Our eDiscovery solutions include technology and services that address the full
spectrum of eDiscovery needs for corporate counsel and law firms. Our eDiscovery
platform, Daegis Edge, delivers a comprehensive solution that helps clients
lower costs in all phases of the eDiscovery lifecycle from information
management through search and analysis to review and production. Our services
include managed document review, project management, search analytics,
consulting, and hosting of data.
Our database, archive, and migration business includes application development,
data management and application modernization. Our tools and database software
help companies to maximize value and reduce cost in the development, deployment,
management and retention of business applications and data. Our application
development and data management software products include Team Developer,
SQLBase, Unify NXJ, DataServer, VISION and ACCELL. Our application modernization
solutions include Composer Notes, Composer Sabertooth, Composer CipherSoft and
Composer Mainframe. Our enterprise archiving software enables our customers to
preserve, manage, and dispose of their electronically stored information ("ESI")
for regulatory compliance and information governance.
Critical Accounting Policies and Estimates
Our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles ("GAAP") as set forth in the
Financial Accounting Standards Board'sAccounting Standards Codification (Codification) and consider the various staff accounting bulletins and other applicable guidance issued by the SEC. GAAP, as set forth within the Codification, requires us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent there are differences between these estimates, judgments or assumptions and actual results, our financial statements will be affected. The accounting policies that reflect our more significant estimates, judgments and assumptions and which we believe are the most critical to aid in fully understanding and evaluating our reported financial results include the following: º Revenue Recognition º Goodwill and Intangible Assets º Deferred Tax Asset Valuation Allowance º Accounts Receivable and Allowances for Doubtful Accounts º Accounting for Stock-based Compensation º Fair Value of Common Stock Warrant Liability In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management's judgment in its application. There are also areas in which management's judgment in selecting among available alternatives would not produce a materially different result. Our senior management has reviewed these critical accounting policies and related disclosures with the Audit Committee of the Board of Directors. During the first quarter of fiscal 2014, there were no significant changes to our critical accounting policies and estimates. Management's Discussion and Analysis of Financial Condition and Results of Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for our fiscal year ended April 30, 2013provides a more complete discussion of our critical accounting policies and estimates.