10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

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

For the fiscal year ended December 31, 2014

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 001-35164

ONVIA, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	91-1859172
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

509 Olive Way, Suite 400, Seattle, Washington 98101

(Address of Principal Executive Offices)

(206) 282-5170

(Registrant’s Telephone Number, Including Area Code)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class	Name of exchange on which registered
Common Stock, $.0001 par value per share	The NASDAQ Capital Market
Rights to Purchase Series RA Junior Participating Preferred Stock	The NASDAQ Capital Market

Securities Registered Pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes  o    No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes  o    No  x

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 twelve 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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  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 the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.    

Large accelerated filer  o    Accelerated filer  o    Non-accelerated filer  o     Smaller reporting company  x    

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

The aggregate market value of the voting and non-voting common stock held by non-affiliates of the registrant, based on the closing price on June 30, 2014, as reported on the NASDAQ Capital Market, was $23,204,091.

The number of shares of the registrant’s common stock outstanding at March 1, 2015 was 7,400,653.

ONVIA, INC.

FORM 10-K

For the Year Ended December 31, 2014

TABLE OF CONTENTS

		PAGE
PART 1.
ITEM 1.	BUSINESS	3
ITEM 1A.	RISK FACTORS	11
ITEM 1B.	UNRESOLVED STAFF COMMENTS	16
ITEM 2.	PROPERTIES	17
ITEM 3.	LEGAL PROCEEDINGS	17
ITEM 4.	MINE SAFETY DISCLOSURES	17
PART II.
ITEM 5.	MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	18
ITEM 6.	SELECTED CONSOLIDATED FINANCIAL DATA	18
ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	19
ITEM 7A.	QUANTITIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	26
ITEM 8.	CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	29
	CONSOLIDATED BALANCE SHEETS	29
	CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS	30
	CONSOLIDATED STATEMENTS OF CASH FLOWS	31
	CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY	32
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	33
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	46
ITEM 9A.	CONTROLS AND PROCEDURES	46
ITEM 9B.	OTHER INFORMATION	47
PART III.
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	48
ITEM 11.	EXECUTIVE COMPENSATION	48
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	48
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	49
ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	49
PART IV.
ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	50
SIGNATURES		53

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PART I

CAUTIONARY STATEMENT

In addition to the historical information contained herein, the discussion and analysis in this report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding expected increases in revenue, clients, contracts and contract value, cash flow, profitability and stockholder value.  When used in this discussion, the words “believes,” “anticipates,” “may,” “will,” “should,” “expects,” “plans,” “estimates,” “predicts,” “potential,” “continue,” “intends”, “indicates” or the negative of these and similar expressions are intended to identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not a forward-looking statement.  Forward-looking statements include, but are not limited to, statements about our plans, objectives, expectations and intentions and are subject to risks and uncertainties that could cause actual results to differ materially from those expected or implied by these forward-looking statements.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the factors described under “Risk Factors”, “Business”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this report.  Except as required by law, Onvia undertakes no obligation to publicly release any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated events.  Readers are urged, however, to review the factors and risks described in reports Onvia files from time to time with the Securities and Exchange Commission. The following discussion should also be read in conjunction with the Consolidated Financial Statements and accompanying Notes thereto included in this report.

In this report, we rely on and refer to information and statistics regarding the markets for various products.  We obtained this information from third-party sources, discussions with our clients and our own estimates.  We believe that these third-party sources are reliable, but we have not independently verified them and there can be no assurance that they are accurate.

ITEM 1.                      BUSINESS

In this report, the words “we,” “our,” “us,” “Onvia,” or the “Company” refer to Onvia, Inc. and its wholly owned subsidiary.  The wholly owned subsidiary was dissolved effective December 19, 2014.

Company Overview

Onvia is a leading provider of business information and research solutions that help companies plan, market and sell to government agencies throughout the United States (or U.S.).  Onvia’s business solutions provide clients online access to proprietary information about government procurement activity across local, state, and federal government agencies.  The business intelligence derived from our solutions allows clients to identify and research new market opportunities, analyze market trends, and obtain valuable insights about their competitors and channel partners.  We believe our business solutions provide clients with a distinct competitive advantage, increased revenue opportunities, and strategic insight into the public sector market.

Onvia’s target client prospects operate regionally or nationally, have a long-term strategic interest in the public sector and focus primarily on the decentralized State, Local and Education (SLED) market.  We believe this model will produce higher margins, providing the flexibility to price products based upon the value that we create for clients, not based upon the cost of fulfillment.

In 2011, we began executing a business transformation plan intended to leverage the Company’s investment in a rich public sector procurement database.  Over the last four years we have repositioned Onvia’s value proposition from an aggregator of public procurement documents to a provider of comprehensive public sector business. We believe the business is now positioned to generate accelerating subscription revenue and Adjusted EBITDA (see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” below for more information regarding Adjusted EBITDA).

The Onvia solution includes access to the Onvia Database, Spending Forecast Center, Term Contract Center, Vendor Center, Purchase Order Analytics and the Onvia Guide.  These services are sometimes bundled with management information reports in multiple element arrangements. We allocate revenue from these bundled sales ratably between the subscription services and the management reports based on established list prices for those offerings. Subscriptions to the Onvia Database are typically prepaid, have a minimum term of one year and revenues are recognized ratably over the term of the subscription.  Subscriptions are generally priced based upon the geographic range, nature of content purchased, and the number of users accessing the database.

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Most of Onvia’s revenues are generated from sales to companies that leverage our information for their own internal use, and to businesses that license our content for redistribution.  Revenue from businesses who license our content for resale to their own clients is classified as Content License revenue.  Content license contracts are generally multi-year arrangements and typically have higher annual contract values than our subscription-based services.  Revenue from content license agreements is recognized over the term of the agreement.

Onvia was incorporated in January 2000 in the state of Delaware.  Our principal corporate office is located in Seattle, Washington.  Our securities trade on The NASDAQ Capital Market under the symbol ONVI.

Industry Background

Selling to the public sector is highly competitive and insight into this market is extremely valuable.  The variety, volume and unstructured nature of public sector procurement information make it difficult for businesses to analyze, evaluate and target the market for their goods and services.   The agency self- reporting process provides short term visibility into specific government contracting information and events, but does not provide businesses the value added  business  intelligence to strategically align and execute their public sector initiatives.  There is a strong need for a strategic business partner that provides deep market intelligence as a key resource for decision making.   This ideal partner will provide impactful insight that drives companies to select the right target market, allocate internal resources toward the most profitable segments, maximize public sector margins through intelligent pricing and develop strategic public sector relationships all with the long term objective of winning more government business.

The procurement capture process is complicated and comprised of multiple elements and information types.   Businesses must evaluate a variety of different sources of procurement information and activities to understand their individual markets and to make strategic decisions.  These data types include:

●	Annual Budgets	●	Plan holders Lists
●	Capital Improvement Plans	●	Bidders Lists
●	Technology Improvement Plans	●	Bid Results
●	Bids	●	Awards and Award Details
●	Requests for Quotes (RFQ)	●	Advance Notices
●	Requests for Proposals (RFP)	●	Subcontractor Solicitations
●	Amendments	●	Purchase Orders
●	Term Contracts (Reoccurring Contracts)	●	Other trigger events, such as City Council Minutes

The aggregation of these public procurement events provides limited value.  This data must be normalized, enhanced, structured and classified to become business intelligence to help companies approach the public sector market strategically with the goal of winning more government business.

We believe the combination of this database and the analytical tools we continue to release to the market as we execute the strategic transition will position Onvia as the preferred business intelligence provider for those companies that have a strategic long-term interest in the public sector market.

Strategy

Our mission is to deliver essential, actionable business intelligence that our clients rely upon to win more government business.  We intend to achieve this mission by delivering exceptional solutions that offer our clients significant value in defining and targeting their public sector market, identifying current and future public sector business opportunities, intelligently pricing their products in the competitive public sector market, and developing strategic relationships and partners required of a successful public sector strategy.  If we are able to effectively achieve this mission, we believe we should see increased retention rates and, ultimately, increased stockholder value.  Key elements of our strategy include:

· Target the right customers for Onvia: those companies with long- term strategic interest in the public sector.  We focus sales and marketing efforts on the prospects that fit the profile of our most valuable clients with the highest contract value and retention rates.  We believe that companies in high-growth industries that do business across a complex and geographically diverse marketplace derive the most value from Onvia’s solutions.  We believe these companies have the greatest need for the new market intelligence solutions we planned as part of our future product roadmap.  Using our own proprietary data we identified companies that have a strategic, long-term interest in the public sector market based on the volume of their bidding activity and the geographical scope of their marketing program to the government.  If we are effective in targeting these companies, we expect that retention rates and the long-term profitability of our clients will improve.

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Our business solutions support companies that operate regionally or nationally in the largest, high-growth industry verticals:

o Infrastructure

■ Architectural and Engineering Services

■ Building Supplies

■ Energy

■ Operations and Maintenance Services

■ Transportation Equipment

■ Water and Energy/Alternative Energy

o Technology

■ IT

■ Telecommunications

o Business and Consulting Services

■ Financial Services and Insurance

■ Healthcare and Medical Equipment

■ Office Supplies

· Enhance our value proposition to our target customer:  Historically, our clients have used Onvia for public sector sales lead notification.  Over the past few years we strengthened our content capture processes which improved the timeliness and completeness of our data.  We shrank the gaps in the editorial policy and clients now have a clearer expectation of the coverage they can expect from Onvia.  Onvia 6, our previous product version, improved the usability of our leads solutions to connect clients with the right content more effectively.   The introduction of Term Contract Center (July 2012) and Project Previews to Spending Forecast Center (December 2012) expanded our sales lead notification from current leads (bids and RFPs) to near term leads (term contracts) to longer term leads (project previews) giving our clients a more comprehensive public sector lead offering.In December 2013, we launched Vendor Center, which provides strategic intelligence on companies that do business with state and local governments.  As of December 2014, clients now have the opportunity to access agency purchase orders as an additional module on the Onvia platform for an additional fee.  Agency purchase orders help clients understand agency spending patterns, evaluate competitors and analyze historical pricing for specific products and services.

Leads will continue to be a major part of our value proposition, but our product roadmap is designed to transform Onvia into a technology enabled business intelligence provider that helps clients win more government business.  Our content and technology platform are key assets that can be leveraged to deliver additional, more strategic applications for our clients.  These future applications include competitive analysis, channel partner selection and evaluation, market sizing, allocation of marketing spend, and pricing analyses.  We solicit feedback from clients on strategic product prototypes before they are launched.  By focusing on the right target market and by forming a closer connection with our clients, we believe we can deliver strategic products that offer our clients significant value in maximizing their business in the public sector market.

· Use consultative selling as our “go to market” strategy:We primarily market to a targeted universe of companies that have a strategic, long term interest in the public sector.  Our sales organization is organized around three high growth industry market sectors: Infrastructure, Information Technology, and Business Services.  A central part of our value proposition is the knowledge our sales people have of their clients and their clients’ industries.  We strive to become “trusted partners” who help clients leverage business intelligence to secure more public sector business.  We identify our clients’ key business objectives, quantify and prioritize them, offer optimal solutions and finally measure our ability to deliver on these solutions during the clients’ subscription term.  Our strategy is to stay focused on these key objectives throughout our engagement with the client.  Every major investment (product, content, technology and marketing) is evaluated and prioritized against our clients’ key objectives and our current and future value proposition in meeting and exceeding these objectives.

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Products and Services

Onvia’s solution includes tools to access a database of proprietary public sector information which has been built over more than a decade, and includes comprehensive, historical and real-time information on public sector activities unavailable elsewhere in the marketplace.  Our solution provides access to information on over 5.0 million procurement-related records connected to over 400,000 companies from across approximately 86,000 procurement entities nationwide.  Thousands of records are standardized, added, formatted and classified within our database each day.   We implemented content production improvements in 2014, and we now deliver 90% of our bid and RFP content on the same day we capture it from the original source.

Onvia’s solution is tailored to the business objectives of each client, and support both strategic planning and sales and marketing activities.  We offer our clients public sector business intelligence through specialized self-service analytical tools that help our clients aggregate, analyze, identify and quality, evaluate  and influence historical, real-time, and future spending information within local, state, and federal government agencies across the United States.  Over time, we expect to continue to enhance our existing information, marketing and analytic services and develop additional services that make use of our comprehensive database to meet the needs of our existing clients as well as potential new categories of clients.  Our key offerings are described below.

Onvia Database provides rich search functionality on our proprietary analytics platform of local, state and federal government agency purchasing information.  Our solution provides public sector business intelligence to customers across agencies, vendors, projects, and term contracts over a historical, real-time and future spending timeline.

Project Center provides our clients with a complete view of individual public sector procurement projects at each stage of the purchasing cycle.  Project Center makes it easier for clients to identify and qualify opportunities to sell their goods and services into the public sector.  Project Center is designed to help our clients:

· Analyze purchasing trends to refine existing target markets and identify new geographic markets

· Identify and qualify projects or purchases for specific goods and services nationwide

· Identify and monitor potential competitors using plan holders lists and bidder lists

· Identify potential subcontracting opportunities on major projects

· Evaluate awards for pricing analyses

· Identify and build relationships with the agency buyers of specific goods and services

· Understand agency relationships with existing vendors

· Build marketing lists of agency buyers and potential vendor partners

· Obtain bid documents, plans and specification documents to qualify projects

Agency Center provides users with agencies’ procurement histories, current projects, and spending forecasts in a single application.  Agency Center helps businesses identify and qualify government agencies, agency buyers and procurement opportunities within their target markets.  By developing agency relationships, users can identify government purchases that never go out to formal bid.  Four out of five government purchases never go out to formal bid, because they fall below agencies’ purchasing thresholds.  Agency Center is included with standard access to the Onvia Database.

Vendor Center provides strategic intelligence on companies that do business with state and local governments.  Clients can identify, track and benchmark competitors and potential partners to inform strategic decision making.  Vendor Center represents an important step in our strategy to move from lead distribution into public sector market intelligence and analysis.

Spending Forecast Center provides insight into budgets and capital improvement plans of agencies within the top 366 Metropolitan Statistical Areas in the United States.  Spending Forecast Center provides valuable, strategic information on future capital spending used by larger corporations to execute their public sector strategies.  Most governmental bodies, such as departments of transportation, city and county governments, and boards of education publish a plan that maps out their major initiatives and forecasts spending over the next 3-6 years.  These spending forecasts generally include the name of the initiative or type of expense, project timing, the funding source and the budget amount. Businesses can use spending forecasts to inform business development, evaluate and target markets, and for short to mid-term business planning.  We collect plans from state, county and city government agencies, representing over 85% of all government spending.  We add a powerful search tool that allows users to find plans based on keywords, as well as type of agency, location, spending focus, and other plan details.  In December 2012, we launched the first update to Spending Forecast Center with Project Previews, which summarize individual projects extracted from the vast library of budgets and capital improvement plans.  The project summaries are delivered directly to the end user, providing significant time savings to clients, enabling them to allocate resources to higher value activities.

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Term Contract Centerhelps Onvia’s clients take advantage of the growing trend by government agencies to make purchases using term contracts, or recurring contracts.  We significantly increased our coverage and collection of term contracts and awards to provide clients with a single source they can rely on to grow revenues.  Term Contract Center is designed to help clients identify and prioritize which contracts to pursue, including the competitor and partner information needed to qualify these opportunities.

Using Term Contract Center, our clients can:

· Search over 150,000 active state and local term contracts to create a pipeline of upcoming renewal opportunities;

· Analyze term-contract buying trends to identify the right agencies to build relationships with;

· Track competitors by searching for vendors who currently hold these contracts; and

· Locate potential teaming and subcontracting partners by accessing information about vendor representatives on term contracts and how to contact them.

Purchase Order Analytics helps Onvia’s clients identify new agency buyers, inform pricing strategies and understand the competitive landscape for its goods and services.  Purchase orders often include transactional information that is below the threshold for public disclosure which can provide clients with a competitive advantage.  As of December 2014, clients now have the opportunity to access agency purchase orders as an additional module on the Onvia platform for an additional fee.  Transactional spending information, combined with the qualifying information within the Onvia Database, provides clients with a comprehensive view of an agency’s spending history.  This complete view is used to inform a strategic approach to targeting agencies, projects and people.

The Onvia Guide provides clients with frequent information about procurement activity of agencies, industries and markets customized for each client.  Clients receive their tailored Onvia Guide delivered to their inbox every day.  Daily use of the Onvia Guide provides clients with next day notification of key events and updates within their public sector market.  The Onvia Guide can be purchased separately or comes bundled with a subscription to the Onvia Database.

Management Reports provide our clients with customized management reports to help target upcoming contract renewals, identify agency buyers, and inform the proposal development process.  These solutions include contact lists, which provide clients a comprehensive list of decision makers, agency procurement officers and zoning officials that can be used to develop relationships and identify potential business partners.

 Clients

Our primary clients are businesses that are strategically focused on selling their goods and services into the public sector.  As discussed above, we sell into this target market through two sales channels: businesses that leverage our information for their own internal use and businesses that license our content for redistribution (i.e. content license).

Prior to 2011, our target market was extremely broad, and we acquired a large number of non-strategic clients that were not adequately profitable.  We have reduced our investment in acquiring non-strategic clients, and our client base has declined as a result of this decision to transition to our more profitable target market.

We manage the business using the following key client metrics:

Annual Contract Value, or ACV

Annual contract value represents the annualized aggregate revenue value of all subscription contracts as of the end of the quarter.  ACV is driven by Annual Contract Value per Client (ACVC) and the number of clients.  Most of Onvia’s revenues are generated from subscription contracts, which are typically prepaid and have a minimum term of one year, with revenues recognized ratably over the term of the subscription.  Onvia also receives revenue from multi-year content distribution partnerships, stand-alone management reports, document download services, and list rental services, which are not included in the calculation of ACV.  Content license contracts are excluded from ACV.

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ACV at December 31, 2014 increased by 6% to $21.5 million compared to $20.3 million at December 31, 2013.  Growth in ACV indicates that new client acquisitions, contract expansions and improving client retention rates have more than offset the impact of client attrition.  The growth rate in ACV can fluctuate from year to year based on timing of the amount of ACV available for renewal.

Dollar Retention

Since the first quarter of 2014 we have reported dollar retention which measures the dollars renewed on the available base of expiring contracts over the preceding twelve months. Dollar retention is calculated on a percentage basis by dividing the contract value of subscription contracts renewed, including the value of contract upgrades, during the most recent twelve-month period by the total value of subscription contracts expiring over the same period.  Dollar retention measures the percentage of dollars retained from the population of expiring contracts over a twelve month period.

In the twelve months ended December 31, 2014, dollar retention was 88% compared to 85% in the twelve months ended December 31, 2013.  Dollar retention can fluctuate from period to period due to the mix of first year and tenured clients expiring in each period, and timing of contract growth.  Dollar retention, in conjunction with ACV, provides insight into our subscription retention rate and ability to generate future subscription revenue.

Number of Clients

Number of clients represents the number of individual businesses subscribing to our products.

At the end of the fourth quarter, Onvia’s total client base decreased 10% to 3,300 clients compared to 3,650 clients in the same year-ago period.  Onvia’s strategy is to continue to improve profitability by acquiring and managing fewer, more strategic, clients at higher ACVCs.  Onvia’s management believes that ACV is a better measure of sales effectiveness than the number of clients.

Annual Contract Value per Client, or ACVC

Annual contract value per client is the ACV divided by the number of clients and indicates the average value of each of our subscriptions.

ACVC at December 31, 2014 grew 17% to $6,500 from $5,572 one year ago.  The continued growth in ACVC demonstrates our success in acquiring clients with strategic interest in the public sector at a regional or national level.  Companies within this target market typically have higher ACVCs and renew at higher rates, which are key attributes of a profitable long-term client.

 Sales and Marketing Strategy

As of December 31, 2014, we had 70 inside sales, marketing and customer support employees with the majority of our sales force located at our headquarters in Seattle, Washington.  This headcount compares to 69 as of December 31, 2013.

We believe we have transformed the Onvia sales force into a professional consultative selling organization.  Under this business model, the Business Development Team is responsible for identifying the business objectives of a prospect, and designing a solution to meet these business objectives.  As part of the new client onboarding process, the Business Development Manager ensures that the client is smoothly transitioned to the Client Success organization throughout the initial contract term.  The Client Success team is responsible for training existing clients, executing our client contact strategy, providing as needed support, renewing client contracts and identifying cross sell and upsell opportunities.   As part of the client contact strategy, the Client Success manager is responsible for understanding the client’s business objectives, setting up profiles and saved searches, and product training.  The partnership between the client and its Onvia support team is an important part of the value proposition included in the Onvia business solution.

Our marketing programs communicate a strong strategic message that conveys who we are today and more importantly who we will be in one or two years from now.  We must deliver this message consistently and clearly across all of our marketing and communication channels to reposition and build our brand, improve sales effectiveness and drive revenue growth. Our strategic message is an important part of our transition from sales leads to analytics and market intelligence derived from a database of proprietary content with normalized data.  Our primary marketing methods include web-based marketing, direct marketing, publication of industry content, communication with our website, webinars, participation in trade shows and industry events, client referrals and educational tools.  Client retention and nurture marketing campaigns are also an integral part of our strategy. 

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Technology

We support our operations and business solutions using an advanced technology platform designed to serve a large and rapidly increasing volume of web traffic in a reliable and efficient manner without critical failures.  Our systems are designed to:

· Provide fast, secure and highly available visitor access to our websites;

· Validate and process client requests promptly and accurately;

· Provide timely, comprehensive and accurate management-reporting capabilities;

· Accommodate upgrades to features on our websites;

· Scale to accommodate growth in users and content; and

· Provide basic redundancy in case of component failures.

 Our systems use a combination of proprietary technologies and commercially available licensed technologies.  The backbone of our technology infrastructure consists of Microsoft SQL Server based database servers running on enterprise grade server hardware.  The front end consists of multiple, redundant web servers that are scalable as operations grow.

Our web servers, database servers, transaction-processing servers and other core systems that conduct essential business operations are housed at a third-party offsite co-location facility.  Our co-location vendor provides 24x7 monitoring and engineering support in a climate-controlled and physically secure environment and our on-call operations personnel have 24x7 access to the facility.  Our data center has redundant communication lines from multiple Internet Service Providers and has its own emergency power and backup systems.  We house some non-critical systems such as development servers, quality assurance servers, and internal application servers at our headquarters in Seattle.  All our production platform related servers are in the Seattle area and we are currently in the process of building out a second production site outside this geographical area for redundancy in case of some natural calamity.  Onvia has a redundant disaster recovery site located outside the Seattle geographical area for the Company mail system which provides full functionality in the event of disaster.  The onvia.com website and the CRM systems are not hosted by us: they are both remotely hosted solutions.

In addition to maintaining responsibility for the technical architecture, security and uptime of our business solutions, our technology department works closely with the sales and marketing departments to ensure that client feedback for new features is incorporated into new products and services and that our investment in new product development is aligned with our clients’ needs and expectations.

Competition

The market for comprehensive intelligence on the government procurement marketplace is underserved.  Competitors include, to a limited extent, bid aggregators, industry analysts and government e-procurement platforms.

Our current and potential competitors include, but are not limited to, the following:

· Information companies that target specific industry verticals that are covered by our services, such as Dodge Data & Analytics, CMD, BidClerk, Contractors Register and Deltek.

· Lead generation and bid matching companies such as FedMarket.com, BidNet, BidSync and GovernmentBids.com.

We may face additional competition in the future as well-funded companies pursue new government procurement and private sector database products and services.  We must differentiate ourselves by expanding our database, enhancing and normalizing our data, developing solutions with high switching costs, and maintaining a loyal base of repeat clients.  To achieve this we must continually invest in content and software applications to provide our clients with business insight and intelligence on the government procurement market.

We believe that the principal competitive factors affecting our market include, but are not limited to, breadth, depth and timeliness of content, content quality, base of existing clients, and client service.  In order to excel at these principal competitive factors, we strive to achieve a superior understanding of our clients, offer valuable solutions to maximize the return on our clients’ investment in the public sector market, and sustain an efficient operating model in delivering these solutions.  We believe that our current solutions compare favorably to competitive offerings available in the marketplace today based on the depth and breadth of content, daily updates, a comprehensive archive of procurement intelligence and a structured and disciplined customer care program designed to provide sustainable value to our clients during the course of their subscriptions.

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Seasonality

Our client acquisition business is subject to some seasonal fluctuations.  The second and third quarters are generally slower than the first and fourth quarters for client acquisition.  The construction industry is our single largest market and these prospects are typically engaged on projects during the spring and summer months, not prospecting for new work, which causes new client acquisition to decline compared to the first and fourth quarters in the year.  For this reason, comparisons of the performance of our business quarter to consecutive quarter may not provide the most relevant information, and so in addition to sequential quarter comparisons our quarterly results and metrics should be considered on the basis of results for the whole year or by comparing results in a quarter with the results in the same quarter of the previous year.

Intellectual Property Rights

Our future success depends in part on intellectual property rights, proprietary rights, and technology.  We rely on a combination of copyright, trademark and trade secret laws, employee and third-party nondisclosure agreements and other methods to protect our proprietary rights.  We seek to protect our internally developed products, documentation, and other written materials under trade secret and copyright laws, which afford only limited protection.  We cannot ensure that any of our proprietary rights will be viable or of value in the future since the validity, enforceability and type of protection of proprietary rights in Internet-related industries is uncertain and still evolving.

We license and will continue to license certain products integral to services from third parties, including products that are integrated with internally developed products and used jointly to provide key content and services.  These third-party product licenses may not continue to be available on commercially reasonable terms and we may not be able to successfully integrate such third-party products into our solutions.

We presently have no issued U.S. patents.  It is possible that we may not develop future proprietary products or technologies that are patentable and that the patents of others will seriously harm our ability to do business.

 We own the following registered trademarks in the U.S. Patent and Trademark Office:  ONVIA, ONVIA and Design (current logo with orange circular design), DEMANDSTAR, QUOTEWIRE and BIDWIRE. We also own the following registered trademarks in Canada: ONVIA, ONVIA.COM, and ONVIA.COM and Design.

Employees

As of March 1, 2015, we had 136 employees with the majority located at our headquarters in Seattle, Washington.

None of our employees are represented by a union or collective bargaining agreement. We have never had a work stoppage and consider relations with our employees to be good.

Geographic Financial Information

During the years ended December 31, 2014 and 2013, substantially all of our revenues were generated from clients located in the United States or Canada, and all sales are denominated in U.S. currency.  All of our long lived assets are located in the United States.

Available Information

We file with and furnish to the Securities and Exchange Commission, or SEC, periodic reports, including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy and information statements, and other information, along with amendments to such reports. Our SEC filings are posted on the SEC’s Web site at http://www.sec.gov, which contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. Materials that we file with the SEC are also available at the SEC’s Public Reference Room at 100 F Street, NE, Room 1580, Washington, DC 20549. Information regarding the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. Our annual report on Form 10-K, all other reports and amendments filed with or furnished to the SEC, and our Code of Business Ethics and Conduct are available on the “Investor Relations” section of our website at www.onvia.com as soon as reasonably practicable after we have filed them with, or furnished them to, the SEC.

