10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended: September 30, 2019

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.)

2033 Gateway Place, Suite 659, San Jose, CA 95110

(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 ☒   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 ☒   No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check One):

☐	large accelerated filer	☐	accelerated filer	☐	non-accelerated filer	☒	Smaller reporting Company
☐	Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

Yes  ☐   No ☒

Number of shares outstanding of the issuer’s Common Stock as of November 14, 2019: 5,761,980.

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

INDEX

	Page No.
PART I.  FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets at September 30, 2019 (unaudited) and December 31, 2018	1
Condensed Consolidated Statements of Operations for the Three- and Nine-Month Periods Ended September 30, 2019 and 2018 (unaudited)	2
Condensed Consolidated Statements of Stockholders’ Equity (Deficit) for the Nine-Month Periods Ended September 30, 2019 and 2018 (unaudited)	3
Condensed Consolidated Statements of Cash Flows for the Nine-Month Periods Ended September 30, 2019 and 2018 (unaudited)	4
Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3. Quantitative and Qualitative Disclosures About Market Risk	16
Item 4. Controls and Procedures	16
PART II.  OTHER INFORMATION
Item 1. Legal Proceedings	17
Item 1A. Risk Factors	17
Item 2. Unregistered Sale of Securities and Use of Proceeds	17
Item 3. Defaults Upon Senior Securities	17
Item 4. Mine Safety Disclosures	17
Item 5. Other Information	17
Item 6. Exhibits	17
(a) Exhibits	17
Signatures	21

i

PART I–FINANCIAL INFORMATION

Item 1. Financial Statements

iSign Solutions Inc.

Condensed Consolidated Balance Sheets

(In thousands, except par value amounts)

	September 30,			December 31,
	2019			2018
Assets	Unaudited
Current assets:
Cash and cash equivalents	$	37		$	335
Accounts receivable, net of allowance of $0 at September 30, 2019 and $1 at December 31, 2018, respectively		61			84
Prepaid expenses and other current assets		36			46
Total current assets		134			465
Property and equipment, net		9			2
Other assets		5			5
Total assets	$	148		$	472
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	1,249		$	1,280
Short-term debt		2,239			2,210
Accrued compensation		72			81
Other accrued liabilities		744			524
Deferred revenue		293			281
Total current liabilities		4,597			4,376
Deferred revenue long-term		-			36
Other long-term liabilities		613			665
Total liabilities		5,210			5,077
Commitments and contingencies
Stockholders’ equity (deficit):
Common stock, $0.01 par value; 2,000,000 shares authorized; 5,760 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively		58			58
Treasury shares, 5 at September 30, 2019 and December 31, 2018, respectively		(325	)		(325	)
Additional paid-in capital		129,607			129,251
Accumulated deficit		(134,402	)		(133,589	)
Total stockholders’ deficit		(5,062	)		(4,605	)
Total liabilities and stockholders’ deficit	$	148		$	472

See accompanying notes to these Unaudited Condensed Consolidated Financial Statements

1

iSign Solutions Inc.

Condensed Consolidated Statements of Operations

Unaudited

(In thousands, except per share amounts)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
Revenue:
Product	$	45		$	24		$	126		$	97
Maintenance		168			173			512			539
Total revenue		213			197			638			636
Operating costs and expenses:
Cost of sales:
Product		5			2			8			7
Maintenance		23			28			56			46
Research and development		179			166			531			632
Sales and marketing		10			14			63			75
General and administrative		147			179			541			507
Total operating costs and expenses		364			389			1,199			1,267
Loss from operations		(151	)		(192	)		(561	)		(631	)
Warrant expenses on long-term liabilities		(47	)		-			(47	)		-
Other income (expense), net		-			90			14			46
Interest expense:
Related party		(19	)		(9	)		(46	)		(25	)
Other		(46	)		(36	)		(142	)		(100	)
Amortization of debt discount:
Related party		(3	)		(14	)		(8	)		(28	)
Other		(7	)		(34	)		(22	)		(72	)
Loss before income tax expense		(273	)		(195	)		(812	)		(810	)
Income tax expense		-			-			(1	)		(2	)
Net loss	$	(273	)	$	(195	)	$	(813	)	$	(812	)
Basic and diluted net loss per common share	$	(0.05	)	$	(0.03	)	$	(0.14	)	$	(0.14	)
Weighted average common shares outstanding, basic and diluted		5,760			5,760			5,760			5,760

See accompanying notes to these Unaudited Condensed Consolidated Financial Statements

2

iSign Solutions Inc.

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

Unaudited

(In thousands)

	Common Stock				Treasury Stock					Additional Paid-in		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount			Capital		Deficit			Equity (Deficit)
Balance January 1, 2019		5,760	$	58		5	$	(325	)	$	129,251	$	(133,589	)	$	(4,605	)
Stock-based compensation		─		─		─		─			59		─			59
Net loss		─		─		─		─			─		(291	)		(291	)
Balance, March 31, 2019		5,760	$	58		5	$	(325	)	$	129,310	$	(133,880	)	$	(4,837	)
Stock-based compensation		─		─		─		─			48		─			48
Net loss		─		─		─		─			─		(249	)		(249	)
Balance, June 30, 2019		5,760	$	58		5	$	(325	)	$	129,358	$	(134,129	)	$	(5,038	)
Stock-based compensation		─		─		─		─			37		─			37
Warrants issued associated with other long-term labilities		─		─		─		─			212		─			212
Net loss		─		─		─		─			─		(273	)		(273	)
Balance, September 30, 2019		5,760	$	58		5	$	(325	)	$	129,607	$	(134,402	)	$	(5,062	)

	Common Stock				Treasury Stock					Additional Paid-in		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount			Capital		Deficit			Equity (Deficit)
Balance January 1, 2018		5,760	$	58		5	$	(325	)	$	129,027	$	(132,562	)	$	(3,802	)
Stock-based compensation		─		─		─		─			48		─			48
Net loss		─		─		─		─			─		(284	)		(284	)
Balance, March 31, 2018		5,760	$	58		5	$	(325	)	$	129,075	$	(132,846	)	$	(4,038	)
Stock-based compensation		─		─		─		─			27		─			27
Net loss		─		─		─		─			─		(333	)		(333	)
Balance, June 30, 2018		5,760	$	58		5		(325	)	$	129,102	$	(133,179	)	$	(4,344	)
Stock-based compensation		─		─		─		─			68		─			68
Net loss		─		─		─		─			─		(195	)		(195	)
Balance, September 30, 2018		5,760	$	58		5	$	(325	)	$	129,170	$	(133,374	)	$	(4,471	)

See accompanying notes to these Unaudited Condensed Consolidated Financial Statements

3

iSign Solutions Inc.

Condensed Consolidated Statements of Cash Flows

Unaudited

(In thousands)

	Nine Months Ended September 30,
	2019			2018
Cash flows from operating activities:
Net loss	$	(813	)	$	(812	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		49			3
Debt discount amortization		30			100
Loss on disposal of fixed assets		-			8
Stock-based compensation		144			143
Changes in operating assets and liabilities:
Accounts receivable, net		23			(27	)
Prepaid expenses and other current assets		10			(27	)
Accounts payable		(31	)		11
Accrued compensation		(9	)		(61	)
Other accrued and long-term liabilities		332			305
Deferred revenue		(24	)		(44	)
Net cash used in operating  activities		(289	)		(401	)
Cash flows from investing activities: Acquisition of property and equipment		(9	)		-
Net cash used in investing activities		(9	)		-
Cash flows from financing activities:
Proceeds from issuance of short-term debt		-			320
Payment on short-term debt		-			(40	)
Net cash provided by financing activities		-			280
Net decrease in cash and cash equivalents		(298	)		(121	)
Cash and cash equivalents at beginning of period		335			285
Cash and cash equivalents at end of period	$	37		$	164

See accompanying notes to these Unaudited Condensed Consolidated Financial Statements

4

iSign Solutions Inc.

