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Document Entity Information Document - shares	9 Months Ended
Document Entity Information Document - shares	Sep. 30, 2018	Nov. 05, 2018
Document Information [Abstract]
Entity Registrant Name	Sphere 3D Corp.
Entity Central Index Key	0001591956
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		1,932,399
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues	$ 15,891	$ 21,679	$ 53,800	$ 62,855
Gross Profit	4,835	6,733	16,566	18,951
Sales and Marketing	3,303	4,586	11,707	14,090
Research and Development	694	1,793	3,011	5,460
General and Administrative	3,735	4,840	13,186	14,743
Operating Expenses	7,732	11,219	27,904	34,293
Loss from Operations	(2,897)	(4,486)	(11,338)	(15,342)
Other income (expense)
Interest Expense	(682)	(519)	(2,141)	(2,770)
Interest Expense, Related Party	(882)	(614)	(2,815)	(1,912)
Other (expense) income, net	(66)	2,642	(229)	2,223
Loss before Income Taxes	(4,527)	(2,977)	(16,523)	(17,801)
Provision for income taxes	325	504	1,154	1,002
Net Loss	$ (4,852)	$ (3,481)	$ (17,677)	$ (18,803)
Loss Per Share, Basic and Diluted [Abstract]
Basic and Diluted	$ (2.53)	$ (4.72)	$ (11.55)	$ (34.19)
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Basic and Diluted	1,917	738	1,531	550
Product [Member]
Revenues	$ 13,855	$ 19,628	$ 47,563	$ 56,168
Cost	9,788	13,634	34,179	41,023
Service [Member]
Revenues	2,036	2,051	6,237	6,687
Cost	$ 1,268	$ 1,312	$ 3,055	$ 2,881

Condensed Consolidated Statements of Comprehensive Loss Statement - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net Loss	$ (4,852)	$ (3,481)	$ (17,677)	$ (18,803)
Other Comprehensive Income (Loss)
Foreign currency translation adjustment	61	(273)	295	(396)
Other Comprehensive Income (Loss)	61	(273)	295	(396)
Comprehensive Loss	$ (4,791)	$ (3,754)	$ (17,382)	$ (19,199)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Cash and Cash Equivalents	$ 2,081	$ 4,598
Accounts receivable, net of allowance for doubtful accounts of $1,637 and $1,675, respectively	7,298	11,482
Inventories	8,000	8,366
Other Current Assets	1,621	1,829
Assets, Current	19,000	26,275
Property and Equipment, Net	2,349	2,742
Intangible Assets, Net	38,409	41,473
Goodwill	11,590	11,590
Other Assets	1,172	1,200
Total Assets	72,520	83,280
Accounts Payable	10,726	9,362
Accrued Liabilities	5,176	4,157
Accrued Payroll and Employee Compensation	2,560	3,240
Deferred Revenue	3,235	5,060
Debt, Related Party	45,584	26,613
Debt	0	18,195
Other Current Liabilities	880	1,283
Liabilities, Current	68,161	67,910
Deferred Revenue, long-term	1,690	1,276
Deferred income taxes	1,309	1,342
Other Non-current Liabilities	653	2,289
Total Liabilities	71,813	72,817
Commitments and Contingencies (Note 12)
Common shares, no par value; 1,932 and 890 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively	181,178	173,871
Accumulated Other Comprehensive Loss	(1,686)	(1,981)
Accumulated Deficit	(178,785)	(161,427)
Total Shareholders' Equity	707	10,463
Total Liabilities and Shareholders' Equity	$ 72,520	$ 83,280

Condensed Consolidated Balance Sheets Consolidated Balance Sheets Parenthetical Data - USD ($) shares in Thousands, $ / shares in Thousands, $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 1,637	$ 1,675
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Shares, Issued	1,932	890
Common Stock, Shares, Outstanding	1,932	890

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating Activities [Abstract]
Net Loss	$ (17,677)	$ (18,803)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and Amortization	3,298	4,574
Share-based Compensation	1,520	5,647
Amortization of Debt Issuance Costs	1,532	1,935
Fair Value Adjustment of Warrants	(259)	(2,518)
Paid-In-Kind Interest Expense, Related Party	511	0
Paid-in-Kind Interest Expense	364	0
Loss on revaluation of investment	0	1,145
Changes in operating assets and liabilities (net of effects of acquisition):
Accounts Receivable	4,071	(284)
Inventories	359	1,788
Accounts Payable and Accrued Liabilities	3,425	642
Accrued Payroll and Employee Compensation	(659)	124
Deferred Revenue	(1,106)	(329)
Other Assets and Liabilities, Net	411	(2,554)
Net Cash Used in Operating Activities	(4,210)	(8,633)
Investing activities:
Acquisition, Net of Cash Acquired	0	(1,051)
Purchase of Property and Equipment	(55)	(115)
Net Cash Used in Investing Activities	(55)	(1,166)
Financing activities:
Proceeds from issuance of common shares and warrants	2,310	10,862
Payment for Issuance Costs	(364)	(655)
Payments on Debt, Related Party	(192)	(1,731)
Net Cash Provided by Financing Activities	1,754	8,476
Effect of Exchange Rate Changes on Cash	(6)	133
Net decrease in cash and cash equivalents	(2,517)	(1,190)
Cash and Cash Equivalents, beginning of period	4,598	5,056
Cash and Cash Equivalents, end of period	$ 2,081	$ 3,866

Condensed Consolidated Statements of Cash Flows Supplemental Disclosures of Cash Flow Information - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	$ 762	$ 1,273
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Issuance of common shares for related party liabilities	1,393	972
Issuance of common shares for settlement of liabilities	1,220	87
Costs accrued for issuance of common shares	191	459
Issuance of common shares for acquisition	0	346
Issuance of warrants in relation to settlement of liabilities	$ 0	$ 180

Organization and Business	9 Months Ended
Organization and Business	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Organization and Business Sphere 3D Corp. (the “Company”) was incorporated under the Business Corporations Act (Ontario) on May 2, 2007 as T.B. Mining Ventures Inc. On March 24, 2015, the Company completed a short-form amalgamation with a wholly-owned subsidiary. In connection with the short-form amalgamation, the Company changed its name to “Sphere 3D Corp.” The Company delivers data management, and desktop and application virtualization solutions through hybrid cloud, cloud and on premise implementations by its global reseller network. The Company achieves this through a combination of containerized applications, virtual desktops, virtual storage and physical hyper-converged platforms. The Company’s products allow organizations to deploy a combination of public, private or hybrid cloud strategies while backing them up with the latest storage solutions. The Company has a portfolio of brands including RDX^®,HVE, Glassware 2.0™, SnapCLOUD^®, SnapServer^®, SnapSync™, NEO^®, and V3^®. Management has projected that cash on hand will not be sufficient to allow the Company to continue operations beyond November 19, 2018 if the Company is otherwise unable to further amend, refinance, or pay off its debt and credit facilities prior to their November 19, 2018 maturity date. If the Share Purchase (as defined below) is consummated, the Company expects the outstanding debt and credit facilities to be settled. However, the consummation of the Share Purchase remains subject to certain closing conditions contained in the Purchase Agreement (as defined below) (including Purchaser’s receipt of adequate funding to close the Share Purchase, which it has not yet secured) and there can be no guarantee that the Company will be able to raise additional funds or amend or refinance our debt and credit facilities on favorable terms or at all, nor can there be any guarantee that the Share Purchase will ultimately be consummated. Significant changes from the Company’s current forecasts, including but not limited to: (i) any delay in the closing of the Share Purchase described below promptly and in any event before its debt with FBC Holdings and/or MF Ventures, LLC becomes due (including as a result of the failure of the Purchaser to obtain funding adequate to pay the Purchase Price, or the failure to satisfy certain closing conditions), (ii) failure to comply with the financial or other covenants in its credit facilities; (iii) shortfalls from projected sales levels; (iv) unexpected increases in product costs; (v) increases in operating costs; (vi) changes in the historical timing of collecting accounts receivable; and (vii) inability to maintain compliance with the requirements of the NASDAQ Capital Market and/or inability to maintain listing with the NASDAQ Capital Market could have a material adverse impact on the Company’s ability to access the level of funding necessary to continue its operations at current levels. If any of these events occurs or the Company is unable to generate sufficient cash from operations or financing sources, the Company may be forced to liquidate assets where possible and/or curtail, suspend or cease planned programs or operations generally or seek bankruptcy protection or be subject to an involuntary bankruptcy petition, any of, which would have a material adverse effect on the Company’s business, results of operations, financial position and liquidity. The Company incurred losses from operations and negative cash flows from operating activities for the nine months ended September 30, 2018, and such losses might continue for the foreseeable future. Based upon the Company's current expectations and projections for the next year, the Company believes that it may not have sufficient liquidity necessary to sustain operations beyond November 19, 2018. These factors, among others, raise substantial doubt that the Company will be able to continue as a going concern. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Related Party Share Purchase Agreement On February 20, 2018, the Company, Overland Storage, Inc., a California corporation and a wholly owned subsidiary of the Company (“Overland”), and Silicon Valley Technology Partners Inc. (formerly known as Silicon Valley Technology Partners LLC), a Delaware corporation established and controlled by Eric Kelly, the Company’s Chief Executive Officer and Chairman of the Board of Directors (the “Purchaser”) entered into a share purchase agreement (as amended by that certain First Amendment to Share Purchase Agreement dated as of August 21, 2018 and as further amended by that certain Second Amendment to Share Purchase Agreement dated as of November 1, 2018, the “Purchase Agreement”), pursuant to which, among other things, and subject to certain closing conditions, the Company will sell to Purchaser all of the issued and outstanding shares of capital stock of Overland (the “Share Purchase”) for $45.0 million (the “Purchase Price”). As previously announced, the net proceeds from the Share Purchase were to be used to repay: (i) the Company’s outstanding obligations under its Credit Agreement with FBC Holdings; (ii) its outstanding obligations under the related party secured note with FBC Holdings; and (iii) its related party subordinated promissory note with MF Ventures, LLC. The Special Committee of the Board of Directors of the Company and the Board of Directors of the Company (with Eric Kelly recusing himself) unanimously approved the entry into the Purchase Agreement by the Company. The Company held a special shareholder meeting on May 31, 2018 at which the requisite shareholders of the Company approved the Share Purchase. The consummation of the Share Purchase remains subject to certain closing conditions contained in the Purchase Agreement (including Purchaser’s receipt of adequate funding to close the Share Purchase, which it has not yet secured). On November 1, 2018, the parties entered into a second amendment to the Purchase Agreement (the “Second Amendment”), which provides, among other things, that the Purchase Price will be satisfied through and upon (i) the issuance to the Company shares of Series A Preferred Stock of Purchaser representing 19.9% of the fully diluted outstanding securities of Purchaser as of the closing of the Share Purchase (or such other percentage as mutually agreed upon by Purchaser and the Company), and (ii) the release of the Company and all of its subsidiaries (other than Overland) from all the obligations and liabilities under the Closing Indebtedness (as defined below) and assumption thereof by Purchaser. For purposes of the Purchase Agreement, as amended by the Second Amendment, “Closing Indebtedness” means the Indebtedness (as defined in the Purchase Agreement) totaling approximately $39.1 million. The value of the liabilities of the Company that will be released upon the closing is expected to be not less than $45.0 million (the amount of the Purchase Price). Under the terms of the Purchase Agreement, the Share Purchase is contingent upon, and Purchaser must use its best efforts to arrange for, debt and/or equity financing in an amount at least equal to the Purchase Price in order to consummate the Share Purchase (the “Financing”). In addition, the Company must use commercially reasonable efforts to provide all cooperation reasonably requested by Purchaser regarding the Financing. Until the Financing is committed in accordance with a Contingency Termination Event (as defined below), the Company is free to solicit and negotiate other offers to purchase the Company, Overland or any or all of their assets and has the right to terminate the Purchase Agreement for any or no reason without penalty (subject to the expense reimbursement provisions described below). The closing of the Share Purchase and of the other transactions contemplated by the Purchase Agreement are subject to (i) the adoption of the Purchase Agreement by the affirmative vote of the holders of (a) at least 66 2/3% of the outstanding common shares of the Company cast in person or by proxy at the special meeting of shareholders and (b) a majority of the votes cast by certain “minority shareholders” in person or by proxy at the special meeting of shareholders (the “Shareholder Approval”), both of which votes were obtained at the special shareholder meeting on May 31, 2018, and (ii) the transfer by the Company of (a) the businesses of (x) Unified ConneXions, Inc. and (y) HVE ConneXions, LLC (including the provision of information technology consulting services and hardware solutions around cloud computing, data storage and server virtualization to corporate, government, and educational institutions), and (b) the SNAP network attached storage business to a subsidiary of the Company other than Overland or a subsidiary of Overland. The closing of the Share Purchase and of the other transactions contemplated by the Purchase Agreement are also subject to various other conditions, including the parties entry into a mutually agreed upon transition services agreement, the consummation of the Financing, the absence of any order, statute, rule, regulation, executive order, decree or injunction issued by any governmental entity prohibiting the Share Purchase, the absence of a pending claim, suit, action or proceeding material claims seeking to prohibit the Share Purchase, the accuracy of the representations and warranties contained in the Purchase Agreement, compliance with the covenants and agreements contained in the Purchase Agreement in all material respects, and the absence of a material adverse effect on either the Company or Overland. The Company has made customary representations, warranties and covenants in the Purchase Agreement, including, among others, covenants (i) to conduct its business in the ordinary course during the period between the execution of the Purchaser Agreement and the closing of the Share Purchase, (ii) not to engage in specified types of transactions during this period unless agreed to in writing by Purchaser, and (iii) subject to certain exceptions and only following the occurrence of the Contingency Termination Event (as defined below), not to solicit and negotiate other offers to purchase the Company, Overland or any or all of their assets or to withdraw, modify or qualify in a manner adverse to Purchaser the recommendation of the Board that the Company’s shareholders vote in favor of approving the Share Purchase. The Company has also agreed to indemnification provisions in favor of Purchaser that are customary for transactions of this type. Prior to the (i) execution and delivery of financing commitments in forms reasonably acceptable to the Company, which provide, among other things, for commitments from financing sources sufficient to pay the Purchase Price in the Share Purchase, (ii) execution and delivery by Purchaser of an irrevocable waiver in a form reasonably acceptable to the Company waiving Purchaser’s condition to the obligation to close the Share Purchase that the Financing has been received and (iii) an executed certificate delivered by Purchaser to the Company regarding the accuracy of certain representations regarding the Financing (the “Contingency Termination Event”), the Company has the right to terminate the Purchase Agreement for any reason or for no reason. The Purchase Agreement also provides that, upon such termination of the Purchase Agreement by the Company, the Company has agreed to reimburse Purchaser up to approximately $350,000 for the reasonable and documented out-of-pocket expenses incurred by the Purchaser and the sources for the Financing in connection with the negotiation, execution and performance of the Purchase Agreement and the transactions contemplated thereby, as well as the fees and expenses of the Purchaser's outside counsel. In addition, the Purchase Agreement contains certain other termination rights, including, following the occurrence of the Contingency Termination Event, the right of the Company to terminate the Purchase Agreement under specified circumstances to accept an unsolicited superior proposal from a third party. The Purchase Agreement provides that, following the occurrence of the Contingency Termination Event and upon termination of the Purchase Agreement by the Company under specified circumstances (including termination by the Company to accept a superior proposal) or by Purchaser under specified circumstances, a termination fee equal to the lesser of (i) $1.0 million and (ii) the amount of Purchaser’s reasonable fees and expenses in connection with the negotiation, execution and performance of the Purchase Agreement (including the amount that the Purchaser must pay or reimburse to the sources for the Financing) will be payable by the Company to the Purchaser. Such termination fee is also payable following the occurrence of the Contingency Termination Event under certain other specified circumstances set forth in the Purchase Agreement. The Purchase Agreement also provides that each party to the Purchase Agreement may compel the other party or parties thereto to specifically perform its or their obligations under the Purchase Agreement. However, if the Purchase Agreement is terminated such that the Company termination fee becomes payable, the Purchaser will be precluded from any other remedy against the Company or Overland, including expense reimbursement and specific performance. Further, if the Purchase Agreement is terminated such that the expense reimbursement becomes payable, the Purchaser will be precluded from any other remedy against the Company or Overland, including the Company termination fee and specific performance. Subject to certain exceptions and limitations, either party may terminate the Purchase Agreement if the Share Purchase is not consummated by December 17, 2018. Reverse Stock Split On October 24, 2018, subject to the approval by the Company’s shareholders (which approval was obtained at the special shareholder meeting held on October 31, 2018), the Board of Directors of the Company authorized a share consolidation (also known as a reverse stock split) of the Company’s issued and outstanding common shares at a ratio of one-for-eight, which became effective on November 5, 2018. All share and per share amounts have been restated for all periods presented to reflect the share consolidation.