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ITEM 1A. RISK FACTORS

In addition to other information in this Report, the following risk factors should be carefully considered in evaluating our business, because such factors may have a significant impact on our business, results of operations and financial condition, and could cause our stock price to decline. The following sections discuss many, but not all, of the risks and uncertainties that may affect our future performance, but is not intended to be all-inclusive. As a result of the risk factors set forth below and elsewhere in this Report, and the risks discussed in our other Securities and Exchange Commission filings, actual future results could differ materially from historical results or those projected in any forward-looking statements.

Risks related to our growth strategy

We began a transformation of our business model in early 2011. Due to the complexity of this turnaround, our quarterly financial results may be subject to fluctuations that may cause material variations in our quarterly operating results and make it difficult to forecast future performance.

We are currently in the second phase of our transformation plan initiated in 2011 and focused on leveraging the foundation we have built to accelerate growth.  Based upon the number of variables within our turnaround plan, our business is subject to execution risk and it may be difficult to project results.  Our operating plan considers our ability to execute these initiatives and generate results within a specific timeframe.  If we are unable to execute our initiatives as planned, our quarterly financial results may fluctuate and future quarterly results will be affected.  A significant portion of our subscription revenue for a particular quarter is derived from transactions that are initiated in previous quarters, because revenue is generally recognized ratably over the subscription term.

Our current and future levels of operating expenses and capital expenditures are based largely on our growth plans and estimates of future revenue. These expenditure levels are, to a large extent, fixed in the short term. We may not be able to adjust spending in a timely manner to compensate for any unexpected revenue shortfall, and any significant shortfall in revenue relative to planned expenditures could harm our business and results of operations.

Our consultative selling approach may not scale business as planned.

We are transitioning our sales organization from a transactional sales process to a consultative sales process.  The consultative selling process focuses on fewer, more targeted prospects, which we expect to renew at higher rates with higher ACVC.  The consultative sales process requires a longer sales cycle than a transactional model and requires the development of a substantial pipeline of qualified prospects to achieve consistent and predictable results.  Due to the complexity of a consultative sale, our sales people may not be able to scale their individual results to maximize profitability.  As a result of these risks, our business may not scale as planned.

Our target market of companies with a strategic, long term interest in the public sector organized around three high growth industry market sectors may not be adequate to scale our business as planned.

We are transitioning our sales effort to target companies with a strategic, long term interest in conducting business with the national and regional public sector organized around three high growth industry market sectors: Infrastructure, Information Technology, and Business Services.  As a result, we are focusing on fewer prospects.  By focusing on target companies in these industry market sectors, we may not identify qualified prospects in other industry market sectors and we may not have adequate industry knowledge to identify prospects within the targeted market sectors.  As a result, our business may not scale as planned.

We may fail to attract, hire and retain sales professionals who can effectively communicate the value of our products to our clients and prospects, and they may be unable to achieve expected sales targets.

In order to achieve growth targets, our sales teams must be able to effectively communicate the value of our products to existing and potential clients.  We expect to see increases in client retention rates and in new client acquisition revenue.  However, our sales goals are aggressive and may not be achieved.

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Our competitors may develop similar technologies that are more broadly accepted in the marketplace.

The functionality in Onvia’s products provides business intelligence across industry verticals and geographic regions.  If competitors introduce products with similar functionality or are able to more effectively market and price their products for broad client acceptance, new client acquisition and existing client retention would be adversely impacted.  If we are unable to enhance functionality or increase marketing efforts to offset challenges from competitors, we may lose market share.

Rapid advances in technology and new mediums for distributing information may diminish the value of our service offerings.

Our business model is predicated on providing access to and analysis of hard to find public and private sector information.  Information in general is quickly becoming more accessible at a low cost as new distribution mediums, such as blogs, and new search technologies are developed.  We may be unable to keep up with the rapid advances in information collection, and new technologies and mediums may be developed that commoditize the value of our services.  If this were to occur, our revenues would suffer.

Risks related to our new product strategy

We may fail to introduce new content and products that are broadly accepted by clients and prospects, and there may be delays in the introduction of these tools and products.

We may not adequately identify and capture content that is valuable to new and existing clients.  In addition, introducing new content and products is complex and we may not be successful in developing such new offerings on a timely basis, or at all.  If client acceptance and adoption of our new products is below our expectations, projected growth rates and client acquisition and retention goals may not be achieved, and financial results would be harmed.  We expect to utilize internally developed technology and technology licensed from third parties for the development of new content and products.  If we are unable to develop or acquire the required technology on time, or at all, or if the launch of these new products is delayed for any other reason beyond our anticipated launch dates, projected growth rates may not be achieved.

We may be unable to control the cost of ongoing content collection or the cost of collecting new content types to support new product offerings.

We will need to identify cost effective sources and develop efficient collection processes for new content types required to support new product development plans.  If we are unable to find new ways to collect content efficiently, and aggregate new content types in a cost effective manner, gross margins may decline.

We may improperly price new product offerings for broad client acceptance.

We have developed pricing strategies for our existing products, and will be required to develop new pricing strategies for planned new product launches.  If clients and prospects do not perceive that the pricing of our products is commensurate with the value they receive from the products, or if our sales force is unable to communicate the value of the products, particularly in light of the current economic climate, new client adoption and existing client retention would be adversely impacted.

We may overestimate the value to our clients of sales and marketing intelligence.

We believe there is a large unmet market need for robust public sector sales and marketing information because information that is highly fragmented across different levels of agencies.  Our business model assumes that clients will continue to pay recurring subscriptions for our content and delivery solutions and we expect increases in the annual value of these contracts as a result of this.  If we have overestimated the value of this information, we will not achieve our forecasted revenue goals.

Financial, economic and market risks

Utilization of our net operating loss carryforwards may be subject to annual limitations under the Internal Revenue Code, or may not be usable at all in the future.

We have substantial net operating loss carryforwards (“NOLs”) that could be used to offset future tax liabilities arising from future taxable income.  In 2011, we conducted a study and determined that an “ownership change” occurred in 2001, as defined under Section 382 of the Internal Revenue Code of 1986, as amended (which is generally a greater than a 50 percentage point increase by certain “5% shareholders” over a rolling three-year period).  Section 382 imposes an annual limitation on the utilization of net deferred tax assets, such as NOLs and other tax attributes, once an ownership change has occurred.  The ownership change which occurred in 2001 resulted in a permanent loss of $180.0 million of our U.S. federal NOLs.  After this impairment, we had $76.0 million in NOLs as of December 31, 2014 available to offset future taxable net income.

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It is possible that we could have an additional “ownership change” under Section 382 of the Code in the future and lose a significant portion of our net deferred tax assets, which could have a material adverse effect on our future results of operations and financial condition.  As discussed in the following risk factor, we adopted a tax benefits preservation plan in early 2011, which was amended and restated in 2014, to mitigate the risk of future ownership changes.

We had approximately $24.8 million in net deferred tax assets, excluding valuation allowance, as of December 31, 2014.  Realization of net deferred tax assets ultimately depends on the existence of sufficient taxable income, including taxable income in prior carryback years, as well as future taxable income.  We regularly review our net deferred tax assets for usability based on a history of earnings, expectations for future earnings and expected timing of reversals of temporary differences.  In particular, we consider our three-year earnings trend to determine if we have generated cumulative net income or net losses over that period, which the accounting guidance considers significant evidence to evaluate in determining the existence and amount of any valuation allowance.  Prior to 2011, we maintained a 100% valuation allowance against our net deferred tax assets because based upon our history of net operating losses, we were uncertain about our ability to generate future net income.  Since the end of 2011 through September 30, 2013, we believed, based on evaluation of all available objective positive and negative evidence related to the creation of future taxable net income, that a partial release of our valuation allowance was appropriate.  As of December 31, 2012 and through September 30, 2013, we believed that $2.2 million of net deferred tax assets reflected the amount that was more-likely-than-not to be realized in the future.

We continue to evaluate all relevant evidence to estimate the value of our net deferred tax assets.  Beginning in the fourth quarter of 2012, we have invested to accelerate top line revenue growth, but revenues have not accelerated as planned.  In 2014, we invested in accelerating growth and incurred net losses in each of the last nine quarters ending December 31, 2014.  If projections under our 2015 operating plan are realized, we expect to be in a cumulative three-year net loss position at the end of 2015.  Although the 2015 operating plan projects higher revenue, operating cash flow and Adjusted EBITDA compared to 2014, as a result of the projected cumulative three-year net loss, it is our best judgment that we should conclude that our net deferred tax assets are not more-likely-than-not to be utilized.   Accordingly we have maintained the valuation allowance as of December 31, 2014 to be 100% of our net deferred tax assets. We may reverse all or a portion of our valuation allowance in the future if it is determined that realization of these benefits is more likely than not.

We adopted a tax benefits preservation plan, designed to preserve the value of our net deferred tax assets, primarily related to net operating loss carryforwards (“NOLs”), which may discourage acquisition and sale of large blocks of our stock and may result in significant dilution for certain stockholders.

In April 2014, our Board of Directors (the “Board”) approved and adopted a tax benefits preservation plan in the form of the Amended and Restated Section 382 Rights Agreement (the “Amended Rights Agreement”), which amends and restates the previously approved Section 382 Rights Agreement, dated May 4, 2011.  The Amended Rights Agreement is designed to preserve stockholder value and the value of certain income tax assets primarily associated with NOLs by acting as a deterrent to any person acquiring beneficial ownership of 4.9% or more of Onvia’s outstanding common stock without the approval of the Board.  Ownership changes of greater than 5% could create an ownership change which could limit the realizable value of our NOLs.

Under the Amended Rights Agreement, one Preferred Stock Purchase Right (each, a “Right”) was distributed for each share of Common Stock outstanding as of the close of business on May 23, 2011.  Pursuant to the Amended Rights Agreement and at the discretion of our Board, if any person or group becomes the beneficial owner (subject to certain restrictions) of 4.9% or more of the outstanding shares of Common Stock the Rights may become exercisable.  Upon exercise of a Right and payment of the purchase price of $20.00 (the “Purchase Price”), the holder will be entitled to receive a number of shares of Common Stock having a market value equal to two times the Purchase Price.

The Amended Rights Agreement may discourage existing 5% stockholders from selling their interest in a single block which may impact the liquidity of Onvia common stock, may deter institutional investors from investing in Onvia stock, and may deter potential acquirers from making premium offers to acquire Onvia, all factors which may depress the market price of our stock or prevent stockholders from receiving a premium in a change in control transaction.

Our Board has formed an independent Rights Plan Committee to establish a process for evaluating indications of interest from shareholders interested in purchasing more than 4.9% of Onvia stock.

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Provisions of our charter documents and Delaware law may discourage takeover attempts and depress the market price of our stock.

Provisions of our certificate of incorporation and bylaws, as well as provisions of Delaware law, the state of our incorporation, can have the effect of making it difficult for a third-party to acquire us, even if doing so would be beneficial to our stockholders.  These provisions include:

• the classification of our Board of Directors into three classes so that the directors serve staggered three-year terms, which may make it difficult for a potential acquirer to gain control of our Board;

• authorizing the issuance of shares of undesignated preferred stock without a vote of stockholders; and

• non-cumulative voting for the election of directors.

We may require additional financial resources which may not be available on favorable terms or at all.

We believe that our existing cash and investment balances, and projected cash flow from operations, will be sufficient to fund our plans for the next 12 months and the foreseeable future. However, we may require additional financial resources due to changed business conditions, implementation of our strategy or to pursue future business opportunities requiring investments of additional capital. If our existing financial resources are insufficient to satisfy our requirements, we may seek additional borrowings. Credit market conditions may negatively affect debt availability and cost, and, as a result, financing may not be available in amounts or on terms acceptable to us, if at all. In addition, the incurrence of indebtedness would result in debt service obligations and could require us to agree to operating and financial covenants that would further restrict our operations.

Political pressure as a result of deficits and budget shortfalls, including recent developments around the federal budget and the sequester, may lead to reduced spending by federal, state and local government agencies.

Should agencies reduce spending, there may be fewer revenue opportunities to deliver to our clients.  Existing clients that leverage our products primarily for new sales leads may perceive a drop in opportunities as a reduction in their return on investment, which could lead to reduced retention rates.  In addition, prospects considering an investment in our products may perceive a decline in government spending as a signal that there will be fewer opportunities and they may decide against purchasing a business intelligence solution, or may decide against pursuing public sector opportunities all together, which would negatively impact new client acquisition.

Operational risks

We may not effectively implement new technologies, and new product functionality could fail to perform as designed.

We periodically release products that employ new search technologies and complex database architecture in new and innovative ways.  These technologies are usually built in house, or purchased from third party vendors and reengineered to meet our operational needs.  If the creative application of these technologies does not work as planned or if we implement these new technologies poorly or in incompatible ways, our new products and services may not function properly, delivery of our products could be disrupted or delayed and our client retention and new client acquisition may suffer.

System failures could cause an interruption in the services of our network and impact our ability to compile information and deliver our products to clients.

Any system failure that causes an interruption in the service of our suite of products, disrupts our ability to aggregate, organize and publish new content, or reduces timely access to and delivery of our content could result in client dissatisfaction, which would impact client acquisition and retention rates.  Further, prolonged or ongoing performance problems on our web sites or our application servers, which support bid creation and distribution, could damage our reputation and result in the permanent loss of clients. In the past, system interruptions have made our web sites and application servers totally unavailable, slowed their response time or prevented us from making service available to clients.  These problems may occur again in the future.

 We may not have sufficient business interruption insurance to cover losses from major interruptions. We deployed our primary business application servers to a secure offsite facility with backup utility power and redundant Internet connectivity in 2008.  Our current physical and virtual tape drive based disaster recovery systems are not capable of recovering core business functionality in less than a period of several days depending on severity in the event of a disaster scenario at the offsite facility.  Production Information Technology and Research department functions will be operational in the event of a local building disaster so that delivery of our products will not be significantly interrupted as long as the offsite facility is still operational.  Our disaster recovery plan does not yet include automated failover of product distribution-related systems, requiring extensive manual intervention to complete the recovery process which could result in prolonged service interruptions and ultimately lower client satisfaction.

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Our current technology infrastructure and network software systems may be unable to accommodate our anticipated growth, and we may require a significant investment in these systems to accommodate performance and storage requirements of new and planned products.

Expansion of the historical content contained in our products and future product offerings to clients have and will place significant additional demands on our enterprise-grade technology infrastructure.  We add thousands of records to our database each day, which has required us to expand the storage capacity of the database and clients access to this information requires significant computing power based on usage.  If new content types or product introductions change current network and computing requirements or if growth in our client base exceeds our expectations, we may be required to make significant investments to upgrade our systems to accommodate such changes, which could negatively impact our cash flows and results of operations.  We may not be successful in our efforts to upgrade our systems, or if we do successfully upgrade our systems, we may not do so on time and within budget. Failure to achieve a stable technological platform in time to handle increasing network usage may discourage potential clients from using our network.

We may not be able to attract and retain the services of our executive officers, directors, senior managers and other key employees, which could harm our business.

Our business and operations are substantially dependent on the performance of senior management, directors and key employees.  We face competition for the limited pool of these qualified professionals from other companies, some of which have a greater ability to attract and compensate these professionals.  Our process for succession planning across all levels of the organization to provide business continuity includes developing, coaching and rewarding high performing employees.  The loss and inability to replace any of these employees or directors, including any of Onvia’s executive officers, would likely harm our business. In addition, a failure to retain key personnel or hire and train additional qualified personnel as required to support our business, could adversely affect the quality of our products and services, as well as future business and operating results.

We could incur substantial costs in the future as a result of cyber incidents.

As our dependence on digital technologies to conduct operations increases, so does the risk associated with cyber security.  We may be unable to prevent targeted, random or accidental breaches of our security and could incur significant costs associated with lost or stolen information, including increased cyber security protection costs, lost revenues, reputational damage or increased litigation.

Political, social or environmental conditions in off-shore locations may impact the collection and delivery of our content and/or development of new products.

Portions of our content are aggregated and/or formatted by off-shore vendors.  Delivery of that content may be impacted by local political, social or environmental conditions, which may result in delayed delivery to clients resulting in client dissatisfaction.  We also outsource portions of the development of new products to off-shore vendors.  Political, social or environmental conditions in those locations may result in delays of new product introductions.

We may be unable to effectively monitor and prevent unauthorized redistribution of our published information.

In the past we have identified a number of entities that have redistributed proprietary information without authorization and against our terms of use.  We have been and will continue to be aggressive about monitoring and combating such unauthorized use, and are considering technological avenues for blocking such users from our database.  However, if we fail to effectively combat such unauthorized use, our business could be harmed.

 Our services and products depend upon the continued availability of licensed technology from third parties, and we may not be able to obtain those licenses on commercially reasonable terms, or at all.

We license, and will continue to license, technology integral to our services and products from third parties.  If we are unable to acquire or retain key third-party product licenses or integrate the related third-party products into our network services, our service and product development may be delayed.  We also expect to acquire new licenses in the future as our business grows and technology evolves.  We may not be able to obtain these licenses on commercially reasonable terms, or at all.

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  Regulatory, judicial or legislative risks

If we are unable to enforce and protect our intellectual property rights ourcompetitive position may be harmed.

We rely on a combination of copyright, trademark, confidentiality, non-compete and other contractual provisions to protect our intellectual property rights. Despite our efforts to protect our intellectual property rights, unauthorized third parties may obtain and use technology or other information that we regard as proprietary. Our intellectual property rights may not survive a legal challenge to their validity or provide significant protection for us. The laws of certain countries, particularly in emerging markets, do not protect our proprietary rights to the same extent as the laws of the United States. Accordingly, we may not be able to protect our intellectual property against unauthorized third-party copying or use, which could adversely affect our competitive position. Additionally, there can be no assurance that another party will not assert that we have infringed its intellectual property rights.

Future regulations could be enacted that either directly restrict our business or indirectly impact our business by limiting the growth of e-commerce.

We are subject to laws and regulations governing the Internet and e-commerce.  These laws and regulations may cover privacy, content, taxation, data protection, copyrights, electronic contracts and other communications, consumer protection, unencumbered Internet access to our services, the design and operations of websites, and the characteristics and quality of products and services.  If enacted, unfavorable laws and regulations could limit the market for our services and offerings. Although many regulations might not apply to the business directly, we expect that laws regulating the collection or processing of personal or consumer information could indirectly affect our business.  It is possible that legislation could expose companies involved in e-commerce to restrictions or liability, which could limit the growth of e-commerce generally. Legislation could hinder the growth in Internet use and decrease our acceptance as a medium for communication and commerce.  If laws were enacted that made our products taxable at the state level, we may be required to pass those additional taxes along to our clients, which would increase the overall cost of our product to our end users and could impact the buying decisions of existing and potential new clients.

Our access to new content from governmental entities and other third parties may be restricted.

We aggregate new information from various public data sources and other third parties and do not have exclusive access to this content.  We cannot ensure that these data sources will continue to be available in the future.  Moreover, public disclosure laws, which require governmental entities to produce bid information directly to members of the public, may negatively impact our business and reduce the value of our services to clients.  The loss or the unavailability of data sources in the future, or the loss of right to distribute some of the data sources, would harm our business.

Our proprietary content aggregation technology and processes are integral to our success.  The content we collect primarily consists of facts related to specific public sector opportunities, transactions, and contacts.  Although we endeavor to comply with all laws, rules and regulations applicable to the collection and distribution of our content, it’s possible that our collection and distribution activities may subject us to claims, including breach of contract and intellectual property infringement.  We may also be subject to claims that the collection or provision of certain information breached laws and regulations relating to privacy and data security.  Even if these claims do not result in liability to us, we could incur significant costs in investigating and defending against any claims.

If the process of content aggregation becomes regulated in the future and our process for acquiring government bids is no longer cost-effective, our business will be significantly harmed.  If new regulations restricting our ability to charge a fee for public bid information are enacted, our business will be significantly harmed.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Not applicable.

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ITEM 2. PROPERTIES

Our headquarters are located in Seattle, Washington.  Since January, 2008, we leased approximately 35,000 square feet in two floors of a sixteen-story office complex located at 509 Olive Way, Seattle, Washington.

During the first quarter of 2013, we entered into the first amendment to the lease agreement for our corporate offices.  The amendment, among other things, extends the lease term for an additional sixty-five (65) months with a new expiration date of April 30, 2021.  In addition, the Amendment reduces the rental area of the premises to approximately 29,606 square feet, after surrender of 5,394 square feet after the execution of the Amendment.  We have an additional right to surrender up to 8,898 square feet on or after November 30, 2015 in exchange for reimbursement of unamortized landlord incentives.  In addition to base rent, we will be responsible for our proportionate share of annual incremental increases in the building’s operating expenses, insurance, and real estate taxes over the 2013 base year.  We have a one-time right to terminate the amended lease in its entirety on or after December 1, 2017 in exchange for payment of a termination fee.

ITEM 3. LEGAL PROCEEDINGS

For a discussion regarding our legal proceedings, please refer to the “Legal Proceedings” section of Note 10, “Commitments and Contingencies”, in the Notes to Consolidated Financial Statements in this Report, which is incorporated herein by reference.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

EXECUTIVE OFFICERS OF THE REGISTRANT

The executive officers of the Company are as follows:

Name	Age	Position
Henry G. Riner	64	Chief Executive Officer and President
Irvine N. Alpert	63	Executive Vice President
Naveen Rajkumar	37	Senior Vice President and Chief Information Officer
Cameron S. Way	43	Senior Vice President and Chief Financial Officer

Henry G. Riner was appointed President and Chief Executive Officer in October 2010.  Mr. Riner has served as a Director of the Company since November 2010.  From March 2009 until September 2010, Mr. Riner served as President and Chief Executive Officer of OSG Billing Services, an electronic bill presentment and payment company.  From 2006 through 2008, Mr. Riner was President and Chief Executive Officer of CoAMS, a trade promotion information services company.  From 1997 through 2005, Mr. Riner was President and Chief Executive Officer of SourceLink, a direct marketing information services company.  Mr. Riner was President of UMI, a division of the Bell & Howell Company from 1994 through 1997.

Irvine N. Alpert has served as Executive Vice President of the Company since July 2001. From February 1995 to July 2001, Mr. Alpert was the founder and Chief Executive Officer of ProjectGuides, Inc., an architecture, engineering, and construction market information service, which was acquired by Onvia in June 2001.  From 1993 to 1995, Mr. Alpert served as President of RCI Environmental, Inc., a regional construction company.

Naveen Rajkumar has served as Senior Vice President and Chief Information Officer of the Company since August 2010.  Prior to becoming Senior Vice President and Chief Information Officer, Mr. Rajkumar served as Chief Information Officer of the Company from January 2010 to July 2010. From July 1999 to December 2009, Mr.Rajkumar served at Aditi Technologies in various positions, most recently as General Manager.

Cameron S. Way has served as Senior Vice President since August 2012 and Chief Financial Officer of the Company since April 2008. Mr. Way served as Chief Accounting Officer of the Company from June 2005 to April 2008, and as Controller from September 2001 to June 2005.  Mr. Way held various other positions within the company prior to 2001.  Mr. Way was an Assurance Manager with PricewaterhouseCoopers LLP from January 1994 to August 1999 prior to joining the Company.

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PART II

ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Our common stock currently trades on the NASDAQ Capital Market under the symbol “ONVI.”  The table below lists the high and low sale prices per share of our common stock for each quarterly period during the past two fiscal years as reported on the NASDAQ Capital Market.

	Price Range of Common Stock
	High		Low
Year ended December 31, 2013
First Quarter	$	3.84	$	3.35
Second Quarter		4.69		3.59
Third Quarter		5.58		4.49
Fourth Quarter		5.19		4.42
Year ended December 31, 2014
First Quarter	$	5.55	$	4.72
Second Quarter		5.40		4.29
Third Quarter		4.97		4.28
Fourth Quarter		5.49		4.15

Holders

As of March 1, 2015, there were approximately 273 holders of record of Onvia common stock.  The number of record holders was determined from the records of the Company’s transfer agent and does not include the number of persons whose stock is held in nominee or “street name” accounts through brokers.

Dividends

No cash dividends were declared for the years ended December 31, 2014 and 2013 nor does the Company have the intention to pay cash dividends in the foreseeable future.

Stock Price Performance Graph

The registrant is a Smaller Reporting Company and, therefore, is not required to provide the information under this item.

ITEM 6.                 SELECTED CONSOLIDATED FINANCIAL DATA

The registrant is a Smaller Reporting Company and, therefore, is not required to provide the information under this item.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the Consolidated Financial Statements and accompanying Notes hereto.

Management Overview – 2014 Results and 2015 Priorities

Subscription revenue for the year ended December 31, 2014 grew 5%, over the same period in 2013.  The growth in subscription revenue is primarily a result of improved client retention and contract expansions throughout the year.Our annual operating initiatives are designed to drive growth in subscription revenue and Adjusted EBITDA.

Total revenue for the years ended December 31, 2014 and 2013 was $22.6 million and $22.0 million, respectively, an annual growth rate of 3%.

Annual Contract Value, or ACV, increased by 6% to $21.5 million as of December 31, 2014 from $20.3 million one year ago.  Growth in ACV indicates that new client acquisitions, contract expansions and improving client retention rates have more than offset the impact of client attrition.  ACV represents the aggregate annual value of our subscription contracts and we believe is a leading indicator of future revenue growth.

Annual Contract Value per Client, ACVC, increased 17% to $6,500 per client as of December 31, 2014 compared to $5,572 as of December 31, 2013.  We believe, growth in ACVC demonstrates success in acquiring clients with a strategic interest in the public sector at a regional or national level.  Companies within this target market typically have higher ACVC and renew at higher rates, which are key attributes of a profitable long-term client.

 As of December 31, 2014, Onvia had 3,300 clients, down 10% from 3,650 clients during the same period one year ago. Our decline in client count is anticipated as a result of the decision to transition to a more strategic target market.  We believe that ACV is a better measure of quarterly sales activity than number of clients.

2014 operating expenses increased 4% to $19.6 million compared to $18.8 million in 2013 primarily due to investments in sales and marketing to drive future revenue growth.  We expense 100% of variable sales cost upon sale, but recognize revenue ratably over the term of subscription.  Until we achieve scale, variable sales costs may exceed the incremental revenue generated each period, which negatively impacts short term Adjusted EBITDA and net income.

Adjusted EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization, and non-cash stock-based compensation) for the year ended December 31, 2014 was $2.5 million down 9% from $2.8 million in 2013.  See “Non-GAAP Financial Measures” below for more information regarding Adjusted EBITDA.

Annual net loss was $727,000, or $0.10 cents per diluted share for the year ended December 31, 2014 compared to the loss of $2.7 million, or $0.36 cents per diluted share in 2013.  During the year ended December 31, 2013, we increased its valuation allowance to be 100% of its net deferred tax assets which resulted in $2.2 million being recognized as a provision for income taxes in 2013.

We had $24.8 million and $24.9 million of net deferred tax assets, excluding valuation allowance, related to $76.0 million and $73.0 million in net operating loss carryforwards, respectively, available to offset future taxable net income at December 31, 2014 and December 31, 2013.  At December 31, 2014 and December 31, 2013 we have recorded a full valuation allowance against our net deferred tax assets, resulting $-0- net deferred tax assets due to the uncertainty of future taxable income available to utilized these tax benefits, including accumulated net operating loss carryforwards, before expiration.

