10-Q

United States Securities and Exchange Commission

Washington, DC 20549

FORM 10-Q

[x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

OR

For the quarterly period ended September 30, 2014

[  ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from_________to_________.

Commission File Number 001-09014

ChyronHego Corporation

(Exact name of registrant as specified in its charter)

New York	11-2117385
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
5 Hub Drive, Melville, New York	11747
(Address of principal executive offices)	(Zip Code)
(631) 845-2000
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes [x]    No [  ]

Indicate by checkmark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes [x]    No [  ]

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

Large accelerated filer [  ]	Accelerated filer [  ]
Non-accelerated filer [  ]	Smaller reporting company [x]
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [  ]    No [x]

The number of shares outstanding of the issuer's common stock, par value $.01 per share, on November 7, 2014 was 40,252,967.

CHYRONHEGO CORPORATION

INDEX

		Page
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets as of September 30, 2014 (unaudited) and December 31, 2013	3
	Consolidated Statements of Operations for the Three and Nine Months ended September 30, 2014 and 2013 (unaudited)	4
	Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months ended September 30, 2014 and 2013 (unaudited)	5
	Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2014 and 2013 (unaudited)	6
	Notes to Consolidated Financial Statements (unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults Upon Senior Securities	22
Item 4.	Mine Safety Disclosures	22
Item 5.	Other Information	22
Item 6.	Exhibits	23

2

PART I     FINANCIAL INFORMATION

Item 1.      Financial Statements

CHYRONHEGO CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

	Unaudited
	September 30,			December 31,
	2014			2013
Assets:
Current assets:
Cash and cash equivalents	$	5,874		$	5,266
Accounts receivable, net		12,227			7,781
Inventories, net		2,216			2,816
Prepaid expenses and other current assets		2,683			2,525
Total current assets		23,000			18,388
Property and equipment, net		3,906			4,145
Intangible assets, net		11,390			8,968
Goodwill		23,799			18,948
Deferred tax asset		42			56
Other assets		132			147
TOTAL ASSETS	$	62,269		$	50,652
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses	$	8,091		$	9,240
Deferred revenue		5,398			4,660
Short-term debt		1,113			1,532
Due to related parties		587			716
Current portion of pension liability		327			518
Deferred tax liability		301			271
Capital lease obligations		137			215
Total current liabilities		15,954			17,152
Contingent consideration		11,506			12,260
Pension liability		2,431			2,197
Deferred revenue		764			923
Long-term debt		733			772
Deferred tax liability		1,806			1,195
Other liabilities		552			686
Total liabilities		33,746			35,185
Commitments and contingencies
Shareholders' equity:
Preferred stock, par value $1.00, without designation
Authorized - 1,000,000 shares, Issued -none
Common stock, par value $.01
Authorized - 150,000,000 shares
Issued and outstanding - 36,901,406 at September 30, 2014 and 30,788,251 at December 31, 2013		369			308
Additional paid-in capital		119,156			103,642
Accumulated deficit		(91,098	)		(88,243	)
Accumulated other comprehensive loss		(924	)		(421	)
Total ChyronHego Corporation shareholders' equity		27,503			15,286
Non-controlling interests		1,020			181
Total shareholders' equity		28,523			15,467
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	62,269		$	50,652

See Notes to Consolidated Financial Statements (unaudited)

3

CHYRONHEGO CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(In thousands, except per share amounts)

(Unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2014			2013			2014			2013
Product revenues	$	7,105		$	7,697		$	20,540		$	20,415
Service revenues		8,906			6,262			22,796			12,277
Total revenues		16,011			13,959			43,336			32,692
Cost of sales		5,912			5,210			16,425			10,890
Gross profit		10,099			8,749			26,911			21,802
Operating expenses:
Selling, general and administrative		6,441			6,487			18,691			18,074
Research and development		2,247			2,399			6,553			6,524
Change in fair value of contingent consideration		3,776			878			4,176			933
Total operating expenses		12,464			9,764			29,420			25,531
Operating loss		(2,365	)		(1,015	)		(2,509	)		(3,729	)
Interest expense, net		(31	)		(94	)		(275	)		(203	)
Other income (loss), net		(22	)		30			(23	)		(37	)
Loss before taxes		(2,418	)		(1,079	)		(2,807	)		(3,969	)
Income tax benefit (expense), net		(137	)		32			(12	)		(72	)
Net loss		(2,555	)		(1,047	)		(2,819	)		(4,041	)
Less: Net income attributable to Non-controlling interests		5			30			36			38
Net loss attributable to ChyronHego Shareholders	$	(2,560	)	$	(1,077	)	$	(2,855	)	$	(4,079	)
Net loss per share attributable to ChyronHego shareholders - basic	$	(0.07	)	$	(0.04	)	$	(0.08	)	$	(0.17	)
Net loss per share attributable to ChyronHego shareholders - diluted	$	(0.07	)	$	(0.04	)	$	(0.08	)	$	(0.17	)
Weighted average shares outstanding:
Basic		36,754			30,236			34,341			23,576
Diluted		36,754			30,236			34,341			23,576