Significant Accounting Policies	9 Months Ended
Significant Accounting Policies	Sep. 30, 2018
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements of the Company have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”), applied on a basis consistent for all periods. These condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany balances and transactions have been appropriately eliminated in consolidation. Use of Estimates The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management estimates relate to the determination of provisions for impairment assessments of goodwill, other indefinite-lived intangible assets and long-lived assets; deferred revenue; allowance for doubtful receivables; inventory valuation; warranty provisions; deferred income taxes; and litigation claims. Actual results could differ from these estimates. Foreign Currency Translation The financial statements of foreign subsidiaries, for which the functional currency is the local currency, are translated into U.S. dollars using the exchange rate at the consolidated balance sheet date for assets and liabilities and a weighted-average exchange rate during the year for revenue, expenses, gains and losses. Translation adjustments are recorded as other comprehensive income (loss) within shareholders’ equity. Gains or losses from foreign currency transactions are recognized in the consolidated statements of operations. Such transactions resulted in a loss of $0.2 million and $0.6 million in three and nine months ended September 30, 2018 and 2017, respectively, and a gain of $0.4 million and $0.8 million in the three and nine months ended September 30, 2017, respectively. Cash Equivalents Highly liquid investments with insignificant interest rate risk and original maturities of three months or less, when purchased, are classified as cash equivalents. Cash equivalents are composed of money market funds. The carrying amounts approximate fair value due to the short maturities of these instruments. Accounts Receivable Accounts receivable is recorded at the invoiced amount and is non-interest bearing. We estimate our allowance for doubtful accounts based on an assessment of the collectability of specific accounts and the overall condition of the accounts receivable portfolio. When evaluating the adequacy of the allowance for doubtful accounts, we analyze specific trade and other receivables, historical bad debts, customer credits, customer concentrations, customer credit-worthiness, current economic trends and changes in customers’ payment terms and/or patterns. We review the allowance for doubtful accounts on a quarterly basis and record adjustments as considered necessary. Customer accounts are written-off against the allowance for doubtful accounts when an account is considered uncollectable. Inventories Inventories are stated at the lower of cost and net realizable value using the first-in-first-out method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We assess the value of inventories periodically based upon numerous factors including, among others, expected product or material demand, current market conditions, technological obsolescence, current cost, and net realizable value. If necessary, we write down inventory for obsolete or unmarketable inventory by an amount equal to the difference between the cost of the inventory and the net realizable value. Goodwill and Intangible Assets Goodwill represents the excess of consideration paid over the value assigned to the net tangible and identifiable intangible assets acquired. For intangible assets purchased in a business combination, the estimated fair values of the assets received are used to establish their recorded values. For intangible assets acquired in a non-monetary exchange, the estimated fair values of the assets transferred (or the estimated fair values of the assets received, if more clearly evident) are used to establish their recorded values. Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. Purchased intangible assets are amortized on a straight-line basis over their economic lives of six to 25 years for channel partner relationships, three to nine years for developed technology, three to eight years for capitalized development costs, and two to 25 years for customer relationships as this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. Impairment of Goodwill, Intangible Assets and Long-Lived Assets Goodwill and intangible assets are tested for impairment on an annual basis at December 31, or more frequently if there are indicators of impairment. Triggering events for impairment reviews may be indicators such as adverse industry or economic trends, restructuring actions, lower projections of profitability, or a sustained decline in our market capitalization. Intangible assets are quantitatively assessed for impairment, if necessary, by comparing their estimated fair values to their carrying values. If the carrying value exceeds the fair value, the difference is recorded as an impairment. Long-lived assets are reviewed for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable. Our consideration includes, but is not limited to: (i) significant under-performance relative to historical or projected future operating results; (ii) significant changes in the manner of use of the assets or the strategy for the Company’s overall business; (iii) significant decrease in the market value of the assets; and (iv) significant negative industry or economic trends. When the carrying value is not considered recoverable, an impairment loss for the amount by which the carrying value of a long-lived asset exceeds its fair value is recognized, with an offsetting reduction in the carrying value of the related asset. Revenue Recognition The Company primarily generates revenue from solutions for standalone storage and long-term data archive products, as well as enterprise storage management solutions which are primarily grouped into three categories: (i) disk systems, (ii) tape automation systems, tape drive and media, and (iii) warranty and customer services. Approximately 90% of the Company’s revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied at a point in time. These contracts generally have a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when change of control has been transferred to the customer, generally at the time of shipment of products. The Company sells its products both directly to customers and through distributors generally under agreements with payment terms typically less than 45 days. Revenue on direct product sales, excluding sales to distributors, are not entitled to any specific right of return or price protection, except for any defective product that may be returned under our standard product warranty. Product sales to distribution customers are subject to certain rights of return, stock rotation privileges and price protections, that create “variable considerations”. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products and is generally based upon a negotiated fixed price and is net of estimates for variable considerations. For performance obligations related to warranty and customer services, such as extended product warranties, the Company transfers control and recognizes revenue over time on a ratable basis. The performance obligations are satisfied as services are rendered typically on a straight-line basis over the contract term, which is generally 12 months. In limited circumstances where a customer is unable to accept shipment and requests products be delivered to, and stored on, the Company’s premises, also known as a “bill-and-hold” arrangements, revenue is recognized when: (i) the customer has requested delayed delivery and storage of the products, (ii) the goods are segregated from the inventory, (iii) the product is complete, ready for shipment and physical transfer to the customer, and (iv) the Company does not have the ability to use the product or direct it to another customer. The Company enters into revenue arrangements that may consist of multiple performance obligations, of its product and service offerings, such as for sales of hardware devices and extended warranty services. The Company allocates revenue to the performance obligations in multiple element arrangements based on relative selling prices. The Company determines the transaction price based on its normal pricing and discounting practices for the specific product or service when sold separately. When the Company is not able to establish the individual transaction price for all performance obligations in an arrangement with multiple elements, the Company determines the selling price of each element based on third party evidence of selling price or based on the Company’s actual historical selling prices of similar items, whichever management believes provides the most reliable estimate of expected selling prices. Warranty and Extended Warranty The Company records a provision for standard warranties provided with all products. If future actual costs to repair were to differ significantly from estimates, the impact of these unforeseen costs or cost reductions would be recorded in subsequent periods. Separately priced extended on-site warranties and service contracts are offered for sale to customers on all product lines. The Company contracts with third party service providers to provide service relating to on-site warranties and service contracts. Extended warranty and service contract revenue and amounts paid in advance to outside service organizations are deferred and recognized as service revenue and cost of service, respectively, over the period of the service agreement. Shipping and Handling Amounts billed to customers for shipping and handling are included in product revenue, and costs incurred related to shipping and handling are included in cost of product revenue. Research and Development Costs Research and development expenses include payroll, employee benefits, share-based compensation expense, and other headcount-related expenses associated with product development. Research and development expenses also include third party development and programming costs, localization costs incurred to translate software for international markets, and the amortization of purchased software code and services content. Such costs related to software development are included in research and development expense until the point that technological feasibility is reached, which for our software products, is generally shortly before the products are released to manufacturing. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue over the estimated lives of the products. Segment Information We report segment data based on the management approach. The management approach designates the internal reporting that is used by management for making operating and investment decisions and evaluating performance as the source of our reportable segments. We use one measurement of profitability and do not disaggregate our business for internal reporting. We operate in one segment providing data management, and desktop and application virtualization solutions for small and medium businesses and distributed enterprises. We disclose information about products and services, geographic areas, and major customers. Comprehensive Loss Comprehensive loss and its components encompasses all changes in equity other than those arising from transactions with shareholders, including net loss and foreign currency translation adjustments, and is disclosed in a separate consolidated statement of comprehensive loss. Share-based Compensation We account for share-based awards, and similar equity instruments, granted to employees, non-employee directors, and consultants under the fair value method. Share-based compensation award types include stock options and restricted stock. We use the Black-Scholes option pricing model to estimate the fair value of option awards on the measurement date, which generally is the date of grant. The expense is recognized over the requisite service period (usually the vesting period) for the estimated number of instruments for which service is expected to be rendered. The fair value of restricted stock units (“RSUs”) is estimated based on the market value of the Company’s common shares on the date of grant. The fair value of options granted to non-employees is estimated at the measurement date using the Black-Scholes option pricing model and the unvested options remeasured at each reporting date, with changes in fair value recognized in expense in the consolidated statement of operations. Share-based compensation expense for options with graded vesting is recognized pursuant to an accelerated method. Share-based compensation expense for RSUs is recognized over the vesting period using the straight-line method. Share-based compensation expense for an award with performance conditions is recognized when the achievement of such performance conditions are determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. Forfeitures are recognized in share-based compensation expense as they occur. We have not recognized, and do not expect to recognize in the near future, any tax benefit related to share-based compensation cost as a result of the full valuation allowance of our net deferred tax assets and its net operating loss carryforward. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date. If not discussed, the Company believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. In June 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-07, ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07). The update aligns measurement and classification guidance for share-based payments to nonemployees with the guidance applicable to employees. Under the new guidance, the measurement of equity-classified nonemployee awards will be fixed at the grant date. The update is effective for annual reporting periods, including interim periods, beginning after December 15, 2018, with early adoption permitted. We do not expect the adoption of ASU 2018-07 to have a material effect on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). The update simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. An entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, if applicable. The loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The same impairment test also applies to any reporting unit with a zero or negative carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The update is effective for annual reporting periods, including interim periods, beginning after December 15, 2019, on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. We do not expect the adoption of ASU 2017-04 to have a material effect on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). The update increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosing key information about leasing arrangements. The update is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. Recently Adopted Accounting Pronouncements On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers and all the related amendments, or Accounting Standards Codification (“ASC”) Topic 606. Under Topic 606, an entity is required to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Topic 606 defines a five-step process in order to achieve this core principle, which may require the use of judgment and estimates, and also requires expanded qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and estimates used. The adoption of the new standard requires the recognition of revenues generally upon shipment to our customers for both distributors and direct consumers also known as “sell-in basis” for sales of products to certain customers which had previously been recognized on a “sell-through basis” or when the product was ultimately shipped to the end consumer. We elected to adopt this guidance using the modified retrospective method and it resulted in a cumulative adjustment reducing our accumulated deficit by approximately $0.3 million. Comparative prior periods were not adjusted and continue to be reported under FASB ASC Topic 605, Revenue Recognition. In connection with the adoption of Topic 606, we are required to capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed. The Company elected to follow a Topic 606 practical expedient and expense the incremental costs of obtaining a contract (sales commissions) when incurred because the amortization period is generally one year or less and capitalized long-term contract costs are not significant. For certain performance obligations related to services, extended warranty and other service agreements that are settled over time, the Company has elected not to adjust the transaction price for the consideration of the effects of time value of money for prepaid services from customers as these services and warranty services are usually fully amortized in one year or less. The impact of the adoption of ASC 606 on our unaudited consolidated balance sheet and our unaudited consolidated statements of operations, comprehensive loss, equity and cash flows was not material. We do not expect the adoption of this guidance to have a material effect on our results of operations in future periods. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The update addresses eight cash flow classification issues and how they should be reported in the statement of cash flows. The update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The adoption of the new standard on January 1, 2018 did not have a material effect on our cash flows. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting (“ASU 2017-09”). The update provides clarity and is expected to reduce both diversity in practice and the cost and complexity when accounting for a change to the terms of a stock-based award. The update is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017, on a prospective basis. The adoption of the new standard on January 1, 2018 did not have a material effect on our financial position, results of operations or cash flows. In July 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815) (“ASU 2017-11”). The update changes the classification of certain equity-linked financial instruments (or embedded features) with down round features. The update also clarifies existing disclosure requirements for equity-classified instruments. The update is effective retrospectively for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. We early adopted the new standard effective January 1, 2018 and it did not have a material effect on our financial position, results of operations or cash flows.

