances for deferred tax benefits. Actual results could differ from those estimates.

Recent Accounting Pronouncements.
 
In May 2014, the Financial Accounting Standards Board ("FASB")  issued an Accounting Standards Update ("ASU") creating a new Topic 606, Revenue from Contracts with Customers, which broadly establishes new standards for the recognition of certain revenue and updates related disclosure requirements. The update becomes effective for the Company on November 1, 2018. The Company is reviewing the potential impact of the statement on its financial position, results of operations, and cash flows.
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) which supersedes FASB ASC Topic 840, Leases (Topic 840) and provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The standard is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted upon issuance. When adopted, the Company does not expect this guidance to have a material impact on our financial statements.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations. The purpose of ASU No. 2016-08 is to clarify the implementation of guidance on principal versus agent considerations. For public entities, the amendments in ASU No. 2016-08 are effective for interim and annual reporting periods beginning after December 15, 2017. The Company is currently assessing the impact of ASU No. 2016-08 on its condensed consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. Under ASU No. 2016-09, companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (“APIC”). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement and the APIC pools will be eliminated. In addition, ASU No. 2016-09 eliminates the requirement that excess tax benefits be realized before companies can recognize them. ASU No. 2016-09 also requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Furthermore, ASU No. 2016-09 will increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. An employer with a statutory income tax withholding obligation will now be allowed to withhold shares with a fair value up to the amount of taxes owed using the maximum statutory tax rate in the employee’s applicable jurisdiction(s). ASU No. 2016-09 requires a company to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on the statement of cash flows. Under current U.S. GAAP, it was not specified how these cash flows should be classified. In addition, companies will now have to elect whether to account for forfeitures on share-based payments by (1) recognizing forfeitures of awards as they occur or (2) estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as is currently required. The amendments of this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted but all of the guidance must be adopted in the same period. The Company is currently assessing the impact that ASU No. 2016-09 will have on its condensed consolidated financial statements.

In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customer. The new guidance is an update to ASC 606 and provides clarity on: identifying performance obligations and licensing implementation. For public companies, ASU No.  2016-10 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the impact that ASU No. 2016-10 will have on its condensed consolidated financial statements.
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

3. PREPAID EXPENSES AND OTHER CURRENT ASSETS
 
Prepaid expenses and other current assets consist of the following (in thousands):
 
   
April 30,
2016
    
October 31,
2015
  
Prepaid insurance
  
$
133
    
$ 
61
  
Tax receivable
    
6
      
30
  
Other
    
39
      
10
  
Total prepaid expenses and other current assets
  
$
178
    
$
101
  
  
4. PROPERTY AND EQUIPMENT, NET
 
Property and equipment, net, consist of the following (in thousands):
 
   
April 30,
2016
    
October 31,
2015
  
Computers and software
  
$
61
    
$
61
  
Furniture and equipment
    
78
      
78
  
Total property and equipment, gross
    
139
      
139
  
Accumulated depreciation
    
(108
)
    
(94
)
Total property and equipment, net
  
$
31
    
$
45
  
 
5. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
 
Accounts payable and accrued expenses consist of the following (in thousands):
 
   
April 30,
2016
    
October 31,
2015
  
Accounts payable-trade
  
$
345
    
$
479
  
Royalties, fees and development
    
678
      
681
  
Salaries and other compensation
    
461
      
510
  
Other accruals
    
12
      
16
  
Total accounts payable and accrued expenses
  
$
1,496
    
$
1,686
  
  
During the three and six months ended April 30, 2015, the Company recognized a gain on extinguishment of liabilities of $524,000 and $1.1 million, respectively. The Company determined that certain accounts payable balances and claims for license fees and services would never be paid because they were no longer being pursued for payment and had passed the statute of limitations.
 
Salaries and other compensation include accrued payroll expense, accrued incentive compensation and employer 401K plan contributions.
 
6.  STOCKHOLDERS’ EQUITY
 
Convertible preferred stock as of April 30, 2016 consisted of the following (in thousands, except share amounts):
 
   
Shares Authorized
    
Shares Issued and Outstanding
    
Net Carrying Value
    
Aggregate Liquidation Preference
    
Common Shares Issuable Upon Conversion
  
Series A
    
8,830,000
      
8,177,334
    
$
1,999
    
$
5,561
      
8,177,334
  
Series B
    
54,250
      
54,201
      
4,569
      
-
      
5,420,171
  
Series C
    
26,000
      
25,763
      
2,010
      
-
      
2,576,353
  
Series D
    
170,000
      
156,332
      
1,829
      
-
      
1,563,320
  
Other authorized, unissued
    
919,750
      
-
      
-
      
-
      
-
  
Total
    
10,000,000
      
8,413,630
    
$
10,407
    
$
5,561
      
17,737,178
  
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
December Units and Series A Preferred Shares
 
On December 17, 2014, pursuant to subscription agreements (the “December Subscription Agreements”) entered into with certain accredited investors (the “December Investors”) the Company completed a private placement of $6.0 million of units (the “December Units”) at a purchase price of $0.68 per Unit, with each December Unit consisting of one share of the Company’s 0% Series A Convertible Preferred Stock (each a “Series A Preferred Share”) and a five-year warrant (each a “December Warrant”) to purchase one share of the Company’s common stock at an initial exercise price of $0.68 per share (such issuance and sale, the “December Private Placement”). The December Warrants were subsequently exchanged for shares of the Company’s 0% Series B Convertible Preferred Stock (the “Series B Preferred Shares”) and shares of the Company’s common stock (see below). The offering was made in reliance upon an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).
 
The Series A Preferred Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Series A Preferred Share, plus all accrued and unpaid dividends, if any, on such Series A Preferred Share, as of such date of determination, divided by the conversion price. The stated value of each Preferred Share is $0.68 and the initial conversion price is $0.68 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events. In addition, in the event the Company issues or sells, or is deemed to issue or sell, shares of its common stock at a per share price that is less than the conversion price then in effect, the conversion price shall be reduced to such lower price, subject to certain exceptions. Pursuant to the Certificate of Designations, Preferences and Rights of the 0% Series A Convertible Preferred Stock of Majesco Entertainment Company, the Company is prohibited from incurring debt or liens, or entering into new financing transactions without the consent of the lead investor (as defined in the December Subscription Agreements) as long as any of the Series A Preferred Shares are outstanding. The Series A Preferred Shares bear on dividends.
 
The holders of Series A Preferred Shares shall vote together with the holders of common stock on all matters on an as if converted basis, subject to certain conversion and ownership limitations, and shall not vote as a separate class. Notwithstanding the foregoing, the conversion price for purposes of calculating voting power shall in no event be lower than $0.59 per share. At no time may all or a portion of the Series A Preferred Shares be converted if the number of shares of common stock to be issued pursuant to such conversion would exceed, when aggregated with all other shares of common stock owned by the holder at such time, the number of shares of common stock which would result in such Holder beneficially owning (as determined in accordance with Section 13(d) of the 1934 Act and the rules thereunder) more than 4.99% of all of the common stock outstanding at such time; provided, however, that the holder may waive the 4.99% limitation at which time he may not own beneficially own more than 9.99% of all the common stock outstanding at such time.
 
Prior to the exchange transaction described below, the December Warrants were exercisable at any time at a price of $0.68 per share, subject to adjustment, and expired five years from the date of issuance. The holders could exercise the December Warrants for shares of common stock on a cashless basis if there was no effective registration statement or no current prospectus available for resale of the underlying shares of common stock. The December Warrants were subject to certain adjustments upon certain actions by the Company as outlined in the December Warrants, including, for twenty-four months following the initial issuance date, the issuance or sale, or deemed issuance or sale, by the Company of shares of its common stock at a per share price that is less than the exercise price then in effect.
 
The proceeds of the offering and certificates representing the Series A Preferred Shares and December Warrants underlying the December Units issued in the offering were deposited into escrow accounts. Upon the closing of the December Private Placement on December 17, 2014 (such date, the “December Closing Date”), $1.0 million of the December Escrow Amount was released to the Company and $1.0 million of December Units to the December Investors, on a pro rata basis. Effective upon the approval of the Company’s stockholders on March 30, 2015, in one or multiple tranches, the remaining $5.0 million became eligible to be released to the Company and $5.0 million of December Units became eligible to be released to the December Investors from their respective escrow accounts, if either, (i) the lead investor has approved the release, (ii) the approval of the requisite number of December Investors has been obtained, (iii) the Company has executed definitive binding documents for certain transactions, as described in the December Subscription Agreements, and such transaction(s) are to close contemporaneously with the release, following approval by the Company’s stockholders or (iv) the following conditions are present: (a) nine months has elapsed from the December Closing Date and release is approved by each of the directors appointed at closing (being the non-continuing directors); (b) no subsequent release of the December Escrow Amount has been consummated; and (c) no more than $1.0 million is released (the “December Release Conditions”). In the event that on and as of the twelve month anniversary of the December Closing Date none of the December Release Conditions have been satisfied, $5.0 million would be returned on a pro rata basis to the December Investors, without interest or deduction, and $5,000 of December Units would be returned to the Company for cancellation. On September 25, 2015, the lead investor approved the release and the escrow agent released all funds and corresponding December Units remaining in escrow. 
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
The Company received net proceeds of $801,000 for the December Units released from escrow, net of offering costs, and has accounted for each of the Series A Preferred Shares released from escrow, the December Warrants released from escrow and the Series A Preferred Shares and December Warrants remaining in escrow as freestanding instruments.
 
The Company has evaluated the guidance ASC 480-10 Distinguishing Liabilities from Equity and ASC 815-40 Contracts in an Entity’s Own Equity  to determine the appropriate classification of the instruments. Prior to the exchange described below, the exercise price of the released December Warrants could be adjusted downward if the Company issued securities at a price below the initial exercise price and in certain other circumstances outside the control of the Company and therefore contain contingent settlement terms not indexed solely to the Company’s own shares of common stock. Accordingly, $603,000 of proceeds were recorded as a derivative liability representing the fair value of the December Warrants released from escrow at issuance and $120,000 of offering costs allocated to the December Warrants were expensed. As a result of the allocations, described above, the Series A Preferred Shares released were deemed to have a beneficial conversion feature at issuance amounting to $397,000, which was recorded in stockholders’ equity and immediately charged as a dividend in determining net loss attributable to common stockholders.
 
The remaining net proceeds of $318,000 were allocated to the Series A Preferred Shares net of $79,000 of offering costs. The Series A Preferred Shares do not represent an unconditional obligation to be settled in a variable number of shares of common stock, are not redeemable and do not contain fixed or indexed conversion provisions similar to debt instruments. Accordingly, the Series A Preferred Shares are considered equity hosts and recorded in stockholders’ equity.
 
Upon stockholder approval in March 2015 of full conversion provisions of the escrowed December Warrants, the Company recorded a warrant liability and a discount on the Series A Preferred Shares amounting to $3,162, based on the estimated fair value of the warrants. In addition, upon shareholder approval of the full conversion provisions of the escrowed Series A Preferred Shares, the carrying value of such Series A Preferred Shares, net of proceeds remaining in escrow was reclassified from temporary equity to paid-in capital. The Company recorded a beneficial conversion feature and a discount on the Series A Preferred Shares amounting to $1.8 million, which was immediately recognized as a deemed dividend in determining net loss attributable to common shareholders. As of April 30, 2015, the Series A Preferred Shares remaining in escrow were convertible into 7,352,939 shares of common stock based on the conversion rate at the time. The Company may record additional deemed dividends for any unamortized discounts on its Series A Preferred Shares if such shares are converted.
 
In connection with the December Private Placement, the Company also entered into separate Registration Rights Agreements with each December Investor, (as amended on January 30, 2015 and March 31, 2015, the “December Registration Rights Agreement”). The Company agreed to use its best efforts to file by March 31, 2015 a registration statement covering the resale of the shares of common stock issuable upon exercise or conversion of the Series A Preferred Shares and December Warrants and to maintain its effectiveness until all such securities have been sold or may be sold without restriction under Rule 144 of the Securities Act. In the event the Company fails to satisfy its obligations under the December Registration Rights Agreements, the Company is required to pay to the December Investors on a monthly basis an amount equal to 1% of the investors’ investment, up to a maximum of 12%. On March 31, 2015, the Company and the required holders of December Units amended the registration rights agreement to extend the filing deadline for the registration statement to June 30, 2015.
 
April 2015 Exchange and Series B Preferred Shares
 
On April 30, 2015, pursuant to warrant exchange agreements, the Company retired the 8,823,537 December Warrants issued in the December Private Placement, including those subject to the escrow conditions and those released from escrow, in exchange for shares of the Company's common stock, or shares of 0% Series B Convertible Preferred Stock (the “Series B Preferred Shares”), in lieu of shares of common stock equal, on an as-converted basis, to the number of shares of common stock that would have otherwise been received by the holder, if such issuance would result in the recipient holder exceeding certain thresholds. An aggregate of 6,302,525 shares of common stock, which amount includes the shares of common stock issuable upon conversion of the Series B Preferred Shares, were issuable in connection with the exchange agreements. The Company re-measured the fair value of the December Warrants through the date of their exchange and recorded related losses in its statement of operations. Upon exchange, the contingent-conversion features of the December Warrants expired and the carrying value of the warrant liability of $5.3 million was reclassified to paid-in capital and allocated to the Series B Preferred Shares and the common shares distributed. Such Series B Shares and shares of common stock exchanged for the December Warrants are not held in escrow and as such are not subject to the December Release Conditions.
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
  
The Series B Preferred Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Series B Preferred Shares, based on a conversion price of $1.40 per shares, plus all accrued and unpaid dividends, if any, on such Series B Preferred Shares, as of such date of determination, divided by the conversion price. The stated value of each Preferred Share is $140.00 and the initial conversion price is $1.40 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events. The Company is prohibited from effecting a conversion of the Series B Preferred Shares to the extent that, as a result of such conversion, such holder would beneficially own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock upon conversion of the Series B Preferred Shares, which beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%.  Subject to such beneficial ownership limitations, each holder is entitled to vote on all matters submitted to stockholders of the Company on an as converted basis, based on a conversion price of $1.40 per shares.  The Series B Preferred Shares rank junior to the Series A Preferred Shares and bear no dividends. All of the convertible preferred shares do not represent an unconditional obligation to be settled in a variable number of shares, are not redeemable and do not contain fixed or indexed conversion provisions similar to debt instruments. Accordingly, the convertible preferred shares are considered equity hosts and recorded in stockholders’ equity.
 
May 2015 Units and Series C Preferred Shares
 
On May 15, 2015 (the “May Closing Date”), the Company completed a private placement pursuant to separate subscription agreements (the “May Subscription Agreements”) with accredited investors (the “May Investors”) of $5,050 of units (the “May Units”), at a purchase price of $1.20 per Unit, resulting in net proceeds to the Company of $5.0 million.  Each May Unit consists of one share of the Company’s common stock, provided that, if the issuance of any such shares of common stock would have resulted in the recipient May Investor owning in excess of 4.99% of the Company’s issued and outstanding common stock, then such May Investor could elect to receive shares of the Company’s 0% Series C Convertible Preferred Stock (the “Series C Preferred Shares”) in lieu of common stock that are, on an as converted basis, equal to one share of common stock for every May Unit purchased, and a three-year warrant (the “May Warrants”) to purchase one share of the Company’s common stock at an exercise price of $1.40 per share (such sale and issuance, the “May Private Placement”).  An aggregate of 25,763 Series C Preferred Shares, 1,631,984 shares of common stock and 4,208,337 May Warrants were issued under the May Units. The offering was made in reliance upon an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).
 
The Series C Preferred Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Series C Preferred Shares, plus all accrued and unpaid dividends, if any, on such Series C Preferred Shares, as of such date of determination, divided by the conversion price.  The stated value of each Series C Preferred Share is $120.00 per share, and the initial conversion price is $1.20 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events.  In addition, in the event the Company issues or sells, or is deemed to issue or sell, shares of common stock at a per share price that is less than the conversion price then in effect, the conversion price shall be reduced to such lower price, subject to certain exceptions and provided that the conversion price may not be reduced to less than $0.86, unless and until such time as the Company obtains shareholder approval to allow for a lower conversion price.  The Company is prohibited from effecting a conversion of the Series C Preferred Shares to the extent that, as a result of such conversion, such May Investor would beneficially own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock upon conversion of the Series C Preferred Shares, which beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%.  Subject to the beneficial ownership limitations discussed previously, each holder is entitled to vote on all matters submitted to stockholders of the Company, and shall have the number of votes equal to the number of shares of common stock issuable upon conversion of such holder’s Series C Preferred Shares, based on a conversion price of $1.30 per share.  The Series C Preferred Shares bear no dividends and shall rank junior to the Company’s Series A Preferred Shares but senior to the Company’s Series B Preferred Shares.
 
The May Warrants are exercisable, at any time, following the date the May Warrants are issued, at a price of $1.40 per share, subject to adjustment, and expire three years from the date of issuance. The holders may, subject to certain limitations, exercise the May Warrants on a cashless basis. The Company is prohibited from effecting an exercise of any May Warrant to the extent that, as a result of any such exercise, the holder would beneficially own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock upon exercise of such May Warrant, which beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%.  
  
In connection with the sale of the May Units, the Company also entered into separate registration rights agreements (the “May Registration Rights Agreement”) with each May Investor. The Company agreed to use its best efforts to file a registration statement to register the Shares and the common stock issuable upon the conversion of the Series C Preferred Shares, within thirty days following the May Closing Date, to cause such registration statement to be declared effective within ninety days of the filing day and to maintain the effectiveness of the registration statement until all of such shares of common stock have been sold or are otherwise able to be sold pursuant to Rule 144 without restriction.  In the event the Company fails to satisfy its obligations under the Registration Rights Agreement, the Company is obligated to pay to the May Investors on a monthly basis, an amount equal to 1% of the May Investor’s investment, up to a maximum of 12%. Effective as of the original filing deadline of the registration statement, the Company obtained the requisite approval from the May Investors for the waiver of its obligations under the May Registration Rights Agreement.
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
The proceeds of the May Private Placement were deposited into an escrow account (the “May Escrow Amount”) with Signature Bank, as escrow agent (the “May Escrow Agent”) pursuant to an escrow agreement (the “May Escrow Agreement”), entered into by and between the Company, the lead investor (as defined in the May Subscription Agreements) and the May Escrow Agent, and certificates representing the May Warrants and a record of the Shares and Series C Preferred Shares, sold in the May Private Placement were deposited and recorded with the Company’s corporate secretary (the “May Securities Escrow Agent”) to be held in escrow. On the May Closing Date, twenty percent (20%) of the May Escrow Amount ($1.0 million) was released by the May Escrow Agent to the Company in exchange for the release of twenty percent (20%) of May Units by the May Securities Escrow Agent to the May Investors.  The remaining eighty percent (80%) of the May Escrow Amount ($4.0 million) was released by the May Escrow Agent to the Company and the corresponding percentage of May Units were released to the May Investors, under amendments to the May subscription agreements. On September 25, 2015, the lead investor approved the release and the May Escrow Agent and the May Securities Escrow Agent released all funds and May Units remaining in escrow.
 
The Company evaluated the guidance ASC 480-10 Distinguishing Liabilities from Equity and ASC 815-40 Contracts in an Entity’s Own Equity  to determine the appropriate classification of the instruments. The Series C Preferred Shares do not represent an unconditional obligation to be settled in a variable number of shares of common stock, are not redeemable and do not contain fixed or indexed conversion provisions similar to debt instruments. Accordingly, the Series C Preferred Shares are considered equity hosts and recorded in stockholders’ equity. The May Warrants do not contain contingent settlement terms not indexed solely to the Company’s own shares of common stock and, accordingly, were also recorded in stockholders' equity. The Company allocated $2.0 million, $1.3 million and $1.8 million of net proceeds to the Series C Preferred Stock, the common stock and the warrants, respectively, based on their relative fair values. The Company incurred $25,000 of offering expenses.
 
September 2015 Exchange and Series D Preferred Shares
 
On September 25, 2015, the Company entered into Amendment Agreements (the “Amendments”) which amended the terms of the December Subscription Agreements and May Subscription Agreements. Under the Amendments, the lead investors under the subscription agreements agreed to release all funds remaining held in escrow ($5.0 million under the December 17, 2014 closing and $4.0 million under the May 15, 2015 closing) upon the appointment of certain persons as officers and directors of the Company.
 
In connection with the Amendments, the Company also entered into Exchange Agreements with the holders of the May Warrants (the “September Exchange Agreements”) and authorized the issuance of .4 shares of common stock for each share of our Common Stock into which the May Warrants was then convertible, in exchange for cancellation of the May Warrants.  The Company agreed that holders of the May Warrants could exchange their May Warrants and receive either: (1) .4 shares of common stock for each share of common stock into which the May Warrant was exercisable immediately, or (2) at the election of any holder who would, as a result of receipt of the common stock hold in excess of 4.99% of the Company’s issued and outstanding common stock, shares of 0% Series D Convertible Preferred Stock (the “Preferred D Shares”) exercisable for common stock on the same basis, but subject to 4.9% beneficial ownership blocker provisions which at the election of the holder, could be reduced to 2.49%. Under the agreement, the Company exchanged all of its May Warrants for an aggregate of 168,333 new shares of 0% Series D Convertible Preferred Stock, which upon full conversion on a fully-diluted basis, convert into 1,683,333 shares of newly issued common stock.
 
The Preferred D Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Preferred D Share, plus all accrued and unpaid dividends, if any, on such Preferred D Share, as of such date of determination, divided by the conversion price. The stated value Preferred D Shares is $1,000.00 per share and the initial conversion price is $100.00 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events. The Company is prohibited from effecting a conversion of the Preferred D Shares to the extent that, as a result of such conversion, such investor would beneficially own more than 4.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of the Preferred D Shares. Upon 61 days written notice, the beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%. Except as otherwise required by law, holders of Series D Preferred Shares shall not have any voting rights. Pursuant to the Certificate of Designations, Preferences and Rights of the 0% Series D Convertible Preferred Stock, the Preferred D Shares bear no interest and shall rank senior to the Company’s other classes of capital stock. The Company accounted for the exchange as a redemption of the warrants and recorded the estimated fair value of Series D Convertible Preferred Stock issued, amounting to $1,969 with a charge to paid-in capital. As the value of the preferred shares issued was less than the value of the warrants redeemed, no excess value needed to be attributed and no portion of the redemption was deemed a dividend.
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

April 2016 Registered Common Stock and Warrant Offering

On April 13, 2016, the Company entered into a Securities Purchase Agreement with certain institutional investors providing for the issuance and sale by the Company of 1,500,000 shares of the Company’s common stock, par value $0.001 per share at an offering price of $1.00 per share, for net proceeds of $1.4 million after deducting placement agent fees and expenses. In addition, the Company sold to purchasers of common stock in this offering, warrants to purchase 1,125,000 shares of its common stock. The common shares and the Warrant Shares were offered by the Company pursuant to an effective shelf registration statement on Form S-3, which was initially filed with the Securities and Exchange Commission on October 22, 2015 and declared effective on December 7, 2015. The closing of the offering occurred on April 19, 2016.

Each Warrant is immediately exercisable for two years, but not thereafter, at an exercise price of $1.15 per share. Subject to limited exceptions, a holder of warrants will not have the right to exercise any portion of its warrants if the holder, together with its affiliates, would beneficially own in excess of 4.99% of the number of shares of our common stock outstanding immediately after giving effect to such exercise.  The exercise price and number of warrants are subject to adjustment in the event of any stock dividends and splits, reverse stock split, stock dividend, recapitalization, reorganization or similar transaction. The Warrants were classified as liabilities and measured at fair value, with changes in fair value recognized in the Condensed Consolidated Statements of Operations in other expenses (income). The initial recognition of the Warrants resulted in an allocation of the net proceeds from the offering to a warrant liability of approximately $318,000, with the remainder being attributable to the common stock sold in the offering.
 
Preferred Share Conversion Activity

During the six months ended April 30, 2016, 599,634 shares of Convertible Preferred Stock Series A and 12,001 shares of Convertible Preferred Stock Series D were converted into 719,644 shares of common stock.

Common Stock

On December 18, 2015, the Company issued 50,000 shares of restricted stock to a director.  The fair value of the stock on the grant date was $39,000 (based on a grant date stock price of $0.77 per share) and will be recognized over 1 year.

On January 4, 2016, the Company declared a special cash dividend of an aggregate of $10.0 million to holders of record on January 14, 2016 of its outstanding shares of: (i) common stock (ii) Series A Convertible Preferred Stock; (iii) Series B Convertible Preferred Stock; (iv) Series C Convertible Preferred Stock and (v) Series D Convertible Preferred Stock.  The holders of record of the Company’s outstanding preferred stock participated in the dividend on an “as converted” basis.

On January 6, 2016, certain investors exercised their options at $0.68 in exchange for the Company’s common stock for an aggregated amount of 189,938 shares.
 
On February 1, 2016, the Company issued 15,000 shares of restricted stock to a non-employee service provider and is being recognized over the one year service period.
 
7. FAIR VALUE MEASUREMENTS

In accordance with ASC 820, Fair Value Measurements, financial instruments were measured at fair value using a three-level hierarchy which maximizes use of observable inputs and minimizes use of unobservable inputs:

·
Level 1: Observable inputs such as quoted prices in active markets for identical instruments
 
·
Level 2: Quoted prices for similar instruments that are directly or indirectly observable in the market
 
·
Level 3: Significant unobservable inputs supported by little or no market activity.  Financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, for which determination of fair value requires significant judgment or estimation.

In connection with the April 19, 2016 common stock offering, the Company issued warrants to purchase an aggregate of 1,125,000 shares of common stock.  These warrants are exercisable at $1.15 per share and expire on April 19, 2018. These warrants were analyzed and it was determined that they require liability treatment. In addition, Under ASC 815, registered common stock warrants that require the issuance of registered shares upon exercise and do not expressly preclude an implied right to cash settlement are accounted for as derivative liabilities.  The Company classifies these derivative warrant liabilities on the condensed consolidated balance sheet as a current liability.
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The fair value of these warrants at April 19, 2016,  and April 30, 2016 was determined to be approximately $318,000 and $344,000, respectively, as calculated using Black-Scholes with the following assumptions: (1) stock price of $0.79 and $0.83, respectively; (2) a risk free rate of 0.77%; and (3) an expected volatility of 86%.

Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. At April 30, 2016, the warrant liability balance of $344,000  was classified as Level 3 instruments.
 
The following table sets forth the changes in the estimated fair value for our Level 3 classified derivative warrant liability (from April 19, 2016 through April 30, 2016):

   
Warrants
  
Fair value at the beginning of period
   $ -  
Additions
     317,836  
Change in fair value
      26,186  
Fair value at end of period
   $ 344,022  
 
8. STOCK BASED COMPENSATION ARRANGEMENTS
 
Stock-based compensation expense during the three months ended April 30, 2016 and 2015 amounted to approximately $446,000 and $168,000 respectively. Stock-based compensation expense in the six months ended April 30, 2016 and 2015 amounted to approximately $993,000 and $388,000 respectively. Stock-based compensation expense is recorded in general and administrative expenses in the accompanying consolidated statements of operations.

A summary of the Company’s stock option activity in the six months ended April 30, 2016 is presented below:
 
   
Number of shares
    
Weighted-Average
Exercise Price
  
Outstanding at beginning of period
     579,485     $ 2.82  
Granted
     38,092     $ 1.05  
Exercised
     (189,938 )   $ 0.68  
Expired
     (105,933 )   $ 5.12  
Outstanding at end of period
     321,706     $ 3.11  
Options exercisable at end of period
     283,614     $ 3.39  
Weighted-average fair value of options granted during the period
           $ 1.05  

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the six months ended April 30, 2016:

   
April 30, 2016
  
Risk free annual interest rate
     1.7 %
Expected volatility
     79 %
Expected life
     5  
Assumed dividends
  
None
  
 
The value of stock option grants is amortized over the vesting period of, generally, one to three years. As of April 30, 2016, there was approximately $19,000 of unrecognized compensation cost related to non-vested stock option awards, which is expected to be recognized over a remaining weighted-average vesting period of 0.4 year.
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
A summary of the Company’s restricted stock activity in the six months ended April 30, 2016 is presented below:

   
Number of shares
    
Weighted-Average Grant-Date Fair Value
  
Unvested at beginning of period
     1,384,791     $ 1.25  
Granted
     65,000     $ 0.77  
Vested
     (464,588 )   $ 1.23  
Forfeited
     -     $ -  
Unvested at end of period
     985,203     $ 1.22  
 
 The weighted-average fair value of restricted shares granted during the six months ended April 30, 2016 was $0.77. The total fair value of restricted stock vested during the six months ended April 30, 2016 was approximately $391,000.
 
The value of restricted stock grants are measured based on their fair value on the date of grant and amortized over the vesting period of, generally, six months to three years. As of April 30, 2016, there was approximately $712,000 of unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a remaining weighted-average vesting period of 0.4 years. The vesting period of 464,583 restricted shares is subject to acceleration upon the achievement of certain performance conditions related to financing or other corporate transactions.
  
9. INCOME TAXES
 
Due to the Company’s history of losses and uncertainty of future taxable income, a valuation allowance sufficient to fully offset net operating losses and other deferred tax assets has been established. The valuation allowance will be maintained until sufficient positive evidence exists to support a conclusion that a valuation allowance is not necessary. The Company’s effective tax rate for the six months ended April 30, 2016 and 2015 differed from the expected U.S. federal statutory rate primarily due to the change in the valuation allowance. Full conversion of the outstanding shares of Preferred Stock will likely result in limitations on the utilization of the Company’s net operating loss carryforwards under IRS section 382.
 
10. LOSS PER SHARE
 
Shares of common stock issuable under convertible preferred stock, warrants and options and shares subject to restricted stock grants were not included in the calculation of diluted earnings per common share for the three months and six months ended April 30, 2016 and 2015, as the effect of their inclusion would be anti-dilutive.
 
The table below provides total potential shares outstanding, including those that are anti-dilutive, on April 30, 2016:
 
   
2016
  
Shares issuable upon exercise of warrants
    
1,125,000
  
Shares issuable upon conversion of preferred stock
    
17,737,178
  
Shares issuable upon exercise of stock options
    
321,706
  
Non-vested shares under restricted stock grants
    
985,203
  
  
11. COMMITMENTS AND CONTINGENCIES
 
Contingencies
 
On February 26, 2015, a complaint for patent infringement was filed in the United States District Court for the Eastern District of Texas by Richard Baker, an individual residing in Australia, against Microsoft, Nintendo, the Company and a number of other game publisher defendants. The complaint alleges that the Company’s Zumba Fitness Kinect game infringed plaintiff’s patents in motion tracking technology. The plaintiff is representing himself pro se in the litigation and is seeking monetary damages in the amount of $1.3 million. The Company, in conjunction with Microsoft, is defending itself against the claim and has certain third party indemnity rights from developers for costs incurred in the litigation. In August 2015, the defendants jointly moved to transfer the case to the Western District of Washington. The motion is currently pending. The Company cannot currently estimate a potential range of loss if the claim against the Company is successful.
 
 
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
In addition to the item above, the Company at times may be a party to claims and suits in the ordinary course of business. We record a liability when it is both probable that a liability has been incurred and the amount of the loss or range of loss can be reasonably estimated. The Company has not recorded a liability with respect to the matter above. While the Company believes that it has valid defenses with respect to the legal matter pending and intends to vigorously defend the matter above, given the uncertainty surrounding litigation and our inability to assess the likelihood of a favorable or unfavorable outcome, it is possible that the resolution of the matter could have a material adverse effect on our consolidated financial position, cash flows or results of operations.
 
Commitments
 
The Company incurs rent expense under a short-term operating lease for administrative offices, which expires in fiscal 2016. Total rent expense amounted to approximately $5,000 and $14,000 for the three months ended April 30, 2016 and 2015, respectively. Total rent expense amounted to approximately $10,000 and $85,000 for the six months ended April 30, 2016 and 2015, respectively, including charges incurred upon vacating its previous administrative offices.

 The Company has entered into employment agreements with key executives that contain severance terms and change of control provisions.
 
12. RELATED PARTIES
 
In January 2015, the Company entered into an agreement with Equity Stock Transfer for transfer agent services. A Board member of the Company is a co-founder and chief executive officer of Equity Stock Transfer. Fees under the agreement were approximately $2,000 and $5,000 in the six months ended April 30, 2016 and 2015, respectively.
 
