10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

  Washington, D.C. 20549

Form 10-Q/A

Amendment No. 1

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number 001-34437

KIT digital, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	11-3447894
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)
26 West 17th Street, 2nd Floor, New York, New York	10011
(Address of Principal Executive Offices)	(Zip Code)

+1 (646) 553-4845

(Registrant’s Telephone Number, Including Area Code)

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 o

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 (§ 232.405 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 o

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 definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated Filer o	Accelerated filer x
Non-accelerated filer o	Smaller reporting company o
(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 o No x

As of August 13, 2012, there were 57,097,255 shares of the issuer’s common stock outstanding.

EXPLANATORY NOTE

The sole purpose of this amendment to our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, originally filed with the Securities and Exchange Commission on August 14, 2012 (the “Form 10-Q”), is to furnish Exhibit 101 to the Form 10-Q, which contains the XBRL (eXtensible Business Reporting Language) Interactive Data File for the consolidated financial statements and related notes included in Part I, Item 1 of the Form 10-Q. As permitted by Rule 405 of Regulation S-T, Exhibit 101 is required to be furnished by amendment within 30 days of the original filing date of the Form 10-Q.

Other than the aforementioned, no other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

ITEM 6. EXHIBITS.

Exhibit No.		Description
31.1	*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	*	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	*	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	**	XBRL Instance Document
101.SCH	**	XBRL Taxonomy Extension Schema
101.CAL	**	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	**	XBRL Taxonomy Extension Definition Linkbase
101.LAB	**	XBRL Taxonomy Extension Label Linkbase
101.PRE	**	XBRL Taxonomy Extension Presentation Linkbase

* Incorporated by reference to our Form 10-Q filed with the SEC on August 14, 2012.

 **Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

2

SIGNATURES

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.

	KIT DIGITAL, INC.
Dated:  September 10, 2012	By:	/s/ K. Peter Heiland
		K. Peter Heiland
		Chief Executive Officer (principal executive officer)

Dated:  September 10, 2012	By:	/s/ Fabrice Hamaide
		Fabrice Hamaide
		Chief Financial Officer (principal financial and accounting officer)

3

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Secured Notes Payable (Tables)

6 Months Ended

Jun. 30, 2012

Secured Notes Payable

Secured Notes Payable

	June 30, 2012			December 31, 2011
April 2010 secured note payable for $5,000, net of discount of $55 and $84, respectively	$	2,500		$	3,388
June 2010 secured note payable for $1,000, net of discount of $9 and $13, respectively		565			740
May 2011 secured note payable for $15,000, net of discount of $683 and $854, respectively		12,321			14,146
		15,386			18,274
Less: current portion		(7,298	)		(6,406	)
Secured notes payable, net of current	$	8,088		$	11,868

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Concentration of Credit Risk - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jun. 30, 2011 Customer	Jun. 30, 2012	Dec. 31, 2011
Concentration Risk [Line Items]
Cash and cash equivalents, held in foreign currencies		$ 4,869	$ 9,329
Amount of cash in excess of FDIC insured amounts		$ 29,785	$ 43,366
Number of customer with more than ten percent of revenue	1
Total Revenue
Concentration Risk [Line Items]
Concentration risk percentage	11.00%

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Nature of Business and Nature of Presentation - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2012 Location
Nature Of Business [Line Items]
Number of offices located globally	20

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Components of Derivative Liabilities (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	6 Months Ended		12 Months Ended		1 Months Ended		6 Months Ended
	Jun. 30, 2012 May 2008 Warrant		Dec. 31, 2011 May 2008 Warrant		May 17, 2012 May 2012 Warrant		Jun. 30, 2012 May 2012 Warrant
Derivative [Line Items]
Fair value of warrants with anti-dilution provisions	$ (604)		$ (557)		$ (14,333)		$ (17,273)
Trading market values	$ 4.29	[1]	$ 8.45	[1]	$ 3.50	[1]	$ 4.29	[1]
Term (years)	10 months 10 days	[2]	1 year 4 months 6 days	[2]	5 years 6 months	[2]	5 years 4 months 17 days	[2]
Volatility	90.00%	[1]	57.00%	[1]	90.00%	[1]	90.00%	[1]
Risk-free rate	0.27%	[3]	0.25%	[3]	0.78%	[3]	0.79%	[3]
Effective Exercise price	$ 4.17	[2]	$ 7.00	[2]	$ 5.00	[2]	$ 5.00	[2]

[1] Level 1 inputs are quoted prices in active markets for identical assets and liabilities, or derived there from. Our trading market values and the volatilities that are calculated thereupon are level 1 inputs.

[2] Level 3 inputs are unobservable inputs. Inputs for which any parts are level 3 inputs are classified as level 3 in their entirety. The remaining term used equals the remaining contractual term as our best estimate of the expected term and the effective exercise price which is based on the stated exercise price adjusted for anti-dilution provisions.

[3] Level 2 inputs are inputs other than quoted prices that are observable. We use the current published yields for zero-coupon US Treasury Securities, with terms nearest the remaining term of the warrants for our risk free rate.

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Inventory - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Schedule of Inventory [Line Items]
Reserve for excess and obsolete Inventory	$ 144	$ 146

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Fair Value of Option Grant using Black-Scholes Model with Weighted-Average Assumptions (Detail)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)	3 years 11 months 16 days	4 years
Risk-free interest rate	0.61%	1.52%
Volatility	102.77%	79.40%
Dividend yield	0.00%	0.00%

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2012

Revenue and assets by major geographical location

The following table provides revenue and assets by major geographical location.

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2012		2011		2012		2011
Revenue:
EMEA	$	29,235	$	27,124	$	59,999	$	40,055
AsiaPac		8,746		8,579		17,659		17,986
Americas		13,168		9,249		29,609		17,698
Total revenue	$	51,149	$	44,952	$	107,267	$	75,739

	June 30,		December 31,
	2012		2011
Assets:
EMEA	$	177,215	$	176,929
AsiaPac		28,449		10,344
Americas		65,027		122,989
Corporate		86,372		162,919
Total assets	$	357,063	$	473,181

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Discontinued Operations

6 Months Ended

Jun. 30, 2012

Discontinued Operations

(25) Discontinued Operations

During the second quarter of 2012, following the guidance established under “ASC 360, Impairment and Disposal of Long-Lived Assets”, the Company committed to a plan to sell its Content Solutions Businesses which includes Digital Media Productions and its Sezmi business.

Digital Media Production Acquisition

On October 3, 2011, we acquired Digital Media Production a.s. (“DMP”), a Czech company with its principal office in Prague. A former competitor of Brickbox, DMP is engaged in multimedia video production with a focus on enterprise customers. We acquired DMP in exchange for $2,750 cash and 42,500 shares of our common stock valued at a price of $7.53 for a total of $320. The consideration also includes contingent consideration of $4,284 based upon meeting revenue and profit targets for the periods ending December 31, 2011, December 31, 2012 and December 31, 2013. We have allocated the aggregate cost of the acquisition to DMP’s net tangible and identifiable intangible assets based on their estimated fair values. The excess of the aggregate cost of the acquisition over the net estimated fair value of the tangible and identifiable intangible assets and liabilities assumed was recorded as goodwill.

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.

Current assets	$	971
Property and equipment		1
Intangible assets - customer list		500
Goodwill		6,289
Total assets acquired		7,761
Current liabilities		(265	)
Deferred tax liability		(95	)
Deferred revenue - long term		(41	)
Other long-term liabilities		(6	)
Total liabilities		(407	)
Net assets acquired	$	7,354

During the second quarter of 2012, the Company decided to divest itself of the Content Solutions Businesses which include DMP, and therefore it has been recorded as discontinued operations. The Company has provided below the details of the components of the assets and liabilities held for sale as of December 31, 2011 for the Content Solutions Business. On June 26, 2012, the Company completed a sale of its Content Solutions Businesses to Netherlands-based Content Solutions International NV for $1,000 in cash and up to $18.8 million in earn-outs. Therefore, during the second quarter of 2012, the Company recorded a loss from disposal of approximately $15,462 and has provided a breakout of the loss from discontinued operations for the Content Solutions Businesses for the three and six months ended June 30, 2012 and 2011.

Sezmi Acquisition

On December 30, 2011, we acquired substantially all the assets and assumed certain liabilities of Sezmi Corporation (“Sezmi”), a Delaware corporation, pursuant to an Asset Purchase Agreement dated as of December 30, 2011. Headquartered in Belmont, CA, Sezmi is a leading global provider of broadband-broadcast hybrid TV solutions. Sezmi employs a cloud-based software-as-a-service model and its target customers are service operators, such as telecommunication companies and Internet service providers, as well as content providers who desire to provide licensed or owned video content to subscribers across mobile and Internet protocol (IP)-connected home entertainment devices. Total consideration was $7,850 in cash, the assumption of $16,525 in liabilities, $2,625 owed to the shareholders of Sezmi which will be issued in shares and held in escrow for a period of up to 12 months following the closing date. The excess of the aggregate cost of the acquisition over the net estimated fair value of the tangible and identifiable intangible assets and liabilities assumed was recorded as goodwill.

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.

Current assets	$	138
Property and equipment		400
Software		1,000
Goodwill		27,108
Total assets acquired		28,646
Current liabilities		1,646
Net assets acquired	$	27,000

During the second quarter of 2012, the Company decided to divest itself of Sezmi and therefore it has been recorded as discontinued operations. The Company has provided below the details of the components of the assets and liabilities held for sale as of December 31, 2011 for Sezmi. On June 26, 2012, the Company completed the sale of Sezmi to Total Media for $2,950 to be paid in cash and has recorded a corresponding receivable as of June 30, 2012 which was subsequently received. Due to the divesture of Sezmi during the second quarter of 2012, the Company recorded a loss from disposal of approximately $28,578 and has provided a breakout of the loss from discontinued operations for the Sezmi business for the three and six months ended June 30, 2012 and 2011.

Assets and Liabilities of Discontinued Operations

At June 30, 2012, the assets of Sezmi and Content Solutions are presented separately on our consolidated balance sheet. The components of the assets of discontinued operations are as follows (in thousands):

	Discontinued Operations		Discontinued Operations for December 31, 2011
	June 30,  2012		Content Solutions		SEZMI		Total
	(unaudited)
Assets held for sale:
Cash and cash equivalents	$	-	$	1,432	$	-	$	1,432
Accounts receivable, net		-		14,010		3,288		17,298
Unbilled revenue		-		1,366		-		1,366
Inventory, net		-		2		-		2
Other current assets		-		840		-		840
Current assets held for sale		-		17,650		3,288		20,938
Property and equipment, net		-		599		400		999
Intangible assets		-		-		1,000		1,000
Goodwill		-		5,061		27,108		32,169
Long-term assets held for sale	$	-	$	5,660	$	28,508	$	34,168
Liabilities for sale:
Capital lease and other obligations, current portion	$	-	$	3	$	-	$	3
Accounts payable		-		1,645		-		1,645
Accrued expenses		-		376		-		376
Deferred revenue		-		18		-		18
Other current liabilities		-		2,381		6,870		9,251
Current liabilities held for sale		-		4,423		6,870		11,293
Other long-term liabilities		-		2,939		-		2,939
Long-term liabilities held for sale	$	-	$	2,939	$	-	$	2,939

Results of Discontinued Operations

As Sezmi and Content Solutions represented a component of our business and its results of operations and cash flows can be separated from the rest of our operations, the results for the periods presented are disclosed as discontinued operations on the face of the consolidated statements of operations. Net revenues and (loss) from discontinued operations, net of tax, for the three months ended June 30, 2012 and 2011, and for the six months ended June 30, 2012 and 2011, respectively, are as follows (in thousands):

Discontinued Operations- Sezmi
	Three months ended					Six months ended
	June 30,					June 30,
	2012			2011		2012			2011
Revenue	$	109		$	-	$	203		$	-
Net loss from operations		(4,310	)		-		(7,880	)		-
Loss from Disposal		(28,578	)		-		(28,578	)		-
Loss before provision for taxes from discontinued operations		(32,888	)		-		(36,458	)		-
Provision for income taxes		-			-		-			-
Net loss from discontinued operations	$	(32,888	)	$	-	$	(36,458	)	$	-

Discontinued Operations- Content Solutions
	Three months ended						Six months ended
	June 30,						June 30,
	2012			2011			2012			2011
Revenue	$	1,333		$	3,236		$	4,152		$	6,899
Net income (loss) from operations		(156	)		(822	)		26			(1,415	)
Loss from Disposal		(15,462	)		-			(15,462	)		-
Loss before provision for taxes from discontinued operations		(15,618	)		(822	)		(15,436	)		(1,415	)
Provision for income taxes		-			-						-
Net loss from discontinued operations	$	(15,618	)	$	(822	)	$	(15,436	)	$	(1,415	)

Discontinued Operations- Total
	Three months ended						Six months ended
	June 30,						June 30,
	2012			2011			2012			2011
Revenue	$	1,442		$	3,236		$	4,355		$	6,899
Net loss from operations		(4,466	)		(822	)		(7,854	)		(1,415	)
Loss from Disposal		(44,040	)		-			(44,040	)		-
Loss before provision for taxes from discontinued operations		(48,506	)		(822	)		(51,894	)		(1,415	)
Provision for income taxes		-			-			-			-
Net loss from discontinued operations	$	(48,506	)	$	(822	)	$	(51,894	)	$	(1,415	)

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Summary of Status of Stock Option Awards (Detail) (USD $)	6 Months Ended
	Jun. 30, 2012
Shares
Beginning Balance	6,415,669
Granted	703,857
Exercised	(63,283)
Cancelled, expired, or forfeited	(1,236,049)
Ending Balance	5,820,194
Exercisable at June 30, 2012	2,882,048
Weighted Average Exercise Price
Beginning Balance	$ 9.90
Granted	$ 9.36
Exercised	$ 7.63
Cancelled, expired, or forfeited	$ 10.82
Ending Balance	$ 9.67
Exercisable at June 30, 2012	$ 9.36
Weighted Average Remaining Contractual Life (Years)
Outstanding at June 30, 2012	3 years 5 months 19 days
Exercisable at June 30, 2012	3 years 1 month 28 days
Intrinsic Value
Outstanding at June 30, 2012	$ 0
Exercisable at June 30, 2012	$ 0

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Reconciliation of Change in Carrying Value of Level 3 Acquisition Liabilities (Detail) (Business Acquisition Contingent Consideration, USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Business Acquisition Contingent Consideration
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Balance at January 1, 2012	$ 16,652
Payment of acquisition liabilities
Increase in earn out estimates and new acquisitions	7,649
Decrease in earn out estimates and payments	(3,831)
Balance at June 30, 2012	$ 20,470