Condensed Consolidated Statements of Cash Flows (Continued)

Unaudited

(In thousands)

	Nine Months Ended September 30,
	2019		2018
Supplementary disclosure of cash flow information:
Interest paid	$	1	$	2
Income tax paid	$	1	$	2
Non-cash financing and investing transactions:
Value of warrants issued on other long-term liabilities	$	212	$	-
Original issue discount on secured convertible promissory notes	$	-	$	64

See accompanying notes to these Unaudited Condensed Consolidated Financial Statements

5

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

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 San Jose, California. The Company’s products include SignatureOne® Ceremony® Server, the iSign® suite of products and services, including iSign® Enterprise, 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, 2018.

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 September 30, 2019, the Company’s accumulated deficit was $134,402. The Company has primarily met its working capital needs through the sale of debt and equity securities. As of September 30, 2019, the Company’s cash balance was $37. 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.

6

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 (continued)

Accounting Changes and Recent Accounting Pronouncements

Accounting Standards Update No. 2019-01, Leases (Topic 842), Codification Improvements. The amendments in this Update include the following items: (1) determining the fair value of the underlying asset by lessors that are not manufacturers or dealers; (2) presentation on the statement of cash flows—sales-type and direct financing leases; and (3) transition disclosures related to Topic 250, Accounting Changes and Error Corrections. The amendments in ASU 2019-01 for Issue 1 affect all lessors that are not manufacturers or dealers (generally financial institutions and captive finance companies); for Issue 2, all lessors that are depository and lending entities within the scope of Topic 942; for Issue 3, all entities that are lessees or lessors. The effective date of the amendments in ASU 2019-01 are for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years.

The Company adopted ASU 2019-01 effective January 1, 2019. The adoption of ASU 2019-01 had no impact on the Company’s financial statements.

Other Accounting Standards Updates issued in 2019 are not currently applicable to the Company, therefore implementation would not be expected to have a material impact 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 September 30,						Total Revenue for the three months ended September 30,						Total Revenue for the nine months ended September 30,
	2019			2018			2019			2018			2019			2018
Customer #1		58	%		68	%		17	%		11	%		18	%		11	%
Customer #2		24	%		17	%		-			-			-			-
Customer #3		16	%		-			16	%		12	%		11	%		12	%
Customer #4		-			-			29	%		28	%		29	%		24	%
Customer #5		-			9	%		17	%		18	%		16	%		16	%
Customer #6		-			-			-			-			-			10	%
Total concentration		98	%		94	%		79	%		69	%		74	%		73	%

7

iSign Solutions Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, except per share amounts)

3. 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 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 would be antidilutive:

	For the Three and Nine Months Ended
	September 30, 2019		September 30, 2018
Stock options		1,077		1,056
Warrants		2,812		1,828

4. Debt

Advances:

In April, May, and June 2018, the Company received, from investors, advances aggregating $115 in cash against certain accounts receivable of the Company. Upon collection of an invoice, the Company would repay the advance to the lenders on a pro rata basis together with a 5% advance fee. The receivables were collected and $40 of the advances were repaid in May 2018, along with $2 in advance fees per the agreement. The advance fees were recorded as interest expense in the quarter ended June 30, 2018. The remaining $75 advances were converted into secured convertible notes in August 2018.

Notes payable:

In August 2018, the Company issued secured convertible promissory notes to investors and affiliates of the Company aggregating $341, of which $205 was paid in cash, $75 was exchanged for the remaining advances described above and $61 was in the form of an Original Issue Discount (“OID”) on these amounts. The secured notes are mandatorily convertible into Common Stock at a conversion rate of the lesser of $0.50 per share or the price per share of Common Stock upon closing a new financing of at least $1,000 in aggregate proceeds. The secured notes bear interest at the rate of 10% per annum, are due December 31, 2019 and are secured by an interest in all the Company’s rights, title and interest in, to and under its intellectual property. Should the secured notes remain outstanding following the maturity date an additional 30% of the note’s principal amount shall become due and payable.

In December 2018, the Company issued short-term unsecured convertible promissory notes to investors and affiliates of the Company aggregating $346 in cash. The short-term notes are mandatorily convertible into Common Stock at a conversion rate of the lesser of $0.50 per share or the price per share of Common Stock, upon closing a new debt and/or equity financing of at least $1,000 in aggregate proceeds. The notes bear interest at the rate of 10% per annum and are due December 31, 2019.

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

In June 2019, one noteholder sold its unsecured note in the amount of $400 plus accrued interest of $72 to six current investors, one of which is a related party. The original note was replaced by the issuance of new notes that continue to bear interest at the rate of 10% per annum and remain due December 31, 2019.

During the three and nine months ended September 30, 2019, the Company accrued $65 and $188 of interest expense, of which $19 and $46 was to related parties and $46 and $142 was to other investors. During the three and nine months ended September 30, 2018, the Company accrued $45 and $125 of interest expense, of which $9 and $25 was to related parties and $36 and $100 was to other investors.

8

iSign Solutions Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, except per share amounts)

4. Debt (continued)

The Company recorded $10 and $30 in debt discount amortization for the three and nine months ended September 30, 2019. The Company recorded $48 and $100 in debt discount amortization for the three and nine months ended September 30, 2018.

5. Stockholders’ 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 September 30, 2019 and 2018, was approximately 13.4% and 5.91%, 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 Company granted 40 stock options during the nine months ended September 30, 2019 at a weighted average exercise price of $0.50 per share. The Company granted 393 stock options during the nine months ended September 30, 2018 at a weighted average exercise price of $0.78 per share. There were no stock options exercised during the three and nine months ended September 30, 2019 and 2018. The fair value calculations for the stock options granted are based on the following assumptions:

	Nine Months Ended September 30, 2019			Nine Months Ended September 30, 2018
Risk free interest rate		2.30	%		1.91	%
Expected life (years)		6.13			6.30
Expected volatility		191.65	%		180.51	%
Expected dividends		None			None

The following table summarizes the allocation of stock-based compensation expense related to stock option grants for the three and nine-month periods ended September 30, 2019 and 2018.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Research and development	$	6	$	18	$	24	$	72
General and administrative		25		43		98		56
Director options		6		8		22		15
Stock-based compensation expense	$	37	$	69	$	144	$	143

9

iSign Solutions Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, except per share amounts)

5. Stockholders’ Equity (Deficit) (continued)

A summary of option activity under the Company’s plans as of September 30, 2019 and 2018 is as follows:

	2019								2018
Options	Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value		Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1,		1,037	$	1.65			$	-		736		$	3.65			$	-
Granted		40	$	0.50			$	-		393		$	0.78			$	-
Forfeited or expired		-	$	-			$	-		(73	)	$	14.86			$	-
Outstanding at September 30		1,077	$	1.61		5.22	$	-		1,056		$	1.81		6.07	$	-
Vested and expected to vest at September 30		1,072	$	1.61		5.22	$	-		1,039		$	1.78		6.06	$	-
Exercisable at September 30		575	$	2.45		4.95	$	-		256		$	5.46		5.03	$	-

The following table summarizes significant ranges of outstanding and exercisable options as of September 30, 2019:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (in years)		Weighted Average Exercise Price Per Share		Number Outstanding		Weighted Average Exercise Price Per Share
$0.01 – $25.00		1,049		5.31	$	0.63		547	$	0.61
$25.01 - $625.00		28		1.50	$	38.81		28	$	38.81
Total		1,077		5.22	$	1.61		575	$	2.45

The following table summarizes the Company’s non-vested option shares as of September 30, 2019:

Non-vested Option Shares	Shares			Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2019		718		$	0.64
Granted		40		$	0.50
Vested		(255	)	$	0.63
Non-vested at September 30, 2019		503		$	0.65

As of September 30, 2019, there was $112 of total 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 1.44 years.