13. ASSIGNMENT OF ASSETS AND LIABILITIES

On July 31, 2015, the Company transferred to Zift Interactive LLC (“Zift”), a newly-formed subsidiary, certain rights under certain of its publishing licenses related to developing, publishing and distributing video game products through retail distribution for a term of one year. The Company transferred Zift to its former chief executive officer, Jesse Sutton. In exchange, the Company received Mr. Sutton’s resignation from the position of chief executive officer of the Company, including waiver of any severance payments and the execution of a separation agreement, together with his agreement to serve as a consultant to the Company. In addition, Zift will pay the Company a specified percent of its net revenue from retail sales on a quarterly basis.
 
In addition, the Company entered into a conveyance agreement with Zift under which it assigned to Zift certain assets used in the retail business and Zift agreed to assume and indemnify the Company for liabilities and claims related to the retail business, including customer claims for price protection and promotional allowances. The assets transferred to Zift included cash in an amount of $800,000, of which $400,000 was transferred immediately and the remaining $400,000 is payable by the Company in twelve equal consecutive monthly installments of  approximately $33,000 commencing August 1, 2015, and certain accounts receivable and inventory with an aggregate carrying value of approximately $87,000.  As of April 30, 2016, the Company had a payable of approximately $76,000 to Zift.
 
14. SUBSEQUENT EVENTS

 On May 10, 2016, the Company granted 1,975,000 stock options and 1,975,000 restricted stock shares to employees and independent directors.  Additionally, the Company granted 50,000 restricted stock shares to a vendor for services.
 
 
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
 
Statements in this quarterly report on Form 10-Q that are not historical facts constitute forward-looking statements that are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, or the “Exchange Act”. Examples of forward-looking statements include statements relating to industry prospects, our future economic performance including anticipated revenues and expenditures, results of operations or financial position, and other financial items, our business plans and objectives, including our intended product releases, and may include certain assumptions that underlie forward-looking statements. Risks and uncertainties that may affect our future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements include, among other things, those listed under “Risk Factors” and elsewhere in our annual report on Form 10-K for the fiscal year ended October 31, 2015. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are subject to business and economic risk and reflect management’s current expectations, and involve subjects that are inherently uncertain and difficult to predict. Actual events or results may differ materially. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of these statements. We are under no duty to update any of the forward-looking statements after the date of this report to conform these statements to actual results. References herein to “we,” “us,” and “the Company” are to Majesco Entertainment Company.

Overview
 
Majesco Entertainment Company is an innovative developer, marketer, publisher and distributor of interactive entertainment for consumers around the world. Building on more than 25 years of operating history, Majesco develops and publishes a wide range of video games on digital networks through its Midnight City label, including Nintendo’s DS, 3DS, Wii and WiiU, Sony’s PlayStation 3 and 4, or PS3 and PS4, Microsoft’s Xbox 360 and Xbox One and the personal computer, or PC. Although, historically, we have sold packaged software to large retail chains, specialty retail stores, video game rental outlets and distributors and through digital distribution for platforms such as Xbox Live Arcade, PlayStation Network, or PSN, and Steam, and for mobile devices and online platforms, we are now purposed to operate, almost exclusively, in our digital software business unit.
 
Video Game Products
 
Net Revenues.  Our revenues are principally derived from sales of our video games. We provide video games primarily for the mass market and casual-game player. Our revenues are recognized net of estimated provisions for price protection and other allowances. When we act as an agent in the distribution of games developed by others, we recognize revenue net of the share of revenue due to the developer in the form of wholesale price, royalties and/or distribution fees.
 
Cost of Sales.  Cost of sales consists of product costs and amortization and impairment of capitalized software development costs and license fees. A significant component of our cost of sales of packaged games is product costs. Product costs are comprised primarily of manufacturing and packaging costs of the disc or cartridge media, royalties to the platform manufacturer and manufacturing and packaging costs of peripherals. Commencing upon the related product’s release, capitalized software development and intellectual property license costs are amortized to cost of sales.
 
Gross Profit.  Gross profit is the excess of net revenues over product costs and amortization and impairment of software development and license fees. Development and license fees incurred to produce video games are generally incurred up front and amortized to cost of sales. The recovery of these costs and total gross profit is dependent upon achieving a certain sales volume, which varies by title.
 
Product Research and Development Expenses.  Product research and development expenses have historically related principally to our cost of supervision of third party video game developers, testing new products, development of social games and conducting quality assurance evaluations during the development cycle that are not allocated to games for which technological feasibility has been established. Costs incurred have been primarily employee-related, may include equipment, and are not allocated to cost of sales. Ongoing research and development activities have been substantially reduced since fiscal 2014.
 
Selling and Marketing Expenses.  Our selling and marketing expenses previously consisted of advertising and promotion expenses, including television advertising, the cost of shipping products to customers, and related employee costs. Credits to retailers for trade advertising were components of these expenses. Following the transfer of retail distribution activities in July 2015, such expenses are now limited to selected activities online and in social media.
 
General and Administrative Expenses.  General and administrative expenses primarily represent employee related costs, including stock compensation, for corporate executive and support staff, general office expenses, professional fees and various other overhead charges. Professional fees, including legal and accounting expenses, typically represent one of the largest components of our general and administrative expenses. These fees are partially attributable to our required activities as a publicly traded company, such as SEC filings, and corporate- and business-development initiatives.
 
 
Interest and Financing Costs.  Interest and financing costs were directly attributable to our factoring and our purchase-order financing arrangements. Such costs included commitment fees and fees based upon the value of customer invoices factored.
 
Income Taxes.  Income taxes consist of our provisions for income taxes, as affected by our net operating loss carryforwards. Future utilization of our net operating loss, or NOL, carryforwards may be subject to a substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code. The annual limitation may result in the expiration of NOL carryforwards before utilization. Due to our history of losses, a valuation allowance sufficient to fully offset our NOL and other deferred tax assets has been established under current accounting pronouncements, and this valuation allowance will be maintained unless sufficient positive evidence develops to support its reversal.
 
Seasonality and Variations in Interim Quarterly Results
 
Historically we sold products through two sales channels, retail and digital, we currently only sell digitally.  In the past, we would   experience generally higher sales in the first and fourth quarters of our fiscal year (ending January 31 and October 31, respectively) due to increased retail sales during the holiday season. Currently, we believe that we have little to no seasonality.

Critical Accounting Estimates
 
Our discussion and analysis of the financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP.
 
The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from these estimates under different assumptions or conditions.
 
We have identified the policies below as critical to our business operations and to the understanding of our financial results. The impact and any associated risks related to these policies on our business operations is discussed throughout management’s discussion and analysis of financial condition and results of operations when such policies affect our reported and expected financial results.
 
Revenue Recognition.  We recognized revenue on the sale of packaged goods upon the shipment of our product when: (1) risks and rewards of ownership are transferred; (2) persuasive evidence of an arrangement exists; (3) we have no continuing obligations to the customer; and (4) the collection of related accounts receivable is probable. Certain products are sold to customers with a street date (the earliest date these products may be resold by retailers). Revenue for sales of these products is not recognized prior to their street date. Some of our software products provide limited online features at no additional cost to the consumer. Generally, we have considered such features to be incidental to our overall product offerings and an inconsequential deliverable. Accordingly, we do not defer any revenue related to products containing these limited online features. However, in instances where online features or additional functionality is considered a substantive deliverable in addition to the software product, such characteristics will be taken into account when applying our revenue recognition policy. To date, we have not earned significant revenues from such features. In addition, some of our software products are sold exclusively as downloads of digital content for which the consumer takes possession of the digital content for a fee. Revenue from product downloads is generally recognized when the download is made available (assuming all other recognition criteria are met).
 
When we enter into license or distribution agreements that provide for multiple copies of games in exchange for guaranteed amounts, revenue is recognized in accordance with the terms of the agreements, generally upon delivery of a master copy, assuming our performance obligations are complete and all other recognition criteria are met, or as per-copy royalties are earned on sales of games.
 
Price Protection and Other Allowances.  We generally sold our products on a no-return basis, although in certain instances, we provide price protection or other allowances on certain unsold products in accordance with industry practices. Price protection, when granted and applicable, allows customers a partial credit with respect to merchandise unsold by them. Revenue is recognized net of estimates of these allowances. Sales incentives and other consideration that represent costs incurred by us for benefits received, such as the appearance of our products in a customer’s national circular advertisement, are generally reflected as selling and marketing expenses. We estimate potential future product price protection and other discounts related to current period product revenue.
 
Our provisions for price protection and other allowances fluctuate over periods as a result of a number of factors including analysis of historical experience, current sell-through of retailer inventory of our products, current trends in the interactive entertainment market, the overall economy, changes in customer demand and acceptance of our products and other related factors. Significant management judgments and estimates must be made and used in connection with establishing the allowance for returns and price protection in any accounting period.
 
 
Capitalized Software Development Costs and License Fees.  Software development costs include development fees, primarily in the form of milestone payments made to independent software developers. Software development costs are capitalized once technological feasibility of a product is established and management expects such costs to be recoverable against future revenues. For products where proven game engine technology exists, this may occur early in the development cycle. Technological feasibility is evaluated on a product-by-product basis. Amounts related to software development that are not capitalized are charged immediately to product research and development costs. Commencing upon a related product’s release, capitalized software development costs are amortized to cost of sales based upon the higher of (i) the ratio of current revenue to total projected revenue or (ii) straight-line charges over the expected marketable life of the product.
 
Prepaid license fees represent license fees to holders for the use of their intellectual property rights in the development of our products. Minimum guaranteed royalty payments for intellectual property licenses are initially recorded as an asset (capitalized license fees) and a current liability (accrued royalties payable) at the contractual amount upon execution of the contract or when specified milestones or events occur and when no significant performance commitment remains with the licensor. Licenses are expensed to cost of sales at the higher of (i) the contractual royalty rate based on actual sales or (ii) an effective rate based upon total projected revenue related to such license. Capitalized software development costs are classified as non-current if they relate to titles for which we estimate the release date to be more than one year from the balance sheet date.
 
The amortization period for capitalized software development costs and license fees is usually no longer than one year from the initial release of the product. If actual revenues or revised forecasted revenues fall below the initial forecasted revenue for a particular license, the charge to cost of sales may be larger than anticipated in any given quarter. The recoverability of capitalized software development costs and license fees is evaluated quarterly based on the expected performance of the specific products to which the costs relate.
 
When, in management’s estimate, future cash flows will not be sufficient to recover previously capitalized costs, we expense these capitalized costs to cost of sales - loss on impairment of capitalized software development costs and license fees - future releases, in the period such a determination is made. These expenses may be incurred prior to a game’s release. If a game is cancelled and never released to market, the amount is expensed to operating costs and expenses - loss on impairment of capitalized software development costs and license fees - cancelled games. If we were required to write off licenses or capitalized software development costs, due to changes in market conditions or product acceptance, our results of operations could be materially adversely affected.
 
License fees and milestone payments made to our third party developers are typically considered non-refundable advances against the total compensation they can earn based upon the sales performance of the products. Any additional royalty or other compensation earned beyond the milestone payments is expensed to cost of sales as incurred.
 
We expense as research and development costs associated with the development of mobile and social games when we cannot reliably project that future net cash flows from developed games will exceed related development costs. These games have not earned significant revenues to date and we are continuing to evaluate alternatives for future development and monetization.
 
Accounting for Stock-Based Compensation.  Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period. Determining the fair value of stock-based awards at the grant date requires judgment, including, in the case of stock option awards, estimating expected stock volatility. In addition, judgment is also required in estimating the amount of stock-based awards that are expected to be forfeited. If actual results differ significantly from these estimates, stock-based compensation expense and our results of operations could be materially impacted.
 
Accounting for Common and Preferred Stock and Warrant transactions.  We issued units consisting of preferred shares and warrants and common stock and warrants and subsequently remeasured certain of those warrants. Determining the fair value of the securities in these transactions requires significant judgment, including adjustments to quoted share prices and expected stock volatility. Such estimates may significantly impact our results of operations and losses applicable to common stockholders.
 
Commitments and Contingencies. We record a liability for commitments and contingencies when the amount is both probable and reasonably estimable. We record associated legal fees as incurred. We accrued contingent liabilities for certain potential licensor and customer liabilities and claims that were transferred to Zift but may not be extinguished by such transaction.
 
Results of Operations
 
Three months ended April 30, 2016 versus three months ended April 30, 2015

In 2015, the Company transferred to Zift Interactive LLC (“Zift”), a newly-formed subsidiary, certain rights under certain of its publishing licenses related to developing, publishing and distributing video game products through retail distribution for a term of one year. The Company transferred Zift to its former chief executive officer, Jesse Sutton. In exchange, the Company received Mr. Sutton’s resignation from the position of chief executive officer of the Company, including waiver of any severance payments and the execution of a separation agreement, together with his agreement to serve as a consultant to the Company. In addition, Zift will pay the Company a specified percent of its net revenue from retail sales on a quarterly basis.  Approximately $243,000 was paid to Zift during the quarter ended April 30, 2016. The total amount paid relates to the monthly payments on its original $400,000 payable to Zift and other activity.
 
 
Net Revenues. Net revenues for the three months ended April 30, 2016 decreased 76% to approximately $412,000 from $1.7 million in the comparable quarter last year. The decrease was due to lower sales of Zumba titles.  Additionally, there were no retail sales in 2016 due to the transfer of the retail distribution channel to Zift in July 2015.
 
Gross Profit. Gross profit for the three months ended April 30, 2016 decreased 64% to approximately $287,000 compared to a gross profit of approximately $797,000 in the same period last year. The decrease in gross profit reflects lower Zumba and other sales as discussed above, as well as the Company’s withdrawal from the packaged software business. Gross profit as a percentage of net sales was 70% for the three months ended April 30, 2016, compared to 47% for the three months ended April 30, 2015.  The increase in gross profit percentage is due to the dramatically lower cost of sales associated with a digitally sold product.
 
Product Research and Development Expenses. Product research and development expenses for the three months ended April 30, 2016 decreased 31% to approximately $20,000 compared to $29,000 in the same period last year.
 
Selling and Marketing Expenses. Total selling and marketing expenses for the three months ended April 30, 2016 decreased 89% to approximately $19,000 compared to approximately $170,000 for the three months ended April 30, 2015. The decrease is primarily due to lower personnel costs and other marketing and distribution activities related to our games generally.
 
General and Administrative Expenses. For the three month period ended April 30, 2016, general and administrative expenses increased slightly to approximately $1.3 million compared to $1.3 million for the three months ended April 30, 2015.
 
Operating loss. Operating loss for the three months ended April 30, 2016 decreased 21% to approximately $1.1 million, compared to an operating loss of approximately $1.4 million in the comparable period in 2015, primarily reflecting workforce reduction expenses in 2015.
 
Extinguishment of liabilities. During the three months ended April 30, 2015, we recognized a gain on extinguishment of liabilities of approximately $524,000. We determined that certain accounts payable balances and claims for license fees and services would never be paid because they were no longer being pursued for payment and had passed the statute of limitations.
  
Change in fair value of warrant liability. In our December 2014 private placement of units consisting of preferred stock and warrants, we issued warrants containing certain contingent settlement terms not indexed to our own stock. We accounted for the warrants as derivative liabilities and measured their fair value on a quarterly basis and recognized on a current basis any gains or losses. In the three months ended April 30, 2015, we recognized a loss of approximately $768,000 reflecting an increase in our stock price from the previous measurement date.  In our April 19, 2016, equity offering, we issued warrants. We accounted for the warrants as derivative liabilities and measure their fair value on a quarterly basis and recognize on a current basis any gains or losses. In the three months ended April 30, 2016, we recognized a loss of approximately $26,000 reflecting an increase in our stock price from the previous measurement date.
 
Income Taxes. In the three months ended April 30, 2016 and 2015, our income tax expense was not significant, representing primarily minimum state income taxes.

Six months ended April 30, 2016 versus six months ended April 30, 2015

Net Revenues. Net revenues for the six months ended April 30, 2016 decreased 81% to approximately $1.0 million from $5.2 million in the comparable six months last year. The decrease was due to lower sales of Zumba titles.  Additionally, there were no retail sales in 2016 due to the transfer of the retail distribution channel to Zift in July 2015.
 
Gross Profit. Gross profit for the six months ended April 30, 2016 decreased 62% to approximately $820,000 compared to a gross profit of approximately $2.2 million in the same period last year. The decrease in gross profit reflects lower Zumba and other sales as discussed above, as well as the Company’s withdrawal from the packaged software business. Gross profit as a percentage of net sales was 82% for the six months ended April 30, 2016, compared to 42% for the six months ended April 30, 2015.  The increase in gross profit percentage is due to the dramatically lower cost of sales associated with a digitally sold product.
 
Product Research and Development Expenses. Product research and development expenses was approximately $55,000 for both the six months ended April 30, 2016 and 2015.
 
 
Selling and Marketing Expenses. Total selling and marketing expenses for the six months ended April 30, 2016 decreased 93% to approximately $42,000 compared to approximately $610,000 for the six months ended April 30, 2015. The decrease is primarily due to lower personnel costs and other marketing and distribution activities related to our games generally.
 
General and Administrative Expenses. For the six month period ended April 30, 2016, general and administrative expenses decreased 20% to approximately $2.4 million compared to $3.0 million for the six months ended April 30, 2015. The decrease reflects lower compensation costs, consulting and professional fees and related support expenses.
 
Operating loss. Operating loss for the six months ended April 30, 2016 decreased 25% to approximately $1.7 million, compared to an operating loss of approximately $2.3 million in the comparable period in 2015, primarily reflecting expense reductions in marketing activities and workforce reduction expenses in 2015.
 
Extinguishment of liabilities. During the six months ended April 30, 2015, we recognized a gain on extinguishment of liabilities of approximately $1.1 million. We determined that certain accounts payable balances and claims for license fees and services would never be paid because they were no longer being pursued for payment and had passed the statute of limitations.
  
Net gains on asset sales. During the six months ended April 30, 2015, we recognized approximately $128,000 in net gain from the sale of certain game rights and from the sale of office furniture and equipment upon the move to a smaller office.

Change in fair value of warrant liability. In our December 2014 private placement of units consisting of preferred stock and warrants, we issued warrants containing certain contingent settlement terms not indexed to our own stock. We accounted for the warrants as derivative liabilities and measured their fair value on a quarterly basis and recognized on a current basis any gains or losses. In the six months ended April 30, 2015, we recognized a loss of approximately $1.5 million reflecting an increase in our stock price from the previous measurement date.  In our April 19, 2016, equity offering, we issued warrants. We accounted for the warrants as derivative liabilities and measure their fair value on a quarterly basis and recognize on a current basis any gains or losses. In the three months ended April 30, 2016, we recognized a loss of approximately $26,000 reflecting an increase in our stock price from the previous measurement date.
 
Income Taxes. In the six months ended April 30, 2016 and 2015, our income tax expense was not significant, representing primarily minimum state income taxes.
 
Liquidity and Capital Resources
 
As of April 30, 2016, our cash and cash equivalents balance was $7.3 million and our working capital was approximately $6.1 million, compared to cash and equivalents of $17.1 million and working capital of $15.6 million at October 31, 2015.
 
In fiscal 2013, 2014 and 2015, we experienced net cash outflows from operations, generally to fund operating losses due to declining revenues which we attribute to three factors: 1) the introduction of competing “freemium” games on competing handheld devices such as the Apple iPhone or iTouch, and Android powered devices; 2) a shift in game distribution from retail to digital downloads; and 3) a decline in the popularity of motion based fitness games including games we publish under the Zumba fitness brand. As a result of these factors we have reduced our operating expenses, including the reduction of game production and marketing personnel, and have eliminated substantially all of our new game development activities. We are evaluating various strategic alternatives to maximize company value including the acquisition of businesses that are not related to our existing video game operations. Additionally, the terms of the private placements restrict us from seeking funding from other sources as long as the preferred shares are outstanding, without the required consent of the holders of such shares.
 
In 2015, we transferred our retail distribution activities to Zift and transferred related assets and liabilities, including accounts receivable, inventory, customer credits and certain other liabilities. We do not expect to maintain significant similar working capital balances in the foreseeable future or experience the variability in such balances previously associated with new releases and seasonal activities. Accordingly, current cash and working capital balances exceed expected working capital requirements for our current digital distribution activities over the foreseeable future. Our operating results may vary significantly from period to period and our ability to achieve future profitability or cash flows from operations is dependent on increased revenue.  We may be required to modify our plans, or seek outside sources of financing, and/or equity sales, if our operating plan and sales targets are not met. There can be no assurance that such funds will be available on acceptable terms, if at all. In the event that we are unable to negotiate alternative financing, or negotiate terms that are acceptable to us, we may be forced to modify our business plan materially, including making reductions in game development and other expenditures. Excess cash and working capital balances may be used in future development activities or investments in new businesses, which may also significantly affect our financial condition and operating results.
 
 
Private Placements
 
The private placements described below were completed in December 2014 and May 2015. A substantial portion of the proceeds of these offerings remained subject to escrow agreements until September 2015, pending the satisfaction of release conditions.
 
December 2014
 
On December 17, 2014, pursuant to subscription agreements (the “December Subscription Agreements”) entered into with certain accredited investors, we completed a private placement of $6.0 million of units (the “December Units”) at a purchase price of $0.68 per December Unit, with each December Unit consisting of one share of our 0% Series A Convertible Preferred Stock (the “Series A Preferred Shares”) and a five year warrant (the “December Warrants”) to purchase one share of our common stock at an initial exercise price of $0.68 per share (such issuance and sale the “December Private Placement”). The December Warrants were subsequently exchanged for shares of our 0% Series B Convertible Preferred Stock (the “Series B Preferred Shares”) and shares of our common stock.
  
The Series A Preferred Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of the of such Series A Preferred Shares ($0.68 per share), plus all accrued and unpaid dividends, if any, divided by the conversion price (initially $0.68 per share, subject to adjustment). In the event we issue or sell, or are deemed to issue or sell, shares of our common stock at a per share price that is less than the conversion price then in effect, the conversion price shall be reduced to such lower price, subject to certain exceptions. Additionally, we are prohibited from incurring debt or liens, or entering into new financing transactions without the consent of the lead investor (as defined in the December Subscription Agreements) as long as any of the Series A Preferred Shares are outstanding. The Series A Preferred Shares bear no dividends.
 
The holders of Series A Preferred Shares shall vote together with the holders of common stock on all matters on an “as converted” basis, subject to beneficial ownership limitations, and shall not vote as a separate class. Notwithstanding the foregoing, the conversion price for purposes of calculating voting power shall in no event be lower than $0.59 per share. At no time may all or a portion of the Series A Preferred Shares be converted if the number of shares of common stock to be issued to such holders pursuant to such conversion would exceed, when aggregated with all other shares of common stock owned by the holder at such time, 4.99% of our outstanding common stock, subject to increase to 9.99%.
 
The proceeds of the offering and certificates representing the Series A Preferred Shares and December Warrants were deposited into escrow accounts. Upon the closing of the December Private Placement, $1.0 million of the proceeds was released to us and $1.0 million of Series A Preferred Shares and December Warrants, on a pro rata basis, was released to the investors. The remaining $5.0 million was released by the escrow agent to us and the corresponding $5.0 million of Series A Preferred Shares and December Warrants were released to the investors in September 2015, in connection with amendments to the December Subscription Agreements.
 
On April 30, 2015, pursuant to warrant exchange agreements, the holders exchanged for cancellation 8,823,537 December Warrants, including those then held in escrow, for shares of common stock or Series B Preferred Shares. An aggregate of 6,302,525 shares of common stock, which amount includes the shares of common stock issuable upon conversion of the Series B Preferred Shares, were issued or issuable in connection with the exchange agreements.
 
The Series B Preferred Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value ($140.00 per share) of the Series B Preferred Shares, plus all accrued and unpaid dividends, if any, divided by the conversion price (initially $1.40 per share, subject to adjustment). We are prohibited from effecting a conversion of the Series B Preferred Shares to the extent that, as a result of such conversion, such holder would beneficially own more than 4.99% of the number of shares of common stock outstanding, subject to increase, up to 9.99%.  Each holder is entitled to vote on all matters submitted to our  stockholders on an “as converted basis”, subject to beneficial ownership limitations, based on a conversion price of $1.40 per share.  
 
May 2015
 
On May 15, 2015 (the “May Closing Date”), we closed the sale of $5.05 million of units (the “May Units”), pursuant to separate subscription agreements (the “May Subscription Agreements”) with accredited investors entered into on April 29, 2015, at a purchase price of $1.20 per May Unit.  Each May Unit consists of one share of the our common stock, provided that, if the issuance of any such shares would have resulted in the investor owning in excess of 4.99% of our issued and outstanding common stock, then such investor could elect to receive shares of our 0% Series C Convertible Preferred Stock (the “Series C Preferred Shares”), and a three-year warrant (the “May Warrants”) to purchase one share of the our common stock at an exercise price of $1.40 per share (such sale and issuance, the “May Private Placement”).  
 
 
 
The Series C Preferred Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Series C Preferred Shares ($120.00 per share), plus all accrued and unpaid dividends, if any, divided by the conversion price ($1.20 per share, subject to adjustment).   In addition, in the event the we issue or sell, or are deemed to issue or sell, shares of our common stock at a per share price that is less than the conversion price then in effect, the conversion price shall be reduced to such lower price, subject to certain exceptions. Notwithstanding the foregoing, until such time as we obtain the required shareholder approval pursuant to the rules of The NASDAQ Stock Market, LLC, the conversion price of the Series C Preferred Shares shall not be adjusted to a per share price below $0.86.  We are prohibited from effecting a conversion of the Series C Preferred Shares to the extent that, as a result of such conversion, such holder would beneficially own more than 4.99% of the number of shares of common stock subject to increase, up to 9.99%.  Each holder is entitled to vote on all matters submitted to our  stockholders on an “as converted basis”, subject to the beneficial ownership limitation, based on a conversion price of $1.30 per share. The Series C Preferred Shares bear no interest and shall rank junior to our Series A Preferred Shares but senior to the Company’s Series B Preferred Shares.
 
The May Warrants are exercisable, immediately, at a price of $1.40 per share, subject to adjustment, and expire three years from the date of issuance. The holders may, subject to certain limitations, exercise the May Warrants on a cashless basis. We are prohibited from effecting an exercise of any May Warrant to the extent that, as a result of any such exercise, the holder would beneficially own more than 4.99% of the number of shares of common stock outstanding.  
 
The proceeds of the May Private Placement along with certificates evidencing the Series C Preferred Shares and Series C Warrants were deposited into an escrow accounts. On the May Closing Date, twenty percent (20%) of the proceeds of the May Private Placement ($1.01 million) and a corresponding number of Series C Preferred Shares and Series C Warrants were released to us and the investors, respectively.  The remaining eighty percent (80%) of the proceeds from the May Private Placement ($4.04 million) and the corresponding percentage of Series C Preferred Shares and Series C Warrants were released to us and the investors, respectively, in September 2015 in connection with amendments to the May Subscription Agreements.
 
September 2015
 
On September 25, 2015, we entered into amendment agreements to amend the terms of our subscription agreements for the private offerings closed December 17, 2014 and May 15, 2015 to provide for the consent of the lead investor in such offerings to release of all remaining escrowed funds to us ($5.0 million under the December Private Placement and $4.04 under the May Private Placement) upon the satisfaction of certain obligations, which we satisfied. Pursuant to the amendment agreements, we were, among other things, required to increase the size of its Board of Directors and appoint thereto, individuals deemed acceptable to the lead investor and approved by The NASDAQ Stock Market, LLC; appoint a new Chief Executive Officer and a new Chief Financial Officer and exchange the Series C Warrants, as described further below.  On September 30, 2015 we received $9.04 million in proceeds from the foregoing release of escrowed funds and the corresponding securities were released to the investors.
 
In accordance with the aforementioned escrow release conditions, we entered into exchange agreements with holders of our outstanding Series C Warrants pursuant to which each holder received .4 shares of our common stock for each 1 warrant share exchanged for cancellation.  At the election of any holder who would, as a result of receipt of the common stock hold in excess of certain beneficial ownership thresholds of our issued and outstanding common stock, such holder could receive shares of our newly designated 0% Series D Convertible Preferred Stock (the “Series D Preferred Shares”).  Pursuant to the foregoing exchanges, on September 25, 2015, we issued 0 shares of common stock and 168,333 Series D Preferred Shares convertible into 1,683,330 shares of common stock in exchange for the cancellation of Series C Warrants to purchase 4,208,337 shares of common stock. Certain of our officers and directors who held Series C Warrants participated in the exchange.
 
The Series D Preferred Shares are convertible into shares of common stock based on a conversion ratio equal to the stated value ($1,000.00 per share) of such Series D Preferred Shares to be converted, plus all accrued and unpaid dividends, if any, divided by the conversion price ($100.00 per share, subject to adjustment). We are prohibited from effecting a conversion of the Series D Preferred Shares to the extent that, as a result of such conversion, such holder would beneficially own more than 4.99% of the number of shares of Common Stock outstanding ,subject to increase, up to, 9.99%. The Series D Preferred Shares bear no interest and rank senior to the our common stock but junior to Series A Preferred Shares, Series B Preferred Shares and Series C Preferred Shares.
 
On October 15, 2015, our Board of Directors approved a revised version of the Certificate of Designations, Preferences and Rights of our 0% Series D Convertible Preferred Stock in order to remove any voting rights of the Series D Preferred Shares, except as otherwise required by law.
 
Dividends
 
On January 4, 2016, we declared a special cash dividend of an aggregate of $10.0 million to holders of record on January 14, 2016 of its outstanding shares of: (i) common stock (ii) Series A Preferred Shares; (iii) Series B Preferred Shares; (iv) Series C Preferred Shares and (v) Series D Preferred Shares.  The holders of record of the Company’s outstanding preferred stock participated in the dividend on an “as converted” basis.
 

April 2016 Registered Common Stock and Warrant Offering

On April 13, 2016, the Company, entered into a Securities Purchase Agreement with certain institutional investors providing for the issuance and sale by the Company of 1,500,000 shares of the Company’s common stock, par value $0.001 per share at an offering price of $1.00 per share, for net proceeds of $1.4 million after deducting placement agent fees and expenses. In addition, the Company sold to purchasers of common stock in this offering, warrants to purchase 1,125,000 shares of its common stock. The common shares and the Warrant Shares are being offered by the Company pursuant to an effective shelf registration statement on Form S-3, which was initially filed with the Securities and Exchange Commission on October 22, 2015 and declared effective on December 7, 2015.

Each Warrant is immediately exercisable for two years, but not thereafter, at an exercise price of $1.15 per share. Subject to limited exceptions, a holder of warrants will not have the right to exercise any portion of its warrants if the holder, together with its affiliates, would beneficially own in excess of 4.99% of the number of shares of our common stock outstanding immediately after giving effect to such exercise.  The exercise price and number of warrants will be subject to adjustment in the event of any stock dividends and splits, reverse stock split, stock dividend, recapitalization, reorganization or similar transaction.
 
The closing of the Offering occurred on April 19, 2016.
 
Off-Balance Sheet Arrangements
 
As of April 30, 2016, we had no off-balance sheet arrangements.
 
Inflation
 
Our management currently believes that inflation has not had, and does not currently have, a material impact on continuing operations.
 
Cash Flows
 
Cash and cash equivalents and working capital were approximately $7.3 million and $6.1 million, respectively, as of April 30, 2016 compared to approximately $17.1 million and $15.6 million at October 31, 2015, respectively.
  
Operating Cash Flows. Cash used in operating activities in the six months ended April 30, 2016 amounted to approximately $1.0 million, mainly related to the approximately $1.7 million loss, partially offset by non-cash share based compensation of approximately $1.0 million.
 
Investing Cash Flows. There are no investing activities for the six months ended April 30, 2016.
 
Financing Cash Flows. Net cash used in financing activities for the six months ended April 30, 2016 amounted to approximately $8.7 million, mainly related to a payment of a $10.0 million special cash dividend, partially offset by an equity capital raise of approximately $1.4 million.

Recent Accounting Pronouncements

Refer to our discussion of recent accounting pronouncements in Note 2 – Summary of Significant Accounting Policies to the accompanying condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. 

 
Not applicable.
 
 
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures, as defined in the Securities Exchange Act of 1934 Rule 13a-15(e) and 15d-15(e), as of the end of the period covered by this report.
 
