10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

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

For the quarterly period ended:June 30, 2016

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:000-19301

iSign Solutions Inc.

(Exact name of registrant as specified in its charter)

Delaware	94-2790442
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

   275 Shoreline Drive, Suite 500, Redwood Shores, CA  94065-1413

          (Address of principal executive offices)                  (Zip Code)

(650) 802-7888

Registrant's telephone number, including area code

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No

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

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 accelerated filer non-accelerated filer   X Smaller reporting Company

Indicate by check mark whether the registrant is a shell company (as defined in Section 12b-2 of the exchange Act)

Yes No X

Number of shares outstanding of the issuer's Common Stock, as of August 15, 2016: 5,498,246

INDEX

	Page No.
PART I.  FINANCIAL INFORMATION
Item 1.  Financial Statements
Condensed Consolidated Balance Sheets at June 30, 2016 (unaudited) and December 31, 2015	3
Condensed Consolidated Statements of Operations for the Three and Six-Month Periods Ended June 30, 2016 and 2015 (unaudited)	4
Condensed Consolidated Statements of Cash Flows for the Six-Month Periods Ended June 30, 2016 and 2015 (unaudited)	5
Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.  Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.  Controls and Procedures	21
PART II.  OTHER INFORMATION
Item 1.    Legal Proceedings	21
Item 1A. Risk Factors	22
Item 2.    Unregistered Sale of Securities and Use of Proceeds	22
Item 3.    Defaults Upon Senior Securities	22
Item 4.    Mine Safety Disclosures	22
Item 5.    Other Information	22
Item 6.    Exhibits
(a) Exhibits	22
Signatures	26

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PART I–FINANCIAL INFORMATION

Item 1.  Financial Statements

iSign Solutions Inc.

Condensed Consolidated Balance Sheets

 (In thousands)

	June 30,			December 31,
	2016			2015
Assets	(Unaudited)
Current assets:
Cash and cash equivalents	$	455		$	846
Accounts receivable, net of allowance of $30 at June 30, 2016 and $22 at December 31, 2015, respectively		196			94
Prepaid expenses and other current assets		55			372
Total current assets		706			1,312
Property and equipment, net		38			44
Intangible assets, net		430			591
Other assets		29			29
Total assets	$	1,203		$	1,976
Liabilities and Deficit
Current liabilities:
Accounts payable	$	1,331		$	787
Short-term notes payable		190			991
Accrued compensation		297			263
Other accrued liabilities		410			615
Deferred revenue		339			384
Short-term capital lease		3			−
Derivative liability		156			330
Total current liabilities		2,726			3,370
Deferred revenue long-term		385			455
Long-term capital lease		11			−
Other long-term liabilities		14			21
Total liabilities		3,136			3,846
Commitments and contingencies
Equity (deficit):
Series A-1 Preferred Stock		−			947
Series B Preferred Stock		−			11,653
Series C Preferred Stock		−			6,069
Series D-1 Preferred Stock		−			6,866
Series D-2 Preferred Stock		−			5,272
Common Stock		55			2
Treasury shares		(325	)		(325	)
Additional paid-in capital		128,282			95,312
Accumulated deficit		(129,395	)		(127,116	)
Accumulated other comprehensive loss		(14	)		(14	)
Total iSign stockholders' deficit		(1,397	)		(1,334	)
Non-controlling interest		(536	)		(536	)
Total deficit		(1,933	)		(1,870	)
Total liabilities and deficit	$	1,203		$	1,976

See accompanying notes to these Condensed Consolidated Financial Statements

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iSign Solutions Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Revenue:
Product	$	164		$	153		$	224		$	384
Maintenance		192			214			409			430
Total revenue		356			367			633			814
Operating costs and expenses:
Cost of sales:
Product		17			34			54			145
Maintenance		85			61			218			73
Research and development		367			498			685			1,021
Sales and marketing		127			242			329			540
General and administrative		613			561			1,342			1,082
Total operating costs and expenses		1,209			1,396			2,628			2,861
Loss from operations		(853	)		(1,029	)		(1,995	)		(2,047	)
Other expense, net		(16	)		−			(13	)		−
Interest expense:
Related party		(30	)		−			(81	)		−
Other		(38	)		(1	)		(98	)		(1	)
Amortization of debt discount:
Related party		(34	)		−			(56	)		−
Other		(127	)		−			(210	)		−
Gain on derivative liability		149			1			174			17
Net loss		(949	)		(1,029	)		(2,279	)		(2,031	)
Accretion of beneficial conversion feature: Preferred stock:
Related party		−			−			(115	)		(458	)
Other		−			−			(130	)		(69	)
Preferred stock dividends:
Related party		(226	)		(391	)		(646	)		(746	)
Other		(233	)		(394	)		(667	)		(770	)
Net loss attributable to common stockholders	$	(1,408	)	$	(1,814	)	$	(3,837	)	$	(4,074	)
Basic and diluted net loss per common share	$	(0.53	)	$	(9.68	)	$	(2.70	)	$	(21.73	)
Weighted average common shares outstanding, basic and diluted		2,636			187			1,420			187

See accompanying notes to these Condensed Consolidated Financial Statements

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iSign Solutions Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

	Six Months Ended June 30,
	2016			2015
Cash flows from operating activities:
Net loss	$	(2,279	)	$	(2,031	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		183			178
Debt discount amortization		266			−
Stock-based compensation		106			371
Gain on derivative liability		(174	)		(17	)
Changes in operating assets and liabilities:
Accounts receivable, net		(102	)		(34	)
Prepaid expenses and other assets		317			37
Accounts payable		544			(5	)
Accrued compensation		34			(25	)
Other accrued and long-term liabilities		405			34
Deferred revenue		(115	)		(64	)
Net cash used in operating  activities		(815	)		(1,556	)
Cash flows from investing activities:
Acquisition of property and equipment		−			(10	)
Net cash used in investing  activities		−			(10	)
Cash flows from financing activities:
Proceeds from issuance of Series D preferred stock, net ofissuance costs of $33		−			1,200
Proceeds from issuance of common stock and warrants, net ofoffering costs of $780		424			−
Net cash provided by financing activities		424			1,200
Net decrease in cash and cash equivalents		(391	)		(366	)
Cash and cash equivalents at beginning of period		846			775
Cash and cash equivalents at end of period	$	455		$	409

See accompanying notes to these Condensed Consolidated Financial Statements

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iSign Solutions Inc.

Condensed Consolidated Statements of Cash Flows (Continued)

(Unaudited)

(In thousands)

	Six Months Ended June 30,
	2016		2015
Supplementary disclosure of cash flow information
Interest paid	$	3	$	1
Income taxes paid	$	−	$	−
Non-cash financing and investing transactions:
Acquisition of property and equipment through capital lease	$	15	$	−
Conversion of convertible notes plus accrued interest into 683shares of Common Stock	$	1,188	$	−
Conversion of deferred compensation plus accrued interest into286 shares of Common Stock	$	498	$	−
Dividends on Preferred Stock	$	1,313	$	1,516
Accretion of beneficial conversion feature on issuance of convertible Preferred Stock	$	−	$	498
Accretion of beneficial conversion feature on issuance of Preferred Stock dividends	$	245	$	29

See accompanying notes to these Condensed Consolidated Financial Statements

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iSign Solutions Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, except per share amounts)

1. Nature of Business and Summary of Significant Accounting Policies

Nature of Business

On January 21, 2016, iSign Solutions Inc. (the "Company" or "iSign") filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation (the "Certificate of Amendment") with the Secretary of State of the State of Delaware to effect a 1-for-1,250 reverse split of the Company's outstanding shares of common stock.  The reverse split became effective on January 22, 2016. The information with respect to common stock for the period ended June 30, 2015 has been retroactively restated to give effect to the 1-for-1,250 reverse split.

iSign Solutions Inc. and its subsidiary is a leading supplier of digital transaction management (DTM) software enabling the paperless, secure and cost-effective management and authentication of document-based transactions. iSign's solutions encompass a wide array of functionality and services, including electronic signatures, simple-to-complex workflow management and various options for biometric authentication. These solutions are available across virtually all enterprise, desktop and mobile environments as a seamlessly integrated platform for both ad-hoc and fully automated transactions. iSign's platform can be deployed both on premise and as a cloud-based ("SaaS") service, with the ability to easily transition between deployment models. The Company is headquartered in Redwood Shores, California. The Company's products include SignatureOne® Ceremony™ Server, the iSign® suite of products and services, including iSign® Enterprise and iSign® Console™, and Sign-it® programs.

Basis of Presentation

The financial information contained herein should be read in conjunction with the Company's consolidated audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2015.

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements included in this quarterly report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for a fair presentation of its financial position at the dates presented and the Company's results of operations and cash flows for the periods presented. The Company's interim results are not necessarily indicative of the results to be expected for the entire year.

Going Concern

The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant cumulative losses since its inception and, at June 30, 2016, the Company's accumulated deficit was $129,395. The Company has primarily met its working capital needs through the sale of debt and equity securities. As of June 30, 2016, the Company's cash balance was $455. These factors raise substantial doubt about the Company's ability to continue as a going concern.

There can be no assurance that the Company will be successful in securing adequate capital resources to fund planned operations or that any additional funds will be available to the Company when needed, or if available, will be available on favorable terms or in amounts required by the Company. If the Company is unable to obtain adequate capital resources to fund operations, it may be required to delay, scale back or eliminate some or all of its operations, which may have a material adverse effect on the Company's business, results of operations and ability to operate as a going concern. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

1. Nature of Business and Summary of Significant Accounting Policies (continued)

Accounting Changes and Recent Accounting Pronouncements

In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 requires all financial assets and liabilities not accounted for under the equity method to be measured at fair value with the changes in fair value recognized in net income. The amendments in this update also require an entity to separately present in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this update supersede the requirement to disclose the methods and significant assumptions used in calculating the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. Early adoption is not permitted except for the comprehensive income presentation requirement, and the updated guidance requires a prospective application with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The guidance is effective for annual periods after December 15, 2017, and we are currently in the process of evaluating the impact of this new guidance.

In February  2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) 2016, Leases (Topic 842) intended to improve financial reporting about leasing transactions which requires companies to report capital and operating leases with a term of 12 Months or longer on their balance sheets. Disclosure requirements of the leasing arrangement will include qualitative and quantitative information about the amounts recorded in the financial statements. The guidance is effective for annual periods after December 15, 2018, and we are currently in the process of evaluating the impact of this new guidance

In March 2016 the FASB issued ASU No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 provides for simplification involving several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. In addition to these simplifications, ASU 2016-09 also eliminates the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. Early adoption is permitted and the application of the guidance is different for each update included within ASU 2016-09. The guidance is effective for annual periods after December 15, 2016, and we are currently in the process of evaluating the impact of this new guidance.

In May 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ASU 2016-12 provides for improvements and practical expedients for specific areas of Topic 606. In April 2016, the FASB issued ASU No. 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU 2016-10 provides for clarification of two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance. In March 2016, the FASB issued ASU No. 2016-08Revenue from Contracts with Customers (Topic 606) - Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU No. 2016-08 requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation.

ASUs 2016-12, 2016-10 and 2016-08 allow for companies to choose to apply the standard retrospectively to each prior reporting period presented (full retrospective application) or retrospectively with the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application (modified retrospective application). Each guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. We are currently in the process of evaluating these guidance updates.

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iSign Solutions Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, except per share amounts)

iSign is in the process of evaluating the impact of this new guidance on the Company's financial position, results of operations and cash flows.

2.Concentrations

The following table summarizes accounts receivable and revenue concentrations:

	Accounts Receivable as of June 30,		Total Revenue for the three months ended June 30,		Total Revenue for the six months ended June 30,
	2016	2015	2016	2015	2016	2015
Customer #1	33%	19%	−	−	−	−
Customer #2	−	32%	−	11%	−	13%
Customer #3	−	−	−	10%	11%	19%
Customer #4	48%	31%	38%	28%	27%	16%
Customer #5	−	−	−	−	11%	−
Total concentration	81%	82%	38%	49%	49%	48%

3. Intangible assets

The Company performs an intangible asset impairment analysis at least annually or whenever circumstances or events indicate such assets might be impaired. The Company would recognize an impairment charge in the event the net book value of such assets exceeded the future undiscounted cash flows attributable to such assets.

Management completed an analysis of the Company's intangible assets as of December 31, 2015. Based on that analysis, the Company concluded that no impairment of the carrying value of the intangible assets existed. The Company believes that no events or circumstances changed during the three and six months ended June 30, 2016 that would impact this conclusion.

Amortization of intangible assets costs was $80 and $161 for the three and six-month periods ended June 30, 2016 and $86 and $173 for the three and six-month periods ended June 30, 2015, respectively.

The following table summarizes the patents:

	June 30, 2016							December 31, 2015
	Carrying Amount		Accumulated Amortization			Net Value		Carrying Amount		Accumulated Amortization			Net Value
Amortizable intangible assets:
Technology	$	6,745	$	(6,315	)	$	430	$	6,745	$	(6,154	)	$	591

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iSign Solutions Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, except per share amounts)

4. Net Loss per Share

The Company calculates basic net loss per share based on the weighted average number of shares outstanding, and when applicable, diluted net income per share, which is based on the weighted average number of shares and potential dilutive shares outstanding.