See Notes to Consolidated Financial Statements (unaudited)

4

CHYRONHEGO CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2014			2013			2014			2013
Net loss	$	(2,555	)	$	(1,047	)	$	(2,819	)	$	(4,041	)
Other comprehensive income (loss):
Cumulative translation adjustment		(475	)		92			(503	)		162
Comprehensive loss		(3,030	)		(955	)		(3,322	)		(3,879	)
Less: Comprehensive income attributable to Non-controlling interests		5			30			36			38
Comprehensive loss attributable to ChyronHego Corporation	$	(3,035	)	$	(985	)	$	(3,358	)	$	(3,917	)

See Notes to Consolidated Financial Statements (unaudited)

5

CHYRONHEGO CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(In thousands)

(Unaudited)

	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(2,819	)	$	(4,041	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		2,178			1,755
Deferred income taxes		(317	)		27
Inventory provisions		125			50
Share-based payment arrangements		982			2,641
Shares issued for 401(k) match		162			179
Change in fair value of contingent consideration		4,176			933
Other		131			427
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(4,349	)		(1,649	)
Inventories		626			(784	)
Prepaid expenses and other assets		162			(472	)
Accounts payable and accrued expenses		(174	)		1,828
Deferred revenue		348			432
Other liabilities		(105	)		410
Net cash provided by operating activities		1,126			1,736
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of property and equipment, net		(1,349	)		(1,648	)
Acquisition of business, net of cash acquired		866			14
Net cash used in investing activities		(483	)		(1,634	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments on revolving credit facilities, net		1			315
Repayments on debt		(357	)		(399	)
Proceeds from borrowings		55			280
Payments on capital lease obligations		(195	)		(134	)
Proceeds from exercise of stock options		499			6
Net cash provided by financing activities		3			68
Effect of exchange rates on cash and cash equivalents		(38	)		48
Change in cash and cash equivalents		608			218
Cash and cash equivalents at beginning of period		5,266			2,483
Cash and cash equivalents at end of period	$	5,874		$	2,701
SUPPLEMENTAL CASH FLOW INFORMATION:
Common stock and warrants issued for acquisitions	$	6,586		$	16,591
Contingent consideration for acquisition	$	1,557		$	7,500
Common stock issued in settlement of contingent consideration	$	6,488
Common stock issued in settlement of awards under the
Management Incentive Compensation Plan and Severance Agreements	$	846
Debt incurred for acquisition				$	1,044

See Notes to Consolidated Financial Statements (unaudited)

6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1.            BASIS OF PRESENTATION

Nature of Business

On May 22, 2013 Chyron Corporation ("Chyron") acquired the outstanding stock of Hego Aktiebolag ("Hego" or "Hego AB"), and changed its name to ChyronHego Corporation (the "Company" or "ChyronHego"). Hego is a global graphics services company based in Stockholm, Sweden that develops real-time graphics products for the broadcast and sports industries. The companies combined in a cash and stock-for-stock transaction and the Company has continued to trade on the NASDAQ under the symbol "CHYR." The combination of these two companies, which is referred to in these consolidated financial statements as the "Business Combination," forms a leading global provider of broadcast graphics creation, playout and real-time data visualization.

General

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany amounts have been eliminated. The results of operations include the operating results of Hego since the completion of the Business Combination on May 22, 2013. See Note 8 of these consolidated financial statements.