As of December 31, 2014 we held cash and investments of $8.0 million compared to $7.5 million at the end of last year, representing an increase of $477,000 during 2014 primarily due to reduced investment in capitalized property and equipment in 2014 compared to 2013.

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2014 Results

In 2014, Onvia management focused on four new initiatives intended to accelerate subscription revenue and Adjusted EBITDA by leveraging the solid foundation built over the preceding three years.

· Our first 2014 initiative was to accelerate the acquisition of the new clients within the defined verticals of the new target market.  2014 was our first full year selling into its new target market of companies with a national or regional geographic focus.  Total acquisition bookings declined in 2014 compared to 2013, however, the volume of national and regional acquisition bookings increased compared to the same period last year.  In addition, the ACVC for new clients grew 41% to $15,272 in 2014 from $10,834 in 2013.  We believe the growth in national and regional acquisition bookings and corresponding improvement in ACVC continues to validate our adoption of a new target market strategy implemented in the fourth quarter of 2013.

· Our second initiative was to improve first year client retention and renew tenured, long term clients within the target market.  During 2014 our Client Success team was reorganized to focus on three specific objectives: client retention, first year client on-boarding and contract upgrades.  Dollar retention is a measurement of how effectively the Client Success team achieves these three short and long-term objectives.  For the twelve months ended December 31, 2014, dollar retention increased to 88%, up from 85% in the same period last.  Dollar retention can fluctuate from period to period due to the mix of first year and tenured clients expiring in each period.

· Our third initiative was to maximize growth within the existing client base.  During 2014 we formed a team dedicated to increasing clients’ investment in the Onvia solution.  Contract upgrades are the primary measure of the results of this initiative. In 2014 contract upgrades increased 43% compared to 2013.  This growth provides further evidence that there is significant opportunity to expand the adoption of Onvia’s solutions deeper into its client organizations. Management continues to believe that by meeting more business objectives, the partnership with clients is strengthened which should drive improvements in ACVC and increase the lifetime value of each client.

· Our fourth and final initiative was to continue to drive enhancements to our existing platform and to provide innovative new solutions that make Onvia a strategic business partner with our clients.  In October 2014 the software and platform enhancements were completed for Onvia 7.  Through machine learning and natural language processing we are now creating the ontologies for each of our markets served.  These ontologies are the foundation of the Onvia 7 search paradigm.  The ontologies add structured tags to all procurement documents. When completed they drive more precise search results and higher recall of relevant opportunities from the Onvia database.  We anticipate it will take us all of 2015 to both create these ontologies and migrate our clients from the old search paradigm to Onvia 7.  Our proprietary ontologies are designed to provide Onvia, and our clients, with a significant competitive advantage.

Once the migration to Onvia 7 is completed our clients will have a significantly better search experience.  There will be three benefits to the client.  One, the platform will be easier to use because constructing a search will be intuitive.  Two, search results will be more relevant eliminating most of the noise in the current platform.  Three, the findability of our platform will be improved.  Clients will be able to mine and recall opportunities that could not be identified under the old search paradigm.

As of December 2014, clients now have the opportunity to access agency purchase orders as an additional module on the Onvia platform for an additional fee.  This gives our clients access to actual purchase orders of their customers and prospects so they have greater visibility into actual spending by the agencies.

2015 Initiatives

In 2015, Onvia management is focused on three new initiatives intended to build on the results achieved in 2014 and further accelerate growth in subscription revenue and Adjusted EBTIDA.

· Our first 2015 initiative is to further accelerate year over year bookings growth.  This growth is planned in three key areas; sales to new customers, contract enhancements with existing customers and improved retention of our existing customers.  The measure of success for this initiative includes the overall growth in new client bookings, growth in ACV and improvement in dollar retention.

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· Our second 2015 initiative is to enhance the existing Onvia platform and provide improved content which further aligns to customer needs. This initiative includes the continued rollout of Onvia 7 search features to our target market clients.  This rollout will take most of 2015 to complete.In addition, we intend to invest in new content with an emphasis on forward-looking intelligence and pre-bid notifications, which has been identified as the number one customer need. We measure success of this initiative through the effectiveness of product releases and the impact on new client ACVC and dollar retention.

· Our third and final 2015 initiative is to improve the existing information technology infrastructure as a means to reduce complexity, accelerate product development and reduce costs long-term.  We will focus on three major areas.  The first focus will be moving to an open source search technology which will increase our capacity for search and improve search speed.  Secondly, we’ll be changing database structures to allow for faster more agile product enhancements in the future.  Finally, we’ll further automate data capture to allow us to scale content without adding cost in the future.  We plan on no additional capital expenditures beyond our current annual level of investment to make these technology improvements.

Application of Critical Accounting Policies and Management Estimates

Our discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.  The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of commitments and contingencies.  We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ significantly from our estimates.  In addition, any significant unanticipated changes in any of our assumptions could have a material adverse effect on our business, financial condition, and results of operations.  We believe the following are our most significant accounting policies and estimates.

Revenue Recognition

Our revenues are primarily generated from subscriptions, content licenses and management reports.  Our subscriptions are generally annual contracts; however, we also offer extended multi-year contracts to our subscription clients, and content licenses are generally multi-year agreements.  Subscription and content licenses are recognized ratably over the term of the agreement.  We also generate revenue from fees charged for management reports, document download services, and other services, and revenue from these types of services is recognized upon delivery, or, if report refreshes are included, ratably over the service period.

Our subscription services and management information reports are also sold together as a bundled offering.  Pursuant to the provisions of Accounting Standard Codification, or ASC, 605-25 Revenue Recognition, we allocate revenue from these bundled sales ratably between the subscription services and the management reports based on their relative fair values, which are consistent with established list prices for those offerings.  We measure and allocate arrangement consideration to one or more units of accounting for separate deliverables.  We also establish a selling price hierarchy for determining the selling price of a deliverable.

Unearned revenue consists of payments received for prepaid subscriptions, as well as the invoiced, but unpaid, portion of subscriptions and content licenses whose terms extend into periods beyond the balance sheet date.

Internal Use Software

We account for the costs to develop or obtain software for internal use in accordance with ASC 350-40, Intangibles – Goodwill and Other subtopic Internal-Use Software.  As a result, we capitalize qualifying computer software costs incurred during the “application development stage.”  Amortization of these costs begins once the product is ready for its intended use.  These capitalized software costs are amortized on a straight-line basis over the estimated useful life of the product, typically 3 to 5 years.  The amount of costs capitalized within any period is dependent on the nature of software development activities and projects in each period.

Pursuant to ASC 360, Property, Plant, and Equipment, we periodically evaluate the remaining useful lives of internal use software and will record an abandonment if management determine that all or a portion of the asset will no longer be used, or will adjust the remaining useful life to reflect revised estimates for impairment.  In addition, if the carrying value of the software exceeds the estimated future cash flows, an impairment will be recorded to reduce the carrying value to the expected realizable value.  No assets were impaired during the years ended December 31, 2014 or 2013.

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Stock-Based Compensation

We account for stock-based compensation according to the provisions of ASC 718 Compensation – Stock Compensation, which requires measurement of compensation cost for all stock-based awards at fair value on the date of grant and recognition of stock-based compensation cost over the requisite service period for awards expected to vest.  The fair value of our stock options is determined using the Black-Scholes valuation model.  Such value is recognized as expense over the service period, net of estimated forfeitures.  The estimate of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised.  We consider many factors when estimating expected forfeitures, including employee class and historical experience.  There is also significant judgment required in the estimation of the valuation assumptions used to determine the fair value of options granted.  Please refer to the discussion of valuation assumptions in Note 2 of the “Notes to Consolidated Financial Statements” of this Report for additional information on the estimation of these variables.  Actual results, and future changes in estimates, may differ substantially from our current estimates.

Income Taxes

We account for income taxes using the asset and liability method.  Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and for net operating loss, or NOL, carryforwards.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The deferred tax asset has been reduced by a valuation allowance that reduces the amount of our deferred tax asset to a level that is more-than-likely-than-not to be recognized.  In determining the amount of the valuation allowance we consider whether it is more likely that some portion or all of the net deferred tax assets will not be realized.  In particular, we consider our three-year earnings trend to determine if we have generated cumulative net income or net losses over that period, which the accounting guidance considers significant evidence to evaluate in determining the existence and amount of any valuation allowance.  We also consider positive evidence, such as the improving trends in the leading indicators of revenue growth to evaluate the likelihood of generating taxable net income in the future.  The ultimate realization of net deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are expected to be deductible.  We will continue to review the estimate of future taxable income and will adjust the valuation allowance accordingly as new information becomes available.

Utilization of the NOL carryforwards may be subject to a substantial annual limitation due to an ownership change that could occur in the future provided by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”).  These ownership changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable income and tax, respectively.  In general, an ownership change, as defined by Section 382 of the Code, results from transactions increasing the ownership of certain stockholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period.

In 2011, we performed a Section 382 analysis and identified an ownership change that occurred in September 2001.  Section 382 imposes an annual limitation on the utilization of net deferred tax assets, such as NOLs and other tax attributes, once an ownership change has occurred.  The ownership change resulted in a permanent loss of $180.0 million of our U.S. federal net deferred tax assets.   We believe that, as a result of the annual Section 382 limitation, we will permanently be unable to use a significant portion of our NOL carryforwards that arose before the change in control to offset future taxable income.  As such, we reduced our NOL gross deferred tax asset by the amount of NOLs that we will permanently be unable to utilize, which in turn resulted in a reduction to our valuation allowance.

In April 2014, our Board approved and adopted a tax benefits preservation plan in the form of the Amended Rights Agreement, which amends and restates the previously approved Section 382 Rights Agreement, dated May 4, 2011.  The Amended Rights Agreement is designed to preserve stockholder value and the value of certain income tax assets primarily associated with NOLs by acting as a deterrent to any person acquiring beneficial ownership of 4.9% or more of Onvia’s outstanding common stock without the approval of the Board.  Ownership changes of greater than 5% could create an ownership change which could limit the realizable value of our NOLs.

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Non-GAAP Financial Measures

We prepare and publicly release quarterly financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP).  The non-GAAP financial measures we may disclose include Adjusted EBITDA and client metrics such as ACV and ACVC.  For a discussion regarding our client metrics, please refer the “Clients” section of Item 1 “Business”.  We typically disclose Adjusted EBITDA measures in earnings releases, investor conference calls and filings with the Securities and Exchange Commission.  Adjusted EBITDA is not a financial measure calculated and presented in accordance with GAAP and should not be considered as an alternative to net income, operating income or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities or as a measure of the company’s liquidity.  We define Adjusted EBITDA as net income / (loss) before interest and other non-cash financing costs; taxes; depreciation; amortization; and non-cash stock-based compensation.  Other companies (including our competitors) may define Adjusted EBITDA differently.  We present Adjusted EBITDA because we believe Adjusted EBITDA to be an important supplemental measure of performance that is commonly used by securities analysts, investors and other interested parties in the evaluation of companies in similar industries and size.  Management also uses this information internally for forecasting and budgeting.  It may not be indicative of our historical operating results nor is it intended to be predictive of potential future results.  Investors should not consider Adjusted EBITDA in isolation or as a substitute for analysis of results as reported under GAAP.

The following table provides reconciliation of GAAP Net Loss to Adjusted EBITDA for the indicated periods (in thousands):

	Twelve Months Ended December 31,
	2014			2013
GAAP net loss	$	(727	)	$	(2,725	)
Reconciling items from GAAP to adjusted EBITDA
Interest and other income, net		(11	)		(22	)
Depreciation and amortization		3,091			3,051
Amortization of stock-based compensation		152			278
Provision for income tax		-			2,175
Adjusted EBITDA	$	2,505		$	2,757

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Consolidated Results of Operations

The following table provides our selected consolidated results of operations for the indicated periods (in thousands of dollars and as a percentage of total revenue):

	Years Ended December 31,
	2014					2013
Revenue:
Subscription	$	20,338		89.9	%	$	19,356		87.9	%
Content license		1,906		8.4	%		1,942		8.8	%
Management information reports		154		0.7	%		435		2.0	%
Other		227		1.0	%		287		1.3	%
Total revenue		22,625		100.0	%		22,020		100.0	%
Cost of revenue (exclusive of depreciation and amortization included below)		3,732		16.5	%		3,749		17.0	%
Gross margin		18,893		83.5	%		18,271		83.0	%
Operating expenses:
Sales and marketing expenses		11,902		52.6	%		11,429		51.9	%
Technology and development expenses		4,129		18.2	%		4,055		18.4	%
General and administrative expenses		3,600		15.9	%		3,359		15.3	%
Total operating expenses		19,631		86.7	%		18,843		85.6	%
Loss from operations		(738	)	(3.2	%)		(572	)	(2.6	%)
Interest and other income, net		11		0.0	%		22		0.1	%
Loss before income tax		(727	)	(3.2	%)		(550	)	(2.5	%)
Provision for income taxes		-		0.0	%		2,175		9.9	%
Net loss	$	(727	)	(3.2	%)	$	(2,725	)	(12.4	%)

Comparison of Years Ended December 31, 2014 and 2013

Revenue

Total revenue for the years ended December 31, 2014 and 2013 was $22.6 million and $22.0 million, respectively.  Subscription revenue for the year ended December 31, 2014 grew 5% over the same periods in 2013.  Our annual operating initiatives are designed to drive subscription revenue growth as discussed in the Management Overview section above.

Cost of Revenue

Cost of revenues for the years ended December 31, 2014 and 2013 were as follows (in thousands):

							Increase / (Decrease)
	2014			2013			Amount			Percent
Twelve months ended December 31,	$	3,732		$	3,749		$	(17	)		(0	%)
Percentage of Revenue		16	%		17	%

Our cost of revenue primarily represents payroll-related expenses associated with the research and aggregation of the data in our proprietary database and third-party content fees, and also includes credit card processing fees.  The decrease for the comparable periods was due to individually immaterial changes.

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Sales and Marketing

Sales and marketing expenses for the years ended December 31, 2014 and 2013 were as follows (in thousands):

							Increase / (Decrease)
	2014			2013			Amount		Percent
Twelve months ended December 31,	$	11,902		$	11,429		$	473		4	%
Percentage of Revenue		53	%		52	%

The increase in expenses for the comparable periods is primarily related to a $366,000 increase in commission expenses as a result of higher bookings, and a $105,000 increase due to a reduction in costs capitalized as internal software costs attributable to the nature of development efforts during 2014.

Technology and Development

Technology and development expenses for the years ended December 31, 2014 and 2013 were as follows (in thousands):

							Increase / (Decrease)
	2014			2013			Amount		Percent
Twelve months ended December 31,	$	4,129		$	4,055		$	74		2	%
Percentage of Revenue		18	%		18	%

The increase in expenses for the comparable periods is primarily attributed to a $115,000 increase in amortization of licensed software offset by a $49,000 decrease in facilities cost due to elimination of long-distance calls upon installation of new phone system and other individually immaterial changes.

General and Administrative

General and administrative expenses for the years ended December 31, 2014 and 2013 were as follows (in thousands):

							Increase / (Decrease)
	2014			2013			Amount		Percent
Twelve months ended December 31,	$	3,600		$	3,359		$	241		7	%
Percentage of Revenue		16	%		15	%

The increase in expenses for the comparable periods is related to a $172,000 increase in payroll related costs primarily a result of filling positions in 2014 that were open in 2013 and other individually immaterial changes.

Other Income, Net

Other income, net consists of interest earned on our investment accounts, interest expense associated with capital leases and other miscellaneous income or expense.  Other income, net was $11,000, and $22,000 for the years ended December 31, 2014 and 2013, respectively.

Provision for Income Taxes

We had approximately $24.8 million and $24.9 million in net deferred tax assets, excluding valuation allowance, as of December 31, 2014 and December 31, 2013, respectively.  We consider our three-year earnings trend to determine if we have generated cumulative net taxable income or net taxable losses over that period, which the accounting guidance considers significant evidence to evaluate in determining existence and amount of any valuation allowance.  Beginning in the fourth quarter of 2012, we have invested to accelerate top line revenue growth, but revenues did not accelerate as planned in 2013.  As a result, we incurred net losses in each of the last nine quarters ended December 31, 2014.  If projections under our 2015 operating plan are realized, we expect to be in a cumulative three-year net loss position at the end of 2015.  Although the 2015 operating plan projects higher revenue, operating cash flow and Adjusted EBITDA compared to 2014, as a result of the projected cumulative three-year net loss, it is our best judgment that we should conclude that our net deferred tax assets are not more-likely-than-not to be utilized.  Accordingly we have maintained the valuation allowance as of December 31, 2014 at 100% of our net deferred tax assets. In December 2013, we increased our valuation allowance to 100% of our net deferred tax assets, which resulted in $2.2 million being recognized as a provision for income taxes in 2013. We have maintained our valuation allowance at 100% of net deferred tax assets as of December 31, 2014.

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 Liquidity and Capital Resources

Our principal sources of liquidity are cash, cash equivalents and short-term investments.  Our combined cash and cash equivalents and short term investments were $8.0 million at December 31, 2014.  At December 31, 2014 we held $6.4 million in FDIC insured or U.S. government backed short-term investments.

On April 2, 2013, we repurchased 1.2 million shares of our outstanding common stock from a third party at $3.50 per share for a total purchase price of approximately $4.3 million, excluding transaction fees of approximately $48,000.  We believe that our remaining cash, cash equivalents and short term investments balance is adequate to fund operations until free cash flow accelerates in the future.

If we engage in merger or acquisition transactions or our overall operating plans change, we may require additional equity or debt financing to meet future working capital needs, which may have a dilutive effect on existing stockholders or may include securities that have rights, preferences or privileges senior to those of the rights of our common stock.  We cannot make assurances that if additional financing is required, it will be available, or that such financing can be obtained on satisfactory terms.

From December 31, 2013 to December 31, 2014, cash and cash equivalents decreased by $0.5 million for the reasons described below.

Operating Activities

Net cash provided by operating activities was $2.7 million and $3.0 million for the years ended December 31, 2014 and 2013, respectively.  The decrease in operating cash flow is primarily due to lower cash receipts from our customers net of cash payments to vendors.

Investing Activities

Net cash used by investing activities was $3.3 million and $187,000 for the years ended December 31, 2014, and 2013, respectively.

Purchases of property and equipment and investments in internal use software decreased by $611,000 in the twelve months of 2014 compared to the same period in 2013.  We purchased $11.7 million and $10.5 million in short term investments during the twelve months of 2014 and 2013, respectively.  During the twelve months of 2014 we received $10.8 million from the sale and maturity of investments, compared to $13.5 million during the same period of 2013.  In addition, pursuant to our new lease agreement, we have established a stand by letter of credit during 2013 which required a security deposit of $150,000.

Financing Activities

Net cash provided by financing activities was $53,000 for the year ended December 31, 2014, compared to $4.7 million of net cash used in financing activities for the year ended December 31, 2013.  The increase in cash provided by financing activities is due to $4.4 million of stock repurchase (including transaction fees) included in the year ended December 31, 2013, a $121,000 increase in proceeds from stock options exercises and purchases under employee stock purchase plan, and a $186,000 decrease in principal payments on capital leases.

Off-Balance Sheet Arrangements

We did not have any off-balance sheet arrangements as of December 31, 2014.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The registrant is a Smaller Reporting Company and, therefore, is not required to provide the information under this item.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders

Onvia, Inc.

We have audited the accompanying consolidated balance sheet of Onvia, Inc. (the “Company”) as of December 31, 2014, and the related consolidated statements of operations, comprehensive (loss)/income, stockholders’ equity, and cash flows for the year then ended. Our audit also included the financial statement schedules listed in the Index and appearing in Item 15. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position Onvia, Inc. as of December 31, 2014, and the consolidated results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the related financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly in all material respects the information set forth therein.

/s/ Moss Adams LLP

Seattle, Washington

March 17, 2015

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Onvia, Inc.

Seattle, Washington

We have audited the accompanying consolidated balance sheets of Onvia, Inc. and subsidiary (the ''Company'') as of December 31, 2013, and the related consolidated statements of operations and comprehensive (loss)I income, stockholders' equity, and cash flows for the year ended December 31, 2013. Our audits also included the financial statement schedules listed in the Index at Item 15. These financial statements and financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements and financial statement schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2013, and the results of their operations and their cash flows for the year ended December 31, 2013, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

/s/ DELOITTE & TOUCHE LLP

Seattle, Washington

March 28, 2014

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ITEM 8.                      CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ONVIA, INC.

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2014 AND 2013

	December 31, 2014			December 31, 2013
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,576,799		$	2,072,865
Short-term investments, available-for-sale		6,436,289			5,463,406
Accounts receivable, net of allowance for doubtful accounts of $42,491 and $24,751		1,735,009			1,332,509
Prepaid expenses and other current assets		682,240			570,098
Total current assets		10,430,337			9,438,878
LONG TERM ASSETS:
Property and equipment, net of accumulated depreciation		1,357,683			1,773,012
Internal use software, net of accumulated amortization		5,059,365			5,432,808
Long-term investments		-			90,444
Other long-term assets		180,980			173,824
Total long term assets		6,598,028			7,470,088
TOTAL ASSETS	$	17,028,365		$	16,908,966
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	873,433		$	834,215
Accrued expenses		1,097,570			959,652
Unearned revenue, current portion		8,478,327			7,770,502
Other current liabilities		81,594			244,060
Total current liabilities		10,530,924			9,808,429
LONG TERM LIABILITIES:
Unearned revenue, net of current portion		404,980			649,681
Deferred rent, net of current portion		590,346			586,071
Other long-term liabilities		68,605			97,704
Total long term liabilities		1,063,931			1,333,456
TOTAL LIABILITIES		11,594,855			11,141,885
COMMITMENTS AND CONTINGENCIES (Note 10)
STOCKHOLDERS’ EQUITY:
Preferred stock; $.0001 par value: 2,000,000 shares authorized; no shares issued or outstanding		-			-
Common stock; $.0001 par value: 11,000,000 shares authorized; 8,643,460 and 8,577,732 shares issued; and 7,400,653 and 7,345,189 shares outstanding		740			735
Treasury stock, at cost: 1,242,807 and 1,242,807 shares		(4,397,803	)		(4,397,803	)
Additional paid in capital		353,852,218			353,458,109
Accumulated other comprehensive loss		(562	)		(156	)
Accumulated deficit		(344,021,083	)		(343,293,804	)
Total stockholders’ equity		5,433,510			5,767,081
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	17,028,365		$	16,908,966

See notes to consolidated financial statements.

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ONVIA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

YEARS ENDED DECEMBER 31, 2014 AND 2013

	2014			2013
Revenue
Subscription	$	20,338,249		$	19,356,245
Content license		1,905,431			1,941,864
Management information reports		154,067			434,411
Other		226,981			287,251
Total revenue		22,624,728			22,019,771
Cost of revenue (exclusive of depreciation and amortization included below)		3,731,608			3,749,178
Gross margin		18,893,120			18,270,593
Operating expenses:
Sales and marketing		11,902,667			11,429,045
Technology and development		4,128,838			4,054,399
General and administrative		3,600,064			3,359,214
Total operating expenses		19,631,569			18,842,658
Loss from operations		(738,449	)		(572,065	)
Interest and other income, net		11,170			22,490
Loss before income tax		(727,279	)		(549,575	)
Provision for income taxes		-			2,175,000
Net loss	$	(727,279	)	$	(2,724,575	)
Unrealized loss on available-for-sale securities		(406	)		(1,437	)
Comprehensive loss	$	(727,685	)	$	(2,726,012	)
Basic and diluted net loss per common share	$	(0.10	)	$	(0.36	)
Basic and diluted weighted average shares outstanding		7,385,740			7,638,452

See notes to consolidated financial statements.

30

ONVIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2014 AND 2013

	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(727,279	)	$	(2,724,575	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		3,091,441			3,051,283
Idle lease accrual		-			(73,571	)
Stock-based compensation		151,778			277,596
Deferred taxes		-			2,175,000
Change in operating assets and liabilities:
Accounts receivable		(402,500	)		(54,947	)
Prepaid expenses and other assets		(119,688	)		(10,967	)
Accounts payable		109,449			2,335
Accrued expenses		137,918			168,632
Unearned revenue		463,124			156,517
Deferred rent		24,629			55,038
Net cash provided by operating activities		2,728,872			3,022,341
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment		(302,220	)		(847,378	)
Additions to internal use software		(2,093,085	)		(2,158,906	)
Purchases of investments		(11,731,313	)		(10,495,645	)
Sales of investments		1,570,016			3,255,517
Maturities of investments		9,278,860			10,210,229
Security deposits		(19	)		(150,369	)
Net cash used in investing activities		(3,277,761	)		(186,552	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on capital lease obligations		(189,513	)		(375,348	)
Repurchase of stock		-			(4,397,674	)
Proceeds from exercise of stock options and purchases under employee stock purchase plan		242,336			121,698
Net cash provided by / (used in) financing activities		52,823			(4,651,324	)
Net decrease in cash and cash equivalents		(496,066	)		(1,815,535	)
Cash and cash equivalents, beginning of period		2,072,865			3,888,400
Cash and cash equivalents, end of period	$	1,576,799		$	2,072,865
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Unrealized loss on available-for-sale investments	$	(406	)	$	(1,437	)
Purchases under capital lease obligations		(6,134	)		(117,354	)
Property and equipment additions in accounts payable		(48,995	)		(28,978	)
Internal use software additions in accounts payable		(135,916	)		(225,809	)

See notes to consolidated financial statements.

31

ONVIA, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

YEARS ENDED DECEMBER 31, 2014 AND 2013

	Common stock						Treasury stock					Additional			Accumulated other			Accumulated
	Shares			Amount			Shares		Amount			paid in capital			comprehensive loss			deficit			Total
BALANCE, January 1, 2013		8,528,281			853			26		(129	)		353,077,517			1,281			(340,569,229	)		12,510,293
Exercise of stock options		56,495			6								145,723									145,729
Stock options held for taxes		(15,847	)		(2	)							(56,098	)								(56,100	)
Purchases under Employee Stock Purchase Plan		8,777			1								32,191									32,192
Stock repurchase		(1,242,781	)		(124	)		1,242,781		(4,397,674	)											(4,397,798	)
Stock-based compensation													277,596									277,596
Restricted stock units released		13,954			1																	1
Restricted stock units held for taxes		(3,690	)										(18,820	)								(18,820	)
Unrealized loss on available-for-sale investments																(1,437	)					(1,437	)
Net loss		-			-			-		-			-			-			(2,724,575	)		(2,724,575	)
BALANCE, December 31, 2013		7,345,189		$	735			1,242,807	$	(4,397,803	)	$	353,458,109		$	(156	)	$	(343,293,804	)	$	5,767,081
Exercise of stock options		45,791			5								204,580									204,585
Purchases under Employee Stock Purchase Plan		9,673											37,751									37,751
Stock-based compensation													151,778									151,778
Unrealized loss on available-for-sale investments																(406	)					(406	)
Net loss		-			-			-		-			-			-			(727,279	)		(727,279	)
BALANCE, December 31, 2014		7,400,653		$	740			1,242,807	$	(4,397,803	)	$	353,852,218		$	(562	)	$	(344,021,083	)	$	5,433,510

See notes to consolidated financial statements.