The Company's Preferred Shareholders converted all of their Preferred Stock into shares of Common Stock on May 19, 2016. The following table lists shares and warrants that were excluded from the calculation of diluted earnings per share as the exercise of such options and warrants and the conversion of such preferred shares would be anti-dilutive:

	For the Six Months Ended
	June 30, 2016		June 30, 2015
Stock options		74		85
Warrants		1,756		179
Preferred Stock as if converted
Series A-1 Preferred Stock		−		5
Series B Preferred Stock		−		237
Series C Preferred Stock		−		185
Series D-1 Preferred Stock		−		261
Series D-2 Preferred Stock		−		97

5. Debt

Short-term notes payable:

In the fourth quarter of 2015, the Company entered into unsecured convertible promissory note purchase agreements with investors and affiliates of the Company aggregating $1,268 in cash. Promissory notes with a principal amount of $1,068 plus accrued interest converted into shares of our Common Stock on May 19, 2016. 

The notes and accrued interest converted at a price of $1.74 per share into 683 shares of our Common Stock. The holders of the notes also received 854 warrants to purchase 854 shares of Common Stock. Such warrants have a 5 year term and are exercisable at a price of $2.175 per share. The Company ascribed a relative fair value to the warrants using the Black-Scholes-Merton valuation model of $586, which was charged to additional paid-in capital during the quarter ended June 30, 2016.

One promissory note with a principal amount of $190, net of $10 in unamortized discount, remains outstanding as of June 30, 2016. This note bears interest at a rate of 24% per year and is due on August 25, 2016. The note can be converted into shares of our Common Stock at the holder's option for a period of 60 days after maturity, at a conversion price based upon a Company pre-money valuation of $5,000. Upon such conversion, the holder would also receive cash payments, payable from 3% of the revenue received by the Company from its European customer, not to exceed three times the aggregate principal amount of $200.

6. Derivative Liability

The Company has determined that a contract that would otherwise meet the definition of a derivative but is both (a) indexed to the Company's own stock and (b) classified in stockholders' deficit in the statement of financial position would not be considered a derivative financial instrument. The Company applies a two-step model in determining whether a financial instrument or an embedded feature is indexed to an issuer's own stock and thus able to qualify for the scope exception.

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iSign Solutions Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, except per share amounts)

6. Derivative Liability (continued)

In November and December 2015, the Company entered into unsecured convertible promissory note purchase agreements with investors and affiliates of the Company. The accounting for the unsecured convertible notes, which are convertible into shares of our common stock, requires us to bifurcate the conversion feature and account for it as a derivative liability at the estimated fair value upon issuance.  The Company used a Monte Carlo simulation to value the conversion feature with the following assumptions:

	As of June 30, 2016
Common Stock price	$	1.31
Convertible debt principal amount	$	200
Term (years)		0.32
Expected volatility		108	%
Convertible debt interest rate		24	%
Trials (each trial equals 150,000 iterations)		10
Discount to IPO/next round	Based upon a Company pre-money valuation of $5,000

The fair value framework requires a categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets and liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:

Level 1: Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2: Applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3: Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

There were no financial assets or liabilities measured at fair value, with the exception of cash and cash equivalents (level 1) and the above mentioned derivative liability (level 3) as of June 30, 2016 and December 31, 2015, respectively.

Changes in the fair market value of the Level 3 derivative liability for the six-month periods ended June 30, 2016 and June 30, 2015 are as follows:

	For the Six Months Ended
	June 30, 2016			June 30, 2015
Balance at January 1	$	330		$	−
Net gain on derivative liability		(174	)		−
Balance at June 30	$	156		$	−

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iSign Solutions Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, except per share amounts)

7. Equity (Deficit)

Stock-based compensation expense is based on the estimated grant date fair value of the portion of stock-based payment awards that are ultimately expected to vest during the period. The grant date fair value of stock-based awards to employees and directors is calculated using the Black-Scholes-Merton valuation model.

Forfeitures of stock-based payment awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated average forfeiture rate for the three months ended June 30, 2016 and 2015, was approximately 11.89% and 7.54%, respectively, based on historical data.

Valuation and Expense Information:

The weighted-average fair value of stock-based compensation is based on the Black-Scholes-Merton valuation model. Forfeitures are estimated and it is assumed no dividends will be declared.  The estimated fair value of stock-based compensation awards to employees is amortized using the accrual method over the vesting period of the options. The fair value calculations are based on the following assumptions:

	Six Months Ended June 30, 2016	Six Months Ended June 30, 2015
Risk free interest rate	0.04% - 3.19%	0.04% - 3.73%
Expected life (years)	2.82 – 7.00	3.26 – 6.88
Expected volatility	112.75% - 198.90%	93.63% - 198.38%
Expected dividends	None	None

There were no stock options granted, and no stock options exercised during the three and six months ended June 30, 2016. The Company granted 29 stock options during the three and six months ended June 30, 2015 at a weighted average exercise price of $28.13 per share. There were no stock options exercised during the three and six months ended June 30, 2015.

The following table summarizes the allocation of stock-based compensation expense related to stock option grants for the three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Research and development	$	15	$	47	$	34	$	113
Sales and marketing	$	2	$	34	$	15	$	86
General and administrative	$	19	$	65	$	43	$	145
Director options	$	6	$	12	$	14	$	27
Total stock-based compensation expense	$	42	$	158	$	106	$	371

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iSign Solutions Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, except per share amounts)

7. Equity (deficit) (continued)

A summary of option activity under the Company's plans for the six months ended June 30, 2016 and 2015 is as follows:

	2016									2015
Options	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value		Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding at January 1,		82		$	45.35			$	−		57		$	56.13			$	−
Granted		−		$	−			$	−		29		$	28.13			$	−
Exercised		−		$	−			$	−		−		$	−			$	−
Forfeited or expired		(8	)	$	42.16			$	−		(1	)	$	37.50			$	−
Outstanding at June 30		74		$	45.71		3.65	$	−		85		$	46.75		4.59	$	−
Vested and expected to vest at June 30		72		$	46.22		3.10	$	−		83		$	37.50		3.24	$	−
Exercisable at June 30		58		$	51.10		3.10	$	−		52		$	56.00		3.56	$	−

The following table summarizes significant ranges of outstanding and exercisable options as of June 30, 2016:

		Options Outstanding						Options Exercisable
Range of Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Term (in years)		Weighted Average Exercise Price		Number Outstanding		Weighted Average Exercise Price
$	25.00 – $625.00		74		3.65	$	45.71		58	$	51.10

A summary of the status of the Company's non-vested shares as of June 30, 2016 is as follows:

Non-vested Shares	Shares			Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2016		25		$	28.61
Forfeited		(3	)	$	28.80
Vested		(6	)	$	46.22
Non-vested at June 30, 2016		16		$	26.42

As of June 30, 2016, there was a total of $107 of unrecognized compensation expense related to non-vested stock-based compensation arrangements granted under the plans.  The unrecognized compensation expense is expected to be realized over a weighted average period of 1.7 years.

Sale of Common Stock and Conversion of Preferred Stock, Short-term Debt and Deferred Compensation

On May 19, 2016, the Company closed an underwritten public offering of 690 shares of common stock at a public offering price of $1.74 per share. In addition, the Company sold 345 warrants, at a public offering price of $0.01 per warrant, to purchase shares of Common Stock. The warrants expire on May 18, 2021 and have an exercise price of $2.175 per share.  The Company raised gross cash proceeds of $1,204 before deducting underwriting discounts and commissions and other offering expenses of $780.  As a result of the consummation of the offering, each series of the Company's outstanding preferred stock, including accrued and unpaid dividends through May 19, 2016, were converted into shares of common stock.

- 12 -

iSign Solutions Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, except per share amounts)

7. Equity (Deficit) (continued)

As a result of the Amendments to the Certificates of Designations to all classes of Preferred Stock and pursuant to the terms thereof, the conversion price of the Company's Preferred Stock was reduced. The following table summarizes the change in conversion price, the number of shares outstanding as of the conversion date and the number of Common Stock issued upon conversion of the Preferred Stock.

Class of Preferred Stock	Old Conversion Price		Adjusted Conversion Price		Shares Outstanding at Conversion Date		Common shares issued upon conversion
Series A-1	$	175.00	$	19.44		976		50
Series B	$	54.13	$	12.96		14,042		1,083
Series C	$	28.13	$	9.71		5,702		587
Series D-1	$	28.13	$	7.24		8,386		1,159
Series D-2	$	62.50	$	8.58		6,625		773
Total						35,731		3,652

The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.

In conjunction with the sale of Common Stock, $1,188 of Short-term debt including accrued interest of $120 was converted into 683 shares of the Company's Common Stock. The Company issued 854 warrants with the conversion of the Short–term debt. The Company ascribed a relative fair value of $586 to the warrants using the Black-Scholes-Merton valuation model, which was charged to additional paid-in capital during the quarter ended June 30, 2016.

In addition to the conversion of the Short-term debt, approximately $498 of deferred compensation including accrued interest of $59 was converted into 286 shares of the Company's Common Stock. The Company issued 352 warrants with the conversion of the deferred compensation. The Company ascribed a relative fair value of $244 to the warrants using the Black-Scholes-Merton valuation model, which was charged to additional paid- in capital during the quarter ended June 30, 2016.

The conversion price of the Short-term debt and deferred compensation was $1.74 per share. The warrants expire on May 18, 2021 and have an exercise price of $2.175.

Information with respect to in-kind dividends issued on the Company's Preferred stock for the three and six-month periods ended June 30, 2016 and June 30, 2015 is as follows:

	Dividends								Beneficial Conversion Feature Related to dividends
	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015		2016		2015		2016			2015
Series A-1	$	10	$	17	$	29	$	35	$	−	$	−	$	3	$	−
Series B		182		313		519		615		−		−		73		−
Series C		74		127		211		250		−		−		39		13
Series D-1		108		179		309		324		−		−		78		16
Series D-2		85		149		245		292		−		−		52		−
Total	$	459	$	785	$	1,313	$	1,516	$	−	$	−	$	245	$	29

- 13 -

iSign Solutions Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, except per share amounts)

7. Equity (Deficit) (continued)

Warrants

A summary of the warrant activity for the six months ended June 30 is as follows:

	June 30, 2016				June 30, 2015
	Shares		Weighted Average Exercise Price Per Share		Shares			Weighted Average Exercise Price Per Share
Outstanding at beginning of period		205	$	35.51		171		$	36.13
Issued		1,551	$	2.18		22		$	28.13
Expired		−	$	−		(13	)	$	62.50
Outstanding at end of period		1,756	$	5.27		180		$	34.63
Exercisable at end of period		1,756	$	5.27		180		$	34.63

A summary of the status of the warrants outstanding and exercisable as of June 30, 2016 is as follows:

Number of Warrants		Weighted Average Remaining Life		Weighted Average Exercise Price per share
	14		0.01	$	0.30
	105		0.03	$	2.06
	32		0.01	$	0.51
	54		0.06	$	0.48
	1,551		4.38	$	1.92
	1,756		4.48	$	1.85

- 14 -

iSign Solutions Inc.

FORM 10-Q

(In thousands, except per share amounts)

Forward Looking Statements

Certain statements contained in this quarterly report on Form 10-Q, including, without limitation, statements containing the words "believes", "anticipates", "hopes", "intends", "expects", and other words of similar import, constitute "forward looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors which may cause actual events to differ materially from expectations.  Such factors include those set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, including the following:

· Technological, engineering, manufacturing, quality control or other circumstances that could delay the sale or shipment of products;

· Economic, business, market and competitive conditions in the software industry and technological innovations that could affect the Company's business;

· The Company's inability to protect its trade secrets or other proprietary rights, operate without infringing upon the proprietary rights of others and prevent others from infringing on the proprietary rights of the Company; and

· General economic and business conditions and the availability of sufficient financing.

Except as otherwise required by applicable laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, as a result of new information, future events or otherwise.

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with the Company's unaudited condensed consolidated financial statements and notes thereto included in Part 1, Item 1 of this quarterly report on Form 10-Q and "Management's Discussion and Analysis of Financial Condition and Results of Operations" set forth in the Company's Annual report on Form 10-K for the fiscal year ended December 31, 2015.

Overview

The Company is a leading supplier of digital transaction management (DTM) software enabling the paperless, secure and cost-effective management of document-based transactions. iSign's solutions encompass a wide array of functionality and services, including electronic signatures, biometric authentication and simple-to-complex workflow management. These solutions are available across virtually all enterprise, desktop and mobile environments as a seamlessly integrated platform for both ad-hoc and fully automated transactions. iSign's platform can be deployed both on-premise and as a cloud-based service, with the ability to easily transition between deployment models.

The Company was incorporated in Delaware in October 1986. Except for the year ended December 31, 2004, in each year since its inception the Company has incurred losses. For the two-year period ended December 31, 2015, net losses attributable to common stockholders aggregated approximately $14,998, and, at June 30, 2016, the Company's accumulated deficit was approximately $129,395.

For the three months ended June 30, 2016, total revenue was $356, a decrease of $11, or 3%, compared to total revenue of $367 in the prior year period. For the six months ended June 30, 2016, total revenue was $633, a decrease of $181, or 22%, compared to total revenue of $814 in the prior year period. The decreases in revenue for the three months ended June 30, 2016 is due primarily to lower maintenance revenue. The decrease in revenue for the six months ended June 30, 2016 is due primarily to a decrease in engineering services revenue.