10

iSign Solutions Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, except per share amounts)

5. Stockholders’ Equity (Deficit) (continued)

Warrants

On February 2, 2019, the Company issued warrants to purchase 985 shares of common stock to employees and consultants associated with their unpaid salaries and consulting fees. The warrants are only exercisable on a cashless basis if the warrant holder elects to exchange their deferred salaries and consulting fees. The Company ascribed a value of $212 to the warrants which is booked as a discount to other long-term liabilities in the balance sheet. The value of the warrants will be amortized to warrant expenses on long−term liabilities in the statement of operations over the life of the warrants. The warrants have a three year life and an exercise price of $0.50 per share.

As of September 30, 2019, the Company has charged $47 of the warrant value to expense.

A summary of the warrant activity for the nine months ended September 30 is as follows:

	September 30, 2019				September 30, 2018
	Shares		Weighted Average Exercise Price Per Share		Shares			Weighted Average Exercise Price Per Share
Outstanding at beginning of period		1,828	$	2.08		1,878		$	2.46
Issued		985	$	0.50
Expired		-	$	-		(50	)	$	15.63
Outstanding at end of period		2,813	$	1.53		1,828		$	1.59
Exercisable at end of period		2,813	$	1.53		1,828		$	1.59

A summary of the status of the warrants outstanding and exercisable as of September 30, 2019 is as follows:

Number of Shares Issuable Under Warrants		Weighted Average Remaining Life (years)		Weighted Average Exercise Price per share
	1,550		1.66	$	2.18
	278		0.01	$	1.63
	985		2.39	$	0.50
	2,813		1.75	$	1.53

11

iSign Solutions Inc.

(In thousands, except per share amounts)

FORM 10-Q

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, 2018, 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, 2018.

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 software 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, 2018, net losses aggregated $2,974, and, at September 30, 2019, the Company’s accumulated deficit was $134,402.

For the three months ended September 30, 2019, total revenue was $213, an increase of $16, or 8%, compared to total revenue of $197 in the prior year period. For the nine months ended September 30, 2019, total revenue was $638, an increase of $2, or 0.3%, compared to total revenue of $636 in the prior year period. The increases in revenue for the three and nine months ended September 30, 2019 are due primarily to increases in product revenue compared to the prior year periods.

12

iSign Solutions Inc.

(In thousands, except per share amounts)

FORM 10-Q

The net loss for the three months ended September 30, 2019 was $273, an increase of $78, or 40%, compared to a net loss of $195 in the prior year period. The $78 increase in the net loss was primarily due to an $86 refund from an insurance carrier in the prior year period. For the nine months ended September 30, 2019 the net loss was $813, compared to a net loss of $812 in the prior year period.

In June 2019, one noteholder sold its unsecured note in the amount of $400 plus accrued interest of $72 to six current investors, one of which is a related party. The original note was replaced by the issuance of new notes that continue to bear interest at the rate of 10% per annum and remain due December 31, 2019.

Critical Accounting Policies and Estimates

Refer to Item 7, “Management Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s 2018 Form 10-K.

Effect of Recent Accounting Pronouncements

Accounting Standards Updates issued in 2019 are being evaluated by the Company, however, implementation 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 September 30, 2019, product revenue was $45, an increase of $21, or 88%, compared to product revenue of $24 in the prior year period. The increase was primarily due to an increase in product and billable engineering revenue. For the three months ended September 30, 2019, maintenance revenue was $168, a decrease of $5, or 3%, compared to maintenance revenue of $173 in the prior year period. This decrease is primarily due to non-renewal of certain maintenance contracts.

For the nine months ended September 30, 2019, product revenue was $126, an increase of $29, or 30%, compared to product revenue of $97 in the prior year period. The increase in product revenue is primarily attributable to the factors discussed for the three month period above. For the nine months ended September 30, 2019, maintenance revenue was $512, a decrease of $27, or 5%, compared to maintenance revenue of $539 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 September 30, 2019, cost of sales was $28, a decrease of $2, or 7%, compared to cost of sales of $30 in the prior year period. The decrease in cost of sales was primarily due to a decrease in direct labor related to maintenance contracts partially offset by an increase in labor costs associated with billable engineering revenue during the three months ended September 30, 2019, compared to the prior year period.

For the nine months ended September 30, 2019, cost of sales was $64, an increase of $11, or 21%, compared to cost of sales of $53 in the prior year period. The increase in cost of sales was due to an increase in direct labor related to maintenance contracts and billable engineering revenue compared to the prior year period.

13

iSign Solutions Inc.

(In thousands, except per share amounts)

FORM 10-Q

Operating expenses

Research and Development Expenses

For the three months ended September 30, 2019, research and development expense was $179, an increase of $13, or 8%, compared to research and development expense of $166 in the prior year period. Research and development expenses consist primarily of salaries and related costs, outside engineering, maintenance items, and allocated facilities expenses. Research and development expenses increased primarily due an increase outside engineering costs. Total expenses, before allocations for the three months ended September 30, 2019, were $211, a decrease of $16, or 7%, compared to $227 in the prior year period.

For the nine months ended September 30, 2019, research and development expense was $531, a decrease of $101, or 16%, compared to research and development expense of $632 in the prior year period. The most significant factors in the decrease include a decrease in stock option expense and other overhead expense, including professional services and allocated facilities expense. Total expenses, before allocations to cost of sales, for the nine months ended September 30, 2019, were $605, a decrease of $124, or 17%, compared to $729 in the prior year period.

Sales and Marketing Expense

For the three months ended September 30, 2019, sales and marketing expense was $10, a decrease of $4, or 29%, compared to sales and marketing expense of $14 in the prior year period. For the nine months ended September 30, 2019, sales and marketing expense was $63, a decrease of $12, or 16%, compared to sales and marketing expense of $75 in the prior year period. These decreases were primarily attributable to decreases in professional services and commissions compared to the prior year periods.

General and Administrative Expense

For the three months ended September 30, 2019, general and administrative expense was $147, a decrease of $32, or 18%, compared to general and administrative expense of $179 in the prior year period. The decrease was primarily due to reductions in stock option compensation expense and other general operating expenses compared to the prior year period.

For the nine months ended September 30, 2019, general and administrative expense was $541, an increase of $34, or 7%, compared to general and administrative expense of $507 in the prior year period. The increase was primarily due to increased stock option compensation expense offset by reductions in other operating expenses compared to the prior year period.