Business Combination

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Business Combination

UCX and HVE Acquisition

In December 2016, the Company acquired 19.9% of the outstanding equity interests of Unified ConneXions, Inc. (“UCX”) and HVE ConneXions, LLC (“HVE”) for a purchase price of $1.5 million. The Company issued 19,737 shares of its common shares in satisfaction of payment. In January 2017, the Company completed its acquisition of all of the remaining outstanding equity interests of UCX and HVE, for $1.1 million in cash and issued 11,029 common shares with an approximate value of $0.3 million. In 2017, the Company recognized a $1.1 million loss, included in other expense, as a result of the remeasurement to fair value the equity interest held immediately before the business combination. The valuation was based on the Company’s private placement completed as of January 26, 2017.

UCX and HVE provide information technology consulting services and hardware solutions around cloud computing, data storage and server virtualization to corporate, government, and educational institutions primarily in the southern central United States. By adding UCX’s technologies, professional services and engineering talent, and HVE’s products, engineering and virtualization expertise, the Company intends to expand its virtualization offerings as well as enhance its ability to accelerate the delivery of hybrid cloud solutions to customers. We incurred acquisition related expenses of approximately $34,000 which consisted primarily of due diligence, legal and other one-time charges and are included in general and administrative expense in the consolidated statements of operations.

A summary of the estimated fair values of the assets acquired and liabilities assumed as of the closing date were as follows (in thousands):



Cash	$	49
Accounts receivable	582
Inventory	206
Identifiable intangible assets	1,260
Other assets	45
Total identifiable assets acquired	2,142
Accounts payable and accrued liabilities	(359		)
Deferred revenue	(518		)
Net identifiable assets acquired	1,265
Goodwill	522
Net assets acquired	$	1,787

Goodwill is primarily comprised of a trained and assembled workforce. The fair value estimates for the assets acquired and liabilities assumed for the acquisition were based on estimates and analysis, including work performed by third party valuation specialists. The goodwill recognized upon acquisition is not deductible for tax purposes.

The results of operations related to this acquisition have been included in our consolidated statements of operations from the acquisition date. Pro forma results of operations have not been presented because at this time it is impracticable to provide as the information is not available at the level of detail required.

The identified intangible assets as of the date of acquisition consisted of the following (in thousands):



	Estimated Fair Value		Weighted- Average Useful Life (years)
Channel partner relationships	$	730	6.0
Customer relationships	380		3.2
Developed technology	150		3.0
Total identified intangible assets	$	1,260

Inventories

9 Months Ended

Sep. 30, 2018

Balance Sheet Related Disclosures [Abstract]

Inventories Disclosures [Text Block]

Inventories

The following table summarizes inventories (in thousands):



	September 30, 2018		December 31, 2017
Raw materials	$	1,764	$	1,222
Work in process	1,763		2,217
Finished goods	4,473		4,927
	$	8,000	$	8,366

Intangible Assets

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Intangible Assets

The following table summarizes intangible assets, net (in thousands):



	September 30, 2018			December 31, 2017
Developed technology	$	23,414		$	23,414
Channel partner relationships⁽¹⁾	12,869			12,929
Capitalized development costs⁽¹⁾	3,047			3,164
Customer relationships⁽¹⁾	1,619			1,647
	40,949			41,154
Accumulated amortization:
Developed technology	(17,249		)	(15,276		)
Channel partner relationships⁽¹⁾	(1,664		)	(1,201		)
Capitalized development costs⁽¹⁾	(1,635		)	(1,409		)
Customer relationships⁽¹⁾	(692		)	(495		)
	(21,240		)	(18,381		)
Total finite-lived assets, net	19,709			22,773
Indefinite-lived intangible assets - trade names	18,700			18,700
Total intangible assets, net	$	38,409		$	41,473

________________


(1)	Includes the impact of foreign currency exchange rate fluctuations.

Amortization expense of intangible assets was $0.8 million and $1.4 million during the three months ended September 30, 2018 and 2017, respectively, and $2.9 million and $4.0 million during the nine months ended September 30, 2018 and 2017, respectively. Estimated amortization expense for intangible assets is expected to be approximately $0.8 million for the remainder of 2018 and $2.6 million, $2.5 million, $2.1 million, $1.9 million and $1.5 million in fiscal 2019, 2020, 2021, 2022 and 2023, respectively.