For the three months ended June 30, 2016, the loss from operations was $853, a decrease of $176, or 17%, compared with a loss from operations of $1,029 in the prior year period. The decrease in the loss for the three months ended June 30, 2016 was due primarily to cost reductions put in place beginning in the first quarter of 2016. For the six months ended June 30, 2016, the loss from operations was $1,995, a decrease of $52, or 3%, compared with a loss from operations of $2,047 in the prior year period. The decrease in the loss from operations for the six months ended June 30, 2016 is primarily attributable to cost reductions put in place beginning in the first quarter of 2016.

- 15 -

iSign Solutions Inc.

FORM 10-Q

(In thousands, except per share amounts)

Other expense for the three months ended June 30, 2016, was $16, an increase of $16, compared to other expense of $0 in the prior year period. The increase in other expense for the three months ended June 30, 2016 was primarily due to a valuation allowance provided for the potential negative outcome of penalties for the late filing of certain tax forms related to foreign operations. For the six months ended June 30, 2016, other expense was $13, an increase of $13, compared to other expense of $0 in the prior year. The increase in other expense for the six months ended June 30, 2016 was primarily due to the factors discussed above for the three-month period.

Critical Accounting Policies and Estimates

Refer to Item 7, "Management Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 2015 Form 10-K.

Effect of Recent Accounting Pronouncement

On February 25, 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) 2016, Leases (Topic 842) intended to improve financial reporting about leasing transactions which requires companies to report capital and operating leases with a term of 12 Months or longer on their balance sheets. Disclosure requirements of the leasing arrangement will include qualitative and quantitative information about the amounts recorded in the financial statements.

Implementation of ASU 2016 is not expected to have a material impact on the Company's financial position, results of operations and cash flows.

Results of Operations

Revenue

For the three months ended June 30, 2016, product revenue was $164, an increase of $11, or 7%, compared to product revenue of $153 in the prior year period.  The increase in revenue is primarily attributable to an increase in product licensing in the quarter. For the three months ended June 30, 2016, maintenance revenue was $192, a decrease of $22, or 10%, compared to maintenance revenue of $214 in the prior year period. This decrease is primarily due to the non-renewal of two maintenance contracts entered into in prior years.

For the six months ended June 30, 2016, product revenue was $224, a decrease of $160, or 42%, compared to product revenue of $384 in the prior year period. The decrease in product revenue is primarily due to the lack of engineering service revenue compared to the prior year.  For the six months ended June 30, 2016, maintenance revenue was $409, a decrease of $21, or 5%, compared to maintenance revenue of $430 in the prior year period.  The decrease in maintenance revenue is primarily due to the factors discussed for the three month period above.

Cost of Sales

For the three months ended June 30, 2016, cost of sales was $102, an increase of $7, or 7%, compared to cost of sales of $95 in the prior year period. The increase in cost of sales was due to an increase in direct labor related to transactional and maintenance revenue generating contracts during the three months ended June 30, 2016, compared to the prior year period.

For the six months ended June 30, 2016, cost of sales was $272, an increase of $54, or 25%, compared to cost of sales of $218 in the prior year period. The increase in cost of sales was due to an increase in direct labor related to transactional and maintenance contracts, compared to the prior year period.

- 16 -

iSign Solutions Inc.

FORM 10-Q

(In thousands, except per share amounts)

Operating expenses

Research and Development Expenses

For the three months ended June 30, 2016, research and development expense was $367, a decrease of $131, or 26%, compared to research and development expense of $498 in the prior year period.  Research and development expenses consist primarily of salaries and related costs, outside engineering, maintenance items, and allocated facilities expenses. The most significant factors in the $131 decrease was a $44, or 12%, decrease in total salaries and benefits due to the reduction of one engineer in the third quarter of the prior year together with a $46, or 54%, decrease in professional service expenses associated with product development. Other general expenses decreased $23, or 15%, compared to the prior year. Total expenses, before allocations for the three months ended June 30, 2016, were $483, a decrease of $112, or 19%, compared to $595 in the prior year period. The decrease in gross expenses is primarily due to the factors discussed above.

For the six months ended June 30, 2016, research and development expense was $685, a decrease of $336, or 33%, compared to research and development expense of $1,021 in the prior year period.  The most significant factors in the $336 decrease was a $109, or 15%, decrease in total salaries and benefits due to the reduction of one engineer in the third quarter of the prior year together with a $103, or 52%, decrease in professional service expenses associated with product development. Other general expenses decreased $58, or 18%, compared to the prior year. These expense reductions were augmented by an increase of $66, or 28%, in allocations out related to cost of sales and IT support compared to the prior year period.  Total expenses, before allocations to cost of sales, for the six months ended June 30, 2015, were $986, a decrease of $270, or 21%, compared to $1,256 in the prior year period.

Sales and Marketing Expense

For the three months ended June 30, 2016, sales and marketing expense was $127, a decrease of $115, or 48%, compared to sales and marketing expense of $242 in the prior year period. For the six months ended June 30, 2015, sales and marketing expense was $329, a decrease of $211, or 39%, compared to sales and marketing expense of $540 in the prior year period. These decreases were primarily attributable to salary and related cost savings implemented during the three months ended June 30, 2016 as part of the Company's transition to a go to market strategy principally focused on partner integrations.

General and Administrative Expense

For the three months ended June 30, 2016, general and administrative expense was $613, an increase of $52, or 9%, compared to general and administrative expense of $561 in the prior year period. The increase was primarily due to legal, accounting and other offering expenses that could not be brought forward and applied against the public offering that was completed in the second quarter of 2016. These expenses were offset by decreases in salaries and certain related expense, primarily stock-based compensation of $51, or 35%. Other general administrative expenses decreased $26, or 11%, compared to the prior year period.

For the six months ended June 30, 2016, general and administrative expense was $1,342, an increase of $260, or 24%, compared to general and administrative expense of $1,082 in the prior year period. The increase was primarily due to an increase in professional service expenses of $386, or 97%, related to legal, accounting and other offering expenses that could not be brought forward and applied against the public offering that was completed in the second quarter of 2016. The increase in professional services was partially offset by a decrease in salaries and related expense of $79, or 28%. The decrease in salaries and related expense is due primarily to the reduction in stock-based compensation expense, compared to the prior year period.

Other Income and Expense

For the three months ended June 30, 2016, interest expense was $68, an increase of $67, compared to interest expense of $1 in the prior year period. For the six months ended June 30, 2016, interest expense was $179, an increase of $178, compared to interest expense of $1 in the prior year period. The increase in interest expense is primarily due to the convertible notes and deferred compensation that were outstanding for the first five months of 2016, and converted into shares of Common Stock on May 19, 2016.

- 17 -

iSign Solutions Inc.

FORM 10-Q

(In thousands, except per share amounts)

For the three months ended June 30, 2016, the gain on derivative liability was $149, an increase of $148, compared to the gain on derivative liability of $1 in the prior year period. For the six months ended June 30, 2016, the gain on derivative liability was $174, an increase of $157, compared to a gain on derivative liability of $17 in the prior year period. The increases in the gain on derivative liability was primarily due to the conversion of $1,068 of Short-term Debt in conjunction with the public offering and extinguishment of the related derivative liability in May 2016.

For the three months ended June 30, 2016, and 2015, there was no accretion of a beneficial conversion feature on the Company's Preferred Stock, respectively.

For the six months ended June 30, 2016, accretion of the beneficial conversion feature on the Company's Preferred Stock with a conversion price less than the closing market price of the Company's common stock on the issuance date for new issuances of Preferred Stock and for Preferred Share dividends was $245, a decrease of $282, or 54%, compared to $527 in the prior year period. The decrease is due to the absence of the sale of new Preferred shares and the conversion of all classes of Preferred Stock into common Stock on May 19, 2016. (see Liquidity and Capital Resources).

The Company recorded dividends in kind on shares of its Series A-1 Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock. For the three months ended June 30, 2016, dividends on shares of Preferred Stock were $459, a decrease of $326, or 42% compared to $785 in the prior year period. The decrease was due to the conversion of all classes of Preferred Stock into Common Stock on May 19, 2016.

For the six months ended June 30, 2016, dividends in kind on shares of Preferred Stock were $1,313, a decrease of $203, or 13%, compared to $1,516 in the prior year period. The decrease was due to the above mentioned conversion of all classes of Preferred Stock into Common Stock.

Liquidity and Capital Resources

At June 30, 2016, cash and cash equivalents totaled $455, compared to cash and cash equivalents of $846 at December 31, 2015. The decrease in cash was primarily due to net cash used in operating activities of $815. The use of cash was partially offset by the proceeds from the sale of Common Stock and Warrants during the six month period. At June 30, 2016, total current assets were $706, compared to total current assets of $1,312 at December 31, 2015. At June 30, 2016, the Company's principal sources of funds included its aggregated cash and cash equivalents of $455.

At June 30, 2016, accounts receivable net, was $196, an increase of $102, or 109%, compared to accounts receivable net of $94 at December 31, 2015. The increase is due primarily to the timing of billings during the three months ended June 30, 2016.

At June 30, 2016, prepaid expenses and other current assets were $55, a decrease of $317, or 85%, compared to prepaid expenses and other current assets of $372 at December 31, 2015. The decrease is due primarily to offsetting the prepaid financing expenses against the proceeds from the sale of Common Stock and Warrants in the second quarter of 2016.

At June 30, 2016, total current liabilities were $2,726, a decrease of $644, or 19%, compared to total current liabilities of $3,370 at December 31, 2015. At June 30, 2016, accounts payable was $1,331, an increase of $544, or 69%, from December 31, 2015. At June 30, 2016, accrued compensation was $297, an increase of $34, or 13%, compared to accrued compensation of $263 at December 31, 2015. The increases are due primarily to delays in the Company's fundraising efforts and to the amount of funding secured to date. Other accrued liabilities were $410, a decrease of $205, or 33%, from $615 at December 31, 2015 due to the conversion of $498 of deferred compensation including accrued interest into 286 shares of Common Stock. This reduction was offset by the accrual of additional professional services during the period. Short-term debt, net of the unamortized discount, decreased $801 or 81%, to $190 compared to $991 at December 31, 2015, due to the conversion of $1,068 of the notes plus accrued interest, into 683 shares of the Company's Common Stock.

- 18 -

iSign Solutions Inc.

FORM 10-Q

(In thousands, except per share amounts)

Current deferred revenue was $339, a decrease of $45, or 12%, compared to current deferred revenue of $384 at December 31, 2015. Deferred revenue primarily reflects advance payments for maintenance fees from the Company's licensees that are generally recognized as revenue by the Company when all obligations are met or over the term of the maintenance agreement, whichever is longer. Deferred revenue is recorded when the Company receives advance payment from its customers.

For the three and six months ended June 30, 2016, the Company exercised its option to pay in kind the accrued dividends on Preferred Stock as follows:

	Three Months		Six Months
	June 30, 2016
Series A-1		10		29
Series B		182		519
Series C		74		211
Series D-1		108		309
Series D-2		85		245
Total		459		1,313

On May 19, 2016, the Company closed an underwritten public offering of 690,000 shares of common stock at a public offering price of $1.74 per share. In addition, the Company sold 345,000 warrants, at a public offering price of $0.01 per warrant, to purchase shares of Common Stock. The warrants expire on May 18, 2021 and have an exercise price of $2.175 per share. The Company raised gross cash proceeds of $1,204 before deducting underwriting discounts and commissions and other offering expenses of $780. As a result of the consummation of the offering, each series of the Company's outstanding preferred stock, including accrued and unpaid dividends through May 19, 2016, were converted into shares of common stock.

The Company is using the funds received from the above financing for working capital and general corporate purposes.

The Company incurred $68 and $179, respectively, of interest expense for the three and six months ended June 30, 2016. The interest expense was related to the convertible notes and deferred compensation that were converted to Common Stock in May 2016.

The Company had the following material commitments as of June 30, 2016:

Contractual obligations	Total		2016		Thereafter
Operating lease commitments (1) (2)	$	40	$	40	$	-

1. The Company extended the lease on its offices in April 2010.  The base rent decreased by approximately 6% in November 2011 and will increase by approximately 3% per annum over the term of the new lease, which expires on October 31, 2016.

2. The Company sublet approximately 3,000 feet of unutilized office space in August 2015.  The sub-lease will expire on October 31, 2016

The Company has experienced recurring losses from operations that raise a substantial doubt about its ability to continue as a going concern. There can be no assurance that the Company will have adequate capital resources to fund planned operations or that any additional funds will be available to it when needed, or if available, will be available on favorable terms or in amounts required by it. If the Company is unable to obtain adequate capital resources to fund operations, it may be required to delay, scale back or eliminate some or all of its operations, which may have a material adverse effect on the Company's business, results of operations and ability to operate as a going concern.

- 19 -

iSign Solutions Inc.

FORM 10-Q

(In thousands, except per share amounts)

Item 3.Quantitative and Qualitative Disclosures About Market Risk.

Interest Rate Risk

The Company did not enter into any short-term security investments during the three and six months ended June 30, 2016.