Other Income and Expense, net

For the three months ended September 30, 2019, other income and expense, net was $0, a decrease of $90, or 100% compared to $90 in the prior year period. In the prior year period the Company recorded an $86 refund from the insurance carrier of its Directors and Officers insurance as the result of an audit by the State of California. For the nine-months ended September 30, 2019 other income and expense, net was $14, a decrease of $32, or 70% compared to $46 in the prior year period. Over the current nine months the Company collected approximately $13 of accounts receivable written off in the prior year while the insurance refund from the prior year was partially offset by a termination settlement fee on the Company’s prior office lease. In addition, the company expensed $47 in warrant value associated with other long-term liabilities.

For the three months ended September 30, 2019, interest expense was $65, an increase of $20, or 44% compared to interest expense of $45 in the prior year period. For the nine months ended September 30, 2019, interest expense was $188, an increase of $63, or 50%, compared to interest expense of $125 in the prior year period. The increase in interest expense is primarily due to the increase in the amount of debt outstanding for the three and nine months ended September 30, 2019 compared to the prior year period. In addition, the company expensed $47 in warrant value associated with other long-term liabilities.

14

iSign Solutions Inc.

(In thousands, except per share amounts)

FORM 10-Q

Amortization of debt discount was $10 and $30 for the three and nine month periods ended September 30, 2019 compared to $48 and $100 in the same periods of the prior year, respectively. The decrease was due to the extension of the maturity date of the Company’s debt to December 31, 2019.

Liquidity and Capital Resources

At September 30, 2019, cash and cash equivalents totaled $37, compared to cash and cash equivalents of $335 at December 31, 2018. The decrease in cash was primarily due to net cash used in operating activities of $289 and $9 used in investing activities. At September 30, 2019, total current assets were $134, compared to total current assets of $465 at December 31, 2018. At September 30, 2019, the Company’s principal sources of funds included its aggregated cash and cash equivalents of $37. 

At September 30, 2019, accounts receivable net, was $61, a decrease of $23, or 27%, compared to accounts receivable net of $84 at December 31, 2018. The decrease is due primarily to the timing of billings and collections during the nine months ended September 30, 2019.

At September 30, 2019, prepaid expenses and other current assets were $36, a decrease of $10, or 22%, compared to prepaid expenses and other current assets of $46 at December 31, 2018. The decrease is due primarily to the expensing of prepaid assets in excess of new prepaid assets acquired during the period.

At September 30, 2019, accounts payable was $1,249, a decrease of $31, or 2%, compared to accounts payable of $1,280 at December 31, 2018. At September 30, 2019, accrued compensation was $72, a decrease of $9, or 11%, compared to accrued compensation of $81 at December 31, 2018. The decreases are due primarily to cost saving measures put in place by the Company. Other accrued liabilities were $744, an increase of $220, or 42%, from $524 at December 31, 2018 due primarily to accrued interest expense on the Company’s short –term debt and deferred professional services.

At September 30, 2019, deferred revenue was $293, a decrease of $24, or 8%, compared to deferred revenue of $317 at December 31, 2018. 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.

At September 30, 2019, total current liabilities were $4,597, an increase of $221, or 5%, compared to total current liabilities of $4,376 at December 31, 2018.

The Company recorded $10 and $30 in debt discount amortization for the three and nine months ended September 30, 2019, respectively, related to the debt financings.

The Company incurred $65 and $188, respectively, of interest expense for the three and nine months ended September 30, 2019, of which $0 and $1, respectively were paid in cash.

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.

15

iSign Solutions Inc.

(In thousands, except per share amounts)

FORM 10-Q

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 nine months ended September 30, 2019.

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 nine months ended September 30, 2019 and 2018, foreign currency translation gains and losses were insignificant.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

The Company carried out an evaluation as of the end of the period covered by this report, 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 and because of the material weaknesses in our internal control over financial reporting described below, the Chief Executive Officer and the Chief Financial Officer have concluded that our disclosure controls and procedures were not effective to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act (1) is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and (2) 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.

Management identified the following control deficiencies that constitute material weaknesses that are not fully remediated as of the filing date of this report:

As a small company with limited resources that are mainly focused on the development and sales of software products and services, iSign does not employ a sufficient number of staff in its finance department to possess an optimal segregation of duties or to provide optimal levels of oversight. This has resulted in certain audit adjustments and management believes that there may be a possibility for a material misstatement to occur in future periods while it employs the current number of personnel in its finance department.

The Company does not expect that its disclosure controls and procedures will prevent all error and all 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 September 30, 2019 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

16

iSign Solutions Inc.

(In thousands, except per share amounts)

FORM 10-Q

Part II-Other Information

Item 1. Legal Proceedings.

None.

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).
3.5	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.

17

iSign Solutions Inc.

(In thousands, except per share amounts)

FORM 10-Q

Exhibit Number	Document
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 20, 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.
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.
3.13	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.

18

iSign Solutions Inc.

(In thousands, except per share amounts)

FORM 10-Q

Exhibit Number	Document
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.
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 19, 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 19, 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 19, 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 19, 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 19, 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.

19

iSign Solutions Inc.

(In thousands, except per share amounts)

FORM 10-Q

Exhibit Number	Document
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.
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.
10.71	Form of Subscription Agreement dated July 23, 2015, incorporated herein by reference to Exhibit 10.71 to the Company’s Quarterly Report on Form 10-Q filed November 16, 2015.
10.72	Note and Warrant Purchase Agreement dated November 3, 2016, incorporated herein by reference to Exhibit 10.72 to the Company’s Quarterly Report on Form 10-Q filed August 14, 2017.
10.73	Form of Unsecured Convertible Promissory Note dated November 3, 2016, incorporated herein by reference to Exhibit 10.73 to the Company’s Quarterly Report on Form 10-Q filed August 14, 2017.
10.74	Note Purchase Agreement dated May 23, 2017, incorporated herein by reference to Exhibit 10.74 to the Company’s Quarterly Report on Form 10-Q filed August 14, 2017.
10.75	Form of Secured Convertible Promissory Note dated May 23, 2017, incorporated herein by reference to Exhibit 10.75 to the Company’s Quarterly Report on Form 10-Q filed August 14, 2017.
*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
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith

20

iSign Solutions Inc.

(In thousands, except per share amounts)

FORM 10-Q

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

November 14, 2019	/s/ Andrea Goren
Date	Andrea Goren
	(Principal Financial Officer and Officer Duly Authorized to Sign on Behalf of the Registrant)

21

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: November 14, 2019

/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: November 14, 2019

/s/ 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 September 30, 2019 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: November 14, 2019
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 September 30, 2019 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: November 14, 2019
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.