In designing and evaluating our disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
 
 
While we believe our disclosure controls and procedures and our internal control over financial reporting are adequate, no system of controls can prevent errors and fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur. Controls can also be circumvented by individual acts of some people, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with its policies or procedures. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.
 
Subject to the limitations above, management believes that the condensed consolidated financial statements and other financial information contained in this report, fairly present in all material respects our financial condition, results of operations, and cash flows for the periods presented.
 
Based on the evaluation of the effectiveness of our disclosure controls and procedures, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) were effective at a reasonable assurance level.
 
Changes in Internal Control Over Financial Reporting
 
During the three months ended April 30, 2016, we enhanced our internal control over financial reporting by employing an external firm on a contract services basis.  This firm specializes in providing finance and accounting functions for small companies, and the founders and senior managers are highly experienced former employees of national accounting firms.
 
PART II. OTHER INFORMATION
 
 
On February 26, 2015, a complaint for patent infringement was filed in the United States District Court for the Eastern District of Texas by Richard Baker, an individual residing in Australia, against Microsoft, Nintendo, the Company and a number of other game publisher defendants. The complaint alleges that the Company’s Zumba Fitness Kinect game infringed plaintiff’s patents in motion tracking technology. The plaintiff is representing himself pro se in the litigation and is seeking monetary damages in the amount of $1.3 million. The Company, in conjunction with Microsoft, is defending itself against the claim and has certain third party indemnity rights from developers for costs incurred in the litigation. In August 2015, the defendants jointly moved to transfer the case to the Western District of Washington. On February 18, 2016, the Texas court granted the defendant's motion and ordered the case to be transferred to the Western District of Washington. On May 17, 2016, the Washington Court issued a scheduling order that provides that defendants leave to jointly file an early motion for summary judgement in June 2016.  Mr. Baker has indicated that he intends to oppose the motion. The Company cannot currently estimate a potential range of loss if the claim against the Company is successful.
 
In addition to the item above, the Company at times may be a party to claims and suits in the ordinary course of business. We record a liability when it is both probable that a liability has been incurred and the amount of the loss or range of loss can be reasonably estimated. The Company has not recorded a liability with respect to the matter above. While the Company believes that it has valid defenses with respect to the legal matter pending and intends to vigorously defend the matter above, given the uncertainty surrounding litigation and our inability to assess the likelihood of a favorable or unfavorable outcome, it is possible that the resolution of the matter could have a material adverse effect on our consolidated financial position, cash flows or results of operations.
 
 
None.
 
 
None.
 
 
None.
 
 
Not applicable.
 
 
 
None.
 
 
31.1*
31.2*
32*
101.INS*
XBRL Instance Document.
101.SCH*
XBRL Schema Document.
101.CAL*
XBRL Calculation Linkbase Document.
101.DEF*
XBRL Definition Linkbase Document.
101.LAB*
XBRL Label Linkbase Document.
101.PRE*
XBRL Presentation Linkbase Document.
 
* Filed herewith.
 
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
MAJESCO ENTERTAINMENT COMPANY
 
/s/ Barry Honig
  
Barry Honig
  
Chief Executive Officer
(Principal Executive Officer)
  
Date: June 9, 2016
  
   
/s/ John Stetson
  
John Stetson
  
Title: Chief Financial Officer
  
(Principal Financial and Accounting Officer)
  
Date: June 9, 2016
  
 
 
 
 
 -30-
EX-31.1 2 ex31-1.htm CERTIFICATION ex31-1.htm
  EXHIBIT 31.1
 
CERTIFICATION
 
I, Barry Honig, certify that:
 
 
1.
I have reviewed this Quarterly Report on Form 10-Q of Majesco Entertainment Company;
 
 
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
 
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
 
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15(d)-15(f)) for the registrant and have:
 
 
a)
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
b)
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
 
c)
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
 
d)
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
 
5.
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
 
a)
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
 
b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date: June 9, 2016
 
/s/ Barry Honig
  
Barry Honig
  
Title: Chief Executive Officer
  
 (Principal Executive Officer)
  
 

 EX-31.2 3 ex31-2.htm CERTIFICATION ex31-2.htm
EXHIBIT 31.2
 
CERTIFICATION
 
I, John Stetson, certify that:
 
 
1.
I have reviewed this Quarterly Report on Form 10-Q of Majesco Entertainment Company:
 
 
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
 
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
 
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15(d)-15(f)) for the registrant and have:
 
 
a)
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
b)
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
 
 
c)
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
 
 
d)
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and
 
 
5.
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
 
a)
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
 
b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date: June 9, 2016
 
/s/ John Stetson
  
John Stetson
  
Title: Chief Financial Officer
  
(Principal Financial Officer)
  
 

 EX-32 4 ex32.htm CERTIFICATION ex32.htm
EXHIBIT 32
 
Certification
Pursuant To Section 906 of the Sarbanes-Oxley Act Of 2002
(Subsections (A) And (B) Of Section 1350, Chapter 63 of Title 18, United States Code)
 
Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officers of Majesco Entertainment Company and Subsidiary (the “Company”), do hereby certify, to such officers’ knowledge, that:
 
The Quarterly Report on Form 10-Q for the period ending April 30, 2016 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
Dated: June 9, 2016
 
/s/ Barry Honig
  
Barry Honig
  
Title: Chief Executive Officer
  
(Principal Executive Officer)
  
   
/s/ John Stetson
  
John Stetson
  
Title: Chief Financial Officer
  
(Principal Financial and Accounting Officer)
  
 