Foreign Currency Risk

From time to time, the Company makes certain capital equipment or other purchases denominated in foreign currencies. As a result, the Company's cash flows and earnings are exposed to fluctuations in interest rates and foreign currency exchange rates. The Company attempts to limit these exposures through operational strategies and generally has not hedged currency exposures. During the three and six months ended June 30, 2016 and 2015, foreign currency translation gains and losses were insignificant.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

As of the end of the period covered by this report, we conducted an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of our disclosure controls and procedures pursuant to paragraph (b) of Rule 13a-15 and 15d-15 under the Exchange Act of 1934 (the "Exchange Act"). Based on that evaluation our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective to ensure that the information required to be disclosed in reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

Our management, including our Chief Executive Officer and Chief Financial Officer, do not expect that our disclosure controls and procedures will prevent all errors or fraud. A control procedure, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control procedures are met. Because of the inherent limitations in all control procedures, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The Company considered these limitations during the development of its disclosure controls and procedures, and will continually reevaluate them to ensure they provide reasonable assurance that such controls and procedures are effective.

Changes in Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting during the quarter ended June 30, 2016 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Part II-Other Information

Item 1.Legal Proceedings.

None.

- 20 -

iSign Solutions Inc.

FORM 10-Q

(In thousands, except per share amounts)

Item 1A.Risk Factors

Not applicable.

Item 2.Unregistered Sale of Securities and Use of Proceeds.

None.

Item 3.Defaults Upon Senior Securities.

None.

Item 4.Mine Safety Disclosures

Not applicable

Item 5.Other Information.

None.

Item 6.Exhibits.

(a) Exhibits.

Exhibit Number	Document
3.1	Certificate of Incorporation of the Company, as amended, incorporated herein by reference to Exhibits 3.1, 3.2, 3.3 and 3.4 to the Company's Registration Statement on Form 10 (File No. 0-19301).
3.2	Certificate of Amendment to the Company's Certificate of Incorporation (authorizing the reclassification of the Class A Common Stock and Class B Common Stock into one class of Common Stock) as filed with the Delaware Secretary of State's office on November 1, 1991, incorporated herein by reference to Exhibit 3 to Amendment 1 on Form 8 to the Company's Form 8-A (File No. 0-19301).
3.3	By-laws of the Company adopted on October 6, 1986, incorporated herein by reference to Exhibit 3.5 to the Company's Registration Statement on Form 10 (File No. 0-19301).
3.4	By-laws of the Company adopted on October 6, 1986, incorporated herein by reference to Exhibit 3.5 to the Company's Registration Statement on Form 10 (File No. 0-19301).
3.5	Certificate of Amendment to the Company's Amended and Restated Certificate of Incorporation dated January 24, 2001, incorporated herein by reference to Exhibit 3.5 to the Company's Registration Statement on Form S/1, filed December 28, 2007.
3.6	Certificate of Elimination of the Company's Certificate of Designation of the Series A Preferred Stock dated August 17, 2001, incorporated herein by reference to Exhibit 3.6 to the Company's Registration Statement on Form S/1, filed December 28, 2007.
3.7	Certificate of Amendment to the Company's Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State August 17, 2007, incorporated herein by reference to Exhibit 3.7 to the Company's Registration Statement on Form S/1 filed on December 28, 2007.
3.8	Amended and Restated Certificate of Incorporation of the Company filed with the Delaware Secretary of State on May 18, 1995, incorporated herein by reference to Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q filed on August 14, 2008.

- 21 -

iSign Solutions Inc.

FORM 10-Q

(In thousands, except per share amounts)

Exhibit Number	Document
3.9	Certificate of Designations, Powers, Preferences and Rights of the Series A Cumulative Convertible Preferred Stock filed with the Delaware Secretary of State on June 4, 2008, incorporated herein by reference to Exhibit 4.23 to the Company's Quarterly Report on Form 10-Q filed on August 14, 2008.
3.10	Certificate of Amendment to the Company's Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State on June 30, 2008, incorporated herein by reference to Exhibit 3.7 to the Company's Quarterly Report on Form 10-Q filed on August 14, 2008.
3.11	Certificate of Designations, Powers, Preferences and Rights of the Series A-1 Cumulative Convertible Preferred Stock filed with the Delaware Secretary of State on October 30, 2008, incorporated herein by reference to Exhibit 3.11 to the Company's Annual Report on Form 10-K filed on March 12, 2009.
3.12	Certificate of Elimination of the Company's Series A Cumulative Convertible Preferred Stock filed with the Delaware Secretary of State on December 30, 2008, incorporated herein by reference to Exhibit 3.12 to the Company's Annual Report on Form 10-K filed on March 12, 2009.
3.13	Certificate of Amendment to the Company's Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State on June 30, 2009, incorporated herein by reference to Exhibit 3.13 to the Company's Quarterly Report on Form 10-Q filed on August 14, 2009.
3.14	Amendment No. 1 to By-laws dated June 17, 2010, incorporated herein by reference to Exhibit 3.14 to the Company's Quarterly Report on Form 10-Q filed on August 16, 2010.
3.15	Certificate of Amendment to the Company's Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State on August 4, 2010, incorporated herein by reference to Exhibit 3.15 to the Company's Quarterly Report on Form 10-Q filed on November 12, 2010.
3.16	Amended and Restated Certificate of Designation of Series A-1 Cumulative Convertible Preferred Stock filed with the Delaware Secretary of State on August 4, 2010, incorporated herein by reference to Exhibit 3.16 to the Company's Quarterly Report on Form 10-Q filed on November 12, 2010.
3.17	Certificate of Designation of Series B Participating Convertible Preferred Stock filed with the Delaware Secretary of State on August 4, 2010, incorporated herein by reference to Exhibit 3.17 to the Company's Quarterly Report on Form 10-Q filed on November 12, 2010.
3.18	Certificate of Amendment to Amended And Restated Certificate of Incorporation filed with the Delaware Secretary of State on December 31, 2010, incorporated herein by reference to Exhibit 3.18 to the Company's Annual Report on Form 10-K filed on March 30, 2011.
3.19	Second Amended and Restated Certificate of Designation of Series A-1 Cumulative Convertible Preferred Stock filed with the Delaware Secretary of State on December 31, 2010, incorporated herein by reference to Exhibit 3.19 to the Company's Annual Report on Form 10-K filed on March 30, 2011.
3.20	Second Amended and Restated Certificate of Designation of Series B Participating Convertible Preferred Stock filed with the Delaware Secretary of State on December 31, 2010, incorporated herein by reference to Exhibit 3.20 to the Company's Annual Report on Form 10-K filed on March 30, 2011.
3.21	Certificate of Designation of Series C Participating Convertible Preferred Stock filed with the Delaware Secretary of State on December 31, 2010, incorporated herein by reference to Exhibit 3.21 to the Company's Annual Report on Form 10-K filed on March 30, 2011.
3.22	Amendment to the Amended And Restated Certificate of Designation of the Series B Participating Convertible Preferred Stock, incorporated herein by reference to Exhibit 10.59 to the Company's Current Report on Form 8-K filed March 31, 2011.
3.23	Amendment to the Amended And Restated Certificate of Designation of the Series C Participating Convertible Preferred Stock, incorporated herein by reference to Exhibit 10.60 to the Company's Current Report on Form 8-K filed March 31, 2011.
3.24	Certificate of Amendment to Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State on November 13, 2012, incorporated herein by reference to Appendix A to the Company's Definitive Proxy Statement filed on Schedule 14A on October 22, 2012.

- 22 -

iSign Solutions Inc.

FORM 10-Q

(In thousands, except per share amounts)

Exhibit Number	Document
3.25	Third Amended and Restated Certificate of Designation of Series A-1 Cumulative Convertible Preferred Stock filed with the Delaware Secretary of State on November 13, 2012, incorporated herein by reference to Exhibit 3.25 to the Company's Form 10-K filed March 31, 2014.
3.26	Second Amended and Restated Certificate of Designation of Series B Participating Convertible Preferred Stock filed with the Delaware Secretary of State on November 13, 2012, incorporated herein by reference to Exhibit 3.26 to the Company's Form 10-K filed March 31, 2014.
3.27	Amended and Restated Certificate of Designation of Series C Participating Convertible Preferred Stock filed with the Delaware Secretary of State on November 13, incorporated herein by reference to Exhibit 3.27 to the Company's Form 10-K filed March 31, 2014.
3.28	Certificate of Designation of Series D Convertible Preferred Stock filed with the Delaware Secretary of State on November 13, 2012, incorporated herein by reference to Exhibit 3.28 to the Company's Form 10-K filed March 31, 2014.
3.29	Certificate of Amendment to Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State on December 10, 2013, incorporated herein by reference to Appendix A to the Company's Definitive Proxy Statement filed on Schedule 14A on November 1, 2013.
3.30	Certificate of Amendment to Certificate of Designation of Series D Convertible Preferred Stock filed with the Delaware Secretary of State on December 31, 2013, incorporated herein by reference to Exhibit 3.30 to the Company's Form 10-K filed March 31, 2014.
3.31	Certificate of Amendment to Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State on December 16, 2014, incorporate herein by reference to Appendix A to the Company's Definitive Proxy Statement filed on Schedule 14A on October 17, 2014.
3.32	Certificate of Amendment to Certificate of Designation of Series D Convertible Preferred Stock filed with the Delaware Secretary of State on March 24, 2015, incorporated herein by reference to Exhibit 3.32 to the Company's Quarterly Report on Form 10-Q filed May 15, 2015.
3.33	Certificate of Amendment to the Company's Third Amended and Restated Certificate of Designation of Series A-1 Cumulative Convertible Preferred Stock filed with Secretary of State of the State of Delaware on May 18, 2016, incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed May 16, 2016.
3.34	Certificate of Amendment to the Company's Second Amended and Restated Certificate of Designation of Series B Participating Convertible Preferred Stock filed with Secretary of State of the State of Delaware on May 18, 2016, incorporated herein by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K filed May 16, 2016.
3.35	Certificate of Amendment to the Company's Amended and Restated Certificate of Designation of Series C Participating Convertible Preferred Stock filed with Secretary of State of the State of Delaware on May 18, 2016, incorporated herein by reference to Exhibit 3.3 to the Company's Current Report on Form 8-K filed May 16, 2016.
3.36	Certificate of Amendment to the Company's Certificate of Designation of Series D Convertible Preferred Stock filed with Secretary of State of the State of Delaware on May 18, 2016, incorporated herein by reference to Exhibit 3.4 to the Company's Current Report on Form 8-K filed May 16, 2016.
3.37	Certificate of Amendment to the Company's Certificate of Designation of Series D Convertible Preferred Stock filed with Secretary of State of the State of Delaware on May 18, 2016, incorporated herein by reference to Exhibit 3.5 to the Company's Current Report on Form 8-K filed May 16, 2016.
10.59	Amendment to the Amended And Restated Certificate of Designation of the Series B Participating Convertible Preferred Stock, incorporated herein by reference to Exhibit 10.59 to the Company's Current Report on Form 8-K filed March 31, 2011.
10.60	Amendment to the Amended And Restated Certificate of Designation of the Series C Participating Convertible Preferred Stock, incorporated herein by reference to Exhibit 10.60 to the Company's Current Report on Form 8-K filed March 31, 2011.
10.61	Form Of Subscription Agreement, incorporated herein by reference to Exhibit 10.61 to the Company's Current Report on Form 8-K filed on April 4, 2011.

- 23 -

iSign Solutions Inc.

FORM 10-Q

(In thousands, except per share amounts)

Exhibit Number	Document
10.62	Amendment No. 1 to the Registration Rights Agreement dated March 31, 2011, incorporated herein by reference to Exhibit 10.62 to the Company's Current Report on Form 8-K filed on April 4, 2011
10.63	Note and Warrant Purchase Agreement dated April 23, 2012, incorporated herein by reference to Exhibit 10.63 to the Company's Quarterly Report on Form 10-Q filed on August 14, 2012.
10.64	Form of Subscription Agreement dated September 14, 2012, incorporated herein by reference to Exhibit 10.64 to the Company's Quarterly Report on Form 10-Q filed on November 14, 2012.
10.65	Form of Unsecured Convertible Promissory Note dated September 14, 2012, incorporated herein by reference to Exhibit 10.65 to the Company's Quarterly Report on Form 10-Q filed on November 14, 2012.
10.66	Form of Subscription Agreement dated May 17, 2013, incorporated herein by reference to Exhibit 10.66 to the Company's Quarterly Report on Form 10-Q filed on August 14, 2013.
10.67	Form of Subscription Agreement dated December 31, 2013, incorporated herein by reference to Exhibit 10.67 to the Company's Form 10-K filed March 31, 2014.
10.68	Credit Agreement with Venture Champion Asia Limited dated May 6, 2014, incorporated herein by reference to Exhibit 10.68 to the Company's Form 10-Q filed August 15, 2014.
10.69	Form of Subscription Agreement dated August 5, 2014, incorporated herein by reference to Exhibit 10.69 to the Company's Form 10-K filed March 31, 2015.
*10.70	Form of Subscription Agreement dated March 24, 2015, incorporated herein by reference to Exhibit 10.70 to the Company's Quarterly Report on Form 10-Q filed May 15, 2015.
*31.1	Certification of Company's Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
*31.2	Certificate of Company's Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
*32.1	Certification of Chief Executive Officer pursuant to 18 USC Section 1750, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
*32.2	Certification of Chief Financial Officer pursuant to 18 USC Section 1750, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

* Filed herewith.