32

ONVIA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2014 AND 2013

Note 1: Summary of Significant Accounting Policies

Description of business

Onvia (“Onvia” or the “Company”) is a leading provider of business information and research solutions that help companies plan, market and sell to government agencies throughout the United States, or U.S.  Onvia’s business solution provides clients online access to a proprietary database of government procurement opportunities across the federal, state, local, and education sectors.  The business intelligence derived from our database allows clients to identify new market opportunities, analyze market trends, and obtain insights about their competitors and channel partners.  The Company believes its business solutions provide clients with a distinct competitive advantage, increased revenue opportunities, and strategic insight into the public sector market.

Basis of consolidation

Onvia had a wholly-owned subsidiary in Canada that was dissolved effective December 19, 2014; however, there was no business activity in this subsidiary in the fiscal years ended December 31, 2014 or 2013.  The wholly-owned subsidiary owned no assets or liabilities as of the date of dissolution.

Use of estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires the Company’s management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.  Significant estimates include the fair value of stock-based compensation, allowance for doubtful accounts, recoverability of long-lived assets, and the valuation allowance for net deferred tax assets.  The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances.  Actual results may differ significantly from the Company’s estimates.  In addition, any significant unanticipated changes in any of the Company’s assumptions could have a material adverse effect on its business, financial condition, and results of operations.

Revenue recognition

Onvia’s revenues are primarily generated from client subscriptions, content licenses and management reports.  Onvia’s subscriptions are generally annual contracts; however, the Company also offers extended multi-year contracts to its subscription clients, and content licenses are generally multi-year agreements.  Subscription fees and content licenses are recognized ratably over the term of the agreement.  Onvia also generates revenue from fees charged for management reports, document download services, and other services; revenue from these types of services is recognized upon delivery, or, if report refreshes are included, ratably over the service period.

Onvia’s subscription services and management reports are also sold together as a bundled offering.  The Company allocates revenue from these bundled sales ratably between the subscription services and the management reports based on established list prices for those offerings.The Company measures and allocates arrangement consideration to one or more units of accounting for separate deliverables.  The Company also establishes a selling price hierarchy for determining the selling price of a deliverable.

Unearned revenue consists of payments received for prepaid subscriptions, as well as the invoiced, but unpaid, portion of subscriptions and content licenses whose terms extend into periods beyond the balance sheet date.

Fair value of financial instruments

Onvia’s financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable, security deposits, accounts payable, and accrued liabilities.  The carrying amounts of the current portion of the financial instruments approximate fair value due to their short maturities.  The carrying value of the long-term portion of security deposits approximates fair value as the interest rate is at market value.  All investments, when held, are classified as available-for-sale and are reported at fair value based on market quotes, and unrealized gains or losses on these investments are recorded in stockholders’ equity and reported in comprehensive income.

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Cash, cash equivalents and investments

Onvia considers all highly liquid instruments with remaining maturities at purchase of 90 days or less to be cash equivalents.  The fair value of the money market funds, included in cash equivalents, at December 31, 2014 and 2013, was classified as Level 1, as amounts were based on quoted prices available in active markets for identical investments as of the reporting date.  Investments with original maturities of greater than 90 days, but with remaining maturities of less than one year are classified as short-term, and investments with remaining maturities of 365 days or greater are classified as long-term.  All investments are classified as available-for-sale and reported at fair value based on market quotes, and unrealized gains or losses on these investments are recorded in stockholders’ equity and reported in comprehensive income.

Management of credit risk

Onvia is subject to concentration of credit risk, primarily from its investments and customer contracts.  Onvia manages its credit risk for investments by purchasing investment-grade securities and diversifying its investment portfolio among issuers and maturities.  Currently, the Company invests primarily in FDIC insured or government backed funds and securities to mitigate the credit risk associated with its investment portfolio.  The Company manages credit risks on customer contracts by adhering to common underwriting practices.

Property and equipment

Equipment and leasehold improvements are stated at cost, net of accumulated depreciation.  Depreciation expense on software, furniture, and equipment is recorded using the straight-line method over estimated useful lives of three to five years.  Leasehold improvements are depreciated over the shorter of their useful lives or the remaining term of the underlying lease.

The Company periodically evaluates its long-lived assets for impairment.  An impairment loss would be recognized for assets to be disposed of or held-for-use when the carrying amount of an asset is deemed to not be recoverable.  If events or circumstances indicate that any of the Company’s long-lived assets might be impaired, the Company analyzes the estimated undiscounted future cash flows to be generated from the applicable asset.  In addition, the Company records an impairment loss to the extent that the carrying value of the asset exceeds the fair value of the asset.  Fair value is generally determined using an estimate of discounted future net cash flows from operating activities or upon disposal of the asset.  No assets were impaired during the years ended December 31, 2014 or 2013.

Internal use software

All qualifying costs related to the development of internal use software, other than those incurred during the application development stage, are expensed as incurred.  Costs incurred during the application development stage are required to be capitalized and amortized over the estimated useful life of the software.  Capitalized software costs are amortized on a straight-line basis over their expected economic lives, typically 3 to 5 years.  The amount of costs capitalized within any period is dependent on the nature of software development activities and projects in each period.

Onvia periodically evaluates the remaining useful lives of internal use software and will record an abandonment if management determines that all or a portion of the asset will no longer be used, or will adjust the remaining useful life to reflect revised estimates for impairment as described above under “Property and equipment.”  In addition, if the carrying value of the software exceeds the estimated future cash flows, an impairment will be recorded to reduce the carrying value to the expected realizable value.  No assets were impaired during the years ended December 31, 2014 or 2013.

Income taxes

Onvia accounts for income taxes using the asset and liability method.  Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and for net operating loss, or NOL, carryforwards.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The deferred tax asset has been reduced by a valuation allowance that reduces the amount of our deferred tax asset to a level that is more-than-likely-than-not to be recognized.  In determining the amount of the valuation allowance the Company considers whether it is more likely that some portion or all of the net deferred tax assets will not be realized.  In particular, the Company considers its three-year earnings trend to determine if it has generated cumulative net income or net losses over that period, which the accounting guidance considers significant evidence to evaluate in determining the existence and amount of any valuation allowance.  Onvia also considers positive evidence, such as improving trends in the leading indicators of revenue growth to evaluate the likelihood of generating taxable net income in the future.  The ultimate realization of net deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are expected to be deductible.  The Company will continue to review the estimate of future taxable income and will adjust the valuation allowance accordingly as new information becomes available.

34

Treasury stock

Onvia accounts for treasury stock using the cost method.  In April 2013, Onvia repurchased 1,242,781 shares of common stock as discussed in Note 13. As of December 31, 2014, the Company held 1,242,807 shares of treasury stock with a cost basis of $4,397,803.  The Company holds the treasury shares to fund matching contributions to its 401K retirement plan for employee contributions.  As discussed in Note 11, no treasury shares were used to fund matching contributions for 2014 or 2013 employee contributions.

Other comprehensive income or loss

Comprehensive income or loss is the change in equity from transactions and other events and circumstances other than those resulting from investments by and distributions to owners.  Other comprehensive income or loss for Onvia consists of unrealized gains and losses on available-for-sale investments.

Net income or loss per share

Basic income or loss per share is calculated by dividing net income or loss for the period by the weighted average shares of common stock outstanding for the period.  Diluted earnings per share is calculated by dividing net income or loss per share by the weighted average common stock outstanding for the period plus dilutive potential common shares using the treasury stock method.  In periods with a net loss, basic and diluted earnings per share are identical because inclusion of potentially dilutive common shares would be antidilutive.

For the year ended December 31, 2014, options to purchase 1,075,924 shares of common stock were not included in the calculation because the effect would have been anti-dilutive.  For the year ended December 31, 2013, options to purchase 454,684 shares of common stock were not included in the calculation because the effect would have been anti-dilutive. 

Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance for revenue from contracts with customers, which provides a single comprehensive revenue recognition model to apply in determining how and when to recognize revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. When applying the new revenue model to contracts with customers the guidance requires five steps to be applied, which include: 1) identify the contract(s) with a customer, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also requires both quantitative and qualitative disclosures, which are more comprehensive than existing revenue standards. The disclosures are intended to enable financial statement users to understand the nature, timing and uncertainty of revenue and the related cash flow. This guidance will be effective for Onvia in the first quarter of 2017 and early adoption is not permitted. The Company is currently assessing the impact the guidance will have upon adoption.

Note 2: Stock-Based Compensation and Stock Option Activity

Onvia measures compensation cost for all stock-based awards at fair value on the date of grant.  The fair value of stock options is determined using the Black-Scholes valuation model.  Such value is recognized as expense over the service period, net of estimated forfeitures.  The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company’s current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised.  Management considers many factors when estimating expected forfeitures, including employee class, historical experience and expected future activity.  Actual results, and future changes in estimates, may differ substantially from management’s estimates.

Stock-Based Benefit Plans

Onvia, Inc. 2008 Equity Incentive Plan

The Onvia, Inc. 2008 Equity Incentive Plan, or the 2008 Plan, was adopted in September 2008 and it amended and restated the previous 1999 Stock Option Plan, or the 1999 Plan.  Shares that were outstanding from the 1999 Plan will continue to be outstanding under that plan until forfeited, at which time they would be added back to the 2008 Plan.  The 2008 Plan provides for the issuance of incentive and nonqualified common stock options, stock awards, restricted stock, restricted stock units and stock appreciation rights.  Awards under this plan can be granted for ten years after the adoption date.  The 2008 Plan requires that the exercise price for all options to be at least 100% of the fair market value of the underlying shares on the date of grant.  The 2008 Plan contains specific provisions that govern awards in the event of a change in control and provides for compliance with the requirements of Section 409A of the Internal Revenue Code to the extent that awards are treated as deferred compensation.  All employees, officers, directors and consultants of Onvia are eligible to participate in the 2008 Plan, although it is not anticipated that every eligible employee or consultant will receive awards.  Options under this plan vest in increments over time, but typically have either a four or five year vesting schedule, normally with 25% or 20%, respectively, vesting one year from the grant date and ratable monthly vesting thereafter.  As of December 31, 2014 the total number of options outstanding and the number of shares available for issuance under the 2008 Plan were 725,175 and 875,126 respectively.

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2000 Directors’ Stock Option Plan

In March 2000, Onvia adopted a Directors’ Stock Option Plan or the Directors’ Plan.  This plan expired on February 28, 2010.  Options granted under this plan will remain active and will continue to vest according to the original grant provisions.  Grants were made under this plan to each eligible board member on the date such person was first elected or appointed as a board member.  At each annual stockholders’ meeting, each non-employee director was granted an additional option to purchase 1,000 shares of common stock under the Directors’ Plan, provided such person had been a board member of Onvia for at least the prior six months.  The initial option grants under the Directors’ Plan vested 25% each year for four years on the anniversary of the date of grant had a term of ten years, and an exercise price equal to the closing price of Onvia’s stock on the grant date.  The annual grants vest in full one year from the date of grant, have a ten year life, and an exercise price equal to the closing price on the date of grant.  As of December 31, 2008, all shares available for issuance under the Directors’ Plan had been granted.  Accordingly, on October 23, 2008, the Board of Directors approved the stock option grants with the same terms described above (historically made under our Directors’ Plan) under the Company’s 2008 Equity Incentive Plan.          

Employee Stock Purchase Plan

In May 2000, Onvia adopted the 2000 Employee Stock Purchase Plan, or ESPP, and initially authorized 60,000 shares of common stock for issuance under the ESPP.  Each year, the number of shares authorized for issuance under the ESPP is increased by the lesser of: 1% of the total number of shares of common stock then outstanding; 60,000 shares; or a lesser number of shares as determined by the Board of Directors.  Under the ESPP, an eligible employee may purchase shares of Onvia common stock, based on certain limitations, at a price equal to the lesser of 85% of the fair market value of the common stock at the beginning or end of the respective offering period.  This plan is compensatory under the provisions of ASC 718 and the fair value of purchases under the ESPP is recognized as compensation expense over the term of the awards. The ESPP purchases shares on a semi-annual basis.  The total number of shares authorized for future issuance under the ESPP as of December 31, 2014 was 472,624 shares.

Impact on Results of Operations

The impact on Onvia’s results of operations of recording stock-based compensation for the years ended December 31 was as follows:

	2014		2013
Cost of sales	$	5,119	$	7,719
Sales and marketing		3,759		50,916
Technology and development		20,248		40,950
General and administrative		122,652		178,011
Total stock-based compensation	$	151,778	$	277,596

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Valuation Assumptions

Onvia calculated the fair value of each option award on the date of grant using the Black-Scholes valuation model.  The following weighted average assumptions were used for options granted in the years ending December 31:

	2014			2013
Risk-free interest rate		1.67	%		1.29	%
Expected volatility		48	%		53	%
Expected dividends		0	%		0	%
Expected life (in years)		5.0			5.1

The fair value of each employee purchase under the ESPP is estimated on the first day of each purchase period using the Black-Scholes valuation model.  Purchase periods begin on May 1 and November 1 of each year.  The following weighted average assumptions were used for purchase periods beginning during the years ended December 31 under the ESPP:

	2014			2013
Risk-free interest rate		0.05	%		0.08	%
Expected volatility		36	%		32	%
Expected dividends		0	%		0	%
Expected life (in years)		0.5			0.5

Risk-Free Interest Rate

The average risk free interest rate was determined based on the market yield for U.S. Treasury securities for the expected term of the grant at the time of grant.

Expected Volatility

Management used the historical volatility of Onvia’s common stock to estimate the future volatility of its common stock over the expected term of the options granted for purposes of estimating the fair value of options granted during 2014 and 2013.

Expected Dividends

Management does not currently intend to pay dividends; therefore, this assumption is set at 0%.

Expected Life

Onvia’s computation of expected life was determined based on historical experience of similar awards, giving consideration to the contractual terms of the awards, vesting schedules and expectations of future employee behavior.  Management estimated future exercise and cancellation behavior, generally by assuming that remaining shares would be exercised or cancelled ratably over their remaining contractual term, adjusted for certain expectations of future employee behavior.  Management examined the behavior patterns separately for distinct groups of employees that have similar historical experience.

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Stock Option Activity

The following table summarizes activity under Onvia’s equity incentive plans for the year ended December 31, 2014:

	Options Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (1)
Total options outstanding at January 1, 2014		1,133,744		$	4.68
Options granted		56,000			4.64
Options exercised		(45,791	)		4.47
Options forfeited and cancelled		(254,361	)		6.36
Total options outstanding at December 31, 2014		889,592		$	4.20
Options exercisable at December 31, 2014		670,737		$	4.38		4.76	$	849,986
Options vested and expected to vest at December 31, 2014		874,787		$	4.21		5.44	$	1,134,222

(1) Aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of Onvia’s common stock of $5.02 at December 31, 2014 for options that were in-the-money at December 31, 2014.  The number of in-the-money options outstanding and exercisable at December 31, 2014 was 689,875 and 482,142 respectively.

The weighted average grant date fair value of options granted during the years ended December 31, 2014 and 2013 was $2.01 and $1.91 per share, respectively.  The total intrinsic value of options exercised during the years ended December 31, 2014 and 2013 was $36,567 and $59,646, respectively.

As of December 31, 2014, there was approximately $136,000 of unrecognized compensation costs related to unvested stock options and estimated purchases under the ESPP.  That cost is expected to be recognized over a weighted average period of 1.16 years.

During the years ended December 31, 2014 and 2013, respectively, approximately $242,000 and $122,000 was received for exercises of stock options and purchases under Onvia’s ESPP.

Restricted Stock Units

The following table summarizes changes in non-vested restricted stock units (“RSUs”) for the year ended December 31, 2013:

	Number of shares			Weighted Average  Grant Date Fair Value
Non-vested balance at January 1, 2013		13,954		$	4.12
Granted		-			-
Vested		(13,954	)		4.12
Forfeited / Expired		-			-
Non-vested balance at December 31, 2013		-		$	-

RSUs were granted in the first quarter of 2011 and valued on the grant date based upon the fair value of the underlying common stock on the grant date.  Prior to the first quarter of 2011, no RSUs had been granted.  The value of the RSUs granted is recognized as compensation expense over the applicable vesting period.  The RSUs granted during the first quarter of 2011 have a three year vesting period and were subject to accelerated vesting based upon achievement of 2011 financial targets.  The 2011 financial targets were not achieved and these RSU’s were fully vested on December 31, 2013. Net shares released on December 31, 2013 were 10,264 and 3,690 shares were withheld to cover taxes. Closing price per share on release date was $4.96.  No RSUs were granted during 2014.

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 Note 3: Short-Term and Long-Term Investments

Onvia classifies short-term and long-term investments in debt securities as available-for-sale, stated at fair value as summarized in the following table:

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government backed securities	$	157,790	$	58	$	-		$	157,848
Certificates of Deposit  (1)		6,278,988		-		(547	)		6,278,441
	$	6,436,778	$	58	$	(547	)	$	6,436,289

(1) We evaluated certificates of deposits held as of December 31, 2014 and concluded that they meet the definition of securities.

	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-Term Investments
U.S. Government backed securities	$	2,251,972	$	438	$	(234	)	$	2,252,176
Certificates of Deposit  (1)		3,211,546		229		(545	)		3,211,230
Total Short-Term Investments		5,463,518		667		(779	)		5,463,406
Long-Term Investments
Certificates of Deposit  (1)		90,444		-		-			90,444
Total Long-Term Investments		90,444		-		-			90,444
Total Investments	$	5,553,962	$	667	$	(779	)	$	5,553,850

(1) We evaluated certificates of deposits held as of December 31, 2013 and concluded that they meet the definition of securities.

Onvia accounts for short-term investments at fair value defined as the exchange price that would be received for an asset, or paid to transfer a liability (an exit price), in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  Onvia applies a fair value hierarchy to its investments, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.  The standard describes three levels of inputs that may be used to measure fair value:

Level 1 – Quoted prices in active markets for identical assets or liabilities;

Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

39

Onvia uses the market approach to measure fair value for its financial assets and liabilities.  The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.  The following tables summarize, by major security type, short-term and long-term investments classified as available-for-sale at December 31, 2014 and 2013, stated at fair value:

	Fair Value Measurements as of December 31, 2014
	Level 1		Level 2		Level 3		Balance as of December 31, 2014
U.S. Government backed securities	$	-	$	157,848	$	-	$	157,848
Certificate of Deposit		-		6,278,441		-		6,278,441
	$	-	$	6,436,289	$	-	$	6,436,289

	Fair Value Measurements as of December 31, 2013
	Level 1		Level 2		Level 3		Balance as of December 31, 2013
U.S. Government backed securities	$	-	$	2,252,176	$	-	$	2,252,176
Certificate of Deposit		-		3,301,674		-		3,301,674
	$	-	$	5,553,850	$	-	$	5,553,850

There were no transfers in or out of Level 1 or Level 2 investments during the year ended December 31, 2014 or the fourth quarter of 2013, and there was no activity in Level 3 fair value measurements during that period.

Note 4: Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following at December 31:

	2014		2013
Prepaid expenses	$	672,957	$	525,739
Interest receivable		4,351		14,027
Other receivables		4,932		30,332
	$	682,240	$	570,098

Note 5: Security Deposits

Pursuant to Onvia’s lease for its current corporate office space, Onvia has established a stand by letter of credit as security to the lease increasing from $100,000 in April 2013, to $125,000 in January 2014 and to $150,000 on January 2015.  The letter of credit will be returned at lease termination in April 2021 or earlier as discussed above, subject to standard office lease conditions. As of December 31, 2014, the stand by letter of credit is secured by a security deposit of $150,000.

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Note 6: Property and Equipment

Property and equipment consists of the following at December 31:

	2014			2013
Computer equipment	$	3,675,759		$	3,575,819
Software		1,855,785			1,837,536
Furniture and fixtures		108,539			107,113
Leasehold improvements		882,602			882,602
Total cost basis		6,522,685			6,403,070
Less accumulated depreciation and amortization		(5,165,002	)		(4,630,058	)
Net book value	$	1,357,683		$	1,773,012

During the year ended December 31, 2014, Onvia disposed of fully depreciated computer equipment valued at $180,000 compared to disposal of $1,051,000 of fully depreciated computer equipment for the same period in 2013.

Depreciation expense was $715,000 and $746,000 for the years ended December 31, 2014 and 2013, respectively.

Note 7: Internal Use Software

Onvia capitalizes qualifying computer software costs incurred during the “application development stage” and other costs as permitted.  Amortization of these costs begins once the product is ready for its intended use.  These costs are amortized on a straight-line basis over the estimated useful life of the product, typically 3 to 5 years.  The amount of costs capitalized within any period is dependent on the nature of software development activities and projects in each period.

Onvia periodically evaluates the remaining useful lives and carrying values of internal use software.  If management determines that all or a portion of the asset will no longer be used, or the estimated remaining useful life differs from existing estimates, an abandonment will be recorded to reduce the carrying value or adjust the remaining useful life to reflect revised estimates.  In addition, if the carrying value of the software exceeds the estimated future cash flows, an impairment will be recorded to reduce the carrying value to the expected realizable value.

The following table presents a rollforward of capitalized internal use software for the years ended December 31, 2014:

	Balance at December 31, 2013			Additions			Balance at December 31, 2014
Capitalized Internal Use Software	$	15,103,914		$	2,003,192		$	17,107,106
Accumulated amortization		(9,671,106	)		(2,376,635	)		(12,047,741	)
	$	5,432,808		$	(373,443	)	$	5,059,365

Amortization expense related to capitalized software was $2.4 million and $2.3 million for the years ended December 31, 2014 and 2013, respectively.

Note 8: Accrued Expenses

Accrued expenses consist of the following at December 31:

	2014		2013
Payroll and related liabilities	$	965,558	$	714,481
Taxes payable and other		132,012		245,171
	$	1,097,570	$	959,652

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  Other current liabilities consist of the following at December 31:

	2014		2013
Obligations under capital leases, current portion	$	24,039	$	17,701
Deferred rent, current portion		57,555		37,201
Other current liabilities		-		189,158
	$	81,594	$	244,060

Note 9:                      Income Taxes

The amount of current and deferred income tax expense included in the financial statements for the years ended December 31 was as follows:

	2014		2013
Deferred Tax Expense	$	-	$	2,175,000
Total Income Tax Expense	$	-	$	2,175,000

The following table provides reconciliation between the statutory income tax rate and the Company’s effective tax rate for the years ended December 31:

	2014			2013
Tax expense at statutory rate		-34.0	%		34.0	%
Stock-based compensation		56.2	%		-9.1	%
Amortization of goodwill		-2.3	%		3.1	%
Meals and entertainment		2.5	%		-2.6	%
Deferred tax asset adjustment		2.1	%		0.0	%
Valuation allowance		-24.5	%		-421.2	%
Net tax expense		0.0	%		-395.8	%

Onvia’s deferred tax asset consists of the following as of December 31:

	2014			2013
Deferred Tax Assets
Net operating loss carryforward	$	25,843,966		$	24,809,857
Accrued expenses not currently deductible		775,414			1,154,419
Depreciation different for tax purposes		63,928			1,000,035
Deferred Tax Asset Total		26,683,308			26,964,311
Deferred Tax Liability
Prepaid expenses		(211,177	)		(186,698	)
Depreciation different for tax purposes		(1,720,184	)		(1,847,155	)
Deferred Tax Liabilities Total		(1,931,361	)		(2,033,853	)
Net deferred tax asset before valuation allowance		24,751,947			24,930,458
Valuation allowance		(24,751,947	)		(24,930,458	)
Net deferred tax asset after valuation allowance	$	-		$	-

The Company had approximately $24.8 million in net deferred tax assets, before valuation allowance, as of       December 31, 2014.  Realization of net deferred tax assets ultimately depends on the existence of sufficient taxable income, including taxable income in prior carryback years, as well as future taxable income.  Management regularly reviews the net deferred tax assets for usability based on a history of earnings, expectations for future earnings and expected timing of reversals of temporary differences.  In particular, the Company considers its three-year earnings trend to determine if it has generated cumulative net income or net losses over that period, which the accounting guidance considers significant evidence to evaluate in determining the existence and amount of any valuation allowance.

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The Company has not consistently generated net income and has generated net losses over the last nine quarters through December 31, 2014. Based upon the analysis of all positive and negative evidence, it is management’s current judgment that due to the recent pattern of net losses, the Company has concluded that its net deferred tax assets are not more-likely-than-not to be realized.  Therefore, the Company has maintained its valuation allowance at 100% of its net deferred tax assets as of December 31, 2014.  During the year ended December 31, 2013, the Company increased its valuation allowance to be 100% of its net deferred tax assets which resulted in $2.2 million being recognized as a provision for income taxes in 2013.

The Company may reverse all or a portion of our valuation allowance in the future if it is determined that realization of these benefits is more likely than not.  The Company will continue to evaluate the appropriateness of its valuation allowance in consideration of future operating results.

As of December 31, 2014 and 2013 Onvia had available U.S. federal net operating losses in the amount of $76,011,666 and $72,970,169 which expire at various times from 2022 through 2033.

Utilization of the NOL carryforwards may be subject to a substantial annual limitation due to an ownership change that could occur in the future provided by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”).  These ownership changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable income and tax, respectively.  In general, an ownership change, as defined by Section 382 of the Code, results from transactions increasing the ownership of certain stockholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period.

Onvia performed a Section 382 analysis and identified an ownership change that occurred in September 2001.  The Company believes that, as a result of the annual Section 382 limitation that resulted from the change in control that occurred in September 2001, it will permanently be unable to use a significant portion of our NOL carryforwards that arose before the change in control to offset future taxable income.  As such, the Company reduced its NOL deferred tax asset by the amount of NOLs that it will permanently be unable to utilize, which in turn resulted in a reduction to its valuation allowance.

Onvia files an income tax return in the United States.  The Company is no longer subject to federal income tax examination for years before 2010.  Onvia also has available NOLs generated in tax years 2001 to 2010 and 2013 to 2014 that, if used, could be subject to examination by taxing authorities.

Note 10: Commitments and Contingencies

Operating leases

During the first quarter of 2013, Onvia entered into the first amendment to lease agreement for its corporate offices located in Seattle, Washington.  The amendment, among other things, extends the lease term for an additional sixty-five (65) months with a new expiration date of April 30, 2021.  In addition, the amendment reduces the rental area of the premises to approximately 29,606 square feet, after surrender of 5,394 square feet after the execution of the amendment.  Onvia has an additional right to surrender up to 8,898 square feet on or after November 30, 2015 in exchange for reimbursement of unamortized landlord incentives.  In addition to base rent, Onvia will be responsible for its proportionate share of annual incremental increases in the building’s operating expenses, insurance, and real estate taxes over the 2013 base year.  Onvia has a one-time right to terminate the amended lease in its entirety on or after December 1, 2017 in exchange for payment of a significant termination fee.