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Related Party Transactions - Additional Information (Detail) (KIT Capital, USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
KIT Capital
Related Party Transaction [Line Items]
Related party transaction	$ 0	$ 97	$ 53	$ 97

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Goodwill and Intangible Assets - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Goodwill And Intangible Assets [Line Items]
Impairment charge of goodwill	$ 55,718		$ 55,718
Goodwill, discountinued operation					32,169
Amortization expense on intangible assets	$ 2,735	$ 1,403	$ 5,479	$ 2,689

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Fair Value Measurement - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Investment [Line Items]
Cost investments	$ 1,015	$ 563

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Integration Expenses - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2011
Business Combination, Separately Recognized Transactions [Line Items]
Integration charges	$ 9,710	$ 18,398

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Summary of Restricted Stock Activity (Detail) (Restricted stock, USD $)	6 Months Ended
	Jun. 30, 2012
Restricted stock
Shares
Outstanding at December 31, 2011	1,689,250
Granted	1,170,593
Vested	(416,848)
Cancelled	(328,223)
Outstanding at June 30, 2012	2,114,772
Weighted Average Exercise Price
Outstanding at December 31, 2011	$ 7.05
Granted	$ 6.54
Vested	$ 8.05
Cancelled	$ 10.53
Outstanding at June 30, 2012	$ 6.43

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Revenue and Assets by Major Geographical Location (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Segment Reporting Information [Line Items]
Revenue	$ 51,149	$ 44,952	$ 107,267	$ 75,739
Assets	357,063		357,063		473,181	[1]
EMEA
Segment Reporting Information [Line Items]
Revenue	29,235	27,124	59,999	40,055
Assets	177,215		177,215		176,929
Asia Pac
Segment Reporting Information [Line Items]
Revenue	8,746	8,579	17,659	17,986
Assets	28,449		28,449		10,344
Americas
Segment Reporting Information [Line Items]
Revenue	13,168	9,249	29,609	17,698
Assets	65,027		65,027		122,989
Corporate
Segment Reporting Information [Line Items]
Assets	$ 86,372		$ 86,372		$ 162,919

[1] The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

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Stock-Based Compensation - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended		12 Months Ended	6 Months Ended				12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended		3 Months Ended	6 Months Ended				1 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2012 Scenario 1	Jun. 30, 2012 Scenario 2	Jun. 30, 2012 Stock options	Jun. 30, 2012 Stock options Employee	Dec. 31, 2011 Stock options Employee	Jun. 30, 2012 Stock options Officers and Directors	Dec. 31, 2011 Stock options Officers and Directors	Jun. 30, 2012 Restricted stock	Jun. 30, 2012 Restricted stock units ("RSUs") with time-based vesting conditions	Jun. 30, 2012 Performance-contingent restricted stock	Jun. 30, 2012 Performance-contingent restricted stock	Jun. 30, 2012 Maximum	Jun. 30, 2012 Maximum Restricted stock	Jun. 30, 2012 Minimum Restricted stock	Dec. 31, 2010 Stock Incentive Plan 2008	Jun. 30, 2012 Stock Incentive Plan 2008	Jun. 30, 2012 Stock Incentive Plan 2004	Dec. 31, 2010 Stock Incentive Plan 2004
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in number of shares to be issued																		1,500,000
Aggregate number of shares to be issued																		5,000,000	9,500,000		342,858
Shares of common stock available for future grant																			772,417	264,108
Options contractual term															5 years
Share base compensation, vesting period						4 years						48 months				48 months	36 months
Unrecognized compensation cost related to unvested share-based compensation grants	$ 17,732		$ 26,513
Unrecognized compensation cost related to unvested share-based compensation grants, weighted average period	2 years 7 months 6 days		2 years 9 months 18 days
Forfeiture rate using historical exercise experience							25.00%	25.00%	0.00%	0.00%
Weighted-average grant-date fair value of option awards granted	$ 6.19
Share-Based compensation arrangement by share-based payment award, award vesting rights, Volume Weighted Average stock price, period	20 days														90 days
Percentage of Volume Weighted Average stock price to grant date closing Price				115.00%	130.00%
Share-Based compensation arrangement by share based payment award vesting rights, percentage of grant				50.00%	50.00%
Restricted Stock Granted Value											$ 11,915
Fair Value Of Restricted Stock											7,655
Risk free rate	0.61%	1.52%												0.66%
Volatility rate	102.77%	79.40%												85.00%
Termination of executives expenses													$ 3,400

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Other Current Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Other Current Liabilities [Line Items]
Accrued salaries and benefits	$ 19,348	$ 13,827
Liabilities assumed and to be paid related to acquisitions	5,564	9,756
Other	2,790	1,963
Other current liabilities	$ 27,702	$ 25,546	[1]

[1] The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

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Fair Value Measurement

6 Months Ended

Jun. 30, 2012

Fair Value Measurement

(17) Fair Value Measurement

The following table provides the assets and liabilities carried at fair value measured on a recurring basis:

	Fair Value Measurements at June 30, 2012
	Carrying Value		Level 1		Level 2		Level 3
Liabilities
Acquisition liabilities (see note 14)	$	20,470		-		-	$	20,470
Derivative liability (see note 15 and 19)	$	28,388		-		-	$	28,388

	Fair Value Measurements at December 31, 2011
	Carrying Value		Level 1		Level 2		Level 3
Assets
Investments	$	1,352	-		1,352		$	-
Liabilities
Acquisition liabilities (see note 14)	$	16,652		-		-	$	16,652
Derivative liability (see note 15 and 19)	$	557		-		-	$	557

A reconciliation of the change in the carrying value of the level 3 acquisition liabilities is as follows:

Balance at January 1, 2012	$	16,652
Payment of acquisition liabilities		-
Increase in earn out estimates and new acquisitions		7,649
Decrease in earn out estimates and payments		(3,831	)
Balance at June 30, 2012	$	20,470

The amount of total gains or losses for the six months ended June 30, 2012 included in losses attributable to the change in unrealized gains or losses relating to liabilities still held at June 30, 2012:

Included in statement of operations in Interest expense	$	164
Included in statement of operations in Merger and acquisition and investor relations	$	(3,006	)

A reconciliation of the change in the carrying value of the level 3 derivative liability is as follows: 

Balance at January 1, 2012	$	557
Initial valuation of May 2012 warrants (Note 19)		14,333
Valuation of May 2012 stock price reset provision		10,512
Change in valuation		2,986
Balance at June 30, 2012	$	28,388

The amount of total gains or losses for the six months included in losses attributable to the change in unrealized gains or losses relating to liabilities still held at June 30, 2012:

Included in statement of operations in Derivative expense $ 2,986

As of June 30, 2012 and December 31, 2012, the Company has approximately $1,015 and $563, respectively, of cost investments recorded on the balance sheet.

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Components Used in Computation of Basic and Diluted Net Income Per Common Share (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Numerator:
Net loss from continuing operations	$ (102,576)	$ (18,981)	$ (124,067)	$ (30,889)
Loss from discontinued operations	(48,506)	(822)	(51,894)	(1,415)
Net loss	$ (151,082)	$ (19,803)	$ (175,961)	$ (32,304)
Denominator:
Denominator for basic net loss per common share	51,418,613	40,063,874	48,513,809	38,316,369
Effect of dilutive securities:
Stock options
Warrants
RSAs
Denominator for diluted net income (loss) per common share	51,418,613	40,063,874	48,513,809	38,316,369
Basic net loss from continuing operations per common share	$ (1.99)	$ (0.47)	$ (2.56)	$ (0.81)
Basic net loss from discontinued operations per common share	$ (0.95)	$ (0.02)	$ (1.07)	$ (0.03)
Basic net loss per common share	$ (2.94)	$ (0.49)	$ (3.63)	$ (0.84)
Diluted net loss from continuing operations per common share	$ (1.99)	$ (0.47)	$ (2.56)	$ (0.81)
Diluted net loss from discontinued operations per common share	$ (0.95)	$ (0.02)	$ (1.07)	$ (0.03)
Diluted net loss per common share	$ (2.94)	$ (0.49)	$ (3.63)	$ (0.84)

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Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2012

Other Current Liabilities

Other current liabilities consisted of the following:

	June 30, 2012		December 31, 2011
Accrued salaries and benefits	$	19,348	$	13,827
Liabilities assumed and to be paid related to acquisitions		5,564		9,756
Other		2,790		1,963
	$	27,702	$	25,546

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Reconciliation of Change in Carrying Value of Level 3 Derivative Liability (Detail) (Derivative Financial Instruments, Liabilities, USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Derivative Financial Instruments, Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Balance at January 1, 2012	$ 557
Initial valuation of May 2012 warrants (Note 19)	14,333
Valuation of May 2012 stock price reset provision	10,512
Change in valuation	2,986
Balance at June 30, 2012	$ 28,388

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2012

Digital Media Production

Acquisition Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.

Current assets	$	971
Property and equipment		1
Intangible assets - customer list		500
Goodwill		6,289
Total assets acquired		7,761
Current liabilities		(265	)
Deferred tax liability		(95	)
Deferred revenue - long term		(41	)
Other long-term liabilities		(6	)
Total liabilities		(407	)
Net assets acquired	$	7,354

Sezmi

Acquisition Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.

Current assets	$	138
Property and equipment		400
Software		1,000
Goodwill		27,108
Total assets acquired		28,646
Current liabilities		1,646
Net assets acquired	$	27,000

Hyro Limited

Acquisition Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.

Current assets	$	3,107
Property and equipment		818
Purchased Software		151
Goodwill		15,390
Total assets acquired		19,466
Current liabilities		4,166
Net assets acquired	$	15,300

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Cash and Cash Equivalents - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011		Jun. 30, 2011	Dec. 31, 2010
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents in financial institutions outside the United States	$ 30,562	$ 44,229	[1]	$ 37,162	$ 140,585
Outside United States
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents in financial institutions outside the United States	$ 5,333	$ 24,379

[1] The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

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Acquisition Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011		Jun. 30, 2012 Benchmark	Dec. 31, 2011 Benchmark	Jun. 30, 2012 WWB	Dec. 31, 2011 WWB	Jun. 30, 2012 ioko	Dec. 31, 2011 ioko	Jun. 30, 2012 Polymedia	Dec. 31, 2011 Polymedia	Jun. 30, 2012 Hyro Limited	Jun. 22, 2012 Hyro Limited	Jun. 30, 2012 Peerset
Business Acquisition, Contingent Consideration [Line Items]
Acquisition liabilities, current portion	$ 17,032	$ 8,648	[1]	$ 4,047	$ 3,960	$ 2,377	$ 1,427	$ 1,374	$ 1,482	$ 2,573	$ 1,779	$ 6,461	$ 6,461	$ 200
Acquisition liabilities, net of current	$ 3,438	$ 8,004	[1]		$ 1,671	$ 2,421	$ 3,907		$ 1,359	$ 1,017	$ 1,067

[1] The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

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Hyro Acquisition Estimated Fair Values of Assets Acquired And Liabilities Assumed (Detail) (Hyro Limited, USD $) In Thousands, unless otherwise specified	Jun. 22, 2012
Hyro Limited
Business Acquisition [Line Items]
Current assets	$ 3,107
Property and equipment	818
Purchased Software	151
Goodwill	15,390
Total assets acquired	19,466
Current liabilities	4,166
Net assets acquired	$ 15,300

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Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2012

Components of Assets of Discontinued Operations

At June 30, 2012, the assets of Sezmi and Content Solutions are presented separately on our consolidated balance sheet. The components of the assets of discontinued operations are as follows (in thousands):

	Discontinued Operations		Discontinued Operations for December 31, 2011
	June 30,  2012		Content Solutions		SEZMI		Total
	(unaudited)
Assets held for sale:
Cash and cash equivalents	$	-	$	1,432	$	-	$	1,432
Accounts receivable, net		-		14,010		3,288		17,298
Unbilled revenue		-		1,366		-		1,366
Inventory, net		-		2		-		2
Other current assets		-		840		-		840
Current assets held for sale		-		17,650		3,288		20,938
Property and equipment, net		-		599		400		999
Intangible assets		-		-		1,000		1,000
Goodwill		-		5,061		27,108		32,169
Long-term assets held for sale	$	-	$	5,660	$	28,508	$	34,168
Liabilities for sale:
Capital lease and other obligations, current portion	$	-	$	3	$	-	$	3
Accounts payable		-		1,645		-		1,645
Accrued expenses		-		376		-		376
Deferred revenue		-		18		-		18
Other current liabilities		-		2,381		6,870		9,251
Current liabilities held for sale		-		4,423		6,870		11,293
Other long-term liabilities		-		2,939		-		2,939
Long-term liabilities held for sale	$	-	$	2,939	$	-	$	2,939

Net Revenues and (Loss) From Discontinued Operations, Net Of Tax

As Sezmi and Content Solutions represented a component of our business and its results of operations and cash flows can be separated from the rest of our operations, the results for the periods presented are disclosed as discontinued operations on the face of the consolidated statements of operations. Net revenues and (loss) from discontinued operations, net of tax, for the three months ended June 30, 2012 and 2011, and for the six months ended June 30, 2012 and 2011, respectively, are as follows (in thousands):

Discontinued Operations- Sezmi
	Three months ended					Six months ended
	June 30,					June 30,
	2012			2011		2012			2011
Revenue	$	109		$	-	$	203		$	-
Net loss from operations		(4,310	)		-		(7,880	)		-
Loss from Disposal		(28,578	)		-		(28,578	)		-
Loss before provision for taxes from discontinued operations		(32,888	)		-		(36,458	)		-
Provision for income taxes		-			-		-			-
Net loss from discontinued operations	$	(32,888	)	$	-	$	(36,458	)	$	-

Discontinued Operations- Content Solutions
	Three months ended						Six months ended
	June 30,						June 30,
	2012			2011			2012			2011
Revenue	$	1,333		$	3,236		$	4,152		$	6,899
Net income (loss) from operations		(156	)		(822	)		26			(1,415	)
Loss from Disposal		(15,462	)		-			(15,462	)		-
Loss before provision for taxes from discontinued operations		(15,618	)		(822	)		(15,436	)		(1,415	)
Provision for income taxes		-			-						-
Net loss from discontinued operations	$	(15,618	)	$	(822	)	$	(15,436	)	$	(1,415	)

Discontinued Operations- Total
	Three months ended						Six months ended
	June 30,						June 30,
	2012			2011			2012			2011
Revenue	$	1,442		$	3,236		$	4,355		$	6,899
Net loss from operations		(4,466	)		(822	)		(7,854	)		(1,415	)
Loss from Disposal		(44,040	)		-			(44,040	)		-
Loss before provision for taxes from discontinued operations		(48,506	)		(822	)		(51,894	)		(1,415	)
Provision for income taxes		-			-			-			-
Net loss from discontinued operations	$	(48,506	)	$	(822	)	$	(51,894	)	$	(1,415	)

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Nature of Business and Nature of Presentation

6 Months Ended

Jun. 30, 2012

Nature of Business and Nature of Presentation

(1) Nature of Business and Nature of Presentation   

KIT digital, Inc. (“we,” “us,” “our,” the “Company” or “KIT digital”), through our operating subsidiaries, provides software solutions that enable our customers to manage and distribute video content through Internet websites, mobile and tablet devices and both closed network Internet Protocol television (“IPTV”) and over-the-top (“OTT”) connected television environments. Our core video asset management software suite, marketed under the “KIT Platform” brand (and “KIT Cosmos” and “KIT Cloud” sub-brands), includes online and mobile video players, ingestion and trans-coding for Internet and mobile connected devices, live and video-on-demand OTT and IPTV video serving, editing and content transformation, content meta-tagging, content localization and syndication, digital rights management, hosting, storage, content delivery and content syndication. We currently provide IP video solutions internationally through over 20 offices globally, including principal locations in Atlanta, Beijing, Boston, Chennai, Cologne, Delhi, Dubai, Ely (UK), Grenoble (France), London, Madrid, Melbourne (Australia), Mumbai, New York, Paris, Prague, San Francisco, Singapore, and Sydney. In support of our KIT Platform deployments, we provide systems integration, broadcast engineering services, content transformation services and integrated marketing services.