- 24 -

iSign Solutions Inc.

FORM 10-Q

(In thousands, except per share amounts)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

iSign Solutions Inc.

Registrant

August 15, 2016	/s/ Andrea Goren
Date	Andrea Goren
	(Principal Financial Officer and Officer Duly Authorized to Sign on Behalf of the Registrant)

                       

- 25 -

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Philip Sassower, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of iSign Solutions 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(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act 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(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

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

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

Date:  August 15, 2016

/s/ Philip Sassower

Chairman and Chief Executive Officer

(Principal Executive Officer of Registrant)

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Andrea Goren, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of iSign Solutions 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(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act 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(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

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

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

Date:  August 15, 2016

//Andrea Goren

Chief Financial Officer

(Principal Financial Officer of Registrant)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Philip S. Sassower, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of iSign Solutions Inc. on Form 10-Q for the quarterly period ended June 30, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of iSign  Solutions Inc.

Date: August 15, 2016

By: /s/ Philip S. Sassower

Chairman and Chief Executive Officer

(Principal Executive Officer)

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to iSign Solutions Inc. and will be retained by iSign Solutions Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by iSign Solutions Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that iSign Solutions Inc. specifically incorporates it by reference.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Andrea Goren, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of iSign Solutions Inc. on Form 10-Q for the quarterly period ended June 30, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of iSign  Solutions Inc.

Date: August 15, 2016

By: /s/ Andrea Goren

Chief Financial Officer

(Principal Financial Officer)

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to iSign Solutions Inc. and will be retained by iSign Solutions Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by iSign Solutions Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that iSign Solutions Inc. specifically incorporates it by reference.

XML

Document and Entity Information - USD ($)	6 Months Ended
	Jun. 30, 2016	Aug. 15, 2016	Jun. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	iSign Solutions Inc.
Entity Central Index Key	0000727634
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
EntityVoluntaryFilers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,498,246
Entity Public Float			$ 4,203,038

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 455	$ 846
Accounts receivable, net of allowance of $30 at June 30, 2016 and $22 at December 31, 2015, respectively	196	94
Prepaid expenses and other current assets	55	372
Total current assets	706	1,312
Property and equipment, net	38	44
Intangible assets, net	430	591
Other assets	29	29
Total assets	1,203	1,976
Current liabilities:
Accounts payable	1,331	787
Short-term notes payable	190	991
Accrued compensation	297	263
Other accrued liabilities	410	615
Deferred revenue	339	384
Short-term capital lease	3
Derivative liability	156	330
Total current liabilities	2,726	3,370
Deferred revenue long-term	385	455
Long-term capital lease	11
Other long-term liabilities	14	21
Total liabilities	3,136	3,846
Commitments and Contingencies
Equity (deficit)
Common stock	55	2
Treasury stock	(325)	(325)
Additional paid in capital	(128,282)	95,312
Accumulated deficit	(129,395)	(127,116)
Accumulated other comprehensive loss	(14)	(14)
Total iSign stockholder's deficit	(1,397)	(1,334)
Non-controlling interest	(536)	(536)
Total deficit	(1,933)	(1,870)
Total liabilities and deficit	$ 1,203	1,976
Series A-1 Preferred Stock [Member]
Equity (deficit)
Preferred stock by class of stock		947
Series B Preferred Stock [Member]
Equity (deficit)
Preferred stock by class of stock		11,653
Series C Preferred Stock [Member]
Equity (deficit)
Preferred stock by class of stock		6,069
Series D-1 Preferred Stock [Member]
Equity (deficit)
Preferred stock by class of stock		6,866
Series D-2 Preferred Stock [Member]
Equity (deficit)
Preferred stock by class of stock		$ 5,272

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Accounts receivable, allowance	$ 30	$ 22

XML

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue:
Product	$ 164	$ 153	$ 224	$ 384
Maintenance	192	214	409	430
Total revenues	356	367	633	814
Cost of sales:
Product	17	34	54	145
Maintenance	85	61	218	73
Research and development	367	498	685	1,021
Sales and marketing expense	127	242	329	540
General and administrative expense	613	561	1,342	1,082
Total operating costs and expenses	1,209	1,396	2,628	2,861
Loss from operations	(853)	(1,029)	(1,995)	(2,047)
Other expense, net	(16)		(13)
Interest expense:
Related party	(30)		(81)
Other	(38)	(1)	(98)	(1)
Amortization of debt discount:
Related Party	(34)		(56)
Other	(127)		(210)
Gain on derivative liability	149	1	174	17
Net loss	(949)	(1,029)	(2,279)	(2,031)
Accretion of beneficial conversion feature, preferred shares:
Related party			(115)	(458)
Other			(130)	(69)
Preferred stock dividends:
Related party	(226)	(391)	(646)	(746)
Other	(233)	(394)	(667)	(770)
Net loss attributable to common stockholders	$ (1,408)	$ (1,814)	$ (3,837)	$ (4,074)
Basic and diluted loss per common share	$ (0.53)	$ (9.68)	$ (2.70)	$ (21.73)
Weighted average common shares outstanding, basic and diluted	2,636	187	1,420	187

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (2,279)	$ (2,031)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	183	178
Debt discount amortization	266
Stock-based employee compensation	106	371
Gain on derivative liability	(174)	(17)
Changes in operating assets and liabilities:
Accounts receivable, net	(102)	(34)
Prepaid expenses and other assets	317	37
Accounts payable	544	(5)
Accrued Compensation	34	(25)
Other accrued liabilities	405	34
Deferred revenue	(115)	(64)
Net cash used in operating activities	(815)	(1,556)
Cash flows from investing activities:
Acquisition of property and equipment		(10)
Net cash used in investing activities		(10)
Cash flows from financing activities:
Proceeds from issuance of Series D preferred Stock, net of issuance costs of $33		1,200
Proceeds from issuance of common stock and warrants, net of issuance costs of $780	424
Net cash provided by financing activities	424	1,200
Net decrease in cash and cash equivalents	(391)	(366)
Cash and cash equivalents at beginning of period	846	775
Cash and cash equivalents at end of period	455	409
Supplemental disclosure of cash flow information:
Interest paid	3	1
Income tax paid
Non-cash financing and investing transactions:
Aquisition of property and equipment through capital lease	15
Conversion of convertible notes plus accrued interest	1,188
Conversion of deferred compensation plus accrued interest	498
Dividends on preferred shares	1,313	1,516
Accretion of beneficial conversion feature on issuance of convertible Preferred Stock		498
Accretion of beneficial conversion feature on issuance of Preferred Stock dividends	$ 245	$ 29

XML

Condensed Consolidated Statement of Cash Flows (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Number of common shares issued in notes conversion	683
Number of common shares issued in deferred compensation conversion	286
Common Stock and Warrants [Member]
Issuance costs	$ 780
Series D Preferred Stock [Member]
Issuance costs		$ 33

XML

Nature of business, basis of presentation and summary of significant accounting policies

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of business, basis of presentation and summary of significant accounting policies

1. Nature of Business and Summary of Significant Accounting Policies

Nature of Business

On January 21, 2016, iSign Solutions Inc. (the "Company" or "iSign") filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation (the "Certificate of Amendment") with the Secretary of State of the State of Delaware to effect a 1-for-1,250 reverse split of the Company's outstanding shares of common stock. The reverse split became effective on January 22, 2016. The information with respect to common stock for the period ended June 30, 2015 has been retroactively restated to give effect to the 1-for-1,250 reverse split.

iSign Solutions Inc. and its subsidiary is a leading supplier of digital transaction management (DTM) software enabling the paperless, secure and cost-effective management and authentication of document-based transactions. iSign's solutions encompass a wide array of functionality and services, including electronic signatures, simple-to-complex workflow management and various options for biometric authentication. These solutions are available across virtually all enterprise, desktop and mobile environments as a seamlessly integrated platform for both ad-hoc and fully automated transactions. iSign's platform can be deployed both on premise and as a cloud-based ("SaaS") service, with the ability to easily transition between deployment models. The Company is headquartered in Redwood Shores, California. The Company's products include SignatureOne® Ceremony™ Server, the iSign® suite of products and services, including iSign® Enterprise and iSign® Console™, and Sign-it® programs.

Basis of Presentation

The financial information contained herein should be read in conjunction with the Company's consolidated audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2015.

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements included in this quarterly report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for a fair presentation of its financial position at the dates presented and the Company's results of operations and cash flows for the periods presented. The Company's interim results are not necessarily indicative of the results to be expected for the entire year.

Going Concern

The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant cumulative losses since its inception and, at June 30, 2016, the Company's accumulated deficit was $129,395. The Company has primarily met its working capital needs through the sale of debt and equity securities. As of June 30, 2016, the Company's cash balance was $455. These factors raise substantial doubt about the Company's ability to continue as a going concern.

There can be no assurance that the Company will be successful in securing adequate capital resources to fund planned operations or that any additional funds will be available to the Company when needed, or if available, will be available on favorable terms or in amounts required by the Company. If the Company is unable to obtain adequate capital resources to fund operations, it may be required to delay, scale back or eliminate some or all of its operations, which may have a material adverse effect on the Company's business, results of operations and ability to operate as a going concern. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Accounting Changes and Recent Accounting Pronouncements

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 requires all financial assets and liabilities not accounted for under the equity method to be measured at fair value with the changes in fair value recognized in net income. The amendments in this update also require an entity to separately present in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this update supersede the requirement to disclose the methods and significant assumptions used in calculating the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. Early adoption is not permitted except for the comprehensive income presentation requirement, and the updated guidance requires a prospective application with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The guidance is effective for annual periods after December 15, 2017, and we are currently in the process of evaluating the impact of this new guidance.

In February 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) 2016, Leases (Topic 842) intended to improve financial reporting about leasing transactions which requires companies to report capital and operating leases with a term of 12 Months or longer on their balance sheets. Disclosure requirements of the leasing arrangement will include qualitative and quantitative information about the amounts recorded in the financial statements. The guidance is effective for annual periods after December 15, 2018, and we are currently in the process of evaluating the impact of this new guidance

In March 2016 the FASB issued ASU No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 provides for simplification involving several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. In addition to these simplifications, ASU 2016-09 also eliminates the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. Early adoption is permitted and the application of the guidance is different for each update included within ASU 2016-09. The guidance is effective for annual periods after December 15, 2016, and we are currently in the process of evaluating the impact of this new guidance.

In May 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ASU 2016-12 provides for improvements and practical expedients for specific areas of Topic 606. In April 2016, the FASB issued ASU No. 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU 2016-10 provides for clarification of two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance. In March 2016, the FASB issued ASU No. 2016-08Revenue from Contracts with Customers (Topic 606) - Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU No. 2016-08 requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation.

ASUs 2016-12, 2016-10 and 2016-08 allow for companies to choose to apply the standard retrospectively to each prior reporting period presented (full retrospective application) or retrospectively with the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application (modified retrospective application). Each guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. We are currently in the process of evaluating these guidance updates.

iSign is in the process of evaluating the impact of this new guidance on the Company's financial position, results of operations and cash flows.

XML

Concentrations

6 Months Ended

Jun. 30, 2016

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

2. Concentrations

The following table summarizes accounts receivable and revenue concentrations:

	Accounts Receivable as of June 30,		Total Revenue for the three months ended June 30,		Total Revenue for the six months ended June 30,
	2016	2015	2016	2015	2016	2015
Customer #1	33%	19%	-	-	-	-
Customer #2	-	32%	-	11%	-	13%
Customer #3	-	-	-	10%	11%	19%
Customer #4	48%	31%	38%	28%	27%	16%
Customer #5	-	-	-	-	11%	-
Total concentration	81%	82%	38%	49%	49%	48%

XML

Intangible Assets

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Patents

3. Intangible assets

The Company performs an intangible asset impairment analysis at least annually or whenever circumstances or events indicate such assets might be impaired. The Company would recognize an impairment charge in the event the net book value of such assets exceeded the future undiscounted cash flows attributable to such assets.

Management completed an analysis of the Company's intangible assets as of December 31, 2015. Based on that analysis, the Company concluded that no impairment of the carrying value of the intangible assets existed. The Company believes that no events or circumstances changed during the three and six months ended June 30, 2016 that would impact this conclusion.

Amortization of intangible assets costs was $80 and $161 for the three and six-month periods ended June 30, 2016 and $86 and $173 for the three and six-month periods ended June 30, 2015, respectively.

The following table summarizes the patents:

	June 30, 2016			December 31, 2015
	Carrying Amount	Accumulated Amortization	Net Value	Carrying Amount	Accumulated Amortization	Net Value
Amortizable intangible assets:
Technology	$ 6,745	$ (6,315)	$ 430	$ 6,745	$ (6,154)	$ 591

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Net loss per share

6 Months Ended

Jun. 30, 2016

Net loss per share [Abstract]

Net loss per share

4. Net Loss per Share

The Company calculates basic net loss per share based on the weighted average number of shares outstanding, and when applicable, diluted net income per share, which is based on the weighted average number of shares and potential dilutive shares outstanding.