Debt	9 Months Ended
Debt	Sep. 30, 2018
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Debt Default, Assignment and Waiver Under Credit and Debt Facilities On August 1, 2018, Overland Storage, Inc., a wholly-owned subsidiary of the Company (“Overland”), together with its subsidiary, Tandberg Data GmbH, as co-borrowers under that certain Credit Agreement dated as of April 6, 2016 (as amended from time to time, the “Credit Agreement”), with CB CA SPV, LLC (“Colbeck”), as lender, failed to make a required payment of interest due on such date. Such failure constituted an event of default as of August 6, 2018 under the Credit Agreement after expiration of a five-day cure period. On August 7, 2018, Overland received a notice from Colbeck stating that, as a result of such failure, all amounts under the Credit Agreement are immediately due and payable. The foregoing also constituted an event of default under that certain 8% Senior Secured Convertible Debenture in favor of FBC Holdings, S.à r.l (“FBC Holdings” and together with Colbeck, the “Lenders”). On August 16, 2018, the Credit Agreement was assigned from Colbeck to FBC Holdings. In connection with the assignment, the Company and Overland also received from FBC Holdings (i) a waiver of the defaults and cross-defaults under the Credit Agreement and the 8% Senior Secured Convertible Debenture, as amended from time to time, respectively, and (ii) a revocation of the demand that all amounts payable under the Credit Agreement and the 8% Senior Secured Convertible Debenture are immediately due and payable. As part of the waiver, accrued interest through August 15, 2018 on the Credit Agreement was paid in kind by increasing the principal amount of the term loan and revolving loan by $0.2 million and $0.1 million, respectively. Related Party Secured Note In December 2014, in connection with the acquisition of Overland, the existing debt of Overland and the remaining debt of the Company were amended and restated into a $19.5 million convertible note held by FBC Holdings. In April 2016, the Company modified its convertible note with FBC Holdings, pursuant to which the holder made an additional advance and principal amount under the convertible note amount was increased to $24.5 million. In August 2018, FBC Holdings notified the Company in writing that it was abandoning its right to convert the convertible note into common shares of the Company and informed the Company that such conversion rights, and any related provisions of the convertible note, shall no longer apply and have no further force or effect. The secured note (formerly known as convertible note, now defined as “secured note”) bears interest at an 8.0% simple annual interest rate, payable semi-annually. The obligations under the secured note are secured by substantially all assets of the Company. At September 30, 2018, the Company had $24.5 million outstanding on the secured note. In July 2018, the Company and FBC Holdings entered into an amendment to the secured note, under which the maturity date was extended to November 19, 2018. In addition, the Company must satisfy certain milestones which the failure to comply therewith would constitute an event of default under the secured note. In March 2018, the Company and FBC Holdings entered into an amendment to the secured note which extended the maturity date and altered the schedule for interest payments under the secured note by providing for future accrued interest to be paid twice monthly rather than semi-annually, which was then subsequently modified to accrued interest to be paid at maturity. In consideration for the amendment, the Company paid to FBC Holdings a fee of $0.7 million. The majority of the fee was settled in 120,319 shares of the Company’s stock. The Company has the option under the amendment to the secured note to pay accrued and outstanding interest in common shares of the Company. However, the Company’s ability to issue additional common shares for such purpose may be limited from time to time under Nasdaq rules related to new share issuances. If the Company chooses to pay the interest in common shares, the calculation is based upon the number of common shares that may be issued as payment of interest on the secured note and will be determined by dividing the amount of interest due by the current market price as defined in the secured note agreement. For the nine months ended September 30, 2018 and 2017, the Company issued 99,051 and 22,040 common shares, respectively, for the settlement of accrued interest expense. The secured note contains customary covenants, including covenants that limit or restrict the Company’s ability to incur liens, incur indebtedness, or make certain restricted payments. Upon the occurrence of an event of default under the secured note, the Holder may declare all amounts outstanding to be immediately due and payable. The secured note specifies a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other materials indebtedness, bankruptcy and insolvency defaults, and material judgment defaults. As of September 30, 2018, the Company was in compliance with all covenants of the secured note. For both the three months ended September 30, 2018 and 2017, interest expense, including amortization of debt costs, on the secured note was $0.5 million. For the nine months ended September 30, 2018 and 2017, interest expense, including amortization of debt costs, on the secured note was $2.3 million and $1.6 million, respectively. At September 30, 2018, there was $0.7 million of accrued interest included in accrued liabilities. Related Party Debt In December 2017, the Company entered into a $2.0 million subordinated promissory note with MF Ventures, LLC, a related party. The promissory note is subordinate to the Company’s Credit Agreement and related party secured note and has a maturity date of the earliest of: (i) December 11, 2020; (ii) immediately after repayment in full of the Company’s obligations under its debt and credit agreements with FBC Holdings; or (iii) immediately after refinancing of the Company’s obligations under its debt and credit agreements. The promissory note may be prepaid at any time by the Company; including any accrued and unpaid interest and a $0.3 million prepayment penalty. The promissory note bears interest at a 12.5% simple annual interest rate, payable quarterly in arrears. Interest shall be paid in kind by increasing the principal amount of the note on each quarterly interest payment date. At September 30, 2018, the Company had $2.2 million outstanding on the promissory note. For the three and nine months ended September 30, 2018, interest expense, including amortization of debt costs, on the promissory note was $0.1 million and $0.2 million, respectively. In September 2016, the Company entered into a $2.5 million agreement with FBC Holdings. The term loan had a maturity date of January 31, 2018 and bore interest at a 20.0% simple annual interest rate. In January 2018, the term loan was repaid in full per the term loan agreement. For the three and nine months ended September 30, 2017, interest expense, including amortization of debt costs, on the term loan was $0.1 million and $0.3 million, respectively. Related Party Credit Agreement In April 2016, the Company entered into a Credit Agreement with Opus Bank for a term loan in the amount of $10.0 million and a revolving credit facility in the amount of up to $10.0 million. A portion of the proceeds were used to pay off the Company’s then outstanding credit facilities with FBC Holdings and Silicon Valley Bank. The remainder of the proceeds were used for working capital and general business requirements. On December 30, 2016, the credit facility was reduced to $8.2 million. The obligations under the term loan and credit facility are secured by substantially all assets of the Company. On June 6, 2018, the Credit Agreement was assigned by Opus Bank to Colbeck. On August 16, 2018, the Credit Agreement was assigned by Colbeck to FBC Holdings. In July 2018, the Company and Colbeck entered into Amendment Number Fourteen to the Credit Agreement under which, among other things, (i) the maturity date of the loans under the Credit Agreement were extended to November 19, 2018, and (ii) the Company must satisfy certain milestones which the failure to comply therewith would constitute an event of default under the Credit Agreement. In June 2018, the Company and Colbeck entered into Amendment Number Twelve to the Credit Agreement under which, among other things, extended the maturity date and changed the interest rate applicable to the obligations under the Credit Agreement from 8.25% to 13.25% as of June 29, 2018. In consideration for the amendment, the Company incurred a fee of $0.4 million on July 13, 2018, which was added to the outstanding principal amount of the term loan. At September 30, 2018, the interest rate on the term loan and credit facility was 13.25%. In March 2018, the Company and Opus Bank entered into Amendment Number Eight to Credit Agreement (“Amendment Number Eight”). Under the terms of Amendment Number Eight, the maturity date for the revolving and term loan credit facilities were extended to May 31, 2018. In consideration for the extension, the Company agreed to pay a fee of $0.1 million, payable in cash on the date on which the obligations under the Credit Agreement are paid in full. The term loan and revolving credit facility contain customary covenants, including covenants that limit or restrict the Company’s ability to incur liens, incur indebtedness, or make certain restricted payments. Upon the occurrence of an event of default under the term loan, the holder may declare all amounts outstanding to be immediately due and payable. The term loan and revolving credit facility specify a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other materials indebtedness, bankruptcy and insolvency defaults, and material judgment defaults. As of September 30, 2018, the Company was in compliance with all covenants of the term loan and revolving credit facility. At September 30, 2018, the outstanding balances of the term loan and revolving credit facility were $10.5 million and $8.3 million, respectively. For the three months ended September 30, 2018 and 2017, interest expense, including amortization of debt costs, on the term loan and revolving credit facility was $1.0 million and $0.5 million, respectively, and $2.5 million and $2.8 million for the nine months ended September 30, 2018 and 2017, respectively. At September 30, 2018, there was $0.3 million of accrued interest included in accrued liabilities.

Fair Value Measurements

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Measurements

The authoritative guidance for fair value measurements establishes a three tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

Our financial instruments include cash equivalents, accounts receivable, prepaid expenses, accounts payable, accrued expenses, credit facility, debt and related party debt. Fair value estimates of these instruments are made at a specific point in time, based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. The carrying amount of cash equivalents, accounts receivable, prepaid expenses, accounts payable and accrued expenses are generally considered to be representative of their respective fair values because of the short-term nature of those instruments. The carrying amount of the credit facility borrowings approximate their fair value as the interest rate of the credit facility is substantially comparable to rates offered for similar debt instruments. The carrying value of debt and related party debt approximates its fair value as the borrowing rates are substantially comparable to rates available for loans with similar terms.

The following table provides information by level for liabilities that are measured at fair value using significant unobservable inputs (Level 3) (in thousands):



Warrant liability as of December 31, 2017	$	1,669
Adoption of accounting guidance	(46		)
Change in fair value of warrants	(259		)
Reclassification to equity resulting from warrant exchange agreement	(1,364		)
Warrant liability as of September 30, 2018	$	—

Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis

The Company's non-financial assets such as goodwill, intangible assets and property and equipment are recorded at fair value when an impairment is recognized or at the time acquired in a business combination.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Share Capital

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Share Capital

In April 2018, the Company closed an underwritten public offering and issued 412,500 common shares and warrants to purchase up to an aggregate of 123,750 common shares at an aggregate purchase price of $5.60 per common share and accompanying warrant, as well as a concurrent closing of warrants to purchase an additional 14,063 common shares pursuant to the partial exercise of the over-allotment option granted to the underwriter. Gross proceeds, before underwriting discounts and commissions and other offering expenses, were approximately $2.3 million.

In May 2018, the Company issued 80,100 common shares to satisfy payment obligations incurred by the Company in the aggregate amount of $0.3 million. The obligations were related to the Share Purchase Agreement entered into in February 2018.

Reverse Stock Split

On October 24, 2018, subject to the approval by the Company’s shareholders (which approval was obtained at the special shareholder meeting held on October 31, 2018), the Board of Directors of the Company authorized a share consolidation (also known as a reverse stock split) of the Company’s issued and outstanding common shares at a ratio of one-for-eight, which became effective on November 5, 2018. All share and per share amounts have been restated for all periods presented to reflect the share consolidation.

Warrants

At September 30, 2018, the Company had the following outstanding warrants to purchase common shares:



Date issued	Contractual life (years)	Exercise price	Number outstanding		Expiration
May 2015	5	$800.00	4,200		May 31, 2020
October 2015	5	$466.00	2,010		October 14, 2020
December 2015	3	$308.00	2,500		December 21, 2018
December 2015	5	$500.00	5,138		December 15, 2020
December 2015	5	$216.00	7,500	(1)	December 4, 2020
January 2016	3	$412.00	442		November 30, 2018
February 2016	3	$324.00	2,500		February 26, 2019
March 2016	5	$500.00	150		March 4, 2021
November 2016	3	$400.00	125		November 8, 2019
December 2016	6	$2.00	4,310		December 30, 2022
March 2017	6	$2.00	1,995		April 18, 2023
March 2017	6	$2.00	4,405		June 1, 2023
August 2017	5	$42.00	37,500		August 11, 2022
August 2017	5	$42.00	11,876		August 16, 2022
August 2017	5	$42.00	25,625		August 22, 2022
April 2018	5	$5.60	137,813		April 17, 2023
			248,089	(2)

_______________


(1)	If the Company or any subsidiary thereof, at any time while this warrant is outstanding, enters into a Variable Rate Transaction (“VRT”) (as defined in the purchase agreement) and the issue price, conversion price or exercise price per share applicable thereto is less than the warrant exercise price then in effect, the exercise price shall be reduced to equal the VRT price.


(2)	Includes warrants to purchase up to 42,500 common shares, in the aggregate, outstanding to related parties at September 30, 2018.

Related Party Share Capital Transactions

In August 2017, the Company entered into a securities purchase agreement with certain investors pursuant to which the Company issued (i) 75,000 common shares, of which 49,375 common shares were issued to related parties, and (ii) warrants for the purchase of up to 75,000 common shares, of which warrants to purchase up to 49,375 common shares were issued to related parties, in a private placement in exchange for a cash payment of $3.0 million. The purchase price was $40.00 per common share and warrant to purchase one common share, and the exercise price of the warrants is $42.00 per warrant share. The warrants were subject to certain anti-dilution adjustments through December 2017.

In July 2017, the Company entered into amended and restated warrant agreements with certain holders of warrants previously issued in March 2016 (the “Amended March 2016 Warrant”) and between December 2016 and March 2017 (the “Amended March 2017 Warrants” and together with the Amended March 2016 Warrant, the “Amended and Restated Warrants”). Pursuant to the amended and restated warrant agreements, the Company issued an aggregate of 202,240 common shares, of which 164,423 common shares were issued to related parties, in exchange for the cancellation of such warrants. Immediately after the exchange, the amended and restated warrant agreements became null and void.

In March 2017, the Company entered into a securities purchase agreement with certain investors party thereto, pursuant to which the Company issued to the investors, in the aggregate, 102,273 of the Company’s common shares, of which 22,727 common shares and warrants to purchase 22,727 shares were issued to a related party, for gross proceeds of $4.5 million. The securities purchase agreement also provided for the concurrent private placement of warrants exercisable to purchase up to 108,409 common shares. Each warrant had an exercise price of $60.00 per warrant share. In August 2017, the Company issued additional common shares, which triggered a price adjustment for the March 2017 warrants from $60.00 to $40.00 and the Company issued, in the aggregate, additional warrants exercisable to purchase up to 54,205 common shares, of which a related party received warrants exercisable to purchase 11,364 common shares. In March 2018, the Company entered into warrant exchange agreements, in a privately negotiated exchange under Section 4(a)(2) of the Securities Act of 1933, as amended, pursuant to which the Company issued 178,875 common shares in exchange for the surrender and cancellation of the Company’s outstanding March 24, 2017 warrants (the “Exchange”). Immediately after the Exchange, the previously issued warrants became null and void. A related party participated in the Exchange by acquiring 37,500 common shares in exchange for the cancellation of a warrant to purchase 34,091 common shares.