 EX-101.INS 5 cool-20160430.xml XBRL INSTANCE DOCUMENT 0001076682 2015-11-01 2016-04-30 0001076682 2015-10-31 0001076682 2016-04-30 0001076682 2014-10-31 0001076682 2015-04-30 0001076682 us-gaap:SeriesAPreferredStockMember 2016-04-30 0001076682 us-gaap:SeriesBPreferredStockMember 2016-04-30 0001076682 us-gaap:SeriesCPreferredStockMember 2016-04-30 0001076682 us-gaap:SeriesDPreferredStockMember 2016-04-30 0001076682 cool:OtherMemberMember 2016-04-30 0001076682 2014-11-01 2015-04-30 0001076682 cool:MicrosoftCorporationMember us-gaap:SalesMember 2015-11-01 2016-04-30 0001076682 cool:ValveMember us-gaap:SalesMember 2015-11-01 2016-04-30 0001076682 cool:SonyMember us-gaap:SalesMember 2015-11-01 2016-04-30 0001076682 cool:MicrosoftCorporationMember us-gaap:AccountsReceivableMember 2015-11-01 2016-04-30 0001076682 cool:ZumbaFitnessGameMember us-gaap:SalesMember 2014-11-01 2015-04-30 0001076682 us-gaap:CommonStockMember 2015-11-01 2016-04-30 0001076682 us-gaap:RestrictedStockMember 2015-11-01 2016-04-30 0001076682 us-gaap:RestrictedStockMember 2016-04-30 0001076682 cool:TransferAgentMember 2015-11-01 2016-04-30 0001076682 2016-02-01 2016-04-30 0001076682 2015-02-01 2015-04-30 0001076682 2016-05-31 0001076682 cool:SidekickMember us-gaap:AccountsReceivableMember 2015-11-01 2016-04-30 0001076682 cool:ZumbaFitnessGameMember us-gaap:SalesMember 2015-11-01 2016-04-30 0001076682 us-gaap:RestrictedStockMember 2015-10-31 0001076682 cool:SeriesAConvertiblePreferredStockMember 2016-04-30 0001076682 cool:SeriesDConvertiblePreferredStockMember 2016-04-30 0001076682 cool:TransferAgentMember 2014-11-01 2015-04-30 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure 10-Q false 2016-04-30 2016 Q2 MAJESCO ENTERTAINMENT CO 0001076682 --10-31 Smaller Reporting Company COOL 283000 415000 179000 85000 101000 178000 17616000 8024000 45000 31000 17661000 8055000 1686000 1496000 318000 75000 2004000 1915000 2004000 1915000 11000 14000 128488000 121003000 -123536000 -125284000 15657000 6140000 17661000 8055000 9025265 8413630 0.001 0.001 250000000 250000000 11109293 13583875 11109293 13583875 61000 133000 30000 6000 10000 39000 61000 61000 78000 78000 139000 139000 94000 108000 479000 345000 681000 678000 510000 461000 16000 12000 15608875 17053000 7346000 7196000 9084000 0 344000 10694000 10407000 1999000 4569000 2010000 1829000 0 10000000 10000000 8830000 54250 26000 170000 919750 9025265 8413630 8177334 54201 25763 156332 0 5968000 5561000 5561000 0 0 0 0 1003000 5176000 412000 1705000 820000 2154000 287000 797000 183000 3022000 125000 908000 97000 952000 39000 245000 86000 2070000 86000 663000 -1732000 -2323000 -1078000 -1356000 2552000 4477000 1365000 2153000 14000 50000 7000 10000 0 713000 0 639000 2441000 3049000 1319000 1305000 42000 610000 19000 170000 55000 55000 20000 29000 -7750000 -4989000 -1101000 -3436000 0 2235000 0 1838000 6002000 0 0 0 -1748000 -2754000 -1101000 -1598000 0 3000 0 2000 -1748000 -2751000 -1101000 -1596000 26000 1547000 26000 768000 0 128000 0 3000 0 1050000 0 524000 -10000 59000 -3000 -1000 10543254 6568526 11294900 6610270 -0.74 -0.76 -0.10 -0.52 993000 388000 446000 168000 0 41000 85000 397000 0 108000 0 65000 21000 120000 -1424000 882000 0 -14000 0 -1368000 -190000 -1803000 77000 -50000 0 -57000 -9000 0 0 -1193000 132000 -1335000 0 217000 0 217000 -8465000 789000 0 -12000 0 801000 1406000 0 129000 0 10000000 0 -9707000 1888000 0 98000 147000 0 140000 0 75000 0 0 5312000 <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The accompanying financial statements present the financial results of Majesco Entertainment Company and Majesco Europe Limited, its wholly-owned subsidiary, (together, &#147;Majesco&#148; or the &#147;Company&#148;) on a consolidated basis. Prior to the November 2014 sale of its equity investment, the Company had 50% of the voting control of GMS Entertainment Limited (&#147;GMS&#148;) and the right to appoint one-half of the directors of GMS. Accordingly, the Company accounted for GMS on the equity method as a corporate joint venture.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company is a provider of video game products primarily for the casual-game consumer and has published video games for interactive entertainment hardware platforms, including Nintendo&#146;s DS, 3DS, Wii and WiiU, Sony&#146;s PlayStation 3 and 4, or PS3 and PS4, Microsoft&#146;s Xbox 360 and Xbox One and the personal computer, or PC. It has historically sold its products through two sales channels, retail and digital. It has sold packaged software to large retail chains, specialty retail stores, video game rental outlets and distributors and through digital distribution for platforms such as Xbox Live Arcade, PlayStation Network, or PSN, and Steam, and for mobile devices and online platforms. In 2015, the Company transferred retail distribution activities, assets and obligations to a company owned by its former chief executive officer (see Note 13).</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company&#146;s video game titles are targeted at various demographics at a range of price points. Due to the larger budget requirements for developing and marketing premium console titles for core gamers, the Company has focused on publishing more lower-cost games targeting casual-game consumers and independent game developer fans. In some instances, the Company&#146;s titles are based on licenses of well-known properties and, in other cases, original properties. The Company enters into agreements with content providers and video game development studios for the creation of our video games.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company&#146;s operations involve similar products and customers worldwide. These products are developed and sold domestically and internationally. The Company is centrally managed and our chief operating decision makers, the chief executive and other officers, use consolidated and other financial information supplemented by sales information by product category, major product title and platform for making operational decisions and assessing financial performance. Accordingly, it operates in a single segment.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>NASDAQ listing.</i> On March 3, 2016, the Company was notified by The NASDAQ Stock Market, LLC (&#147;Nasdaq&#148;) that it was not in compliance with Nasdaq Listing Rule 5550(a)(2) (the &#147;Rule&#148;) because the Company&#146;s common stock failed to maintain a minimum closing bid price of $1.00 per share for the prior 30 consecutive business days. The notice has no immediate effect on the listing or trading of the Company&#146;s common stock on The NASDAQ Capital Market and, at this time, the common stock will continue to trade on The NASDAQ Capital Market under the symbol &#147;COOL&#148;.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company has a period of 180 calendar days, or until August&#160;30, 2016, to achieve compliance with the Rule. The Company will regain compliance with the Rule if, at any time before August&#160;30, 2016, the closing bid price for the Company&#146;s common stock is at least $1.00 per share for a minimum of 10 consecutive business days. In the event the Company does not regain compliance with the Rule by August&#160;30, 2016, the Company may be eligible for an additional 180 calendar day compliance period. To qualify, the Company would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The NASDAQ Capital Market, with the exception of the bid price requirement, and would need to provide written notice of its intention to cure the bid price deficiency during the second compliance period by effecting a reverse stock split, if necessary.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Major customers.</i> Microsoft, Sony, and Valve accounted for 40%, 28%, and 18%, respectively, of sales for the six months ended April 30, 2016. Sidekick and Microsoft accounted for 53% and 30%, respectively, of accounts receivable as of April 30, 2016.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 14.3pt"><i>&#160;Concentrations.</i>&#160;&#160;The Company develops and distributes video game software for proprietary platforms under licenses from Nintendo, Sony and Microsoft, which must be periodically renewed. The Company&#146;s agreements with these manufacturers also grant them certain control over the Company&#146;s products. In addition, for the six months ended April 30, 2016 and 2015 sales of the Company&#146;s Zumba Fitness games accounted for approximately 10% and 30% of net revenues, respectively.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">The accompanying interim condensed consolidated financial statements of the Company are unaudited, but in the opinion of management, reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results for the interim period. Accordingly, they do not include all information and notes required by generally accepted accounting principles for complete financial statements. The Company&#146;s financial results are impacted by the seasonality of the retail selling season and the timing of the release of new titles. The results of operations for interim periods are not necessarily indicative of results to be expected for the entire fiscal year. The balance sheet at October 31, 2015 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the Company&#146;s consolidated financial statements and notes thereto for the year ended October 31, 2015 filed with the Securities and Exchange Commission on Form 10-K on January 29, 2016.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Principles of Consolidation.&#160;&#160;</i>The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary located in the United Kingdom. Significant intercompany accounts and transactions have been eliminated in consolidation.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Revenue Recognition.</i> The Company has recognized revenue upon the shipment of its products when: (1) title and the risks and rewards of ownership are transferred; (2) persuasive evidence of an arrangement exists; (3) there are no continuing obligations to the customer; and (4) the collection of related accounts receivable is probable. Certain products have been sold to customers with a street date (the earliest date these products may be resold by retailers). Revenue for sales of these products is not recognized prior to their street date. Some of the Company&#146;s software products provide limited online features at no additional cost to the consumer. Generally, such features have been considered to be incidental to the Company&#146;s overall product offerings and an inconsequential deliverable. Accordingly, the Company does not defer any revenue related to products containing these limited online features. However, in instances where online features or additional functionality is considered a substantive deliverable in addition to the software product, such characteristics will be taken into account when applying the Company&#146;s revenue recognition policy. While the Company has historically sold its products through two sales channels, retail and digital, in July 2015, the Company transferred retail distribution activities, assets and obligations to a company owned by its former chief executive officer (see Note 13), and therefore ceased retail sales.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company generally sold its products to retailers and distributors on a no-return basis, although in certain instances, the Company provided price protection or other allowances on certain unsold products. Price protection, when granted and applicable, allows customers a partial credit against amounts they owe the Company with respect to merchandise unsold by them. Revenue was recognized, and accounts receivable was presented, net of estimates of these allowances.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company estimated potential future product price protection and other allowances related to current period product revenue. The Company analyzed historical experience, current sell through of retailer inventory of the Company&#146;s products, current trends in the video game market, the overall economy, changes in customer demand and acceptance of the Company&#146;s products and other related factors when evaluating the adequacy of price protection and other allowances.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">Sales incentives or other consideration given by the Company to customers that were considered adjustments of the selling price of its products, such as rebates and product placement fees, were reflected as reductions of revenue. Sales incentives and other consideration that represent costs incurred by the Company for benefits received, such as the appearance of the Company&#146;s products in a customer&#146;s national circular ad, are reflected as selling and marketing expenses, in accordance with Accounting Standards Codification (&#147;ASC&#148;) 605-50,<i> Customer Payments and Incentives</i>.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company&#146;s software products are sold as downloads of digital content for which the consumer takes possession of the digital content for a fee. Revenue from product downloads is generally recognized when the download is made available (assuming all other recognition criteria are met).</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company records revenue for distribution agreements where it is acting as an agent as defined by ASC Topic 605,<i> Revenue Recognition, Subtopic 45, Principal Agent Considerations</i>, on a net basis. When the Company enters into license or distribution agreements that provide for multiple copies of games in exchange for guaranteed amounts, revenue is recognized in accordance with the terms of the agreements, generally upon delivery of a master copy, assuming our performance obligations are complete and all other recognition criteria are met, or as per-copy royalties are earned on sales of games.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Cash and cash equivalents.</i>&#160;&#160;Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase. At various times, the Company has deposits in excess of the Federal Deposit Insurance Corporation limit. The Company has not experienced any losses on these accounts.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 14.3pt"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt"><i>Accounts Receivable and Accounts Payable and Accrued Expenses. </i>The carrying amounts of accounts receivable and accounts payable and accrued expenses approximate fair value as these accounts are largely current and short term in nature.<i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Allowance for doubtful accounts</i>. The Company recognizes an allowance for losses on accounts receivable for estimated probable losses. The allowance is based on historical experiences, current aging of accounts, and other expected future write-offs, including specific identifiable customer accounts considered at risk or uncollectible. Any related expense associated with an allowance for doubtful accounts is recognized as general and administrative expense. As of April 30, 2016, there was no allowance for doubtful accounts.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt"><i>Capitalized Software Development Costs and License Fees.</i> Software development costs include fees in the form of milestone payments made to independent software developers and licensors. Software development costs are capitalized once technological feasibility of a product is established and management expects such costs to be recoverable against future revenues. For products where proven game engine technology exists, this may occur early in the development cycle. Technological feasibility is evaluated on a product-by-product basis. Amounts related to software development that are not capitalized are charged immediately to product research and development costs. Commencing upon a related product&#146;s release, capitalized costs are amortized to cost of sales based upon the higher of (i) the ratio of current revenue to total projected revenue or (ii) straight-line charges over the expected marketable life of the product.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">Prepaid license fees represent license fees to owners for the use of their intellectual property rights in the development of the Company&#146;s products. Minimum guaranteed royalty payments for intellectual property licenses are initially recorded as an asset (prepaid license fees) and a current liability (accrued royalties payable) at the contractual amount upon execution of the contract or when specified milestones or events occur and when no significant performance remains with the licensor. Licenses are expensed to cost of sales at the higher of (i)&#160;the contractual royalty rate based on actual sales or (ii)&#160;an effective rate based upon total projected revenue related to such license. Capitalized software development costs and prepaid license fees are classified as non-current if they relate to titles for which the Company estimates the release date to be more than one year from the balance sheet date.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The amortization period for capitalized software development costs and prepaid license fees is usually no longer than one year from the initial release of the product. If actual revenues or revised forecasted revenues fall below the initial forecasted revenue for a particular license, the charge to cost of sales may be larger than anticipated in any given quarter. The recoverability of capitalized software development costs and prepaid license fees is evaluated quarterly based on the expected performance of the specific products to which the costs relate. When, in management&#146;s estimate, future cash flows will not be sufficient to recover previously capitalized costs, the Company expenses these capitalized costs to &#147;cost of sales-software development costs and license fees,&#148; in the period such a determination is made. These expenses may be incurred prior to a game&#146;s release for games that have been developed. If a game is cancelled prior to completion of development and never released to market, the amount is expensed to operating costs and expenses. If the Company was required to write off licenses, due to changes in market conditions or product acceptance, its results of operations could be materially adversely affected.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">Costs of developing online free-to-play social games, including payments to third-party developers, are expensed as research and development expenses. Revenue from these games is largely dependent on players&#146; future purchasing behavior in the game and currently the Company cannot reliably project that future net cash flows from developed games will exceed related development costs.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">Prepaid license fees and milestone payments made to the Company&#146;s third party developers are typically considered non-refundable advances against the total compensation they can earn based upon the sales performance of the products. Any additional royalty or other compensation earned beyond the milestone payments is expensed to cost of sales as incurred.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt"><i>Property and equipment.</i>&#160;&#160;Property and equipment is stated at cost. Depreciation and amortization is being provided for by the straight-line method over the estimated useful lives of the assets, generally five years. Amortization of leasehold improvements is provided for over the shorter of the term of the lease or the life of the asset.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Income taxes.</i>&#160;&#160;The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the potential for realization of deferred tax assets at each quarterly balance sheet date and records a valuation allowance for assets for which realization is not more likely than not.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt"><i>Stock Based Compensation.</i> The Company measures all stock-based compensation to employees using a fair value method and records such expense in general and administrative expenses. Compensation expense for stock options is recognized on a straight line basis over the vesting period of the award, based on the fair value of the option on the date of grant.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">The fair value for options issued is estimated at the date of grant using a Black-Scholes option-pricing model. The risk free rate is derived from the U.S.&#160;Treasury yield curve in effect at the time of the grant. The volatility factor is determined based on the Company&#146;s historical stock prices.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 14.3pt"><i>&#160;Extinguishment of Liabilities.</i> During the six months ended April 30, 2015, the Company recognized a gain on extinguishment of liabilities of $1.1 million. The Company determined that certain accounts payable balances and claims for license fees and services would never be paid because they were no longer being pursued for payment and had passed the statute of limitations as of April 30, 2015.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.15in"><i>Gain on asset sales, net.</i> During the six months ended April 30, 2015, we recognized approximately $128,000 in net gain from the sale of certain game rights and from the sale of office furniture and equipment upon the move to a smaller office.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.15in"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Loss Per Share.</i> Basic loss per share of common stock is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted loss per share excludes the potential impact of common stock options, unvested shares of restricted stock and outstanding common stock purchase warrants because their effect would be anti-dilutive.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Commitments and Contingencies.</i>&#160;&#160;We are subject to claims and litigation in the ordinary course of our business. We record a liability for commitments and contingencies when the amount is both probable and reasonably estimable. We record associated legal fees as incurred. We accrued contingent liabilities for certain potential licensor and customer liabilities and claims that were transferred to Zift but may not be extinguished by such transaction. </p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt"><i>Accounting for Warrants</i>. The Company accounts for the issuance of common stock purchase warrants issued in connection with the equity offerings in accordance with the provisions of ASC 815, Derivatives and Hedging (&#147;ASC 815&#148;).&#160;&#160;The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement).&#160;&#160;The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net-cash settle the contract if an event occurs and if that event is outside the control of the Company) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). In addition, Under ASC 815, registered common stock warrants that require the issuance of registered shares upon exercise and do not expressly preclude an implied right to cash settlement are accounted for as derivative liabilities.&#160; The Company classifies these derivative warrant liabilities on the condensed consolidated balance sheet as a current liability.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt"><i>Change in fair value of warrant liability. </i> The Company assessed the classification of common stock purchase warrants as of the date of each offering and determined that such instruments met the criteria for liability classification. Accordingly, the Company classified the warrants as a liability at their fair value and adjusts the instruments to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until the warrants are exercised or expired, and any change in fair value is recognized as &#147;change in fair value of warrant liability&#148; in the condensed consolidated statements of operations. The fair value of the warrants has been estimated using a Black-Scholes valuation model (see Note 7).</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt"><i>Estimates.</i> The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities or the disclosure of gain or loss contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Among the more significant estimates included in these financial statements are the recoverability of advance payments for capitalized software development costs and intellectual property licenses, the valuation of warrant liability, and the valuation allowances for deferred tax benefits. Actual results could differ from those estimates.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b><i>Recent Accounting Pronouncements.</i></b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">In May 2014, the Financial Accounting Standards Board (&#34;FASB&#34;) issued an Accounting Standards Update (&#34;ASU&#34;) creating a new Topic 606, <i>Revenue from Contracts with Customers</i>, which broadly establishes new standards for the recognition of certain revenue and updates related disclosure requirements. The update becomes effective for the Company on November 1, 2018. The Company is reviewing the potential impact of the statement on its financial position, results of operations, and cash flows.&#160;</p> <p style="font: 8pt/11.25pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.7pt">&#160;</p> <p style="font: 8pt/11.25pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.7pt">In February 2016, FASB issued ASU No. 2016-02, <i>Leases (Topic 842) </i>which supersedes FASB ASC Topic 840, <i>Leases (Topic 840) </i>and provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The standard is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted upon issuance. When adopted, the Company does not expect this guidance to have a material impact on our financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">In March 2016, the FASB issued ASU No. 2016-08, Revenue <i>from Contracts with Customers (Topic 606): Principal versus Agent Considerations</i>. The purpose of ASU No. 2016-08 is to clarify the implementation of guidance on principal versus agent considerations. For public entities, the amendments in ASU No. 2016-08 are effective for interim and annual reporting periods beginning after December 15, 2017. The Company is currently assessing the impact of ASU No. 2016-08 on its condensed consolidated financial statements and related disclosures.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">In March 2016, the FASB issued ASU No. 2016-09, <i>Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting</i>. Under ASU No. 2016-09, companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (&#147;APIC&#148;). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement and the APIC pools will be eliminated. In addition, ASU No. 2016-09 eliminates the requirement that excess tax benefits be realized before companies can recognize them. ASU No. 2016-09 also requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Furthermore, ASU No. 2016-09 will increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer&#146;s statutory income tax withholding obligation. An employer with a statutory income tax withholding obligation will now be allowed to withhold shares with a fair value up to the amount of taxes owed using the maximum statutory tax rate in the employee&#146;s applicable jurisdiction(s). ASU No. 2016-09 requires a company to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on the statement of cash flows. Under current U.S. GAAP, it was not specified how these cash flows should be classified. In addition, companies will now have to elect whether to account for forfeitures on share-based payments by (1) recognizing forfeitures of awards as they occur or (2) estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as is currently required. The amendments of this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted but all of the guidance must be adopted in the same period. The Company is currently assessing the impact that ASU No. 2016-09 will have on its condensed consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">In April 2016, the FASB issued ASU No. 2016-10,&#160;<i>Revenue from Contracts with Customer</i>.&#160;The new guidance is an update to ASC 606 and provides clarity on: identifying performance obligations and licensing implementation. For public companies, ASU No. 2016-10 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the impact that ASU No. 2016-10 will have on its condensed consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">Prepaid expenses and other current assets consist of the following (in thousands):</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 16.5pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>April 30,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>October 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="width: 68%"><font style="font-size: 8pt">Prepaid insurance</font></td> <td style="width: 1%">&#160;</td> <td style="width: 3%"><font style="font-size: 8pt">$</font></td> <td style="width: 11%; text-align: right"><font style="font-size: 8pt">133</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 3%"><font style="font-size: 8pt">$&#160;</font></td> <td style="width: 11%; text-align: right"><font style="font-size: 8pt">61</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Tax receivable</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">6</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">30</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="background-color: #CCFFFF"><font style="font-size: 8pt">Other</font></td> <td style="background-color: #CCFFFF">&#160;</td> <td style="border-bottom: Black 1pt solid; background-color: #CCFFFF">&#160;</td> <td style="border-bottom: Black 1pt solid; background-color: #CCFFFF; text-align: right"><font style="font-size: 8pt">39</font></td> <td style="background-color: #CCFFFF">&#160;</td> <td style="background-color: #CCFFFF">&#160;</td> <td style="border-bottom: Black 1pt solid; background-color: #CCFFFF">&#160;</td> <td style="border-bottom: Black 1pt solid; background-color: #CCFFFF; text-align: right"><font style="font-size: 8pt">10</font></td> <td style="background-color: white">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Total prepaid expenses and other current assets</font></td> <td>&#160;</td> <td style="border-bottom: Black 1.5pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">178</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: Black 1.5pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">101</font></td> <td style="background-color: #CCFFFF">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 16.5pt">&#160;<b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">Property and equipment, net, consist of the following (in thousands):</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 7.7pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center">&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>April 30,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>October 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="width: 67%; padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Computers and software</font></td> <td style="width: 1%">&#160;</td> <td style="width: 3%"><font style="font-size: 8pt">$</font></td> <td style="width: 11%; text-align: right"><font style="font-size: 8pt">61</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 4%"><font style="font-size: 8pt">$</font></td> <td style="width: 11%; text-align: right"><font style="font-size: 8pt">61</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Furniture and equipment</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">78</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">78</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-left: 45.1pt; text-indent: -5.5pt"><font style="font-size: 8pt">Total property and equipment, gross</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">139</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">139</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Accumulated depreciation</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(108</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(94</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-left: 27.5pt; text-align: justify"><font style="font-size: 8pt">Total property and equipment, net</font></td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">31</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">45</font></td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 14.3pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">Accounts payable and accrued expenses consist of the following (in thousands):</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: Black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>April 30,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: Black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>October 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="width: 67%; padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Accounts payable-trade</font></td> <td style="width: 1%">&#160;</td> <td style="width: 3%"><font style="font-size: 8pt">$</font></td> <td style="width: 11%; border-top: Black 1pt solid; text-align: right"><font style="font-size: 8pt">345</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 4%"><font style="font-size: 8pt">$</font></td> <td style="width: 11%; border-top: Black 1pt solid; text-align: right"><font style="font-size: 8pt">479</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Royalties, fees and development</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">678</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">681</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Salaries and other compensation</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">461</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">510</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Other accruals</font></td> <td>&#160;</td> <td style="border-bottom: Black 1pt solid">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">12</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: Black 1pt solid">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">16</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-left: 27.5pt; text-align: justify"><font style="font-size: 8pt">Total accounts payable and accrued expenses</font></td> <td>&#160;</td> <td style="border-bottom: Black 1.5pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">1,496</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: Black 1.5pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">1,686</font></td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">&#160;&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.15in">During the three and six months ended April 30, 2015, the Company recognized a gain on extinguishment of liabilities of $524,000 and $1.1 million, respectively. The Company determined that certain accounts payable balances and claims for license fees and services would never be paid because they were no longer being pursued for payment and had passed the statute of limitations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">Salaries and other compensation include accrued payroll expense, accrued incentive compensation and employer 401K plan contributions.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">Convertible preferred stock as of April 30, 2016 consisted of the following (in thousands, except share amounts):</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 46.2pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">Shares Authorized</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">Shares Issued and Outstanding</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">Net Carrying Value</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">Aggregate Liquidation Preference</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">Common Shares Issuable Upon Conversion</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="width: 28%"><font style="font-size: 8pt">Series A</font></td> <td style="width: 1%">&#160;</td> <td style="width: 4%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">8,830,000</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 5%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">8,177,334</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 3%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">1,999</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 4%"><font style="font-size: 8pt">$</font></td> <td style="width: 7%; text-align: right"><font style="font-size: 8pt">5,561</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 4%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">8,177,334</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Series B</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">54,250</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">54,201</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">4,569</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">5,420,171</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td><font style="font-size: 8pt">Series C</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">26,000</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">25,763</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,010</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,576,353</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Series D</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">170,000</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">156,332</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,829</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,563,320</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td><font style="font-size: 8pt">Other authorized, unissued</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">919,750</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Total</font></td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">10,000,000</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">8,413,630</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">10,407</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">5,561</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">17,737,178</font></td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>December Units and Series A Preferred Shares</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">On December 17, 2014, pursuant to subscription agreements (the &#147;December Subscription Agreements&#148;) entered into with certain accredited investors (the &#147;December Investors&#148;) the Company completed a private placement of $6.0 million of units (the &#147;December Units&#148;) at a purchase price of $0.68 per Unit, with each December Unit consisting of one share of the Company&#146;s 0% Series A Convertible Preferred Stock (each a &#147;Series A Preferred Share&#148;) and a five-year warrant (each a &#147;December Warrant&#148;) to purchase one share of the Company&#146;s common stock at an initial exercise price of $0.68 per share (such issuance and sale, the &#147;December Private Placement&#148;). The December Warrants were subsequently exchanged for shares of the Company&#146;s 0% Series B Convertible Preferred Stock (the &#147;Series B Preferred Shares&#148;) and shares of the Company&#146;s common stock (see below). The offering was made in reliance upon an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the &#147;Securities Act&#148;).</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">The Series A Preferred Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Series A Preferred Share, plus all accrued and unpaid dividends, if any, on such Series A Preferred Share, as of such date of determination, divided by the conversion price. The stated value of each Preferred Share is $0.68 and the initial conversion price is $0.68 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events. In addition, in the event the Company issues or sells, or is deemed to issue or sell, shares of its common stock at a per share price that is less than the conversion price then in effect, the conversion price shall be reduced to such lower price, subject to certain exceptions. Pursuant to the Certificate of Designations, Preferences and Rights of the 0% Series A Convertible Preferred Stock of Majesco Entertainment Company, the Company is prohibited from incurring debt or liens, or entering into new financing transactions without the consent of the lead investor (as defined in the December Subscription Agreements) as long as any of the Series A Preferred Shares are outstanding. The Series A Preferred Shares bear on dividends.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">The holders of Series A Preferred Shares shall vote together with the holders of common stock on all matters on an as if converted basis, subject to certain conversion and ownership limitations, and shall not vote as a separate class. Notwithstanding the foregoing, the conversion price for purposes of calculating voting power shall in no event be lower than $0.59 per share. At no time may all or a portion of the Series A Preferred Shares be converted if the number of shares of common stock to be issued pursuant to such conversion would exceed, when aggregated with all other shares of common stock owned by the holder at such time, the number of shares of common stock which would result in such Holder beneficially owning (as determined in accordance with Section 13(d) of the 1934 Act and the rules thereunder) more than 4.99% of all of the common stock outstanding at such time; provided, however, that the holder may waive the 4.99% limitation at which time he may not own beneficially own more than 9.99% of all the common stock outstanding at such time.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">Prior to the exchange transaction described below, the December Warrants were exercisable at any time at a price of $0.68 per share, subject to adjustment, and expired five years from the date of issuance. The holders could exercise the December Warrants for shares of common stock on a cashless basis if there was no effective registration statement or no current prospectus available for resale of the underlying shares of common stock. The December Warrants were subject to certain adjustments upon certain actions by the Company as outlined in the December Warrants, including, for twenty-four months following the initial issuance date, the issuance or sale, or deemed issuance or sale, by the Company of shares of its common stock at a per share price that is less than the exercise price then in effect.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">The proceeds of the offering and certificates representing the Series A Preferred Shares and December Warrants underlying the December Units issued in the offering were deposited into escrow accounts. Upon the closing of the December Private Placement on December 17, 2014 (such date, the &#147;December Closing Date&#148;), $1.0 million of the December Escrow Amount was released to the Company and $1.0 million of December Units to the December Investors, on a pro rata basis. Effective upon the approval of the Company&#146;s stockholders on March 30, 2015, in one or multiple tranches, the remaining $5.0 million became eligible to be released to the Company and $5.0 million of December Units became eligible to be released to the December Investors from their respective escrow accounts, if either, (i) the lead investor has approved the release, (ii) the approval of the requisite number of December Investors has been obtained, (iii) the Company has executed definitive binding documents for certain transactions, as described in the December Subscription Agreements, and such transaction(s) are to close contemporaneously with the release, following approval by the Company&#146;s stockholders or (iv) the following conditions are present: (a) nine months has elapsed from the December Closing Date and release is approved by each of the directors appointed at closing (being the non-continuing directors); (b) no subsequent release of the December Escrow Amount has been consummated; and (c) no more than $1.0 million is released (the &#147;December Release Conditions&#148;). In the event that on and as of the twelve month anniversary of the December Closing Date none of the December Release Conditions have been satisfied, $5.0 million would be returned on a pro rata basis to the December Investors, without interest or deduction, and $5,000 of December Units would be returned to the Company for cancellation. On September 25, 2015, the lead investor approved the release and the escrow agent released all funds and corresponding December Units remaining in escrow.&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.15in">The Company received net proceeds of $801,000 for the December Units released from escrow, net of offering costs, and has accounted for each of the Series A Preferred Shares released from escrow, the December Warrants released from escrow and the Series A Preferred Shares and December Warrants remaining in escrow as freestanding instruments.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">The Company has evaluated the guidance ASC 480-10&#160;<i>Distinguishing Liabilities from Equity and&#160;</i>ASC 815-40&#160;<i>Contracts in an Entity&#146;s Own Equity</i> to determine the appropriate classification of the instruments. Prior to the exchange described below, the exercise price of the released December Warrants could be adjusted downward if the Company issued securities at a price below the initial exercise price and in certain other circumstances outside the control of the Company and therefore contain contingent settlement terms not indexed solely to the Company&#146;s own shares of common stock. Accordingly, $603,000 of proceeds were recorded as a derivative liability representing the fair value of the December Warrants released from escrow at issuance and $120,000 of offering costs allocated to the December Warrants were expensed. As a result of the allocations, described above, the Series A Preferred Shares released were deemed to have a beneficial conversion feature at issuance amounting to $397,000, which was recorded in stockholders&#146; equity and immediately charged as a dividend in determining net loss attributable to common stockholders.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">The remaining net proceeds of $318,000 were allocated to the Series A Preferred Shares net of $79,000 of offering costs. The Series A Preferred Shares do not represent an unconditional obligation to be settled in a variable number of shares of common stock, are not redeemable and do not contain fixed or indexed conversion provisions similar to debt instruments. Accordingly, the Series A Preferred Shares are considered equity hosts and recorded in stockholders&#146; equity.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">Upon stockholder approval in March 2015 of full conversion provisions of the escrowed December Warrants, the Company recorded a warrant liability and a discount on the Series A Preferred Shares amounting to $3,162, based on the estimated fair value of the warrants. In addition, upon shareholder approval of the full conversion provisions of the escrowed Series A Preferred Shares, the carrying value of such Series A Preferred Shares, net of proceeds remaining in escrow was reclassified from temporary equity to paid-in capital. The Company recorded a beneficial conversion feature and a discount on the Series A Preferred Shares amounting to $1.8 million, which was immediately recognized as a deemed dividend in determining net loss attributable to common shareholders. As of April 30, 2015, the Series A Preferred Shares remaining in escrow were convertible into 7,352,939 shares of common stock based on the conversion rate at the time. The Company may record additional deemed dividends for any unamortized discounts on its Series A Preferred Shares if such shares are converted.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">In connection with the December Private Placement, the Company also entered into separate Registration Rights Agreements with each December Investor, (as amended on January 30, 2015 and March 31, 2015, the &#147;December Registration Rights Agreement&#148;). The Company agreed to use its best efforts to file by March 31, 2015 a registration statement covering the resale of the shares of common stock issuable upon exercise or conversion of the Series A Preferred Shares and December Warrants and to maintain its effectiveness until all such securities have been sold or may be sold without restriction under Rule 144 of the Securities Act. In the event the Company fails to satisfy its obligations under the December Registration Rights Agreements, the Company is required to pay to the December Investors on a monthly basis an amount equal to 1% of the investors&#146; investment, up to a maximum of 12%. On March 31, 2015, the Company and the required holders of December Units amended the registration rights agreement to extend the filing deadline for the registration statement to June 30, 2015.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>April 2015 Exchange and Series B Preferred Shares</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">On April 30, 2015, pursuant to warrant exchange agreements, the Company retired the 8,823,537 December Warrants issued in the December Private Placement, including those subject to the escrow conditions and those released from escrow, in exchange for shares of the Company's common stock, or shares of 0% Series B Convertible Preferred Stock (the &#147;Series B Preferred Shares&#148;), in lieu of shares of common stock equal, on an as-converted basis, to the number of shares of common stock that would have otherwise been received by the holder, if such issuance would result in the recipient holder exceeding certain thresholds. An aggregate of 6,302,525 shares of common stock, which amount includes the shares of common stock issuable upon conversion of the Series B Preferred Shares, were issuable in connection with the exchange agreements. The Company re-measured the fair value of the December Warrants through the date of their exchange and recorded related losses in its statement of operations. Upon exchange, the contingent-conversion features of the December Warrants expired and the carrying value of the warrant liability of $5.3 million was reclassified to paid-in capital and allocated to the Series B Preferred Shares and the common shares distributed. Such Series B Shares and shares of common stock exchanged for the December Warrants are not held in escrow and as such are not subject to the December Release Conditions.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.15in">The Series B Preferred Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Series B Preferred Shares, based on a conversion price of $1.40 per shares, plus all accrued and unpaid dividends, if any, on such Series B Preferred Shares, as of such date of determination, divided by the conversion price. The stated value of each Preferred Share is $140.00 and the initial conversion price is $1.40 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events. The Company is prohibited from effecting a conversion of the Series B Preferred Shares to the extent that, as a result of such conversion, such holder would beneficially own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock upon conversion of the Series B Preferred Shares, which beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%.&#160;&#160;Subject to such beneficial ownership limitations, each holder is entitled to vote on all matters submitted to stockholders of the Company on an as converted basis, based on a conversion price of $1.40 per shares.&#160;&#160;The Series B Preferred Shares rank junior to the Series A Preferred Shares and bear no dividends. All of the convertible preferred shares do not represent an unconditional obligation to be settled in a variable number of shares, are not redeemable and do not contain fixed or indexed conversion provisions similar to debt instruments. Accordingly, the convertible preferred shares are considered equity hosts and recorded in stockholders&#146; equity.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>May 2015 Units and Series C Preferred Shares</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">On May 15, 2015 (the &#147;May Closing Date&#148;), the Company completed a private placement pursuant to separate subscription agreements (the &#147;May Subscription Agreements&#148;) with accredited investors (the &#147;May Investors&#148;) of $5,050 of units (the &#147;May Units&#148;), at a purchase price of $1.20 per Unit, resulting in net proceeds to the Company of $5.0 million.&#160;&#160;Each May Unit consists of one share of the Company&#146;s common stock, provided that, if the issuance of any such shares of common stock would have resulted in the recipient May Investor owning in excess of 4.99% of the Company&#146;s issued and outstanding common stock, then such May Investor could elect to receive shares of the Company&#146;s 0% Series C Convertible Preferred Stock (the &#147;Series C Preferred Shares&#148;) in lieu of common stock that are, on an as converted basis, equal to one share of common stock for every May Unit purchased, and a three-year warrant (the &#147;May Warrants&#148;) to purchase one share of the Company&#146;s common stock at an exercise price of $1.40 per share (such sale and issuance, the &#147;May Private Placement&#148;).&#160;&#160;An aggregate of 25,763 Series C Preferred Shares, 1,631,984 shares of common stock and 4,208,337 May Warrants were issued under the May Units. The offering was made in reliance upon an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the &#147;Securities Act&#148;).</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Series C Preferred Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Series C Preferred Shares, plus all accrued and unpaid dividends, if any, on such Series C Preferred Shares, as of such date of determination, divided by the conversion price.&#160;&#160;The stated value of each Series C Preferred Share is $120.00 per share, and the initial conversion price is $1.20 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events.&#160;&#160;In addition, in the event the Company issues or sells, or is deemed to issue or sell, shares of common stock at a per share price that is less than the conversion price then in effect, the conversion price shall be reduced to such lower price, subject to certain exceptions and provided that the conversion price may not be reduced to less than $0.86, unless and until such time as the Company obtains shareholder approval to allow for a lower conversion price.&#160;&#160;The Company is prohibited from effecting a conversion of the Series C Preferred Shares to the extent that, as a result of such conversion, such May Investor would beneficially own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock upon conversion of the Series C Preferred Shares, which beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%.&#160;&#160;Subject to the beneficial ownership limitations discussed previously, each holder is entitled to vote on all matters submitted to stockholders of the Company, and shall have the number of votes equal to the number of shares of common stock issuable upon conversion of such holder&#146;s Series C Preferred Shares, based on a conversion price of $1.30 per share.&#160;&#160;The Series C Preferred Shares bear no dividends and shall rank junior to the Company&#146;s Series A Preferred Shares but senior to the Company&#146;s Series B Preferred Shares.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The May Warrants are exercisable, at any time, following the date the May Warrants are issued, at a price of $1.40 per share, subject to adjustment, and expire three years from the date of issuance. The holders may, subject to certain limitations, exercise the May Warrants on a cashless basis. The Company is prohibited from effecting an exercise of any May Warrant to the extent that, as a result of any such exercise, the holder would beneficially own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock upon exercise of such May Warrant, which beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%.&#160;&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">In connection with the sale of the May Units, the Company also entered into separate registration rights agreements (the &#147;May Registration Rights Agreement&#148;) with each May Investor. The Company agreed to use its best efforts to file a registration statement to register the Shares and the common stock issuable upon the conversion of the Series C Preferred Shares, within thirty days following the May Closing Date, to cause such registration statement to be declared effective within ninety days of the filing day and to maintain the effectiveness of the registration statement until all of such shares of common stock have been sold or are otherwise able to be sold pursuant to Rule 144 without restriction.&#160;&#160;In the event the Company fails to satisfy its obligations under the Registration Rights Agreement, the Company is obligated to pay to the May Investors on a monthly basis, an amount equal to 1% of the May Investor&#146;s investment, up to a maximum of 12%. Effective as of the original filing deadline of the registration statement, the Company obtained the requisite approval from the May Investors for the waiver of its obligations under the May Registration Rights Agreement.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The proceeds of the May Private Placement were deposited into an escrow account (the &#147;May Escrow Amount&#148;) with Signature Bank, as escrow agent (the &#147;May Escrow Agent&#148;) pursuant to an escrow agreement (the &#147;May Escrow Agreement&#148;), entered into by and between the Company, the lead investor (as defined in the May Subscription Agreements) and the May Escrow Agent, and certificates representing the May Warrants and a record of the Shares and Series C Preferred Shares, sold in the May Private Placement were deposited and recorded with the Company&#146;s corporate secretary (the &#147;May Securities Escrow Agent&#148;) to be held in escrow. On the May Closing Date, twenty percent (20%) of the May Escrow Amount ($1.0 million) was released by the May Escrow Agent to the Company in exchange for the release of twenty percent (20%) of May Units by the May Securities Escrow Agent to the May Investors.&#160;&#160;The remaining eighty percent (80%) of the May Escrow Amount ($4.0 million) was released by the May Escrow Agent to the Company and the corresponding percentage of May Units were released to the May Investors, under amendments to the May subscription agreements. On September 25, 2015, the lead investor approved the release and the May Escrow Agent and the May Securities Escrow Agent released all funds and May Units remaining in escrow.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company evaluated the guidance ASC 480-10&#160;<i>Distinguishing Liabilities from Equity and&#160;</i>ASC 815-40&#160;<i>Contracts in an Entity&#146;s Own Equity</i> to determine the appropriate classification of the instruments. The Series C Preferred Shares do not represent an unconditional obligation to be settled in a variable number of shares of common stock, are not redeemable and do not contain fixed or indexed conversion provisions similar to debt instruments. Accordingly, the Series C Preferred Shares are considered equity hosts and recorded in stockholders&#146; equity. The May Warrants do not contain contingent settlement terms not indexed solely to the Company&#146;s own shares of common stock and, accordingly, were also recorded in stockholders' equity. The Company allocated $2.0 million, $1.3 million and $1.8 million of net proceeds to the Series C Preferred Stock, the common stock and the warrants, respectively, based on their relative fair values. The Company incurred $25,000 of offering expenses.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>September 2015 Exchange and Series D Preferred Shares</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">On September 25, 2015, the Company entered into Amendment Agreements (the &#147;Amendments&#148;) which amended the terms of the December Subscription Agreements and May Subscription Agreements. Under the Amendments, the lead investors under the subscription agreements agreed to release all funds remaining held in escrow ($5.0 million under the December 17, 2014 closing and $4.0 million under the May 15, 2015 closing) upon the appointment of certain persons as officers and directors of the Company.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">In connection with the Amendments, the Company also entered into Exchange Agreements with the holders of the May Warrants (the &#147;September Exchange Agreements&#148;) and authorized the issuance of .4 shares of common stock for each share of our Common Stock into which the May Warrants was then convertible, in exchange for cancellation of the May Warrants.&#160;&#160;The Company agreed that holders of the May Warrants could exchange their May Warrants and receive either: (1) .4 shares of common stock for each share of common stock into which the May Warrant was exercisable immediately, or (2) at the election of any holder who would, as a result of receipt of the common stock hold in excess of 4.99% of the Company&#146;s issued and outstanding common stock, shares of 0% Series D Convertible Preferred Stock (the &#147;Preferred D Shares&#148;) exercisable for common stock on the same basis, but subject to 4.9% beneficial ownership blocker provisions which at the election of the holder, could be reduced to 2.49%. Under the agreement, the Company exchanged all of its May Warrants for an aggregate of 168,333 new shares of 0% Series D Convertible Preferred Stock, which upon full conversion on a fully-diluted basis, convert into 1,683,333 shares of newly issued common stock.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Preferred D Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Preferred D Share, plus all accrued and unpaid dividends, if any, on such Preferred D Share, as of such date of determination, divided by the conversion price. The stated value Preferred D Shares is $1,000.00 per share and the initial conversion price is $100.00 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events. The Company is prohibited from effecting a conversion of the Preferred D Shares to the extent that, as a result of such conversion, such investor would beneficially own more than 4.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of the Preferred D Shares. Upon 61 days written notice, the beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%. Except as otherwise required by law, holders of Series D Preferred Shares shall not have any voting rights. Pursuant to the Certificate of Designations, Preferences and Rights of the 0% Series D Convertible Preferred Stock, the Preferred D Shares bear no interest and shall rank senior to the Company&#146;s other classes of capital stock. The Company accounted for the exchange as a redemption of the warrants and recorded the estimated fair value of Series D Convertible Preferred Stock issued, amounting to $1,969 with a charge to paid-in capital. As the value of the preferred shares issued was less than the value of the warrants redeemed, no excess value needed to be attributed and no portion of the redemption was deemed a dividend.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>April 2016 Registered Common Stock and Warrant Offering</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">On April 13, 2016, the Company entered into a Securities Purchase Agreement with certain institutional investors providing for the issuance and sale by the Company of&#160;1,500,000 shares of the Company&#146;s common stock, par value $0.001 per share at an offering price of $1.00 per share, for net proceeds of $1.4 million&#160;after deducting placement agent fees and expenses. In addition, the Company sold to purchasers of common stock in this offering, warrants to purchase 1,125,000 shares of its common stock. The common shares and the Warrant Shares were offered by the Company pursuant to an effective shelf registration statement on Form S-3, which was initially filed with the Securities and Exchange Commission on October 22, 2015 and declared effective on December 7, 2015. The closing of the offering occurred on April 19, 2016.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">Each Warrant is immediately exercisable for two years, but not thereafter, at an exercise price of $1.15 per share. Subject to limited exceptions, a holder of warrants will not have the right to exercise any portion of its warrants if the holder, together with its affiliates, would beneficially own in excess of 4.99% of the number of shares of our common stock outstanding immediately after giving effect to such exercise. The exercise price and number of warrants are subject to adjustment in the event of any stock dividends and splits, reverse stock split, stock dividend, recapitalization, reorganization or similar transaction. The Warrants were classified as liabilities and measured at fair value, with changes in fair value recognized in the Condensed Consolidated Statements of Operations in other expenses (income). The initial recognition of the Warrants resulted in an allocation of the net proceeds from the offering to a warrant liability of approximately $318,000, with the remainder being attributable to the common stock sold in the offering.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 13.5pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 13.5pt"></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i></i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Preferred Share Conversion Activity</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">During the six months ended April 30, 2016, 599,634 shares of Convertible Preferred Stock Series A and 12,001 shares of Convertible Preferred Stock Series D were converted into 719,644 shares of common stock.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Common Stock</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">On December 18, 2015, the Company issued 50,000 shares of restricted stock to a director. The fair value of the stock on the grant date was $39,000 (based on a grant date stock price of $0.77 per share) and will be recognized over 1 year.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">On January 4, 2016, the Company declared a special cash dividend of an aggregate of $10.0 million to holders of record on January 14, 2016 of its outstanding shares of: (i) common stock (ii) Series A Convertible Preferred Stock; (iii) Series B Convertible Preferred Stock; (iv) Series C Convertible Preferred Stock and (v) Series D Convertible Preferred Stock.&#160;&#160;The holders of record of the Company&#146;s outstanding preferred stock participated in the dividend on an &#147;as converted&#148; basis.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">On January 6, 2016, certain investors exercised their options at $0.68 in exchange for the Company&#146;s common stock for an aggregated amount of 189,938 shares.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">On February 1, 2016, the Company issued 15,000 shares of restricted stock to a non-employee service provider and is being recognized over the one-year service period.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">In accordance with ASC 820, Fair Value Measurements, financial instruments were measured at fair value using a three-level hierarchy which maximizes use of observable inputs and minimizes use of unobservable inputs:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"></p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 5%; font: 8pt/107% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 8pt Symbol">&#183;</font></td> <td style="width: 95%; font: 8pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Level 1: Observable inputs such as quoted prices in active markets for identical instruments</font></td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 5%; font: 8pt/107% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 8pt Symbol">&#183;</font></td> <td style="width: 95%; font: 8pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Level 2: Quoted prices for similar instruments that are directly or indirectly observable in the market</font></td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 5%; font: 8pt/107% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 8pt Symbol">&#183;</font></td> <td style="width: 95%; font: 8pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Level 3: Significant unobservable inputs supported by little or no market activity.&#160;&#160;Financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, for which determination of fair value requires significant judgment or estimation.</font></td></tr> </table> <p style="font: 8pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in">In connection with the April 19, 2016 common stock offering, the Company issued warrants to purchase an aggregate of 1,125,000 shares of common stock.&#160;&#160;These warrants are exercisable at $1.15 per share and expire on April 19, 2018. These warrants were analyzed and it was determined that they require liability treatment. In addition, Under ASC 815, registered common stock warrants that require the issuance of registered shares upon exercise and do not expressly preclude an implied right to cash settlement are accounted for as derivative liabilities.&#160; The Company classifies these derivative warrant liabilities on the condensed consolidated balance sheet as a current liability.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The fair value of these warrants at April 19, 2016, and April 30, 2016 was determined to be approximately $318,000 and $344,000, respectively, as calculated using Black-Scholes with the following assumptions: (1) stock price of $0.79 and $0.83, respectively; (2) a risk free rate of 0.77%; and (3) an expected volatility of 86%.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.7pt">Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. At April 30, 2016, the warrant liability balance of $344,000 was classified as Level 3 instruments.