The office lease contains rent escalation clauses and rent holidays. Rent expense is recorded on a straight-line basis over the lease term with the difference between the rent paid and the straight-line rent expense recorded as a deferred rent liability. Total rent expense associated with real estate operating leases was $769,000 and $760,000 for the years ended December 31, 2014 and 2013, respectively. Onvia also has a non-cancellable operating lease for office equipment, which expires in June 2019.

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         Future minimum lease payments required on non-cancellable operating leases are as follows for the years ending December 31:

	Real Estate Operating Leases		Office Equipment Operating Lease		Total Operating Leases
2015	$	759,887	$	19,710	$	779,597
2016		780,241		19,710		799,951
2017		873,377		19,710		893,087
2018		895,582		19,710		915,292
2019		917,786		9,855		927,641
2020 and thereafter		1,260,722		-		1,260,722
	$	5,487,595	$	88,695	$	5,576,290

Capital Leases

In March 2013, Onvia entered into non-cancellable capital leases for phone system server equipment and maintenance related to this equipment.  Remaining future minimum lease payments required on these capital leases are as follows for the years ended December 31:

	Principal		Interest		Total
2015	$	35,494	$	7,463	$	42,957
2016		37,719		5,238		42,957
2017		40,096		2,861		42,957
2018		24,561		496		25,057
	$	137,870	$	16,058	$	153,928

Purchase Obligations

Onvia has non-cancellable purchase obligations for software development and license agreements, co-location hosting arrangements, telecom agreements, marketing agreements and third-party content agreements.  The agreements expire in dates ranging from 2015 to 2017.  Future required payments under these non-cancellable agreements are as follows for the years ending December 31:

	Purchase Obligations
2015	$	1,225,489
2016		752,736
2017		15,980
	$	1,994,205

Legal Proceedings

From time to time, legal proceedings may arise in the ordinary course of business.  Although the outcomes of legal proceedings are inherently difficult to predict, we are not currently involved in any legal proceeding in which the outcome, in our judgment based on information currently available, is likely to have a material adverse effect on our business or financial position.

Note 11: Employee Retirement Plan

In March 2000, Onvia adopted a Savings and Retirement Plan (the “Retirement Plan”), which is a defined contribution plan.  The Retirement Plan is a qualified salary reduction plan in which all eligible employees may elect to have a percentage of their pre-tax compensation contributed to the Retirement Plan, subject to certain guidelines issued by the Internal Revenue Service.

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In January 2006, the Retirement Plan was amended to add a discretionary matching contribution, made in either cash or Onvia common stock, up to 25% of every dollar up to 6% of all eligible employee contributions.  The matching contributions are subject to a four year vesting schedule, with vesting measured from the employee’s date of hire.  The Company’s Board of Directors has the sole discretion to make matching contributions in the first quarter following each Plan year, and employees must be employed on the last day of the Plan year to be eligible to receive the matching contribution.  As of December 31, 2014, 1,242,807 shares were available in treasury.  In March 2009, Onvia transferred 8,055 shares from treasury stock into the Retirement Plan to match 2008 employee contributions.  The Company recorded $82,000 in non-cash stock-based compensation in 2009 related to this match. Onvia’s Board of Directors authorized 10% matching contribution for both 2014 and 2013.  This contribution was made in cash in the amount of $51,000 and $29,000 for 2014 and 2013, respectively.

Note 12: Stockholders’ Equity

Authorized shares

At December 31, 2014, the number of authorized shares is 13,000,000 with a par value of $0.0001 per share.  Authorized shares are comprised of 11,000,000 shares of common stock and 2,000,000 shares of undesignated preferred stock.

Note 13: Stock Repurchase

On April 2, 2013, Onvia entered into a stock purchase agreement with Symphony Technology Group, LLC and certain of its affiliates (the “Repurchase Stockholders”) to repurchase shares of Onvia’s common stock, par value $0.0001 directly from the Repurchase Stockholders in a private, non-underwritten transaction.  Under the terms of the agreement, Onvia has repurchased from the Repurchase Stockholders 1,242,781 shares of common stock at a price of $3.50 per share for a total purchase price of approximately $4.3 million, excluding transaction fees.  These shares were repurchased at discount to market price.  This transaction does not have any impact on Onvia’s Section 382 tax benefits preservation plan.

Note 14: Supplemental Cash Flow Information

Interest expense paid on capital leases during the years ended December 31, 2014 and 2013 was $9,900 and $7,600, respectively.

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Selected Quarterly Financial Information (Unaudited)

The following tables summarize the quarterly financial data for the years ended December 31, 2014 and 2013:

	Three Months Ended
	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
	(in thousands, except per share amounts)
Historical Consolidated Statements of Operations and Comprehensive Income Data:
Revenue	$	5,616		$	5,567		$	5,700		$	5,742
Gross margin		4,684			4,612			4,794			4,803
Non-cash stock-based compensation		54			30			46			22
Total operating expenses		4,776			4,731			4,838			5,286
Loss from operations		(92	)		(119	)		(44	)		(483	)
Tax provision /(benefit)		-			-			-			-
Net loss	$	(89	)	$	(117	)	$	(42	)	$	(479	)
Unrealized gain / (loss) on available-for-sale investments		1			(1	)		(1	)		1
Comprehensive loss		(88	)		(118	)		(43	)		(478	)
Basic and diluted net loss per common share	$	(0.01	)	$	(0.02	)	$	(0.01	)	$	(0.06	)
Basic and diluted weighted average shares outstanding		7,352			7,395			7,396			7,399

	Three Months Ended
		March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013
	(in thousands, except per share amounts)
Historical Consolidated Statements of Operations and Comprehensive Income Data:
Revenue	$	5,498		$	5,504		$	5,442		$	5,575
Gross margin		4,575			4,538			4,481			4,676
Non-cash stock-based compensation		73			65			66			74
Total operating expenses		4,704			4,632			4,582			4,925
Loss from operations		(129	)		(94	)		(101	)		(249	)
Provision for income tax		-			-			-			2,175
Net loss	$	(120	)	$	(88	)	$	(98	)	$	(2,420	)
Unrealized (loss) / gain on available-for-sale investments		-			(2	)		1			-
Comprehensive loss		(120	)		(90	)		(97	)		(2,420	)
Basic and diluted net loss per common share	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.33	)
Basic and diluted weighted average shares outstanding		8,554			7,367			7,329			7,333

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The Company conducted an evaluation (pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934 (the "Exchange Act")), under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e)) as of December 31, 2014.  Based on the evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures were effective as of December 31, 2014.

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Report of Management on Internal Control over Financial Reporting

Onvia’s management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company, as such term is defined in Rule 13a-15(f) and 15d-15(f) promulgated under the Exchange Act.  Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  Internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company’s assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only with proper authorizations; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company’s management, under the supervision of and with the participation of the Chief Executive Officer and the Chief Financial Officer and Principal Accounting Officer, assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2014 based on the framework and criteria established in Internal Control – Integrated Framework (1992), issued by the Committee of Sponsoring Organizations of the Treadway Commission, or COSO.   Based on this evaluation, management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2014.

This Report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, which exempts issuers that are neither accelerated filers nor large accelerated filers, as defined in Rule 12b-2 under the Exchange Act, from Section 404(b) of the Sarbanes-Oxley Act of 2002.  This exemption permits us to provide only management’s report in this Annual Report on Form 10-K.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the quarter ended December 31, 2014 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

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PART III

 Certain information required by Part III is omitted from this Annual Report on Form 10-K because Onvia intends to file a definitive Proxy Statement for its Annual Meeting of Stockholders (the “Proxy Statement”) not later than 120 days after the end of the fiscal year covered by this Form 10-K, and certain information to be included therein is incorporated herein by reference.

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this item regarding the Company’s directors is incorporated herein by reference to the section entitled “Proposal No. 1: Election of Directors” in the Proxy Statement for the Annual Meeting of Stockholders to be held on May 6, 2015 (“Proxy Statement”).   Information relating to compliance with Section 16(a) of the Exchange Act is incorporated herein by reference to the section entitled “Section 16(a) Beneficial Ownership Reporting Compliance” in the Proxy Statement.  Information regarding the Company’s audit committee and audit committee financial expert is incorporated herein by reference to the section entitled “Corporate Governance” in the Proxy Statement.  Information regarding the Company’s executive officers is set forth under the caption “Executive Officers of the Registrant” in Part 1 of this Annual Report and is incorporated by reference into this Item 10.

The Company adopted a code of ethics applicable to its Chief Executive Officer, Chief Financial Officer, Controller and other finance leaders, which is a “code of ethics” as defined by applicable rules of the Securities and Exchange Commission. This code is publicly available on the Company’s website at www.onvia.com.  If the Company makes any amendments to this code other than technical, administrative or other non-substantive amendments, or grants any waivers, including implicit waivers, from a provision of this code to the Company’s Chief Executive Officer, Chief Accounting Officer or Controller, the Company will disclose the nature of the amendment or waiver, its effective date and to whom it applies on its website or in a report on Form 8-K filed with the Securities and Exchange Commission.

ITEM 11. EXECUTIVE COMPENSATION

The information required by this item is incorporated by reference to the sections entitled “Executive Compensation,” “Director Compensation,” and “Compensation Committee Interlocks and Insider Participation” in the Proxy Statement.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

We currently maintain two active compensation plans that provide for the issuance of our common stock to officers, directors, employees, and equity consultants.  The two active compensation plans consist of the Onvia, Inc. 2008 Equity Incentive Plan, or the 2008 Plan, and the 2000 Employee Stock Purchase Plan, or ESPP, both of which have been approved by stockholders.

We also have outstanding options under the stockholder approved 2000 Directors’ Stock Option Plan, or Directors’ Plan, which expired on February 28, 2010 and under the Amended and Restated 1999 Stock Option Plan, or the 1999 Plan, which was amended and restated in September 2008 as the 2008 Plan.  Options outstanding under both the Directors’ Plan and the 1999 Plan will continue to vest and become exercisable according to the original terms of the grant.  However, any options that are forfeited from the Directors’ Plan subsequent to the expiration date will not be available for reissuance.  Any grants forfeited from the 1999 Plan will be returned to the 2008 Plan and will be available for future issuance.

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The following table sets forth information regarding outstanding options and shares reserved for future issuance under the 2008 Plan, the 1999 Plan (amended and restated into the 2008 Plan), the Directors’ Plan, and the ESPP as of December 31, 2014.  There were no equity plans not approved by security holders as of December 31, 2014.

EQUITY COMPENSATION PLAN INFORMATION

Plan category	Number of Securities to be Issued on Exercise of Outstanding Options (1)		Weighted-average Exercise Price of Outstanding Options (2)		Securities Available for Future Grant (Excluding Shares Reflected in Column (1)) (3)
Equity compensation plans approved by security holders
Onvia, Inc. 2008 Equity Incentive Plan		725,175	$	3.78		875,126
Amended and Restated 1999 Stock Option Plan		146,417		6.13
2000 Directors' Stock Option Plan		18,000		5.45
Employee Stock Purchase Plan		-		N/A		472,624
Total		889,592	$	4.20		1,347,750

The information required by Item 403 of Regulation S-K under this item is incorporated by reference to the section entitled “Common Stock Ownership of Certain Beneficial Owners and Management” in the Proxy Statement.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this item is incorporated by reference to the sections entitled “Certain Relationships and Related Person Transactions” and “Board of Director and Committee Information” in the Proxy Statement.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by this item is incorporated by reference to the sections entitled “Independent Registered Public Accounting Firm’s Fees and Services” in the Proxy Statement.

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PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Index to Consolidated Financial Statements and Financial Statement Schedules:

1. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

	Page
Report of Moss Adams LLP, Independent Registered Public Accounting Firm	27
Report of Deloitte & Touche LLP, Independent Registered Public Accounting Firm	28
Consolidated Financial Statements:
Balance Sheets	29
Statements of Operations and Comprehensive Loss	30
Statements of Cash Flows	31
Statements of Stockholders’ Equity	32
Notes to Consolidated Financial Statements	33

2. FINANCIAL STATEMENT SCHEDULES

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

Description	Balances at Beginning of Period		Charged to Costs and Expenses		Deductions(1)			Balances at End of Period
Allowance for doubtful accounts
Year Ended December 31, 2013	$	41,548		44,050		(60,847	)	$	24,751
Year Ended December 31, 2014	$	24,751		30,502		(12,762	)	$	42,491

(1) Uncollectible accounts written off, net of recoveries.

Description (in thousands)	Balances at Beginning of Period		Charged to Costs and Expenses		Deductions(2)			Balances at End of Period
Deferred tax assets-valuation allowance(2)
Year Ended December 31, 2013	$	22,625		2,305		-		$	24,930
Year Ended December 31, 2014	$	24,930		-		(178	)	$	24,752

(2) The additions to and reductions in the deferred tax assets-valuation allowance represent the portion of a deferred tax asset for which either: (i) it is more likely than not that a tax benefit will not be realized, or (ii) it is more likely than not a tax benefit will be realized.

Schedules not listed above have been omitted because they are not applicable, are not required or the information required to be set forth in the schedules is included in the consolidated financial statements or related notes.

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3.      EXHIBITS

Certain of the agreements filed as exhibits to this Form 10-K contain representations and warranties by the parties to the agreements that have been made solely for the benefit of the parties to the agreement.  These representations and warranties:

· May have been qualified by disclosure that were made to the other parties in connection with the negotiation of the agreements, which disclosures are not necessarily reflected in the agreements;

· May apply standards of materiality that differ from those of a reasonable investor; and

· Were made only as of specified dates contained in the agreements and are subject to later developments.

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time, and investors should not rely on them as statements of fact.

Number	Description
3.1	Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3(i).1 to the Form 10-Q for the quarter ended June 30, 2004, filed on August 12, 2004)
3.2	Amended and  Restated Bylaws of Onvia effective March 4, 2015 (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed on March 5, 2015)
3.3	Certificate of Designation, Preferences and Rights of Series RA Junior Participating Preferred Stock of Onvia, Inc., as filed with the Secretary of State of Delaware on May 4, 2011 (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form 8-A filed on May 5, 2011)
4.2	Amended and Restated Section 382 Rights Agreement, dated April 24, 2014, by and between Onvia, Inc. and Computershare Trust Company, N.A., as Rights Agent, which includes the Form of Certificate of Designation of Series RA Junior Participating Preferred Stock as Exhibit A, the Form of Rights Certificate as Exhibit B, and the Summary of Rights as Exhibit C (incorporated by reference from Exhibit 4.2 to Onvia’s Form 8-A/A filed on April 29, 2014)
10.1*	Onvia, Inc. 2008 Equity Incentive Plan (incorporated by Reference to the 2008 Proxy Statement filed on August 4, 2008)
10.2*	Amended 2000 Employee Stock Purchase Plan (incorporated by Reference to Exhibit 10.4 to the Report on Form 10-Q for the quarter ended September 30, 2008, filed on November 14, 2008)
10.3*	2000 Directors’ Stock Option Plan (incorporated by reference to Exhibit 10.26 to the Registration Statement on Form S-1/A filed on February 2, 2000 (File No. 333-93273))
10.4*	Employment Agreement with Irvine N. Alpert dated February 22, 2002 and Commission and Bonus Plan with Irvine N. Alpert dated September 11, 2001 (incorporated by reference to Exhibit 10.4 to the Report on Form 10-K for the year ended December 31, 2001, filed on March 29, 2002)
10.5	Medical Dental Building Lease Agreement between Onvia and GRE 509 Olive LLC, dated July 31, 2007 (incorporated by reference to Exhibit 10.12 to the Report on Form 10-Q for the period ended September 30, 2007, filed on November 14, 2007)
10.6*	Second Amendment to 2000 Employee Stock Purchase Plan (incorporated by Reference to Exhibit 10.13 to the Report on Form 10-Q for the quarter ended March 31, 2010, filed on May 17, 2010)
10.7*	Offer Letter to Henry G. Riner, dated August 26, 2010 (incorporated by Reference to Exhibit 10.15 to the Report on Form 10-Q for the quarter ended September 30, 2010, filed on November 15, 2010)
10.8*	Form of Indemnification Agreement between Onvia and each of its officers and directors approved by Board of Directors on August 30, 2011 (incorporated by reference to exhibit 10.1 to the Report on Form 10-Q for the quarter ended March 31, 2012, filed May 14, 2012)
10.9	First Amendment to Lease, dated as of April 4, 2013, by and between Onvia, Inc. and GRE 509 Olive LLC (incorporated by reference to Exhibit 10.1 to the Report on Form 8-K filed on April 4, 2013)
10.10*	Executives Severance Arrangement
10.11*++	2015 Variable Compensation Plan for Irvine N. Alpert
10.12*++	Onvia 2015 Management Incentive Plan
10.13*++	Leadership Team Equity Grant Program under Onvia, Inc. 2008 Equity Incentive Plan
23.1++	Consent of Moss Adams LLP, Independent Registered Public Accounting Firm
23.2++	Consent of Deloitte & Touche LLP, Independent Registered Public Accounting Firm

51

31.1++	Certification of Henry G. Riner, Chief Executive Officer and President of Onvia, Inc., Pursuant to Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2++	Certification of Cameron S. Way, Chief Financial Officer and Principal Accounting Officer of Onvia, Inc., Pursuant to Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1++	Certification of Henry G. Riner, Chief Executive Officer and President of Onvia, Inc., 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 Cameron S. Way, Senior Vice President and Chief Financial Officer of Onvia, Inc., Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101++	101.INS       XBRL Instance Document
	101.SCH      XBRL Taxonomy Extension Schema
	101.CAL      XBRL Taxonomy Extension Calculation Linkbase
	101.LAB      XBRL Taxonomy Extension Label Linkbase
	101.PRE      XBRL Taxonomy Extension Presentation Linkbase
	101.DEF      XBRL Taxonomy Extension Definition Linkbase

*           Executive Compensation Plan or Agreement

++           Filed Herewith

52

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Seattle, State of Washington, on March 17, 2015.

ONVIA, INC.
By:	/s/ Henry G. Riner
	Henry G. Riner
	President and Chief Executive Officer (Principal Executive Officer)
By:	/s/ Cameron S. Way
	Cameron S. Way
	Senior Vice-President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned, being a director or officer of Onvia, Inc., a Delaware corporation (the “Company”), hereby constitutes and appoints Henry G. Riner and Cameron S. Way, and each of them, his true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, for him and in his name, place and stead in any and all capacities, to sign one or more Annual Reports for the Company’s fiscal year ended December 31, 2014, on Form 10-K under the Securities Exchange Act of 1934, as amended, any amendments thereto, and all additional amendments thereto, each in such form as they or any one of them may approve, and to file the same with all exhibits thereto and other documents in connection therewith with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done so that such Annual Report shall comply with the Securities Exchange Act of 1934, as amended, and the applicable Rules and Regulations adopted or issued pursuant thereto, as fully and to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them or their substitute or re-substitute, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1934, this Report has been signed below by the following persons, on behalf of the Registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/S/ HENRY G. RINER	Chief Executive Officer, President and Director	March 17, 2015
Henry G. Riner
/S/ CAMERON S. WAY	Senior Vice-President and Chief Financial Officer	March 17, 2015
Cameron S. Way
/S/ JEFFREY C. BALLOWE	Director	March 17, 2015
Jeffrey C. Ballowe
/S/ JAMES L. BRILL	Director	March 17, 2015
James L. Brill
/S/ ROGER L. FELDMAN	Director	March 17, 2015
Roger L. Feldman
/S/ MICHAEL E.S.FRANKEL	Director	March 17, 2015
Michael E.S. Frankel
/S/ D. VAN SKILLING	Chairman of the Board	March 17, 2015
D. Van Skilling

53

EX-10.11

Exhibit 10.11

2015 BONUS PLAN

Irv Alpert

Compensation

Bonus Components:

· A one-time bonus upon 100% achievement of sales plan.

· Ten percent of bookings in excess of sales plan from existing channel clients

· Five percent of every new sale from a lead generated by Irv.

· A one-time bonus upon extension of an existing client under terms and conditions approved by either the CEO or CFO.

· Ten percent of every new sales dollar generated during the first quarter of 2015.

EX-10.12

Exhibit 10.12

ONVIA 2015 MANAGEMENT INCENTIVE PLAN

Objectives

1.  Align executive compensation with shareholder interests

2.  Reward management for building shareholder value

Participants

Cameron Way                                                      

Naveen Rajkumar                                                      

Senior Vice President of Product                                                      

Structure of Plan

1.  Two metrics for plan: Bookings and EBITDA

2.  Floor Bookings and Floor EBITDA must both be achieved in order to activate the plan

3.  There are two levels of achievement (Between the Floor and the Target and above the Target)

4.  The two metrics are weighted as follows: Bookings (67%) and EBITDA (33%)

Plan Specifics

1.  If either Bookings or EBITDA falls below floor, no bonus is paid.

2.  If both Bookings and EBITDA floors are met, 25% of the Target Bonus is earned.

3.  If performance of each metric falls between the Floor and the Target, the Bonus is prorated between 25 and 100% based upon the weighting for each metric.

4.  The Over Target Bonus is indicated below.

Over Target Bonus

1.  Both Target Bookings and Target EBITDA must be achieved.

2.  For every EBITDA dollar achieved over target, 10% will be placed in an over target bonus pool.

3.  CEO will recommend to the Compensation Committee the allocation of the over target bonus pool to plan participants.

EX-10.13

Exhibit 10.13

LEADERSHIP TEAM EQUITY GRANT PROGRAM

UNDER THE ONVIA, INC. 2008 EQUITY INCENTIVE PLAN

1.  Onvia leadership has an opportunity to own 10% of the outstanding shares of the company.  The leaders who participate in the program are:

Hank Riner	CEO
Cameron Way	Senior VP and CFO
Naveen Rajkumar	Senior VP and CIO
TBD	Senior VP of Product
TBD	Senior VP of Sales

2.  The named executives above have the potential to earn 10% of the outstanding shares of the company through grants of stock options.

One half of the options will be granted for each of the respective performance years (“time-based”), and the other half will be granted if the performance measurement for the respective performance years is achieved (“performance-based”).  Time-based and performance-based options are granted effective December 31st of the respective performance years:  2015, 2016 and 2017.  The options will be granted from the available pool of the 2008 Equity Incentive Plan (the “2008 Plan”) and will be subject to the terms and provisions of the 2008 Plan.

3.  Grants can be earned annually based upon performance criteria set by the Board.  The number of potential performance-based options for each leader is calculated as follows:

Total Outstanding Shares of Company as of the grant date

% Ownership Potential for Individual Leader

Total # of Potential Options for Individual Leader

Minus 50% Time-Based Options

Total Potential Performance-Based Options

4.  Each leader has the opportunity to earn 1/3 of the potential performance based options at the end of each of three years:  2015, 2016 and 2017.  For 2015 the performance measurement is the achievement of a Board defined goal regarding EBITDA.  Each year the Board will establish a new performance criteria.

5.  Once time-based and performance-based options have been granted there is a 24 month vesting period from grant date.  One eighth of the options will be vested each quarter for a two year period.  For example options granted for 2015 performance will be vested according to the following vesting schedule:  1/8 March 31, 2016, 1/8 June 30, 2016, 1/8 September 30, 2016, 1/8 December 31, 2016, 1/8 March 31, 2017, 1/8 June 30, 2017, 1/8 September 30, 2017, 1/8 December 31, 2017.

6.  Currently outstanding stock options count toward the total potential options for each leader.

7.  Hank Riner is ineligible for the first grant (even if performance criteria is met) until certain individual performance criteria are achieved.

8.  Upon the occurrence of a change in control (as defined in the 2008 Plan) and a material reduction in the executive’s responsibilities or authority as in effect before the change in control, the vesting of all unvested options granted pursuant to this program will automatically be accelerated so that 100% shall be fully vested.

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement Nos. 333-31784 and 333-161517 on Form S-8 of our report dated March 17, 2015, relating to the consolidated financial statements and financial statement schedules of Onvia, Inc. appearing in this Annual Report on Form 10-K of Onvia, Inc. for the year ended December 31, 2014.

/s/ Moss Adams LLP

Seattle, Washington

March 17, 2015

EX-23.2

Exhibit 23.2

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement Nos. 333-31784 and 333-161517 on Form S-8 of our report dated March 28, 2014, relating to the consolidated financial statements and financial statement schedules of Onvia, Inc. and subsidiary appearing in this Annual Report on Form 10-K of Onvia, Inc. for the year ended December 31, 2013.