Between December 30, 2016 and March 16, 2017, the Company completed a private placement and issued a total of 90,700 “Units” at a purchase price of $60.00 per Unit, of which 71,792 Units were issued to related parties. Each Unit consisted of one common share and one warrant from each of two series of warrants. The Company received gross proceeds of $5.4 million in connection with the sale of the Units. The warrants were exercisable to purchase 181,400 common shares in the aggregate. In July 2017, the warrants issued between December 30, 2016 and March 16, 2017 became null and void as a result of the amended and restated warrant agreements.

Equity Incentive Plan

9 Months Ended

Sep. 30, 2018

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

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

Equity Incentive Plans

During the nine months ended September 30, 2018 and 2017, the Company granted awards of restricted stock units of 50 and 67,694, respectively, of which 25,779 were granted outside of the 2015 Performance Incentive Plan. The restricted stock units were recorded at fair value on the date of grant. During the nine months ended September 30, 2018 and 2017, the Company granted awards of stock options of zero and 10,825, respectively. The stock options were recorded at fair value using the Black-Scholes option pricing model on the date of grant. The restricted stock units and stock options typically vest over a period of approximately three years.

Restricted Stock Awards

During the nine months ended September 30, 2018 and 2017, the Company granted restricted stock awards (“RSA”) in lieu of cash payment for services performed by third parties. The estimated fair value of the RSAs was based on the market value of the Company’s common shares on the date of grant. During the nine months ended September 30, 2018 and 2017, the Company granted RSAs of 100,197 and 1,842, respectively, with a fair value of $1.0 million and $0.1 million, respectively.

Stock Options

The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model, which uses the weighted-average assumptions noted in the following table:



	Nine Months Ended September 30,
	2018	2017
Expected volatility	n/a	120.0	%
Risk-free interest rate	n/a	2.1	%
Dividend yield	n/a	—
Expected term (in years)	n/a	4.7

The expected volatility was based on the Company’s historical share price. The risk-free interest rate is determined based upon a constant maturity U.S. Treasury security with a contractual life approximating the expected term of the option. The expected term of options granted is estimated based on a number of factors, including but not limited to the vesting term of the award, historical employee exercise behavior, the expected volatility of the Company’s common shares and an employee’s average length of service.

Share-Based Compensation Expense

The Company recorded the following compensation expense related to its share-based compensation awards (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Cost of sales	$	4	$	104	$	46	$	271
Sales and marketing	23		551		301		1,574
Research and development	37		370		191		1,080
General and administrative	191		956		982		2,722
Total share-based compensation expense	$	255	$	1,981	$	1,520	$	5,647

As of September 30, 2018, there was a total of $1.4 million of unrecognized compensation expense related to unvested equity-based compensation awards. The expense associated with non-vested restricted stock units and options awards granted as of September 30, 2018 is expected to be recognized over a weighted-average period of 1.5 years.

Net Loss Per Share

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Net Loss per Share

Basic net loss per share is computed by dividing net loss applicable to common shareholders by the weighted-average number of common shares outstanding during the period. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position.

Anti-dilutive common share equivalents excluded from the computation of diluted net loss per share were as follows (in thousands):



	Three and Nine Months Ended September 30,
	2018	2017
Common share purchase warrants	248	274
Restricted stock not yet vested or released	73	55
Options outstanding	20	24
Convertible notes	—	41
Convertible notes interest	—	83

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	Related Party Transactions Professional services provided by affiliates of the Company were $0.2 million and zero during the three months ended September 30, 2018 and 2017, respectively, and $0.7 million and zero during the nine months ended September 30, 2018 and 2017, respectively.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Letters of credit

During the ordinary course of business, the Company provides standby letters of credit to third parties as required for certain transactions initiated by the Company. As of September 30, 2018, the Company had no outstanding standby letters of credit.

Warranty and Extended Warranty

The Company had $0.6 million and $0.8 million in deferred costs included in other current and non-current assets related to deferred service revenue at September 30, 2018 and December 31, 2017, respectively. Changes in the liability for product warranty and deferred revenue associated with extended warranties and service contracts were as follows (in thousands):



	Product Warranty			Deferred Revenue
Liability at December 31, 2017	$	996		$	5,672
Settlements made during the period	(331		)	(4,352		)
Change in liability for warranties issued during the period	322			3,438
Change in liability for pre-existing warranties	11			—
Liability at September 30, 2018	$	998		$	4,758
Current liability	$	616		$	3,122
Non-current liability	382			1,636
Liability at September 30, 2018	$	998		$	4,758

Litigation

The Company is, from time to time, subject to claims and suits arising in the ordinary course of business. In the opinion of management, the ultimate resolution of such pending proceedings will not have a material effect on the Company’s results of operations, financial position or cash flows.

Patent Litigation Funding Agreement

In December 2010, Overland entered into a litigation funding agreement (the “Funding Agreement”) with Special Situations Fund III QP, L.P., Special Situations Private Equity Fund, L.P., Special Situations Technology Fund, L.P., and Special Situations Technology Fund II, L.P. (collectively, the “Special Situations Funds”) pursuant to which the Special Situations Funds agreed to fund certain patent litigation brought by Overland. In May 2014, the Special Situations Funds filed a complaint against Overland in the Supreme Court for New York County, alleging breach of the Funding Agreement. The Special Situations Funds alleged that Overland’s January 2014 acquisition of Tandberg Data entitled the Special Situation Funds to a $6.0 million payment under the Funding Agreement, and therefore Overland’s refusal to make the payment constituted a breach of the Funding Agreement by Overland. In November 2014, the Special Situations Funds amended their complaint to allege that Overland breached the Funding Agreement’s implied covenant of good faith and fair dealing by settling the patent litigation with BDT in bad faith to avoid a payment obligation under the Funding Agreement. The Special Situations Funds sought $6.0 million in contractual damages as well as costs and fees. On October 10, 2017, the Court entered an order granting Overland’s motion for summary judgment and dismissing the Special Situations Funds’ complaint in its entirety with prejudice, and in April 2018, the parties entered into a settlement agreement ending the litigation that did not require payment from either party.

Other

In January 2018, Mr. Vito Lupis filed a statement of claim in the Ontario Court of Justice alleging, among other things, breach of contracts, deceit and negligence against Mr. Giovanni J. Morelli, a former officer of the Company, and vicarious liability against the Company, in connection with stock purchase agreements and other related agreements that would have been entered into between Mr. Lupis and the Company in 2012. The Company believes the allegations are without merit and plans to vigorously defend itself against the allegations.

In April 2015, we filed a proof of claim in connection with bankruptcy proceedings of V3 Systems, Inc. (“V3”) based on breaches by V3 of the Asset Purchase Agreement entered into between V3 and the Company dated February 11, 2014 (the “APA”). On October 6, 2015, UD Dissolution Liquidating Trust (“UD Trust”), the apparent successor to V3, filed a complaint against us and certain of our current and former directors in the U.S. Bankruptcy Court for the District of Utah Central Division objecting to our proof of claim and asserting claims for affirmative relief against us and our directors. This complaint alleges, among other things, that Sphere 3D breached the APA and engaged in certain other actions and/or omissions that caused V3 to be unable to timely sell the Sphere 3D common shares received by V3 pursuant to the APA. The plaintiff seeks, among other things, monetary damages for the loss of the potential earn-out consideration, the value of the common shares held back by us pursuant to the APA and costs and fees. We believe the lawsuit to be without merit and intend to vigorously defend against the action.

On December 23, 2015, we filed a motion seeking to dismiss the majority of the claims asserted by the UD Trust. On January 13, 2016, we filed a counterclaim against the UD Trust in which we allege that V3 breached numerous provisions of the APA. On July 22, 2016, we filed a motion seeking to transfer venue of this action to the United States District Court for the District of Delaware. The Bankruptcy Court granted our motion to transfer venue on August 30, 2016, and the case was formally transferred to the Delaware Court on October 11, 2016. There is currently no hearing set on our motion to dismiss.

In March 2018, UD Trust filed a complaint in U.S. District Court, Northern California District (“California Complaint”) asserting that two transactions involving the Company constitute fraudulent transfers under federal and state law. First, UD Trust alleges that the consolidation of the Company’s and its subsidiaries’ indebtedness to the Cyrus Group into a debenture between FBC and the Company in the principal amount of $19.5 million in December 2014 constitutes a fraudulent transfer. Second, UD Trust alleges that the Share Purchase Agreement constitutes a fraudulent transfer, and seeks to enjoin the Share Purchase or that the proceeds of the transaction be placed in escrow until the V3 litigation is resolved. The California Complaint also asserts a claim against the Company’s CEO for breach of fiduciary duty, and a claim against the Cyrus Group for aiding and abetting breach of fiduciary duty. We believe the lawsuit to be without merit and intend to vigorously defend against the action. On July 25, 2018, we filed a motion seeking to dismiss all of the claims asserted against the Company and its CEO. On the same day, the Cyrus Group filed a motion seeking to dismiss all claims asserted against the Cyrus Group.

Segmented Information (Notes)

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Segmented Information

The Company reports segment information as a single reportable business segment based upon the manner in which related information is organized, reviewed, and managed. The Company operates in one segment providing data storage and desktop virtualization solutions for small and medium businesses and distributed enterprises.

The following table summarizes net revenue (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Disk systems	$	10,113	$	14,144	$	35,947	$	40,601
Tape automation systems	1,680		2,491		5,765		7,295
Tape drives and media	2,062		2,993		5,851		8,272
Service	2,036		2,051		6,237		6,687
	$	15,891	$	21,679	$	53,800	$	62,855