The accompanying interim consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information. These financial statements include the accounts of KIT digital and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in the accompanying financial statements.

Certain information and footnote disclosures normally included in the Company’s annual audited consolidated financial statements and accompanying notes have been condensed or omitted in these interim financial statements. Accordingly, the unaudited consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and accompanying notes included in KIT digital’s annual report on Form 10-K for the year ended December 31, 2011, filed with the U.S. Securities and Exchange Commission.

The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results of operations that may be expected for any future periods. In the opinion of management, these unaudited consolidated financial statements include all adjustments and accruals, consisting only of normal recurring adjustments, that are necessary for a fair statement of the results of all interim periods reported herein.

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Summary of Other Receivable (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan receivable on sale of subsidiary, net of reserves	$ 2,158	$ 8,632
Other receivables	8,200
Total other receivables	10,358	8,632
Less: current	(1,690)	(2,756)	[1]
Other receivables, net of current	$ 8,668	$ 5,876	[1]

[1] The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

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Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2012

Assets and Liabilities Carried At Fair Value on Recurring Basis

The following table provides the assets and liabilities carried at fair value measured on a recurring basis:

	Fair Value Measurements at June 30, 2012
	Carrying Value		Level 1		Level 2		Level 3
Liabilities
Acquisition liabilities (see note 14)	$	20,470		-		-	$	20,470
Derivative liability (see note 15 and 19)	$	28,388		-		-	$	28,388

	Fair Value Measurements at December 31, 2011
	Carrying Value		Level 1		Level 2		Level 3
Assets
Investments	$	1,352	-		1,352		$	-
Liabilities
Acquisition liabilities (see note 14)	$	16,652		-		-	$	16,652
Derivative liability (see note 15 and 19)	$	557		-		-	$	557

Amount of Total Gains or Losses Included in Losses Attributable to Change in Unrealized Gains or Losses Relating to Liabilities

The amount of total gains or losses for the six months ended June 30, 2012 included in losses attributable to the change in unrealized gains or losses relating to liabilities still held at June 30, 2012:

Included in statement of operations in Interest expense	$	164
Included in statement of operations in Merger and acquisition and investor relations	$	(3,006	)

The amount of total gains or losses for the six months included in losses attributable to the change in unrealized gains or losses relating to liabilities still held at June 30, 2012:

Included in statement of operations in Derivative expense $ 2,986

Business Acquisition Liability Assumed

Reconciliation of Change in Carrying Value of Level 3

A reconciliation of the change in the carrying value of the level 3 acquisition liabilities is as follows:

Balance at January 1, 2012	$	16,652
Payment of acquisition liabilities		-
Increase in earn out estimates and new acquisitions		7,649
Decrease in earn out estimates and payments		(3,831	)
Balance at June 30, 2012	$	20,470

Derivative Liabilities

Reconciliation of Change in Carrying Value of Level 3

A reconciliation of the change in the carrying value of the level 3 derivative liability is as follows: 

Balance at January 1, 2012	$	557
Initial valuation of May 2012 warrants (Note 19)		14,333
Valuation of May 2012 stock price reset provision		10,512
Change in valuation		2,986
Balance at June 30, 2012	$	28,388

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Integration Expenses

6 Months Ended

Jun. 30, 2012

Integration Expenses

(21) Integration Expenses

The Company has recorded integration charges related to the cost overlap due to the reorganization and integration of acquisitions of $9,710 and $18,398 for the three and six months ended June 30, 2011, respectively. Integration expenses includes expenses for integrating acquired businesses together and eliminating duplication and inefficiencies. This includes rationalizing hosting and delivery infrastructure (data center consolidation, related hardware purchases, trunk T1 and T3 purchases and combinations, etc.) to merging software platforms and physical plant/office combination. These expenses include directly allocable staff time, travel and associated charges related to executing these integration initiatives. These expenses are almost all without exception cash-based. No such expenses were recorded for the three months and six months ended June 30, 2012.

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Restructuring Charges

6 Months Ended

Jun. 30, 2012

Restructuring Charges

(20) Restructuring Charges

In the first quarter of 2010, management approved restructuring plans for entities acquired in the fourth quarter of 2009 which included a workforce reduction, reduction in costs related to excess and vacated facilities under non-cancelable leases and settlement of contracts. We expect to make the remaining facility closing costs and contract settlement payments in 2012.

In the first quarter of 2011, management approved a companywide restructuring plan related to a workforce reduction. Payments against this plan were completed in 2011.

During the second quarter of 2012, management approved a restructuring plan to focus its resources to support its strategic and core assets, streamline its cost structure and move its headquarters to New York and reduce the staff at its former headquarters in Prague. As such, the Company recorded a restructuring charge of $3,349 during the three months ended June 30, 2012. The Company expects to complete this plan within 12 months from the end of the second quarter of 2012.

The following table summarizes the restructuring accruals for the year ended December 31, 2011 and the six months ended June 30, 2012:

	Employee Termination Costs			Contract Settlements			Facility Closing Costs			Total
Balance as of December 31, 2010	$	1,212		$	13		$	518		$	1,743
Additions		3,973			-			34			4,007
Reversal		(654	)		-			-			(654	)
Cash payments		(4,531	)		(8	)		(337	)		(4,876	)
Balance as of  December 31, 2011	$	-		$	5		$	215		$	220
Additions		3,349			-			-			3,349
Reversal		-			-			-			-
Cash payments		(587	)		(5	)		(134	)		(726	)
Balance as of  June 30, 2012	$	2,762		$	-		$	81		$	2,843

The accrued restructuring of $220 and $2,843 were included in accrued expenses in the consolidated balance sheets as of December 31, 2011 and June 30, 2012, respectively.

The following table summarizes the restructuring charges:

	Three months ended June 30, 2012		Three months ended June 30, 2011		Six months ended June 30, 2012		Six months ended June 30, 2011
Employee termination costs	$	3,349	$	-	$	3,349	$	3,318
Contract settlements		-		-		-		-
Facility closing costs		-		34		-		34
Total restructuring charges	$	3,349	$	34	$	3,349	$	3,352

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Change In Carrying Amount of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012
Goodwill [Line Items]
Balance as of December 31, 2011		$ 206,101	[1]
Acquisitions- Hyro		15,390
Impairment charge of goodwill	(55,718)	(55,718)
Other adjustments, net		1,846
Balance as of June 30, 2012	$ 167,619	$ 167,619

[1] The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value of Option Grant using Black-Scholes Model with Weighted-Average Assumptions

The fair value of each option grant is estimated on the date of grant using the Black-Scholes model with the following weighted-average assumptions:

	Six months ended  June 30, 2012			Six months ended  June 30, 2011
Expected life (in years)		3.96			4.00
Risk-free interest rate		0.61	%		1.52	%
Volatility		102.77	%		79.40	%
Dividend yield		0			0

Summary of Status of Stock Option Awards

A summary of the status of stock option awards and changes during the six months ended June 30, 2012 is presented below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Intrinsic Value
Outstanding at December 31, 2011		6,415,669		$	9.90
Granted		703,857			9.36
Exercised		(63,283	)		7.63
Cancelled, expired, or forfeited		(1,236,049	)		10.82
Outstanding at June 30, 2012		5,820,194			9.67		3.47	$	0
Exercisable at June 30, 2012		2,882,048		$	9.36		3.16	$	0

Summary of Different Types of Restricted Stocks

The following table summarizes the different types of restricted stock awards granted:

	Six months ended		Six months ended
	June 30, 2012		June 30, 2011
Restricted stock units ("RSUs") with time-based vesting conditions		204,423		-
Performance-contingent restricted stock units ("PCRSUs") with market-based vesting conditions		425,000		-
Restricted stock with vesting conditions		541,170		-
		1,170,593		-

Summary of Restricted Stock Activity

These performance targets have not been met as of the latest vesting period on June 30, 2012. No grants were made during the six months ended June 30, 2011.

	Restricted Stock			Weighted Average Exercise Price
Outstanding at December 31, 2011		1,689,250		$	7.05
Granted		1,170,593			6.54
Vested		(416,848	)		8.05
Cancelled		(328,223	)		10.53
Outstanding at June 30, 2012		2,114,772		$	6.43

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Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting

(22) Segment Reporting

We have presented operating segments in the past for Digital Media Solutions and Professional Services, but since Professional Services represents less than 5% of total assets and total revenues and this segment continues to decrease, we are not presenting financial information for operating segments.

The following table provides revenue and assets by major geographical location.

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2012		2011		2012		2011
Revenue:
EMEA	$	29,235	$	27,124	$	59,999	$	40,055
AsiaPac		8,746		8,579		17,659		17,986
Americas		13,168		9,249		29,609		17,698
Total revenue	$	51,149	$	44,952	$	107,267	$	75,739

	June 30,		December 31,
	2012		2011
Assets:
EMEA	$	177,215	$	176,929
AsiaPac		28,449		10,344
Americas		65,027		122,989
Corporate		86,372		162,919
Total assets	$	357,063	$	473,181

In the assets listed above, Corporate includes all intangible assets and goodwill. Assets held for sale related to the divesture of Content Solutions has been included within the EMEA total assets for approximately $23,310 as of December 31, 2011. For the divesture of Sezmi assets held for sale of approximately $31,796 has been included within the Americas segments total assets as of December 31, 2011. See Note 25.

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Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions

(23) Related Party Transactions

The managerial services of Kaleil Isaza Tuzman, our former Chairman and Chief Executive Officer, and other non-executive personnel, were provided through KIT Capital, which is beneficially controlled by Mr. Isaza Tuzman. The total amount included in our results of operations in the three months ended June 30, 2012 and 2011 were $0 and $97, respectively, and $53 and $97 for the six months ended June 30, 2012 and 2011, respectively. As of the end of the first quarter of 2012 and as part of the resignation of Mr. Isaza Tuzman on March 31, 2012 as Chief Executive Officer, we no longer use KIT Capital for managerial services.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Non-cash issuances of stock for acquisitions, shares issued	2,717,530	7,582,056

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Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes

(24) Income Taxes

Income taxes for the interim periods presented have been included in the accompanying financial statements on the basis of an estimated annual effective tax rate of 9.9% for the six months ended June 30, 2012 and 2.3% for the six months ended June 30, 2011. The effective tax rate may vary from period to period depending on, among other factors, the geographic and business mix of taxable earnings, losses and tax planning. During the three and six months ended June 30, 2012, the Company recorded a tax benefit of approximately $1,319 and $1,259, respectively. This tax benefit is primarily driven by the reversal of deferred tax liabilities from acquisition related intangibles. During the three and six months ended June 30, 2011, the Company recorded a tax expense of approximately $796 and $910, respectively. Prior period’s tax expense relates to estimated tax payments for state and local.

We are not currently under examination by any taxing authorities.

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Restructuring Charges - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 3,349
Accrued restructuring costs	$ 2,843	$ 220	$ 1,743

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Acquisition Liabilities (Tables)

6 Months Ended

Jun. 30, 2012

Acquisition Liabilities

Acquisition Liabilities consisted of the following: 

	June 30, 2012		December 31, 2011
Acquisition liabilities, current portion
Benchmark	$	4,047	$	3,960
WWB		2,377		1,427
ioko		1,374		1,482
Polymedia		2,573		1,779
Hyro		6,461		-
Peerset		200		-
	$	17,032	$	8,648
Acquisition liabilities, net of current
Benchmark	$	-	$	1,671
WWB		2,421		3,907
ioko		-		1,359
Polymedia		1,017		1,067
	$	3,438	$	8,004

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Accounts Receivable - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts	$ 2,821	$ 2,943

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Assets and Liabilities Carried At Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Oct. 03, 2011
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		$ 1,352
Acquisition liabilities (see note 14)	20,470	16,652	4,284
Derivative liability (see note 15 and 19)	28,388	557
Fair Value Measurements, Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		1,352
Fair Value Measurements, Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Acquisition liabilities (see note 14)	20,470	16,652
Derivative liability (see note 15 and 19)	$ 28,388	$ 557