The Company's Preferred Shareholders converted all of their Preferred Stock into shares of Common Stock on May 19, 2016. The following table lists shares and warrants that were excluded from the calculation of diluted earnings per share as the exercise of such options and warrants and the conversion of such preferred shares would be anti-dilutive:

	For the Six Months Ended
	June 30, 2016	June 30, 2015
Stock options	74	85
Warrants	1,756	179
Preferred Stock as if converted
Series A-1 Preferred Stock	-	5
Series B Preferred Stock	-	237
Series C Preferred Stock	-	185
Series D-1 Preferred Stock	-	261
Series D-2 Preferred Stock	-	97

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Debt

6 Months Ended

Jun. 30, 2016

Short-term notes payable [Abstract]

Debt

5. Debt

Short-term notes payable:

In the fourth quarter of 2015, the Company entered into unsecured convertible promissory note purchase agreements with investors and affiliates of the Company aggregating $1,268 in cash. Promissory notes with a principal amount of $1,068 plus accrued interest converted into shares of our Common Stock on May 19, 2016.

The notes and accrued interest converted at a price of $1.74 per share into 683 shares of our Common Stock. The holders of the notes also received 854 warrants to purchase 854 shares of Common Stock. Such warrants have a 5 year term and are exercisable at a price of $2.175 per share. The Company ascribed a relative fair value to the warrants using the Black-Scholes-Merton valuation model of $586, which was charged to additional paid-in capital during the quarter ended June 30, 2016.

One promissory note with a principal amount of $190, net of $10 in unamortized discount, remains outstanding as of June 30, 2016. This note bears interest at a rate of 24% per year and is due on August 25, 2016. The note can be converted into shares of our Common Stock at the holder's option for a period of 60 days after maturity, at a conversion price based upon a Company pre-money valuation of $5,000. Upon such conversion, the holder would also receive cash payments, payable from 3% of the revenue received by the Company from its European customer, not to exceed three times the aggregate principal amount of $200.

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Derivative Liability

6 Months Ended

Jun. 30, 2016

Derivative liability [Abstract]

Derivative Liability

6. Derivative Liability

The Company has determined that a contract that would otherwise meet the definition of a derivative but is both (a) indexed to the Company's own stock and (b) classified in stockholders' deficit in the statement of financial position would not be considered a derivative financial instrument. The Company applies a two-step model in determining whether a financial instrument or an embedded feature is indexed to an issuer's own stock and thus able to qualify for the scope exception.

In November and December 2015, the Company entered into unsecured convertible promissory note purchase agreements with investors and affiliates of the Company. The accounting for the unsecured convertible notes, which are convertible into shares of our common stock, requires us to bifurcate the conversion feature and account for it as a derivative liability at the estimated fair value upon issuance. The Company used a Monte Carlo simulation to value the conversion feature with the following assumptions:

	As of June 30, 2016
Common Stock price	$ 1.31
Convertible debt principal amount	$ 200
Term (years)	0.32
Expected volatility	108%
Convertible debt interest rate	24%
Trials (each trial equals 150,000 iterations)	10
Discount to IPO/next round	Based upon a Company pre-money valuation of $5,000

The fair value framework requires a categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets and liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:

Level 1: Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2: Applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3: Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

There were no financial assets or liabilities measured at fair value, with the exception of cash and cash equivalents (level 1) and the above mentioned derivative liability (level 3) as of June 30, 2016 and December 31, 2015, respectively.

Changes in the fair market value of the Level 3 derivative liability for the six-month periods ended June 30, 2016 and June 30, 2015 are as follows:

	For the Six Months Ended
	June 30, 2016	June 30, 2015
Balance at January 1	$ 330	$ -
Net gain on derivative liability	(174)	-
Balance at June 30	$ 156	$ -

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Equity

6 Months Ended

Jun. 30, 2016

Stockholders' Equity [Abstract]

Stockholders' Equity

7. Equity (Deficit)

Stock-based compensation expense is based on the estimated grant date fair value of the portion of stock-based payment awards that are ultimately expected to vest during the period. The grant date fair value of stock-based awards to employees and directors is calculated using the Black-Scholes-Merton valuation model.

Forfeitures of stock-based payment awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated average forfeiture rate for the three months ended June 30, 2016 and 2015, was approximately 11.89% and 7.54%, respectively, based on historical data.

Valuation and Expense Information:

The weighted-average fair value of stock-based compensation is based on the Black-Scholes-Merton valuation model. Forfeitures are estimated and it is assumed no dividends will be declared. The estimated fair value of stock-based compensation awards to employees is amortized using the accrual method over the vesting period of the options. The fair value calculations are based on the following assumptions:

	Six Months Ended June 30, 2016	Six Months Ended June 30, 2015
Risk free interest rate	0.04% - 3.19%	0.04% - 3.73%
Expected life (years)	2.82 - 7.00	3.26 - 6.88
Expected volatility	112.75% - 198.90%	93.63% - 198.38%
Expected dividends	None	None

There were no stock options granted, and no stock options exercised during the three and six months ended June 30, 2016. The Company granted 29 stock options during the three and six months ended June 30, 2015 at a weighted average exercise price of $28.13 per share. There were no stock options exercised during the three and six months ended June 30, 2015.

The following table summarizes the allocation of stock-based compensation expense related to stock option grants for the three and six months ended June 30:

	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
Research and development	$ 15	$ 47	$ 34	$ 113
Sales and marketing	$ 2	$ 34	$ 15	$ 86
General and administrative	$ 19	$ 65	$ 43	$ 145
Director options	$ 6	$ 12	$ 14	$ 27
Total stock-based compensation expense	$ 42	$ 158	$ 106	$ 371

A summary of option activity under the Company's plans for the six months ended June 30, 2016 and 2015 is as follows:

Options	2016				2015
	Shares	Weighted Average Exercise Price Per Share	Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value	Shares	Weighted Average Exercise Price Per Share	Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding at January 1,	82	$ 45.35		$ -	57	$ 56.13		$ -
Granted	-	$ -		$ -	29	$ 28.13		$ -
Exercised	-	$ -		$ -	-	$ -		$ -
Forfeited or expired	(8)	$ 42.16		$ -	(1)	$ 37.50		$ -
Outstanding at June 30	74	$ 45.71	3.65	$ -	85	$ 46.75	4.59	$ -
Vested and expected to vest at June 30	72	$ 46.22	3.10	$ -	83	$ 37.50	3.24	$ -
Exercisable at June 30	58	$ 51.10	3.10	$ -	52	$ 56.00	3.56	$ -

The following table summarizes significant ranges of outstanding and exercisable options as of June 30, 2016:

Range of Exercise Prices	Options Outstanding			Options Exercisable
	Number Outstanding	Weighted Average Remaining Contractual Term (in years)	Weighted Average Exercise Price	Number Outstanding	Weighted Average Exercise Price
$25.00 - $625.00	74	3.65	$ 45.71	58	$ 51.10

A summary of the status of the Company's non-vested shares as of June 30, 2016 is as follows:

Non-vested Shares	Shares	Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2016	25	$28.61
Forfeited	(3)	$28.80
Vested	(6)	$46.22
Non-vested at June 30, 2016	16	$26.42

As of June 30, 2016, there was a total of $107 of unrecognized compensation expense related to non-vested stock-based compensation arrangements granted under the plans. The unrecognized compensation expense is expected to be realized over a weighted average period of 1.7 years.

Sale of Common Stock and Conversion of Preferred Stock, Short-term Debt and Deferred Compensation

On May 19, 2016, the Company closed an underwritten public offering of 690 shares of common stock at a public offering price of $1.74 per share. In addition, the Company sold 345 warrants, at a public offering price of $0.01 per warrant, to purchase shares of Common Stock. The warrants expire on May 18, 2021 and have an exercise price of $2.175 per share. The Company raised gross cash proceeds of $1,204 before deducting underwriting discounts and commissions and other offering expenses of $780. As a result of the consummation of the offering, each series of the Company's outstanding preferred stock, including accrued and unpaid dividends through May 19, 2016, were converted into shares of common stock.

As a result of the Amendments to the Certificates of Designations to all classes of Preferred Stock and pursuant to the terms thereof, the conversion price of the Company's Preferred Stock was reduced. The following table summarizes the change in conversion price, the number of shares outstanding as of the conversion date and the number of Common Stock issued upon conversion of the Preferred Stock.

Class of Preferred Stock	Old Conversion Price	Adjusted Conversion Price	Shares Outstanding at Conversion Date	Common shares issued upon conversion
Series A-1	$ 175.00	$ 19.44	976	50
Series B	$ 54.13	$ 12.96	14,042	1,083
Series C	$ 28.13	$ 9.71	5,702	587
Series D-1	$ 28.13	$ 7.24	8,386	1,159
Series D-2	$ 62.50	$ 8.58	6,625	773
Total			35,731	3,652

The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.

In conjunction with the sale of Common Stock, $1,188 of Short-term debt including accrued interest of $120 was converted into 683 shares of the Company's Common Stock. The Company issued 854 warrants with the conversion of the Short-term debt. The Company ascribed a relative fair value of $586 to the warrants using the Black-Scholes-Merton valuation model, which was charged to additional paid-in capital during the quarter ended June 30, 2016.

In addition to the conversion of the Short-term debt, approximately $498 of deferred compensation including accrued interest of $59 was converted into 286 shares of the Company's Common Stock. The Company issued 352 warrants with the conversion of the deferred compensation. The Company ascribed a relative fair value of $244 to the warrants using the Black-Scholes-Merton valuation model, which was charged to additional paid- in capital during the quarter ended June 30, 2016.

The conversion price of the Short-term debt and deferred compensation was $1.74 per share. The warrants expire on May 18, 2021 and have an exercise price of $2.175.

Information with respect to in-kind dividends issued on the Company's Preferred stock for the three and six-month periods ended June 30, 2016 and June 30, 2015 is as follows:

	Dividends				Beneficial Conversion Feature Related to dividends
	Three Months Ended June 30,		Six Months Ended June 30,		Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015	2016	2015	2016	2015
Series A-1	$ 10	$ 17	$ 29	$ 35	$ -	$ -	$ 3	$ -
Series B	182	313	519	615	-	-	73	-
Series C	74	127	211	250	-	-	39	13
Series D-1	108	179	309	324	-	-	78	16
Series D-2	85	149	245	292	-	-	52	-
Total	$ 459	$ 785	$ 1,313	$ 1,516	$ -	$ -	$ 245	$ 29

Warrants

A summary of the warrant activity for the six months ended June 30 is as follows:

	June 30, 2016		June 30, 2015
	Shares	Weighted Average Exercise Price Per Share	Shares	Weighted Average Exercise Price Per Share
Outstanding at beginning of period	205	$ 35.51	171	$ 36.13
Issued	1,551	$ 2.18	22	$ 28.13
Expired	-	$ -	(13)	$ 62.50
Outstanding at end of period	1,756	$ 5.27	180	$ 34.63
Exercisable at end of period	1,756	$ 5.27	180	$ 34.63

A summary of the status of the warrants outstanding and exercisable as of June 30, 2016 is as follows:

Number of Warrants	Weighted Average Remaining Life	Weighted Average Exercise Price per share
14	0.01	$0.30
105	0.03	$2.06
32	0.01	$0.51
54	0.06	$0.48
1,551	4.38	$1.92
1,756	4.48	$1.85

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Nature of business, basis of presentation and summary of significant accounting policies (Policies)

6 Months Ended

Jun. 30, 2016

Summary of Significant Accounting Policies

Basis of Presentation

Basis of Presentation

The financial information contained herein should be read in conjunction with the Company's consolidated audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2015.

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements included in this quarterly report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for a fair presentation of its financial position at the dates presented and the Company's results of operations and cash flows for the periods presented. The Company's interim results are not necessarily indicative of the results to be expected for the entire year.

Going Concern

Going Concern

The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant cumulative losses since its inception and, at June 30, 2016, the Company's accumulated deficit was $129,395. The Company has primarily met its working capital needs through the sale of debt and equity securities. As of June 30, 2016, the Company's cash balance was $455. These factors raise substantial doubt about the Company's ability to continue as a going concern.

There can be no assurance that the Company will be successful in securing adequate capital resources to fund planned operations or that any additional funds will be available to the Company when needed, or if available, will be available on favorable terms or in amounts required by the Company. If the Company is unable to obtain adequate capital resources to fund operations, it may be required to delay, scale back or eliminate some or all of its operations, which may have a material adverse effect on the Company's business, results of operations and ability to operate as a going concern. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Accounting Changes and Recent Accounting Pronouncements

Accounting Changes and Recent Accounting Pronouncements

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 requires all financial assets and liabilities not accounted for under the equity method to be measured at fair value with the changes in fair value recognized in net income. The amendments in this update also require an entity to separately present in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this update supersede the requirement to disclose the methods and significant assumptions used in calculating the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. Early adoption is not permitted except for the comprehensive income presentation requirement, and the updated guidance requires a prospective application with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The guidance is effective for annual periods after December 15, 2017, and we are currently in the process of evaluating the impact of this new guidance.