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2018
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The condensed consolidated financial statements of the Company have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”), applied on a basis consistent for all periods. These condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany balances and transactions have been appropriately eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management estimates relate to the determination of provisions for impairment assessments of goodwill, other indefinite-lived intangible assets and long-lived assets; deferred revenue; allowance for doubtful receivables; inventory valuation; warranty provisions; deferred income taxes; and litigation claims. Actual results could differ from these estimates.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	Foreign Currency Translation The financial statements of foreign subsidiaries, for which the functional currency is the local currency, are translated into U.S. dollars using the exchange rate at the consolidated balance sheet date for assets and liabilities and a weighted-average exchange rate during the year for revenue, expenses, gains and losses. Translation adjustments are recorded as other comprehensive income (loss) within shareholders’ equity. Gains or losses from foreign currency transactions are recognized in the consolidated statements of operations.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash Equivalents Highly liquid investments with insignificant interest rate risk and original maturities of three months or less, when purchased, are classified as cash equivalents. Cash equivalents are composed of money market funds. The carrying amounts approximate fair value due to the short maturities of these instruments.
Trade and Other Accounts Receivable, Policy [Policy Text Block]	Accounts Receivable Accounts receivable is recorded at the invoiced amount and is non-interest bearing. We estimate our allowance for doubtful accounts based on an assessment of the collectability of specific accounts and the overall condition of the accounts receivable portfolio. When evaluating the adequacy of the allowance for doubtful accounts, we analyze specific trade and other receivables, historical bad debts, customer credits, customer concentrations, customer credit-worthiness, current economic trends and changes in customers’ payment terms and/or patterns. We review the allowance for doubtful accounts on a quarterly basis and record adjustments as considered necessary. Customer accounts are written-off against the allowance for doubtful accounts when an account is considered uncollectable.
Inventories, Policy [Policy Text Block]	Inventories Inventories are stated at the lower of cost and net realizable value using the first-in-first-out method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We assess the value of inventories periodically based upon numerous factors including, among others, expected product or material demand, current market conditions, technological obsolescence, current cost, and net realizable value. If necessary, we write down inventory for obsolete or unmarketable inventory by an amount equal to the difference between the cost of the inventory and the net realizable value.
Goodwill and Intangible Assets, Policy [Policy Text Block]	Goodwill and Intangible Assets Goodwill represents the excess of consideration paid over the value assigned to the net tangible and identifiable intangible assets acquired. For intangible assets purchased in a business combination, the estimated fair values of the assets received are used to establish their recorded values. For intangible assets acquired in a non-monetary exchange, the estimated fair values of the assets transferred (or the estimated fair values of the assets received, if more clearly evident) are used to establish their recorded values. Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. Purchased intangible assets are amortized on a straight-line basis over their economic lives of six to 25 years for channel partner relationships, three to nine years for developed technology, three to eight years for capitalized development costs, and two to 25 years for customer relationships as this method most closely reflects the pattern in which the economic benefits of the assets will be consumed.
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]	Impairment of Goodwill, Intangible Assets and Long-Lived Assets Goodwill and intangible assets are tested for impairment on an annual basis at December 31, or more frequently if there are indicators of impairment. Triggering events for impairment reviews may be indicators such as adverse industry or economic trends, restructuring actions, lower projections of profitability, or a sustained decline in our market capitalization. Intangible assets are quantitatively assessed for impairment, if necessary, by comparing their estimated fair values to their carrying values. If the carrying value exceeds the fair value, the difference is recorded as an impairment. Long-lived assets are reviewed for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable. Our consideration includes, but is not limited to: (i) significant under-performance relative to historical or projected future operating results; (ii) significant changes in the manner of use of the assets or the strategy for the Company’s overall business; (iii) significant decrease in the market value of the assets; and (iv) significant negative industry or economic trends. When the carrying value is not considered recoverable, an impairment loss for the amount by which the carrying value of a long-lived asset exceeds its fair value is recognized, with an offsetting reduction in the carrying value of the related asset.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition The Company primarily generates revenue from solutions for standalone storage and long-term data archive products, as well as enterprise storage management solutions which are primarily grouped into three categories: (i) disk systems, (ii) tape automation systems, tape drive and media, and (iii) warranty and customer services. Approximately 90% of the Company’s revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied at a point in time. These contracts generally have a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when change of control has been transferred to the customer, generally at the time of shipment of products. The Company sells its products both directly to customers and through distributors generally under agreements with payment terms typically less than 45 days. Revenue on direct product sales, excluding sales to distributors, are not entitled to any specific right of return or price protection, except for any defective product that may be returned under our standard product warranty. Product sales to distribution customers are subject to certain rights of return, stock rotation privileges and price protections, that create “variable considerations”. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products and is generally based upon a negotiated fixed price and is net of estimates for variable considerations. For performance obligations related to warranty and customer services, such as extended product warranties, the Company transfers control and recognizes revenue over time on a ratable basis. The performance obligations are satisfied as services are rendered typically on a straight-line basis over the contract term, which is generally 12 months. In limited circumstances where a customer is unable to accept shipment and requests products be delivered to, and stored on, the Company’s premises, also known as a “bill-and-hold” arrangements, revenue is recognized when: (i) the customer has requested delayed delivery and storage of the products, (ii) the goods are segregated from the inventory, (iii) the product is complete, ready for shipment and physical transfer to the customer, and (iv) the Company does not have the ability to use the product or direct it to another customer. The Company enters into revenue arrangements that may consist of multiple performance obligations, of its product and service offerings, such as for sales of hardware devices and extended warranty services. The Company allocates revenue to the performance obligations in multiple element arrangements based on relative selling prices. The Company determines the transaction price based on its normal pricing and discounting practices for the specific product or service when sold separately. When the Company is not able to establish the individual transaction price for all performance obligations in an arrangement with multiple elements, the Company determines the selling price of each element based on third party evidence of selling price or based on the Company’s actual historical selling prices of similar items, whichever management believes provides the most reliable estimate of expected selling prices
Standard Product Warranty, Policy [Policy Text Block]	Warranty and Extended Warranty The Company records a provision for standard warranties provided with all products. If future actual costs to repair were to differ significantly from estimates, the impact of these unforeseen costs or cost reductions would be recorded in subsequent periods.
Extended Product Warranty, Policy [Policy Text Block]	Separately priced extended on-site warranties and service contracts are offered for sale to customers on all product lines. The Company contracts with third party service providers to provide service relating to on-site warranties and service contracts. Extended warranty and service contract revenue and amounts paid in advance to outside service organizations are deferred and recognized as service revenue and cost of service, respectively, over the period of the service agreement.
Shipping and Handling Cost, Policy [Policy Text Block]	Shipping and Handling Amounts billed to customers for shipping and handling are included in product revenue, and costs incurred related to shipping and handling are included in cost of product revenue.
Research and Development Expense, Policy [Policy Text Block]	Research and Development Costs Research and development expenses include payroll, employee benefits, share-based compensation expense, and other headcount-related expenses associated with product development. Research and development expenses also include third party development and programming costs, localization costs incurred to translate software for international markets, and the amortization of purchased software code and services content. Such costs related to software development are included in research and development expense until the point that technological feasibility is reached, which for our software products, is generally shortly before the products are released to manufacturing. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue over the estimated lives of the products.
Segment Reporting, Policy [Policy Text Block]	Segment Information We report segment data based on the management approach. The management approach designates the internal reporting that is used by management for making operating and investment decisions and evaluating performance as the source of our reportable segments. We use one measurement of profitability and do not disaggregate our business for internal reporting. We operate in one segment providing data management, and desktop and application virtualization solutions for small and medium businesses and distributed enterprises. We disclose information about products and services, geographic areas, and major customers.
Comprehensive Income, Policy [Policy Text Block]	Comprehensive Loss Comprehensive loss and its components encompasses all changes in equity other than those arising from transactions with shareholders, including net loss and foreign currency translation adjustments, and is disclosed in a separate consolidated statement of comprehensive loss.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Share-based Compensation We account for share-based awards, and similar equity instruments, granted to employees, non-employee directors, and consultants under the fair value method. Share-based compensation award types include stock options and restricted stock. We use the Black-Scholes option pricing model to estimate the fair value of option awards on the measurement date, which generally is the date of grant. The expense is recognized over the requisite service period (usually the vesting period) for the estimated number of instruments for which service is expected to be rendered. The fair value of restricted stock units (“RSUs”) is estimated based on the market value of the Company’s common shares on the date of grant. The fair value of options granted to non-employees is estimated at the measurement date using the Black-Scholes option pricing model and the unvested options remeasured at each reporting date, with changes in fair value recognized in expense in the consolidated statement of operations. Share-based compensation expense for options with graded vesting is recognized pursuant to an accelerated method. Share-based compensation expense for RSUs is recognized over the vesting period using the straight-line method. Share-based compensation expense for an award with performance conditions is recognized when the achievement of such performance conditions are determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. Forfeitures are recognized in share-based compensation expense as they occur. We have not recognized, and do not expect to recognize in the near future, any tax benefit related to share-based compensation cost as a result of the full valuation allowance of our net deferred tax assets and its net operating loss carryforward.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date. If not discussed, the Company believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. In June 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-07, ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07). The update aligns measurement and classification guidance for share-based payments to nonemployees with the guidance applicable to employees. Under the new guidance, the measurement of equity-classified nonemployee awards will be fixed at the grant date. The update is effective for annual reporting periods, including interim periods, beginning after December 15, 2018, with early adoption permitted. We do not expect the adoption of ASU 2018-07 to have a material effect on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). The update simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. An entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, if applicable. The loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The same impairment test also applies to any reporting unit with a zero or negative carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The update is effective for annual reporting periods, including interim periods, beginning after December 15, 2019, on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. We do not expect the adoption of ASU 2017-04 to have a material effect on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). The update increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosing key information about leasing arrangements. The update is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. Recently Adopted Accounting Pronouncements On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers and all the related amendments, or Accounting Standards Codification (“ASC”) Topic 606. Under Topic 606, an entity is required to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Topic 606 defines a five-step process in order to achieve this core principle, which may require the use of judgment and estimates, and also requires expanded qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and estimates used. The adoption of the new standard requires the recognition of revenues generally upon shipment to our customers for both distributors and direct consumers also known as “sell-in basis” for sales of products to certain customers which had previously been recognized on a “sell-through basis” or when the product was ultimately shipped to the end consumer. We elected to adopt this guidance using the modified retrospective method and it resulted in a cumulative adjustment reducing our accumulated deficit by approximately $0.3 million. Comparative prior periods were not adjusted and continue to be reported under FASB ASC Topic 605, Revenue Recognition. In connection with the adoption of Topic 606, we are required to capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed. The Company elected to follow a Topic 606 practical expedient and expense the incremental costs of obtaining a contract (sales commissions) when incurred because the amortization period is generally one year or less and capitalized long-term contract costs are not significant. For certain performance obligations related to services, extended warranty and other service agreements that are settled over time, the Company has elected not to adjust the transaction price for the consideration of the effects of time value of money for prepaid services from customers as these services and warranty services are usually fully amortized in one year or less. The impact of the adoption of ASC 606 on our unaudited consolidated balance sheet and our unaudited consolidated statements of operations, comprehensive loss, equity and cash flows was not material. We do not expect the adoption of this guidance to have a material effect on our results of operations in future periods. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The update addresses eight cash flow classification issues and how they should be reported in the statement of cash flows. The update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The adoption of the new standard on January 1, 2018 did not have a material effect on our cash flows. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting (“ASU 2017-09”). The update provides clarity and is expected to reduce both diversity in practice and the cost and complexity when accounting for a change to the terms of a stock-based award. The update is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017, on a prospective basis. The adoption of the new standard on January 1, 2018 did not have a material effect on our financial position, results of operations or cash flows. In July 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815) (“ASU 2017-11”). The update changes the classification of certain equity-linked financial instruments (or embedded features) with down round features. The update also clarifies existing disclosure requirements for equity-classified instruments. The update is effective retrospectively for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. We early adopted the new standard effective January 1, 2018 and it did not have a material effect on our financial position, results of operations or cash flows.

Business Combination (Tables)

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

A summary of the estimated fair values of the assets acquired and liabilities assumed as of the closing date were as follows (in thousands):



Cash	$	49
Accounts receivable	582
Inventory	206
Identifiable intangible assets	1,260
Other assets	45
Total identifiable assets acquired	2,142
Accounts payable and accrued liabilities	(359		)
Deferred revenue	(518		)
Net identifiable assets acquired	1,265
Goodwill	522
Net assets acquired	$	1,787

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The identified intangible assets as of the date of acquisition consisted of the following (in thousands):



	Estimated Fair Value		Weighted- Average Useful Life (years)
Channel partner relationships	$	730	6.0
Customer relationships	380		3.2
Developed technology	150		3.0
Total identified intangible assets	$	1,260

Inventories (Tables)

9 Months Ended

Sep. 30, 2018

Balance Sheet Related Disclosures [Abstract]

Schedule of Inventory, Current [Table Text Block]

The following table summarizes inventories (in thousands):



	September 30, 2018		December 31, 2017
Raw materials	$	1,764	$	1,222
Work in process	1,763		2,217
Finished goods	4,473		4,927
	$	8,000	$	8,366

Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

The following table summarizes intangible assets, net (in thousands):



	September 30, 2018			December 31, 2017
Developed technology	$	23,414		$	23,414
Channel partner relationships⁽¹⁾	12,869			12,929
Capitalized development costs⁽¹⁾	3,047			3,164
Customer relationships⁽¹⁾	1,619			1,647
	40,949			41,154
Accumulated amortization:
Developed technology	(17,249		)	(15,276		)
Channel partner relationships⁽¹⁾	(1,664		)	(1,201		)
Capitalized development costs⁽¹⁾	(1,635		)	(1,409		)
Customer relationships⁽¹⁾	(692		)	(495		)
	(21,240		)	(18,381		)
Total finite-lived assets, net	19,709			22,773
Indefinite-lived intangible assets - trade names	18,700			18,700
Total intangible assets, net	$	38,409		$	41,473

________________


(1)	Includes the impact of foreign currency exchange rate fluctuations.