/s/ Deloitte & Touche LLP

Seattle, Washington

March 17, 2015

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

18 U.S.C. RULE 13a-14(a)/15d-14(a)

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Henry G. Riner, certify that:

1. I have reviewed this annual report on Form 10-K for the period ended December 31, 2014 of Onvia, Inc.;

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

d. Disclosed in this Report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Henry G. Riner

Henry G. Riner

President and Chief Executive Officer

March 17, 2015

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

18 U.S.C. RULE 13a-14(a)/15d-14(a)

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Cameron S. Way, certify that:

1. I have reviewed this annual report on Form 10-K for the period ended December 31, 2014 of Onvia, Inc.;

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

d. Disclosed in this Report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Cameron S. Way

Cameron S. Way

Senior Vice-President and Chief Financial Officer

March 17, 2015

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Onvia, Inc. (the “Company”) on Form 10-K for the period ended December 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Henry G. Riner, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Henry G. Riner

Henry G. Riner

President and Chief Executive Officer

March 17, 2015

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Onvia, Inc. and will be retained by Onvia, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Onvia, Inc. (the “Company”) on Form 10-K for the period ended December 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Cameron S. Way, Chief Financial Officer and Principal Accounting Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Cameron S. Way

Cameron S. Way

Senior Vice-President and Chief Financial Officer

March 17, 2015

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Onvia, Inc. and will be retained by Onvia, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Note 2 - Stock-Based Compensation and Stock Option Activity (Details) - Changes In Non-Vested Restricted Stock Units (USD $)	12 Months Ended
	Dec. 31, 2013
Changes In Non-Vested Restricted Stock Units [Abstract]
Non Vested Balance	13,954
Non Vested Balance	$ 4.12
Vested	(13,954)
Vested	$ 4.12

XML

Note 10 - Commitments and Contingencies (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013 sqft	Dec. 31, 2014	Dec. 31, 2013
Note 10 - Commitments and Contingencies (Details) [Line Items]
Period Of Lease	65 months
Area of Real Estate Property	29,606
Operating Leases, Rent Expense (in Dollars)		$ 769,000	$ 760,000
Area Surrenderd After Execution Of Amendment [Member]
Note 10 - Commitments and Contingencies (Details) [Line Items]
Area of Real Estate Property	5,394
Right To Surrender Additional Area [Member]
Note 10 - Commitments and Contingencies (Details) [Line Items]
Area of Real Estate Property	8,898

XML

Note 8 - Accrued Expenses (Details) - Accrued Expenses (USD $)	Dec. 31, 2014	Dec. 31, 2013
Accrued Expenses [Abstract]
Payroll and related liabilities	$ 965,558	$ 714,481
Taxes payable and other	132,012	245,171
	$ 1,097,570	$ 959,652

XML

Note 10 - Commitments and Contingencies (Details) - Remaining Future Minimum Operating Lease Payments (USD $)	Dec. 31, 2014
Note 10 - Commitments and Contingencies (Details) - Remaining Future Minimum Operating Lease Payments [Line Items]
2015	$ 779,597
2016	799,951
2017	893,087
2018	915,292
2019	927,641
2020 and thereafter	1,260,722
	5,576,290
Real Estate Operating Leases [Member]
Note 10 - Commitments and Contingencies (Details) - Remaining Future Minimum Operating Lease Payments [Line Items]
2015	759,887
2016	780,241
2017	873,377
2018	895,582
2019	917,786
2020 and thereafter	1,260,722
	5,487,595
Office Equipment Operating Lease [Member]
Note 10 - Commitments and Contingencies (Details) - Remaining Future Minimum Operating Lease Payments [Line Items]
2015	19,710
2016	19,710
2017	19,710
2018	19,710
2019	9,855
	$ 88,695

XML

Note 7 - Internal Use Software (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Operating Expense [Member] | Computer Software, Intangible Asset [Member]
Note 7 - Internal Use Software (Details) [Line Items]
Amortization of Intangible Assets	$ 2.4	$ 2.3
Minimum [Member]
Note 7 - Internal Use Software (Details) [Line Items]
Capitalized Internal Use Software Useful Life	3 years
Maximum [Member]
Note 7 - Internal Use Software (Details) [Line Items]
Capitalized Internal Use Software Useful Life	5 years

XML

Note 1 - Summary of Significant Accounting Policies (Details) (USD $)	1 Months Ended	21 Months Ended	12 Months Ended
	Apr. 30, 2013	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2013
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items]
Stock Repurchased During Period, Shares (in Shares)	1,242,781	1,242,781
Treasury Stock, Shares (in Shares)		1,242,807	1,242,807	1,242,807
Treasury Stock, Value		$ 4,397,803	4,397,803	4,397,803
Equity Option [Member]
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares)			1,075,924	454,684
Property And Equipment [Member]
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items]
Asset Impairment Charges			0	0
Internal Use Software [Member]
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items]
Asset Impairment Charges			0	0
Minimum [Member]
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life			3 years
Capitalized Internal Use Software Useful Life			3 years
Maximum [Member]
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life			5 years
Capitalized Internal Use Software Useful Life			5 years

XML

Note 10 - Commitments and Contingencies (Details) - Non-Cancellable Purchase Obligations For Software Development And License Agreements (USD $)	Dec. 31, 2014
Non-Cancellable Purchase Obligations For Software Development And License Agreements [Abstract]
2015	$ 1,225,489
2016	752,736
2017	15,980
	$ 1,994,205

XML

Note 3 - Short-Term and Long-Term Investments (Tables)

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government backed securities	$	157,790	$	58	$	-		$	157,848
Certificates of Deposit  (1)		6,278,988		-		(547	)		6,278,441
	$	6,436,778	$	58	$	(547	)	$	6,436,289

	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-Term Investments
U.S. Government backed securities	$	2,251,972	$	438	$	(234	)	$	2,252,176
Certificates of Deposit  (1)		3,211,546		229		(545	)		3,211,230
Total Short-Term Investments		5,463,518		667		(779	)		5,463,406
Long-Term Investments
Certificates of Deposit  (1)		90,444		-		-			90,444
Total Long-Term Investments		90,444		-		-			90,444
Total Investments	$	5,553,962	$	667	$	(779	)	$	5,553,850

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	Fair Value Measurements as of December 31, 2014
	Level 1		Level 2		Level 3		Balance as of December 31, 2014
U.S. Government backed securities	$	-	$	157,848	$	-	$	157,848
Certificate of Deposit		-		6,278,441		-		6,278,441
	$	-	$	6,436,289	$	-	$	6,436,289

	Fair Value Measurements as of December 31, 2013
	Level 1		Level 2		Level 3		Balance as of December 31, 2013
U.S. Government backed securities	$	-	$	2,252,176	$	-	$	2,252,176
Certificate of Deposit		-		3,301,674		-		3,301,674
	$	-	$	5,553,850	$	-	$	5,553,850

XML

Note 9 - Income Taxes (Details) (USD $)	3 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Deferred Tax Assets Liabilities Gross	$ 24,930,458	$ 24,751,947	$ 24,930,458
Valuation Allowance Percentage		(100.00%)	100.00%
Income Tax Expense (Benefit)	2,175,000		2,175,000
Operating Loss Carryforwards	$ 72,970,169	$ 76,011,666	$ 72,970,169

XML

Note 4 - Prepaid Expenses and Other Current Assets (Details) - Prepaid Expenses and Other Current Assets (USD $)	Dec. 31, 2014	Dec. 31, 2013
Prepaid Expenses and Other Current Assets [Abstract]
Prepaid expenses	$ 672,957	$ 525,739
Interest receivable	4,351	14,027
Other receivables	4,932	30,332
	$ 682,240	$ 570,098

XML

Note 2 - Stock-Based Compensation and Stock Option Activity (Details) - Weighted Average Assumptions Used for ESPP Employee Purchase Price	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) - Weighted Average Assumptions Used for ESPP Employee Purchase Price [Line Items]
Expected dividends	0.00%
Stock Compensation Plan [Member]
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) - Weighted Average Assumptions Used for ESPP Employee Purchase Price [Line Items]
Risk-free interest rate	0.05%	0.08%
Expected volatility	36.00%	32.00%
Expected dividends	0.00%	0.00%
Expected life (in years)	6 months	6 months

XML

Note 9 - Income Taxes (Details) - Reconciliation Between the Statutory Income Tax Rate and the Effective Income Tax Rate	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Reconciliation Between the Statutory Income Tax Rate and the Effective Income Tax Rate [Abstract]
Tax expense at statutory rate	(34.00%)	34.00%
Stock-based compensation	56.20%	(9.10%)
Amortization of goodwill	(2.30%)	3.10%
Meals and entertainment	2.50%	(2.60%)
Deferred tax asset adjustment	2.10%	0.00%
Valuation allowance	(24.50%)	(421.20%)
Net tax expense	0.00%	(395.80%)

XML

Note 14 - Supplemental Cash Flow Information (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Supplemental Cash Flow Elements [Abstract]
Interest Expense, Lessee, Assets under Capital Lease	$ 9,900	$ 7,600

XML

Note 7 - Internal Use Software (Details) - Roll-forward of Capitalized Internal Use Software (USD $)	12 Months Ended
	Dec. 31, 2014
Roll-forward of Capitalized Internal Use Software [Abstract]
Capitalized Internal Use Software	$ 15,103,914
Capitalized Internal Use Software	2,003,192
Capitalized Internal Use Software	17,107,106
Accumulated amortization	(9,671,106)
Accumulated amortization	(2,376,635)
Accumulated amortization	(12,047,741)
	5,432,808
	(373,443)
	$ 5,059,365

XML

Note 3 - Short-Term and Long-Term Investments

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

 Note 3: Short-Term and Long-Term Investments

Onvia classifies short-term and long-term investments in debt securities as available-for-sale, stated at fair value as summarized in the following table:

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government backed securities	$	157,790	$	58	$	-		$	157,848
Certificates of Deposit  (1)		6,278,988		-		(547	)		6,278,441
	$	6,436,778	$	58	$	(547	)	$	6,436,289

(1) We evaluated certificates of deposits held as of December 31, 2014 and concluded that they meet the definition of securities.

	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-Term Investments
U.S. Government backed securities	$	2,251,972	$	438	$	(234	)	$	2,252,176
Certificates of Deposit  (1)		3,211,546		229		(545	)		3,211,230
Total Short-Term Investments		5,463,518		667		(779	)		5,463,406
Long-Term Investments
Certificates of Deposit  (1)		90,444		-		-			90,444
Total Long-Term Investments		90,444		-		-			90,444
Total Investments	$	5,553,962	$	667	$	(779	)	$	5,553,850

(1) We evaluated certificates of deposits held as of December 31, 2013 and concluded that they meet the definition of securities.

Onvia accounts for short-term investments at fair value defined as the exchange price that would be received for an asset, or paid to transfer a liability (an exit price), in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  Onvia applies a fair value hierarchy to its investments, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.  The standard describes three levels of inputs that may be used to measure fair value:

Level 1 – Quoted prices in active markets for identical assets or liabilities;

Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Onvia uses the market approach to measure fair value for its financial assets and liabilities.  The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.  The following tables summarize, by major security type, short-term and long-term investments classified as available-for-sale at December 31, 2014 and 2013, stated at fair value:

	Fair Value Measurements as of December 31, 2014
	Level 1		Level 2		Level 3		Balance as of December 31, 2014
U.S. Government backed securities	$	-	$	157,848	$	-	$	157,848
Certificate of Deposit		-		6,278,441		-		6,278,441
	$	-	$	6,436,289	$	-	$	6,436,289

	Fair Value Measurements as of December 31, 2013
	Level 1		Level 2		Level 3		Balance as of December 31, 2013
U.S. Government backed securities	$	-	$	2,252,176	$	-	$	2,252,176
Certificate of Deposit		-		3,301,674		-		3,301,674
	$	-	$	5,553,850	$	-	$	5,553,850

There were no transfers in or out of Level 1 or Level 2 investments during the year ended December 31, 2014 or the fourth quarter of 2013, and there was no activity in Level 3 fair value measurements during that period.

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Selected Quarterly Financial Information (Unaudited) (Details) - Quarterly Financial Data (USD $)	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Data [Abstract]
Revenue	$ 5,742,000	$ 5,700,000	$ 5,567,000	$ 5,616,000	$ 5,575,000	$ 5,442,000	$ 5,504,000	$ 5,498,000	$ 22,624,728	$ 22,019,771
Gross margin	4,803,000	4,794,000	4,612,000	4,684,000	4,676,000	4,481,000	4,538,000	4,575,000	18,893,120	18,270,593
Non-cash stock-based compensation	22,000	46,000	30,000	54,000	74,000	66,000	65,000	73,000	151,778	277,596
Total operating expenses	5,286,000	4,838,000	4,731,000	4,776,000	4,925,000	4,582,000	4,632,000	4,704,000	19,631,569	18,842,658
Loss from operations	(483,000)	(44,000)	(119,000)	(92,000)	(249,000)	(101,000)	(94,000)	(129,000)	(738,449)	(572,065)
Tax provision /(benefit)					2,175,000					2,175,000
Net loss	(479,000)	(42,000)	(117,000)	(89,000)	(2,420,000)	(98,000)	(88,000)	(120,000)	(727,279)	(2,724,575)
Unrealized gain / (loss) on available-for-sale investments	1,000	(1,000)	(1,000)	1,000		1,000	(2,000)		(406)	(1,437)
Comprehensive loss	$ (478,000)	$ (43,000)	$ (118,000)	$ (88,000)	$ (2,420,000)	$ (97,000)	$ (90,000)	$ (120,000)	$ (727,685)	$ (2,726,012)
Basic and diluted net loss per common share (in Dollars per share)	$ (0.06)	$ (0.01)	$ (0.02)	$ (0.01)	$ (0.33)	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.10)	$ (0.36)
Basic and diluted weighted average shares outstanding (in Shares)	7,399,000	7,396,000	7,395,000	7,352,000	7,333,000	7,329,000	7,367,000	8,554,000	7,385,740	7,638,452

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Note 5 - Security Deposits (Details) (USD $)	Dec. 31, 2014	Jan. 31, 2015	Jan. 31, 2014	Apr. 30, 2013
Note 5 - Security Deposits (Details) [Line Items]
Security Deposit	$ 150,000
Subsequent Event [Member] | Secured By Stand By Letter of Credit [Member]
Note 5 - Security Deposits (Details) [Line Items]
Letters of Credit Outstanding, Amount		150,000
Secured By Stand By Letter of Credit [Member]
Note 5 - Security Deposits (Details) [Line Items]
Letters of Credit Outstanding, Amount			$ 125,000	$ 100,000

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Note 8 - Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2014

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

	2014		2013
Payroll and related liabilities	$	965,558	$	714,481
Taxes payable and other		132,012		245,171
	$	1,097,570	$	959,652

Schedule of Other Assets and Other Liabilities [Table Text Block]

	2014		2013
Obligations under capital leases, current portion	$	24,039	$	17,701
Deferred rent, current portion		57,555		37,201
Other current liabilities		-		189,158
	$	81,594	$	244,060

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Note 7 - Internal Use Software (Tables)

12 Months Ended

Dec. 31, 2014

Internal Use Software Disclosure [Abstract]

Capitalized Internal Use Software Roll Forward [Table Text Block]

	Balance at December 31, 2013			Additions			Balance at December 31, 2014
Capitalized Internal Use Software	$	15,103,914		$	2,003,192		$	17,107,106
Accumulated amortization		(9,671,106	)		(2,376,635	)		(12,047,741	)
	$	5,432,808		$	(373,443	)	$	5,059,365

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Note 10 - Commitments and Contingencies (Details) - Non-Cancellable Capital Leases Remaining Future Minimum Lease Payments (USD $)	Dec. 31, 2014
Capital Lease Principal [Member]
Note 10 - Commitments and Contingencies (Details) - Non-Cancellable Capital Leases Remaining Future Minimum Lease Payments [Line Items]
2015	$ 35,494
2016	37,719
2017	40,096
2018	24,561
	137,870
Capital Lease Interest [Member]
Note 10 - Commitments and Contingencies (Details) - Non-Cancellable Capital Leases Remaining Future Minimum Lease Payments [Line Items]
2015	7,463
2016	5,238
2017	2,861
2018	496
	16,058
Total [Member]
Note 10 - Commitments and Contingencies (Details) - Non-Cancellable Capital Leases Remaining Future Minimum Lease Payments [Line Items]
2015	42,957
2016	42,957
2017	42,957
2018	25,057
	$ 153,928

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Note 6 - Property and Equipment (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Note 6 - Property and Equipment (Details) [Line Items]
Depreciation	$ 715,000	$ 746,000
Computer Equipment [Member]
Note 6 - Property and Equipment (Details) [Line Items]
Non Monitory Disposal Of Property Plant And Equipment	$ 180,000	$ 1,051,000

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Note 9 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	2014		2013
Deferred Tax Expense	$	-	$	2,175,000
Total Income Tax Expense	$	-	$	2,175,000

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	2014			2013
Tax expense at statutory rate		-34.0	%		34.0	%
Stock-based compensation		56.2	%		-9.1	%
Amortization of goodwill		-2.3	%		3.1	%
Meals and entertainment		2.5	%		-2.6	%
Deferred tax asset adjustment		2.1	%		0.0	%
Valuation allowance		-24.5	%		-421.2	%
Net tax expense		0.0	%		-395.8	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	2014			2013
Deferred Tax Assets
Net operating loss carryforward	$	25,843,966		$	24,809,857
Accrued expenses not currently deductible		775,414			1,154,419
Depreciation different for tax purposes		63,928			1,000,035
Deferred Tax Asset Total		26,683,308			26,964,311
Deferred Tax Liability
Prepaid expenses		(211,177	)		(186,698	)
Depreciation different for tax purposes		(1,720,184	)		(1,847,155	)
Deferred Tax Liabilities Total		(1,931,361	)		(2,033,853	)
Net deferred tax asset before valuation allowance		24,751,947			24,930,458
Valuation allowance		(24,751,947	)		(24,930,458	)
Net deferred tax asset after valuation allowance	$	-		$	-

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Note 10 - Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

	Real Estate Operating Leases		Office Equipment Operating Lease		Total Operating Leases
2015	$	759,887	$	19,710	$	779,597
2016		780,241		19,710		799,951
2017		873,377		19,710		893,087
2018		895,582		19,710		915,292
2019		917,786		9,855		927,641
2020 and thereafter		1,260,722		-		1,260,722
	$	5,487,595	$	88,695	$	5,576,290

Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]

	Principal		Interest		Total
2015	$	35,494	$	7,463	$	42,957
2016		37,719		5,238		42,957
2017		40,096		2,861		42,957
2018		24,561		496		25,057
	$	137,870	$	16,058	$	153,928

Long-term Purchase Commitment [Table Text Block]

	Purchase Obligations
2015	$	1,225,489
2016		752,736
2017		15,980
	$	1,994,205

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Note 2 - Stock-Based Compensation and Stock Option Activity

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 2: Stock-Based Compensation and Stock Option Activity

Onvia measures compensation cost for all stock-based awards at fair value on the date of grant.  The fair value of stock options is determined using the Black-Scholes valuation model.  Such value is recognized as expense over the service period, net of estimated forfeitures.  The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company’s current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised.  Management considers many factors when estimating expected forfeitures, including employee class, historical experience and expected future activity.  Actual results, and future changes in estimates, may differ substantially from management’s estimates.

Stock-Based Benefit Plans

Onvia, Inc. 2008 Equity Incentive Plan

The Onvia, Inc. 2008 Equity Incentive Plan, or the 2008 Plan, was adopted in September 2008 and it amended and restated the previous 1999 Stock Option Plan, or the 1999 Plan.  Shares that were outstanding from the 1999 Plan will continue to be outstanding under that plan until forfeited, at which time they would be added back to the 2008 Plan.  The 2008 Plan provides for the issuance of incentive and nonqualified common stock options, stock awards, restricted stock, restricted stock units and stock appreciation rights.  Awards under this plan can be granted for ten years after the adoption date.  The 2008 Plan requires that the exercise price for all options to be at least 100% of the fair market value of the underlying shares on the date of grant.  The 2008 Plan contains specific provisions that govern awards in the event of a change in control and provides for compliance with the requirements of Section 409A of the Internal Revenue Code to the extent that awards are treated as deferred compensation.  All employees, officers, directors and consultants of Onvia are eligible to participate in the 2008 Plan, although it is not anticipated that every eligible employee or consultant will receive awards.  Options under this plan vest in increments over time, but typically have either a four or five year vesting schedule, normally with 25% or 20%, respectively, vesting one year from the grant date and ratable monthly vesting thereafter.  As of December 31, 2014 the total number of options outstanding and the number of shares available for issuance under the 2008 Plan were 725,175 and 875,126 respectively.

2000 Directors’ Stock Option Plan

In March 2000, Onvia adopted a Directors’ Stock Option Plan or the Directors’ Plan.  This plan expired on February 28, 2010.  Options granted under this plan will remain active and will continue to vest according to the original grant provisions.  Grants were made under this plan to each eligible board member on the date such person was first elected or appointed as a board member.  At each annual stockholders’ meeting, each non-employee director was granted an additional option to purchase 1,000 shares of common stock under the Directors’ Plan, provided such person had been a board member of Onvia for at least the prior six months.  The initial option grants under the Directors’ Plan vested 25% each year for four years on the anniversary of the date of grant had a term of ten years, and an exercise price equal to the closing price of Onvia’s stock on the grant date.  The annual grants vest in full one year from the date of grant, have a ten year life, and an exercise price equal to the closing price on the date of grant.  As of December 31, 2008, all shares available for issuance under the Directors’ Plan had been granted.  Accordingly, on October 23, 2008, the Board of Directors approved the stock option grants with the same terms described above (historically made under our Directors’ Plan) under the Company’s 2008 Equity Incentive Plan.          

Employee Stock Purchase Plan

In May 2000, Onvia adopted the 2000 Employee Stock Purchase Plan, or ESPP, and initially authorized 60,000 shares of common stock for issuance under the ESPP.  Each year, the number of shares authorized for issuance under the ESPP is increased by the lesser of: 1% of the total number of shares of common stock then outstanding; 60,000 shares; or a lesser number of shares as determined by the Board of Directors.  Under the ESPP, an eligible employee may purchase shares of Onvia common stock, based on certain limitations, at a price equal to the lesser of 85% of the fair market value of the common stock at the beginning or end of the respective offering period.  This plan is compensatory under the provisions of ASC 718 and the fair value of purchases under the ESPP is recognized as compensation expense over the term of the awards. The ESPP purchases shares on a semi-annual basis.  The total number of shares authorized for future issuance under the ESPP as of December 31, 2014 was 472,624 shares.

Impact on Results of Operations

The impact on Onvia’s results of operations of recording stock-based compensation for the years ended December 31 was as follows:

	2014		2013
Cost of sales	$	5,119	$	7,719
Sales and marketing		3,759		50,916
Technology and development		20,248		40,950
General and administrative		122,652		178,011
Total stock-based compensation	$	151,778	$	277,596

Valuation Assumptions

Onvia calculated the fair value of each option award on the date of grant using the Black-Scholes valuation model.  The following weighted average assumptions were used for options granted in the years ending December 31:

	2014			2013
Risk-free interest rate		1.67	%		1.29	%
Expected volatility		48	%		53	%
Expected dividends		0	%		0	%
Expected life (in years)		5.0			5.1

The fair value of each employee purchase under the ESPP is estimated on the first day of each purchase period using the Black-Scholes valuation model.  Purchase periods begin on May 1 and November 1 of each year.  The following weighted average assumptions were used for purchase periods beginning during the years ended December 31 under the ESPP:

	2014			2013
Risk-free interest rate		0.05	%		0.08	%
Expected volatility		36	%		32	%
Expected dividends		0	%		0	%
Expected life (in years)		0.5			0.5

Risk-Free Interest Rate

The average risk free interest rate was determined based on the market yield for U.S. Treasury securities for the expected term of the grant at the time of grant.

Expected Volatility

Management used the historical volatility of Onvia’s common stock to estimate the future volatility of its common stock over the expected term of the options granted for purposes of estimating the fair value of options granted during 2014 and 2013.

Expected Dividends

Management does not currently intend to pay dividends; therefore, this assumption is set at 0%.

Expected Life

Onvia’s computation of expected life was determined based on historical experience of similar awards, giving consideration to the contractual terms of the awards, vesting schedules and expectations of future employee behavior.  Management estimated future exercise and cancellation behavior, generally by assuming that remaining shares would be exercised or cancelled ratably over their remaining contractual term, adjusted for certain expectations of future employee behavior.  Management examined the behavior patterns separately for distinct groups of employees that have similar historical experience.

Stock Option Activity

The following table summarizes activity under Onvia’s equity incentive plans for the year ended December 31, 2014:

	Options Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (1)
Total options outstanding at January 1, 2014		1,133,744		$	4.68
Options granted		56,000			4.64
Options exercised		(45,791	)		4.47
Options forfeited and cancelled		(254,361	)		6.36
Total options outstanding at December 31, 2014		889,592		$	4.20
Options exercisable at December 31, 2014		670,737		$	4.38		4.76	$	849,986
Options vested and expected to vest at December 31, 2014		874,787		$	4.21		5.44	$	1,134,222

(1) Aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of Onvia’s common stock of $5.02 at December 31, 2014 for options that were in-the-money at December 31, 2014.  The number of in-the-money options outstanding and exercisable at December 31, 2014 was 689,875 and 482,142 respectively.

The weighted average grant date fair value of options granted during the years ended December 31, 2014 and 2013 was $2.01 and $1.91 per share, respectively.  The total intrinsic value of options exercised during the years ended December 31, 2014 and 2013 was $36,567 and $59,646, respectively.

As of December 31, 2014, there was approximately $136,000 of unrecognized compensation costs related to unvested stock options and estimated purchases under the ESPP.  That cost is expected to be recognized over a weighted average period of 1.16 years.

During the years ended December 31, 2014 and 2013, respectively, approximately $242,000 and $122,000 was received for exercises of stock options and purchases under Onvia’s ESPP.

Restricted Stock Units

The following table summarizes changes in non-vested restricted stock units (“RSUs”) for the year ended December 31, 2013:

	Number of shares			Weighted Average  Grant Date Fair Value
Non-vested balance at January 1, 2013		13,954		$	4.12
Granted		-			-
Vested		(13,954	)		4.12
Forfeited / Expired		-			-
Non-vested balance at December 31, 2013		-		$	-

RSUs were granted in the first quarter of 2011 and valued on the grant date based upon the fair value of the underlying common stock on the grant date.  Prior to the first quarter of 2011, no RSUs had been granted.  The value of the RSUs granted is recognized as compensation expense over the applicable vesting period.  The RSUs granted during the first quarter of 2011 have a three year vesting period and were subject to accelerated vesting based upon achievement of 2011 financial targets.  The 2011 financial targets were not achieved and these RSU’s were fully vested on December 31, 2013. Net shares released on December 31, 2013 were 10,264 and 3,690 shares were withheld to cover taxes. Closing price per share on release date was $4.96.  No RSUs were granted during 2014.

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Selected Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information [Table Text Block]

	Three Months Ended
	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
	(in thousands, except per share amounts)
Historical Consolidated Statements of Operations and Comprehensive Income Data:
Revenue	$	5,616		$	5,567		$	5,700		$	5,742
Gross margin		4,684			4,612			4,794			4,803
Non-cash stock-based compensation		54			30			46			22
Total operating expenses		4,776			4,731			4,838			5,286
Loss from operations		(92	)		(119	)		(44	)		(483	)
Tax provision /(benefit)		-			-			-			-
Net loss	$	(89	)	$	(117	)	$	(42	)	$	(479	)
Unrealized gain / (loss) on available-for-sale investments		1			(1	)		(1	)		1
Comprehensive loss		(88	)		(118	)		(43	)		(478	)
Basic and diluted net loss per common share	$	(0.01	)	$	(0.02	)	$	(0.01	)	$	(0.06	)
Basic and diluted weighted average shares outstanding		7,352			7,395			7,396			7,399

	Three Months Ended
		March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013
	(in thousands, except per share amounts)
Historical Consolidated Statements of Operations and Comprehensive Income Data:
Revenue	$	5,498		$	5,504		$	5,442		$	5,575
Gross margin		4,575			4,538			4,481			4,676
Non-cash stock-based compensation		73			65			66			74
Total operating expenses		4,704			4,632			4,582			4,925
Loss from operations		(129	)		(94	)		(101	)		(249	)
Provision for income tax		-			-			-			2,175
Net loss	$	(120	)	$	(88	)	$	(98	)	$	(2,420	)
Unrealized (loss) / gain on available-for-sale investments		-			(2	)		1			-
Comprehensive loss		(120	)		(90	)		(97	)		(2,420	)
Basic and diluted net loss per common share	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.33	)
Basic and diluted weighted average shares outstanding		8,554			7,367			7,329			7,333

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Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments in Debt Securities as Available-For-Sale at Fair Value (USD $)	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013
Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments in Debt Securities as Available-For-Sale at Fair Value [Line Items]
Amortized Cost			$ 5,553,962
Gross Unrealized Gains			667
Gross Unrealized Losses			(779)
Fair Value			5,553,850
Short-term Investments [Member] | US Government Agencies Debt Securities [Member]
Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments in Debt Securities as Available-For-Sale at Fair Value [Line Items]
Amortized Cost	157,790		2,251,972
Gross Unrealized Gains	58		438
Gross Unrealized Losses			(234)
Fair Value	157,848		2,252,176
Short-term Investments [Member] | Certificate Of Deposit [Member]
Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments in Debt Securities as Available-For-Sale at Fair Value [Line Items]
Amortized Cost	6,278,988	[1]	3,211,546	[2]
Gross Unrealized Gains		[1]	229	[2]
Gross Unrealized Losses	(547)	[1]	(545)	[2]
Fair Value	6,278,441	[1]	3,211,230	[2]
Short-term Investments [Member]
Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments in Debt Securities as Available-For-Sale at Fair Value [Line Items]
Amortized Cost	6,436,778		5,463,518
Gross Unrealized Gains	58		667
Gross Unrealized Losses	(547)		(779)
Fair Value	6,436,289		5,463,406
Long-term Investments [Member] | Certificate Of Deposit [Member]
Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments in Debt Securities as Available-For-Sale at Fair Value [Line Items]
Amortized Cost			90,444	[2]
Gross Unrealized Gains				[2]
Gross Unrealized Losses				[2]
Fair Value			90,444	[2]
Long-term Investments [Member]
Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments in Debt Securities as Available-For-Sale at Fair Value [Line Items]
Amortized Cost			90,444
Fair Value			$ 90,444

[1] We evaluated certificates of deposits held as of December 31, 2014 and concluded that they meet the definition of securities.