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 13.5pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">The following table sets forth the changes in the estimated fair value for our Level 3 classified derivative warrant liability (from April 19, 2016 through April 30, 2016):</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Warrants</b></font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Fair value at the beginning of period</font></td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-left: 29.7pt; text-align: justify; text-indent: -29.7pt"><font style="font-size: 8pt">Additions</font></td> <td style="text-align: right">&#160;</td> <td colspan="2">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">317,836</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.1pt; padding-left: 29.7pt; text-align: justify; text-indent: -29.7pt"><font style="font-size: 8pt">Change in fair value</font></td> <td>&#160;</td> <td colspan="2" style="border-bottom: Black 1pt solid">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">&#160;26,186</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-bottom: 3.3pt; text-align: justify"><font style="font-size: 8pt">Fair value at end of period</font></td> <td style="text-align: right">&#160;</td> <td colspan="2" style="border-bottom: Black 1.5pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">344,022</font></td> <td>&#160;</td></tr> <tr> <td style="width: 81%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 5%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 11%">&#160;</td> <td style="width: 1%">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="margin: 0pt"></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Stock-based compensation expense during the three months ended April 30, 2016 and 2015 amounted to approximately $446,000 and $168,000 respectively. Stock-based compensation expense in the six months ended April 30, 2016 and 2015 amounted to approximately $993,000 and $388,000 respectively. Stock-based compensation expense is recorded in general and administrative expenses in the accompanying consolidated statements of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">A summary of the Company&#146;s stock option activity in the six months ended April 30, 2016 is presented below:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Number of shares</b></font></td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Weighted-Average </b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercise Price</b></p></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 78%"><font style="font-size: 8pt">Outstanding at beginning of period</font></td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">579,485</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">2.82</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Granted</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">38,092</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">1.05</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Exercised</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(189,938</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">0.68</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Expired</font></td> <td style="text-align: right">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(105,933</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">5.12</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Outstanding at end of period</font></td> <td style="text-align: right">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">321,706</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">3.11</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Options exercisable at end of period</font></td> <td style="text-align: right">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">283,614</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">3.39</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Weighted-average fair value of options granted during the period</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">1.05</font></td> <td nowrap="nowrap">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.25in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the six months ended April 30, 2016:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>April 30, 2016</b></font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 89%"><font style="font-size: 8pt">Risk free annual interest rate</font></td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">1.7</font></td> <td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Expected volatility</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">79</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Expected life</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">5</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Assumed dividends</font></td> <td style="text-align: right">&#160;</td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">None</font></td> <td nowrap="nowrap">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The value of stock option grants is amortized over the vesting period of, generally, one to three years. As of April&#160;30, 2016, there was approximately $19,000 of unrecognized compensation cost related to non-vested stock option awards, which is expected to be recognized over a remaining weighted-average vesting period of 0.4 year.&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">A summary of the Company&#146;s restricted stock activity in the six months ended April 30, 2016 is presented below:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Number of shares</b></font></td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Weighted-Average Grant-Date Fair Value</b></font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 78%"><font style="font-size: 8pt">Unvested at beginning of period</font></td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">1,384,791</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">1.25</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Granted</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">65,000</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">0.77</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Vested</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(464,588</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">1.23</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Forfeited</font></td> <td style="text-align: right">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Unvested at end of period</font></td> <td style="text-align: right">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">985,203</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">1.22</font></td> <td nowrap="nowrap">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&#160;The weighted-average fair value of restricted shares granted during the six months ended April 30, 2016 was $0.77. The total fair value of restricted stock vested during the six months ended April&#160;30, 2016 was approximately $391,000.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The value of restricted stock grants are measured based on their fair value on the date of grant and amortized over the vesting period of, generally, six months to three years. As of April&#160;30, 2016, there was approximately $712,000 of unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a remaining weighted-average vesting period of 0.4 years. The vesting period of 464,583 restricted shares is subject to acceleration upon the achievement of certain performance conditions related to financing or other corporate transactions.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&#160;&#160;</p> <p style="margin: 0pt"></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">Due to the Company&#146;s history of losses and uncertainty of future taxable income, a valuation allowance sufficient to fully offset net operating losses and other deferred tax assets has been established. The valuation allowance will be maintained until sufficient positive evidence exists to support a conclusion that a valuation allowance is not necessary. The Company&#146;s effective tax rate for the six months ended April 30, 2016 and 2015 differed from the expected U.S. federal statutory rate primarily due to the change in the valuation allowance. Full conversion of the outstanding shares of Preferred Stock will likely result in limitations on the utilization of the Company&#146;s net operating loss carryforwards under IRS section 382.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">Shares of common stock issuable under convertible preferred stock, warrants and options and shares subject to restricted stock grants were not included in the calculation of diluted earnings per common share for the three months and six months ended April 30, 2016 and 2015, as the effect of their inclusion would be anti-dilutive.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 14.3pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The table below provides total potential shares outstanding, including those that are anti-dilutive, on April 30, 2016:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 14.3pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center">&#160;</td> <td style="text-align: center">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td> <td style="text-align: center">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 82%; padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Shares issuable upon exercise of warrants</font></td> <td style="width: 1%">&#160;</td> <td style="width: 2%">&#160;</td> <td style="width: 14%; text-align: right"><font style="font-size: 8pt">1,125,000</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Shares issuable upon conversion of preferred stock</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">17,737,178</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Shares issuable upon exercise of stock options</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">321,706</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Non-vested shares under restricted stock grants</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">985,203</font></td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Contingencies</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">On February 26, 2015, a complaint for patent infringement was filed in the United States District Court for the Eastern District of Texas by Richard Baker, an individual residing in Australia, against Microsoft, Nintendo, the Company and a number of other game publisher defendants. The complaint alleges that the Company&#146;s Zumba Fitness Kinect game infringed plaintiff&#146;s patents in motion tracking technology. The plaintiff is representing himself pro se in the litigation and is seeking monetary damages in the amount of $1.3 million. The Company, in conjunction with Microsoft, is defending itself against the claim and has certain third party indemnity rights from developers for costs incurred in the litigation. In August 2015, the defendants jointly moved to transfer the case to the Western District of Washington. The motion is currently pending. The Company cannot currently estimate a potential range of loss if the claim against the Company is successful.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">In addition to the item above, the Company at times may be a party to claims and suits in the ordinary course of business. We record a liability when it is both probable that a liability has been incurred and the amount of the loss or range of loss can be reasonably estimated. The Company has not recorded a liability with respect to the matter above. While the Company believes that it has valid defenses with respect to the legal matter pending and intends to vigorously defend the matter above, given the uncertainty surrounding litigation and our inability to assess the likelihood of a favorable or unfavorable outcome, it is possible that the resolution of the matter could have a material adverse effect on our consolidated financial position, cash flows or results of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><i>&#160;</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Commitments</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company incurs rent expense under a short-term operating lease for administrative offices, which expires in fiscal 2016. Total rent expense amounted to approximately $5,000 and $14,000 for the three months ended April&#160;30, 2016 and 2015, respectively. Total rent expense amounted to approximately $10,000 and $85,000 for the six months ended April&#160;30, 2016 and 2015, respectively, including charges incurred upon vacating its previous administrative offices.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;The Company has entered into employment agreements with key executives that contain severance terms and change of control provisions.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">In January 2015, the Company entered into an agreement with Equity Stock Transfer for transfer agent services. A Board member of the Company is a co-founder and chief executive officer of Equity Stock Transfer. Fees under the agreement were approximately $2,000 and $5,000 in the six months ended April 30, 2016 and 2015, respectively.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">On July 31, 2015, the Company transferred to Zift Interactive LLC (&#147;Zift&#148;), a newly-formed subsidiary, certain rights under certain of its publishing licenses related to developing, publishing and distributing video game products through retail distribution for a term of one year. The Company transferred Zift to its former chief executive officer, Jesse Sutton. In exchange, the Company received Mr. Sutton&#146;s resignation from the position of chief executive officer of the Company, including waiver of any severance payments and the execution of a separation agreement, together with his agreement to serve as a consultant to the Company. In addition, Zift will pay the Company a specified percent of its net revenue from retail sales on a quarterly basis.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">In addition, the Company entered into a conveyance agreement with Zift under which it assigned to Zift certain assets used in the retail business and Zift agreed to assume and indemnify the Company for liabilities and claims related to the retail business, including customer claims for price protection and promotional allowances. The assets transferred to Zift included cash in an amount of $800,000, of which $400,000 was transferred immediately and the remaining $400,000 is payable by the Company in twelve equal consecutive monthly installments of $33,000 commencing August 1, 2015, and certain accounts receivable and inventory with an aggregate carrying value of approximately $87,000. As of April 30, 2016, the Company had a payable of approximately $76,000 to Zift.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">On May 10, 2016, the Company granted 1,975,000 stock options and 1,975,000 restricted stock shares to employees and independent directors. Additionally, the Company granted 50,000 restricted stock shares to a vendor for services.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 9.9pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Principles of Consolidation.&#160;&#160;</i>The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary located in the United Kingdom. Significant intercompany accounts and transactions have been eliminated in consolidation.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Revenue Recognition.</i> The Company has recognized revenue upon the shipment of its products when: (1) title and the risks and rewards of ownership are transferred; (2) persuasive evidence of an arrangement exists; (3) there are no continuing obligations to the customer; and (4) the collection of related accounts receivable is probable. Certain products have been sold to customers with a street date (the earliest date these products may be resold by retailers). Revenue for sales of these products is not recognized prior to their street date. Some of the Company&#146;s software products provide limited online features at no additional cost to the consumer. Generally, such features have been considered to be incidental to the Company&#146;s overall product offerings and an inconsequential deliverable. Accordingly, the Company does not defer any revenue related to products containing these limited online features. However, in instances where online features or additional functionality is considered a substantive deliverable in addition to the software product, such characteristics will be taken into account when applying the Company&#146;s revenue recognition policy. While the Company has historically sold its products through two sales channels, retail and digital, in July 2015, the Company transferred retail distribution activities, assets and obligations to a company owned by its former chief executive officer (see Note 13), and therefore ceased retail sales.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company generally sold its products to retailers and distributors on a no-return basis, although in certain instances, the Company provided price protection or other allowances on certain unsold products. Price protection, when granted and applicable, allows customers a partial credit against amounts they owe the Company with respect to merchandise unsold by them. Revenue was recognized, and accounts receivable was presented, net of estimates of these allowances.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company estimated potential future product price protection and other allowances related to current period product revenue. The Company analyzed historical experience, current sell through of retailer inventory of the Company&#146;s products, current trends in the video game market, the overall economy, changes in customer demand and acceptance of the Company&#146;s products and other related factors when evaluating the adequacy of price protection and other allowances.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">Sales incentives or other consideration given by the Company to customers that were considered adjustments of the selling price of its products, such as rebates and product placement fees, were reflected as reductions of revenue. Sales incentives and other consideration that represent costs incurred by the Company for benefits received, such as the appearance of the Company&#146;s products in a customer&#146;s national circular ad, are reflected as selling and marketing expenses, in accordance with Accounting Standards Codification (&#147;ASC&#148;) 605-50,<i> Customer Payments and Incentives</i>.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company&#146;s software products are sold as downloads of digital content for which the consumer takes possession of the digital content for a fee. Revenue from product downloads is generally recognized when the download is made available (assuming all other recognition criteria are met).</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The Company records revenue for distribution agreements where it is acting as an agent as defined by ASC Topic 605,<i> Revenue Recognition, Subtopic 45, Principal Agent Considerations</i>, on a net basis. When the Company enters into license or distribution agreements that provide for multiple copies of games in exchange for guaranteed amounts, revenue is recognized in accordance with the terms of the agreements, generally upon delivery of a master copy, assuming our performance obligations are complete and all other recognition criteria are met, or as per-copy royalties are earned on sales of games.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Cash and cash equivalents.</i>&#160;&#160;Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase. At various times, the Company has deposits in excess of the Federal Deposit Insurance Corporation limit. The Company has not experienced any losses on these accounts.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt"><i>Accounts Receivable and Accounts Payable and Accrued Expenses. </i>The carrying amounts of accounts receivable and accounts payable and accrued expenses approximate fair value as these accounts are largely current and short term in nature.<i> </i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Allowance for doubtful accounts</i>. The Company recognizes an allowance for losses on accounts receivable for estimated probable losses. The allowance is based on historical experiences, current aging of accounts, and other expected future write-offs, including specific identifiable customer accounts considered at risk or uncollectible. Any related expense associated with an allowance for doubtful accounts is recognized as general and administrative expense. As of April 30, 2016, there was no allowance for doubtful accounts.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt"><i>Capitalized Software Development Costs and License Fees.</i> Software development costs include fees in the form of milestone payments made to independent software developers and licensors. Software development costs are capitalized once technological feasibility of a product is established and management expects such costs to be recoverable against future revenues. For products where proven game engine technology exists, this may occur early in the development cycle. Technological feasibility is evaluated on a product-by-product basis. Amounts related to software development that are not capitalized are charged immediately to product research and development costs. Commencing upon a related product&#146;s release, capitalized costs are amortized to cost of sales based upon the higher of (i) the ratio of current revenue to total projected revenue or (ii) straight-line charges over the expected marketable life of the product.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">Prepaid license fees represent license fees to owners for the use of their intellectual property rights in the development of the Company&#146;s products. Minimum guaranteed royalty payments for intellectual property licenses are initially recorded as an asset (prepaid license fees) and a current liability (accrued royalties payable) at the contractual amount upon execution of the contract or when specified milestones or events occur and when no significant performance remains with the licensor. Licenses are expensed to cost of sales at the higher of (i)&#160;the contractual royalty rate based on actual sales or (ii)&#160;an effective rate based upon total projected revenue related to such license. Capitalized software development costs and prepaid license fees are classified as non-current if they relate to titles for which the Company estimates the release date to be more than one year from the balance sheet date.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">The amortization period for capitalized software development costs and prepaid license fees is usually no longer than one year from the initial release of the product. If actual revenues or revised forecasted revenues fall below the initial forecasted revenue for a particular license, the charge to cost of sales may be larger than anticipated in any given quarter. The recoverability of capitalized software development costs and prepaid license fees is evaluated quarterly based on the expected performance of the specific products to which the costs relate. When, in management&#146;s estimate, future cash flows will not be sufficient to recover previously capitalized costs, the Company expenses these capitalized costs to &#147;cost of sales-software development costs and license fees,&#148; in the period such a determination is made. These expenses may be incurred prior to a game&#146;s release for games that have been developed. If a game is cancelled prior to completion of development and never released to market, the amount is expensed to operating costs and expenses. If the Company was required to write off licenses, due to changes in market conditions or product acceptance, its results of operations could be materially adversely affected.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">Costs of developing online free-to-play social games, including payments to third-party developers, are expensed as research and development expenses. Revenue from these games is largely dependent on players&#146; future purchasing behavior in the game and currently the Company cannot reliably project that future net cash flows from developed games will exceed related development costs.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">Prepaid license fees and milestone payments made to the Company&#146;s third party developers are typically considered non-refundable advances against the total compensation they can earn based upon the sales performance of the products. Any additional royalty or other compensation earned beyond the milestone payments is expensed to cost of sales as incurred.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt"><i>Property and equipment.</i>&#160;&#160;Property and equipment is stated at cost. Depreciation and amortization is being provided for by the straight-line method over the estimated useful lives of the assets, generally five years. Amortization of leasehold improvements is provided for over the shorter of the term of the lease or the life of the asset.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Income taxes.</i>&#160;&#160;The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the potential for realization of deferred tax assets at each quarterly balance sheet date and records a valuation allowance for assets for which realization is not more likely than not.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt"><i>Stock Based Compensation.</i> The Company measures all stock-based compensation to employees using a fair value method and records such expense in general and administrative expenses. Compensation expense for stock options is recognized on a straight line basis over the vesting period of the award, based on the fair value of the option on the date of grant.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.1pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">The fair value for options issued is estimated at the date of grant using a Black-Scholes option-pricing model. The risk free rate is derived from the U.S.&#160;Treasury yield curve in effect at the time of the grant. The volatility factor is determined based on the Company&#146;s historical stock prices.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 14.3pt"><i>&#160;Extinguishment of Liabilities.</i> During the six months ended April 30, 2015, the Company recognized a gain on extinguishment of liabilities of $1.1 million. The Company determined that certain accounts payable balances and claims for license fees and services would never be paid because they were no longer being pursued for payment and had passed the statute of limitations as of April 30, 2015.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.15in"><i>Gain on asset sales, net.</i> During the six months ended April 30, 2015, we recognized approximately $128,000 in net gain from the sale of certain game rights and from the sale of office furniture and equipment upon the move to a smaller office.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Loss Per Share.</i> Basic loss per share of common stock is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted loss per share excludes the potential impact of common stock options, unvested shares of restricted stock and outstanding common stock purchase warrants because their effect would be anti-dilutive.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt"><i>Commitments and Contingencies.</i>&#160;&#160;We are subject to claims and litigation in the ordinary course of our business. We record a liability for commitments and contingencies when the amount is both probable and reasonably estimable. We record associated legal fees as incurred. We accrued contingent liabilities for certain potential licensor and customer liabilities and claims that were transferred to Zift but may not be extinguished by such transaction. </p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt"><i>Estimates.</i> The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities or the disclosure of gain or loss contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Among the more significant estimates included in these financial statements are the recoverability of advance payments for capitalized software development costs and intellectual property licenses, the valuation of warrant liability, and the valuation allowances for deferred tax benefits. Actual results could differ from those estimates.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">In May 2014, the Financial Accounting Standards Board (&#34;FASB&#34;) issued an Accounting Standards Update (&#34;ASU&#34;) creating a new Topic 606, <i>Revenue from Contracts with Customers</i>, which broadly establishes new standards for the recognition of certain revenue and updates related disclosure requirements. The update becomes effective for the Company on November 1, 2018. The Company is reviewing the potential impact of the statement on its financial position, results of operations, and cash flows.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.2pt">&#160;</p> <p style="font: 8pt/11.25pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.7pt">In February 2016, FASB issued ASU No. 2016-02, <i>Leases (Topic 842) </i>which supersedes FASB ASC Topic 840, <i>Leases (Topic 840) </i>and provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The standard is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted upon issuance. When adopted, the Company does not expect this guidance to have a material impact on our financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">In March 2016, the FASB issued ASU No. 2016-08, Revenue <i>from Contracts with Customers (Topic 606): Principal versus Agent Considerations</i>. The purpose of ASU No. 2016-08 is to clarify the implementation of guidance on principal versus agent considerations. For public entities, the amendments in ASU No. 2016-08 are effective for interim and annual reporting periods beginning after December 15, 2017. The Company is currently assessing the impact of ASU No. 2016-08 on its condensed consolidated financial statements and related disclosures.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">In March 2016, the FASB issued ASU No. 2016-09, <i>Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting</i>. Under ASU No. 2016-09, companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (&#147;APIC&#148;). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement and the APIC pools will be eliminated. In addition, ASU No. 2016-09 eliminates the requirement that excess tax benefits be realized before companies can recognize them. ASU No. 2016-09 also requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Furthermore, ASU No. 2016-09 will increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer&#146;s statutory income tax withholding obligation. An employer with a statutory income tax withholding obligation will now be allowed to withhold shares with a fair value up to the amount of taxes owed using the maximum statutory tax rate in the employee&#146;s applicable jurisdiction(s). ASU No. 2016-09 requires a company to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on the statement of cash flows. Under current U.S. GAAP, it was not specified how these cash flows should be classified. In addition, companies will now have to elect whether to account for forfeitures on share-based payments by (1) recognizing forfeitures of awards as they occur or (2) estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as is currently required. The amendments of this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted but all of the guidance must be adopted in the same period. The Company is currently assessing the impact that ASU No. 2016-09 will have on its condensed consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">In April 2016, the FASB issued ASU No. 2016-10,&#160;<i>Revenue from Contracts with Customer</i>.&#160;The new guidance is an update to ASC 606 and provides clarity on: identifying performance obligations and licensing implementation. For public companies, ASU No. 2016-10 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the impact that ASU No. 2016-10 will have on its condensed consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt"><i>Change in fair value of warrant liability. </i> The Company assessed the classification of common stock purchase warrants as of the date of each offering and determined that such instruments met the criteria for liability classification. Accordingly, the Company classified the warrants as a liability at their fair value and adjusts the instruments to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until the warrants are exercised or expired, and any change in fair value is recognized as &#147;change in fair value of warrant liability&#148; in the condensed consolidated statements of operations. The fair value of the warrants has been estimated using a Black-Scholes valuation model (see Note 7).</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt"><i>Accounting for Warrants</i>. The Company accounts for the issuance of common stock purchase warrants issued in connection with the equity offerings in accordance with the provisions of ASC 815, Derivatives and Hedging (&#147;ASC 815&#148;).&#160;&#160;The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement).&#160;&#160;The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net-cash settle the contract if an event occurs and if that event is outside the control of the Company) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). In addition, Under ASC 815, registered common stock warrants that require the issuance of registered shares upon exercise and do not expressly preclude an implied right to cash settlement are accounted for as derivative liabilities.&#160; The Company classifies these derivative warrant liabilities on the condensed consolidated balance sheet as a current liability.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">Prepaid expenses and other current assets consist of the following (in thousands):</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 16.5pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>April 30,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>October 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="width: 68%"><font style="font-size: 8pt">Prepaid insurance</font></td> <td style="width: 1%">&#160;</td> <td style="width: 3%"><font style="font-size: 8pt">$</font></td> <td style="width: 11%; text-align: right"><font style="font-size: 8pt">133</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 3%"><font style="font-size: 8pt">$&#160;</font></td> <td style="width: 11%; text-align: right"><font style="font-size: 8pt">61</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Tax receivable</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">6</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">30</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="background-color: #CCFFFF"><font style="font-size: 8pt">Other</font></td> <td style="background-color: #CCFFFF">&#160;</td> <td style="border-bottom: Black 1pt solid; background-color: #CCFFFF">&#160;</td> <td style="border-bottom: Black 1pt solid; background-color: #CCFFFF; text-align: right"><font style="font-size: 8pt">39</font></td> <td style="background-color: #CCFFFF">&#160;</td> <td style="background-color: #CCFFFF">&#160;</td> <td style="border-bottom: Black 1pt solid; background-color: #CCFFFF">&#160;</td> <td style="border-bottom: Black 1pt solid; background-color: #CCFFFF; text-align: right"><font style="font-size: 8pt">10</font></td> <td style="background-color: white">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Total prepaid expenses and other current assets</font></td> <td>&#160;</td> <td style="border-bottom: Black 1.5pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">178</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: Black 1.5pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">101</font></td> <td style="background-color: #CCFFFF">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 16.5pt">&#160;<b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">Property and equipment, net, consist of the following (in thousands):</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 7.7pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center">&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>April 30,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>October 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="width: 67%; padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Computers and software</font></td> <td style="width: 1%">&#160;</td> <td style="width: 3%"><font style="font-size: 8pt">$</font></td> <td style="width: 11%; text-align: right"><font style="font-size: 8pt">61</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 4%"><font style="font-size: 8pt">$</font></td> <td style="width: 11%; text-align: right"><font style="font-size: 8pt">61</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Furniture and equipment</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">78</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">78</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-left: 45.1pt; text-indent: -5.5pt"><font style="font-size: 8pt">Total property and equipment, gross</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">139</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">139</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Accumulated depreciation</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(108</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(94</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-left: 27.5pt; text-align: justify"><font style="font-size: 8pt">Total property and equipment, net</font></td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">31</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">45</font></td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 14.3pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">Accounts payable and accrued expenses consist of the following (in thousands):</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: Black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>April 30,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: Black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>October 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="width: 67%; padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Accounts payable-trade</font></td> <td style="width: 1%">&#160;</td> <td style="width: 3%"><font style="font-size: 8pt">$</font></td> <td style="width: 11%; border-top: Black 1pt solid; text-align: right"><font style="font-size: 8pt">345</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 4%"><font style="font-size: 8pt">$</font></td> <td style="width: 11%; border-top: Black 1pt solid; text-align: right"><font style="font-size: 8pt">479</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Royalties, fees and development</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">678</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">681</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Salaries and other compensation</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">461</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">510</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.5pt; text-indent: -5.5pt"><font style="font-size: 8pt">Other accruals</font></td> <td>&#160;</td> <td style="border-bottom: Black 1pt solid">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">12</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: Black 1pt solid">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">16</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-left: 27.5pt; text-align: justify"><font style="font-size: 8pt">Total accounts payable and accrued expenses</font></td> <td>&#160;</td> <td style="border-bottom: Black 1.5pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">1,496</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: Black 1.5pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">1,686</font></td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 11pt">&#160;&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 12.95pt">Convertible preferred stock as of April 30, 2016 consisted of the following (in thousands, except share amounts):</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 46.2pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">Shares Authorized</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">Shares Issued and Outstanding</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">Net Carrying Value</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">Aggregate Liquidation Preference</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">Common Shares Issuable Upon Conversion</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="width: 28%"><font style="font-size: 8pt">Series A</font></td> <td style="width: 1%">&#160;</td> <td style="width: 4%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">8,830,000</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 5%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">8,177,334</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 3%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">1,999</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 4%"><font style="font-size: 8pt">$</font></td> <td style="width: 7%; text-align: right"><font style="font-size: 8pt">5,561</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 4%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">8,177,334</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Series B</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">54,250</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">54,201</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">4,569</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">5,420,171</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td><font style="font-size: 8pt">Series C</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">26,000</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">25,763</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,010</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,576,353</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Series D</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">170,000</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">156,332</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,829</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,563,320</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td><font style="font-size: 8pt">Other authorized, unissued</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">919,750</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Total</font></td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">10,000,000</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">8,413,630</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">10,407</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">5,561</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">17,737,178</font></td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">The following table sets forth the changes in the estimated fair value for our Level 3 classified derivative warrant liability (from April 19, 2016 through April 30, 2016):</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Warrants</b></font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Fair value at the beginning of period</font></td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-left: 29.7pt; text-align: justify; text-indent: -29.7pt"><font style="font-size: 8pt">Additions</font></td> <td style="text-align: right">&#160;</td> <td colspan="2">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">317,836</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.1pt; padding-left: 29.7pt; text-align: justify; text-indent: -29.7pt"><font style="font-size: 8pt">Change in fair value</font></td> <td>&#160;</td> <td colspan="2" style="border-bottom: Black 1pt solid">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">&#160;26,186</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCFFFF"> <td style="padding-bottom: 3.3pt; text-align: justify"><font style="font-size: 8pt">Fair value at end of period</font></td> <td style="text-align: right">&#160;</td> <td colspan="2" style="border-bottom: Black 1.5pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">344,022</font></td> <td>&#160;</td></tr> <tr> <td style="width: 81%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 5%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 11%">&#160;</td> <td style="width: 1%">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">A summary of the Company&#146;s stock option activity in the six months ended April 30, 2016 is presented below:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Number of shares</b></font></td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Weighted-Average </b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercise Price</b></p></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 78%"><font style="font-size: 8pt">Outstanding at beginning of period</font></td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">579,485</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">2.82</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Granted</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">38,092</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">1.05</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Exercised</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(189,938</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">0.68</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Expired</font></td> <td style="text-align: right">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(105,933</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">5.12</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Outstanding at end of period</font></td> <td style="text-align: right">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">321,706</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">3.11</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Options exercisable at end of period</font></td> <td style="text-align: right">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">283,614</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">3.39</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Weighted-average fair value of options granted during the period</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">1.05</font></td> <td nowrap="nowrap">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the six months ended April 30, 2016:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>April 30, 2016</b></font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 89%"><font style="font-size: 8pt">Risk free annual interest rate</font></td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">1.7</font></td> <td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Expected volatility</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">79</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Expected life</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">5</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Assumed dividends</font></td> <td style="text-align: right">&#160;</td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">None</font></td> <td nowrap="nowrap">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">A summary of the Company&#146;s restricted stock activity in the six months ended April 30, 2016 is presented below:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Number of shares</b></font></td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Weighted-Average Grant-Date Fair Value</b></font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 78%"><font style="font-size: 8pt">Unvested at beginning of period</font></td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">1,384,791</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">1.25</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Granted</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">65,000</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">0.77</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Vested</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(464,588</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">1.23</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Forfeited</font></td> <td style="text-align: right">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Unvested at end of period</font></td> <td style="text-align: right">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">985,203</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">1.22</font></td> <td nowrap="nowrap">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The table below provides total potential shares outstanding, including those that are anti-dilutive, on April 30, 2016:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 89%; text-indent: 0pt"><font style="font-size: 8pt">Shares issuable upon exercise of warrants</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">1,125,000</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-indent: 0pt"><font style="font-size: 8pt">Shares issuable upon conversion of preferred stock</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">17,737,178</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-indent: 0pt"><font style="font-size: 8pt">Shares issuable upon exercise of stock options</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">321,706</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-indent: 0pt"><font style="font-size: 8pt">Non-vested shares under restricted stock grants</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">985,203</font></td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;&#160;</p> .40 .18 .28 .30 .30 .53 .10 1100000 128000 17737178 8177334 5420171 2576353 1563320 0 0 344022 26186 317836 579485 321706 38092 -189938 105933 283614 2.82 3.11 1.05 .68 5.12 3.39 1.05 .017 .79 P5Y 0.00 985203 1384791 985203 65000 464588 0 1.22 1.25 .77 1.23 0.00 1125000 17737178 10000 85000 5000 14000 2000 5000 76000 19000 712000 391000 8823537 599634 12001 719644 -243000 EX-101.SCH 6 cool-20160430.xsd XBRL TAXONOMY EXTENSION SCHEMA 00000001 - Document - Document And Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000006 - Disclosure - PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - PREPAID EXPENSES AND OTHER CURRENT ASSETS link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - PROPERTY AND EQUIPMENT, NET link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - ACCOUNTS PAYABLE AND ACCRUED EXPENSES link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - STOCKHOLDERS' EQUITY link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - FAIR VALUE MEASUREMENTS link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - STOCK BASED COMPENSATION ARRANGEMENTS link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - INCOME TAXES link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - LOSS PER SHARE link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - COMMITMENTS AND CONTINGENCIES link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - RELATED PARTIES link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - ASSIGNMENT OF ASSETS AND LIABILITIES link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - SUBSEQUENT EVENTS link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - PROPERTY AND EQUIPMENT, NET (Tables) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - STOCKHOLDERS' EQUITY (Tables) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - FAIR VALUE MEASUREMENTS (Tables) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - STOCK BASED COMPENSATION ARRANGEMENTS (Tables) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - LOSS PER SHARE (Tables) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - PROPERTY AND EQUIPMENT, NET (Details) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - STOCKHOLDERS' EQUITY (Details) link:presentationLink link:calculationLink link:definitionLink 00000034 - Disclosure - STOCKHOLDERS' EQUITY (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000035 - Disclosure - FAIR VALUE MEASUREMENTS (Details) link:presentationLink link:calculationLink link:definitionLink 00000036 - Disclosure - STOCK BASED COMPENSATION ARRANGEMENTS (Details) link:presentationLink link:calculationLink link:definitionLink 00000037 - Disclosure - STOCK BASED COMPENSATION ARRANGEMENTS (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000038 - Disclosure - STOCK BASED COMPENSATION ARRANGEMENTS (Details 2) link:presentationLink link:calculationLink link:definitionLink 00000039 - Disclosure - STOCK BASED COMPENSATION ARRANGEMENTS (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000040 - Disclosure - LOSS PER SHARE (Details) link:presentationLink link:calculationLink link:definitionLink 00000041 - Disclosure - COMMITMENTS AND CONTINGENCIES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000042 - Disclosure - RELATED PARTIES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000043 - Disclosure - ASSIGNMENT OF ASSETS AND LIABILITIES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 7 cool-20160430_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.DEF 8 cool-20160430_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-101.LAB 9 cool-20160430_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE Series A Preferred Stock [Member] Class of Stock [Axis] Series B Preferred Stock [Member] Series C Preferred Stock [Member] Series D Preferred Stock [Member] Other authorized, unissued [Member] Microsoft Corporation [Member] Customer [Axis] Sales [Member] Concentration Risk Benchmark [Axis] Valve [Member] Sony [Member] Accounts Receivable [Member] Zumba Fitness Game [Member] NintendoMember GMS Entertainment Limited [Member] Investment, Name [Axis] SeriesC [Member] Auction Market Preferred Securities, Stock Series [Axis] Series A [Member] May Warrants [Member] Class of Warrant or Right [Axis] Minimum [Member] Range [Axis] Maximum [Member] Common Stock [Member] December Warrants [Member] May units [Member] Preferred Stock [Member] Equity Components [Axis] Series D Convertible Preferred Stock [Member] Series A Convertible Preferred Stock [Member] Series B Convertible Preferred Stock [Member] Restricted Stock [Member] Award Type [Axis] Transfer Agent [Member] Related Party [Axis] Zift Interactive LLC [Member] Legal Entity [Axis] Transferred Immediately [Member] Transferred Assets [Axis] Payable In Twelve Equal Consecutive Monthly Installments [Member] Subsequent Event [Member] Subsequent Event Type [Axis] Sidekick [Member] Document And Entity Information [Abstract] Entity Registrant Name Entity Central Index Key Current Fiscal Year End Date Entity Filer Category Trading Symbol Entity Common Stock, Shares Outstanding Document Type Amendment Flag Document Period End Date Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] ASSETS Current assets: Cash and cash equivalents Accounts receivable Capitalized software development costs and license fees Prepaid expenses and other current assets Total current assets Property and equipment, net TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses Payable to Zift Warrant liability Total current liabilities Total liabilities Commitments and contingencies STOCKHOLDERS' EQUITY: Convertible Preferred stock - 10,000,000 shares authorized, 8,413,630 and 9,025,265 shares issued and outstanding at April 30, 2016 and October 31, 2015, aggregate liquidation preference $5,561 and $5,968, respectively Common stock - $.001 par value; 250,000,000 shares authorized; 13,583,875 and 11,109,293 shares issued and outstanding at April 30, 2016 and October 31, 2015, respectively Additional paid-in capital Accumulated deficit Total stockholders' equity TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY Preferred Stock, Shares Authorized Preferred Stock, Shares Issued Preferred Stock, Shares Outstanding Preferred Stock, Liquidation Preference, Value Common stock, par value (in dollars per share) Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding Income Statement [Abstract] Net revenues Cost of sales Product costs Software development costs and license fees Total cost of sales Gross profit Operating costs and expenses Product research and development Selling and marketing General and administrative Workforce reduction Depreciation and amortization Total operating costs and expenses Operating loss Other expenses (income) Interest and financing costs (income) Gain on extinguishment of liabilities Gain on asset sales, net Change in fair value of warrant liability Loss before income taxes Income taxes Net loss Special cash dividend attributable to preferred shareholders Conversion features accreted as dividends Net loss attributable to common stockholders Net loss per share, basic and diluted: Weighted average shares outstanding, basic and diluted: Statement of Cash Flows [Abstract] CASH FLOWS FROM OPERATING ACTIVITIES Net loss Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Change in warrant liability Non-cash compensation expense Provision for price protection Amortization of capitalized software development costs and license fees Gain on asset sales, net Provision for excess inventory Offering costs expensed Changes in operating assets and liabilities: Accounts receivables Inventory Capitalized software development costs and license fees Advance payments for inventory Prepaid expenses and other current assets Accounts payable and accrued expenses Payable to Zift Customer credits Advances from customers and deferred revenue Net cash (used in) provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Net proceeds from sale of assets Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Special cash dividend Proceeds from stock options exercise Net proceeds from the sale of common stock and warrants Net proceeds from sale of units Income tax withholding from stock compensation Net cash (used in) provided by financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents - beginning of period Cash and cash equivalents - end of period SUPPLEMENTAL CASH FLOW INFORMATION Cash paid during the period for income taxes Supplemental schedule of non-cash investing and financing activities: Warrant liability reclassified to additional paid-in capital upon exchange Conversion of Series A preferred stock to common stock Conversion of Series D preferred stock to common stock Common stock shares and warrants issued for offering costs Organization, Consolidation and Presentation of Financial Statements [Abstract] PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION Accounting Policies [Abstract] SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] PREPAID EXPENSES AND OTHER CURRENT ASSETS Property, Plant and Equipment [Abstract] PROPERTY AND EQUIPMENT, NET Payables and Accruals [Abstract] ACCOUNTS PAYABLE AND ACCRUED EXPENSES Equity [Abstract] STOCKHOLDERS' EQUITY Fair Value Measurements FAIR VALUE MEASUREMENTS Disclosure of Compensation Related Costs, Share-based Payments [Abstract] STOCK BASED COMPENSATION ARRANGEMENTS Income Tax Disclosure [Abstract] INCOME TAXES Earnings Per Share [Abstract] LOSS PER SHARE Commitments and Contingencies Disclosure [Abstract] COMMITMENTS AND CONTINGENCIES Related Party Transactions [Abstract] RELATED PARTIES Assignment of Assets And Liabilities [Abstract] ASSIGNMENT OF ASSETS AND LIABILITIES Subsequent Events [Abstract] SUBSEQUENT EVENTS Principles of Consolidation Revenue Recognition Cash and cash equivalents Accounts and Other Receivables and Accounts Payable and Accrued Expenses Allowance for doubtful accounts Capitalized Software Development Costs and License Fees Property and equipment Income taxes Stock Based Compensation Extinguishment of Liabilities Gain on asset sales, net Loss Per Share Commitments and Contingencies Accounting for Warrants Change in fair value of warrant liability Estimates Recent Accounting Pronouncements Prepaid Expenses and Other Current Assets Property, Plant and Equipment Schedule of Accounts Payable and Accrued Liabilities Changes in additional paid-in capital Fair Value Measurements Tables Changes in the estimated fair value for Level 3 classified derivative warrant liability Schedule of Share-based Compensation, Stock Options, Activity Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity Share-based Compensation, Performance Shares Award Outstanding Activity Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions [Table] Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] Concentration Risk, Percentage Gain on sale of Game Rights Recognized gain on extinguishment of liabilities Prepaid insurance State tax receivable Other Total prepaid expenses and other current assets Computers and software Furniture and equipment Leasehold improvements Total property and equipment, gross Accumulated depreciation Total property and equipment, net Accounts payable-trade Royalties, fees and development Salaries and other compensation Other accruals Total accounts payable and accrued expenses Statement [Table] Statement [Line Items] Preferred Stock, Shares Issued and Outstanding Preferred Stock, Value, Issued Common Shares Issuable Upon Conversion Schedule of Stock by Class [Table] Class of Stock [Line Items] Retired Warrants Preferred stock converted into common stock Stock Issued During Period, Shares, Conversion of Convertible Securities Fair Value Measurements Details Fair value at the beginning of period Additions Change in fair value Fair value at end of period Outstanding at beginning of period - Number Of Shares Granted - Number Of Shares Exercised - Number Of Shares Forfeited or expired -Number Of Shares Expired - Number Of Shares Outstanding at end of period - Number Of Shares Options exercisable at year-end - Number Of Shares Outstanding at beginning of year -Weighted Average Exercise Price (in dollars per share) Granted - Weighted Average Exercise Price (in dollars per share) Exercised - Weighted Average Exercise Price (in dollars per share) Expired - Weighted Average Exercise Price (in dollars per share) Outstanding at end of year - Weighted Average Exercise Price (in dollars per share) Options exercisable at year-end - Weighted Average Exercise Price (in dollars per share) Weighted-average fair value of options granted during the year - Weighted Average Exercise Price (in dollars Per share) Risk free annual interest rate Expected volatility Expected life Assumed dividends Schedule of restricted stock unit activity [Table] Share-based Compensation Arrangement by Share-based Payment Award [Line Items] Unvested at beginning of period Number Of Shares Granted Number Of Shares Vested Number Of Shares Forfeited Unvested at end of period Weighted-Average Grant-Date Fair Value Unvested at beginning of period Weighted-Average Grant-Date Fair Value Granted Weighted-Average Grant-Date Fair Value Vested Weighted-Average Grant-Date Fair Value Forfeited Weighted-Average Grant-Date Fair Value Unvested at end of period Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Table] Income Statement Location [Axis] Option Indexed to Issuer's Equity [Axis] Plan Name [Axis] Title of Individual [Axis] Vesting [Axis] Warrants Transactions [Axis] Share-based Compensation, Total Unrecognized compensation cost Fair value of restricted stock vested Shares issuable upon exercise of warrants Shares issuable upon conversion of preferred stock Shares issuable upon exercise of stock options Non-vested shares under restricted stock grants Operating Leases, Rent Expense Schedule of Related Party Transactions, by Related Party [Table] Related Party Transaction [Line Items] Related Party Transaction Strategic Consulting Services Fee From Transaction With Related Party Monthly Payable The entire disclosure for assignment of assets and liabilities. Disclosure for accounting policy for capitalization of software development costs and license fees. The Tabular Disclosure Shows Changes In Additional Paid In Capital. Long lived, depreciable assets that are used in the creation, maintenance and utilization of information systems and capitalized computer software costs. Custom Element. Custom Element. Aggregate number of shares issuable for convertible preferred stock that is converted. December Warrants Member. Amount of payable to the newly-formed subsidiary. Extinguishment of liabilities Policy Text Block. Gain on asset sales, net Policy Text Block. It represents the gain on transfer of game rights during the year. Gms Entertainment Limited Member. Advance payments for inventory The increase (decrease) during the reporting period in the total amount of customer credits. May Units Member. May Warrants Member. Microsoft Corporation Member. Other Member. Payable In Twelve Equal Consecutive Monthly Installments Member. Preferred stock converted into common stock. The entire disclosure for prepaid expense and other assets during the reporting period. The cash inflow from the issuance of stock units during the period. Amount of strategic consulting services fee on monthly basis. Retired warrants. Schedule Of Restricted Stock Unit Activity Table. Series A Convertible Preferred Stock Member. Series B Convertible Preferred Stock Member. Series C Member. Series D Convertible Preferred Stock Member. It represents the number of shares issuable under common stock warrants. It represents the number of shares issuable under conversion of preferred stock. Sony Member. Transfer Agent Member. Transferred Assets Axis. Transferred Immediately Member. Valve Member. Warrant liability reclassified to additional paid-in capital upon exchange in noncash financing activities. Warrants Transactions Axis. Warrants Transactions Domain. It represents charges relating to reduction in the workforce. Zift Interactive Llc Member. Zumba Fitness Game Member. Assets, Current Assets Liabilities, Current Liabilities Stockholders' Equity Attributable to Parent Liabilities and Equity Cost of Revenue Gross Profit Operating Expenses Operating Income (Loss) Gains (Losses) on Extinguishment of Debt Other Nonoperating Income Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest Preferred Stock Dividends, Income Statement Impact Net Income (Loss) Available to Common Stockholders, Basic Gain (Loss) on Disposition of Assets Increase (Decrease) in Accounts and Other Receivables Increase (Decrease) in Inventories Increase (Decrease) in Intangible Assets, Current IncreaseDecreaseInAdvancesOnInventoryPurchases Increase (Decrease) in Prepaid Expense and Other Assets Increase (Decrease) in Accounts Payable and Accrued Liabilities Increase (Decrease) in Accounts Payable, Related Parties IncreaseDecreaseInCustomerCredits Net Cash Provided by (Used in) Operating Activities, Continuing Operations Net Cash Provided by (Used in) Investing Activities, Continuing Operations Payments of Ordinary Dividends, Preferred Stock and Preference Stock Net Cash Provided by (Used in) Financing Activities, Continuing Operations Cash and Cash Equivalents, Period Increase (Decrease) Cash and Cash Equivalents, Policy [Policy Text Block] Income Tax, Policy [Policy Text Block] ChangeInFairValueOfWarrantLiabilityPolicyTextBlock Property, Plant and Equipment, Gross Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment Derivative Liability, Fair Value, Gross Liability Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value WarrantsTransactionsDomain EX-101.PRE 10 cool-20160430_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 11 R1.htm IDEA: XBRL DOCUMENT v3.4.0.3
Document And Entity Information - shares
 6 Months Ended
Apr. 30, 2016
May. 31, 2016
Document And Entity Information [Abstract]    
Entity Registrant Name MAJESCO ENTERTAINMENT CO  
Entity Central Index Key 0001076682  
Current Fiscal Year End Date --10-31  
Entity Filer Category Smaller Reporting Company  
Trading Symbol COOL  
Entity Common Stock, Shares Outstanding   15,608,875
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Apr. 30, 2016  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2016  
XML 12 R2.htm IDEA: XBRL DOCUMENT v3.4.0.3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
$ in Thousands
Apr. 30, 2016
Oct. 31, 2015
Current assets:    
Cash and cash equivalents $ 7,346 $ 17,053
Accounts receivable 415 283
Capitalized software development costs and license fees 85 179
Prepaid expenses and other current assets 178 101
Total current assets 8,024 17,616
Property and equipment, net 31 45
TOTAL ASSETS 8,055 17,661
Current liabilities:    
Accounts payable and accrued expenses 1,496 1,686
Payable to Zift 75 318
Warrant liability 344 0
Total current liabilities 1,915 2,004
Total liabilities $ 1,915 $ 2,004
Commitments and contingencies
STOCKHOLDERS' EQUITY:    
Convertible Preferred stock - 10,000,000 shares authorized, 8,413,630 and 9,025,265 shares issued and outstanding at April 30, 2016 and October 31, 2015, aggregate liquidation preference $5,561 and $5,968, respectively $ 10,407 $ 10,694
Common stock - $.001 par value; 250,000,000 shares authorized; 13,583,875 and 11,109,293 shares issued and outstanding at April 30, 2016 and October 31, 2015, respectively 14 11
Additional paid-in capital 121,003 128,488
Accumulated deficit (125,284) (123,536)
Total stockholders' equity 6,140 15,657
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 8,055 $ 17,661
XML 13 R3.htm IDEA: XBRL DOCUMENT v3.4.0.3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Apr. 30, 2016
Oct. 31, 2015
Statement of Financial Position [Abstract]    
Preferred Stock, Shares Authorized 10,000,000 10,000,000
Preferred Stock, Shares Issued 8,413,630 9,025,265
Preferred Stock, Shares Outstanding 8,413,630 9,025,265
Preferred Stock, Liquidation Preference, Value $ 5,561 $ 5,968
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 250,000,000 250,000,000
Common stock, shares issued 13,583,875 11,109,293
Common stock, shares outstanding 13,583,875 11,109,293
XML 14 R4.htm IDEA: XBRL DOCUMENT v3.4.0.3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Apr. 30, 2016
Apr. 30, 2015
Apr. 30, 2016
Apr. 30, 2015
Income Statement [Abstract]        
Net revenues $ 412 $ 1,705 $ 1,003 $ 5,176
Cost of sales        
Product costs 86 663 86 2,070
Software development costs and license fees 39 245 97 952
Total cost of sales 125 908 183 3,022
Gross profit 287 797 820 2,154
Operating costs and expenses        
Product research and development 20 29 55 55
Selling and marketing 19 170 42 610
General and administrative 1,319 1,305 2,441 3,049
Workforce reduction 0 639 0 713
Depreciation and amortization 7 10 14 50
Total operating costs and expenses 1,365 2,153 2,552 4,477
Operating loss (1,078) (1,356) (1,732) (2,323)
Other expenses (income)        
Interest and financing costs (income) (3) (1) (10) 59
Gain on extinguishment of liabilities 0 (524) 0 (1,050)
Gain on asset sales, net 0 (3) 0 (128)
Change in fair value of warrant liability 26 768 26 1,547
Loss before income taxes (1,101) (1,596) (1,748) (2,751)
Income taxes 0 2 0 3
Net loss (1,101) (1,598) (1,748) (2,754)
Special cash dividend attributable to preferred shareholders 0 0 (6,002) 0
Conversion features accreted as dividends 0 1,838 0 2,235
Net loss attributable to common stockholders $ (1,101) $ (3,436) $ (7,750) $ (4,989)
Net loss per share, basic and diluted: $ (0.10) $ (0.52) $ (0.74) $ (0.76)
Weighted average shares outstanding, basic and diluted: 11,294,900 6,610,270 10,543,254 6,568,526
XML 15 R5.htm IDEA: XBRL DOCUMENT v3.4.0.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Apr. 30, 2016
Apr. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (1,748) $ (2,754)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Change in warrant liability 26 1,547
Depreciation and amortization 14 50
Non-cash compensation expense 993 388
Provision for price protection 0 41
Amortization of capitalized software development costs and license fees 85 397
Gain on asset sales, net 0 (108)
Provision for excess inventory 0 65
Gain on extinguishment of liabilities 0 (1,050)
Offering costs expensed 21 120
Changes in operating assets and liabilities:    
Accounts receivables (132) 1,335
Inventory 0 1,193
Capitalized software development costs and license fees 9 0
Advance payments for inventory 0 57
Prepaid expenses and other current assets (77) 50
Accounts payable and accrued expenses (190) $ (1,803)
Payable to Zift (243)
Customer credits 0 $ 1,368
Advances from customers and deferred revenue 0 (14)
Net cash (used in) provided by operating activities (1,424) 882
CASH FLOWS FROM INVESTING ACTIVITIES    
Net proceeds from sale of assets 0 217
Net cash provided by investing activities 0 217
CASH FLOWS FROM FINANCING ACTIVITIES    
Special cash dividend (10,000) 0
Proceeds from stock options exercise 129 0
Net proceeds from the sale of common stock and warrants 1,406 0
Net proceeds from sale of units 0 801
Income tax withholding from stock compensation 0 (12)
Net cash (used in) provided by financing activities (8,465) 789
Net (decrease) increase in cash and cash equivalents (9,707) 1,888
Cash and cash equivalents - beginning of period 17,053 7,196
Cash and cash equivalents - end of period 7,346 9,084
SUPPLEMENTAL CASH FLOW INFORMATION    
Cash paid during the period for income taxes 0 98
Supplemental schedule of non-cash investing and financing activities:    
Warrant liability reclassified to additional paid-in capital upon exchange 0 5,312
Conversion of Series A preferred stock to common stock 147 0
Conversion of Series D preferred stock to common stock 140 0
Common stock shares and warrants issued for offering costs $ 75 $ 0
XML 16 R6.htm IDEA: XBRL DOCUMENT v3.4.0.3
PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION
 6 Months Ended
Apr. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION