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

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

The following table provides information by level for liabilities that are measured at fair value using significant unobservable inputs (Level 3) (in thousands):



Warrant liability as of December 31, 2017	$	1,669
Adoption of accounting guidance	(46		)
Change in fair value of warrants	(259		)
Reclassification to equity resulting from warrant exchange agreement	(1,364		)
Warrant liability as of September 30, 2018	$	—

Share Capital (Tables)

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Schedule of Warrants [Table Text Block]

At September 30, 2018, the Company had the following outstanding warrants to purchase common shares:



Date issued	Contractual life (years)	Exercise price	Number outstanding		Expiration
May 2015	5	$800.00	4,200		May 31, 2020
October 2015	5	$466.00	2,010		October 14, 2020
December 2015	3	$308.00	2,500		December 21, 2018
December 2015	5	$500.00	5,138		December 15, 2020
December 2015	5	$216.00	7,500	(1)	December 4, 2020
January 2016	3	$412.00	442		November 30, 2018
February 2016	3	$324.00	2,500		February 26, 2019
March 2016	5	$500.00	150		March 4, 2021
November 2016	3	$400.00	125		November 8, 2019
December 2016	6	$2.00	4,310		December 30, 2022
March 2017	6	$2.00	1,995		April 18, 2023
March 2017	6	$2.00	4,405		June 1, 2023
August 2017	5	$42.00	37,500		August 11, 2022
August 2017	5	$42.00	11,876		August 16, 2022
August 2017	5	$42.00	25,625		August 22, 2022
April 2018	5	$5.60	137,813		April 17, 2023
			248,089	(2)

_______________


(1)	If the Company or any subsidiary thereof, at any time while this warrant is outstanding, enters into a Variable Rate Transaction (“VRT”) (as defined in the purchase agreement) and the issue price, conversion price or exercise price per share applicable thereto is less than the warrant exercise price then in effect, the exercise price shall be reduced to equal the VRT price.


(2)	Includes warrants to purchase up to 42,500 common shares, in the aggregate, outstanding to related parties at September 30, 2018.

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

Equity Incentive Plan (Tables)

9 Months Ended

Sep. 30, 2018

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

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

The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model, which uses the weighted-average assumptions noted in the following table:



	Nine Months Ended September 30,
	2018	2017
Expected volatility	n/a	120.0	%
Risk-free interest rate	n/a	2.1	%
Dividend yield	n/a	—
Expected term (in years)	n/a	4.7

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

The Company recorded the following compensation expense related to its share-based compensation awards (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Cost of sales	$	4	$	104	$	46	$	271
Sales and marketing	23		551		301		1,574
Research and development	37		370		191		1,080
General and administrative	191		956		982		2,722
Total share-based compensation expense	$	255	$	1,981	$	1,520	$	5,647

Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

Anti-dilutive common share equivalents excluded from the computation of diluted net loss per share were as follows (in thousands):



	Three and Nine Months Ended September 30,
	2018	2017
Common share purchase warrants	248	274
Restricted stock not yet vested or released	73	55
Options outstanding	20	24
Convertible notes	—	41
Convertible notes interest	—	83

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Product Warranty Liability [Table Text Block]

Changes in the liability for product warranty and deferred revenue associated with extended warranties and service contracts were as follows (in thousands):



	Product Warranty			Deferred Revenue
Liability at December 31, 2017	$	996		$	5,672
Settlements made during the period	(331		)	(4,352		)
Change in liability for warranties issued during the period	322			3,438
Change in liability for pre-existing warranties	11			—
Liability at September 30, 2018	$	998		$	4,758
Current liability	$	616		$	3,122
Non-current liability	382			1,636
Liability at September 30, 2018	$	998		$	4,758

Segmented Information (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Revenue from External Customers by Products and Services [Table Text Block]

The following table summarizes net revenue (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Disk systems	$	10,113	$	14,144	$	35,947	$	40,601
Tape automation systems	1,680		2,491		5,765		7,295
Tape drives and media	2,062		2,993		5,851		8,272
Service	2,036		2,051		6,237		6,687
	$	15,891	$	21,679	$	53,800	$	62,855

Organization and Business Going Concern (Details)	9 Months Ended
Organization and Business Going Concern (Details)	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Substantial Doubt about Going Concern, Conditions or Events	Based upon the Company's current expectations and projections for the next year, the Company believes that it may not have sufficient liquidity necessary to sustain operations beyond November 19, 2018. These factors, among others, raise substantial doubt that the Company will be able to continue as a going concern

Organization and Business (Details) - USD ($)	9 Months Ended
Organization and Business (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Share Purchase Agreement Maximum Termination Fee
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Share Purchase Agreement Proceeds	$ 45,000,000
Share Purchase Agreement Terms	Purchase Price will be satisfied through and upon (i) the issuance to the Company shares of Series A Preferred Stock of Purchaser representing 19.9% of the fully diluted outstanding securities of Purchaser as of the closing of the Share Purchase (or such other percentage as mutually agreed upon by Purchaser and the Company), and (ii) the release of the Company and all of its subsidiaries (other than Overland) from all the obligations and liabilities under the Closing Indebtedness (as defined below) and assumption thereof by Purchaser. For purposes of the Purchase Agreement, as amended by the Second Amendment, “Closing Indebtedness” means the Indebtedness (as defined in the Purchase Agreement) totaling approximately $39.1 million. The value of the liabilities of the Company that will be released upon the closing is expected to be not less than $45.0 million (the amount of the Purchase Price).
Shareholder Votes Needed to Approve Share Purchase Agreement	affirmative vote of the holders of (a) at least 66 2/3% of the outstanding common shares of the Company cast in person or by proxy at the special meeting of shareholders and (b) a majority of the votes cast by certain “minority shareholders” in person or by proxy at the special meeting of shareholders (the “Shareholder Approval”), both of which votes were obtained at the special shareholder meeting on May 31, 2018
Termination of Share Purchase, reimbursement of expense to Purchaser	$ 350,000
Share Purchase Agreement Maximum Termination Fee	$ 1,000,000
Sale Purchase Agreement End of Life	Dec. 17, 2018

Organization and Business Reverse Stock Split (Details)	Nov. 05, 2018
Subsequent Event [Member]
Subsequent Event [Line Items]
Stockholders' Equity, Reverse Stock Split	share consolidation (also known as a reverse stock split) of the Company’s issued and outstanding common shares at a ratio of one-for-eight

Significant Accounting Policies (Details) $ in Millions	3 Months Ended		9 Months Ended
Significant Accounting Policies (Details) $ in Millions	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)
Accounting Policies [Abstract]
Foreign Currency Transaction (Loss) Gain	$ (0.2)	$ 0.4	$ (0.6)	$ 0.8
Number of Operating Segments			1

Significant Accounting Policies Intangible Assets (Details)	9 Months Ended
	Sep. 30, 2018
Channel partner relationships [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	6 years
Channel partner relationships [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	25 years
Developed Technology Rights [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years
Developed Technology Rights [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	9 years
Capitalized Development [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years
Capitalized Development [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	8 years
Customer Relationships [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	2 years
Customer Relationships [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	25 years

Significant Accounting Policies New Accounting Pronouncements (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Effect of Adoption ASU 2014-09	$ (46)
Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Effect of Adoption ASU 2014-09	$ 300

Business Combination UCX and HVE (Details) - USD ($)		3 Months Ended	9 Months Ended
Business Combination UCX and HVE (Details) - USD ($)	Jan. 27, 2017	Dec. 31, 2016	Sep. 30, 2017
Business Acquisition [Line Items]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage		19.90%
Cost Method Investments, Original Cost		$ 1,500,000
Business Acquisition, Equity Interest Issued, Number of Shares	11,029	19,737
Payments to Acquire Businesses, Gross	$ 1,100,000
Business Combination, Consideration Transferred, Equity Interests Issued	$ 300,000
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Loss			$ 1,100,000
Business Combination, Acquisition Related Costs			$ 34,000

Business Combination UCX and HVE acquisition (Details) $ in Thousands	Jan. 27, 2017 USD ($)
Business Combinations [Abstract]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash	$ 49
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables	582
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	206
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	1,260
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Other	45
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	2,142
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Accounts Payable and Accrued Liabilities	(359)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Deferred Revenue	(518)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	1,265
Goodwill, Gross	522
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	$ 1,787

Business Combination UCX and HVE Identifiable Intangible Assets (Details) $ in Thousands	Jan. 27, 2017 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 1,260
Channel partner relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 730
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 years
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 380
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 years 2 months
Developed Technology Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 150
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 years

Inventories Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Inventory [Line Items]
Raw Materials	$ 1,764	$ 1,222
Work in Process	1,763	2,217
Finished Goods	4,473	4,927
Inventories	$ 8,000	$ 8,366

Intangible Assets Intangible Assets (Details) - USD ($)
$ in Thousands

Sep. 30, 2018

Dec. 31, 2017

Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Assets, Gross

$ 40,949

$ 41,154

Finite-Lived Intangible Assets, Accumulated Amortization

(21,240)

(18,381)

Finite-Lived Intangible Assets, Net

19,709

22,773

Indefinite-lived Intangible Assets (Excluding Goodwill)

18,700

Intangible Assets, Net

38,409

41,473

Developed Technology Rights [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Assets, Gross

23,414

Finite-Lived Intangible Assets, Accumulated Amortization

(17,249)

(15,276)

Channel partner relationships [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Assets, Gross

^[1]

12,869

12,929

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

(1,664)

(1,201)

Capitalized Development [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Assets, Gross

^[1]

3,047

3,164

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

(1,635)

(1,409)

Customer Relationships [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Assets, Gross

^[1]

1,619

1,647

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

$ (692)

$ (495)

[1]	Includes the impact of foreign currency exchange rate fluctuations.

Intangible Assets Amortization (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 0.8	$ 1.4	$ 2.9	$ 4.0
Amortization Expense, Remainder of Fiscal Year	0.8		0.8
Amortization Expense 2019	2.6		2.6
Amortization Expense 2020	2.5		2.5
Amortization Expense 2021	2.1		2.1
Amortization Expense 2022	1.9		1.9
Amortization Expense 2023	$ 1.5		$ 1.5

Debt Related Party Secured Note (Details) - USD ($)	3 Months Ended		9 Months Ended
Debt Related Party Secured Note (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2018	Dec. 31, 2014
Debt Instrument [Line Items]
Interest Expense, including amortization of debt costs, Related Party	$ 882,000	$ 614,000	$ 2,815,000	$ 1,912,000
FBC Holdings [Member]
Debt Instrument [Line Items]
Interest Expense, including amortization of debt costs, Related Party		100,000		$ 300,000
FBC Holdings [Member] \| Secured Debt [Member]
Debt Instrument [Line Items]
Convertible Debt	$ 24,500,000		$ 24,500,000			$ 19,500,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Convertible Debt, Current	$ 24,500,000		$ 24,500,000
Debt Instrument, Maturity Date			Nov. 19, 2018
Debt Instrument, Fee Amount					$ 700,000
Stock Issued for settlement of loan fees			120,319
Shares issued for payment of related party debt interest			99,051	22,040
Debt Instrument, Covenant Compliance			in compliance
Interest Expense, including amortization of debt costs, Related Party	500,000	$ 500,000	$ 2,300,000	$ 1,600,000
Interest Payable	$ 700,000		$ 700,000

Debt Related Party Promissory Note (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Debt, Related Party	$ 45,584		$ 45,584		$ 26,613
Interest Expense, including amortization of debt costs, Related Party	882	$ 614	2,815	$ 1,912
MF Ventures, related party
Related Party Transaction [Line Items]
Debt, Related Party	2,200		$ 2,200		$ 2,000
Related Party Debt Maturity Date			Dec. 11, 2020
Related Party Transaction, Terms and Manner of Settlement			(ii) immediately after repayment in full of the Company’s obligations under its debt and credit agreements with FBC Holdings; or (iii) immediately after refinancing of the Company’s obligations under its debt and credit agreements.
Debt instrument, prepayment penalty	300		$ 300
Related Party, Interest Rate			12.50%
Interest Expense, including amortization of debt costs, Related Party	$ 100		$ 200

Debt Related Party Term Loan (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Debt Instrument [Line Items]
Debt, Related Party	$ 45,584		$ 45,584		$ 26,613
Interest Expense, including amortization of debt costs, Related Party	$ 882	$ 614	$ 2,815	$ 1,912
FBC Holdings [Member]
Debt Instrument [Line Items]
Debt, Related Party					$ 2,500
Paid in Full Date			Jan. 31, 2018
Interest Expense, including amortization of debt costs, Related Party		$ 100		$ 300
Related Party, Interest Rate					20.00%