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 30,562	$ 44,229	[1]
Restricted cash	5,346	238	[1]
Investments	1,015	1,915	[1]
Accounts receivable, net	42,924	56,672	[1]
Unbilled revenue	18,249	12,533	[1]
Inventory, net	1,488	1,336	[1]
Other receivable, current portion	1,690	2,756	[1]
Deferred tax assets, current portion	399	399	[1]
Other current assets	11,091	10,514	[1]
Current assets held for sale		20,938	[1]
Total current assets	112,764	151,530	[1]
Property and equipment, net	9,096	11,071	[1]
Other receivable, net of current	8,668	5,876	[1]
Deferred tax assets, net of current	611	600	[1]
Intangible assets	58,305	63,835	[1]
Goodwill	167,619	206,101	[1]
Long-term assets held for sale		34,168	[1]
Total assets	357,063	473,181	[1]
Current liabilities:
Capital lease and other obligations, current portion	127	169	[1]
Secured notes payable, net of debt discount, current portion	7,298	6,406	[1]
Notes payable		2,525	[1]
Accounts payable	20,688	16,599	[1]
Accrued expenses	15,973	6,387	[1]
Deferred revenue	6,066	5,066	[1]
Income tax payable	1,718	1,410	[1]
Deferred tax liability, current portion	344	344	[1]
Acquisition liabilities, current portion	17,032	8,648	[1]
Derivative liability	28,388	557	[1]
Other current liabilities	27,702	25,546	[1]
Current liabilities held for sale		11,293	[1]
Total current liabilities	125,336	84,950	[1]
Capital lease and other obligations, net of current	70	91	[1]
Secured notes payable, net of current	8,088	11,868	[1]
Deferred tax liability, net of current	9,919	11,659	[1]
Acquisition liabilities, net of current	3,438	8,004	[1]
Long-term liabilities held for sale		2,939	[1]
Total liabilities	146,851	119,511	[1]
Stockholders' equity:
Common stock, $0.0001 par value: authorized 150,000,000 shares; issued and outstanding 56,622,201 and 46,342,851, respectively	6	5	[1]
Additional paid-in capital	547,605	513,882	[1]
Accumulated deficit	(332,287)	(156,326)	[1]
Accumulated other comprehensive loss	(5,112)	(3,891)	[1]
Total stockholders' equity	210,212	353,670	[1]
Total liabilities and stockholders' equity	$ 357,063	$ 473,181	[1]

[1] The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

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Restructuring Charges (Tables)

6 Months Ended

Jun. 30, 2012

Summary of Restructuring Charges for Plan Approved in 2010 and 2011

The following table summarizes the restructuring accruals for the year ended December 31, 2011 and the six months ended June 30, 2012:

	Employee Termination Costs			Contract Settlements			Facility Closing Costs			Total
Balance as of December 31, 2010	$	1,212		$	13		$	518		$	1,743
Additions		3,973			-			34			4,007
Reversal		(654	)		-			-			(654	)
Cash payments		(4,531	)		(8	)		(337	)		(4,876	)
Balance as of  December 31, 2011	$	-		$	5		$	215		$	220
Additions		3,349			-			-			3,349
Reversal		-			-			-			-
Cash payments		(587	)		(5	)		(134	)		(726	)
Balance as of  June 30, 2012	$	2,762		$	-		$	81		$	2,843

Summary of Restructuring Charges

The following table summarizes the restructuring charges:

	Three months ended June 30, 2012		Three months ended June 30, 2011		Six months ended June 30, 2012		Six months ended June 30, 2011
Employee termination costs	$	3,349	$	-	$	3,349	$	3,318
Contract settlements		-		-		-		-
Facility closing costs		-		34		-		34
Total restructuring charges	$	3,349	$	34	$	3,349	$	3,352

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Legal Matters - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended				6 Months Ended	1 Months Ended
	May 31, 2009	Dec. 31, 2007 Consultant Plaintiff	Dec. 31, 2009 Former Employees Plaintiff	Nov. 30, 2007 Former Employees Plaintiff	Jun. 30, 2012 chairman and chief executive officer	May 31, 2009 Shareholders Defendant	Jul. 31, 2012 Subsequent Event Consultant
Legal Proceedings [Line Items]
Number of plaintiff		2	15	4
Date of disposal of pending litigation matter							Jul. 02, 2012
Scheduled trial commencement date							Jul. 23, 2012
Loss contingency hearing date							Oct. 09, 2012
Loss contingency filing date							Aug. 09, 2012
Scheduled oral argument date							Aug. 24, 2012
Number of defendants						10
Damages sought value	$ 100
Purchases of common stock shares					54,745

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) In Thousands, except Share data	Total		Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2011	$ 353,670	[1]	$ 5	$ 513,882	$ (156,326)	$ (3,891)
Beginning Balance (in shares) at Dec. 31, 2011			46,342,851
Issue of stock for exercise of stock options (in shares)	63,283		63,283
Issue of stock for exercise of stock options	483			483
Issue of stock to 3rd party investors in private placement (in shares)	10,279,350		7,000,000
Issue of stock to 3rd party investors in private placement	27,174		1	27,173
Issue of stock for acquisitions (in shares)			2,717,530
Issue of stock for acquisitions	15,273			15,273
Stock price reset provision related to the issuance of stock in private placement	(10,512)			(10,512)
Initial value of derivative liability	(14,333)			(14,333)
Issue of stock for compensation (in shares)	416,848		416,848
Issue of stock for compensation	3,495			3,495
Issue of stock for services (in shares)			81,689
Issue of stock for services	735			735
Issue of warrants for services	530			530
Stock-based compensation	10,879			10,879
Foreign currency translation adjustment	(1,022)					(1,022)
Fair market value adjustment for available for sale securities	(199)					(199)
Net loss	(175,961)				(175,961)
Ending Balance at Jun. 30, 2012	$ 210,212		$ 6	$ 547,605	$ (332,287)	$ (5,112)
Ending Balance (in shares) at Jun. 30, 2012			56,622,201

[1] The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

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Components of Assets of Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Discontinued Operations [Line Items]
Cash and cash equivalents	$ 1,432
Accounts receivable, net	17,298
Unbilled revenue	1,366
Inventory, net	2
Other current assets	840
Current assets held for sale	20,938
Property and equipment, net	999
Intangible assets	1,000
Goodwill	32,169
Long-term assets held for sale	34,168
Capital lease and other obligations, current portion	3
Accounts payable	1,645
Accrued expenses	376
Deferred revenue	18
Other current liabilities	9,251
Current liabilities held for sale	11,293
Other long-term liabilities	2,939
Long-term liabilities held for sale	2,939
Content Solutions
Discontinued Operations [Line Items]
Cash and cash equivalents	1,432
Accounts receivable, net	14,010
Unbilled revenue	1,366
Inventory, net	2
Other current assets	840
Current assets held for sale	17,650
Property and equipment, net	599
Goodwill	5,061
Long-term assets held for sale	5,660
Capital lease and other obligations, current portion	3
Accounts payable	1,645
Accrued expenses	376
Deferred revenue	18
Other current liabilities	2,381
Current liabilities held for sale	4,423
Other long-term liabilities	2,939
Long-term liabilities held for sale	2,939
Sezmi
Discontinued Operations [Line Items]
Accounts receivable, net	3,288
Current assets held for sale	3,288
Property and equipment, net	400
Intangible assets	1,000
Goodwill	27,108
Long-term assets held for sale	28,508
Other current liabilities	6,870
Current liabilities held for sale	$ 6,870

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Estimated Future Annual Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]
2012	$ 5,496
2013	10,715
2014	10,169
2015	9,648
2016	7,903
Thereafter	14,374
Net Carrying Amount	58,305	63,835
Software
Finite-Lived Intangible Assets [Line Items]
2012	1,304
2013	2,407
2014	2,121
2015	1,851
2016	706
Net Carrying Amount	8,389
Customer list
Finite-Lived Intangible Assets [Line Items]
2012	4,000
2013	7,947
2014	7,921
2015	7,780
2016	7,196
Thereafter	14,374
Net Carrying Amount	49,218	53,251
Trademarks
Finite-Lived Intangible Assets [Line Items]
2012	8
2013	17
2014	17
2015	17
2016	1
Net Carrying Amount	60	84
Other Finite Lived Intangible Assets
Finite-Lived Intangible Assets [Line Items]
2012	184
2013	344
2014	110
Net Carrying Amount	$ 638

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Net income (loss) per share (Tables)

6 Months Ended

Jun. 30, 2012

Components Used in Computation of Basic and Diluted Net Income Per Common Share

The following table sets forth the components used in the computation of basic and diluted net loss per common share (in thousands, except share and per share data):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2012			2011			2012			2011
Numerator:
Net loss from continuing operations	$	(102,576	)	$	(18,981	)	$	(124,067	)	$	(30,889	)
Loss from discontinued operations		(48,506	)		(822	)		(51,894	)		(1,415	)
Net loss	$	(151,082	)	$	(19,803	)	$	(175,961	)	$	(32,304	)
Denominator:
Denominator for basic net loss per common share		51,418,613			40,063,874			48,513,809			38,316,369
Effect of dilutive securities:
Stock options		-			-			-			-
Warrants		-			-			-			-
RSAs		-			-			-			-
Denominator for diluted net income (loss) per common share		51,418,613			40,063,874			48,513,809			38,316,369
Basic net loss from continuing operations per common share	$	(1.99	)	$	(0.47	)	$	(2.56	)	$	(0.81	)
Basic net loss from discontinued operations per common share		(0.95	)		(0.02	)		(1.07	)		(0.03	)
Basic net loss per common share	$	(2.94	)	$	(0.49	)	$	(3.63	)	$	(0.84	)
Diluted net loss from continuing operations per common share	$	(1.99	)	$	(0.47	)	$	(2.56	)	$	(0.81	)
Diluted net loss from discontinued operations per common share		(0.95	)		(0.02	)		(1.07	)		(0.03	)
Diluted net loss per common share	$	(2.94	)	$	(0.49	)	$	(3.63	)	$	(0.84	)

Potentially Dilutive Shares Excluded as Result of Effects Being Anti-Dilutive

Potentially dilutive shares excluded as a result of the effects being anti-dilutive were as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2012		2011		2012		2011
Stock options		136,370		225,857		1,891,738		281,761
Warrants		77,860		1,013,974		141,971		1,359,444
RSAs		273,432		91,927		273,433		91,927
Total dilutive shares		487,662		1,331,758		2,307,142		1,733,132

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Secured Notes Payable (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Secured Note Issued April Twenty Ten
Debt Instrument [Line Items]
Secured note payable, face amount	$ 5,000	$ 5,000
Secured note payable, issuance date	2010-04	2010-04
Secured note payable, discount	55	84
Secured Note Issued June Twenty Ten
Debt Instrument [Line Items]
Secured note payable, face amount	1,000	1,000
Secured note payable, issuance date	2010-06	2010-06
Secured note payable, discount	9	13
Secured Note Issued May Twenty Eleven
Debt Instrument [Line Items]
Secured note payable, face amount	15,000	15,000
Secured note payable, issuance date	2011-05	2011-05
Secured note payable, discount	$ 683	$ 854

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Acquisition Liabilities

6 Months Ended

Jun. 30, 2012

Acquisition Liabilities

(14) Acquisition Liabilities

The fair value of the acquisition-related contingent consideration for potential earn-out and other payments was estimated based on the various revenue and gross margin thresholds in each purchase agreement. The varying potential earn-out amounts were then probability weighted and discounted to present value at the average rate of the weighted average cost of capital for each acquired company and the after-tax cost of debt. The potential earn-out payments must be recognized at their fair value, as of the acquisition date, and included as part of the total consideration transferred. The accounting standard requires that the fair value of these liabilities be re-measured at the end of every reporting period with the change in value over the period reported in the statement of operations.

Acquisition Liabilities consisted of the following: 

	June 30, 2012		December 31, 2011
Acquisition liabilities, current portion
Benchmark	$	4,047	$	3,960
WWB		2,377		1,427
ioko		1,374		1,482
Polymedia		2,573		1,779
Hyro		6,461		-
Peerset		200		-
	$	17,032	$	8,648
Acquisition liabilities, net of current
Benchmark	$	-	$	1,671
WWB		2,421		3,907
ioko		-		1,359
Polymedia		1,017		1,067
	$	3,438	$	8,004

Pursuant to the Benchmark Stock Purchase Agreement on May 14, 2010, following the 12-month anniversary of the closing, we agreed to pay the seller in the form of shares of our common stock $0.60 for every $1.00 of recognized revenue generated by Benchmark during the 12-month period following the closing, less the purchase price paid at closing. As of June 30, 2011, the fair value of the acquisition-related contingent consideration for the second anniversary on May 15, 2012 for Benchmark increased by $3,208 based on changes in management’s estimates and other factors that occurred during the three months ended June 30, 2011. The increase in the liabilities were recorded as a charge to earnings and is included in the “Merger and acquisition and investor relations expenses” line item in the Consolidated Statements of Operations. Also in the three months ended June 30, 2011, the working capital liability was agreed and paid for $357 with the difference of $762 recorded as an offset to the “Merger and acquisition and investor relations expenses” line item in the Consolidated Statements of Operations.

In July 2011, we paid the $1,375 in relation to the Peerset Acquisition liability.

As part of the Hyro acquisition, the Company has recorded an acquisition liability in the amount of $6,461 as an estimate of the top-off provision, which is based on the minimum value per the Hyro SPA of $14,346 for the 1,838,134 shares granted as of June 30, 2012. This top-off provision will be due upon and calculated upon the date that the 1,838,134 shares issued are able to be sold under Rule 144 or a change of control. See Note 11.