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Stockholders' Equity (Deficit) (Details 2) - Option [Member] - USD ($) shares in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Shares
Outstanding, Beginning balance	1,037	736
Granted	40	393
Forfeited or expired		(73)
Outstanding, Ending Balance	1,077	1,056
Vested and expected to vest, Ending balance	1,072	1,039
Exercisable, Ending balance	575	256
Weighted Average Exercise Price Per share
Outstanding, Beginning balance	$ 1.65	$ 3.65
Granted	0.50	0.78
Forfeited or expired		14.86
Outstanding, Ending balance	1.61	1.81
Vested and expected to vest, Ending balance	1.61	1.78
Exercisable, Ending balance	$ 2.45	$ 5.46
Weighted Average Remaining Contractual Term (Years)
Outstanding, Ending balance	5 years 2 months 19 days	6 years 26 days
Vested and expected to vest, Ending balance	5 years 2 months 19 days	6 years 22 days
Exercisable, Ending balance	4 years 11 months 12 days	5 years 11 days
Aggregate Intrinsic Value
Outstanding, Beginning balance
Granted
Forfeited or expired
Outstanding, Ending balance
Vested and expected to vest, Ending balance
Exercisable, Ending balance

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Stockholders' Equity (Deficit) (Details 6) shares in Thousands	9 Months Ended
	Sep. 30, 2019 $ / shares shares
Class of Warrant or Right [Line Items]
Number of Shares Issuable Under Warrants | shares	2,813
Weighted Average Remaining Life (years)	1 year 9 months
Weighted Average Exercise Price per share | $ / shares	$ 1.53
Warrants Group One [Member]
Class of Warrant or Right [Line Items]
Number of Shares Issuable Under Warrants | shares	1,550
Weighted Average Remaining Life (years)	1 year 7 months 28 days
Weighted Average Exercise Price per share | $ / shares	$ 2.18
Warrants Group Two [Member]
Class of Warrant or Right [Line Items]
Number of Shares Issuable Under Warrants | shares	278
Weighted Average Remaining Life (years)	4 days
Weighted Average Exercise Price per share | $ / shares	$ 1.63
Warrants Group Three [Member]
Class of Warrant or Right [Line Items]
Number of Shares Issuable Under Warrants | shares	985
Weighted Average Remaining Life (years)	2 years 4 months 20 days
Weighted Average Exercise Price per share | $ / shares	$ 0.50

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, net of allowance	$ 0	$ 1
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	2,000,000	2,000,000
Common stock, shares issued	5,760	5,760
Common stock, shares outstanding	5,760	5,760
Treasury shares	5	5

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Nature of Business and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Nature of Business and Summary of Significant Accounting Policies

1. Nature of business and summary of significant accounting policies

Nature of Business

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 San Jose, California. The Company's products include SignatureOne® Ceremony® Server, the iSign® suite of products and services, including iSign® Enterprise, 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, 2018.

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 September 30, 2019, the Company's accumulated deficit was $134,402. The Company has primarily met its working capital needs through the sale of debt and equity securities. As of September 30, 2019, the Company's cash balance was $37. 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 Standards Update No. 2019-01, Leases (Topic 842), Codification Improvements. The amendments in this Update include the following items: (1) determining the fair value of the underlying asset by lessors that are not manufacturers or dealers; (2) presentation on the statement of cash flows—sales-type and direct financing leases; and (3) transition disclosures related to Topic 250, Accounting Changes and Error Corrections. The amendments in ASU 2019-01 for Issue 1 affect all lessors that are not manufacturers or dealers (generally financial institutions and captive finance companies); for Issue 2, all lessors that are depository and lending entities within the scope of Topic 942; for Issue 3, all entities that are lessees or lessors. The effective date of the amendments in ASU 2019-01 are for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years.

The Company adopted ASU 2019-01 effective January 1, 2019. The adoption of ASU 2019-01 had no impact on the Company's financial statements.

Other Accounting Standards Updates issued in 2019 are not currently applicable to the Company, therefore implementation would not be expected to have a material impact on the Company's financial position, results of operations and cash flows.

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Debt

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Debt

4. Debt

Advances:

In April, May, and June 2018, the Company received, from investors, advances aggregating $115 in cash against certain accounts receivable of the Company. Upon collection of an invoice, the Company would repay the advance to the lenders on a pro rata basis together with a 5% advance fee. The receivables were collected and $40 of the advances were repaid in May 2018, along with $2 in advance fees per the agreement. The advance fees were recorded as interest expense in the quarter ended June 30, 2018. The remaining $75 advances were converted into secured convertible notes in August 2018.

Notes payable:

In August 2018, the Company issued secured convertible promissory notes to investors and affiliates of the Company aggregating $341, of which $205 was paid in cash, $75 was exchanged for the remaining advances described above and $61 was in the form of an Original Issue Discount ("OID") on these amounts. The secured notes are mandatorily convertible into Common Stock at a conversion rate of the lesser of $0.50 per share or the price per share of Common Stock upon closing a new financing of at least $1,000 in aggregate proceeds. The secured notes bear interest at the rate of 10% per annum, are due December 31, 2019 and are secured by an interest in all the Company's rights, title and interest in, to and under its intellectual property. Should the secured notes remain outstanding following the maturity date an additional 30% of the note's principal amount shall become due and payable.

In December 2018, the Company issued short-term unsecured convertible promissory notes to investors and affiliates of the Company aggregating $346 in cash. The short-term notes are mandatorily convertible into Common Stock at a conversion rate of the lesser of $0.50 per share or the price per share of Common Stock, upon closing a new debt and/or equity financing of at least $1,000 in aggregate proceeds. The notes bear interest at the rate of 10% per annum and are due December 31, 2019.

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

In June 2019, one noteholder sold its unsecured note in the amount of $400 plus accrued interest of $72 to six current investors, one of which is a related party. The original note was replaced by the issuance of new notes that continue to bear interest at the rate of 10% per annum and remain due December 31, 2019.

During the three and nine months ended September 30, 2019, the Company accrued $65 and $188 of interest expense, of which $19 and $46 was to related parties and $46 and $142 was to other investors. During the three and nine months ended September 30, 2018, the Company accrued $45 and $125 of interest expense, of which $9 and $25 was to related parties and $36 and $100 was to other investors.

The Company recorded $10 and $30 in debt discount amortization for the three and nine months ended September 30, 2019. The Company recorded $48 and $100 in debt discount amortization for the three and nine months ended September 30, 2018.

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Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Schedule of antidilutive excluded from calculation of earnings per share

	For the Three and Nine Months Ended
	September 30, 2019		September 30, 2018
Stock options		1,077		1,056
Warrants		2,812		1,828

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Net Loss Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Stock options [Member]
Anti-diluted earnings per share of stock options and warrants shares	1,077	1,056	1,077	1,056
Warrants [Member]
Anti-diluted earnings per share of stock options and warrants shares	2,812	1,828	2,812	1,828

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Debt (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended					3 Months Ended		9 Months Ended
	Dec. 31, 2018	Aug. 31, 2018	Jun. 30, 2018	May 31, 2018	Apr. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Aggregating amount of debt			$ 115	$ 115	$ 115
Debt instrument, description								Upon collection of an invoice, the Company would repay the advance to the lenders on a pro rata basis together with a 5% advance fee. The receivables were collected and $40 of the advances were repaid in May 2018, along with $2 in advance fees per the agreement. The advance fees were recorded as interest expense in the quarter ended June 30, 2018. The remaining $75 advances were converted into secured convertible notes in August 2018.
Secured notes due date								Dec. 31, 2019
Accrued interest expense						$ 65	$ 45	$ 188	$ 125
Accrued interest to related parties						19	9	46	25
Accrued Interest to other investors						46	36	142	100
Amortization of debt discount						$ 10	$ 48	$ 30	$ 100
Unsecured notes										$ 400
Accrued interest										$ 72
Interest rate										10.00%
Secured Convertible Promissory Notes [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Aggregating amount of debt	$ 346	$ 205
Debt instrument, description		The maturity date an additional 30% of the note's principal amount shall become due and payable.
Issued secured convertible promissory notes		$ 341
Conversion rate per shares	$ 0.50	$ 0.50
Aggregate proceeds of new financing	$ 1,000	$ 1,000
Secured notes bear interest rate	10.00%	10.00%
Secured notes due date	Dec. 31, 2019	Dec. 31, 2019
Original issue discounts		$ 61
Amount exchanged for advances		$ 75