Debt Related Party Credit Agreement (Details) - USD ($)		3 Months Ended			9 Months Ended
Debt Related Party Credit Agreement (Details) - USD ($)	Jul. 23, 2018	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jul. 13, 2018	Jun. 30, 2018	Dec. 31, 2016	Apr. 06, 2016
Debt Instrument [Line Items]
Paid-In-Kind Interest Expense, Related Party					$ 511,000	$ 0
Debt [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount										$ 10,000,000
Line of Credit Facility, Maximum Borrowing Capacity									$ 8,200,000	$ 10,000,000
Interest Rate at Period End			8.25%					13.25%
Debt Instrument, Maturity Date			May 31, 2018
Debt Instrument, Fee Amount			$ 100,000				$ 400,000
Interest Expense, Debt, including amortization of debt costs		$ 1,000,000		$ 500,000	$ 2,500,000	$ 2,800,000
FBC Holdings [Member] \| Debt [Member]
Debt Instrument [Line Items]
Paid-In-Kind Interest Expense, Related Party		$ 200,000
Interest Rate at Period End		13.25%			13.25%
Line of Credit Facility, Expiration Date	Nov. 19, 2018
Debt Instrument, Maturity Date					Nov. 19, 2018
Debt Instrument, Covenant Compliance					in compliance
Debt Instrument, Current, Net		$ 10,500,000			$ 10,500,000
Line of Credit, Current		8,300,000			8,300,000
Interest Payable		300,000			$ 300,000
FBC Holdings [Member] \| Line of Credit [Member]
Debt Instrument [Line Items]
Paid-In-Kind Interest Expense, Related Party		$ 100,000

Fair Value Measurements (Details) $ in Thousands	9 Months Ended
Fair Value Measurements (Details) $ in Thousands	Sep. 30, 2018 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant Liability, beginning balance	$ 1,669
Effect of Adoption ASU 2017-11	(46)
Change in fair value of warrants	(259)
Reclassification to equity resulting from warrant exchange agreement	(1,364)
Warrant Liability, ending balance	$ 0

Share Capital Public Offering (Details) $ / shares in Units, $ in Millions	Apr. 17, 2018 USD ($) $ / shares shares
Common Stock [Member]
Sale of Stock [Line Items]
Stock Issued During Period, Shares, New Issues	412,500
Number of Securities Called by Warrants	123,750
Shares Issued, Price Per Share \| $ / shares	$ 5.60
Proceeds from Issuance of Common Stock \| $	$ 2.3
Over-Allotment Option [Member]
Sale of Stock [Line Items]
Number of Securities Called by Warrants	14,063

Share Capital (Details) $ in Millions	May 10, 2018 USD ($) shares
Equity [Abstract]
Payment of Obligations, Stock Issued During Period, Shares \| shares	80,100
Legal Fees \| $	$ 0.3

Share Capital Reverse Stock Split (Details)	Nov. 05, 2018
Subsequent Event [Member]
Subsequent Event [Line Items]
Stockholders' Equity, Reverse Stock Split	share consolidation (also known as a reverse stock split) of the Company’s issued and outstanding common shares at a ratio of one-for-eight

Share Capital Warrants Outstanding (Details)	9 Months Ended
Share Capital Warrants Outstanding (Details)	Sep. 30, 2018 $ / shares shares
Related Party [Member]
Class of Warrant or Right [Line Items]
Warrant, Outstanding	42,500
May 31, 2020 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	5 years
Exercise Price of Warrants \| $ / shares	$ 800.00
Warrant, Outstanding	4,200
Warrant expiration date	May 31, 2020
October 14, 2020 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	5 years
Exercise Price of Warrants \| $ / shares	$ 466.00
Warrant, Outstanding	2,010
Warrant expiration date	Oct. 14, 2020
December 21, 2018 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	3 years
Exercise Price of Warrants \| $ / shares	$ 308.00
Warrant, Outstanding	2,500
Warrant expiration date	Dec. 21, 2018
December 15, 2020 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	5 years
Exercise Price of Warrants \| $ / shares	$ 500.00
Warrant, Outstanding	5,138
Warrant expiration date	Dec. 15, 2020
December 4, 2020 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	5 years
Exercise Price of Warrants \| $ / shares	$ 216.00
Warrant, Outstanding	7,500
Warrant expiration date	Dec. 04, 2020
November 30, 2018 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	3 years
Exercise Price of Warrants \| $ / shares	$ 412.00
Warrant, Outstanding	442
Warrant expiration date	Nov. 30, 2018
February 26, 2019 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	3 years
Exercise Price of Warrants \| $ / shares	$ 324.00
Warrant, Outstanding	2,500
Warrant expiration date	Feb. 26, 2019
March 4, 2021 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	5 years
Exercise Price of Warrants \| $ / shares	$ 500.00
Warrant, Outstanding	150
Warrant expiration date	Mar. 04, 2021
November 8, 2019 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	3 years
Exercise Price of Warrants \| $ / shares	$ 400.00
Warrant, Outstanding	125
Warrant expiration date	Nov. 08, 2019
December 30, 2022 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	6 years
Exercise Price of Warrants \| $ / shares	$ 2.00
Warrant, Outstanding	4,310
Warrant expiration date	Dec. 30, 2022
April 18, 2023 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	6 years
Exercise Price of Warrants \| $ / shares	$ 2.00
Warrant, Outstanding	1,995
Warrant expiration date	Apr. 18, 2023
June 1, 2023 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	6 years
Exercise Price of Warrants \| $ / shares	$ 2.00
Warrant, Outstanding	4,405
Warrant expiration date	Jun. 01, 2023
August 11, 2022 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	5 years
Exercise Price of Warrants \| $ / shares	$ 42.00
Warrant, Outstanding	37,500
Warrant expiration date	Aug. 11, 2022
August 16, 2022 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	5 years
Exercise Price of Warrants \| $ / shares	$ 42.00
Warrant, Outstanding	11,876
Warrant expiration date	Aug. 16, 2022
August 22, 2022 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	5 years
Exercise Price of Warrants \| $ / shares	$ 42.00
Warrant, Outstanding	25,625
Warrant expiration date	Aug. 22, 2022
April 17, 2023 [Member]
Class of Warrant or Right [Line Items]
Warrant Term	5 years
Exercise Price of Warrants \| $ / shares	$ 5.60
Warrant, Outstanding	137,813
Warrant expiration date	Apr. 17, 2023
Warrant [Member]
Class of Warrant or Right [Line Items]
Warrant, Outstanding	248,089

Share Capital Related Party Share Capital Transactions (Details) - USD ($) $ / shares in Units, $ in Millions	Aug. 11, 2017	Mar. 24, 2017	Mar. 31, 2018
March 24, 2022 [Member]
Sale of Stock [Line Items]
Exercise Price of Warrants	$ 60	$ 60	$ 40.00
Warrants Issued During Period	54,205
March 24, 2022 [Member] \| Related party
Sale of Stock [Line Items]
Warrants Issued During Period	11,364
Private Placement [Member]
Sale of Stock [Line Items]
Stock Issued During Period, Shares	75,000	102,273
Number of Securities Called by Warrants	75,000	108,409
Proceeds from Issuance of Common Stock	$ 3.0	$ 4.5
Shares Issued, Price Per Share	$ 40.00
Exercise Price of Warrants	$ 42.00
Private Placement [Member] \| Related party
Sale of Stock [Line Items]
Stock Issued During Period, Shares, Related Party	49,375	22,727
Number of Securities Called by Warrants	49,375	22,727

Share Capital Related Party Warrant Exchange (Details) - shares		12 Months Ended
	Mar. 16, 2018	Dec. 31, 2017
Class of Warrant or Right [Line Items]
Shares Issued for Warrant Exchange		202,240
Related party
Class of Warrant or Right [Line Items]
Shares Issued for Warrant Exchange		164,423
March 24, 2022 [Member]
Class of Warrant or Right [Line Items]
Shares Issued for Warrant Exchange	178,875
March 24, 2022 [Member] \| Related party
Class of Warrant or Right [Line Items]
Shares Issued for Warrant Exchange	37,500
Assumption of Warrants	34,091

Share Capital Dec 2016 to March 2017 Placement (Details) - December 2016 to March 2017 [Member] - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 16, 2017	Mar. 29, 2017
Sale of Stock [Line Items]
Stock Issued During Period, Shares	90,700
Shares Issued, Price Per Share		$ 60.00
Proceeds from Issuance of Common Stock	$ 5.4
Number of Securities Called by Warrants		181,400
Related party
Sale of Stock [Line Items]
Stock Issued During Period, Shares, Related Party	71,792

Equity Incentive Plan Textuals (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity Instruments Other than Options, Grants in Period	50	67,694
RSUs Outside of 2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity Instruments Other than Options, Grants in Period		25,779
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, Grants in Period	0	10,825
Restricted Stock Units and Stock Options Vesting Period	3 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity Instruments Other than Options, Grants in Period	100,197	1,842
RSAs, Share-based Third Party Liabilities Paid	$ 1.0	$ 0.1

Equity Incentive Plan Weighted Average Assumptions (Details)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	120.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.10%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	4 years 8 months

Equity Incentive Plan Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 255	$ 1,981	$ 1,520	$ 5,647
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	4	104	46	271
Sales and Marketing Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	23	551	301	1,574
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	37	370	191	1,080
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 191	$ 956	$ 982	$ 2,722

Equity Incentive Plan (Details) $ in Millions	9 Months Ended
Equity Incentive Plan (Details) $ in Millions	Sep. 30, 2018 USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 1.4
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 6 months

Net Loss Per Share Net Loss Per Share (Details) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	248	274
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	73	55
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	20	24
Convertible Notes Payable [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	41
Convertible notes interest [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	83

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Related Party Transactions [Abstract]
Related Party Transaction, Expenses from Transactions with Related Party	$ 0.2	$ 0.0	$ 0.7	$ 0.0

Commitments and Contingencies (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Dec. 31, 2014
Loss Contingencies [Line Items]
Letters of Credit Outstanding, Amount		$ 0.0
Loss Contingency, Damages Sought, Value	$ 6.0
UD Dissolution Liquidating Trust [Member]
Loss Contingencies [Line Items]
Convertible Debt			$ 19.5

Commitments and Contingencies Warranty and Extended Warranty (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Deferred Costs, Service Revenue	$ 600	$ 800
Product Warranty Liability [Line Items]
Product Warranty Accrual, Current	616
Deferred revenue extended warranties, current	3,122
Product Warranty Accrual, Noncurrent	382
Deferred revenue extended warranties, noncurrent	1,636
Warranty [Member]
Product Warranty Liability [Line Items]
Liability, period start	996
Standard and Extended Product Warranty Accrual, Decrease for Payments	(331)
Standard and Extended Product Warranty Accrual, Increase for Warranties Issued	322
Standard and Extended Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties	11
Liability, period end	998
Deferred revenue [Member]
Product Warranty Liability [Line Items]
Deferred Revenue, period start	5,672
Standard and Extended Product Warranty Accrual, Decrease for Payments	(4,352)
Standard and Extended Product Warranty Accrual, Increase for Warranties Issued	3,438
Standard and Extended Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties	0
Deferred Revenue, period end	$ 4,758

Segmented Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segmented Information (Details) $ in Thousands	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments			1
Revenues	$ 15,891	$ 21,679	$ 53,800	$ 62,855
Disk Systems [Member]
Segment Reporting Information [Line Items]
Revenues	10,113	14,144	35,947	40,601
Tape Automation Systems [Member]
Segment Reporting Information [Line Items]
Revenues	1,680	2,491	5,765	7,295
Tape drives and media [Member]
Segment Reporting Information [Line Items]
Revenues	2,062	2,993	5,851	8,272
Service [Member]
Segment Reporting Information [Line Items]
Revenues	$ 2,036	$ 2,051	$ 6,237	$ 6,687