In the opinion of management of the Company, the unaudited consolidated interim financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position of the Company as of September 30, 2014 and the consolidated results of its operations, its comprehensive income (loss) and its cash flows for the periods ended September 30, 2014 and 2013. The results of operations for such interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2014. In addition, management is required to make estimates and assumptions that affect the amounts reported and related disclosures. Estimates made by management include inventory valuations, stock and bonus compensation, allowances for doubtful accounts, income taxes, pension assumptions, allocations of purchase price, contingent consideration, valuation of intangible assets and reserves for warranty and incurred but not reported health insurance claims. Estimates, by their nature, are based on judgment and available information. Also, during interim periods, certain costs and expenses are allocated among periods based on an estimate of time expired, benefit received, or other activity associated with the periods. Accordingly, actual results could differ from those estimates. The Company has not segregated its cost of sales between costs of products and costs of services as it is not practicable to segregate such costs. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission. For further information, refer to the audited consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. The December 31, 2013 figures included herein were derived from such audited consolidated financial statements.

Earnings (Loss) Per Share

Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potential dilutive shares of common stock been issued. The dilutive effect of stock options and restricted stock units are reflected in diluted net income (loss) per share by applying the treasury stock method.

7

The Company recorded net losses for the three and nine months ended September 30, 2014 and 2013. Potential common shares are anti-dilutive in periods in which the Company records a net loss because they would reduce the respective period's net loss per share. Anti-dilutive potential common shares are excluded from the calculation of diluted earnings per share.      

Shares used to calculate net income (loss) per share are as follows (in thousands): 

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2014		2013		2014		2013
Basic weighted average shares outstanding		36,754		30,236		34,341		23,576
Effect of dilutive stock options		-		-		-		-
Effect of dilutive restricted stock units		-		-		-		-
Diluted weighted average shares outstanding		36,754		30,236		34,341		23,576
Weighted average shares which are not included in the calculation of diluted earnings (loss) per share because their impact is anti-dilutive:
Stock options		1,679		2,409		2,136		2,918
Restricted stock units		-		-		-		40
		1,679		2,409		2,136		2,958

2.            LONG-TERM INCENTIVE PLANS

Pursuant to the 2008 Long-term Incentive Plan, as amended (the "Plan"), the Company may grant stock options (non-qualified or incentive), stock appreciation rights, restricted stock, restricted stock units and other share-based awards to employees, directors and other persons who serve the Company. The Plan is overseen by the Compensation Committee of the Board of Directors, which approves the timing and circumstances under which share-based awards may be granted. At September 30, 2014 there were 3.1 million shares available to be granted under the Plan. The Company issues new shares to satisfy the exercise or release of share-based awards. Under the provision of FASB Accounting Standards Codification ("ASC") Topic 718, Stock Compensation , all share-based payments are required to be recognized in the statement of operations based on their fair values at the date of grant.

The fair value of each option award is estimated using a Black-Scholes option valuation model. Expected volatility is based on the historical volatility of the price of the Company's stock. The risk-free interest rate is based on U.S. Treasury issues with a term equal to the expected life of the option. The Company uses historical data to estimate expected dividend yield, expected life and forfeiture rates. Options generally have a life of 10 years and have either time-based or performance-based vesting features. Time-based awards generally vest over a three year period, while the performance-based awards vest upon the achievement of specific performance targets. There were no options granted during the three months ended September 30, 2014 and 2013. The fair values of the options granted during the nine months ended September 30, 2014 and 2013 were estimated based on the following weighted average assumptions:

	Nine Months
	Ended September 30,
	2014			2013
Expected volatility		78.78	%		76.23	%
Risk-free interest rate		1.91	%		1.06	%
Expected dividend yield		0.00	%		0.00	%
Expected life (in years)		6.0			6.0
Estimated fair value per option granted	$	1.70		$	0.87

8

The following table presents a summary of the Company's stock option activity for the nine months ended September 30, 2014:

	Number of Options
Outstanding at January 1, 2014		5,994,788
Granted		866,250
Exercised		(665,597	)
Forfeited and cancelled		(73,438	)
Outstanding at September 30, 2014		6,122,003

The Company also grants restricted stock units, or RSUs, each of which entitles the holder to a share of Company common stock. The fair value of an RSU is equal to the market value of a share of common stock on the date of grant. The following table presents a summary of the Company's RSU activity for the nine months ended September 30, 2014:

	Shares
Non-vested at January 1, 2014
Granted		139,839
Forfeited and cancelled		(27,956	)
Vested		(14,036	)
Non-vested at September 30, 2014		97,847

The Company amortizes share-based compensation expense over the vesting period on a straight line basis. The impact on the Company's results of operations of recording share-based compensation expense is as follows (in thousands):