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Stockholders' Equity (Deficit)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Stockholders' Equity (Deficit)

5. Stockholders' 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 September 30, 2019 and 2018, was approximately 13.4% and 5.91%, 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 Company granted 40 stock options during the nine months ended September 30, 2019 at a weighted average exercise price of $0.50 per share. The Company granted 393 stock options during the nine months ended September 30, 2018 at a weighted average exercise price of $0.78 per share. There were no stock options exercised during the three and nine months ended September 30, 2019 and 2018. The fair value calculations for the stock options granted are based on the following assumptions:

	Nine Months Ended September 30, 2019			Nine Months Ended September 30, 2018
Risk free interest rate		2.30	%		1.91	%
Expected life (years)		6.13			6.30
Expected volatility		191.65	%		180.51	%
Expected dividends		None			None

The following table summarizes the allocation of stock-based compensation expense related to stock option grants for the three and nine-month periods ended September 30, 2019 and 2018.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Research and development	$	6	$	18	$	24	$	72
General and administrative		25		43		98		56
Director options		6		8		22		15
Stock-based compensation expense	$	37	$	69	$	144	$	143

A summary of option activity under the Company's plans as of September 30, 2019 and 2018 is as follows:

	2019								2018
Options	Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value		Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1,		1,037	$	1.65			$	-		736		$	3.65			$	-
Granted		40	$	0.50			$	-		393		$	0.78			$	-
Forfeited or expired		-	$	-			$	-		(73	)	$	14.86			$	-
Outstanding at September 30		1,077	$	1.61		5.22	$	-		1,056		$	1.81		6.07	$	-
Vested and expected to vest at September 30		1,072	$	1.61		5.22	$	-		1,039		$	1.78		6.06	$	-
Exercisable at September 30		575	$	2.45		4.95	$	-		256		$	5.46		5.03	$	-

The following table summarizes significant ranges of outstanding and exercisable options as of September 30, 2019:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (in years)		Weighted Average Exercise Price Per Share		Number Outstanding		Weighted Average Exercise Price Per Share
$0.01 – $25.00		1,049		5.31	$	0.63		547	$	0.61
$25.01 - $625.00		28		1.50	$	38.81		28	$	38.81
Total		1,077		5.22	$	1.61		575	$	2.45

The following table summarizes the Company's non-vested option shares as of September 30, 2019:

Non-vested Option Shares	Shares			Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2019		718		$	0.64
Granted		40		$	0.50
Vested		(255	)	$	0.63
Non-vested at September 30, 2019		503		$	0.65

As of September 30, 2019, there was $112 of total 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 1.44 years.

Warrants

On February 2, 2019, the Company issued warrants to purchase 985 shares of common stock to employees and consultants associated with their unpaid salaries and consulting fees. The warrants are only exercisable on a cashless basis if the warrant holder elects to exchange their deferred salaries and consulting fees. The Company ascribed a value of $212 to the warrants which is booked as a discount to other long-term liabilities in the balance sheet. The value of the warrants will be amortized to warrant expenses on long−term liabilities in the statement of operations over the life of the warrants. The warrants have a three year life and an exercise price of $0.50 per share.

As of September 30, 2019, the Company has charged $47 of the warrant value to expense.

A summary of the warrant activity for the nine months ended September 30 is as follows:

	September 30, 2019				September 30, 2018
	Shares		Weighted Average Exercise Price Per Share		Shares			Weighted Average Exercise Price Per Share
Outstanding at beginning of period		1,828	$	2.08		1,878		$	2.46
Issued		985	$	0.50
Expired		-	$	-		(50	)	$	15.63
Outstanding at end of period		2,813	$	1.53		1,828		$	1.59
Exercisable at end of period		2,813	$	1.53		1,828		$	1.59

A summary of the status of the warrants outstanding and exercisable as of September 30, 2019 is as follows:

Number of Shares Issuable Under Warrants		Weighted Average Remaining Life (years)		Weighted Average Exercise Price per share
	1,550		1.66	$	2.18
	278		0.01	$	1.63
	985		2.39	$	0.50
	2,813		1.75	$	1.53

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, 2018, 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.

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Stockholders' Equity (Deficit) (Tables)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Schedule of fair value calculations for the stock options granted

	Nine Months Ended September 30, 2019			Nine Months Ended September 30, 2018
Risk free interest rate		2.30	%		1.91	%
Expected life (years)		6.13			6.30
Expected volatility		191.65	%		180.51	%
Expected dividends		None			None

Schedule of allocation of stock-based compensation expense

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Research and development	$	6	$	18	$	24	$	72
General and administrative		25		43		98		56
Director options		6		8		22		15
Stock-based compensation expense	$	37	$	69	$	144	$	143

Schedule of option activity under the Company's plans

	2019								2018
Options	Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value		Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1,		1,037	$	1.65			$	-		736		$	3.65			$	-
Granted		40	$	0.50			$	-		393		$	0.78			$	-
Forfeited or expired		-	$	-			$	-		(73	)	$	14.86			$	-
Outstanding at September 30		1,077	$	1.61		5.22	$	-		1,056		$	1.81		6.07	$	-
Vested and expected to vest at September 30		1,072	$	1.61		5.22	$	-		1,039		$	1.78		6.06	$	-
Exercisable at September 30		575	$	2.45		4.95	$	-		256		$	5.46		5.03	$	-

Schedule of significant ranges of outstanding and exercisable options

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (in years)		Weighted Average Exercise Price Per Share		Number Outstanding		Weighted Average Exercise Price Per Share
$0.01 – $25.00		1,049		5.31	$	0.63		547	$	0.61
$25.01 - $625.00		28		1.50	$	38.81		28	$	38.81
Total		1,077		5.22	$	1.61		575	$	2.45

Schedule of the company's non-vested shares

Non-vested Option Shares	Shares			Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2019		718		$	0.64
Granted		40		$	0.50
Vested		(255	)	$	0.63
Non-vested at September 30, 2019		503		$	0.65

Schedule of warrant activity

	September 30, 2019				September 30, 2018
	Shares		Weighted Average Exercise Price Per Share		Shares			Weighted Average Exercise Price Per Share
Outstanding at beginning of period		1,828	$	2.08		1,878		$	2.46
Issued		985	$	0.50
Expired		-	$	-		(50	)	$	15.63
Outstanding at end of period		2,813	$	1.53		1,828		$	1.59
Exercisable at end of period		2,813	$	1.53		1,828		$	1.59

Schedule of warrants outstanding and exercisable

Number of Shares Issuable Under Warrants		Weighted Average Remaining Life (years)		Weighted Average Exercise Price per share
	1,550		1.66	$	2.18
	278		0.01	$	1.63
	985		2.39	$	0.50
	2,813		1.75	$	1.53