The accompanying financial statements present the financial results of Majesco Entertainment Company and Majesco Europe Limited, its wholly-owned subsidiary, (together, “Majesco” or the “Company”) on a consolidated basis. Prior to the November 2014 sale of its equity investment, the Company had 50% of the voting control of GMS Entertainment Limited (“GMS”) and the right to appoint one-half of the directors of GMS. Accordingly, the Company accounted for GMS on the equity method as a corporate joint venture.

 

The Company is a provider of video game products primarily for the casual-game consumer and has published video games for interactive entertainment hardware platforms, including Nintendo’s DS, 3DS, Wii and WiiU, Sony’s PlayStation 3 and 4, or PS3 and PS4, Microsoft’s Xbox 360 and Xbox One and the personal computer, or PC. It has historically sold its products through two sales channels, retail and digital. It has sold packaged software to large retail chains, specialty retail stores, video game rental outlets and distributors and through digital distribution for platforms such as Xbox Live Arcade, PlayStation Network, or PSN, and Steam, and for mobile devices and online platforms. In 2015, the Company transferred retail distribution activities, assets and obligations to a company owned by its former chief executive officer (see Note 13).

 

The Company’s video game titles are targeted at various demographics at a range of price points. Due to the larger budget requirements for developing and marketing premium console titles for core gamers, the Company has focused on publishing more lower-cost games targeting casual-game consumers and independent game developer fans. In some instances, the Company’s titles are based on licenses of well-known properties and, in other cases, original properties. The Company enters into agreements with content providers and video game development studios for the creation of our video games.

 

The Company’s operations involve similar products and customers worldwide. These products are developed and sold domestically and internationally. The Company is centrally managed and our chief operating decision makers, the chief executive and other officers, use consolidated and other financial information supplemented by sales information by product category, major product title and platform for making operational decisions and assessing financial performance. Accordingly, it operates in a single segment.

 

NASDAQ listing. On March 3, 2016, the Company was notified by The NASDAQ Stock Market, LLC (“Nasdaq”) that it was not in compliance with Nasdaq Listing Rule 5550(a)(2) (the “Rule”) because the Company’s common stock failed to maintain a minimum closing bid price of $1.00 per share for the prior 30 consecutive business days. The notice has no immediate effect on the listing or trading of the Company’s common stock on The NASDAQ Capital Market and, at this time, the common stock will continue to trade on The NASDAQ Capital Market under the symbol “COOL”.

 

The Company has a period of 180 calendar days, or until August 30, 2016, to achieve compliance with the Rule. The Company will regain compliance with the Rule if, at any time before August 30, 2016, the closing bid price for the Company’s common stock is at least $1.00 per share for a minimum of 10 consecutive business days. In the event the Company does not regain compliance with the Rule by August 30, 2016, the Company may be eligible for an additional 180 calendar day compliance period. To qualify, the Company would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The NASDAQ Capital Market, with the exception of the bid price requirement, and would need to provide written notice of its intention to cure the bid price deficiency during the second compliance period by effecting a reverse stock split, if necessary.

 

Major customers. Microsoft, Sony, and Valve accounted for 40%, 28%, and 18%, respectively, of sales for the six months ended April 30, 2016. Sidekick and Microsoft accounted for 53% and 30%, respectively, of accounts receivable as of April 30, 2016.

 

 Concentrations.  The Company develops and distributes video game software for proprietary platforms under licenses from Nintendo, Sony and Microsoft, which must be periodically renewed. The Company’s agreements with these manufacturers also grant them certain control over the Company’s products. In addition, for the six months ended April 30, 2016 and 2015 sales of the Company’s Zumba Fitness games accounted for approximately 10% and 30% of net revenues, respectively.

 

The accompanying interim condensed consolidated financial statements of the Company are unaudited, but in the opinion of management, reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results for the interim period. Accordingly, they do not include all information and notes required by generally accepted accounting principles for complete financial statements. The Company’s financial results are impacted by the seasonality of the retail selling season and the timing of the release of new titles. The results of operations for interim periods are not necessarily indicative of results to be expected for the entire fiscal year. The balance sheet at October 31, 2015 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the year ended October 31, 2015 filed with the Securities and Exchange Commission on Form 10-K on January 29, 2016.
XML 17 R7.htm IDEA: XBRL DOCUMENT v3.4.0.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 6 Months Ended
Apr. 30, 2016
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation.  The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary located in the United Kingdom. Significant intercompany accounts and transactions have been eliminated in consolidation.

 

Revenue Recognition. The Company has recognized revenue upon the shipment of its products when: (1) title and the risks and rewards of ownership are transferred; (2) persuasive evidence of an arrangement exists; (3) there are no continuing obligations to the customer; and (4) the collection of related accounts receivable is probable. Certain products have been sold to customers with a street date (the earliest date these products may be resold by retailers). Revenue for sales of these products is not recognized prior to their street date. Some of the Company’s software products provide limited online features at no additional cost to the consumer. Generally, such features have been considered to be incidental to the Company’s overall product offerings and an inconsequential deliverable. Accordingly, the Company does not defer any revenue related to products containing these limited online features. However, in instances where online features or additional functionality is considered a substantive deliverable in addition to the software product, such characteristics will be taken into account when applying the Company’s revenue recognition policy. While the Company has historically sold its products through two sales channels, retail and digital, in July 2015, the Company transferred retail distribution activities, assets and obligations to a company owned by its former chief executive officer (see Note 13), and therefore ceased retail sales.

 

The Company generally sold its products to retailers and distributors on a no-return basis, although in certain instances, the Company provided price protection or other allowances on certain unsold products. Price protection, when granted and applicable, allows customers a partial credit against amounts they owe the Company with respect to merchandise unsold by them. Revenue was recognized, and accounts receivable was presented, net of estimates of these allowances.

 

The Company estimated potential future product price protection and other allowances related to current period product revenue. The Company analyzed historical experience, current sell through of retailer inventory of the Company’s products, current trends in the video game market, the overall economy, changes in customer demand and acceptance of the Company’s products and other related factors when evaluating the adequacy of price protection and other allowances.

 

Sales incentives or other consideration given by the Company to customers that were considered adjustments of the selling price of its products, such as rebates and product placement fees, were reflected as reductions of revenue. Sales incentives and other consideration that represent costs incurred by the Company for benefits received, such as the appearance of the Company’s products in a customer’s national circular ad, are reflected as selling and marketing expenses, in accordance with Accounting Standards Codification (“ASC”) 605-50, Customer Payments and Incentives.

 

The Company’s software products are sold as downloads of digital content for which the consumer takes possession of the digital content for a fee. Revenue from product downloads is generally recognized when the download is made available (assuming all other recognition criteria are met).

 

The Company records revenue for distribution agreements where it is acting as an agent as defined by ASC Topic 605, Revenue Recognition, Subtopic 45, Principal Agent Considerations, on a net basis. When the Company enters into license or distribution agreements that provide for multiple copies of games in exchange for guaranteed amounts, revenue is recognized in accordance with the terms of the agreements, generally upon delivery of a master copy, assuming our performance obligations are complete and all other recognition criteria are met, or as per-copy royalties are earned on sales of games.

 

Cash and cash equivalents.  Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase. At various times, the Company has deposits in excess of the Federal Deposit Insurance Corporation limit. The Company has not experienced any losses on these accounts.

 

Accounts Receivable and Accounts Payable and Accrued Expenses. The carrying amounts of accounts receivable and accounts payable and accrued expenses approximate fair value as these accounts are largely current and short term in nature.

 

Allowance for doubtful accounts. The Company recognizes an allowance for losses on accounts receivable for estimated probable losses. The allowance is based on historical experiences, current aging of accounts, and other expected future write-offs, including specific identifiable customer accounts considered at risk or uncollectible. Any related expense associated with an allowance for doubtful accounts is recognized as general and administrative expense. As of April 30, 2016, there was no allowance for doubtful accounts.

 

Capitalized Software Development Costs and License Fees. Software development costs include fees in the form of milestone payments made to independent software developers and licensors. Software development costs are capitalized once technological feasibility of a product is established and management expects such costs to be recoverable against future revenues. For products where proven game engine technology exists, this may occur early in the development cycle. Technological feasibility is evaluated on a product-by-product basis. Amounts related to software development that are not capitalized are charged immediately to product research and development costs. Commencing upon a related product’s release, capitalized costs are amortized to cost of sales based upon the higher of (i) the ratio of current revenue to total projected revenue or (ii) straight-line charges over the expected marketable life of the product.

 

Prepaid license fees represent license fees to owners for the use of their intellectual property rights in the development of the Company’s products. Minimum guaranteed royalty payments for intellectual property licenses are initially recorded as an asset (prepaid license fees) and a current liability (accrued royalties payable) at the contractual amount upon execution of the contract or when specified milestones or events occur and when no significant performance remains with the licensor. Licenses are expensed to cost of sales at the higher of (i) the contractual royalty rate based on actual sales or (ii) an effective rate based upon total projected revenue related to such license. Capitalized software development costs and prepaid license fees are classified as non-current if they relate to titles for which the Company estimates the release date to be more than one year from the balance sheet date.

 

The amortization period for capitalized software development costs and prepaid license fees is usually no longer than one year from the initial release of the product. If actual revenues or revised forecasted revenues fall below the initial forecasted revenue for a particular license, the charge to cost of sales may be larger than anticipated in any given quarter. The recoverability of capitalized software development costs and prepaid license fees is evaluated quarterly based on the expected performance of the specific products to which the costs relate. When, in management’s estimate, future cash flows will not be sufficient to recover previously capitalized costs, the Company expenses these capitalized costs to “cost of sales-software development costs and license fees,” in the period such a determination is made. These expenses may be incurred prior to a game’s release for games that have been developed. If a game is cancelled prior to completion of development and never released to market, the amount is expensed to operating costs and expenses. If the Company was required to write off licenses, due to changes in market conditions or product acceptance, its results of operations could be materially adversely affected.

 

Costs of developing online free-to-play social games, including payments to third-party developers, are expensed as research and development expenses. Revenue from these games is largely dependent on players’ future purchasing behavior in the game and currently the Company cannot reliably project that future net cash flows from developed games will exceed related development costs.

 

Prepaid license fees and milestone payments made to the Company’s third party developers are typically considered non-refundable advances against the total compensation they can earn based upon the sales performance of the products. Any additional royalty or other compensation earned beyond the milestone payments is expensed to cost of sales as incurred.

 

Property and equipment.  Property and equipment is stated at cost. Depreciation and amortization is being provided for by the straight-line method over the estimated useful lives of the assets, generally five years. Amortization of leasehold improvements is provided for over the shorter of the term of the lease or the life of the asset.

 

Income taxes.  The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the potential for realization of deferred tax assets at each quarterly balance sheet date and records a valuation allowance for assets for which realization is not more likely than not.

 

Stock Based Compensation. The Company measures all stock-based compensation to employees using a fair value method and records such expense in general and administrative expenses. Compensation expense for stock options is recognized on a straight line basis over the vesting period of the award, based on the fair value of the option on the date of grant.

 

The fair value for options issued is estimated at the date of grant using a Black-Scholes option-pricing model. The risk free rate is derived from the U.S. Treasury yield curve in effect at the time of the grant. The volatility factor is determined based on the Company’s historical stock prices.

 

 Extinguishment of Liabilities. During the six months ended April 30, 2015, the Company recognized a gain on extinguishment of liabilities of $1.1 million. The Company determined that certain accounts payable balances and claims for license fees and services would never be paid because they were no longer being pursued for payment and had passed the statute of limitations as of April 30, 2015.

 

Gain on asset sales, net. During the six months ended April 30, 2015, we recognized approximately $128,000 in net gain from the sale of certain game rights and from the sale of office furniture and equipment upon the move to a smaller office.

 

Loss Per Share. Basic loss per share of common stock is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted loss per share excludes the potential impact of common stock options, unvested shares of restricted stock and outstanding common stock purchase warrants because their effect would be anti-dilutive.

 

Commitments and Contingencies.  We are subject to claims and litigation in the ordinary course of our business. We record a liability for commitments and contingencies when the amount is both probable and reasonably estimable. We record associated legal fees as incurred. We accrued contingent liabilities for certain potential licensor and customer liabilities and claims that were transferred to Zift but may not be extinguished by such transaction.

 

Accounting for Warrants. The Company accounts for the issuance of common stock purchase warrants issued in connection with the equity offerings in accordance with the provisions of ASC 815, Derivatives and Hedging (“ASC 815”).  The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement).  The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net-cash settle the contract if an event occurs and if that event is outside the control of the Company) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). In addition, Under ASC 815, registered common stock warrants that require the issuance of registered shares upon exercise and do not expressly preclude an implied right to cash settlement are accounted for as derivative liabilities.  The Company classifies these derivative warrant liabilities on the condensed consolidated balance sheet as a current liability.

 

Change in fair value of warrant liability. The Company assessed the classification of common stock purchase warrants as of the date of each offering and determined that such instruments met the criteria for liability classification. Accordingly, the Company classified the warrants as a liability at their fair value and adjusts the instruments to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until the warrants are exercised or expired, and any change in fair value is recognized as “change in fair value of warrant liability” in the condensed consolidated statements of operations. The fair value of the warrants has been estimated using a Black-Scholes valuation model (see Note 7).

 

Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities or the disclosure of gain or loss contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Among the more significant estimates included in these financial statements are the recoverability of advance payments for capitalized software development costs and intellectual property licenses, the valuation of warrant liability, and the valuation allowances for deferred tax benefits. Actual results could differ from those estimates.

 

Recent Accounting Pronouncements.

 

In May 2014, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") creating a new Topic 606, Revenue from Contracts with Customers, which broadly establishes new standards for the recognition of certain revenue and updates related disclosure requirements. The update becomes effective for the Company on November 1, 2018. The Company is reviewing the potential impact of the statement on its financial position, results of operations, and cash flows. 

 

In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) which supersedes FASB ASC Topic 840, Leases (Topic 840) and provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The standard is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted upon issuance. When adopted, the Company does not expect this guidance to have a material impact on our financial statements.

 

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations. The purpose of ASU No. 2016-08 is to clarify the implementation of guidance on principal versus agent considerations. For public entities, the amendments in ASU No. 2016-08 are effective for interim and annual reporting periods beginning after December 15, 2017. The Company is currently assessing the impact of ASU No. 2016-08 on its condensed consolidated financial statements and related disclosures.

 

In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. Under ASU No. 2016-09, companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (“APIC”). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement and the APIC pools will be eliminated. In addition, ASU No. 2016-09 eliminates the requirement that excess tax benefits be realized before companies can recognize them. ASU No. 2016-09 also requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Furthermore, ASU No. 2016-09 will increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. An employer with a statutory income tax withholding obligation will now be allowed to withhold shares with a fair value up to the amount of taxes owed using the maximum statutory tax rate in the employee’s applicable jurisdiction(s). ASU No. 2016-09 requires a company to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on the statement of cash flows. Under current U.S. GAAP, it was not specified how these cash flows should be classified. In addition, companies will now have to elect whether to account for forfeitures on share-based payments by (1) recognizing forfeitures of awards as they occur or (2) estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as is currently required. The amendments of this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted but all of the guidance must be adopted in the same period. The Company is currently assessing the impact that ASU No. 2016-09 will have on its condensed consolidated financial statements.

 

In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customer. The new guidance is an update to ASC 606 and provides clarity on: identifying performance obligations and licensing implementation. For public companies, ASU No. 2016-10 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the impact that ASU No. 2016-10 will have on its condensed consolidated financial statements.
XML 18 R8.htm IDEA: XBRL DOCUMENT v3.4.0.3
PREPAID EXPENSES AND OTHER CURRENT ASSETS
 6 Months Ended
Apr. 30, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following (in thousands):

 

   

April 30,

2016

    

October 31,

2015

  
Prepaid insurance   $ 133     $  61  
Tax receivable     6       30  
Other     39       10  
Total prepaid expenses and other current assets   $ 178     $ 101  

  
XML 19 R9.htm IDEA: XBRL DOCUMENT v3.4.0.3
PROPERTY AND EQUIPMENT, NET
 6 Months Ended
Apr. 30, 2016
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET

Property and equipment, net, consist of the following (in thousands):

 

   

April 30,

2016

    

October 31,

2015

  
Computers and software   $ 61     $ 61  
Furniture and equipment     78       78  
Total property and equipment, gross     139       139  
Accumulated depreciation     (108 )     (94 )
Total property and equipment, net   $ 31     $ 45  

 
XML 20 R10.htm IDEA: XBRL DOCUMENT v3.4.0.3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
 6 Months Ended
Apr. 30, 2016
Payables and Accruals [Abstract]  
ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consist of the following (in thousands):

 

   

April 30,

2016

    

October 31,

2015

  
Accounts payable-trade   $ 345     $ 479  
Royalties, fees and development     678       681  
Salaries and other compensation     461       510  
Other accruals     12       16  
Total accounts payable and accrued expenses   $ 1,496     $ 1,686  

  

During the three and six months ended April 30, 2015, the Company recognized a gain on extinguishment of liabilities of $524,000 and $1.1 million, respectively. The Company determined that certain accounts payable balances and claims for license fees and services would never be paid because they were no longer being pursued for payment and had passed the statute of limitations.

 

Salaries and other compensation include accrued payroll expense, accrued incentive compensation and employer 401K plan contributions.
XML 21 R11.htm IDEA: XBRL DOCUMENT v3.4.0.3
STOCKHOLDERS' EQUITY
 6 Months Ended
Apr. 30, 2016
Equity [Abstract]  
STOCKHOLDERS' EQUITY

Convertible preferred stock as of April 30, 2016 consisted of the following (in thousands, except share amounts):

 

    Shares Authorized     Shares Issued and Outstanding     Net Carrying Value     Aggregate Liquidation Preference     Common Shares Issuable Upon Conversion  
Series A     8,830,000       8,177,334     $ 1,999     $ 5,561       8,177,334  
Series B     54,250       54,201       4,569       -       5,420,171  
Series C     26,000       25,763       2,010       -       2,576,353  
Series D     170,000       156,332       1,829       -       1,563,320  
Other authorized, unissued     919,750       -       -       -       -  
Total     10,000,000       8,413,630     $ 10,407     $ 5,561       17,737,178  

 

December Units and Series A Preferred Shares

 

On December 17, 2014, pursuant to subscription agreements (the “December Subscription Agreements”) entered into with certain accredited investors (the “December Investors”) the Company completed a private placement of $6.0 million of units (the “December Units”) at a purchase price of $0.68 per Unit, with each December Unit consisting of one share of the Company’s 0% Series A Convertible Preferred Stock (each a “Series A Preferred Share”) and a five-year warrant (each a “December Warrant”) to purchase one share of the Company’s common stock at an initial exercise price of $0.68 per share (such issuance and sale, the “December Private Placement”). The December Warrants were subsequently exchanged for shares of the Company’s 0% Series B Convertible Preferred Stock (the “Series B Preferred Shares”) and shares of the Company’s common stock (see below). The offering was made in reliance upon an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).

 

The Series A Preferred Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Series A Preferred Share, plus all accrued and unpaid dividends, if any, on such Series A Preferred Share, as of such date of determination, divided by the conversion price. The stated value of each Preferred Share is $0.68 and the initial conversion price is $0.68 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events. In addition, in the event the Company issues or sells, or is deemed to issue or sell, shares of its common stock at a per share price that is less than the conversion price then in effect, the conversion price shall be reduced to such lower price, subject to certain exceptions. Pursuant to the Certificate of Designations, Preferences and Rights of the 0% Series A Convertible Preferred Stock of Majesco Entertainment Company, the Company is prohibited from incurring debt or liens, or entering into new financing transactions without the consent of the lead investor (as defined in the December Subscription Agreements) as long as any of the Series A Preferred Shares are outstanding. The Series A Preferred Shares bear on dividends.

 

The holders of Series A Preferred Shares shall vote together with the holders of common stock on all matters on an as if converted basis, subject to certain conversion and ownership limitations, and shall not vote as a separate class. Notwithstanding the foregoing, the conversion price for purposes of calculating voting power shall in no event be lower than $0.59 per share. At no time may all or a portion of the Series A Preferred Shares be converted if the number of shares of common stock to be issued pursuant to such conversion would exceed, when aggregated with all other shares of common stock owned by the holder at such time, the number of shares of common stock which would result in such Holder beneficially owning (as determined in accordance with Section 13(d) of the 1934 Act and the rules thereunder) more than 4.99% of all of the common stock outstanding at such time; provided, however, that the holder may waive the 4.99% limitation at which time he may not own beneficially own more than 9.99% of all the common stock outstanding at such time.

 

Prior to the exchange transaction described below, the December Warrants were exercisable at any time at a price of $0.68 per share, subject to adjustment, and expired five years from the date of issuance. The holders could exercise the December Warrants for shares of common stock on a cashless basis if there was no effective registration statement or no current prospectus available for resale of the underlying shares of common stock. The December Warrants were subject to certain adjustments upon certain actions by the Company as outlined in the December Warrants, including, for twenty-four months following the initial issuance date, the issuance or sale, or deemed issuance or sale, by the Company of shares of its common stock at a per share price that is less than the exercise price then in effect.

 

The proceeds of the offering and certificates representing the Series A Preferred Shares and December Warrants underlying the December Units issued in the offering were deposited into escrow accounts. Upon the closing of the December Private Placement on December 17, 2014 (such date, the “December Closing Date”), $1.0 million of the December Escrow Amount was released to the Company and $1.0 million of December Units to the December Investors, on a pro rata basis. Effective upon the approval of the Company’s stockholders on March 30, 2015, in one or multiple tranches, the remaining $5.0 million became eligible to be released to the Company and $5.0 million of December Units became eligible to be released to the December Investors from their respective escrow accounts, if either, (i) the lead investor has approved the release, (ii) the approval of the requisite number of December Investors has been obtained, (iii) the Company has executed definitive binding documents for certain transactions, as described in the December Subscription Agreements, and such transaction(s) are to close contemporaneously with the release, following approval by the Company’s stockholders or (iv) the following conditions are present: (a) nine months has elapsed from the December Closing Date and release is approved by each of the directors appointed at closing (being the non-continuing directors); (b) no subsequent release of the December Escrow Amount has been consummated; and (c) no more than $1.0 million is released (the “December Release Conditions”). In the event that on and as of the twelve month anniversary of the December Closing Date none of the December Release Conditions have been satisfied, $5.0 million would be returned on a pro rata basis to the December Investors, without interest or deduction, and $5,000 of December Units would be returned to the Company for cancellation. On September 25, 2015, the lead investor approved the release and the escrow agent released all funds and corresponding December Units remaining in escrow. 

 

The Company received net proceeds of $801,000 for the December Units released from escrow, net of offering costs, and has accounted for each of the Series A Preferred Shares released from escrow, the December Warrants released from escrow and the Series A Preferred Shares and December Warrants remaining in escrow as freestanding instruments.

 

The Company has evaluated the guidance ASC 480-10 Distinguishing Liabilities from Equity and ASC 815-40 Contracts in an Entity’s Own Equity to determine the appropriate classification of the instruments. Prior to the exchange described below, the exercise price of the released December Warrants could be adjusted downward if the Company issued securities at a price below the initial exercise price and in certain other circumstances outside the control of the Company and therefore contain contingent settlement terms not indexed solely to the Company’s own shares of common stock. Accordingly, $603,000 of proceeds were recorded as a derivative liability representing the fair value of the December Warrants released from escrow at issuance and $120,000 of offering costs allocated to the December Warrants were expensed. As a result of the allocations, described above, the Series A Preferred Shares released were deemed to have a beneficial conversion feature at issuance amounting to $397,000, which was recorded in stockholders’ equity and immediately charged as a dividend in determining net loss attributable to common stockholders.

 

The remaining net proceeds of $318,000 were allocated to the Series A Preferred Shares net of $79,000 of offering costs. The Series A Preferred Shares do not represent an unconditional obligation to be settled in a variable number of shares of common stock, are not redeemable and do not contain fixed or indexed conversion provisions similar to debt instruments. Accordingly, the Series A Preferred Shares are considered equity hosts and recorded in stockholders’ equity.