In February 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) 2016, Leases (Topic 842) intended to improve financial reporting about leasing transactions which requires companies to report capital and operating leases with a term of 12 Months or longer on their balance sheets. Disclosure requirements of the leasing arrangement will include qualitative and quantitative information about the amounts recorded in the financial statements. The guidance is effective for annual periods after December 15, 2018, and we are currently in the process of evaluating the impact of this new guidance

In March 2016 the FASB issued ASU No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 provides for simplification involving several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. In addition to these simplifications, ASU 2016-09 also eliminates the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. Early adoption is permitted and the application of the guidance is different for each update included within ASU 2016-09. The guidance is effective for annual periods after December 15, 2016, and we are currently in the process of evaluating the impact of this new guidance.

In May 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ASU 2016-12 provides for improvements and practical expedients for specific areas of Topic 606. In April 2016, the FASB issued ASU No. 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU 2016-10 provides for clarification of two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance. In March 2016, the FASB issued ASU No. 2016-08Revenue from Contracts with Customers (Topic 606) - Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU No. 2016-08 requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation.

ASUs 2016-12, 2016-10 and 2016-08 allow for companies to choose to apply the standard retrospectively to each prior reporting period presented (full retrospective application) or retrospectively with the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application (modified retrospective application). Each guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. We are currently in the process of evaluating these guidance updates.

iSign is in the process of evaluating the impact of this new guidance on the Company's financial position, results of operations and cash flows.

Intangible Assets, Net

The Company performs an intangible asset impairment analysis at least annually or whenever circumstances or events indicate such assets might be impaired. The Company would recognize an impairment charge in the event the net book value of such assets exceeded the future undiscounted cash flows attributable to such assets.

Net loss per share

The Company calculates basic net loss per share based on the weighted average number of shares outstanding, and when applicable, diluted net income per share, which is based on the weighted average number of shares and potential dilutive shares outstanding.

Derivatives policy

The Company has determined that a contract that would otherwise meet the definition of a derivative but is both (a) indexed to the Company's own stock and (b) classified in stockholders' deficit in the statement of financial position would not be considered a derivative financial instrument. The Company applies a two-step model in determining whether a financial instrument or an embedded feature is indexed to an issuer's own stock and thus able to qualify for the scope exception.

Fair value measurement

The fair value framework requires a categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets and liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:

Level 1: Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2: Applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3: Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Share-based payment

Stock-based compensation expense is based on the estimated grant date fair value of the portion of stock-based payment awards that are ultimately expected to vest during the period. The grant date fair value of stock-based awards to employees and directors is calculated using the Black-Scholes-Merton valuation model.

Forfeitures of stock-based payment awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated average forfeiture rate for the three months ended June 30, 2016 and 2015, was approximately 11.89% and 7.54%, respectively, based on historical data.

Valuation and Expense Information:

The weighted-average fair value of stock-based compensation is based on the Black-Scholes-Merton valuation model. Forfeitures are estimated and it is assumed no dividends will be declared. The estimated fair value of stock-based compensation awards to employees is amortized using the accrual method over the vesting period of the options.

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Concentration (Tables)

6 Months Ended

Jun. 30, 2016

Risks and Uncertainties [Abstract]

Schedule of accounts receivable and revenue concentration

The following table summarizes accounts receivable and revenue concentrations:

	Accounts Receivable as of June 30,		Total Revenue for the three months ended June 30,		Total Revenue for the six months ended June 30,
	2016	2015	2016	2015	2016	2015
Customer #1	33%	19%	-	-	-	-
Customer #2	-	32%	-	11%	-	13%
Customer #3	-	-	-	10%	11%	19%
Customer #4	48%	31%	38%	28%	27%	16%
Customer #5	-	-	-	-	11%	-
Total concentration	81%	82%	38%	49%	49%	48%

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Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets

The following table summarizes the patents:

	June 30, 2016			December 31, 2015
	Carrying Amount	Accumulated Amortization	Net Value	Carrying Amount	Accumulated Amortization	Net Value
Amortizable intangible assets:
Technology	$ 6,745	$ (6,315)	$ 430	$ 6,745	$ (6,154)	$ 591

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Net loss per share (Tables)

6 Months Ended

Jun. 30, 2016

Net loss per share [Abstract]

Schedule of Antidilutive Securities Excluded from Calculation of Earnings Per Share

The following table lists shares and warrants that were excluded from the calculation of diluted earnings per share as the exercise of such options and warrants and the conversion of such preferred shares would be anti-dilutive:

	For the Six Months Ended
	June 30, 2016	June 30, 2015
Stock options	74	85
Warrants	1,756	179
Preferred Stock as if converted
Series A-1 Preferred Stock	-	5
Series B Preferred Stock	-	237
Series C Preferred Stock	-	185
Series D-1 Preferred Stock	-	261
Series D-2 Preferred Stock	-	97

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Derivative Liability (Tables)

6 Months Ended

Jun. 30, 2016

Derivative liability [Abstract]

Fair value assumptions used in valuation techniques

The Company used a Monte Carlo simulation to value the conversion feature with the following assumptions:

	As of June 30, 2016
Common Stock price	$ 1.31
Convertible debt principal amount	$ 200
Term (years)	0.32
Expected volatility	108%
Convertible debt interest rate	24%
Trials (each trial equals 150,000 iterations)	10
Discount to IPO/next round	Based upon a Company pre-money valuation of $5,000

Changes in the market value of the Level 3 derivative liability

Changes in the fair market value of the Level 3 derivative liability for the six-month periods ended June 30, 2016 and June 30, 2015 are as follows:

	For the Six Months Ended
	June 30, 2016	June 30, 2015
Balance at January 1	$ 330	$ -
Net gain on derivative liability	(174)	-
Balance at June 30	$ 156	$ -

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Equity (Tables)

6 Months Ended

Jun. 30, 2016

Stockholders' Equity [Abstract]

Key assumptions for fair value calculation, stock options

The fair value calculations are based on the following assumptions:

	Six Months Ended June 30, 2016	Six Months Ended June 30, 2015
Risk free interest rate	0.04% - 3.19%	0.04% - 3.73%
Expected life (years)	2.82 - 7.00	3.26 - 6.88
Expected volatility	112.75% - 198.90%	93.63% - 198.38%
Expected dividends	None	None

Allocation of stock-based compensation expense related to stock option grants

The following table summarizes the allocation of stock-based compensation expense related to stock option grants for the three and six months ended June 30:

	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
Research and development	$ 15	$ 47	$ 34	$ 113
Sales and marketing	$ 2	$ 34	$ 15	$ 86
General and administrative	$ 19	$ 65	$ 43	$ 145
Director options	$ 6	$ 12	$ 14	$ 27
Total stock-based compensation expense	$ 42	$ 158	$ 106	$ 371

Summary of option activity

A summary of option activity under the Company's plans for the six months ended June 30, 2016 and 2015 is as follows:

Options	2016				2015
	Shares	Weighted Average Exercise Price Per Share	Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value	Shares	Weighted Average Exercise Price Per Share	Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding at January 1,	82	$ 45.35		$ -	57	$ 56.13		$ -
Granted	-	$ -		$ -	29	$ 28.13		$ -
Exercised	-	$ -		$ -	-	$ -		$ -
Forfeited or expired	(8)	$ 42.16		$ -	(1)	$ 37.50		$ -
Outstanding at June 30	74	$ 45.71	3.65	$ -	85	$ 46.75	4.59	$ -
Vested and expected to vest at June 30	72	$ 46.22	3.10	$ -	83	$ 37.50	3.24	$ -
Exercisable at June 30	58	$ 51.10	3.10	$ -	52	$ 56.00	3.56	$ -

Summary of the significant ranges of outstanding and exercisable options

The following table summarizes significant ranges of outstanding and exercisable options as of June 30, 2016:

Range of Exercise Prices	Options Outstanding			Options Exercisable
	Number Outstanding	Weighted Average Remaining Contractual Term (in years)	Weighted Average Exercise Price	Number Outstanding	Weighted Average Exercise Price
$25.00 - $625.00	74	3.65	$ 45.71	58	$ 51.10

Summary of the status of the Company's non-vested shares

A summary of the status of the Company's non-vested shares as of June 30, 2016 is as follows:

Non-vested Shares	Shares	Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2016	25	$28.61
Forfeited	(3)	$28.80
Vested	(6)	$46.22
Non-vested at June 30, 2016	16	$26.42

Information with respect to dividends issued on the Company's preferred stock

The following table summarizes the change in conversion price, the number of shares outstanding as of the conversion date and the number of Common Stock issued upon conversion of the Preferred Stock.

Class of Preferred Stock	Old Conversion Price	Adjusted Conversion Price	Shares Outstanding at Conversion Date	Common shares issued upon conversion
Series A-1	$ 175.00	$ 19.44	976	50
Series B	$ 54.13	$ 12.96	14,042	1,083
Series C	$ 28.13	$ 9.71	5,702	587
Series D-1	$ 28.13	$ 7.24	8,386	1,159
Series D-2	$ 62.50	$ 8.58	6,625	773
Total			35,731	3,652

Summary of the warrants issued

Information with respect to in-kind dividends issued on the Company's Preferred stock for the three and six-month periods ended June 30, 2016 and June 30, 2015 is as follows:

	Dividends				Beneficial Conversion Feature Related to dividends
	Three Months Ended June 30,		Six Months Ended June 30,		Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015	2016	2015	2016	2015
Series A-1	$ 10	$ 17	$ 29	$ 35	$ -	$ -	$ 3	$ -
Series B	182	313	519	615	-	-	73	-
Series C	74	127	211	250	-	-	39	13
Series D-1	108	179	309	324	-	-	78	16
Series D-2	85	149	245	292	-	-	52	-
Total	$ 459	$ 785	$ 1,313	$ 1,516	$ -	$ -	$ 245	$ 29

Status of the warrants outstanding

A summary of the warrant activity for the six months ended June 30 is as follows:

	June 30, 2016		June 30, 2015
	Shares	Weighted Average Exercise Price Per Share	Shares	Weighted Average Exercise Price Per Share
Outstanding at beginning of period	205	$ 35.51	171	$ 36.13
Issued	1,551	$ 2.18	22	$ 28.13
Expired	-	$ -	(13)	$ 62.50
Outstanding at end of period	1,756	$ 5.27	180	$ 34.63
Exercisable at end of period	1,756	$ 5.27	180	$ 34.63

Information with respect to the classes of Preferred Stock

A summary of the status of the warrants outstanding and exercisable as of June 30, 2016 is as follows:

Number of Warrants	Weighted Average Remaining Life	Weighted Average Exercise Price per share
14	0.01	$0.30
105	0.03	$2.06
32	0.01	$0.51
54	0.06	$0.48
1,551	4.38	$1.92
1,756	4.48	$1.85

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Nature of business, basis of presentation and summary of significant accounting policies (Details Textual) $ in Thousands		1 Months Ended
	Jan. 22, 2016	Jan. 31, 2016	Jun. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit			$ (129,395)	$ (127,116)
Cash and Cash Equivalents, at Carrying Value			$ 455	$ 846	$ 409	$ 775
Reverse stock split, description		On January 21, 2016, iSign Solutions Inc (the Company or iSign) filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation (the Certificate of Amendment) with the Secretary of State of the State of Delaware to effect a 1-for-1,250 reverse split of the Company outstanding shares of common stock. The reverse split became effective at 9:01 a.m. on January 22, 2016. The information with respect to common stock for the years ended December 31, 2015 and 2014 have been retroactively restated to give effect to the 1-for-1,250 reverse split.
Stockholders' Equity Note, Stock Split, Conversion Ratio	1,250	1

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Concentrations (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			81.00%	82.00%
Accounts Receivable [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			33.00%	19.00%
Accounts Receivable [Member] | Customer Two[Member]
Concentration Risk [Line Items]
Concentration risk, percentage				32.00%
Accounts Receivable [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			48.00%	31.00%
Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	38.00%	49.00%	49.00%	48.00%
Sales Revenue, Services, Net [Member] | Customer Two[Member]
Concentration Risk [Line Items]
Concentration risk, percentage		11.00%		13.00%
Sales Revenue, Services, Net [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		10.00%	11.00%	19.00%
Sales Revenue, Services, Net [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	38.00%	28.00%	27.00%	16.00%
Sales Revenue, Services, Net [Member] | Customer Five [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			11.00%

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Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Amortizable intangible assets
Finite-Lived Intangible Assets, Net	$ 430	$ 591
Technology [Member]
Amortizable intangible assets
Finite-lived intangible assets, gross	6,745	6,745
Finite-Lived intangible assets, accumulated amortization	(6,315)	(6,154)
Finite-Lived Intangible Assets, Net	$ 430	$ 591

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Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Patent amortization expense	$ 80	$ 86	$ 161	$ 173
Patents impairment	$ 0	$ 0	$ 0	$ 0

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Net loss per share (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Series A Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, shares		5
Series B Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, shares		237
Series C Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, shares		185
Series D One Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, shares		261
Series D Two Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, shares		97
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, shares	74	85
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, shares	1,756	179