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Stockholders' Equity (Deficit) (Details 3) shares in Thousands	9 Months Ended
	Sep. 30, 2019 $ / shares shares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options Outstanding, Number Outstanding | shares	1,077
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	5 years 2 months 19 days
Options Outstanding, Weighted Average Exercise Price	$ 1.61
Options Exercisable, Number Outstanding | shares	575
Options Exercisable, Weighted Average Exercise Price	$ 2.45
$0.01 - $25.00 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Range Limit	0.01
Range of Exercise Prices, Upper Range Limit	$ 25.00
Options Outstanding, Number Outstanding | shares	1,049
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	5 years 3 months 22 days
Options Outstanding, Weighted Average Exercise Price	$ 0.63
Options Exercisable, Number Outstanding | shares	547
Options Exercisable, Weighted Average Exercise Price	$ 0.61
$25.01 - $625.00 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Range Limit	25.01
Range of Exercise Prices, Upper Range Limit	$ 625.00
Options Outstanding, Number Outstanding | shares	28
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	1 year 6 months
Options Outstanding, Weighted Average Exercise Price	$ 38.81
Options Exercisable, Number Outstanding | shares	28
Options Exercisable, Weighted Average Exercise Price	$ 38.81

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Stockholders' Equity (Deficit) (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Feb. 02, 2019
Stockholders' Equity (Deficit) (Textual)
Total unrecognized compensation cost	$ 112
Weighted average period	1 year 5 months 9 days
Estimated average forfeiture rate	13.40%	5.91%
Ascribed a value of warrants	$ 47		$ 212
Exercise price			$ 0.50
Warrants term	3 years
Warrants to purchase			985
Stock options [Member]
Stockholders' Equity (Deficit) (Textual)
Granted, shares	40	393
Granted, weighted average exercise price per share	$ 0.50	$ 0.78

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 37	$ 335
Accounts receivable, net of allowance of $0 at September 30, 2019 and $1 at December 31, 2018, respectively	61	84
Prepaid expenses and other current assets	36	46
Total current assets	134	465
Property and equipment, net	9	2
Other assets	5	5
Total assets	148	472
Current liabilities:
Accounts payable	1,249	1,280
Short-term debt	2,239	2,210
Accrued compensation	72	81
Other accrued liabilities	744	524
Deferred revenue	293	281
Total current liabilities	4,597	4,376
Deferred revenue long-term		36
Other long-term liabilities	613	665
Total liabilities	5,210	5,077
Commitments and contingencies
Stockholders’ equity (deficit):
Common stock, $0.01 par value; 2,000,000 shares authorized; 5,760 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	58	58
Treasury shares, 5 at September 30, 2019 and December 31, 2018, respectively	(325)	(325)
Additional paid-in capital	129,607	129,251
Accumulated deficit	(13,440)	(133,589)
Total stockholders’ deficit	(5,062)	(4,605)
Total liabilities and stockholders’ deficit	$ 148	$ 472

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss	$ (813)	$ (812)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	49	3
Debt discount amortization	30	100
Loss on disposal of fixed assets		8
Stock-based compensation	144	143
Changes in operating assets and liabilities:
Accounts receivable, net	23	(27)
Prepaid expenses and other current assets	10	(27)
Accounts payable	(31)	11
Accrued compensation	(9)	(61)
Other accrued and long-term liabilities	332	305
Deferred revenue	(24)	(44)
Net cash used in operating activities	(289)	(401)
Cash flows from investing activities:
Acquisition of property and equipment	(9)
Net cash used in investing activities	(9)
Cash flows from financing activities:
Proceeds from issuance of short-term debt		320
Payment on short-term debt		(40)
Net cash provided by financing activities		280
Net decrease in cash and cash equivalents	(298)	(121)
Cash and cash equivalents at beginning of period	335	285
Cash and cash equivalents at end of period	37	164
Supplementary disclosure of cash flow information:
Interest paid	1	2
Income tax paid	1	2
Non-cash financing and investing transactions:
Value of warrants issued on other long-term liabilities	212
Original issue discount on secured convertible promissory notes		$ 64

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Concentrations (Tables)

9 Months Ended

Sep. 30, 2019

Risks and Uncertainties [Abstract]

Summary of accounts receivable and revenue concentrations

	Accounts Receivable As of September 30,						Total Revenue for the three months ended September 30,						Total Revenue for the nine months ended September 30,
	2019			2018			2019			2018			2019			2018
Customer #1		58	%		68	%		17	%		11	%		18	%		11	%
Customer #2		24	%		17	%		-			-			-			-
Customer #3		16	%		-			16	%		12	%		11	%		12	%
Customer #4		-			-			29	%		28	%		29	%		24	%
Customer #5		-			9	%		17	%		18	%		16	%		16	%
Customer #6		-			-			-			-			-			10	%
Total concentration		98	%		94	%		79	%		69	%		74	%		73	%

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Concentrations (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accounts Receivable [Member]
Concentration Risk [Line Items]
Total concentration			98.00%	94.00%
Accounts Receivable [Member] | Customer #1 [Member]
Concentration Risk [Line Items]
Total concentration			58.00%	68.00%
Accounts Receivable [Member] | Customer #2 [Member]
Concentration Risk [Line Items]
Total concentration			24.00%	17.00%
Accounts Receivable [Member] | Customer #3 [Member]
Concentration Risk [Line Items]
Total concentration			16.00%
Accounts Receivable [Member] | Customer #4 [Member]
Concentration Risk [Line Items]
Total concentration
Accounts Receivable [Member] | Customer #5 [Member]
Concentration Risk [Line Items]
Total concentration				9.00%
Accounts Receivable [Member] | Customer #6 [Member]
Concentration Risk [Line Items]
Total concentration
Total Revenue [Member]
Concentration Risk [Line Items]
Total concentration	79.00%	69.00%	74.00%	73.00%
Total Revenue [Member] | Customer #1 [Member]
Concentration Risk [Line Items]
Total concentration	17.00%	11.00%	18.00%	11.00%
Total Revenue [Member] | Customer #2 [Member]
Concentration Risk [Line Items]
Total concentration
Total Revenue [Member] | Customer #3 [Member]
Concentration Risk [Line Items]
Total concentration	16.00%	12.00%	11.00%	12.00%
Total Revenue [Member] | Customer #4 [Member]
Concentration Risk [Line Items]
Total concentration	29.00%	28.00%	29.00%	24.00%
Total Revenue [Member] | Customer #5 [Member]
Concentration Risk [Line Items]
Total concentration	17.00%	18.00%	16.00%	16.00%
Total Revenue [Member] | Customer #6 [Member]
Concentration Risk [Line Items]
Total concentration				10.00%

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Concentrations

9 Months Ended

Sep. 30, 2019

Risks and Uncertainties [Abstract]

Concentrations

2. Concentrations

The following table summarizes accounts receivable and revenue concentrations:

	Accounts Receivable As of September 30,						Total Revenue for the three months ended September 30,						Total Revenue for the nine months ended September 30,
	2019			2018			2019			2018			2019			2018
Customer #1		58	%		68	%		17	%		11	%		18	%		11	%
Customer #2		24	%		17	%		-			-			-			-
Customer #3		16	%		-			16	%		12	%		11	%		12	%
Customer #4		-			-			29	%		28	%		29	%		24	%
Customer #5		-			9	%		17	%		18	%		16	%		16	%
Customer #6		-			-			-			-			-			10	%
Total concentration		98	%		94	%		79	%		69	%		74	%		73	%