 

Upon stockholder approval in March 2015 of full conversion provisions of the escrowed December Warrants, the Company recorded a warrant liability and a discount on the Series A Preferred Shares amounting to $3,162, based on the estimated fair value of the warrants. In addition, upon shareholder approval of the full conversion provisions of the escrowed Series A Preferred Shares, the carrying value of such Series A Preferred Shares, net of proceeds remaining in escrow was reclassified from temporary equity to paid-in capital. The Company recorded a beneficial conversion feature and a discount on the Series A Preferred Shares amounting to $1.8 million, which was immediately recognized as a deemed dividend in determining net loss attributable to common shareholders. As of April 30, 2015, the Series A Preferred Shares remaining in escrow were convertible into 7,352,939 shares of common stock based on the conversion rate at the time. The Company may record additional deemed dividends for any unamortized discounts on its Series A Preferred Shares if such shares are converted.

 

In connection with the December Private Placement, the Company also entered into separate Registration Rights Agreements with each December Investor, (as amended on January 30, 2015 and March 31, 2015, the “December Registration Rights Agreement”). The Company agreed to use its best efforts to file by March 31, 2015 a registration statement covering the resale of the shares of common stock issuable upon exercise or conversion of the Series A Preferred Shares and December Warrants and to maintain its effectiveness until all such securities have been sold or may be sold without restriction under Rule 144 of the Securities Act. In the event the Company fails to satisfy its obligations under the December Registration Rights Agreements, the Company is required to pay to the December Investors on a monthly basis an amount equal to 1% of the investors’ investment, up to a maximum of 12%. On March 31, 2015, the Company and the required holders of December Units amended the registration rights agreement to extend the filing deadline for the registration statement to June 30, 2015.

 

April 2015 Exchange and Series B Preferred Shares

 

On April 30, 2015, pursuant to warrant exchange agreements, the Company retired the 8,823,537 December Warrants issued in the December Private Placement, including those subject to the escrow conditions and those released from escrow, in exchange for shares of the Company's common stock, or shares of 0% Series B Convertible Preferred Stock (the “Series B Preferred Shares”), in lieu of shares of common stock equal, on an as-converted basis, to the number of shares of common stock that would have otherwise been received by the holder, if such issuance would result in the recipient holder exceeding certain thresholds. An aggregate of 6,302,525 shares of common stock, which amount includes the shares of common stock issuable upon conversion of the Series B Preferred Shares, were issuable in connection with the exchange agreements. The Company re-measured the fair value of the December Warrants through the date of their exchange and recorded related losses in its statement of operations. Upon exchange, the contingent-conversion features of the December Warrants expired and the carrying value of the warrant liability of $5.3 million was reclassified to paid-in capital and allocated to the Series B Preferred Shares and the common shares distributed. Such Series B Shares and shares of common stock exchanged for the December Warrants are not held in escrow and as such are not subject to the December Release Conditions.

  

The Series B Preferred Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Series B Preferred Shares, based on a conversion price of $1.40 per shares, plus all accrued and unpaid dividends, if any, on such Series B Preferred Shares, as of such date of determination, divided by the conversion price. The stated value of each Preferred Share is $140.00 and the initial conversion price is $1.40 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events. The Company is prohibited from effecting a conversion of the Series B Preferred Shares to the extent that, as a result of such conversion, such holder would beneficially own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock upon conversion of the Series B Preferred Shares, which beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%.  Subject to such beneficial ownership limitations, each holder is entitled to vote on all matters submitted to stockholders of the Company on an as converted basis, based on a conversion price of $1.40 per shares.  The Series B Preferred Shares rank junior to the Series A Preferred Shares and bear no dividends. All of the convertible preferred shares do not represent an unconditional obligation to be settled in a variable number of shares, are not redeemable and do not contain fixed or indexed conversion provisions similar to debt instruments. Accordingly, the convertible preferred shares are considered equity hosts and recorded in stockholders’ equity.

 

May 2015 Units and Series C Preferred Shares

 

On May 15, 2015 (the “May Closing Date”), the Company completed a private placement pursuant to separate subscription agreements (the “May Subscription Agreements”) with accredited investors (the “May Investors”) of $5,050 of units (the “May Units”), at a purchase price of $1.20 per Unit, resulting in net proceeds to the Company of $5.0 million.  Each May Unit consists of one share of the Company’s common stock, provided that, if the issuance of any such shares of common stock would have resulted in the recipient May Investor owning in excess of 4.99% of the Company’s issued and outstanding common stock, then such May Investor could elect to receive shares of the Company’s 0% Series C Convertible Preferred Stock (the “Series C Preferred Shares”) in lieu of common stock that are, on an as converted basis, equal to one share of common stock for every May Unit purchased, and a three-year warrant (the “May Warrants”) to purchase one share of the Company’s common stock at an exercise price of $1.40 per share (such sale and issuance, the “May Private Placement”).  An aggregate of 25,763 Series C Preferred Shares, 1,631,984 shares of common stock and 4,208,337 May Warrants were issued under the May Units. The offering was made in reliance upon an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).

 

The Series C Preferred Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Series C Preferred Shares, plus all accrued and unpaid dividends, if any, on such Series C Preferred Shares, as of such date of determination, divided by the conversion price.  The stated value of each Series C Preferred Share is $120.00 per share, and the initial conversion price is $1.20 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events.  In addition, in the event the Company issues or sells, or is deemed to issue or sell, shares of common stock at a per share price that is less than the conversion price then in effect, the conversion price shall be reduced to such lower price, subject to certain exceptions and provided that the conversion price may not be reduced to less than $0.86, unless and until such time as the Company obtains shareholder approval to allow for a lower conversion price.  The Company is prohibited from effecting a conversion of the Series C Preferred Shares to the extent that, as a result of such conversion, such May Investor would beneficially own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock upon conversion of the Series C Preferred Shares, which beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%.  Subject to the beneficial ownership limitations discussed previously, each holder is entitled to vote on all matters submitted to stockholders of the Company, and shall have the number of votes equal to the number of shares of common stock issuable upon conversion of such holder’s Series C Preferred Shares, based on a conversion price of $1.30 per share.  The Series C Preferred Shares bear no dividends and shall rank junior to the Company’s Series A Preferred Shares but senior to the Company’s Series B Preferred Shares.

 

The May Warrants are exercisable, at any time, following the date the May Warrants are issued, at a price of $1.40 per share, subject to adjustment, and expire three years from the date of issuance. The holders may, subject to certain limitations, exercise the May Warrants on a cashless basis. The Company is prohibited from effecting an exercise of any May Warrant to the extent that, as a result of any such exercise, the holder would beneficially own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock upon exercise of such May Warrant, which beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%.  

  

In connection with the sale of the May Units, the Company also entered into separate registration rights agreements (the “May Registration Rights Agreement”) with each May Investor. The Company agreed to use its best efforts to file a registration statement to register the Shares and the common stock issuable upon the conversion of the Series C Preferred Shares, within thirty days following the May Closing Date, to cause such registration statement to be declared effective within ninety days of the filing day and to maintain the effectiveness of the registration statement until all of such shares of common stock have been sold or are otherwise able to be sold pursuant to Rule 144 without restriction.  In the event the Company fails to satisfy its obligations under the Registration Rights Agreement, the Company is obligated to pay to the May Investors on a monthly basis, an amount equal to 1% of the May Investor’s investment, up to a maximum of 12%. Effective as of the original filing deadline of the registration statement, the Company obtained the requisite approval from the May Investors for the waiver of its obligations under the May Registration Rights Agreement.

 

The proceeds of the May Private Placement were deposited into an escrow account (the “May Escrow Amount”) with Signature Bank, as escrow agent (the “May Escrow Agent”) pursuant to an escrow agreement (the “May Escrow Agreement”), entered into by and between the Company, the lead investor (as defined in the May Subscription Agreements) and the May Escrow Agent, and certificates representing the May Warrants and a record of the Shares and Series C Preferred Shares, sold in the May Private Placement were deposited and recorded with the Company’s corporate secretary (the “May Securities Escrow Agent”) to be held in escrow. On the May Closing Date, twenty percent (20%) of the May Escrow Amount ($1.0 million) was released by the May Escrow Agent to the Company in exchange for the release of twenty percent (20%) of May Units by the May Securities Escrow Agent to the May Investors.  The remaining eighty percent (80%) of the May Escrow Amount ($4.0 million) was released by the May Escrow Agent to the Company and the corresponding percentage of May Units were released to the May Investors, under amendments to the May subscription agreements. On September 25, 2015, the lead investor approved the release and the May Escrow Agent and the May Securities Escrow Agent released all funds and May Units remaining in escrow.

 

The Company evaluated the guidance ASC 480-10 Distinguishing Liabilities from Equity and ASC 815-40 Contracts in an Entity’s Own Equity to determine the appropriate classification of the instruments. The Series C Preferred Shares do not represent an unconditional obligation to be settled in a variable number of shares of common stock, are not redeemable and do not contain fixed or indexed conversion provisions similar to debt instruments. Accordingly, the Series C Preferred Shares are considered equity hosts and recorded in stockholders’ equity. The May Warrants do not contain contingent settlement terms not indexed solely to the Company’s own shares of common stock and, accordingly, were also recorded in stockholders' equity. The Company allocated $2.0 million, $1.3 million and $1.8 million of net proceeds to the Series C Preferred Stock, the common stock and the warrants, respectively, based on their relative fair values. The Company incurred $25,000 of offering expenses.

 

September 2015 Exchange and Series D Preferred Shares

 

On September 25, 2015, the Company entered into Amendment Agreements (the “Amendments”) which amended the terms of the December Subscription Agreements and May Subscription Agreements. Under the Amendments, the lead investors under the subscription agreements agreed to release all funds remaining held in escrow ($5.0 million under the December 17, 2014 closing and $4.0 million under the May 15, 2015 closing) upon the appointment of certain persons as officers and directors of the Company.

 

In connection with the Amendments, the Company also entered into Exchange Agreements with the holders of the May Warrants (the “September Exchange Agreements”) and authorized the issuance of .4 shares of common stock for each share of our Common Stock into which the May Warrants was then convertible, in exchange for cancellation of the May Warrants.  The Company agreed that holders of the May Warrants could exchange their May Warrants and receive either: (1) .4 shares of common stock for each share of common stock into which the May Warrant was exercisable immediately, or (2) at the election of any holder who would, as a result of receipt of the common stock hold in excess of 4.99% of the Company’s issued and outstanding common stock, shares of 0% Series D Convertible Preferred Stock (the “Preferred D Shares”) exercisable for common stock on the same basis, but subject to 4.9% beneficial ownership blocker provisions which at the election of the holder, could be reduced to 2.49%. Under the agreement, the Company exchanged all of its May Warrants for an aggregate of 168,333 new shares of 0% Series D Convertible Preferred Stock, which upon full conversion on a fully-diluted basis, convert into 1,683,333 shares of newly issued common stock.

 

The Preferred D Shares are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Preferred D Share, plus all accrued and unpaid dividends, if any, on such Preferred D Share, as of such date of determination, divided by the conversion price. The stated value Preferred D Shares is $1,000.00 per share and the initial conversion price is $100.00 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events. The Company is prohibited from effecting a conversion of the Preferred D Shares to the extent that, as a result of such conversion, such investor would beneficially own more than 4.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of the Preferred D Shares. Upon 61 days written notice, the beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%. Except as otherwise required by law, holders of Series D Preferred Shares shall not have any voting rights. Pursuant to the Certificate of Designations, Preferences and Rights of the 0% Series D Convertible Preferred Stock, the Preferred D Shares bear no interest and shall rank senior to the Company’s other classes of capital stock. The Company accounted for the exchange as a redemption of the warrants and recorded the estimated fair value of Series D Convertible Preferred Stock issued, amounting to $1,969 with a charge to paid-in capital. As the value of the preferred shares issued was less than the value of the warrants redeemed, no excess value needed to be attributed and no portion of the redemption was deemed a dividend.

 

April 2016 Registered Common Stock and Warrant Offering

 

On April 13, 2016, the Company entered into a Securities Purchase Agreement with certain institutional investors providing for the issuance and sale by the Company of 1,500,000 shares of the Company’s common stock, par value $0.001 per share at an offering price of $1.00 per share, for net proceeds of $1.4 million after deducting placement agent fees and expenses. In addition, the Company sold to purchasers of common stock in this offering, warrants to purchase 1,125,000 shares of its common stock. The common shares and the Warrant Shares were offered by the Company pursuant to an effective shelf registration statement on Form S-3, which was initially filed with the Securities and Exchange Commission on October 22, 2015 and declared effective on December 7, 2015. The closing of the offering occurred on April 19, 2016.

 

Each Warrant is immediately exercisable for two years, but not thereafter, at an exercise price of $1.15 per share. Subject to limited exceptions, a holder of warrants will not have the right to exercise any portion of its warrants if the holder, together with its affiliates, would beneficially own in excess of 4.99% of the number of shares of our common stock outstanding immediately after giving effect to such exercise. The exercise price and number of warrants are subject to adjustment in the event of any stock dividends and splits, reverse stock split, stock dividend, recapitalization, reorganization or similar transaction. The Warrants were classified as liabilities and measured at fair value, with changes in fair value recognized in the Condensed Consolidated Statements of Operations in other expenses (income). The initial recognition of the Warrants resulted in an allocation of the net proceeds from the offering to a warrant liability of approximately $318,000, with the remainder being attributable to the common stock sold in the offering.

 

Preferred Share Conversion Activity

 

During the six months ended April 30, 2016, 599,634 shares of Convertible Preferred Stock Series A and 12,001 shares of Convertible Preferred Stock Series D were converted into 719,644 shares of common stock.

 

Common Stock

 

On December 18, 2015, the Company issued 50,000 shares of restricted stock to a director. The fair value of the stock on the grant date was $39,000 (based on a grant date stock price of $0.77 per share) and will be recognized over 1 year.

 

On January 4, 2016, the Company declared a special cash dividend of an aggregate of $10.0 million to holders of record on January 14, 2016 of its outstanding shares of: (i) common stock (ii) Series A Convertible Preferred Stock; (iii) Series B Convertible Preferred Stock; (iv) Series C Convertible Preferred Stock and (v) Series D Convertible Preferred Stock.  The holders of record of the Company’s outstanding preferred stock participated in the dividend on an “as converted” basis.

 

On January 6, 2016, certain investors exercised their options at $0.68 in exchange for the Company’s common stock for an aggregated amount of 189,938 shares.

 

On February 1, 2016, the Company issued 15,000 shares of restricted stock to a non-employee service provider and is being recognized over the one-year service period.
XML 22 R12.htm IDEA: XBRL DOCUMENT v3.4.0.3
FAIR VALUE MEASUREMENTS
 6 Months Ended
Apr. 30, 2016
Fair Value Measurements  
FAIR VALUE MEASUREMENTS

In accordance with ASC 820, Fair Value Measurements, financial instruments were measured at fair value using a three-level hierarchy which maximizes use of observable inputs and minimizes use of unobservable inputs:

 

· Level 1: Observable inputs such as quoted prices in active markets for identical instruments

 

· Level 2: Quoted prices for similar instruments that are directly or indirectly observable in the market

 

· Level 3: Significant unobservable inputs supported by little or no market activity.  Financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, for which determination of fair value requires significant judgment or estimation.

 

In connection with the April 19, 2016 common stock offering, the Company issued warrants to purchase an aggregate of 1,125,000 shares of common stock.  These warrants are exercisable at $1.15 per share and expire on April 19, 2018. These warrants were analyzed and it was determined that they require liability treatment. In addition, Under ASC 815, registered common stock warrants that require the issuance of registered shares upon exercise and do not expressly preclude an implied right to cash settlement are accounted for as derivative liabilities.  The Company classifies these derivative warrant liabilities on the condensed consolidated balance sheet as a current liability.

 

The fair value of these warrants at April 19, 2016, and April 30, 2016 was determined to be approximately $318,000 and $344,000, respectively, as calculated using Black-Scholes with the following assumptions: (1) stock price of $0.79 and $0.83, respectively; (2) a risk free rate of 0.77%; and (3) an expected volatility of 86%.

 

Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. At April 30, 2016, the warrant liability balance of $344,000 was classified as Level 3 instruments.

 

The following table sets forth the changes in the estimated fair value for our Level 3 classified derivative warrant liability (from April 19, 2016 through April 30, 2016):

 

    Warrants  
Fair value at the beginning of period   $ -  
Additions     317,836  
Change in fair value      26,186  
Fair value at end of period   $ 344,022  
           

 
XML 23 R13.htm IDEA: XBRL DOCUMENT v3.4.0.3
STOCK BASED COMPENSATION ARRANGEMENTS
 6 Months Ended
Apr. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK BASED COMPENSATION ARRANGEMENTS

Stock-based compensation expense during the three months ended April 30, 2016 and 2015 amounted to approximately $446,000 and $168,000 respectively. Stock-based compensation expense in the six months ended April 30, 2016 and 2015 amounted to approximately $993,000 and $388,000 respectively. Stock-based compensation expense is recorded in general and administrative expenses in the accompanying consolidated statements of operations.

 

A summary of the Company’s stock option activity in the six months ended April 30, 2016 is presented below:

 

    Number of shares    

Weighted-Average

Exercise Price

  
Outstanding at beginning of period     579,485     $ 2.82  
Granted     38,092     $ 1.05  
Exercised     (189,938 )   $ 0.68  
Expired     (105,933 )   $ 5.12  
Outstanding at end of period     321,706     $ 3.11  
Options exercisable at end of period     283,614     $ 3.39  
Weighted-average fair value of options granted during the period           $ 1.05  

 

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the six months ended April 30, 2016:

 

    April 30, 2016  
Risk free annual interest rate     1.7 %
Expected volatility     79 %
Expected life     5  
Assumed dividends   None  

 

The value of stock option grants is amortized over the vesting period of, generally, one to three years. As of April 30, 2016, there was approximately $19,000 of unrecognized compensation cost related to non-vested stock option awards, which is expected to be recognized over a remaining weighted-average vesting period of 0.4 year. 

 

A summary of the Company’s restricted stock activity in the six months ended April 30, 2016 is presented below:

 

    Number of shares     Weighted-Average Grant-Date Fair Value  
Unvested at beginning of period     1,384,791     $ 1.25  
Granted     65,000     $ 0.77  
Vested     (464,588 )   $ 1.23  
Forfeited     -     $ -  
Unvested at end of period     985,203     $ 1.22  

 

 The weighted-average fair value of restricted shares granted during the six months ended April 30, 2016 was $0.77. The total fair value of restricted stock vested during the six months ended April 30, 2016 was approximately $391,000.

 

The value of restricted stock grants are measured based on their fair value on the date of grant and amortized over the vesting period of, generally, six months to three years. As of April 30, 2016, there was approximately $712,000 of unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a remaining weighted-average vesting period of 0.4 years. The vesting period of 464,583 restricted shares is subject to acceleration upon the achievement of certain performance conditions related to financing or other corporate transactions.

  
XML 24 R14.htm IDEA: XBRL DOCUMENT v3.4.0.3
INCOME TAXES
 6 Months Ended
Apr. 30, 2016
Income Tax Disclosure [Abstract]  
INCOME TAXES

Due to the Company’s history of losses and uncertainty of future taxable income, a valuation allowance sufficient to fully offset net operating losses and other deferred tax assets has been established. The valuation allowance will be maintained until sufficient positive evidence exists to support a conclusion that a valuation allowance is not necessary. The Company’s effective tax rate for the six months ended April 30, 2016 and 2015 differed from the expected U.S. federal statutory rate primarily due to the change in the valuation allowance. Full conversion of the outstanding shares of Preferred Stock will likely result in limitations on the utilization of the Company’s net operating loss carryforwards under IRS section 382.
XML 25 R15.htm IDEA: XBRL DOCUMENT v3.4.0.3
LOSS PER SHARE
 6 Months Ended
Apr. 30, 2016
Earnings Per Share [Abstract]  
LOSS PER SHARE

Shares of common stock issuable under convertible preferred stock, warrants and options and shares subject to restricted stock grants were not included in the calculation of diluted earnings per common share for the three months and six months ended April 30, 2016 and 2015, as the effect of their inclusion would be anti-dilutive.

 

The table below provides total potential shares outstanding, including those that are anti-dilutive, on April 30, 2016:

 

    2016  
Shares issuable upon exercise of warrants     1,125,000  
Shares issuable upon conversion of preferred stock     17,737,178  
Shares issuable upon exercise of stock options     321,706  
Non-vested shares under restricted stock grants     985,203  

  
XML 26 R16.htm IDEA: XBRL DOCUMENT v3.4.0.3
COMMITMENTS AND CONTINGENCIES
 6 Months Ended
Apr. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

Contingencies

 

On February 26, 2015, a complaint for patent infringement was filed in the United States District Court for the Eastern District of Texas by Richard Baker, an individual residing in Australia, against Microsoft, Nintendo, the Company and a number of other game publisher defendants. The complaint alleges that the Company’s Zumba Fitness Kinect game infringed plaintiff’s patents in motion tracking technology. The plaintiff is representing himself pro se in the litigation and is seeking monetary damages in the amount of $1.3 million. The Company, in conjunction with Microsoft, is defending itself against the claim and has certain third party indemnity rights from developers for costs incurred in the litigation. In August 2015, the defendants jointly moved to transfer the case to the Western District of Washington. The motion is currently pending. The Company cannot currently estimate a potential range of loss if the claim against the Company is successful.

 

In addition to the item above, the Company at times may be a party to claims and suits in the ordinary course of business. We record a liability when it is both probable that a liability has been incurred and the amount of the loss or range of loss can be reasonably estimated. The Company has not recorded a liability with respect to the matter above. While the Company believes that it has valid defenses with respect to the legal matter pending and intends to vigorously defend the matter above, given the uncertainty surrounding litigation and our inability to assess the likelihood of a favorable or unfavorable outcome, it is possible that the resolution of the matter could have a material adverse effect on our consolidated financial position, cash flows or results of operations.

 

Commitments

 

The Company incurs rent expense under a short-term operating lease for administrative offices, which expires in fiscal 2016. Total rent expense amounted to approximately $5,000 and $14,000 for the three months ended April 30, 2016 and 2015, respectively. Total rent expense amounted to approximately $10,000 and $85,000 for the six months ended April 30, 2016 and 2015, respectively, including charges incurred upon vacating its previous administrative offices.

 

 The Company has entered into employment agreements with key executives that contain severance terms and change of control provisions.
XML 27 R17.htm IDEA: XBRL DOCUMENT v3.4.0.3
RELATED PARTIES
 6 Months Ended
Apr. 30, 2016
Related Party Transactions [Abstract]  
RELATED PARTIES

In January 2015, the Company entered into an agreement with Equity Stock Transfer for transfer agent services. A Board member of the Company is a co-founder and chief executive officer of Equity Stock Transfer. Fees under the agreement were approximately $2,000 and $5,000 in the six months ended April 30, 2016 and 2015, respectively.
XML 28 R18.htm IDEA: XBRL DOCUMENT v3.4.0.3
ASSIGNMENT OF ASSETS AND LIABILITIES
 6 Months Ended
Apr. 30, 2016
Assignment of Assets And Liabilities [Abstract]  
ASSIGNMENT OF ASSETS AND LIABILITIES

On July 31, 2015, the Company transferred to Zift Interactive LLC (“Zift”), a newly-formed subsidiary, certain rights under certain of its publishing licenses related to developing, publishing and distributing video game products through retail distribution for a term of one year. The Company transferred Zift to its former chief executive officer, Jesse Sutton. In exchange, the Company received Mr. Sutton’s resignation from the position of chief executive officer of the Company, including waiver of any severance payments and the execution of a separation agreement, together with his agreement to serve as a consultant to the Company. In addition, Zift will pay the Company a specified percent of its net revenue from retail sales on a quarterly basis.

 

In addition, the Company entered into a conveyance agreement with Zift under which it assigned to Zift certain assets used in the retail business and Zift agreed to assume and indemnify the Company for liabilities and claims related to the retail business, including customer claims for price protection and promotional allowances. The assets transferred to Zift included cash in an amount of $800,000, of which $400,000 was transferred immediately and the remaining $400,000 is payable by the Company in twelve equal consecutive monthly installments of $33,000 commencing August 1, 2015, and certain accounts receivable and inventory with an aggregate carrying value of approximately $87,000. As of April 30, 2016, the Company had a payable of approximately $76,000 to Zift.
XML 29 R19.htm IDEA: XBRL DOCUMENT v3.4.0.3
SUBSEQUENT EVENTS
 6 Months Ended
Apr. 30, 2016
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

On May 10, 2016, the Company granted 1,975,000 stock options and 1,975,000 restricted stock shares to employees and independent directors. Additionally, the Company granted 50,000 restricted stock shares to a vendor for services.

 
XML 30 R20.htm IDEA: XBRL DOCUMENT v3.4.0.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 6 Months Ended
Apr. 30, 2016
Accounting Policies [Abstract]  
Principles of Consolidation

Principles of Consolidation.  The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary located in the United Kingdom. Significant intercompany accounts and transactions have been eliminated in consolidation.
Revenue Recognition

Revenue Recognition. The Company has recognized revenue upon the shipment of its products when: (1) title and the risks and rewards of ownership are transferred; (2) persuasive evidence of an arrangement exists; (3) there are no continuing obligations to the customer; and (4) the collection of related accounts receivable is probable. Certain products have been sold to customers with a street date (the earliest date these products may be resold by retailers). Revenue for sales of these products is not recognized prior to their street date. Some of the Company’s software products provide limited online features at no additional cost to the consumer. Generally, such features have been considered to be incidental to the Company’s overall product offerings and an inconsequential deliverable. Accordingly, the Company does not defer any revenue related to products containing these limited online features. However, in instances where online features or additional functionality is considered a substantive deliverable in addition to the software product, such characteristics will be taken into account when applying the Company’s revenue recognition policy. While the Company has historically sold its products through two sales channels, retail and digital, in July 2015, the Company transferred retail distribution activities, assets and obligations to a company owned by its former chief executive officer (see Note 13), and therefore ceased retail sales.

 

The Company generally sold its products to retailers and distributors on a no-return basis, although in certain instances, the Company provided price protection or other allowances on certain unsold products. Price protection, when granted and applicable, allows customers a partial credit against amounts they owe the Company with respect to merchandise unsold by them. Revenue was recognized, and accounts receivable was presented, net of estimates of these allowances.

 

The Company estimated potential future product price protection and other allowances related to current period product revenue. The Company analyzed historical experience, current sell through of retailer inventory of the Company’s products, current trends in the video game market, the overall economy, changes in customer demand and acceptance of the Company’s products and other related factors when evaluating the adequacy of price protection and other allowances.

 

Sales incentives or other consideration given by the Company to customers that were considered adjustments of the selling price of its products, such as rebates and product placement fees, were reflected as reductions of revenue. Sales incentives and other consideration that represent costs incurred by the Company for benefits received, such as the appearance of the Company’s products in a customer’s national circular ad, are reflected as selling and marketing expenses, in accordance with Accounting Standards Codification (“ASC”) 605-50, Customer Payments and Incentives.

 

The Company’s software products are sold as downloads of digital content for which the consumer takes possession of the digital content for a fee. Revenue from product downloads is generally recognized when the download is made available (assuming all other recognition criteria are met).

 

The Company records revenue for distribution agreements where it is acting as an agent as defined by ASC Topic 605, Revenue Recognition, Subtopic 45, Principal Agent Considerations, on a net basis. When the Company enters into license or distribution agreements that provide for multiple copies of games in exchange for guaranteed amounts, revenue is recognized in accordance with the terms of the agreements, generally upon delivery of a master copy, assuming our performance obligations are complete and all other recognition criteria are met, or as per-copy royalties are earned on sales of games.
Cash and cash equivalents

Cash and cash equivalents.  Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase. At various times, the Company has deposits in excess of the Federal Deposit Insurance Corporation limit. The Company has not experienced any losses on these accounts.
Accounts and Other Receivables and Accounts Payable and Accrued Expenses

Accounts Receivable and Accounts Payable and Accrued Expenses. The carrying amounts of accounts receivable and accounts payable and accrued expenses approximate fair value as these accounts are largely current and short term in nature.

Allowance for doubtful accounts

Allowance for doubtful accounts. The Company recognizes an allowance for losses on accounts receivable for estimated probable losses. The allowance is based on historical experiences, current aging of accounts, and other expected future write-offs, including specific identifiable customer accounts considered at risk or uncollectible. Any related expense associated with an allowance for doubtful accounts is recognized as general and administrative expense. As of April 30, 2016, there was no allowance for doubtful accounts.
Capitalized Software Development Costs and License Fees

Capitalized Software Development Costs and License Fees. Software development costs include fees in the form of milestone payments made to independent software developers and licensors. Software development costs are capitalized once technological feasibility of a product is established and management expects such costs to be recoverable against future revenues. For products where proven game engine technology exists, this may occur early in the development cycle. Technological feasibility is evaluated on a product-by-product basis. Amounts related to software development that are not capitalized are charged immediately to product research and development costs. Commencing upon a related product’s release, capitalized costs are amortized to cost of sales based upon the higher of (i) the ratio of current revenue to total projected revenue or (ii) straight-line charges over the expected marketable life of the product.

 

Prepaid license fees represent license fees to owners for the use of their intellectual property rights in the development of the Company’s products. Minimum guaranteed royalty payments for intellectual property licenses are initially recorded as an asset (prepaid license fees) and a current liability (accrued royalties payable) at the contractual amount upon execution of the contract or when specified milestones or events occur and when no significant performance remains with the licensor. Licenses are expensed to cost of sales at the higher of (i) the contractual royalty rate based on actual sales or (ii) an effective rate based upon total projected revenue related to such license. Capitalized software development costs and prepaid license fees are classified as non-current if they relate to titles for which the Company estimates the release date to be more than one year from the balance sheet date.

 

The amortization period for capitalized software development costs and prepaid license fees is usually no longer than one year from the initial release of the product. If actual revenues or revised forecasted revenues fall below the initial forecasted revenue for a particular license, the charge to cost of sales may be larger than anticipated in any given quarter. The recoverability of capitalized software development costs and prepaid license fees is evaluated quarterly based on the expected performance of the specific products to which the costs relate. When, in management’s estimate, future cash flows will not be sufficient to recover previously capitalized costs, the Company expenses these capitalized costs to “cost of sales-software development costs and license fees,” in the period such a determination is made. These expenses may be incurred prior to a game’s release for games that have been developed. If a game is cancelled prior to completion of development and never released to market, the amount is expensed to operating costs and expenses. If the Company was required to write off licenses, due to changes in market conditions or product acceptance, its results of operations could be materially adversely affected.

 

Costs of developing online free-to-play social games, including payments to third-party developers, are expensed as research and development expenses. Revenue from these games is largely dependent on players’ future purchasing behavior in the game and currently the Company cannot reliably project that future net cash flows from developed games will exceed related development costs.

 

Prepaid license fees and milestone payments made to the Company’s third party developers are typically considered non-refundable advances against the total compensation they can earn based upon the sales performance of the products. Any additional royalty or other compensation earned beyond the milestone payments is expensed to cost of sales as incurred.
Property and equipment

Property and equipment.  Property and equipment is stated at cost. Depreciation and amortization is being provided for by the straight-line method over the estimated useful lives of the assets, generally five years. Amortization of leasehold improvements is provided for over the shorter of the term of the lease or the life of the asset.
Income taxes

Income taxes.  The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the potential for realization of deferred tax assets at each quarterly balance sheet date and records a valuation allowance for assets for which realization is not more likely than not.
Stock Based Compensation

Stock Based Compensation. The Company measures all stock-based compensation to employees using a fair value method and records such expense in general and administrative expenses. Compensation expense for stock options is recognized on a straight line basis over the vesting period of the award, based on the fair value of the option on the date of grant.

 

The fair value for options issued is estimated at the date of grant using a Black-Scholes option-pricing model. The risk free rate is derived from the U.S. Treasury yield curve in effect at the time of the grant. The volatility factor is determined based on the Company’s historical stock prices.
Extinguishment of Liabilities

 Extinguishment of Liabilities. During the six months ended April 30, 2015, the Company recognized a gain on extinguishment of liabilities of $1.1 million. The Company determined that certain accounts payable balances and claims for license fees and services would never be paid because they were no longer being pursued for payment and had passed the statute of limitations as of April 30, 2015.
Gain on asset sales, net

Gain on asset sales, net. During the six months ended April 30, 2015, we recognized approximately $128,000 in net gain from the sale of certain game rights and from the sale of office furniture and equipment upon the move to a smaller office.
Loss Per Share

Loss Per Share. Basic loss per share of common stock is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted loss per share excludes the potential impact of common stock options, unvested shares of restricted stock and outstanding common stock purchase warrants because their effect would be anti-dilutive.
Commitments and Contingencies

Commitments and Contingencies.  We are subject to claims and litigation in the ordinary course of our business. We record a liability for commitments and contingencies when the amount is both probable and reasonably estimable. We record associated legal fees as incurred. We accrued contingent liabilities for certain potential licensor and customer liabilities and claims that were transferred to Zift but may not be extinguished by such transaction.