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2012

Change In Carrying Amount of Goodwill

The change in the carrying amount of goodwill is as follows:

	Goodwill
Balance as of December 31, 2011	$	206, 101
Acquisitions- Hyro		15,390
Impairment charge of goodwill		(55,718	)
Other adjustments, net		1,846
Balance as of June 30, 2012	$	167,619

Intangible Assets

Intangible assets include the following:

	June 30, 2012
	Weighted Average Remaining Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intangible assets with determinable lives:
Software		4.0	$	15,862	$	(7,472	)	$	8,390
Customer list		7.0		64,905		(15,687	)		49,218
Trademarks		4.0		621		(561	)		60
Other		2.0		1,363		(726	)		637
Total			$	82,751	$	(24,446	)	$	58,305

	December 31, 2011
	Weighted Average Remaining Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intangible assets with determinable lives:
Software		4.0	$	15,861	$	(6,168	)	$	9,693
Customer list		7.0		64,905		(11,654	)		53,251
Trademarks		3.5		621		(537	)		84
Other		2.5		1,362		(555	)		807
Total			$	82,749	$	(18,914	)	$	63,835

Estimated Future Annual Amortization Expense

Estimated future annual amortization expense as of June 30, 2012 is as follows:

	Software		Customer List		Trademarks		Other		Total
2012	$	1,304	$	4,000	$	8	$	184	$	5,496
2013		2,407		7,947		17		344		10,715
2014		2,121		7,921		17		110		10,169
2015		1,851		7,780		17		-		9,648
2016		706		7,196		1		-		7,903
Thereafter		-		14,374		-		-		14,374
Totals	$	8,389	$	49,218	$	60	$	638	$	58,305

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Other Current Liabilities

6 Months Ended

Jun. 30, 2012

Other Current Liabilities

(16) Other Current Liabilities

Other current liabilities consisted of the following:

	June 30, 2012		December 31, 2011
Accrued salaries and benefits	$	19,348	$	13,827
Liabilities assumed and to be paid related to acquisitions		5,564		9,756
Other		2,790		1,963
	$	27,702	$	25,546

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Acquisition Liabilities - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended							3 Months Ended			1 Months Ended
	Jun. 30, 2011	Jun. 30, 2012	Dec. 31, 2011		Oct. 03, 2011	Jun. 30, 2012 Peerset	Jul. 31, 2011 Peerset	Jun. 30, 2011 Benchmark	Jun. 30, 2012 Benchmark	Dec. 31, 2011 Benchmark	Jun. 30, 2012 Hyro Limited	Jun. 22, 2012 Hyro Limited
Business Acquisition, Contingent Consideration [Line Items]
Common stock price per share									$ 0.60
Recognized revenue per share of common stock									$ 1.00
Increased fair value of acquisition-related contingent								$ 3,208
Payment of working capital liability	6,517							357
Working capital liability difference offset to Merger and acquisition and investor relations expenses								762
Cash paid for acquisition of business					2,750		1,375					1,211
Acquisition liabilities, current portion		17,032	8,648	[1]		200			4,047	3,960	6,461	6,461
Value of shares issuable for settlement of contingent acquisition liabilities											$ 14,346
Shares issuable for settlement of contingent acquisition liabilities											1,838,134

[1] The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012		Jun. 30, 2011
Operating Activities:
Net loss	$ (175,961)		$ (32,304)
Adjustments to reconcile net loss to net cash used by operating activities:
Net loss from discontinued operations	51,894		1,415
Provision for doubtful accounts	7,029		131
Depreciation	2,875		2,780
Amortization of intangible assets	5,479		2,689
Amortization of deferred financing costs and debt discount	208		94
Loss on impairment of goodwill	55,718
Loss on impairment of notes receivable	6,474
Realized loss on investment	1,050
Loss on disposal of property plant and equipment	948
Derivative expense (income)	2,986		(3,042)
Less: merger and acquisition expenses			6,517
Non-cash stock based compensation	15,557		6,410
Non-cash warrants for services	530		1,559
Non-cash stock for services	50
Changes in assets and liabilities:
Accounts receivable	(800)		(2,904)
Unbilled revenue	(1,692)		523
Inventory	(149)		(268)
Other assets	(1,088)		(2,350)
Accounts payable	3,763		(37)
Accrued expenses	9,943		4,082
Income tax payable	300		(459)
Other liabilities	(2,133)		4,980
Total adjustments	158,942		22,120
Net cash used by operating activities- continuing operations	(17,020)		(10,184)
Net cash used by operating activities- discontinued operations	(8,116)		(1,075)
Net cash used by operating activities	(25,136)		(11,259)
Investing Activities:
Cash paid into investment	(149)		(307)
Cash paid in acquisitions	(5,810)		(120,591)
Cash received in acquisitions			16,860
Receipt of payment on notes receivable			877
Merger and acquisition expenses			(6,517)
Purchase of equipment	(1,824)		(2,266)
Net cash used by investing activities- Continuing operations	(7,783)		(111,944)
Net cash used by investing activities- Discontinued operations	(144)		(24)
Net cash used by investing activities	(7,927)		(111,968)
Financing Activities:
Proceeds from private placement, net	27,174
Proceeds from exercise of stock options	483		837
Payments made to restricted cash accounts and letters of credit	(3,495)		(143)
Proceeds from exercise of warrants			2,982
Proceeds from issuance of secured notes			15,000
Payments of secured notes	(2,889)		(751)
Repayments of notes payable	(2,225)
Payment on capital leases	(65)		(248)
Net cash from financing activities- Continuing operations	18,983		17,677
Net cash used by financing activities- Discontinued operations			84
Net cash from financing activities	18,983		17,761
Effect of exchange rate changes on cash	413		2,043
Net increase (decrease) in cash and cash equivalents	(13,667)		(103,423)
Cash and cash equivalents - beginning of period	44,229	[1]	140,585
Cash and cash equivalents - end of period	30,562		37,162
Cash paid during the period for:
Income taxes	222		439
Interest	1,273		660
Non-cash investing and financing activities:
Non-cash issuances of stock for acquisitions (2,717,530 and 7,582,056 shares issued, respectively)	$ (15,273)		$ (76,218)

[1] The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Common stock, par value	$ 0.0001	$ 0.0001	[1]
Common stock, authorized	150,000,000	150,000,000	[1]
Common stock, issued	56,622,201	46,342,851	[1]
Common stock, outstanding	56,622,201	46,342,851	[1]

[1] The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

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Inventory

6 Months Ended

Jun. 30, 2012

Inventory

(9) Inventory

Inventory is valued at the lower of cost (first-in, first-out method) or market and is comprised of finished goods. On a quarterly basis, we review inventory quantities on hand and analyze the provision for excess and obsolete inventory based primarily on product age in inventory and our estimated sales forecast, which is based on sales history and anticipated future demand. As of June 30, 2012 and December 31, 2011, our reserves for excess and obsolete inventory were $144 and $146, respectively.

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Sezmi Corporation Summary of Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed at Date of Acquisition (Detail) (Sezmi, USD $) In Thousands, unless otherwise specified	Dec. 30, 2011
Sezmi
Business Acquisition [Line Items]
Current assets	$ 138
Property and equipment	400
Software	1,000
Goodwill	27,108
Total assets acquired	28,646
Current liabilities	1,646
Net assets acquired	$ 27,000

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Discontinued Operations - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended	6 Months Ended		1 Months Ended	3 Months Ended	6 Months Ended		1 Months Ended	6 Months Ended
	Oct. 03, 2011	Jun. 30, 2012	Jun. 30, 2012	Dec. 31, 2011	Jun. 26, 2012 Content Solutions	Jun. 30, 2012 Content Solutions	Jun. 30, 2012 Content Solutions	Jun. 26, 2012 Content Solutions Maximum	Dec. 30, 2011 Sezmi	Jun. 30, 2012 Sezmi
Discontinued Operations [Line Items]
Cash consideration in acquisition	$ 2,750,000								$ 7,850,000
Issued as a consideration for acquisition, shares	42,500									879,396
Issued as a consideration for acquisition, value	320,000		15,273,000
Issued as a consideration for acquisition, per share	$ 7.53
Contingent consideration for acquisition	4,284,000	20,470,000	20,470,000	16,652,000
Earn-outs consideration from divestiture of business								18,800,000
Cash received from divestiture of business					1,000,000					2,950,000
Loss from Disposal		(44,040,000)	(44,040,000)			(15,462,000)	(15,462,000)			(28,578,000)
Contingent consideration for acquisition, liabilities									16,525,000
Contingent consideration for acquisition, owned to shareholders									$ 2,625,000
Share held in escrow period									12 months

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 13, 2012
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Trading Symbol	KITD
Entity Registrant Name	KIT DIGITAL, INC.
Entity Central Index Key	0001076700
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		57,097,255

XML

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets

(10) Goodwill and Intangible Assets

The change in the carrying amount of goodwill is as follows:

	Goodwill
Balance as of December 31, 2011	$	206, 101
Acquisitions- Hyro		15,390
Impairment charge of goodwill		(55,718	)
Other adjustments, net		1,846
Balance as of June 30, 2012	$	167,619

We evaluate the carrying value of our goodwill annually at the end of December and whenever events or circumstances make it more likely than not that an impairment may have occurred. Accounting standard on Goodwill and Other Intangible Assets prescribes a two-step method for determining goodwill impairment. In the first step, we compare the estimated fair value of each reporting unit to its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds the estimated fair value, step two is completed to determine the amount of the impairment loss. Step two requires the allocation of the estimated fair value of the reporting unit to the assets, including any unrecognized intangible assets, and liabilities in a hypothetical purchase price allocation. Any remaining unallocated fair value represents the implied fair value of goodwill, which is compared to the corresponding carrying value of goodwill to compute the goodwill impairment amount.

As part of our impairment analysis for each reporting unit, we estimate the fair value of each unit utilizing the income approach and market approach. The income approach requires management to estimate a number of factors for each reporting unit, including projected future operating results, economic projections, anticipated future cash flows, discount rates, and the allocation of shared service or corporate items. The market approach was used as a test of reasonableness of the conclusions reached in the income approach. The market approach estimates fair value using comparable marketplace fair value data from within a comparable industry grouping.

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. During the second quarter ended June 30, 2012, our market capitalization declined significantly. As this measure is our significant indicator of the fair value of our business unit, management considered this decline to be a triggering event, requiring us to perform an interim impairment analysis. As of June 30, 2012, we completed this interim analysis and our management has concluded that an impairment charge of $55,718 should be recognized. This is a noncash charge and has been recorded in the second quarter ended June 30, 2012. As of December 31, 2011, approximately $32,169 of goodwill was part of discontinued operations and is included in long-term assets held for sale. (See Note 25).

The determination of the fair value of the reporting units and the allocation of that value to individual assets and liabilities within those reporting units requires management to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the selection of appropriate peer group companies; control premiums appropriate for acquisitions in the industries in which we compete; the discount rate; terminal growth rates; and forecasts of net sales, operating income, depreciation and amortization and capital expenditures. Although we believe our estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on the fair value of the reporting units.

Intangible assets include the following:

	June 30, 2012
	Weighted Average Remaining Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intangible assets with determinable lives:
Software		4.0	$	15,862	$	(7,472	)	$	8,390
Customer list		7.0		64,905		(15,687	)		49,218
Trademarks		4.0		621		(561	)		60
Other		2.0		1,363		(726	)		637
Total			$	82,751	$	(24,446	)	$	58,305

	December 31, 2011
	Weighted Average Remaining Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intangible assets with determinable lives:
Software		4.0	$	15,861	$	(6,168	)	$	9,693
Customer list		7.0		64,905		(11,654	)		53,251
Trademarks		3.5		621		(537	)		84
Other		2.5		1,362		(555	)		807
Total			$	82,749	$	(18,914	)	$	63,835

Amortization expense on intangible assets for the three months ended June 30, 2012 and 2011 were $2,735 and $1,403, respectively and for the six months ended June 30, 2012 and 2011 were $5,479 and $2,689 respectively. No impairment charges were recorded for the three and six months ended June 30, 2012 and 2011.

Estimated future annual amortization expense as of June 30, 2012 is as follows:

	Software		Customer List		Trademarks		Other		Total
2012	$	1,304	$	4,000	$	8	$	184	$	5,496
2013		2,407		7,947		17		344		10,715
2014		2,121		7,921		17		110		10,169
2015		1,851		7,780		17		-		9,648
2016		706		7,196		1		-		7,903
Thereafter		-		14,374		-		-		14,374
Totals	$	8,389	$	49,218	$	60	$	638	$	58,305

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Summary of Different Types of Restricted Stocks (Detail) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items]
Restricted stock units	1,170,593
Time Based Restricted Stock and Restricted Stock Units
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items]
Restricted stock units	204,423
Performance-contingent restricted stock units ("PCRSUs") with market-based vesting conditions
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items]
Restricted stock units	425,000
Restricted Stock With Vesting Conditions
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items]
Restricted stock units	541,170

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Income Taxes - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Taxes [Line Items]
Income tax rate			9.90%	2.30%
Income tax benefit (expense)	$ 1,319	$ (796)	$ 1,259	$ (910)

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenue	$ 51,149	$ 44,952	$ 107,267	$ 75,739
Variable and direct third party costs:
Cost of goods and services (exclusive of depreciation shown separately below)	16,412	9,799	33,272	17,841
Hosting, delivery, reporting and content costs	3,114	2,650	6,203	3,883
Direct third party creative production costs	396	317	1,013	682
Total variable and direct third party costs	19,922	12,766	40,488	22,406
Gross profit	31,227	32,186	66,779	53,333
General and administrative expenses:
Compensation, travel and associated costs (including non-cash stock-based compensation of $8,254, $4,384, $15,557 and $6,410, respectively)	44,823	21,108	84,400	32,443
Legal, accounting, audit and other professional service fees	3,752	767	4,535	1,344
Office, marketing and other corporate costs	11,715	4,405	18,929	8,145
Merger and acquisition and investor relations (income) expenses	(2,241)	10,916	2,249	16,166
Depreciation and amortization	4,194	3,096	8,354	5,469
Restructuring charges	3,349	34	3,349	3,352
Integration expenses		9,710		18,398
Impairment of goodwill	55,718		55,718
Total general and administrative expenses	121,310	50,036	177,534	85,317
Loss from operations	(90,083)	(17,850)	(110,755)	(31,984)
Interest income	1	69	52	141
Interest expense	(1,203)	(383)	(1,892)	(636)
Amortization of deferred financing costs and debt discount	(104)	(76)	(208)	(94)
Derivative income (expense)	(3,173)	433	(2,986)	3,042
Other expense	(9,333)	(378)	(9,537)	(448)
Net loss before income taxes	(103,895)	(18,185)	(125,326)	(29,979)
Income tax benefit (expense)	1,319	(796)	1,259	(910)
Net loss from continuing operations	(102,576)	(18,981)	(124,067)	(30,889)
Loss from discontinued operations	(48,506)	(822)	(51,894)	(1,415)
Net loss	(151,082)	(19,803)	(175,961)	(32,304)
Basic and diluted net loss from continuing operations per common share	$ (1.99)	$ (0.47)	$ (2.56)	$ (0.81)
Basic and diluted net loss from discontinued operations per common share	$ (0.95)	$ (0.02)	$ (1.07)	$ (0.03)
Basic and diluted net loss per common share	$ (2.94)	$ (0.49)	$ (3.63)	$ (0.84)
Basic and diluted weighted average common shares outstanding	51,418,613	40,063,874	48,513,809	38,316,369
Comprehensive loss:
Net loss	(151,082)	(19,803)	(175,961)	(32,304)
Foreign currency translation	(2,571)	(934)	(1,022)	(76)
Change in unrealized gain on investments, net	(245)	7	(199)	56
Comprehensive loss:	$ (153,898)	$ (20,730)	$ (177,182)	$ (32,324)

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Net income (loss) per share

6 Months Ended

Jun. 30, 2012

Net income (loss) per share

(4) Net income (loss) per share

Basic net income per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted net income per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential common stock. Potential common stock consists of shares issuable pursuant to stock options, warrants and restricted stock awards (“RSAs”).