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2014		2013		2014		2013
Cost of sales	$	31	$	2	$	80	$	30
Research and development		128		35		331		189
Selling, general and administrative		221		220		571		2,422
	$	380	$	257	$	982	$	2,641

3.             INVENTORIES

Inventories, net are comprised of the following (in thousands):

	September 30,		December 31,
	2014		2013
Finished goods	$	249	$	539
Work-in-progress		266		310
Raw material		1,701		1,967
	$	2,216	$	2,816

9

4.            LONG-TERM DEBT

Long-term debt consists of the following (in thousands):

	September 30,		December 31,
	2014		2013
Revolving credit facilities - Europe	$	829	$	933
Note payable - Europe		867		921
Terms loans - Europe		32		355
Other		118		95
		1,846		2,304
Less: portion due within one year		1,113		1,532
Other	$	733	$	772

Revolving credit facilities - Europe

We have revolving credit facilities associated with our European operations that total $1.2 million of which $0.8 million is outstanding at September 30, 2014. The revolving credit facilities have expiration dates of December 31, 2014 and automatically renew for twelve month periods, unless notified by the lender ninety days prior to expiration. The interest rate on these revolving credit facilities is 5.95%. The revolving credit agreements are collateralized by the assets of certain European subsidiaries of the Company.

Note payable - Europe

In connection with the acquisition of Granvideo AB in 2013, the Company issued a note to the previous shareholder of Granvideo in the principal amount of $1.2 million with a maturity date of December 31, 2017. The note does not bear interest and accordingly was recorded at an original discounted amount of $1.04 million. The Company made principal payments of $0.06 million on September 1, 2013 and $0.1 million on November 15, 2013, and is required to make four equal annual payments of $0.26 million on December 31 of each year from 2014 to 2017. The principal balance at September 30, 2014 was $0.9 million.

Term loans - Europe

In addition, we have two term loans with European lenders that total $0.03 million. These term loans require principal payments totaling $8 thousand per month and bear interest at rates that range between 7.45% and 7.75% and will mature in 2014 and 2015.

Revolving line of credit - US

In November 2013, the Company entered into a two-year $4.0 million revolving line of credit (the "Revolver") with Silicon Valley Bank ("SVB"). Borrowings on the Revolver will be based on 80% of eligible accounts receivable. At September 30, 2014, available borrowings under the Revolver were $4.0 million but no borrowings were outstanding. The Company is also required to maintain an adjusted quick ratio ("AQR") of at least 1.25 to 1.0, measured at each calendar month-end. Additionally, if the Company's AQR falls below 1.5x at any month-end, then any borrowings will be repaid by SVB applying collections to reduce the revolving loan balance on a daily basis, until such time as the month-end AQR is again 1.5x or greater. If the AQR at month-end is 1.5x or greater, the Company will maintain a static loan balance and all collections will be deposited into the Company's operating account.

The Revolver will bear interest at a floating annual rate equal to SVB's prime rate ("Prime") +1.25%. If the Company's AQR falls below 1.5x at any month-end, the interest rate will be Prime +1.75%. In connection with the Revolver, the Company was required to pay the outstanding balance on its previously outstanding term loan which was $0.4 million on the closing date. The original term loan was being repaid over 30 months and was subject to interest at Prime + 2.25%.

10

As is usual and customary in such lending agreements, the Revolver also contains certain non-financial requirements, such as required periodic reporting to the bank and various representations and warranties. The Revolver also restricts the Company's ability to pay dividends without the bank's consent.

The Revolver is collateralized by the assets of the U.S. subsidiaries of the Company, except for (i) its intellectual property rights which are subject to a negative pledge arrangement with the bank, and (ii) any equipment whose purchase is financed by any other lender or lessor, solely to the extent the security agreement with such lender or lessor prohibits junior liens on such equipment, and only until the lien held by such lender or lessor is terminated or released with respect to such equipment.

5.            BENEFIT PLANS

The net periodic benefit cost relating to the Company's U.S. Pension Plan is as follows (in thousands):

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2014			2013			2014			2013
Service cost	$	82		$	140		$	246		$	421
Interest cost		101			94			303			282
Expected return on plan assets		(107	)		(99	)		(321	)		(297	)
Amortization of net loss		14			62			42			185
Amortization of prior service cost		(2	)		(2	)		(6	)		(6	)
	$	88		$	195		$	264		$	585

The Company's policy is to fund the minimum contributions required under the Employee Retirement Income Security Act ("ERISA") and, subject to cash flow levels, the Company may choose to make a discretionary contribution to its pension plan to reduce the unfunded liability. In the third quarter of 2014, the Company made a required contribution of $0.1 million. Based on current assumptions, the Company expects to make required contributions of $0.3 million in the next twelve months.