Accounting for Warrants

Accounting for Warrants. The Company accounts for the issuance of common stock purchase warrants issued in connection with the equity offerings in accordance with the provisions of ASC 815, Derivatives and Hedging (“ASC 815”).  The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement).  The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net-cash settle the contract if an event occurs and if that event is outside the control of the Company) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). In addition, Under ASC 815, registered common stock warrants that require the issuance of registered shares upon exercise and do not expressly preclude an implied right to cash settlement are accounted for as derivative liabilities.  The Company classifies these derivative warrant liabilities on the condensed consolidated balance sheet as a current liability.
Change in fair value of warrant liability

Change in fair value of warrant liability. The Company assessed the classification of common stock purchase warrants as of the date of each offering and determined that such instruments met the criteria for liability classification. Accordingly, the Company classified the warrants as a liability at their fair value and adjusts the instruments to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until the warrants are exercised or expired, and any change in fair value is recognized as “change in fair value of warrant liability” in the condensed consolidated statements of operations. The fair value of the warrants has been estimated using a Black-Scholes valuation model (see Note 7).
Estimates

Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities or the disclosure of gain or loss contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Among the more significant estimates included in these financial statements are the recoverability of advance payments for capitalized software development costs and intellectual property licenses, the valuation of warrant liability, and the valuation allowances for deferred tax benefits. Actual results could differ from those estimates.
Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") creating a new Topic 606, Revenue from Contracts with Customers, which broadly establishes new standards for the recognition of certain revenue and updates related disclosure requirements. The update becomes effective for the Company on November 1, 2018. The Company is reviewing the potential impact of the statement on its financial position, results of operations, and cash flows.

 

In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) which supersedes FASB ASC Topic 840, Leases (Topic 840) and provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The standard is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted upon issuance. When adopted, the Company does not expect this guidance to have a material impact on our financial statements.

 

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations. The purpose of ASU No. 2016-08 is to clarify the implementation of guidance on principal versus agent considerations. For public entities, the amendments in ASU No. 2016-08 are effective for interim and annual reporting periods beginning after December 15, 2017. The Company is currently assessing the impact of ASU No. 2016-08 on its condensed consolidated financial statements and related disclosures.

 

In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. Under ASU No. 2016-09, companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (“APIC”). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement and the APIC pools will be eliminated. In addition, ASU No. 2016-09 eliminates the requirement that excess tax benefits be realized before companies can recognize them. ASU No. 2016-09 also requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Furthermore, ASU No. 2016-09 will increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. An employer with a statutory income tax withholding obligation will now be allowed to withhold shares with a fair value up to the amount of taxes owed using the maximum statutory tax rate in the employee’s applicable jurisdiction(s). ASU No. 2016-09 requires a company to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on the statement of cash flows. Under current U.S. GAAP, it was not specified how these cash flows should be classified. In addition, companies will now have to elect whether to account for forfeitures on share-based payments by (1) recognizing forfeitures of awards as they occur or (2) estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as is currently required. The amendments of this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted but all of the guidance must be adopted in the same period. The Company is currently assessing the impact that ASU No. 2016-09 will have on its condensed consolidated financial statements.

 

In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customer. The new guidance is an update to ASC 606 and provides clarity on: identifying performance obligations and licensing implementation. For public companies, ASU No. 2016-10 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the impact that ASU No. 2016-10 will have on its condensed consolidated financial statements.

 
XML 31 R21.htm IDEA: XBRL DOCUMENT v3.4.0.3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)
 6 Months Ended
Apr. 30, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in thousands):

 

   

April 30,

2016

    

October 31,

2015

  
Prepaid insurance   $ 133     $  61  
Tax receivable     6       30  
Other     39       10  
Total prepaid expenses and other current assets   $ 178     $ 101  

  
XML 32 R22.htm IDEA: XBRL DOCUMENT v3.4.0.3
PROPERTY AND EQUIPMENT, NET (Tables)
 6 Months Ended
Apr. 30, 2016
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

Property and equipment, net, consist of the following (in thousands):

 

   

April 30,

2016

    

October 31,

2015

  
Computers and software   $ 61     $ 61  
Furniture and equipment     78       78  
Total property and equipment, gross     139       139  
Accumulated depreciation     (108 )     (94 )
Total property and equipment, net   $ 31     $ 45  

 
XML 33 R23.htm IDEA: XBRL DOCUMENT v3.4.0.3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)
 6 Months Ended
Apr. 30, 2016
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Accrued Liabilities

Accounts payable and accrued expenses consist of the following (in thousands):

 

   

April 30,

2016

    

October 31,

2015

  
Accounts payable-trade   $ 345     $ 479  
Royalties, fees and development     678       681  
Salaries and other compensation     461       510  
Other accruals     12       16  
Total accounts payable and accrued expenses   $ 1,496     $ 1,686  

  
XML 34 R24.htm IDEA: XBRL DOCUMENT v3.4.0.3
STOCKHOLDERS' EQUITY (Tables)
 6 Months Ended
Apr. 30, 2016
Equity [Abstract]  
Changes in additional paid-in capital

Convertible preferred stock as of April 30, 2016 consisted of the following (in thousands, except share amounts):

 

    Shares Authorized     Shares Issued and Outstanding     Net Carrying Value     Aggregate Liquidation Preference     Common Shares Issuable Upon Conversion  
Series A     8,830,000       8,177,334     $ 1,999     $ 5,561       8,177,334  
Series B     54,250       54,201       4,569       -       5,420,171  
Series C     26,000       25,763       2,010       -       2,576,353  
Series D     170,000       156,332       1,829       -       1,563,320  
Other authorized, unissued     919,750       -       -       -       -  
Total     10,000,000       8,413,630     $ 10,407     $ 5,561       17,737,178  

 
XML 35 R25.htm IDEA: XBRL DOCUMENT v3.4.0.3
FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Apr. 30, 2016
Fair Value Measurements Tables  
Changes in the estimated fair value for Level 3 classified derivative warrant liability

The following table sets forth the changes in the estimated fair value for our Level 3 classified derivative warrant liability (from April 19, 2016 through April 30, 2016):

 

    Warrants  
Fair value at the beginning of period   $ -  
Additions     317,836  
Change in fair value      26,186  
Fair value at end of period   $ 344,022  
           

 
XML 36 R26.htm IDEA: XBRL DOCUMENT v3.4.0.3
STOCK BASED COMPENSATION ARRANGEMENTS (Tables)
 6 Months Ended
Apr. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Share-based Compensation, Stock Options, Activity

A summary of the Company’s stock option activity in the six months ended April 30, 2016 is presented below:

 

    Number of shares    

Weighted-Average

Exercise Price

  
Outstanding at beginning of period     579,485     $ 2.82  
Granted     38,092     $ 1.05  
Exercised     (189,938 )   $ 0.68  
Expired     (105,933 )   $ 5.12  
Outstanding at end of period     321,706     $ 3.11  
Options exercisable at end of period     283,614     $ 3.39  
Weighted-average fair value of options granted during the period           $ 1.05  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the six months ended April 30, 2016:

 

    April 30, 2016  
Risk free annual interest rate     1.7 %
Expected volatility     79 %
Expected life     5  
Assumed dividends   None  

 
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

A summary of the Company’s restricted stock activity in the six months ended April 30, 2016 is presented below:

 

    Number of shares     Weighted-Average Grant-Date Fair Value  
Unvested at beginning of period     1,384,791     $ 1.25  
Granted     65,000     $ 0.77  
Vested     (464,588 )   $ 1.23  
Forfeited     -     $ -  
Unvested at end of period     985,203     $ 1.22  

 
XML 37 R27.htm IDEA: XBRL DOCUMENT v3.4.0.3
LOSS PER SHARE (Tables)
 6 Months Ended
Apr. 30, 2016
Earnings Per Share [Abstract]  
Share-based Compensation, Performance Shares Award Outstanding Activity

The table below provides total potential shares outstanding, including those that are anti-dilutive, on April 30, 2016:

 

    2016  
Shares issuable upon exercise of warrants     1,125,000  
Shares issuable upon conversion of preferred stock     17,737,178  
Shares issuable upon exercise of stock options     321,706  
Non-vested shares under restricted stock grants     985,203  

  
XML 38 R28.htm IDEA: XBRL DOCUMENT v3.4.0.3
PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION (Details Narrative)
 6 Months Ended
Apr. 30, 2016
Apr. 30, 2015
Sales [Member] | Microsoft Corporation [Member]    
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]    
Concentration Risk, Percentage 40.00%  
Sales [Member] | Sony [Member]    
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]    
Concentration Risk, Percentage 28.00%  
Sales [Member] | Valve [Member]    
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]    
Concentration Risk, Percentage 18.00%  
Sales [Member] | Zumba Fitness Game [Member]    
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]    
Concentration Risk, Percentage 10.00% 30.00%
Accounts Receivable [Member] | Microsoft Corporation [Member]    
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]    
Concentration Risk, Percentage 30.00%  
Accounts Receivable [Member] | Sidekick [Member]    
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]    
Concentration Risk, Percentage 53.00%  
XML 39 R29.htm IDEA: XBRL DOCUMENT v3.4.0.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)
$ in Thousands
 6 Months Ended
Apr. 30, 2015
USD ($)
Accounting Policies [Abstract]  
Gain on sale of Game Rights $ 128
Recognized gain on extinguishment of liabilities $ 1,100
XML 40 R30.htm IDEA: XBRL DOCUMENT v3.4.0.3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)
$ in Thousands
Apr. 30, 2016
Oct. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid insurance $ 133 $ 61
State tax receivable 6 30
Other 39 10
Total prepaid expenses and other current assets $ 178 $ 101
XML 41 R31.htm IDEA: XBRL DOCUMENT v3.4.0.3
PROPERTY AND EQUIPMENT, NET (Details) - USD ($)
$ in Thousands
Apr. 30, 2016
Oct. 31, 2015
Property, Plant and Equipment [Abstract]    
Computers and software $ 61 $ 61
Furniture and equipment 78 78
Total property and equipment, gross 139 139
Accumulated depreciation (108) (94)
Total property and equipment, net $ 31 $ 45
XML 42 R32.htm IDEA: XBRL DOCUMENT v3.4.0.3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)
$ in Thousands
Apr. 30, 2016
Oct. 31, 2015
Payables and Accruals [Abstract]    
Accounts payable-trade $ 345 $ 479
Royalties, fees and development 678 681
Salaries and other compensation 461 510
Other accruals 12 16
Total accounts payable and accrued expenses $ 1,496 $ 1,686
XML 43 R33.htm IDEA: XBRL DOCUMENT v3.4.0.3
STOCKHOLDERS' EQUITY (Details) - USD ($)
$ in Thousands
Apr. 30, 2016
Oct. 31, 2015
Preferred Stock, Shares Authorized 10,000,000 10,000,000
Preferred Stock, Shares Issued and Outstanding 8,413,630 9,025,265
Preferred Stock, Value, Issued $ 10,407 $ 10,694
Preferred Stock, Liquidation Preference, Value $ 5,561 $ 5,968
Common Shares Issuable Upon Conversion 17,737,178  
Series A Preferred Stock [Member]    
Preferred Stock, Shares Authorized 8,830,000  
Preferred Stock, Shares Issued and Outstanding 8,177,334  
Preferred Stock, Value, Issued $ 1,999  
Preferred Stock, Liquidation Preference, Value $ 5,561  
Common Shares Issuable Upon Conversion 8,177,334  
Series B Preferred Stock [Member]    
Preferred Stock, Shares Authorized 54,250  
Preferred Stock, Shares Issued and Outstanding 54,201  
Preferred Stock, Value, Issued $ 4,569  
Preferred Stock, Liquidation Preference, Value $ 0  
Common Shares Issuable Upon Conversion 5,420,171  
Series C Preferred Stock [Member]    
Preferred Stock, Shares Authorized 26,000  
Preferred Stock, Shares Issued and Outstanding 25,763  
Preferred Stock, Value, Issued $ 2,010  
Preferred Stock, Liquidation Preference, Value $ 0  
Common Shares Issuable Upon Conversion 2,576,353  
Series D Preferred Stock [Member]    
Preferred Stock, Shares Authorized 170,000  
Preferred Stock, Shares Issued and Outstanding 156,332  
Preferred Stock, Value, Issued $ 1,829  
Preferred Stock, Liquidation Preference, Value $ 0  
Common Shares Issuable Upon Conversion 1,563,320  
Other authorized, unissued [Member]    
Preferred Stock, Shares Authorized 919,750  
Preferred Stock, Shares Issued and Outstanding 0  
Preferred Stock, Value, Issued $ 0  
Preferred Stock, Liquidation Preference, Value $ 0  
Common Shares Issuable Upon Conversion 0  
XML 44 R34.htm IDEA: XBRL DOCUMENT v3.4.0.3
STOCKHOLDERS' EQUITY (Details Narrative) - shares
 6 Months Ended
Apr. 30, 2016
Apr. 30, 2015
Class of Stock [Line Items]    
Retired Warrants   8,823,537
Series A Convertible Preferred Stock [Member]    
Class of Stock [Line Items]    
Preferred stock converted into common stock 599,634  
Series D Convertible Preferred Stock [Member]    
Class of Stock [Line Items]    
Preferred stock converted into common stock 12,001  
Common Stock [Member]    
Class of Stock [Line Items]    
Stock Issued During Period, Shares, Conversion of Convertible Securities 719,644  
XML 45 R35.htm IDEA: XBRL DOCUMENT v3.4.0.3
FAIR VALUE MEASUREMENTS (Details)
 6 Months Ended
Apr. 30, 2016
USD ($)
Fair Value Measurements Details  
Fair value at the beginning of period $ 0
Additions 317,836
Change in fair value 26,186
Fair value at end of period $ 344,022
XML 46 R36.htm IDEA: XBRL DOCUMENT v3.4.0.3
STOCK BASED COMPENSATION ARRANGEMENTS (Details)
 6 Months Ended
Apr. 30, 2016
$ / shares
shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Outstanding at beginning of period - Number Of Shares | shares 579,485
Granted - Number Of Shares | shares 38,092
Exercised - Number Of Shares | shares (189,938)
Expired - Number Of Shares | shares (105,933)
Outstanding at end of period - Number Of Shares | shares 321,706
Options exercisable at year-end - Number Of Shares | shares 283,614
Outstanding at beginning of year -Weighted Average Exercise Price (in dollars per share) $ 2.82
Granted - Weighted Average Exercise Price (in dollars per share) 1.05
Exercised - Weighted Average Exercise Price (in dollars per share) .68
Expired - Weighted Average Exercise Price (in dollars per share) 5.12
Outstanding at end of year - Weighted Average Exercise Price (in dollars per share) 3.11
Options exercisable at year-end - Weighted Average Exercise Price (in dollars per share) 3.39
Weighted-average fair value of options granted during the year - Weighted Average Exercise Price (in dollars Per share) $ 1.05
XML 47 R37.htm IDEA: XBRL DOCUMENT v3.4.0.3
STOCK BASED COMPENSATION ARRANGEMENTS (Details 1)
 6 Months Ended
Apr. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Risk free annual interest rate 1.70%
Expected volatility 79.00%
Expected life 5 years
Assumed dividends 0.00%
XML 48 R38.htm IDEA: XBRL DOCUMENT v3.4.0.3
STOCK BASED COMPENSATION ARRANGEMENTS (Details 2)
 6 Months Ended
Apr. 30, 2016
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number Of Shares Granted 985,203
Restricted Stock [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unvested at beginning of period 1,384,791
Number Of Shares Granted 65,000
Number Of Shares Vested (464,588)
Number Of Shares Forfeited 0
Unvested at end of period 985,203
Weighted-Average Grant-Date Fair Value Unvested at beginning of period | $ / shares $ 1.25
Weighted-Average Grant-Date Fair Value Granted | $ / shares .77
Weighted-Average Grant-Date Fair Value Vested | $ / shares 1.23
Weighted-Average Grant-Date Fair Value Forfeited | $ / shares 0.00
Weighted-Average Grant-Date Fair Value Unvested at end of period | $ / shares $ 1.22
XML 49 R39.htm IDEA: XBRL DOCUMENT v3.4.0.3
STOCK BASED COMPENSATION ARRANGEMENTS (Details Narrative) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Apr. 30, 2016
Apr. 30, 2015
Apr. 30, 2016
Apr. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based Compensation, Total $ 446 $ 168 $ 993 $ 388
Unrecognized compensation cost 19   19  
Restricted Stock [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation cost $ 712   $ 712  
Weighted-Average Grant-Date Fair Value Granted     $ .77  
Fair value of restricted stock vested     $ 391  
XML 50 R40.htm IDEA: XBRL DOCUMENT v3.4.0.3
LOSS PER SHARE (Details) - shares
 6 Months Ended
Apr. 30, 2016
Oct. 31, 2015
Earnings Per Share [Abstract]    
Shares issuable upon exercise of warrants 1,125,000  
Shares issuable upon conversion of preferred stock 17,737,178  
Shares issuable upon exercise of stock options 321,706 579,485
Non-vested shares under restricted stock grants 985,203  
XML 51 R41.htm IDEA: XBRL DOCUMENT v3.4.0.3
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Apr. 30, 2016
Apr. 30, 2015
Apr. 30, 2016
Apr. 30, 2015
Commitments and Contingencies Disclosure [Abstract]        
Operating Leases, Rent Expense $ 5 $ 14 $ 10 $ 85
XML 52 R42.htm IDEA: XBRL DOCUMENT v3.4.0.3
RELATED PARTIES (Details Narrative) - USD ($)
$ in Thousands
 6 Months Ended
Apr. 30, 2016
Apr. 30, 2015
Transfer Agent [Member]    
Related Party Transaction [Line Items]    
Related Party Transaction Strategic Consulting Services Fee From Transaction With Related Party Monthly $ 2 $ 5
XML 53 R43.htm IDEA: XBRL DOCUMENT v3.4.0.3
ASSIGNMENT OF ASSETS AND LIABILITIES (Details Narrative)
$ in Thousands
Apr. 30, 2016
USD ($)
Assignment of Assets And Liabilities [Abstract]  
Payable $ 76
EXCEL 54 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx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end XML 55 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 56 report.css IDEA: XBRL DOCUMENT /* Updated 2009-11-04 */ /* v2.2.0.24 */ /* DefRef Styles */ ..report table.authRefData{ background-color: #def; border: 2px solid #2F4497; font-size: 1em; position: absolute; } ..report table.authRefData a { display: block; font-weight: bold; } ..report table.authRefData p { margin-top: 0px; } ..report table.authRefData .hide { background-color: #2F4497; padding: 1px 3px 0px 0px; text-align: right; } ..report table.authRefData .hide a:hover { background-color: #2F4497; } ..report table.authRefData .body { height: 150px; overflow: auto; width: 400px; } ..report table.authRefData table{ font-size: 1em; } /* Report Styles */ ..pl a, .pl a:visited { color: black; text-decoration: none; } /* table */ ..report { background-color: white; border: 2px solid #acf; clear: both; color: black; font: normal 8pt Helvetica, Arial, san-serif; margin-bottom: 2em; } ..report hr { border: 1px solid #acf; } /* Top labels */ ..report th { background-color: #acf; color: black; font-weight: bold; text-align: center; } ..report th.void { background-color: transparent; color: #000000; font: bold 10pt Helvetica, Arial, san-serif; text-align: left; } ..report .pl { text-align: left; vertical-align: top; white-space: normal; width: 200px; white-space: normal; /* word-wrap: break-word; */ } ..report td.pl a.a { cursor: pointer; display: block; width: 200px; overflow: hidden; } ..report td.pl div.a { width: 200px; } ..report td.pl a:hover { background-color: #ffc; } /* Header rows... */ ..report tr.rh { background-color: #acf; color: black; font-weight: bold; } /* Calendars... */ ..report .rc { background-color: #f0f0f0; } /* Even rows... */ ..report .re, .report .reu { background-color: #def; } ..report .reu td { border-bottom: 1px solid black; } /* Odd rows... */ ..report .ro, .report .rou { background-color: white; } ..report .rou td { border-bottom: 1px solid black; } ..report .rou table td, .report .reu table td { border-bottom: 0px solid black; } /* styles for footnote marker */ ..report .fn { white-space: nowrap; } /* styles for numeric types */ ..report .num, .report .nump { text-align: right; white-space: nowrap; } ..report .nump { padding-left: 2em; } ..report .nump { padding: 0px 0.4em 0px 2em; } /* styles for text types */ ..report .text { text-align: left; white-space: normal; } ..report .text .big { margin-bottom: 1em; width: 17em; } ..report .text .more { display: none; } ..report .text .note { font-style: italic; font-weight: bold; } ..report .text .small { width: 10em; } ..report sup { font-style: italic; } ..report .outerFootnotes { font-size: 1em; } XML 58 FilingSummary.xml IDEA: XBRL DOCUMENT 3.4.0.3 html 29 183 1 false 17 0 false 4 false false R1.htm 00000001 - Document - Document And Entity Information Sheet http://majescoentertainment.com/role/DocumentAndEntityInformation Document And Entity Information Cover 1 false false R2.htm 00000002 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) Sheet http://majescoentertainment.com/role/CondensedConsolidatedBalanceSheets CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) Statements 2 false false R3.htm 00000003 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) Sheet http://majescoentertainment.com/role/CondensedConsolidatedBalanceSheetsParenthetical CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) Statements 3 false false R4.htm 00000004 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Sheet http://majescoentertainment.com/role/CondensedConsolidatedStatementsOfOperations CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Statements 4 false false R5.htm 00000005 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Sheet http://majescoentertainment.com/role/CondensedConsolidatedStatementsOfCashFlows CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Statements 5 false false R6.htm 00000006 - Disclosure - PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION Sheet http://majescoentertainment.com/role/PrincipalBusinessActivityAndBasisOfPresentation PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION Notes 6 false false R7.htm 00000007 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Sheet http://majescoentertainment.com/role/SummaryOfSignificantAccountingPolicies SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Notes 7 false false R8.htm 00000008 - Disclosure - PREPAID EXPENSES AND OTHER CURRENT ASSETS Sheet http://majescoentertainment.com/role/PrepaidExpensesAndOtherCurrentAssets PREPAID EXPENSES AND OTHER CURRENT ASSETS Notes 8 false false R9.htm 00000009 - Disclosure - PROPERTY AND EQUIPMENT, NET Sheet http://majescoentertainment.com/role/PropertyAndEquipmentNet PROPERTY AND EQUIPMENT, NET Notes 9 false false R10.htm 00000010 - Disclosure - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Sheet http://majescoentertainment.com/role/AccountsPayableAndAccruedExpenses ACCOUNTS PAYABLE AND ACCRUED EXPENSES Notes 10 false false R11.htm 00000011 - Disclosure - STOCKHOLDERS' EQUITY Sheet http://majescoentertainment.com/role/StockholdersEquity STOCKHOLDERS' EQUITY Notes 11 false false R12.htm 00000012 - Disclosure - FAIR VALUE MEASUREMENTS Sheet http://majescoentertainment.com/role/FairValueMeasurements FAIR VALUE MEASUREMENTS Notes 12 false false R13.htm 00000013 - Disclosure - STOCK BASED COMPENSATION ARRANGEMENTS Sheet http://majescoentertainment.com/role/StockBasedCompensationArrangements STOCK BASED COMPENSATION ARRANGEMENTS Notes 13 false false R14.htm 00000014 - Disclosure - INCOME TAXES Sheet http://majescoentertainment.com/role/IncomeTaxes INCOME TAXES Notes 14 false false R15.htm 00000015 - Disclosure - LOSS PER SHARE Sheet http://majescoentertainment.com/role/LossPerShare LOSS PER SHARE Notes 15 false false R16.htm 00000016 - Disclosure - COMMITMENTS AND CONTINGENCIES Sheet http://majescoentertainment.com/role/CommitmentsAndContingencies COMMITMENTS AND CONTINGENCIES Notes 16 false false R17.htm 00000017 - Disclosure - RELATED PARTIES Sheet http://majescoentertainment.com/role/RelatedParties RELATED PARTIES Notes 17 false false R18.htm 00000018 - Disclosure - ASSIGNMENT OF ASSETS AND LIABILITIES Sheet http://majescoentertainment.com/role/AssignmentOfAssetsAndLiabilities ASSIGNMENT OF ASSETS AND LIABILITIES Notes 18 false false R19.htm 00000019 - Disclosure - SUBSEQUENT EVENTS Sheet http://majescoentertainment.com/role/SubsequentEvents SUBSEQUENT EVENTS Notes 19 false false R20.htm 00000020 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) Sheet http://majescoentertainment.com/role/SummaryOfSignificantAccountingPoliciesPolicies SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) Policies 20 false false R21.htm 00000021 - Disclosure - PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) Sheet http://majescoentertainment.com/role/PrepaidExpensesAndOtherCurrentAssetsTables PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) Tables http://majescoentertainment.com/role/PrepaidExpensesAndOtherCurrentAssets 21 false false R22.htm 00000022 - Disclosure - PROPERTY AND EQUIPMENT, NET (Tables) Sheet http://majescoentertainment.com/role/PropertyAndEquipmentNetTables PROPERTY AND EQUIPMENT, NET (Tables) Tables http://majescoentertainment.com/role/PropertyAndEquipmentNet 22 false false R23.htm 00000023 - Disclosure - ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) Sheet http://majescoentertainment.com/role/AccountsPayableAndAccruedExpensesTables ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) Tables http://majescoentertainment.com/role/AccountsPayableAndAccruedExpenses 23 false false R24.htm 00000024 - Disclosure - STOCKHOLDERS' EQUITY (Tables) Sheet http://majescoentertainment.com/role/StockholdersEquityTables STOCKHOLDERS' EQUITY (Tables) Tables http://majescoentertainment.com/role/StockholdersEquity 24 false false R25.htm 00000025 - Disclosure - FAIR VALUE MEASUREMENTS (Tables) Sheet http://majescoentertainment.com/role/FairValueMeasurementsTables FAIR VALUE MEASUREMENTS (Tables) Tables http://majescoentertainment.com/role/FairValueMeasurements 25 false false R26.htm 00000026 - Disclosure - STOCK BASED COMPENSATION ARRANGEMENTS (Tables) Sheet http://majescoentertainment.com/role/StockBasedCompensationArrangementsTables STOCK BASED COMPENSATION ARRANGEMENTS (Tables) Tables http://majescoentertainment.com/role/StockBasedCompensationArrangements 26 false false R27.htm 00000027 - Disclosure - LOSS PER SHARE (Tables) Sheet http://majescoentertainment.com/role/LossPerShareTables LOSS PER SHARE (Tables) Tables http://majescoentertainment.com/role/LossPerShare 27 false false R28.htm 00000028 - Disclosure - PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION (Details Narrative) Sheet http://majescoentertainment.com/role/PrincipalBusinessActivityAndBasisOfPresentationDetailsTextual PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION (Details Narrative) Details http://majescoentertainment.com/role/PrincipalBusinessActivityAndBasisOfPresentation 28 false false R29.htm 00000029 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) Sheet http://majescoentertainment.com/role/SummaryOfSignificantAccountingPoliciesDetailsTextual SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) Details http://majescoentertainment.com/role/SummaryOfSignificantAccountingPoliciesPolicies 29 false false R30.htm 00000030 - Disclosure - PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) Sheet http://majescoentertainment.com/role/PrepaidExpensesAndOtherCurrentAssetsDetails PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) Details http://majescoentertainment.com/role/PrepaidExpensesAndOtherCurrentAssetsTables 30 false false R31.htm 00000031 - Disclosure - PROPERTY AND EQUIPMENT, NET (Details) Sheet http://majescoentertainment.com/role/PropertyAndEquipmentNetDetails PROPERTY AND EQUIPMENT, NET (Details) Details http://majescoentertainment.com/role/PropertyAndEquipmentNetTables 31 false false R32.htm 00000032 - Disclosure - ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) Sheet http://majescoentertainment.com/role/AccountsPayableAndAccruedExpensesDetails ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) Details http://majescoentertainment.com/role/AccountsPayableAndAccruedExpensesTables 32 false false R33.htm 00000033 - Disclosure - STOCKHOLDERS' EQUITY (Details) Sheet http://majescoentertainment.com/role/StockholdersEquityDetails STOCKHOLDERS' EQUITY (Details) Details http://majescoentertainment.com/role/StockholdersEquityTables 33 false false R34.htm 00000034 - Disclosure - STOCKHOLDERS' EQUITY (Details Narrative) Sheet http://majescoentertainment.com/role/StockholdersEquityDetailsTextual STOCKHOLDERS' EQUITY (Details Narrative) Details http://majescoentertainment.com/role/StockholdersEquityTables 34 false false R35.htm 00000035 - Disclosure - FAIR VALUE MEASUREMENTS (Details) Sheet http://majescoentertainment.com/role/FairValueMeasurementsDetails FAIR VALUE MEASUREMENTS (Details) Details http://majescoentertainment.com/role/FairValueMeasurementsTables 35 false false R36.htm 00000036 - Disclosure - STOCK BASED COMPENSATION ARRANGEMENTS (Details) Sheet http://majescoentertainment.com/role/StockBasedCompensationArrangementsDetails STOCK BASED COMPENSATION ARRANGEMENTS (Details) Details http://majescoentertainment.com/role/StockBasedCompensationArrangementsTables 36 false false R37.htm 00000037 - Disclosure - STOCK BASED COMPENSATION ARRANGEMENTS (Details 1) Sheet http://majescoentertainment.com/role/StockBasedCompensationArrangementsDetails1 STOCK BASED COMPENSATION ARRANGEMENTS (Details 1) Details http://majescoentertainment.com/role/StockBasedCompensationArrangementsTables 37 false false R38.htm 00000038 - Disclosure - STOCK BASED COMPENSATION ARRANGEMENTS (Details 2) Sheet http://majescoentertainment.com/role/StockBasedCompensationArrangementsDetails2 STOCK BASED COMPENSATION ARRANGEMENTS (Details 2) Details http://majescoentertainment.com/role/StockBasedCompensationArrangementsTables 38 false false R39.htm 00000039 - Disclosure - STOCK BASED COMPENSATION ARRANGEMENTS (Details Narrative) Sheet http://majescoentertainment.com/role/StockBasedCompensationArrangementsDetailsTextual STOCK BASED COMPENSATION ARRANGEMENTS (Details Narrative) Details http://majescoentertainment.com/role/StockBasedCompensationArrangementsTables 39 false false R40.htm 00000040 - Disclosure - LOSS PER SHARE (Details) Sheet http://majescoentertainment.com/role/LossPerShareDetails LOSS PER SHARE (Details) Details http://majescoentertainment.com/role/LossPerShareTables 40 false false R41.htm 00000041 - Disclosure - COMMITMENTS AND CONTINGENCIES (Details Narrative) Sheet http://majescoentertainment.com/role/CommitmentsAndContingenciesDetailsTextual COMMITMENTS AND CONTINGENCIES (Details Narrative) Details http://majescoentertainment.com/role/CommitmentsAndContingencies 41 false false R42.htm 00000042 - Disclosure - RELATED PARTIES (Details Narrative) Sheet http://majescoentertainment.com/role/RelatedPartiesDetailsTextual RELATED PARTIES (Details Narrative) Details http://majescoentertainment.com/role/RelatedParties 42 false false R43.htm 00000043 - Disclosure - ASSIGNMENT OF ASSETS AND LIABILITIES (Details Narrative) Sheet http://majescoentertainment.com/role/AssignmentOfAssetsAndLiabilitiesDetailsTextual ASSIGNMENT OF ASSETS AND LIABILITIES (Details Narrative) Details http://majescoentertainment.com/role/AssignmentOfAssetsAndLiabilities 43 false false All Reports Book All Reports cool-20160430.xml cool-20160430.xsd cool-20160430_cal.xml cool-20160430_def.xml cool-20160430_lab.xml cool-20160430_pre.xml true true ZIP 60 0001415889-16-006146-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0001415889-16-006146-xbrl.zip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end