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue:
Product	$ 45	$ 24	$ 126	$ 97
Maintenance	168	173	512	539
Total revenue	213	197	638	636
Cost of sales:
Product	5	2	8	7
Maintenance	23	28	56	46
Research and development	179	166	531	632
Sales and marketing	10	14	63	75
General and administrative	147	179	541	507
Total operating costs and expenses	364	389	1,199	1,267
Loss from operations	(151)	(192)	(561)	(631)
Warrant expenses on long−term liabilities	(47)		(47)
Other income (expense), net		90	14	46
Interest expense:
Related party	(19)	(9)	(46)	(25)
Other	(46)	(36)	(142)	(100)
Amortization of debt discount:
Related party	(3)	(14)	(8)	(28)
Other	(7)	(34)	(22)	(72)
Loss before income tax expense	(273)	(195)	(812)	(810)
Income tax expense			(1)	(2)
Net loss	$ (273)	$ (195)	$ (813)	$ (812)
Basic and diluted net loss per common share	$ (0.05)	$ (0.03)	$ (0.14)	$ (0.14)
Weighted average common shares outstanding, basic and diluted	5,760	5,760	5,760	5,760

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Stockholders' Equity (Deficit) (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 37	$ 69	$ 144	$ 143
Research and development [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	6	18	24	72
General and administrative [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	25	43	98	56
Director options [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 6	$ 8	$ 22	$ 15

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Stockholders' Equity (Deficit) (Details 5) - Warrant [Member] - $ / shares shares in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares, Outstanding at beginning of period	1,828	1,878
Shares, Issued	985
Shares, Expired		(50)
Shares, Outstanding at end of period	2,813	1,828
Shares, Exercisable at end of period	2,812	1,828
Weighted Average Exercise Price Per Share, Outstanding at beginning of period	$ 2.08	$ 2.46
Weighted Average Exercise Price Per Share, Issued	0.50
Weighted Average Exercise Price Per Share, Expired		15.63
Weighted Average Exercise Price Per Share, Outstanding at end of period	1.53	1.59
Weighted Average Exercise Price Per Share, Exercisable at end of period	$ 1.53	$ 1.59

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 14, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	iSign Solutions Inc.
Entity Central Index Key	0000727634
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Ex Transition Period	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,761,980
Entity File Number	000-19301
Entity Interactive Data Current	Yes
Entity Incorporation state Country Code	DE

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Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2017	$ 58	$ (325)	$ 129,027	$ (132,562)	$ (3,802)
Balance, shares at Dec. 31, 2017	5,760	5
Stock-based compensation			48		48
Net loss				(284)	(284)
Balance at Mar. 31, 2018	$ 58	$ (325)	129,075	(132,846)	(4,038)
Balance, shares at Mar. 31, 2018	5,760	5
Balance at Dec. 31, 2017	$ 58	$ (325)	129,027	(132,562)	(3,802)
Balance, shares at Dec. 31, 2017	5,760	5
Net loss					(812)
Balance at Sep. 30, 2018	$ 58	$ (325)	129,170	(133,374)	(4,471)
Balance, shares at Sep. 30, 2018	5,760	5
Balance at Mar. 31, 2018	$ 58	$ (325)	129,075	(132,846)	(4,038)
Balance, shares at Mar. 31, 2018	5,760	5
Stock-based compensation			27		27
Net loss				(333)	(333)
Balance at Jun. 30, 2018	$ 58	$ (325)	129,102	(133,179)	(4,344)
Balance, shares at Jun. 30, 2018	5,760	5
Stock-based compensation			68		68
Net loss				(195)	(195)
Balance at Sep. 30, 2018	$ 58	$ (325)	129,170	(133,374)	(4,471)
Balance, shares at Sep. 30, 2018	5,760	5
Balance at Dec. 31, 2018	$ 58	$ (325)	129,251	(133,589)	(4,605)
Balance, shares at Dec. 31, 2018	5,760	5
Stock-based compensation			59		59
Net loss				(291)	(291)
Balance at Mar. 31, 2019	$ 58	$ (325)	129,310	(133,880)	(4,837)
Balance, shares at Mar. 31, 2019	5,760	5
Balance at Dec. 31, 2018	$ 58	$ (325)	129,251	(133,589)	(4,605)
Balance, shares at Dec. 31, 2018	5,760	5
Net loss					(813)
Balance at Sep. 30, 2019	$ 58	$ (325)	129,607	(134,402)	(5,062)
Balance, shares at Sep. 30, 2019	5,760	5
Balance at Mar. 31, 2019	$ 58	$ (325)	129,310	(133,880)	(4,837)
Balance, shares at Mar. 31, 2019	5,760	5
Stock-based compensation			48		48
Net loss				(249)	(249)
Balance at Jun. 30, 2019	$ 58	$ (325)	129,358	(134,129)	(5,038)
Balance, shares at Jun. 30, 2019	5,760	5
Stock-based compensation			37		37
Warrants issued associated with other long-term labilities			212		212
Net loss				(273)	(273)
Balance at Sep. 30, 2019	$ 58	$ (325)	$ 129,607	$ (134,402)	$ (5,062)
Balance, shares at Sep. 30, 2019	5,760	5

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Net Loss Per Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Net Loss per Share

3. 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 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 would be antidilutive:

	For the Three and Nine Months Ended
	September 30, 2019		September 30, 2018
Stock options		1,077		1,056
Warrants		2,812		1,828

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Stockholders’ Equity (Deficit) (Details)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Stockholders Equity Deficit
Risk free interest rate	2.30%	1.91%
Expected life (years)	6 years 1 month 16 days	6 years 3 months 19 days
Expected volatility	191.65%	180.51%
Expected dividends

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Stockholders' Equity (Deficit) (Details 4) shares in Thousands	9 Months Ended
	Sep. 30, 2019 $ / shares shares
Shares
Non-vested, Beginning balance | shares	718
Granted | shares	40
Vested | shares	(255)
Non-vested, Ending balance | shares	503
Weighted Average Grant-Date Fair Value
Non-vested, Beginning balance | $ / shares	$ 0.64
Granted | $ / shares	0.50
Vested | $ / shares	0.63
Non-vested, Ending balance | $ / shares	$ 0.65

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Nature of Business and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Nature of Business

Nature of Business

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 San Jose, California. The Company's products include SignatureOne® Ceremony® Server, the iSign® suite of products and services, including iSign® Enterprise, iSign® Console™, and Sign-it® programs.

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, 2018.

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 September 30, 2019, the Company's accumulated deficit was $134,402. The Company has primarily met its working capital needs through the sale of debt and equity securities. As of September 30, 2019, the Company's cash balance was $37. 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

Accounting Standards Update No. 2019-01, Leases (Topic 842), Codification Improvements. The amendments in this Update include the following items: (1) determining the fair value of the underlying asset by lessors that are not manufacturers or dealers; (2) presentation on the statement of cash flows—sales-type and direct financing leases; and (3) transition disclosures related to Topic 250, Accounting Changes and Error Corrections. The amendments in ASU 2019-01 for Issue 1 affect all lessors that are not manufacturers or dealers (generally financial institutions and captive finance companies); for Issue 2, all lessors that are depository and lending entities within the scope of Topic 942; for Issue 3, all entities that are lessees or lessors. The effective date of the amendments in ASU 2019-01 are for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years.

The Company adopted ASU 2019-01 effective January 1, 2019. The adoption of ASU 2019-01 had no impact on the Company's financial statements.

Other Accounting Standards Updates issued in 2019 are not currently applicable to the Company, therefore implementation would not be expected to have a material impact on the Company's financial position, results of operations and cash flows.

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Nature of Business and Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Nature of Business and Summary of Significant Accounting Policies (Textual)
Accumulated deficit	$ (13,440)	$ (133,589)
Cash balance	$ 37	$ 335	$ 164	$ 285