The Company has adopted a 401(k) Plan exclusively for the benefit of participants and their beneficiaries. All U.S. employees of the Company are eligible to participate in the 401(k) Plan. The Company may make discretionary matching contributions of the compensation contributed by the participant. The Company has the option of making the matching contributions in cash or through shares of Company common stock. During the nine months ended September 30, 2014 and 2013, the Company issued 70 thousand and 174 thousand shares of common stock in connection with the Company match for the 401(k) Plan in lieu of an aggregate cash match of $162 thousand and $179 thousand, respectively.

Substantially all employees of the Company's foreign subsidiaries receive retirement benefits, at least to the extent required by law, through funds that are governed by local statutory requirements. Contributions are typically based on specified percentages of the employees' salaries.

11

6.             PRODUCT WARRANTY

The Company provides product warranties for its various products, typically for one year. Liabilities for the estimated future costs of repair or replacement are established and charged to cost of sales at the time the sale is recognized. The Company established its reserve based on historical data, taking into consideration specific product information. The following table sets forth the changes in the warranty reserve (in thousands):

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2014			2013			2014			2013
Balance at beginning of period	$	126		$	65		$	118		$	50
Provisions		-			55			194			125
Warranty services provided, net		(87	)		(25	)		(273	)		(80	)
	$	39		$	95		$	39		$	95

7.             INCOME TAXES

The components of deferred income taxes are as follows (in thousands):

	September 30,			December 31,
	2014			2013
Deferred tax assets:
Net operating loss carryforwards	$	10,895		$	12,074
Inventory		1,903			1,856
Other liabilities		3,209			3,051
Fixed assets		2,385			2,069
Other temporary differences		942			751
		19,334			19,801
Less: valuation allowance		(19,292	)		(19,745	)
Total deferred tax assets		42			56
Deferred tax liability:
Intangibles		(2,172	)		(1,453	)
Other temporary differences		65			(13	)
Net deferred tax liability	$	(2,065	)	$	(1,410	)
As reported:
Non-current deferred tax assets	$	42		$	56
Current deferred tax liability	$	(301	)	$	(271	)
Non-current deferred tax liability	$	(1,806	)	$	(1,195	)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. At September 30, 2014, the gross deferred tax balance was $19.3 million and includes the $11 million tax effect of $30 million in U.S. Federal net operating loss carryforwards ("NOLs") expiring between 2019 and 2032. The Company has not recorded a deferred tax asset of approximately $1.3 million related to the NOLs resulting from the exercise of disqualifying stock options and restricted stock units which will be accounted for as a credit to additional paid in capital when realized as a reduction to income taxes payable.

Sections 382 and 383 of the Internal Revenue Code, and similar state regulations, contain provisions that may limit the net operating loss and tax credit carryforwards available to be used to offset income in any given year upon the occurrence of certain events, including changes in the ownership interests of significant stockholders. In the event of a cumulative change in ownership in excess of 50% over a three-year period, the amount of the net operating loss carryforwards that the Company may utilize in any one year may be limited.

12

There are no undistributed net earnings for the Company's foreign subsidiaries, and accordingly no related deferred taxes.

Accounting standards require that the Company continually assess the likelihood that its deferred taxes will be realizable. All available evidence, both positive and negative, must be considered in determining whether it is more likely than not that the deferred tax assets will be realized. In making such assessments, significant weight is given to evidence that can be objectively verified. A company's current or previous losses are given more weight than its future outlook. As of September 30, 2014 and December 31, 2013, using that standard, the Company concluded that a full valuation allowance was required for its U.S. and state deferred tax assets. As of September 30, 2014 the unreserved balance of $42 thousand relates to certain foreign deferred tax assets. The Company will continue to assess the likelihood that its deferred tax assets will be realizable, and its valuation allowance will be adjusted accordingly, which could materially impact its financial position and results of operations in future periods.