[2] We evaluated certificates of deposits held as of December 31, 2013 and concluded that they meet the definition of securities.

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Note 9 - Income Taxes (Details) - Deferred Tax Asset (USD $)	Dec. 31, 2014	Dec. 31, 2013
Deferred Tax Assets
Net operating loss carryforward	$ 25,843,966	$ 24,809,857
Accrued expenses not currently deductible	775,414	1,154,419
Depreciation different for tax purposes	63,928	1,000,035
Deferred Tax Asset Total	26,683,308	26,964,311
Deferred Tax Liability
Prepaid expenses	(211,177)	(186,698)
Depreciation different for tax purposes	(1,720,184)	(1,847,155)
Deferred Tax Liabilities Total	(1,931,361)	(2,033,853)
Net deferred tax asset before valuation allowance	24,751,947	24,930,458
Valuation allowance	(24,751,947)	(24,930,458)
Net deferred tax asset after valuation allowance	$ 0	$ 0

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Consolidated Balance Sheets (USD $)	Dec. 31, 2014	Dec. 31, 2013
CURRENT ASSETS:
Cash and cash equivalents	$ 1,576,799	$ 2,072,865
Short-term investments, available-for-sale	6,436,289	5,463,406
Accounts receivable, net of allowance for doubtful accounts of $42,491 and $24,751	1,735,009	1,332,509
Prepaid expenses and other current assets	682,240	570,098
Total current assets	10,430,337	9,438,878
LONG TERM ASSETS:
Property and equipment, net of accumulated depreciation	1,357,683	1,773,012
Internal use software, net of accumulated amortization	5,059,365	5,432,808
Long-term investments		90,444
Other long-term assets	180,980	173,824
Total long term assets	6,598,028	7,470,088
TOTAL ASSETS	17,028,365	16,908,966
CURRENT LIABILITIES:
Accounts payable	873,433	834,215
Accrued expenses	1,097,570	959,652
Unearned revenue, current portion	8,478,327	7,770,502
Other current liabilities	81,594	244,060
Total current liabilities	10,530,924	9,808,429
LONG TERM LIABILITIES:
Unearned revenue, net of current portion	404,980	649,681
Deferred rent, net of current portion	590,346	586,071
Other long-term liabilities	68,605	97,704
Total long term liabilities	1,063,931	1,333,456
TOTAL LIABILITIES	11,594,855	11,141,885
COMMITMENTS AND CONTINGENCIES (Note 10)
STOCKHOLDERS’ EQUITY:
Preferred stock; $.0001 par value: 2,000,000 shares authorized; no shares issued or outstanding	0	0
Common stock; $.0001 par value: 11,000,000 shares authorized; 8,643,460 and 8,577,732 shares issued; and 7,400,653 and 7,345,189 shares outstanding	740	735
Treasury stock, at cost: 1,242,807 and 1,242,807 shares	(4,397,803)	(4,397,803)
Additional paid in capital	353,852,218	353,458,109
Accumulated other comprehensive loss	(562)	(156)
Accumulated deficit	(344,021,083)	(343,293,804)
Total stockholders’ equity	5,433,510	5,767,081
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 17,028,365	$ 16,908,966

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Note 6 - Property and Equipment (Details) - Property and Equipment (USD $)	Dec. 31, 2014	Dec. 31, 2013
Property and Equipment [Abstract]
Computer equipment	$ 3,675,759	$ 3,575,819
Software	1,855,785	1,837,536
Furniture and fixtures	108,539	107,113
Leasehold improvements	882,602	882,602
Total cost basis	6,522,685	6,403,070
Less accumulated depreciation and amortization	(5,165,002)	(4,630,058)
Net book value	$ 1,357,683	$ 1,773,012

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Consolidated Statements of Stockholders’ Equity (USD $)	Common Stock [Member] Employee Stock Option [Member] USD ($)	Common Stock [Member] Restricted Stock [Member]	Common Stock [Member] USD ($)	Treasury Stock [Member] USD ($)	Additional Paid-in Capital [Member] Employee Stock Option [Member] USD ($)	Additional Paid-in Capital [Member] Restricted Stock [Member] USD ($)	Additional Paid-in Capital [Member] USD ($)	Accumulated Other Comprehensive Income (Loss) [Member] USD ($)	Retained Earnings [Member] USD ($)	Employee Stock Option [Member] USD ($)	Restricted Stock [Member] USD ($)	Total USD ($)
BALANCE, January 1, 2013 at Dec. 31, 2012			$ 853	$ (129)			$ 353,077,517	$ 1,281	$ (340,569,229)			$ 12,510,293
BALANCE, January 1, 2013 (in Shares) at Dec. 31, 2012			8,528,281	26
Restricted stock units released			1									1
Restricted stock units released (in Shares)			13,954
Unrealized gain on available-for-sale investments								(1,437)				(1,437)
Net Income (Loss)									(2,724,575)			(2,724,575)
Exercise of stock options			6				145,723					145,729
Exercise of stock options (Shares) (in Shares)			56,495
Restricted stock units and stock options held for taxes	(2)				(56,098)	(18,820)				(56,100)	(18,820)
Restricted stock units and stock options held for taxes (in Shares)	(15,847)	(3,690)
Purchases under Employee Stock Purchase Plan			1				32,191					32,192
Purchases under Employee Stock Purchase Plan (Shares) (in Shares)			8,777
Stock repurchase			(124)	(4,397,674)								(4,397,798)
Stock repurchase (in Shares)			(1,242,781)	1,242,781
Stock-based compensation							277,596					277,596
BALANCE at Dec. 31, 2013			735	(4,397,803)			353,458,109	(156)	(343,293,804)			5,767,081
BALANCE (Shares) (in Shares) at Dec. 31, 2013			7,345,189	1,242,807
Unrealized gain on available-for-sale investments								(406)				(406)
Net Income (Loss)									(727,279)			(727,279)
Exercise of stock options			5				204,580					204,585
Exercise of stock options (Shares) (in Shares)			45,791									45,791
Purchases under Employee Stock Purchase Plan							37,751					37,751
Purchases under Employee Stock Purchase Plan (Shares) (in Shares)			9,673
Stock-based compensation							151,778					151,778
BALANCE at Dec. 31, 2014			$ 740	$ (4,397,803)			$ 353,852,218	$ (562)	$ (344,021,083)			$ 5,433,510
BALANCE (Shares) (in Shares) at Dec. 31, 2014			7,400,653	1,242,807

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Note 12 - Stockholders' Equity (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Stockholders' Equity Note [Abstract]
Stock Shares Authorized	13,000,000
Stock Par Value Per Share (in Dollars per share)	$ 0.0001
Common Stock, Shares Authorized	11,000,000	11,000,000
Preferred Stock, Shares Authorized	2,000,000	2,000,000

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Note 2 - Stock-Based Compensation and Stock Option Activity (Details) - Impact on Results of Operations of Recording Stock Based Compensation (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Compensation Allocation of Recognized Period Costs	$ 151,778	$ 277,596
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Compensation Allocation of Recognized Period Costs	5,119	7,719
Selling and Marketing Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Compensation Allocation of Recognized Period Costs	3,759	50,916
Technology And Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Compensation Allocation of Recognized Period Costs	20,248	40,950
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Compensation Allocation of Recognized Period Costs	$ 122,652	$ 178,011

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Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2014

Valuation and Qualifying Accounts [Abstract]

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

Description	Balances at Beginning of Period		Charged to Costs and Expenses		Deductions(1)			Balances at End of Period
Allowance for doubtful accounts
Year Ended December 31, 2013	$	41,548		44,050		(60,847	)	$	24,751
Year Ended December 31, 2014	$	24,751		30,502		(12,762	)	$	42,491

(1) Uncollectible accounts written off, net of recoveries.

Description (in thousands)	Balances at Beginning of Period		Charged to Costs and Expenses		Deductions(2)			Balances at End of Period
Deferred tax assets-valuation allowance(2)
Year Ended December 31, 2013	$	22,625		2,305		-		$	24,930
Year Ended December 31, 2014	$	24,930		-		(178	)	$	24,752

(2) The additions to and reductions in the deferred tax assets-valuation allowance represent the portion of a deferred tax asset for which either: (i) it is more likely than not that a tax benefit will not be realized, or (ii) it is more likely than not a tax benefit will be realized.

Schedules not listed above have been omitted because they are not applicable, are not required or the information required to be set forth in the schedules is included in the consolidated financial statements or related notes.

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Note 2 - Stock-Based Compensation and Stock Option Activity (Details) - Weighted Average Assumptions Used for The Black-Scholes Valuation Mode	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) - Weighted Average Assumptions Used for The Black-Scholes Valuation Mode [Line Items]
Expected dividends	0.00%
Employee Stock Option [Member]
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) - Weighted Average Assumptions Used for The Black-Scholes Valuation Mode [Line Items]
Risk-free interest rate	1.67%	1.29%
Expected volatility	48.00%	53.00%
Expected dividends	0.00%	0.00%
Expected life (in years)	5 years	5 years 36 days

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Note 2 - Stock-Based Compensation and Stock Option Activity (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	2014		2013
Cost of sales	$	5,119	$	7,719
Sales and marketing		3,759		50,916
Technology and development		20,248		40,950
General and administrative		122,652		178,011
Total stock-based compensation	$	151,778	$	277,596

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	2014			2013
Risk-free interest rate		1.67	%		1.29	%
Expected volatility		48	%		53	%
Expected dividends		0	%		0	%
Expected life (in years)		5.0			5.1

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]

	2014			2013
Risk-free interest rate		0.05	%		0.08	%
Expected volatility		36	%		32	%
Expected dividends		0	%		0	%
Expected life (in years)		0.5			0.5

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Options Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (1)
Total options outstanding at January 1, 2014		1,133,744		$	4.68
Options granted		56,000			4.64
Options exercised		(45,791	)		4.47
Options forfeited and cancelled		(254,361	)		6.36
Total options outstanding at December 31, 2014		889,592		$	4.20
Options exercisable at December 31, 2014		670,737		$	4.38		4.76	$	849,986
Options vested and expected to vest at December 31, 2014		874,787		$	4.21		5.44	$	1,134,222

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

	Number of shares			Weighted Average  Grant Date Fair Value
Non-vested balance at January 1, 2013		13,954		$	4.12
Granted		-			-
Vested		(13,954	)		4.12
Forfeited / Expired		-			-
Non-vested balance at December 31, 2013		-		$	-

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Note 1 - Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1: Summary of Significant Accounting Policies

Description of business

Onvia (“Onvia” or the “Company”) is a leading provider of business information and research solutions that help companies plan, market and sell to government agencies throughout the United States, or U.S.  Onvia’s business solution provides clients online access to a proprietary database of government procurement opportunities across the federal, state, local, and education sectors.  The business intelligence derived from our database allows clients to identify new market opportunities, analyze market trends, and obtain insights about their competitors and channel partners.  The Company believes its business solutions provide clients with a distinct competitive advantage, increased revenue opportunities, and strategic insight into the public sector market.

Basis of consolidation

Onvia had a wholly-owned subsidiary in Canada that was dissolved effective December 19, 2014; however, there was no business activity in this subsidiary in the fiscal years ended December 31, 2014 or 2013.  The wholly-owned subsidiary owned no assets or liabilities as of the date of dissolution.

Use of estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires the Company’s management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.  Significant estimates include the fair value of stock-based compensation, allowance for doubtful accounts, recoverability of long-lived assets, and the valuation allowance for net deferred tax assets.  The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances.  Actual results may differ significantly from the Company’s estimates.  In addition, any significant unanticipated changes in any of the Company’s assumptions could have a material adverse effect on its business, financial condition, and results of operations.

Revenue recognition

Onvia’s revenues are primarily generated from client subscriptions, content licenses and management reports.  Onvia’s subscriptions are generally annual contracts; however, the Company also offers extended multi-year contracts to its subscription clients, and content licenses are generally multi-year agreements.  Subscription fees and content licenses are recognized ratably over the term of the agreement.  Onvia also generates revenue from fees charged for management reports, document download services, and other services; revenue from these types of services is recognized upon delivery, or, if report refreshes are included, ratably over the service period.

Onvia’s subscription services and management reports are also sold together as a bundled offering.  The Company allocates revenue from these bundled sales ratably between the subscription services and the management reports based on established list prices for those offerings.The Company measures and allocates arrangement consideration to one or more units of accounting for separate deliverables.  The Company also establishes a selling price hierarchy for determining the selling price of a deliverable.

Unearned revenue consists of payments received for prepaid subscriptions, as well as the invoiced, but unpaid, portion of subscriptions and content licenses whose terms extend into periods beyond the balance sheet date.

Fair value of financial instruments

Onvia’s financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable, security deposits, accounts payable, and accrued liabilities.  The carrying amounts of the current portion of the financial instruments approximate fair value due to their short maturities.  The carrying value of the long-term portion of security deposits approximates fair value as the interest rate is at market value.  All investments, when held, are classified as available-for-sale and are reported at fair value based on market quotes, and unrealized gains or losses on these investments are recorded in stockholders’ equity and reported in comprehensive income.

Cash, cash equivalents and investments

Onvia considers all highly liquid instruments with remaining maturities at purchase of 90 days or less to be cash equivalents.  The fair value of the money market funds, included in cash equivalents, at December 31, 2014 and 2013, was classified as Level 1, as amounts were based on quoted prices available in active markets for identical investments as of the reporting date.  Investments with original maturities of greater than 90 days, but with remaining maturities of less than one year are classified as short-term, and investments with remaining maturities of 365 days or greater are classified as long-term.  All investments are classified as available-for-sale and reported at fair value based on market quotes, and unrealized gains or losses on these investments are recorded in stockholders’ equity and reported in comprehensive income.

Management of credit risk

Onvia is subject to concentration of credit risk, primarily from its investments and customer contracts.  Onvia manages its credit risk for investments by purchasing investment-grade securities and diversifying its investment portfolio among issuers and maturities.  Currently, the Company invests primarily in FDIC insured or government backed funds and securities to mitigate the credit risk associated with its investment portfolio.  The Company manages credit risks on customer contracts by adhering to common underwriting practices.

Property and equipment

Equipment and leasehold improvements are stated at cost, net of accumulated depreciation.  Depreciation expense on software, furniture, and equipment is recorded using the straight-line method over estimated useful lives of three to five years.  Leasehold improvements are depreciated over the shorter of their useful lives or the remaining term of the underlying lease.

The Company periodically evaluates its long-lived assets for impairment.  An impairment loss would be recognized for assets to be disposed of or held-for-use when the carrying amount of an asset is deemed to not be recoverable.  If events or circumstances indicate that any of the Company’s long-lived assets might be impaired, the Company analyzes the estimated undiscounted future cash flows to be generated from the applicable asset.  In addition, the Company records an impairment loss to the extent that the carrying value of the asset exceeds the fair value of the asset.  Fair value is generally determined using an estimate of discounted future net cash flows from operating activities or upon disposal of the asset.  No assets were impaired during the years ended December 31, 2014 or 2013.

Internal use software

All qualifying costs related to the development of internal use software, other than those incurred during the application development stage, are expensed as incurred.  Costs incurred during the application development stage are required to be capitalized and amortized over the estimated useful life of the software.  Capitalized software costs are amortized on a straight-line basis over their expected economic lives, typically 3 to 5 years.  The amount of costs capitalized within any period is dependent on the nature of software development activities and projects in each period.

Onvia periodically evaluates the remaining useful lives of internal use software and will record an abandonment if management determines that all or a portion of the asset will no longer be used, or will adjust the remaining useful life to reflect revised estimates for impairment as described above under “Property and equipment.”  In addition, if the carrying value of the software exceeds the estimated future cash flows, an impairment will be recorded to reduce the carrying value to the expected realizable value.  No assets were impaired during the years ended December 31, 2014 or 2013.

Income taxes

Onvia accounts for income taxes using the asset and liability method.  Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and for net operating loss, or NOL, carryforwards.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The deferred tax asset has been reduced by a valuation allowance that reduces the amount of our deferred tax asset to a level that is more-than-likely-than-not to be recognized.  In determining the amount of the valuation allowance the Company considers whether it is more likely that some portion or all of the net deferred tax assets will not be realized.  In particular, the Company considers its three-year earnings trend to determine if it has generated cumulative net income or net losses over that period, which the accounting guidance considers significant evidence to evaluate in determining the existence and amount of any valuation allowance.  Onvia also considers positive evidence, such as improving trends in the leading indicators of revenue growth to evaluate the likelihood of generating taxable net income in the future.  The ultimate realization of net deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are expected to be deductible.  The Company will continue to review the estimate of future taxable income and will adjust the valuation allowance accordingly as new information becomes available.

Treasury stock

Onvia accounts for treasury stock using the cost method.  In April 2013, Onvia repurchased 1,242,781 shares of common stock as discussed in Note 13. As of December 31, 2014, the Company held 1,242,807 shares of treasury stock with a cost basis of $4,397,803.  The Company holds the treasury shares to fund matching contributions to its 401K retirement plan for employee contributions.  As discussed in Note 11, no treasury shares were used to fund matching contributions for 2014 or 2013 employee contributions.

Other comprehensive income or loss

Comprehensive income or loss is the change in equity from transactions and other events and circumstances other than those resulting from investments by and distributions to owners.  Other comprehensive income or loss for Onvia consists of unrealized gains and losses on available-for-sale investments.

Net income or loss per share

Basic income or loss per share is calculated by dividing net income or loss for the period by the weighted average shares of common stock outstanding for the period.  Diluted earnings per share is calculated by dividing net income or loss per share by the weighted average common stock outstanding for the period plus dilutive potential common shares using the treasury stock method.  In periods with a net loss, basic and diluted earnings per share are identical because inclusion of potentially dilutive common shares would be antidilutive.

For the year ended December 31, 2014, options to purchase 1,075,924 shares of common stock were not included in the calculation because the effect would have been anti-dilutive.  For the year ended December 31, 2013, options to purchase 454,684 shares of common stock were not included in the calculation because the effect would have been anti-dilutive. 

Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance for revenue from contracts with customers, which provides a single comprehensive revenue recognition model to apply in determining how and when to recognize revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. When applying the new revenue model to contracts with customers the guidance requires five steps to be applied, which include: 1) identify the contract(s) with a customer, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also requires both quantitative and qualitative disclosures, which are more comprehensive than existing revenue standards. The disclosures are intended to enable financial statement users to understand the nature, timing and uncertainty of revenue and the related cash flow. This guidance will be effective for Onvia in the first quarter of 2017 and early adoption is not permitted. The Company is currently assessing the impact the guidance will have upon adoption.

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Consolidated Balance Sheets (Parentheticals) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Allowance for doubtful accounts (in Dollars)	$ 42,491	$ 24,751
Preferred stock par value (in Dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	11,000,000	11,000,000
Common stock, shares issued	8,643,460	8,577,732
Common stock, shares outstanding	7,400,653	7,345,189
Treasury stock, Shares	1,242,807	1,242,807

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Note 11 - Employee Retirement Plan

12 Months Ended

Dec. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

Note 11: Employee Retirement Plan

In March 2000, Onvia adopted a Savings and Retirement Plan (the “Retirement Plan”), which is a defined contribution plan.  The Retirement Plan is a qualified salary reduction plan in which all eligible employees may elect to have a percentage of their pre-tax compensation contributed to the Retirement Plan, subject to certain guidelines issued by the Internal Revenue Service.

In January 2006, the Retirement Plan was amended to add a discretionary matching contribution, made in either cash or Onvia common stock, up to 25% of every dollar up to 6% of all eligible employee contributions.  The matching contributions are subject to a four year vesting schedule, with vesting measured from the employee’s date of hire.  The Company’s Board of Directors has the sole discretion to make matching contributions in the first quarter following each Plan year, and employees must be employed on the last day of the Plan year to be eligible to receive the matching contribution.  As of December 31, 2014, 1,242,807 shares were available in treasury.  In March 2009, Onvia transferred 8,055 shares from treasury stock into the Retirement Plan to match 2008 employee contributions.  The Company recorded $82,000 in non-cash stock-based compensation in 2009 related to this match. Onvia’s Board of Directors authorized 10% matching contribution for both 2014 and 2013.  This contribution was made in cash in the amount of $51,000 and $29,000 for 2014 and 2013, respectively.

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Document And Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Mar. 01, 2015	Jun. 30, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	ONVIA INC
Document Type	10-K
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		7,400,653
Entity Public Float			$ 23,204,091
Amendment Flag	false
Entity Central Index Key	0001100917
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

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Note 12 - Stockholders' Equity

12 Months Ended

Dec. 31, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Note 12: Stockholders’ Equity

Authorized shares

At December 31, 2014, the number of authorized shares is 13,000,000 with a par value of $0.0001 per share.  Authorized shares are comprised of 11,000,000 shares of common stock and 2,000,000 shares of undesignated preferred stock.

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Consolidated Statements of Operations and Comprehensive Loss (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Revenue
Subscription	$ 20,338,249	$ 19,356,245
Content license	1,905,431	1,941,864
Management information reports	154,067	434,411
Other	226,981	287,251
Total revenue	22,624,728	22,019,771
Cost of revenue (exclusive of depreciation and amortization included below)	3,731,608	3,749,178
Gross margin	18,893,120	18,270,593
Operating expenses:
Sales and marketing	11,902,667	11,429,045
Technology and development	4,128,838	4,054,399
General and administrative	3,600,064	3,359,214
Total operating expenses	19,631,569	18,842,658
Loss from operations	(738,449)	(572,065)
Interest and other income, net	11,170	22,490
Loss before income tax	(727,279)	(549,575)
Provision for income taxes		2,175,000
Net loss	(727,279)	(2,724,575)
Unrealized loss on available-for-sale securities	(406)	(1,437)
Comprehensive loss	$ (727,685)	$ (2,726,012)
Basic and diluted net loss per common share (in Dollars per share)	$ (0.10)	$ (0.36)
Basic and diluted weighted average shares outstanding (in Shares)	7,385,740	7,638,452

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Note 6 - Property and Equipment

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Note 6: Property and Equipment

Property and equipment consists of the following at December 31:

	2014			2013
Computer equipment	$	3,675,759		$	3,575,819
Software		1,855,785			1,837,536
Furniture and fixtures		108,539			107,113
Leasehold improvements		882,602			882,602
Total cost basis		6,522,685			6,403,070
Less accumulated depreciation and amortization		(5,165,002	)		(4,630,058	)
Net book value	$	1,357,683		$	1,773,012

During the year ended December 31, 2014, Onvia disposed of fully depreciated computer equipment valued at $180,000 compared to disposal of $1,051,000 of fully depreciated computer equipment for the same period in 2013.

Depreciation expense was $715,000 and $746,000 for the years ended December 31, 2014 and 2013, respectively.

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Note 5 - Security Deposits

12 Months Ended

Dec. 31, 2014

Lease Security Deposit [Abstract]

Lease Security Deposit [Text Block]

Note 5: Security Deposits

Pursuant to Onvia’s lease for its current corporate office space, Onvia has established a stand by letter of credit as security to the lease increasing from $100,000 in April 2013, to $125,000 in January 2014 and to $150,000 on January 2015.  The letter of credit will be returned at lease termination in April 2021 or earlier as discussed above, subject to standard office lease conditions. As of December 31, 2014, the stand by letter of credit is secured by a security deposit of $150,000.

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Accounting Policies, by Policy (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Basis of consolidation

Onvia had a wholly-owned subsidiary in Canada that was dissolved effective December 19, 2014; however, there was no business activity in this subsidiary in the fiscal years ended December 31, 2014 or 2013.  The wholly-owned subsidiary owned no assets or liabilities as of the date of dissolution.

Use of Estimates, Policy [Policy Text Block]

Use of estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires the Company’s management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.  Significant estimates include the fair value of stock-based compensation, allowance for doubtful accounts, recoverability of long-lived assets, and the valuation allowance for net deferred tax assets.  The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances.  Actual results may differ significantly from the Company’s estimates.  In addition, any significant unanticipated changes in any of the Company’s assumptions could have a material adverse effect on its business, financial condition, and results of operations.

Revenue Recognition, Policy [Policy Text Block]

Revenue recognition

Onvia’s revenues are primarily generated from client subscriptions, content licenses and management reports.  Onvia’s subscriptions are generally annual contracts; however, the Company also offers extended multi-year contracts to its subscription clients, and content licenses are generally multi-year agreements.  Subscription fees and content licenses are recognized ratably over the term of the agreement.  Onvia also generates revenue from fees charged for management reports, document download services, and other services; revenue from these types of services is recognized upon delivery, or, if report refreshes are included, ratably over the service period.

Onvia’s subscription services and management reports are also sold together as a bundled offering.  The Company allocates revenue from these bundled sales ratably between the subscription services and the management reports based on established list prices for those offerings.The Company measures and allocates arrangement consideration to one or more units of accounting for separate deliverables.  The Company also establishes a selling price hierarchy for determining the selling price of a deliverable.

Unearned revenue consists of payments received for prepaid subscriptions, as well as the invoiced, but unpaid, portion of subscriptions and content licenses whose terms extend into periods beyond the balance sheet date.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair value of financial instruments

Onvia’s financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable, security deposits, accounts payable, and accrued liabilities.  The carrying amounts of the current portion of the financial instruments approximate fair value due to their short maturities.  The carrying value of the long-term portion of security deposits approximates fair value as the interest rate is at market value.  All investments, when held, are classified as available-for-sale and are reported at fair value based on market quotes, and unrealized gains or losses on these investments are recorded in stockholders’ equity and reported in comprehensive income.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash, cash equivalents and investments

Onvia considers all highly liquid instruments with remaining maturities at purchase of 90 days or less to be cash equivalents.  The fair value of the money market funds, included in cash equivalents, at December 31, 2014 and 2013, was classified as Level 1, as amounts were based on quoted prices available in active markets for identical investments as of the reporting date.  Investments with original maturities of greater than 90 days, but with remaining maturities of less than one year are classified as short-term, and investments with remaining maturities of 365 days or greater are classified as long-term.  All investments are classified as available-for-sale and reported at fair value based on market quotes, and unrealized gains or losses on these investments are recorded in stockholders’ equity and reported in comprehensive income.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Management of credit risk

Onvia is subject to concentration of credit risk, primarily from its investments and customer contracts.  Onvia manages its credit risk for investments by purchasing investment-grade securities and diversifying its investment portfolio among issuers and maturities.  Currently, the Company invests primarily in FDIC insured or government backed funds and securities to mitigate the credit risk associated with its investment portfolio.  The Company manages credit risks on customer contracts by adhering to common underwriting practices.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and equipment

Equipment and leasehold improvements are stated at cost, net of accumulated depreciation.  Depreciation expense on software, furniture, and equipment is recorded using the straight-line method over estimated useful lives of three to five years.  Leasehold improvements are depreciated over the shorter of their useful lives or the remaining term of the underlying lease.