The following table sets forth the components used in the computation of basic and diluted net loss per common share (in thousands, except share and per share data):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2012			2011			2012			2011
Numerator:
Net loss from continuing operations	$	(102,576	)	$	(18,981	)	$	(124,067	)	$	(30,889	)
Loss from discontinued operations		(48,506	)		(822	)		(51,894	)		(1,415	)
Net loss	$	(151,082	)	$	(19,803	)	$	(175,961	)	$	(32,304	)
Denominator:
Denominator for basic net loss per common share		51,418,613			40,063,874			48,513,809			38,316,369
Effect of dilutive securities:
Stock options		-			-			-			-
Warrants		-			-			-			-
RSAs		-			-			-			-
Denominator for diluted net income (loss) per common share		51,418,613			40,063,874			48,513,809			38,316,369
Basic net loss from continuing operations per common share	$	(1.99	)	$	(0.47	)	$	(2.56	)	$	(0.81	)
Basic net loss from discontinued operations per common share		(0.95	)		(0.02	)		(1.07	)		(0.03	)
Basic net loss per common share	$	(2.94	)	$	(0.49	)	$	(3.63	)	$	(0.84	)
Diluted net loss from continuing operations per common share	$	(1.99	)	$	(0.47	)	$	(2.56	)	$	(0.81	)
Diluted net loss from discontinued operations per common share		(0.95	)		(0.02	)		(1.07	)		(0.03	)
Diluted net loss per common share	$	(2.94	)	$	(0.49	)	$	(3.63	)	$	(0.84	)

All equivalent shares underlying stock options, warrants and RSAs were excluded from the calculation of diluted loss per share because we had net losses for all periods presented and therefore equivalent shares would have an anti-dilutive effect.

Potentially dilutive shares excluded as a result of the effects being anti-dilutive were as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2012		2011		2012		2011
Stock options		136,370		225,857		1,891,738		281,761
Warrants		77,860		1,013,974		141,971		1,359,444
RSAs		273,432		91,927		273,433		91,927
Total dilutive shares		487,662		1,331,758		2,307,142		1,733,132

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2012

Recent Accounting Pronouncements

(3) Recent Accounting Pronouncements   

In May 2011, the Financial Accounting Standards Board (FASB) issued a new accounting standard update which amends the fair value measurement guidance and includes some enhanced disclosure requirements. The most significant change in disclosures is an expansion of the information required for Level 3 measurements based on unobservable inputs. The standard is effective for fiscal years beginning after December 15, 2011. We adopted this standard in the first quarter of 2012 and the adoption of the guidance did not have a material impact on our financial statements and disclosures.

In June 2011, the FASB issued a new accounting standard which eliminates the current option to report other comprehensive income and its components in the statement of stockholders’ equity. Instead, an entity will be required to present items of net income and other comprehensive income in one continuous statement or in two separate, but consecutive, statements. The standard is effective for fiscal years beginning after December 15, 2011. We adopted this standard in the first quarter of 2012. There is no impact to our consolidated financial results as the amendments relate only to changes in financial statement presentation.

In September 2011, the FASB issued a revised accounting standard, which is intended to reduce the cost and complexity of the annual goodwill impairment test by providing entities an option to perform a “qualitative” assessment to determine whether further impairment testing is necessary. Specifically, an entity has the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. We adopted this standard during the first quarter of 2012. The adoption of the standard did not have material impact on our consolidated financial

statements.

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Derivative Liabilities

6 Months Ended

Jun. 30, 2012

Derivative Liabilities

(15) Derivative Liabilities

On May 8, 2008, the Company entered into a Securities Purchase Agreement pursuant to which it sold 2,142,858 units to 35 accredited investors, each unit comprising of one share of common stock plus one warrant to purchase one share of common stock. The units were sold at a price of $7.00 per unit for aggregate gross proceeds of $15,000. The warrants have an exercise price of $11.90 per share and a term of five years. The warrants provide the investors with full ratchet anti-dilution protection with relation to the exercise price of each warrant.

On May 15, 2012, the Company entered into a definitive Securities Purchase Agreement to raise $29,190 in gross proceeds, before deducting placement agents’ fees and other estimated offering expenses, in a private placement of (i) 7,000,000 shares of the Company’s common stock and (ii) warrants to purchase 5,250,000 shares of Common Stock (issued on May 17, 2012) with an effective strike price of $5.00. After deducting the fees of the placement agent and other estimated offering expenses, the net proceeds to the Company from the private placement were approximately $27,174.

During the six months ended June 30, 2012 and in conjunction with this share issuance, the Company record a liability of approximately $10,512 representing the estimated amount of additional shares to be granted as part of the stock price reset provision in the stock purchase agreement. This amount consists of approximately 2,588,408 shares and approximately $3,000 in cash to be paid on or about August 13, 2012. See Note 17 and 19.

The warrants issued as part of the Securities Purchase Agreement contain an embedded anti-dilution provision which is required to be carried as a derivative liability at fair value. On May 17, 2012, we recorded the fair value of $14,333 as a derivative liability and as a reduction in additional paid-in capital.

The Warrants were valued using a Monte Carlo simulation model. See Note 17 and 19.

In relation to the May 2008 warrants the actual number of common shares indexed to the warrants at December 31, 2011 and June 30, 2012 were 251,021 and 421,382, respectively. Upon the issuance of the shares in the May 2012 private placement at $4.17 per share, the anti-dilution provision in the May 2008 warrants was triggered and resulted in the reduction of the exercise price to $4.17 from $7.00 and an increase of 170,361 shares under these warrants.

In relation to the May 2012 warrants, the actual number of common shares indexed to the warrants at May 15, 2012 and June 30, 2012 were 5,250,000 and 5,250,000, respectively.

We estimate fair values of derivative financial instruments using various techniques (and combinations thereof) that are considered to be consistent with the objective measuring fair values. In selecting the appropriate technique, we consider, among other factors, the nature of the instrument, the market risks that it embodies and the expected means of settlement. For less complex derivative instruments, such as free-standing warrants, we generally use the Black-Scholes model, adjusted for the effect of dilution, because it embodies all of the requisite assumptions (including trading volatility, estimated terms, dilution and risk free rates) necessary to fair value these instruments.

Estimating fair values of derivative financial instruments requires the development of significant and subjective estimates that may, and are likely to, change over the duration of the instrument with related changes in internal and external market factors. In addition, option-based techniques (such as Black-Scholes model) are highly volatile and sensitive to changes in the trading market price of our common stock. Since derivative financial instruments are initially and subsequently carried at fair values, our income (expense) going forward will reflect the volatility in these estimate and assumption changes. Under the terms of the new accounting standard, increases in the trading price of our common stock and increases in fair value during a given financial quarter result in the application of non-cash derivative expense. Conversely, decreases in the trading price of our common stock and decreases in trading fair value during a given financial quarter result in the application of non-cash derivative income.

The following table summarizes the components of derivative liabilities as of June 30, 2012 and December 31, 2011 for the May 2008 warrants:

	June 30,  2012			December 31,  2011
Fair value of warrants with anti-dilution provisions	$	(604	)	$	(557	)
Significant assumptions (or ranges):
Trading market values  (1)	$	4.29		$	8.45
Term (years) (3)		0.86			1.35
Volatility   (1)		90.00	%		57.00	%
Risk-free rate   (2)		0.27	%		0.25	%
Effective Exercise price  (3)	$	4.17		$	7.00

The following table summarizes the components of derivative liabilities as of June 30, 2012 and the measurement date of May 17, 2012 for the May 2012 warrants:

	June 30,  2012			May 17,  2012
Fair value of warrants with anti-dilution provisions	$	(17,273	)	$	(14,333	)
Significant assumptions (or ranges):
Trading market values  (1)	$	4.29		$	3.50
Term (years) (3)		5.38			5.50
Volatility   (1)		90.00	%		90.00	%
Risk-free rate   (2)		0.79	%		0.78	%
Effective Exercise price  (3)	$	5.00		$	5.00

Fair value hierarchy:

(1) Level 1 inputs are quoted prices in active markets for identical assets and liabilities, or derived there from. Our trading market values and the volatilities that are calculated thereupon are level 1 inputs.

(2) Level 2 inputs are inputs other than quoted prices that are observable. We use the current published yields for zero-coupon US Treasury Securities, with terms nearest the remaining term of the warrants for our risk free rate.

(3) Level 3 inputs are unobservable inputs. Inputs for which any parts are level 3 inputs are classified as level 3 in their entirety. The remaining term used equals the remaining contractual term as our best estimate of the expected term and the effective exercise price which is based on the stated exercise price adjusted for anti-dilution provisions.

The effects on our income (expense) associated with changes in the fair values of our derivative financial instruments for the three months ended June 30, 2012 and 2011 were ($3,173) and $433, respectively. For the six months ended June 30, 2012 and 2011, effects on our income (expense) associated with changes in the fair values of our derivative financial instruments were ($2,986) and $3,042, respectively.

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Acquisitions

6 Months Ended

Jun. 30, 2012

Acquisitions

(11) Acquisitions 

Hyro Acquisition

On June 22, 2012, the Company acquired certain technology assets through the purchase of stock of certain subsidiaries of Hyro Limited, an Australian technology company that delivers enterprise level online and mobile solutions to the telecommunications, broadcast, retail, finance and government sectors. These technology assets will be a part of KIT digital’s continued focus on video software and service offerings in the Asia-Pacific region and to further benefit our existing tier-one customer base. KIT digital has elected to pay consideration of $1,211 in cash and 1,838,134 shares of KIT digital common stock valued at $7,628, subject to adjustment under certain conditions. The number of shares of the Company’s common stock being paid as consideration to Hyro may be increased depending on the price of such common stock in the future, an acquisition liability of $6,461 has been recorded for this provision, See Note 14.  

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.

Current assets	$	3,107
Property and equipment		818
Purchased Software		151
Goodwill		15,390
Total assets acquired		19,466
Current liabilities		4,166
Net assets acquired	$	15,300

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Summary of Restructuring Charges for Plan Approved in 2010 and 2011 (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 220	$ 1,743
Additions	3,349	4,007
Reversal		(654)
Cash payments	(726)	(4,876)
Ending Balance	2,843	220
Employee Termination Costs
Restructuring Cost and Reserve [Line Items]
Beginning Balance		1,212
Additions	3,349	3,973
Reversal		(654)
Cash payments	(587)	(4,531)
Ending Balance	2,762
Contract Settlements
Restructuring Cost and Reserve [Line Items]
Beginning Balance	5	13
Cash payments	(5)	(8)
Ending Balance		5
Facility Closing Costs
Restructuring Cost and Reserve [Line Items]
Beginning Balance	215	518
Additions		34
Cash payments	(134)	(337)
Ending Balance	$ 81	$ 215

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Accounts Receivable

6 Months Ended

Jun. 30, 2012

Accounts Receivable

(7) Accounts Receivable

Trade accounts receivable are stated net of allowances for doubtful accounts. Specific customer provisions are made when a review of significant outstanding amounts, customer creditworthiness and current economic trends, indicates that collection is doubtful. In addition, provisions are made at differing amounts, based upon the balance and age of the receivable and the Company’s historical collection experience. Trade accounts are charged off against the allowance for doubtful accounts or expense when it is probable the accounts will not be recovered. The allowance for doubtful accounts as of June 30, 2012 and December 31, 2011 was $2,821 and $2,943, respectively.

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Acquisitions - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified					1 Months Ended
	Jun. 30, 2012	Dec. 31, 2011		Oct. 03, 2011	Jun. 22, 2012 Hyro Limited	Jun. 30, 2012 Hyro Limited
Business Acquisition [Line Items]
Cash paid for acquisition of business				$ 2,750	$ 1,211
Share of common stock issued to acquired entity					1,838,134
Total value share of common stock issued to acquired entity					7,628
Acquisition liabilities, current portion	$ 17,032	$ 8,648	[1]		$ 6,461	$ 6,461

[1] The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

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Cash and Cash Equivalents

6 Months Ended

Jun. 30, 2012

Cash and Cash Equivalents

(5) Cash and Cash Equivalents

We consider all highly liquid investments with original maturities of ninety days or less when purchased to be cash and cash equivalents.  Cash and cash equivalents in financial institutions outside the United States as of June 30, 2012 was $5,333 and $24,379 for December 31, 2011.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2012

Fair Value of Financial Instruments

(6) Fair Value of Financial Instruments

Fair value is the amount that would be received upon sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Accounting Standards Codification (“ASC”) Topic 820 also establishes a fair value hierarchy which prioritizes the types of inputs to valuation techniques that companies may use to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1). The next highest priority is given to inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly (Level 2). The lowest priority is given to unobservable inputs in which there is little or no market data available and which require the reporting entity to develop its own assumptions (Level 3).

The assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy are Investments and Derivative Liabilities. Investments are measured using net asset value as a practical expedient (Level 2). See Note 15 for fair value hierarchy on the Derivative Liabilities.

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Concentration of Credit Risk

6 Months Ended

Jun. 30, 2012

Concentration of Credit Risk

(8) Concentration of Credit Risk

Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable. We place our cash and cash equivalents with high credit quality institutions to limit credit exposure. We believe no significant concentration of credit risk exists with respect to these balances. The amount held in foreign currencies as of June 30, 2012 and December 31, 2011 was $4,869 and $9,329, respectively. The amount of cash in excess of FDIC insured amounts as of June 30, 2012 and December 31, 2011, was $29,785 and $43,366, respectively.

Concentrations of credit risk with respect to trade accounts receivable are limited due to the nature of our customers who are dispersed across many industries and geographic regions. As of June 30, 2012 and December 31, 2011, no customer accounted for 10% or more of our trade accounts receivable. As of the three and six months ended June 30, 2012 and for the three months ended June 30, 2011, no customer accounted for 10% or more of the revenue for the respective period. For the three months ended June 30, 2011, we had one customer who accounted for approximately 11% of our revenue for the quarter. We routinely assess the financial strength of customers and, based upon factors concerning credit risk, establish an allowance for doubtful accounts. We believe that accounts receivable credit risk exposure beyond such allowance is limited.