The components of the provision for income tax benefit (expense), net are as follows for the periods ended (in thousands):

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2014			2013			2014			2013
Current:	$	(178	)	$	3		$	(329	)	$	(45	)
State and Foreign
Deferred:
Federal		(12	)		(16	)		(35	)		(39	)
Foreign		53			45			352			12
		41			29			317			(27	)
Income tax (expense) benefit, net	$	(137	)	$	32		$	(12	)	$	(72	)

The difference between the Company's effective income tax rate and the federal statutory rate is primarily due to the mark to market adjustment for our contingent liability relating to the Business Combination that will not be deductible for tax purposes, the amount of expense associated with the Company's share-based payment arrangements which is also not deductible and international tax rate differences.

8.            BUSINESS COMBINATION AND OTHER ACQUISITIONS

On May 22, 2013, Chyron and Hego completed the Business Combination whereby a wholly-owned subsidiary of Chyron acquired all of the issued and outstanding shares of Hego for a total purchase price of $24.6 million. The Company and Hego entered into the Business Combination to create a market leading company in the fields of TV graphics, data visualization and production services for 'Live' and on line news and sports production.

The total purchase price of $24.6 million is comprised of 12.2 million shares of the Company's common stock valued at $16.6 million, contingent consideration of shares of the Company's common stock (the "Earn-Out Shares") valued at an estimated $7.5 million and $0.5 million in cash and other consideration. The $7.5 million represents the value of the Earn-Out Shares based on a probability-based model measuring the likelihood of achieving certain revenue milestones as detailed below, and has been recorded as a liability in the balance sheet. In connection with FASB ASC 805, Business Combinations, the fair value of the contingent consideration was established at the date of the Business Combination and included in the total purchase price at fair value. The contingent consideration is then adjusted to the then current fair value as an increase or decrease to earnings in each reporting period. This adjustment has had a material impact on the Company's financial position and results of operations and will continue to impact the Company until all contingencies have been settled. In the three and nine months ended September 30, 2014 charges of $3.8 million and $4.2 million, respectively, have been recorded in order to adjust the contingent consideration to $9.9 million, its current fair value at September 30, 2014, in the level 3 category. Based on the revenue milestones, additional shares are likely to be issued as follows:

Revenue milestones	Additional shares
$15.5 million in 2013		2,772,599
$16.0 million in 2014		1,584,339
$16.5 million in 2015		1,742,775
Total		6,099,713
Or, alternatively, if $33.0 million for 2013 and 2014 combined		6,099,713

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At December 31, 2013, the 2013 revenue milestone was achieved and 2,772,599 additional shares were issued in March 2014 at a stock price of $2.34 per share. At September 30, 2014, the 2013 and 2014 combined revenue milestone of $33.0 million was achieved and 3,327,114 additional shares were issued in November 2014 at a stock price of $2.88.

On April 30, 2014 the Company completed its acquisition of Norway-based Zxy Sport Tracking AS (“Zxy”). Pursuant to the terms of the Share Purchase Agreement with Zxy (the “SPA”), the Company acquired 67% of the issued and outstanding shares of Zxy for a total purchase price of $5.5 million. Pursuant to the terms of the SPA, the Company issued 1,374,545 shares of ChyronHego Common Stock (“Common Stock”) at a value of $3.3 million and issued 549,818 warrants at a value of $0.7 million, based on a Black-Scholes valuation model. The warrants give the holders the right to purchase one share of Common Stock at a price of $2.75 for a three year period from closing.

In addition, stockholders of Zxy will be entitled to an earn-out, payable in cash, in an amount equal to 15% of the net revenues from all sales of Zxy products and services from the closing date through December 31, 2018, up to $3.0 million. If and when $3.0 million in such revenues has been achieved, the earn-out rate shall be reduced to 7.5% for the remainder of the earn-out period. The stockholders are entitled to a guaranteed minimum earn-out amount of $110,000 in each of 2014, 2015 and 2016. The earn-out was valued at $1.5 million based on a discounted model measuring the likelihood of achieving certain revenue levels.

The following table summarizes the estimated allocation of the purchase price which is preliminary and subject to adjustment following the completion of the valuation process (in thousands):

Net fair value of assets acquired	$	628
Intangible assets		2,600
Goodwill		3,783
		7,011
Deferred tax liability		(702	)
Amounts attributable to minority shareholders		(836	)
	$	5,473

The goodwill resulting from the Zxy acquisition reflects a transponder-based sports tracking technology that the Company believes will strengthen its position in the sports analysis market across both the sports broadcast and professional sports markets. The Company believes that this preliminary estimate of goodwill will not be deductible for tax purposes.