The Company periodically evaluates its long-lived assets for impairment.  An impairment loss would be recognized for assets to be disposed of or held-for-use when the carrying amount of an asset is deemed to not be recoverable.  If events or circumstances indicate that any of the Company’s long-lived assets might be impaired, the Company analyzes the estimated undiscounted future cash flows to be generated from the applicable asset.  In addition, the Company records an impairment loss to the extent that the carrying value of the asset exceeds the fair value of the asset.  Fair value is generally determined using an estimate of discounted future net cash flows from operating activities or upon disposal of the asset.  No assets were impaired during the years ended December 31, 2014 or 2013.

Internal Use Software, Policy [Policy Text Block]

Internal use software

All qualifying costs related to the development of internal use software, other than those incurred during the application development stage, are expensed as incurred.  Costs incurred during the application development stage are required to be capitalized and amortized over the estimated useful life of the software.  Capitalized software costs are amortized on a straight-line basis over their expected economic lives, typically 3 to 5 years.  The amount of costs capitalized within any period is dependent on the nature of software development activities and projects in each period.

Onvia periodically evaluates the remaining useful lives of internal use software and will record an abandonment if management determines that all or a portion of the asset will no longer be used, or will adjust the remaining useful life to reflect revised estimates for impairment as described above under “Property and equipment.”  In addition, if the carrying value of the software exceeds the estimated future cash flows, an impairment will be recorded to reduce the carrying value to the expected realizable value.  No assets were impaired during the years ended December 31, 2014 or 2013.

Income Tax, Policy [Policy Text Block]

Income taxes

Onvia accounts for income taxes using the asset and liability method.  Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and for net operating loss, or NOL, carryforwards.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The deferred tax asset has been reduced by a valuation allowance that reduces the amount of our deferred tax asset to a level that is more-than-likely-than-not to be recognized.  In determining the amount of the valuation allowance the Company considers whether it is more likely that some portion or all of the net deferred tax assets will not be realized.  In particular, the Company considers its three-year earnings trend to determine if it has generated cumulative net income or net losses over that period, which the accounting guidance considers significant evidence to evaluate in determining the existence and amount of any valuation allowance.  Onvia also considers positive evidence, such as improving trends in the leading indicators of revenue growth to evaluate the likelihood of generating taxable net income in the future.  The ultimate realization of net deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are expected to be deductible.  The Company will continue to review the estimate of future taxable income and will adjust the valuation allowance accordingly as new information becomes available.

Treasury Stock [Policy Text Block]

Treasury stock

Onvia accounts for treasury stock using the cost method.  In April 2013, Onvia repurchased 1,242,781 shares of common stock as discussed in Note 13. As of December 31, 2014, the Company held 1,242,807 shares of treasury stock with a cost basis of $4,397,803.  The Company holds the treasury shares to fund matching contributions to its 401K retirement plan for employee contributions.  As discussed in Note 11, no treasury shares were used to fund matching contributions for 2014 or 2013 employee contributions.

Comprehensive Income, Policy [Policy Text Block]

Other comprehensive income or loss

Comprehensive income or loss is the change in equity from transactions and other events and circumstances other than those resulting from investments by and distributions to owners.  Other comprehensive income or loss for Onvia consists of unrealized gains and losses on available-for-sale investments.

Earnings Per Share, Policy [Policy Text Block]

Net income or loss per share

Basic income or loss per share is calculated by dividing net income or loss for the period by the weighted average shares of common stock outstanding for the period.  Diluted earnings per share is calculated by dividing net income or loss per share by the weighted average common stock outstanding for the period plus dilutive potential common shares using the treasury stock method.  In periods with a net loss, basic and diluted earnings per share are identical because inclusion of potentially dilutive common shares would be antidilutive.

For the year ended December 31, 2014, options to purchase 1,075,924 shares of common stock were not included in the calculation because the effect would have been anti-dilutive.  For the year ended December 31, 2013, options to purchase 454,684 shares of common stock were not included in the calculation because the effect would have been anti-dilutive.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance for revenue from contracts with customers, which provides a single comprehensive revenue recognition model to apply in determining how and when to recognize revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. When applying the new revenue model to contracts with customers the guidance requires five steps to be applied, which include: 1) identify the contract(s) with a customer, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also requires both quantitative and qualitative disclosures, which are more comprehensive than existing revenue standards. The disclosures are intended to enable financial statement users to understand the nature, timing and uncertainty of revenue and the related cash flow. This guidance will be effective for Onvia in the first quarter of 2017 and early adoption is not permitted. The Company is currently assessing the impact the guidance will have upon adoption.

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Note 13 - Stock Repurchase

12 Months Ended

Dec. 31, 2014

Disclosure Text Block [Abstract]

Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]

Note 13: Stock Repurchase

On April 2, 2013, Onvia entered into a stock purchase agreement with Symphony Technology Group, LLC and certain of its affiliates (the “Repurchase Stockholders”) to repurchase shares of Onvia’s common stock, par value $0.0001 directly from the Repurchase Stockholders in a private, non-underwritten transaction.  Under the terms of the agreement, Onvia has repurchased from the Repurchase Stockholders 1,242,781 shares of common stock at a price of $3.50 per share for a total purchase price of approximately $4.3 million, excluding transaction fees.  These shares were repurchased at discount to market price.  This transaction does not have any impact on Onvia’s Section 382 tax benefits preservation plan.

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Note 9 - Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 9:                      Income Taxes

The amount of current and deferred income tax expense included in the financial statements for the years ended December 31 was as follows:

	2014		2013
Deferred Tax Expense	$	-	$	2,175,000
Total Income Tax Expense	$	-	$	2,175,000

The following table provides reconciliation between the statutory income tax rate and the Company’s effective tax rate for the years ended December 31:

	2014			2013
Tax expense at statutory rate		-34.0	%		34.0	%
Stock-based compensation		56.2	%		-9.1	%
Amortization of goodwill		-2.3	%		3.1	%
Meals and entertainment		2.5	%		-2.6	%
Deferred tax asset adjustment		2.1	%		0.0	%
Valuation allowance		-24.5	%		-421.2	%
Net tax expense		0.0	%		-395.8	%

Onvia’s deferred tax asset consists of the following as of December 31:

	2014			2013
Deferred Tax Assets
Net operating loss carryforward	$	25,843,966		$	24,809,857
Accrued expenses not currently deductible		775,414			1,154,419
Depreciation different for tax purposes		63,928			1,000,035
Deferred Tax Asset Total		26,683,308			26,964,311
Deferred Tax Liability
Prepaid expenses		(211,177	)		(186,698	)
Depreciation different for tax purposes		(1,720,184	)		(1,847,155	)
Deferred Tax Liabilities Total		(1,931,361	)		(2,033,853	)
Net deferred tax asset before valuation allowance		24,751,947			24,930,458
Valuation allowance		(24,751,947	)		(24,930,458	)
Net deferred tax asset after valuation allowance	$	-		$	-

The Company had approximately $24.8 million in net deferred tax assets, before valuation allowance, as of       December 31, 2014.  Realization of net deferred tax assets ultimately depends on the existence of sufficient taxable income, including taxable income in prior carryback years, as well as future taxable income.  Management regularly reviews the net deferred tax assets for usability based on a history of earnings, expectations for future earnings and expected timing of reversals of temporary differences.  In particular, the Company considers its three-year earnings trend to determine if it has generated cumulative net income or net losses over that period, which the accounting guidance considers significant evidence to evaluate in determining the existence and amount of any valuation allowance.

The Company has not consistently generated net income and has generated net losses over the last nine quarters through December 31, 2014. Based upon the analysis of all positive and negative evidence, it is management’s current judgment that due to the recent pattern of net losses, the Company has concluded that its net deferred tax assets are not more-likely-than-not to be realized.  Therefore, the Company has maintained its valuation allowance at 100% of its net deferred tax assets as of December 31, 2014.  During the year ended December 31, 2013, the Company increased its valuation allowance to be 100% of its net deferred tax assets which resulted in $2.2 million being recognized as a provision for income taxes in 2013.

The Company may reverse all or a portion of our valuation allowance in the future if it is determined that realization of these benefits is more likely than not.  The Company will continue to evaluate the appropriateness of its valuation allowance in consideration of future operating results.

As of December 31, 2014 and 2013 Onvia had available U.S. federal net operating losses in the amount of $76,011,666 and $72,970,169 which expire at various times from 2022 through 2033.

Utilization of the NOL carryforwards may be subject to a substantial annual limitation due to an ownership change that could occur in the future provided by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”).  These ownership changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable income and tax, respectively.  In general, an ownership change, as defined by Section 382 of the Code, results from transactions increasing the ownership of certain stockholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period.

Onvia performed a Section 382 analysis and identified an ownership change that occurred in September 2001.  The Company believes that, as a result of the annual Section 382 limitation that resulted from the change in control that occurred in September 2001, it will permanently be unable to use a significant portion of our NOL carryforwards that arose before the change in control to offset future taxable income.  As such, the Company reduced its NOL deferred tax asset by the amount of NOLs that it will permanently be unable to utilize, which in turn resulted in a reduction to its valuation allowance.

Onvia files an income tax return in the United States.  The Company is no longer subject to federal income tax examination for years before 2010.  Onvia also has available NOLs generated in tax years 2001 to 2010 and 2013 to 2014 that, if used, could be subject to examination by taxing authorities.

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Note 13 - Stock Repurchase (Details) (USD $)	1 Months Ended	12 Months Ended	21 Months Ended
	Apr. 30, 2013	Dec. 31, 2013	Dec. 31, 2014	Apr. 02, 2013
Note 13 - Stock Repurchase (Details) [Line Items]
Common Stock, Par or Stated Value Per Share		$ 0.0001	$ 0.0001
Stock Repurchased During Period, Shares (in Shares)	1,242,781		1,242,781
Stock Repurchased During Period Price Per Share			$ 3.50
Stock Repurchased During Period, Value (in Dollars)		$ 4,397,798
Par Value Of Shares To Be Repurchased [Member]
Note 13 - Stock Repurchase (Details) [Line Items]
Common Stock, Par or Stated Value Per Share				$ 0.0001
Repurchase Stockholders [Member]
Note 13 - Stock Repurchase (Details) [Line Items]
Stock Repurchased During Period, Value (in Dollars)			$ 4,300,000

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Note 7 - Internal Use Software

12 Months Ended

Dec. 31, 2014

Internal Use Software Disclosure [Abstract]

Internal Use Software Disclosure [Text Block]

Note 7: Internal Use Software

Onvia capitalizes qualifying computer software costs incurred during the “application development stage” and other costs as permitted.  Amortization of these costs begins once the product is ready for its intended use.  These costs are amortized on a straight-line basis over the estimated useful life of the product, typically 3 to 5 years.  The amount of costs capitalized within any period is dependent on the nature of software development activities and projects in each period.

Onvia periodically evaluates the remaining useful lives and carrying values of internal use software.  If management determines that all or a portion of the asset will no longer be used, or the estimated remaining useful life differs from existing estimates, an abandonment will be recorded to reduce the carrying value or adjust the remaining useful life to reflect revised estimates.  In addition, if the carrying value of the software exceeds the estimated future cash flows, an impairment will be recorded to reduce the carrying value to the expected realizable value.

The following table presents a rollforward of capitalized internal use software for the years ended December 31, 2014:

	Balance at December 31, 2013			Additions			Balance at December 31, 2014
Capitalized Internal Use Software	$	15,103,914		$	2,003,192		$	17,107,106
Accumulated amortization		(9,671,106	)		(2,376,635	)		(12,047,741	)
	$	5,432,808		$	(373,443	)	$	5,059,365

Amortization expense related to capitalized software was $2.4 million and $2.3 million for the years ended December 31, 2014 and 2013, respectively.

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Note 8 - Accrued Expenses

12 Months Ended

Dec. 31, 2014

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

Note 8: Accrued Expenses

Accrued expenses consist of the following at December 31:

	2014		2013
Payroll and related liabilities	$	965,558	$	714,481
Taxes payable and other		132,012		245,171
	$	1,097,570	$	959,652

  Other current liabilities consist of the following at December 31:

	2014		2013
Obligations under capital leases, current portion	$	24,039	$	17,701
Deferred rent, current portion		57,555		37,201
Other current liabilities		-		189,158
	$	81,594	$	244,060

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Note 10 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 10: Commitments and Contingencies

Operating leases

During the first quarter of 2013, Onvia entered into the first amendment to lease agreement for its corporate offices located in Seattle, Washington.  The amendment, among other things, extends the lease term for an additional sixty-five (65) months with a new expiration date of April 30, 2021.  In addition, the amendment reduces the rental area of the premises to approximately 29,606 square feet, after surrender of 5,394 square feet after the execution of the amendment.  Onvia has an additional right to surrender up to 8,898 square feet on or after November 30, 2015 in exchange for reimbursement of unamortized landlord incentives.  In addition to base rent, Onvia will be responsible for its proportionate share of annual incremental increases in the building’s operating expenses, insurance, and real estate taxes over the 2013 base year.  Onvia has a one-time right to terminate the amended lease in its entirety on or after December 1, 2017 in exchange for payment of a significant termination fee.

The office lease contains rent escalation clauses and rent holidays. Rent expense is recorded on a straight-line basis over the lease term with the difference between the rent paid and the straight-line rent expense recorded as a deferred rent liability. Total rent expense associated with real estate operating leases was $769,000 and $760,000 for the years ended December 31, 2014 and 2013, respectively. Onvia also has a non-cancellable operating lease for office equipment, which expires in June 2019.

         Future minimum lease payments required on non-cancellable operating leases are as follows for the years ending December 31:

	Real Estate Operating Leases		Office Equipment Operating Lease		Total Operating Leases
2015	$	759,887	$	19,710	$	779,597
2016		780,241		19,710		799,951
2017		873,377		19,710		893,087
2018		895,582		19,710		915,292
2019		917,786		9,855		927,641
2020 and thereafter		1,260,722		-		1,260,722
	$	5,487,595	$	88,695	$	5,576,290

Capital Leases

In March 2013, Onvia entered into non-cancellable capital leases for phone system server equipment and maintenance related to this equipment.  Remaining future minimum lease payments required on these capital leases are as follows for the years ended December 31:

	Principal		Interest		Total
2015	$	35,494	$	7,463	$	42,957
2016		37,719		5,238		42,957
2017		40,096		2,861		42,957
2018		24,561		496		25,057
	$	137,870	$	16,058	$	153,928

Purchase Obligations

Onvia has non-cancellable purchase obligations for software development and license agreements, co-location hosting arrangements, telecom agreements, marketing agreements and third-party content agreements.  The agreements expire in dates ranging from 2015 to 2017.  Future required payments under these non-cancellable agreements are as follows for the years ending December 31:

	Purchase Obligations
2015	$	1,225,489
2016		752,736
2017		15,980
	$	1,994,205

Legal Proceedings

From time to time, legal proceedings may arise in the ordinary course of business.  Although the outcomes of legal proceedings are inherently difficult to predict, we are not currently involved in any legal proceeding in which the outcome, in our judgment based on information currently available, is likely to have a material adverse effect on our business or financial position.

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Schedule II - Valuation and Qualifying Accounts (Details) - Valuation and Qualifying Accounts (USD $)	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013
Allowance for Doubtful Accounts [Member]
Allowance for doubtful accounts
Balances at Beginning of Period	$ 24,751		$ 41,548
Charged to Costs and Expenses	30,502		44,050
Deductions	(12,762)	[1]	(60,847)	[1]
Balances at End of Period	42,491		24,751
Valuation Allowance of Deferred Tax Assets [Member]
Allowance for doubtful accounts
Balances at Beginning of Period	24,930	[2]	22,625	[2]
Charged to Costs and Expenses		[2]	2,305	[2]
Deductions	(178)	[2]		[2]
Balances at End of Period	$ 24,752	[2]	$ 24,930	[2]

[1] Uncollectible accounts written off, net of recoveries.

[2] The additions to and reductions in the deferred tax assets-valuation allowance represent the portion of a deferred tax asset for which either: (i) it is more likely than not that a tax benefit will not be realized, or (ii) it is more likely than not a tax benefit will be realized.

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Note 2 - Stock-Based Compensation and Stock Option Activity (Details) (USD $)	12 Months Ended		3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2011	May 31, 2000
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	889,592	1,133,744
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%
Share Price (in Dollars per share)	$ 5.02	$ 4.96
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share)	$ 2.01	$ 1.91
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars)	$ 36,567	$ 59,646
Proceeds from Stock Options Exercised (in Dollars)	242,000	122,000
Initial Option Grants [Member] | Onvia 2000 Directors Stock Option Plan [Member]
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Annual Option Grants [Member] | Onvia 2000 Directors Stock Option Plan [Member]
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
In-The-Money Options [Member]
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	689,875
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	482,142
Employee Stock Option [Member]
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars)	$ 136,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 58 days
Restricted Stock Units (RSUs) [Member]
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
RestrictedStock Units Released In Shares Net of Shares Paid For Tax Withholding		10,264
Shares Paid for Tax Withholding for Share Based Compensation		3,690
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	0
Vesting One Year From Grant Date and Ratable Vesting Thereafter [Member] | Minimum [Member] | Onvia 2008 Equity Incentive Plan [Member]
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	20.00%
Vesting One Year From Grant Date and Ratable Vesting Thereafter [Member] | Maximum [Member] | Onvia 2008 Equity Incentive Plan [Member]
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	25.00%
Each Year for Four Years on the Anniversary of the Date of Grant [Member] | Onvia 2000 Directors Stock Option Plan [Member]
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) [Line Items]
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage	25.00%
Non-Employee Director [Member] | Onvia 2000 Directors Stock Option Plan [Member]
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	1,000
Onvia 2008 Equity Incentive Plan [Member]
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) [Line Items]
ShareBasedCompensationArrangementByShareBasedPaymentAwardPeriodForAwardGrants	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	100.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	725,175
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized		875,126
Employee Stock Purchase Plan [Member]
Note 2 - Stock-Based Compensation and Stock Option Activity (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	60,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	472,624			60,000
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum	1.00%

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Note 9 - Income Taxes (Details) - Income Tax (Benefit) / Expense (USD $)	3 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2013
Income Tax (Benefit) / Expense [Abstract]
Deferred Tax Expense		$ 2,175,000
Total Income Tax Expense	$ 2,175,000	$ 2,175,000

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Selected Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information [Text Block]

Selected Quarterly Financial Information (Unaudited)

The following tables summarize the quarterly financial data for the years ended December 31, 2014 and 2013:

	Three Months Ended
	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
	(in thousands, except per share amounts)
Historical Consolidated Statements of Operations and Comprehensive Income Data:
Revenue	$	5,616		$	5,567		$	5,700		$	5,742
Gross margin		4,684			4,612			4,794			4,803
Non-cash stock-based compensation		54			30			46			22
Total operating expenses		4,776			4,731			4,838			5,286
Loss from operations		(92	)		(119	)		(44	)		(483	)
Tax provision /(benefit)		-			-			-			-
Net loss	$	(89	)	$	(117	)	$	(42	)	$	(479	)
Unrealized gain / (loss) on available-for-sale investments		1			(1	)		(1	)		1
Comprehensive loss		(88	)		(118	)		(43	)		(478	)
Basic and diluted net loss per common share	$	(0.01	)	$	(0.02	)	$	(0.01	)	$	(0.06	)
Basic and diluted weighted average shares outstanding		7,352			7,395			7,396			7,399

	Three Months Ended
		March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013
	(in thousands, except per share amounts)
Historical Consolidated Statements of Operations and Comprehensive Income Data:
Revenue	$	5,498		$	5,504		$	5,442		$	5,575
Gross margin		4,575			4,538			4,481			4,676
Non-cash stock-based compensation		73			65			66			74
Total operating expenses		4,704			4,632			4,582			4,925
Loss from operations		(129	)		(94	)		(101	)		(249	)
Provision for income tax		-			-			-			2,175
Net loss	$	(120	)	$	(88	)	$	(98	)	$	(2,420	)
Unrealized (loss) / gain on available-for-sale investments		-			(2	)		1			-
Comprehensive loss		(120	)		(90	)		(97	)		(2,420	)
Basic and diluted net loss per common share	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.33	)
Basic and diluted weighted average shares outstanding		8,554			7,367			7,329			7,333

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Note 4 - Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure Text Block Supplement [Abstract]

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]

	2014		2013
Prepaid expenses	$	672,957	$	525,739
Interest receivable		4,351		14,027
Other receivables		4,932		30,332
	$	682,240	$	570,098

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Note 8 - Accrued Expenses (Details) - Other Current Liabilities (USD $)	Dec. 31, 2014	Dec. 31, 2013
Other Current Liabilities [Abstract]
Obligations under capital leases, current portion	$ 24,039	$ 17,701
Deferred rent, current portion	57,555	37,201
Other current liabilities		189,158
	$ 81,594	$ 244,060

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Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments Classified as Available-For-Sale Stated At Fair Value (USD $)	Dec. 31, 2014	Dec. 31, 2013
Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments Classified as Available-For-Sale Stated At Fair Value [Line Items]
Available for sale securities	$ 6,436,289	$ 5,553,850
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments Classified as Available-For-Sale Stated At Fair Value [Line Items]
Available for sale securities	157,848	2,252,176
US Government Agencies Debt Securities [Member]
Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments Classified as Available-For-Sale Stated At Fair Value [Line Items]
Available for sale securities	157,848	2,252,176
Certificate Of Deposit [Member] | Fair Value, Inputs, Level 2 [Member]
Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments Classified as Available-For-Sale Stated At Fair Value [Line Items]
Available for sale securities	6,278,441	3,301,674
Certificate Of Deposit [Member]
Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments Classified as Available-For-Sale Stated At Fair Value [Line Items]
Available for sale securities	6,278,441	3,301,674
Fair Value, Inputs, Level 2 [Member]
Note 3 - Short-Term and Long-Term Investments (Details) - Short-term Investments Classified as Available-For-Sale Stated At Fair Value [Line Items]
Available for sale securities	$ 6,436,289	$ 5,553,850

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Consolidated Statements of Cash Flows (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (727,279)	$ (2,724,575)
Depreciation and amortization	3,091,441	3,051,283
Idle lease accrual		(73,571)
Stock-based compensation	151,778	277,596
Deferred taxes		2,175,000
Change in operating assets and liabilities:
Accounts receivable	(402,500)	(54,947)
Prepaid expenses and other assets	(119,688)	(10,967)
Accounts payable	109,449	2,335
Accrued expenses	137,918	168,632
Unearned revenue	463,124	156,517
Deferred rent	24,629	55,038
Net cash provided by operating activities	2,728,872	3,022,341
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment	(302,220)	(847,378)
Additions to internal use software	(2,093,085)	(2,158,906)
Purchases of investments	(11,731,313)	(10,495,645)
Sales of investments	1,570,016	3,255,517
Maturities of investments	9,278,860	10,210,229
Security deposits	(19)	(150,369)
Net cash used in investing activities	(3,277,761)	(186,552)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on capital lease obligations	(189,513)	(375,348)
Repurchase of stock		(4,397,674)
Proceeds from exercise of stock options and purchases under employee stock purchase plan	242,336	121,698
Net cash provided by / (used in) financing activities	52,823	(4,651,324)
Net decrease in cash and cash equivalents	(496,066)	(1,815,535)
Cash and cash equivalents, beginning of period	2,072,865	3,888,400
Cash and cash equivalents, end of period	1,576,799	2,072,865
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Unrealized loss on available-for-sale investments	(406)	(1,437)
Purchases under capital lease obligations	(6,134)	(117,354)
Property and equipment additions in accounts payable	(48,995)	(28,978)
Internal use software additions in accounts payable	$ (135,916)	$ (225,809)

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Note 4 - Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2014

Disclosure Text Block Supplement [Abstract]

Other Current Assets [Text Block]

Note 4: Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following at December 31:

	2014		2013
Prepaid expenses	$	672,957	$	525,739
Interest receivable		4,351		14,027
Other receivables		4,932		30,332
	$	682,240	$	570,098

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Note 11 - Employee Retirement Plan (Details) (USD $)	1 Months Ended		12 Months Ended
	Mar. 31, 2009	Jan. 31, 2006	Dec. 31, 2014	Dec. 31, 2013
Note 11 - Employee Retirement Plan (Details) [Line Items]
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent		25.00%
Defined Contribution Period In Years		4 years
Treasury Stock, Number of Shares Held (in Shares)			1,242,807
Stock Issued During Period, Shares, Treasury Stock Reissued (in Shares)	8,055
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay			10.00%	10.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount (in Dollars)			$ 51,000	$ 29,000
Non Cash Stock Based Compensation [Member]
Note 11 - Employee Retirement Plan (Details) [Line Items]
Defined Contribution Plan, Cost Recognized (in Dollars)	82,000
Maximum Of All Eligible Employee Contributions [Member]
Note 11 - Employee Retirement Plan (Details) [Line Items]
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent		6.00%

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Note 6 - Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

	2014			2013
Computer equipment	$	3,675,759		$	3,575,819
Software		1,855,785			1,837,536
Furniture and fixtures		108,539			107,113
Leasehold improvements		882,602			882,602
Total cost basis		6,522,685			6,403,070
Less accumulated depreciation and amortization		(5,165,002	)		(4,630,058	)
Net book value	$	1,357,683		$	1,773,012

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Note 2 - Stock-Based Compensation and Stock Option Activity (Details) - Stock Option Activity Under Equity Incentive Plan (USD $)	12 Months Ended
	Dec. 31, 2014
Stock Option Activity Under Equity Incentive Plan [Abstract]
Total options outstanding at January 1, 2014	1,133,744
Total options outstanding at January 1, 2014	$ 4.68
Total options outstanding at December 31, 2014	889,592
Total options outstanding at December 31, 2014	$ 4.20
Options exercisable at December 31, 2014	670,737
Options exercisable at December 31, 2014	$ 4.38
Options exercisable at December 31, 2014	4 years 277 days
Options exercisable at December 31, 2014	$ 849,986	[1]
Options vested and expected to vest at December 31, 2014	874,787
Options vested and expected to vest at December 31, 2014	$ 4.21
Options vested and expected to vest at December 31, 2014	5 years 160 days
Options vested and expected to vest at December 31, 2014	$ 1,134,222	[1]
Options granted	56,000
Options granted	$ 4.64
Options exercised	(45,791)
Options exercised	$ 4.47
Options forfeited and cancelled	(254,361)
Options forfeited and cancelled	$ 6.36

[1] Aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of Onvia's common stock of $5.02 at December 31, 2014 for options that were in-the-money at December 31, 2014. The number of in-the-money options outstanding and exercisable at December 31, 2014 was 689,875 and 482,142 respectively.

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Note 14 - Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2014

Supplemental Cash Flow Elements [Abstract]

Cash Flow, Supplemental Disclosures [Text Block]

Note 14: Supplemental Cash Flow Information

Interest expense paid on capital leases during the years ended December 31, 2014 and 2013 was $9,900 and $7,600, respectively.