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Debt (Details Texual) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended	6 Months Ended
	May 19, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Jun. 30, 2016 USD ($) $ / shares shares	Jun. 30, 2015 $ / shares shares	Dec. 31, 2014 $ / shares shares
Short-term Debt [Line Items]
Number of warrants | shares		205	1,756	180	171
Warrants exercise price | $ / shares		$ 35.51	$ 5.27	$ 34.63	$ 36.13
Fair value of the derivative liability			$ 156
Debt discount amortization			266
Unsecured Convertible Promissory Notes [Member] | Investors and Affiliates [Member]
Short-term Debt [Line Items]
Proceeds from issuance of short-term debt		$ 1,268
Principal amount of unsecured convertible promissory note	$ 1,068		$ 190
Conversion price | $ / shares	$ 1.74
Common shares issued in connection with the conversion of promissory notes | shares	683
Number of warrants | shares	854
Number of common shares callable by warrants | shares	854
Warrants term	5 years
Warrants exercise price | $ / shares	$ 2.175
Terms of debt conversion feature			The note can be converted into shares of our Common Stock at the holders option for a period of 60 days after maturity, at a conversion price based upon a Company pre-money valuation of $5,000. Upon such conversion, the holder would also receive cash payments, payable from 3% of the revenue received by the Company from its European customer, not to exceed three times the aggregate principal amount of $200.
Stated percentage of loans borrowed			24.00%
Promissory notes due date			Aug. 25, 2016
Threshold percentage of stock price trigger			30.00%
Threshold trading days | $ / shares			60
Company pre-money valuation amount			$ 5,000
Percentage of cash payments paid based on each $100,000 of notes converted from the revenue			3.00%
Incremental amount of notes converted into revenue received that serves as basis for calculation of cash payments			$ 200
Fair value of the derivative liability	$ 586
Debt discount amortization			$ 10

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Derivative Liability (Details) - Derivative Financial Instruments, Liabilities [Member] $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($) $ / shares
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Common Stock price | $ / shares	$ 1.31
Convertible debt principal amount | $	$ 200
Term (years)	3 months 25 days
Expected volatility	108.00%
Convertible debt interest rate	24.00%
Trials (each trial equals 150,000 itirations)	10
Discount to IPO/next Round	Based upon a Company pre-money valuation of $5,000

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Derivative Liability (Details Parenthetical) - Derivative Financial Instruments, Liabilities [Member] $ in Thousands	Jun. 30, 2016 USD ($)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Number of itirations in each Monte Carlo simulation trial	150,000
Pre-money valuation	$ 5,000

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Derivative Liability (Details 1) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at end of period	$ 156
Derivative Financial Instruments, Liabilities [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	330
Gain on derivative liability	(174)
Balance at end of period	$ 156

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Derivative Liability (Details Textual) $ in Thousands	Jun. 30, 2016 USD ($)
Derivative Liability, Fair Value, Net [Abstract]
Fair value of the derivative liability	$ 156

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Equity (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Risk-free interest rate, minimum	0.04%	0.04%
Risk-free interest rate, maximum	3.19%	3.73%
Expected volatility, minimum	112.75%	93.69%
Expected volatility, maximum	198.90%	198.38%
Expected dividend yield	$ 0	$ 0
Minimum [Member]
Fair value assumptions, stock options
Expected life	2 years 9 months 25 days	3 years 3 months 4 days
Maximum [Member]
Fair value assumptions, stock options
Expected life	7 years	6 years 10 months 17 days

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Equity (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 42	$ 158	$ 106	$ 371
Research and Development Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	15	47	34	113
Selling and Marketing Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	2	34	15	86
General and Administrative Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	19	65	43	145
Director Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 6	$ 12	$ 14	$ 27

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Equity (Details 2) - USD ($) shares in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Summary of stock options outstanding
Stock Options Outstanding, Beginning Balance	82	57
Stock Options, Granted		29
Stock Options, Exercised
Stock Options, Forfeited, or expired	(8)	(1)
Stock Options Outstanding, Ending Balance	74	85
Stock Options, Vested and expected to vest at ending balance	72	83
Options exercisable	58	52
Weighted Average Exercise Price, Beginning Period	$ 45.35	$ 56.13
Weighted Average Exercise Price, Granted		28.13
Weighted Average Exercise Price, Forfeited, or expired	42.16	37.50
Weighted Average Exercise Price, Ending Period	45.71	46.75
Weighted Average Exercise Price, Vested and expected to vest at ending balance	46.22	37.50
Weighted Average Exercise Price, Exercisable at ending balance	$ 51.10	$ 56.00
Weighted Average Remaining Contractual Term, ending balance	3 years 7 months 24 days	4 years 7 months 24 days
Weighted Average Remaining Contractual Term, vested and expected to vest at ending balance	3 years 1 month 6 days	3 years 2 months 26 days
Weighted Average Remaining Contractual Term, excercisable at ending balance	3 years 1 month 6 days	3 years 6 months 21 days
Aggregate Intrinsic Value, Beginning Balance
Aggregate Intrinsic Value, Granted
Aggregate Intrinsic Value, Exercised
Aggregate Intrinsic Value, Forfeited or expired
Aggregate Intrinsic Value, Ending Balance
Aggregate Intrinsic Value, Vested and expected to vest at ending balance
Aggregate Intrinsic Value, Exercisable at ending balance

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Equity (Details 3) - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract]
Outstanding Options, Weighted Average Exercise Price		$ 28.13
Range One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range Limit	$ 25.00
Exercise Price Range, Upper Range Limit	$ 625.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract]
Number of Outstanding Options	74
Outstanding Options, Weighted Average Remaining Contractual Term	3 years 6 months 21 days
Outstanding Options, Weighted Average Exercise Price	$ 45.71
Exercise Price Range, Number of Exercisable Options	58
Exercisable Options, Weighted Average Exercise Price	$ 51.10

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Equity (Details 4) shares in Thousands	6 Months Ended
	Jun. 30, 2016 $ / shares shares
Equity Instruments, Options, Nonvested Shares Roll-Forward
Non-vested shares, Beginning Balance | shares	25
Non-vested shares, forfeited, or expired | shares	(3)
Non-vested shares, vested | shares	(6)
Stock Options Outstanding, Ending Balance | shares	16
Weighted Average Grant Date Fair Value, Options Nonvested at beginning of period | $ / shares	$ 28.61
Weighted Average Grant Date Fair Value, Options nonvested, forfeited in period | $ / shares	28.80
Weighted Average Grant Date Fair Value, Options nonvested, vested in period | $ / shares	46.22
Weighted Average Grant Date Fair Value, Options nonvested at end of period | $ / shares	$ 26.42

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Equity (Details 5) shares in Thousands	May 19, 2016 $ / shares shares
Shares Outstanding at Conversion Date	35,731
Convertible Preferred Stock, Shares Issued upon Conversion	3,652
Series A Preferred Stock [Member]
Old Conversion Price | $ / shares	$ 175.00
Adjusted Conversion Price | $ / shares	$ 19.44
Shares Outstanding at Conversion Date	976
Convertible Preferred Stock, Shares Issued upon Conversion	50
Series B Preferred Stock [Member]
Old Conversion Price | $ / shares	$ 54.13
Adjusted Conversion Price | $ / shares	$ 12.96
Shares Outstanding at Conversion Date	14,042
Convertible Preferred Stock, Shares Issued upon Conversion	1,083
Series C Preferred Stock [Member]
Old Conversion Price | $ / shares	$ 28.13
Adjusted Conversion Price | $ / shares	$ 9.71
Shares Outstanding at Conversion Date	5,702
Convertible Preferred Stock, Shares Issued upon Conversion	587
Series D One Preferred Stock [Member]
Old Conversion Price | $ / shares	$ 28.13
Adjusted Conversion Price | $ / shares	$ 7.24
Shares Outstanding at Conversion Date	8,386
Convertible Preferred Stock, Shares Issued upon Conversion	1,159
Series D Two Preferred Stock [Member]
Old Conversion Price | $ / shares	$ 62.50
Adjusted Conversion Price | $ / shares	$ 8.58
Shares Outstanding at Conversion Date	6,625
Convertible Preferred Stock, Shares Issued upon Conversion	773

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Equity (Details 6) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Dividends Net of Beneficial Conversion Feature	$ 459	$ 785	$ 1,313	$ 1,516
Accretion of beneficial conversion feature related to dividends			245	29
Series A Preferred Stock [Member]
Dividends Net of Beneficial Conversion Feature	10	17	29	35
Accretion of beneficial conversion feature related to dividends			3
Series B Preferred Stock [Member]
Dividends Net of Beneficial Conversion Feature	182	313	519	615
Accretion of beneficial conversion feature related to dividends			73
Series C Preferred Stock [Member]
Dividends Net of Beneficial Conversion Feature	74	127	211	250
Accretion of beneficial conversion feature related to dividends			39	13
Series D One Preferred Stock [Member]
Dividends Net of Beneficial Conversion Feature	108	179	309	324
Accretion of beneficial conversion feature related to dividends			78	16
Series D Two Preferred Stock [Member]
Dividends Net of Beneficial Conversion Feature	85	149	245	292
Accretion of beneficial conversion feature related to dividends			$ 52

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Equity (Details 7) shares in Thousands	6 Months Ended
	Jun. 30, 2016 $ / shares shares	Jun. 30, 2015 $ / shares shares
Class Of Warrant Or Right Number Of Warrants Or Rights Roll Forward
Number of Warrants Outstanding at beginning of period | shares	205	171
Number of warrants issued | shares	1,551	22
Number Of Warrants Or Rights Expired | shares		(13)
Number of Warrants Outstanding at end of period | shares	1,756	180
Number of Warrants Or Rights Exercisable at end of period | shares	1,756	180
Excercise Price of Warrants Outstanding at beginning of period | $ / shares	$ 35.51	$ 36.13
Exercise Price Of Warrants Issued | $ / shares	2.18	28.13
Exercise Price Of Warrants Expired | $ / shares		62.50
Excercise Price of Warrants Outstanding at end of period | $ / shares	$ 5.27	$ 34.63
Exercise Price Of WarrantsExercisable at end of period | $ / shares	5.27	34.63

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Equity (Details 8) - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Class of Warrant or Right [Line Items]
Number of Warrants Outstanding and Excercisable	1,756	205	180	171
Weighted Average Remaining Life Of Warrants Or Rights	4 years 4 months 17 days
Warrants Weighted Average Exercise Price per share	$ 1.85
Warrants Group One [Member]
Class of Warrant or Right [Line Items]
Number of Warrants Outstanding and Excercisable	14
Weighted Average Remaining Life Of Warrants Or Rights	4 days
Warrants Weighted Average Exercise Price per share	$ 0.30
Warrants Group Two [Member]
Class of Warrant or Right [Line Items]
Number of Warrants Outstanding and Excercisable	105
Weighted Average Remaining Life Of Warrants Or Rights	10 days
Warrants Weighted Average Exercise Price per share	$ 2.06
Warrants Group Three [Member]
Class of Warrant or Right [Line Items]
Number of Warrants Outstanding and Excercisable	32
Weighted Average Remaining Life Of Warrants Or Rights	4 days
Warrants Weighted Average Exercise Price per share	$ 0.51
Warrants Group Four [Member]
Class of Warrant or Right [Line Items]
Number of Warrants Outstanding and Excercisable	54
Weighted Average Remaining Life Of Warrants Or Rights	21 days
Warrants Weighted Average Exercise Price per share	$ 0.48
Warrants Group Five [Member]
Class of Warrant or Right [Line Items]
Number of Warrants Outstanding and Excercisable	1,551
Weighted Average Remaining Life Of Warrants Or Rights	4 years 4 months 17 days
Warrants Weighted Average Exercise Price per share	$ 1.92

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Equity (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Arrangements with Employees and Nonemployees [Abstract]
Estimated average forfeiture rate	11.89%	7.54%
Stock Options, Granted		29
Outstanding Options, Weighted Average Exercise Price		$ 28.13
Stock Options, Exercised
Total unrecognized compensation expense related to non-vested share-based compensation arrangements granted under the plans	$ 107
Unrecognized compensation expense amortization period	1 year 8 months 12 days

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Equity (Details Textual 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	May 19, 2016	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Subsidiary, Sale of Stock [Line Items]
Warrants Weighted Average Exercise Price		$ 5.27	$ 35.51	$ 34.63	$ 36.13
Number of warrants		1,756	205	180	171
Fair value of the derivative liability		$ 156
IPO [Member]
Subsidiary, Sale of Stock [Line Items]
Proceeds from sale of stock, net	$ 1,204
Administrative and other offering expenses	$ 780
Number of shares sold in private placement	690
Warrants Weighted Average Exercise Price	$ 2.175
Warrants, expiration date	May 18, 2021
Public offering price	$ 1.74
Number of warrants	345
Warrants offering price	$ 0.01
Note Conversion [Member]
Subsidiary, Sale of Stock [Line Items]
Proceeds from sale of stock, net	$ 1,188
Number of shares sold in private placement	683
Warrants Weighted Average Exercise Price	$ 2.175
Warrants, expiration date	May 18, 2021
Number of warrants	854
Debt Instrument, Increase, Accrued Interest	$ 120
Fair value of the derivative liability	$ 586
Conversion price	$ 1.74
Deferred Compensation Conversion [Member]
Subsidiary, Sale of Stock [Line Items]
Proceeds from sale of stock, net	$ 498
Number of shares sold in private placement	286
Warrants Weighted Average Exercise Price	$ 2.175
Warrants, expiration date	May 18, 2021
Number of warrants	352
Debt Instrument, Increase, Accrued Interest	$ 59
Fair value of the derivative liability	$ 244
Conversion price	$ 1.74