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Secured Notes Payable (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Secured note payable	$ 15,386	$ 18,274
Less: current portion	(7,298)	(6,406)	[1]
Secured notes payable, net of current	8,088	11,868	[1]
Secured Note Issued April Twenty Ten
Debt Instrument [Line Items]
Secured note payable	2,500	3,388
Secured Note Issued June Twenty Ten
Debt Instrument [Line Items]
Secured note payable	565	740
Secured Note Issued May Twenty Eleven
Debt Instrument [Line Items]
Secured note payable	$ 12,321	$ 14,146

[1] The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

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Summary of Restructuring Charges (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Restructuring charge net	$ 3,349	$ 34	$ 3,349	$ 3,352
Employee Termination Costs
Restructuring charge net	3,349		3,349	3,318
Facility Closing Costs
Restructuring charge net		$ 34		$ 34

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Secured Notes Payable - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended				1 Months Ended	2 Months Ended	1 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	May 08, 2008	May 31, 2011 Secured Note Issued May Twenty Eleven Installment	Jun. 30, 2011 Secured Note Issued May Twenty Eleven	Jun. 30, 2010 Secured Note Issued June Twenty Ten Installment	Apr. 30, 2010 Secured Note Issued April Twenty Ten Installment
Debt Instrument [Line Items]
Proceeds from issuance of secured notes		$ 15,000			$ 15,000		$ 1,000	$ 5,000
Secured note, interest rate					13.60%		12.70%	12.70%
Secured note, maturity date					Jul. 01, 2014		Sep. 01, 2013	Jul. 01, 2013
Interest paid	1,273	660				187	5	22
Monthly Interest payment					122		8	42
Interest only payment period					7 months		9 months	9 years
Commencing date of payments of principal and interest					Feb. 01, 2012		Apr. 01, 2011	Feb. 01, 2011
Number of consecutive payments					30		30	30
Periodic Payment of principal and interest amount					561		38	188
Final payment upon maturity					1,149		108	538
Warrant entitling to purchase shares of common stock	1,017,167		1,361,935		141,083		8,480	40,976
Common stock price per share					$ 13.29		$ 13.76	$ 14.24
Life of common stock warrant				5 years	7 years		5 years	5 years
Expiration date for common stock warrant					May 15, 2018		Jun. 14, 2015	Apr. 15, 2015
Debt discount related to warrants issued					$ 1,081		$ 27	$ 183

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Other Receivable - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	1 Months Ended	3 Months Ended	6 Months Ended
	Dec. 31, 2010 Installment	Jun. 30, 2012	Jun. 30, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan receivable on sale of subsidiary	$ 10,847
Maturity Date	Jan. 28, 2015
Number of Installments	48
Installments payments amount	226
Loan receivable on sale of subsidiary, Net		2,158	2,158
Loan receivable on sale of subsidiary, reserves		6,474	6,474
Loss on impairment of notes receivable		6,474	6,474
Receivables as a consideration of sale of business		8,200
Current assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables as a consideration of sale of business		$ 1,690

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Digital Media Production Summary of Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed at Date of Acquisition (Detail) (Digital Media Production, USD $) In Thousands, unless otherwise specified	Oct. 03, 2011
Digital Media Production
Business Acquisition [Line Items]
Current assets	$ 971
Property and equipment	1
Intangible assets - customer list	500
Goodwill	6,289
Total assets acquired	7,761
Current liabilities	(265)
Deferred tax liability	(95)
Deferred revenue - long term	(41)
Other long-term liabilities	(6)
Total liabilities	(407)
Net assets acquired	$ 7,354

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Legal Matters

6 Months Ended

Jun. 30, 2012

Legal Matters

(26) Legal Matters

Other than as set forth below, we are not a party to any pending legal proceeding nor is our property the subject of a pending legal proceeding that is not in the ordinary course of business or otherwise material to the financial condition of our business.

In December 2007, two former consultants of ROO Media Corporation (ROO Media) (currently KIT Media Corporation) sued that entity together with ROO Group, Inc. (now KIT digital, Inc.) and its founder and former Vice Chairman and ROO Media’s former President and Chief Operating Officer in New York Supreme Court, New York County, New York, alleging breach of an oral employment agreement, fraudulent inducement and other claims relating to the plaintiffs’ employment at ROO Media. In March 2009, the court dismissed all of plaintiffs’ claims except their breach of contract claim on the grounds that it is based on an alleged oral agreement, which, according to the court, plaintiffs may be able to prove. In July 2011, following the completion of discovery, defendants made a motion for summary judgment dismissing the remaining claim in the case. By decision and order dated July 2, 2012, the court denied defendants’ motion. Trial was scheduled for July 23, 2012 but was adjourned to October 9, 2012. On August 9, 2012, defendants filed a motion for leave to reargue the court’s denial of their summary judgment motion, and oral argument on such motion has been scheduled for August 24, 2012. We believe that there is no merit to this suit and we intend to continue to defend vigorously.

In November 2007, our wholly-owned subsidiary, ROO HD, Inc., now KIT HD, Inc. (“KIT HD”), was named as the defendant in a purported class action lawsuit entitled Julie Vittengl et al. vs. ROO HD, Inc., in New York Supreme Court, Saratoga County, New York. The suit, brought by four former employees of Wurld Media, Inc. (“Wurld”), purportedly on behalf of themselves and “others similarly situated,” claims that KIT HD’s acquisition of certain assets of Wurld was a fraudulent conveyance and that KIT HD is the alter-ego of Wurld. Plaintiffs seek the appointment of a receiver to take charge of our property in constructive trust for plaintiffs and payment of plaintiffs’ unpaid wages and costs of suit, both in an unspecified dollar amount. KIT HD filed its answer to the complaint in January 2008. In December 2009, plaintiffs served an amended complaint, dropping the class action allegations and joined by 15 additional former employees of Wurld, added us as a defendants and purport to seek to enforce judgments plaintiffs had obtained against Wurld as the result of an arbitration against Wurld in March 2009. In February 2010, we and KIT HD answered the amended complaint, and the case is currently in discovery. We believe that the suit is without merit, and we and KIT HD intend to defend ourselves vigorously.

In May 2009, a former employee of Wurld filed suit against ten shareholders of Wurld, Wurld, ROO HD (now KIT HD), and ROO Group, Inc. (now KIT digital, Inc.), in New York Supreme Court, Albany County, New York. Plaintiff seeks to hold the ten largest shareholders of Wurld liable under Business Corporation Law §630, for $100 in wages that Wurld allegedly failed to pay plaintiff. She further asserts a variety of claims based on the allegation that KIT HD’s acquisition of certain assets of Wurld was a fraudulent conveyance, and that KIT HD is the successor to Wurld and liable for Wurld’s debts. Based on these allegations, plaintiff seeks payment of her wages, the (unspecified) fair market value of her shares of stock in Wurld, rescission of the asset purchase agreement between Wurld and KIT HD, plus attorney’s fees. In October 2009, the court dismissed plaintiff's claims against three shareholder/defendants on the grounds that BCL §630 does not apply to Wurld because it is not a New York corporation, a decision that plaintiff unsuccessfully appealed. Consequently, all of plaintiff’s claims against the Wurld shareholder defendants are, or will be, finally dismissed; and this case should move into the discovery phase with respect to plaintiff’s claims against us and KIT HD. We and KIT HD have been served and answered. We believe that this lawsuit is without merit and we intend to defend ourselves vigorously.

On May 29, 2012, McHardy, a shareholder, filed a purported securities class action complaint against the Company and certain former executive officers alleging claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder in connection with purchases of our common stock between November 8, 2011 and May 3, 2012.  The complaint alleges, among other things, that certain prior statements regarding the Company’s past and expected future results of operations were false and misleading. We believe that this lawsuit is without merit and we intend to defend ourselves vigorously.

On July 13, 2012, Stephen Conrad, through Pershing LLC, a shareholder, filed a purported shareholder derivative complaint against the Company and certain current and former Board members and executive officers alleging breaches of fiduciary duties and other misconduct from November 8, 2011 to the present that have caused substantial losses and damages to the Company.  We believe that this lawsuit is without merit and we intend to defend ourselves vigorously.

On July 18, 2012, Venkata, a shareholder, filed a purported shareholder derivative complaint against the Company and certain current and former Board members and executive officers alleging breaches of fiduciary duties and in connection with prior statements regarding the Company’s past and expected future results of operations from November 8, 2011 to the present that have caused substantial losses and damages to the Company.  We believe that this lawsuit is without merit and we intend to defend ourselves vigorously.

The Company and its former chairman and chief executive officer have been responding to SEC subpoenas seeking, in general, documents related to June 2010 transactions in Company common stock and a related Form 4 filing by our former chairman and chief executive officer that reported a purchase of 54,745 shares of Company common stock, as well as certain emails that may have been deleted from his computer but were maintained in the Company’s system.  We are cooperating with the SEC in its investigation, however, we cannot be certain of the scope or outcome of the investigation.  Also, we have disagreements with our former chairman and chief executive officer concerning amounts purportedly owed him under arrangements entered into prior to his departure from those roles earlier this year.  It is uncertain whether those disagreements will be resolved or whether litigation may be filed.

The Audit Committee of our Board of Directors has retained independent professional advisors in connection with an investigation it is directing in respect of certain transactions that gave rise to impairments that have been taken by the Company as well as some of the foregoing issues.

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Potentially Dilutive Shares Excluded as Result of Effects Being Anti-Dilutive (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive shares	487,662	1,331,758	2,307,142	1,733,132
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive shares	136,370	225,857	1,891,738	281,761
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive shares	77,860	1,013,974	141,971	1,359,444
RSAs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive shares	273,432	91,927	273,433	91,927

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Secured Notes Payable

6 Months Ended

Jun. 30, 2012

Secured Notes Payable

(13) Secured Notes Payable

	June 30, 2012			December 31, 2011
April 2010 secured note payable for $5,000, net of discount of $55 and $84, respectively	$	2,500		$	3,388
June 2010 secured note payable for $1,000, net of discount of $9 and $13, respectively		565			740
May 2011 secured note payable for $15,000, net of discount of $683 and $854, respectively		12,321			14,146
		15,386			18,274
Less: current portion		(7,298	)		(6,406	)
Secured notes payable, net of current	$	8,088		$	11,868

In May 2011, we received $15,000 in gross proceeds from the issuance of a note to a third party investor, as called for in the negotiated structure of our acquisition of ioko, as a means of financing the additional accounts receivable acquired. Interest is payable monthly in advance at 13.6% per year and matures on July 1, 2014.  We paid total interest only of $187 for May and June 2011 and agreed to pay interest only of $122 per month for the next seven months. Commencing on February 1, 2012, payments for principal and interest are due in thirty equal consecutive payments of $561. A final balloon payment of $1,149 will be due and payable upon maturity. The note is secured by our property, including accounts receivable and inventory.  In conjunction with the borrowing, we issued to the lender a warrant entitling it to purchase, for $13.29 per share, 141,083 shares of our common stock with a seven year term through May 15, 2018. A debt discount of $1,081 was recorded related to these warrants and is being amortized over the term of the loan.

In June 2010, we received $1,000 in gross proceeds from the issuance of a note to a third party investor. Interest is payable monthly in advance at 12.7% per year and matures on September 1, 2013. We paid interest only of $5 for June 2010 and agreed to pay interest only of $8 per month for the next nine months. Commencing on April 1, 2011 payments for principal and interest are due in thirty equal consecutive payments of $38. A final balloon payment of $108 will be due and payable upon maturity. The note is secured by the Company’s property, including accounts receivable and inventory. In conjunction with the borrowing, we issued to the lender a warrant entitling it to purchase, for $13.76 per share, 8,480 shares of our common stock with a five year term through June 14, 2015. A debt discount of $27 was recorded related to these warrants and is being amortized over the term of the loan.

In April 2010, we received $5,000 in gross proceeds from the issuance of a note to a third party investor. Interest is payable monthly in advance at 12.7% per year and matures on July 1, 2013. We paid interest only of $22 for April 2010 and agreed to pay interest only of $42 per month for the next nine months. Commencing on February 1, 2011, payments for principal and interest are due in thirty equal consecutive payments of $188. A final balloon payment of $538 will be due and payable upon maturity. The note is secured by the Company’s property, including accounts receivable and inventory. In conjunction with the borrowing, we issued to the lender a warrant entitling it to purchase, for $14.24 per share, 40,976 shares of our common stock with a five year term through April 15, 2015. A debt discount of $183 was recorded related to these warrants and is being amortized over the term of the loan.

As of June 30, 2012, we were in compliance with our debt covenants on all of our secured notes payable.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2012

Stock-Based Compensation

(18) Stock-Based Compensation

In December 2010, our board of directors voted unanimously to increase the number of shares which may be issued under the 2008 Incentive Plan by 1,500,000 to an aggregate of 5,000,000 shares of common stock, subject to ratification by our stockholders. Subsequently, as a result of acquisition activity, our board of directors authorized at its meetings on March 5, 2011 and August 5, 2011 to amend and increase the number of shares which may be issued under the 2008 Incentive Plan to a new total of 9,500,000 shares of common stock. The holders of a majority of our outstanding shares of common stock approved the amendment to the 2008 Incentive Plan at the stockholders meeting held on October 21, 2011. The 2008 Incentive Plan had 772,417 shares of common stock available for future grants as of June 30, 2012. The 2004 Stock Option Plan has reserved 342,858 shares of common stock for issuance of which 264,108 shares of common stock were available for future grants as of June 30, 2012.

The Company’s outstanding unvested stock options have maximum contractual terms of up to five years, principally vest on a quarterly basis ratably over four years and were granted at exercise prices equal to the market price of the Company’s common stock on the date of grant. The Company’s outstanding stock options are exercisable into shares of the Company’s common stock. The Company measures the cost of employee services received in exchange for an award of equity instruments, including grants of employee stock options, warrants and restricted stock awards, based on the fair value of the award at the date of grant in accordance with the modified prospective method. The Company uses the Black-Scholes model for purposes of determining the fair value of stock options and warrants granted and recognizes compensation costs ratably over the requisite service period, net of estimated forfeitures. For restricted stock awards, the grant-date fair value is the quoted market price of the stock.

As of June 30, 2012, there was approximately $17,732 of total unrecognized compensation cost related to unvested share-based compensation grants, which is expected to be amortized over a weighted-average period of approximately 2.6 years. As of December 31, 2011, there was approximately $26,513 of total unrecognized compensation cost related to unvested share-based compensation grants, which is expected to be amortized over a weighted-average period of 2.8 years.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes model with the following weighted-average assumptions:

	Six months ended  June 30, 2012			Six months ended  June 30, 2011
Expected life (in years)		3.96			4.00
Risk-free interest rate		0.61	%		1.52	%
Volatility		102.77	%		79.40	%
Dividend yield		0			0

In 2012 and 2011, we estimated the expected term of stock options using historical exercise experience and used a forfeiture rate of 25% for employees and 0% for officers and directors.

A summary of the status of stock option awards and changes during the six months ended June 30, 2012 is presented below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Intrinsic Value
Outstanding at December 31, 2011		6,415,669		$	9.90
Granted		703,857			9.36
Exercised		(63,283	)		7.63
Cancelled, expired, or forfeited		(1,236,049	)		10.82
Outstanding at June 30, 2012		5,820,194			9.67		3.47	$	0
Exercisable at June 30, 2012		2,882,048		$	9.36		3.16	$	0

The weighted-average grant-date fair value of option awards granted during the six months ended June 30, 2012 was $6.19.

Restricted Stock Awards

The following table summarizes the different types of restricted stock awards granted:

	Six months ended		Six months ended
	June 30, 2012		June 30, 2011
Restricted stock units ("RSUs") with time-based vesting conditions		204,423		-
Performance-contingent restricted stock units ("PCRSUs") with market-based vesting conditions		425,000		-
Restricted stock with vesting conditions		541,170		-
		1,170,593		-

RSUs, PCRSUs and restricted stock awards represent the right to receive one share of our common stock upon vesting. We have issued time-based restricted stock units (“RSUs”), performance and time-based RSUs, market-based PCRSUs, and restricted stock with vesting conditions. The time-based RSUs vest in 36 or 48 equal monthly installments based on continued employment. The performance and time-based RSUs vest in 48 equal monthly installments based on continued employment and our common stock 20-day volume weighted average stock price exceeds the grant date closing price by 115% for 50% of the grant and by 130% for 50% of the grant. Both of these performance targets were met before the end of October 2010. The PCRSUs vesting is generally determined based upon the common stock’s highest 90-Day VWAP attained over a series of vesting periods (each such period is three months in duration) over the term of the agreement or, in the event of a change in control of the company, the fair market value of our common stock on the effective date of the change in control. These performance targets have not been met as of the latest vesting period on June 30, 2012. No grants were made during the six months ended June 30, 2011.

	Restricted Stock			Weighted Average Exercise Price
Outstanding at December 31, 2011		1,689,250		$	7.05
Granted		1,170,593			6.54
Vested		(416,848	)		8.05
Cancelled		(328,223	)		10.53
Outstanding at June 30, 2012		2,114,772		$	6.43

The total pre-tax intrinsic value of restricted stock awards granted during the six months ended June 30, 2012 was $11,915. The total fair value of restricted stock awards vested during the six months ended June 30, 2012 was $7,655. The grant-date fair value of each RSU and restricted stock is calculated based upon the Company’s closing stock price on the date of grant. The grant-date fair value of PCRSUs was calculated using the Monte-Carlo simulation model due to the market-based vesting conditions.

The fair value of each PCRSU is estimated on the date of grant using the Monte Carlo simulation model with the following assumptions included (1) 0.66% risk free rate, (2) estimated vesting period (3) expected stock price volatility of 85%, and (4) common stock price of the underlying share on the valuation date.

During the three months ended June 30, 2012 the Company recorded approximately $3,400 net, PCRSU expense related to terminations of certain executives.

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Net Revenues and (Loss) From Discontinued Operations, Net Of Tax (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Discontinued Operations [Line Items]
Revenue	$ 1,442	$ 3,236	$ 4,355	$ 6,899
Net income (loss) from operations	(4,466)	(822)	(7,854)	(1,415)
Loss from Disposal	(44,040)		(44,040)
Loss before provision for taxes from discontinued operations	(48,506)	(822)	(51,894)	(1,415)
Provision for income taxes
Net loss from discontinued operations	(48,506)	(822)	(51,894)	(1,415)
Sezmi
Discontinued Operations [Line Items]
Revenue	109		203
Net income (loss) from operations	(4,310)		(7,880)
Loss from Disposal	(28,578)		(28,578)
Loss before provision for taxes from discontinued operations	(32,888)		(36,458)
Provision for income taxes
Net loss from discontinued operations	(32,888)		(36,458)
Content Solutions
Discontinued Operations [Line Items]
Revenue	1,333	3,236	4,152	6,899
Net income (loss) from operations	(156)	(822)	26	(1,415)
Loss from Disposal	(15,462)		(15,462)
Loss before provision for taxes from discontinued operations	(15,618)	(822)	(15,436)	(1,415)
Provision for income taxes
Net loss from discontinued operations	$ (15,618)	$ (822)	$ (15,436)	$ (1,415)

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Adjustments to prior period financials and discontinued operations - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Reduction of original recorded earn-out liability by reducing goodwill	$ 25,003

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Derivative Liabilities (Tables)

6 Months Ended

Jun. 30, 2012

Components of Derivative Liabilities

The following table summarizes the components of derivative liabilities as of June 30, 2012 and December 31, 2011 for the May 2008 warrants:

	June 30,  2012			December 31,  2011
Fair value of warrants with anti-dilution provisions	$	(604	)	$	(557	)
Significant assumptions (or ranges):
Trading market values  (1)	$	4.29		$	8.45
Term (years) (3)		0.86			1.35
Volatility   (1)		90.00	%		57.00	%
Risk-free rate   (2)		0.27	%		0.25	%
Effective Exercise price  (3)	$	4.17		$	7.00

The following table summarizes the components of derivative liabilities as of June 30, 2012 and the measurement date of May 17, 2012 for the May 2012 warrants:

	June 30,  2012			May 17,  2012
Fair value of warrants with anti-dilution provisions	$	(17,273	)	$	(14,333	)
Significant assumptions (or ranges):
Trading market values  (1)	$	4.29		$	3.50
Term (years) (3)		5.38			5.50
Volatility   (1)		90.00	%		90.00	%
Risk-free rate   (2)		0.79	%		0.78	%
Effective Exercise price  (3)	$	5.00		$	5.00

Fair value hierarchy:

(1) Level 1 inputs are quoted prices in active markets for identical assets and liabilities, or derived there from. Our trading market values and the volatilities that are calculated thereupon are level 1 inputs.

(2) Level 2 inputs are inputs other than quoted prices that are observable. We use the current published yields for zero-coupon US Treasury Securities, with terms nearest the remaining term of the warrants for our risk free rate.

(3) Level 3 inputs are unobservable inputs. Inputs for which any parts are level 3 inputs are classified as level 3 in their entirety. The remaining term used equals the remaining contractual term as our best estimate of the expected term and the effective exercise price which is based on the stated exercise price adjusted for anti-dilution provisions.

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Compensation, travel and associated costs, non-cash stock	$ 8,254	$ 4,384	$ 15,557	$ 6,410

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Segment Reporting - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
EMEA | Content Solutions
Segment Reporting, Asset Reconciling Item [Line Items]
Asset held for sale	$ 23,310
Americas | Sezmi
Segment Reporting, Asset Reconciling Item [Line Items]
Asset held for sale	$ 31,796

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Adjustments to prior period financials and discontinued operations

6 Months Ended

Jun. 30, 2012

Adjustments to prior period financials and discontinued operations

(2) Adjustments to prior period financials and discontinued operations.

Certain amounts have been reclassified to present the Company’s divesture of its Content Solutions Businesses and Sezmi business as discontinued operations. Unless otherwise indicated, information presented in the notes to the financial statements relates only to KIT digital’s continuing operations. Information related to discontinued operations is included in Note 25 and in some instances, where appropriate, is included as a separate disclosure within the individual footnotes.

The Company has recasted its December 31, 2011 balance sheet as it relates to the purchase accounting of Sezmi as the Company has determined that projections and certain assumptions used in the establishment of the earn-out liability were inaccurate. Therefore, the Company has reduced the original recorded earn-out liability by reducing goodwill in the amount of $25,003 and has reduced the acquisition liability by the same amount.

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Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 82,751	$ 82,749
Accumulated Amortization	(24,446)	(18,914)
Net Carrying Amount	58,305	63,835
Software
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period (Years)	4 years	4 years
Gross Carrying Amount	15,862	15,861
Accumulated Amortization	(7,472)	(6,168)
Net Carrying Amount	8,390	9,693
Customer list
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period (Years)	7 years	7 years
Gross Carrying Amount	64,905	64,905
Accumulated Amortization	(15,687)	(11,654)
Net Carrying Amount	49,218	53,251
Trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period (Years)	4 years	3 years 6 months
Gross Carrying Amount	621	621
Accumulated Amortization	(561)	(537)
Net Carrying Amount	60	84
Other
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period (Years)	2 years	2 years 6 months
Gross Carrying Amount	1,363	1,362
Accumulated Amortization	(726)	(555)
Net Carrying Amount	$ 637	$ 807

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Stock Issuances - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended				6 Months Ended		12 Months Ended
	May 31, 2012	May 17, 2012	May 15, 2012	Oct. 03, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Class of Stock [Line Items]
Number of shares of common stock issued	7,000,000				10,279,350
Number of shares of common stock issued to acquire business				42,500
Number of shares of common stock issued for services					81,689
Number of shares of common stock issued for restricted stocks					416,848
Number of shares of common stock issued for the exercise of options					63,283
Proceeds from exercise of options					$ 483	$ 837
Warrants included in the derivative liability					5,671,382		251,021
Warrants included in stock-based compensation							34,286
Outstanding warrants					1,017,167		1,361,935
Weighted average exercise price					10.84		24.21
Proceeds from private placement, gross	29,190		29,190
Warrants issued	5,250,000		5,250,000
Warrants issued to purchase common stock, strike price	$ 5.00		$ 5.00
Proceeds from private placement, net	27,174		27,174		27,174
Stock price reset provision related to the issuance of stock in private placement					10,512
Stock price reset provision related to the issuance of stock in private placement, stock					2,588,408
Cash to be paid in conjunction with share issuance					3,000
Initial value of derivative liability		$ 14,333			$ 14,333
Private Placement
Class of Stock [Line Items]
Number of shares of common stock issued					7,000,000
Hyro Limited
Class of Stock [Line Items]
Number of shares of common stock issued to acquire business					1,838,134
Sezmi
Class of Stock [Line Items]
Number of shares of common stock issued to acquire business					879,396

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Derivative Liabilities - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended				3 Months Ended		6 Months Ended			1 Months Ended
	May 31, 2012	May 17, 2012	May 15, 2012	May 08, 2008 Person	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2012 May 2008 Warrant	Dec. 31, 2011 May 2008 Warrant	Jun. 30, 2012 May 2012 Warrant	May 15, 2012 May 2012 Warrant
Derivative [Line Items]
Stock Issued under Securities Purchase Agreement				2,142,858
Number of accredited investors				35
Price of units sold				$ 7.00
Gross proceeds				$ 15,000
Effective exercise price				$ 11.90						$ 4.17
Warrants term				5 years
Proceeds from private placement, gross	29,190		29,190
Issue of stock to 3rd party investors in private placement	7,000,000						10,279,350
Warrants issued to purchase common stock	5,250,000		5,250,000
Warrants issued to purchase common stock, strike price	$ 5.00		$ 5.00
Proceeds from private placement, net	27,174		27,174				27,174
Stock price reset provision related to the issuance of stock in private placement							(10,512)
Stock price reset provision related to the issuance of stock in private placement, stock							2,588,408
Cash to be paid in conjunction with share issuance							3,000
Initial value of derivative liability		14,333					14,333
Common shares indexed to warrants					5,671,382		5,671,382		251,021	421,382	251,021	5,250,000	5,250,000
Initial exercise price										$ 7.00
Number of warrants Increase										170,361
Derivative income (expense)					$ (3,173)	$ 433	$ (2,986)	$ 3,042

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Stock Issuances

6 Months Ended

Jun. 30, 2012

Stock Issuances

(19) Stock Issuances

During the six months ended June 30, 2012, we issued 10,279,350 shares of common stock. Of this amount, we issued 7,000,000 shares in the May 2012 private placement described below, 1,838,134 shares related to the acquisition of Hyro, 879,396 shares related to the acquisition of Sezmi, 81,689 shares for services, 416,848 shares for restricted stock and 63,283 shares for the exercise of options with proceeds of $483. 

As of June 30, 2012, the outstanding warrants (excluding the warrants included in the derivative liability of 5,671,382 were 1,017,167 with a weighted average exercise price of $10.84 As of December 31, 2011, the outstanding warrants (excluding the warrants included in the derivative liability of 251,021 and stock-based compensation of 34,286) were 1,361,935 with a weighted average exercise price of $24.21.

May 2012 Share Issuance

On May 15, 2012, the Company entered into a definitive Securities Purchase Agreement to raise $29,190 in gross proceeds, before deducting placement agents’ fees and other estimated offering expenses, in a private placement of (i) 7,000,000 shares of the Company’s common stock and (ii) warrants to purchase 5,250,000 shares of Common Stock (issued on May 17, 2012) with an effective strike price of $5.00. After deducting the fees of the placement agent and other estimated offering expenses, the net proceeds to the Company from the private placement were approximately $27,174.

During the six months ended June 30, 2012 and in conjunction with this share issuance, the Company recorded a liability of approximately $10,512 representing the estimated amount of additional shares to be granted as part of the stock price reset provision in the stock purchase agreement. This amount consists of approximately 2,588,408 shares and approximately $3,000 in cash to be paid on or about August 13, 2012. See Note 15 and 17.

The warrants issued as part of the Securities Purchase Agreement contain an embedded anti-dilution provision which is required to be carried as a derivative liability at fair value. On May 17, 2012, we recorded the fair value of $14,333 as a derivative liability and as a reduction in additional paid-in capital.

The Warrants were valued using a Monte Carlo simulation model at $14,333. See Note 15 and 17.

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Amount of Total Gains or Losses Included in Losses Attributable to Change in Unrealized Gains or Losses Relating to Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Interest expense
Fair Value Measurements [Line Items]
Included in statement of operations losses attributable to change in unrealized gains and losses	$ 164
Merger and acquisition and investor relations
Fair Value Measurements [Line Items]
Included in statement of operations losses attributable to change in unrealized gains and losses	(3,006)
Derivative Expense
Fair Value Measurements [Line Items]
Included in statement of operations losses attributable to change in unrealized gains and losses	$ 2,986

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Other Receivables (Tables)

6 Months Ended

Jun. 30, 2012

Summary of Other receivables

	June 30, 2012			December 31, 2011
Loan receivable on sale of subsidiary, net of reserves	$	2,158		$	8,632
Other receivables		8,200			-
Total other receivables		10,358			8,632
Less: current		(1,690	)		(2,756	)
Other receivables, net of current	$	8,668		$	5,876

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Other Receivables

6 Months Ended

Jun. 30, 2012

Other Receivables

(12) Other Receivables

	June 30, 2012			December 31, 2011
Loan receivable on sale of subsidiary, net of reserves	$	2,158		$	8,632
Other receivables		8,200			-
Total other receivables		10,358			8,632
Less: current		(1,690	)		(2,756	)
Other receivables, net of current	$	8,668		$	5,876

In December 2010, we lent $10,847 as part of the sale of subsidiary which matures on January 28, 2015 with payments commencing on February 28, 2011, due in forty-eight equal consecutive monthly payments of $226. The loan is secured by accounts receivable, cash and other assets of the business sold. As of June 30, 2012, the Company has approximately $2,158 remaining on the loan net of $6,474 in reserves. During the second quarter of 2012, the receivable went into default as the purchaser has failed to make certain payments. The Company is currently exploring its legal remedies and has recorded a reserve against this receivable during the three months ended June 30, 2012 of approximately $6,474.

During the three months ended June 30, 2012, the Company recorded a receivable of approximately $8,200 related to the sale of the Content Solutions business of which $1,690 is recorded in current assets. See Note 25.