14

The components and estimated useful lives of intangible assets acquired are stated below. Amortization is provided on a straight line method over the following estimated useful lives (dollar amounts in thousands):

Definite-lived intangibles:			Estimated Useful Life (in years)
Proprietary technology	$	2,300	15
Tradename		300	15
	$	2,600

On July 1, 2014, the Company completed its acquisition of Norway based Metaphor AS ("Metaphor") and its wholly owned subsidiaries WeatherOne AS and WeatherOne Limited (collectively referred to as "WeatherOne"). The acquisition of Metaphor and WeatherOne is referred to as the WeatherOne Transaction.

In accordance with the share purchase agreement for the acquisition of Metaphor and WeatherOne, the Company issued 1,126,228 shares of Common Stock at a value of $2.4 million, 337,870 warrants at a value of $0.3 million, based on a Black-Scholes valuation model, and $0.6 million in cash. The warrants give the holders the right to purchase one share of Common Stock at a price of $2.78 per share for a three-year period.

The following table summarizes the estimated allocation of the purchase price which is preliminary and subject to adjustment following the completion of the valuation process (in thousands):

Net fair value of assets acquired	$	1,245
Intangible assets		900
Goodwill		1,440
		3,585
Deferred tax liability		(244	)
	$	3,341

The goodwill resulting from the WeatherOne Transaction reflects a weather forecast solution for broadcast and digital media that the Company believes will strengthen its product offering. The Company believes that this preliminary estimate of goodwill will not be deductible for tax purposes.

The components and estimated useful lives of intangible assets acquired are stated below. Amortization is provided on a straight line method over the following estimated useful lives (dollar amounts in thousands):

Definite-lived intangibles:			Estimated Useful Life (in years)
Proprietary technology	$	400	15
Supplier relationships		400	15
Tradename		100	15
	$	900

Below are the unaudited proforma results of operations for the nine months ended September 30, 2014 and 2013 as if the Company had acquired Zxy and WeatherOne on January 1, 2013. Such proforma results are not necessarily indicative of the annual results of operations that would have been achieved if the acquisitions occurred on the date assumed, nor are they necessarily indicative of future consolidated results of operations (in thousands except per share data):

	2014			2013
Net revenues	$	44,495		$	34,106
Net loss		(2,892	)		(4,430	)
Net loss per share - basic and diluted	$	(0.08	)	$	(0.17	)

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9.            OTHER COMPREHENSIVE INCOME

Components and activity related to accumulated other comprehensive income (loss) is as follows (in thousands):

	Foreign						Accumulated
	Currency			Pension			Other
	Translation			Benefit			Comprehensive
	Adjustment			Costs			Income (Loss)
January 1, 2014	$	131		$	(552	)	$	(421	)
Change for period		(503	)		-			(503	)
Amounts re-classed from accumulated other comprehensive income (loss)		-			-			-
September 30, 2014	$	(372	)	$	(552	)	$	(924	)

10.          DUE TO RELATED PARTIES

The balance due to related parties represents amounts that are due to certain former shareholders or employees of Hego AB that are now shareholders or employees of the Company. The balance resulted from loans to Hego AB, and dividends declared but not paid by Hego AB, prior to its merger with Chyron. Interest is accrued on the outstanding balance at the annual rate of 5.95%.

11.          SEGMENT AND GEOGRAPHIC INFORMATION

Prior to the Business Combination, the Company operated as one reporting segment. As a result of the Business Combination, the Company manages its business primarily on a geographic basis. The Company's two reportable operating segments consist of the Americas and EMEA (Europe, Middle East and Africa). The Americas segment includes both North and Latin America, as well as Asia. The Company's chief operating decision maker evaluates performance of the segments based on revenues and operating income (loss). Unallocated corporate amounts are deemed by the Company as administrative, oversight costs, not managed by the segment managers. The Company does not allocate assets by segment because the chief operating decision maker does not review the assets by segment to assess the segments' performance, as the assets are managed on an entity-wide basis.

Operating segment data is as follows (in thousands):

	Three Months Ended September 30, 2014			Nine Months Ended September 30, 2014
Revenues:
Americas	$	10,094		$	26,909
EMEA		5,917			16,427
	$	16,011		$	43,336
Operating income (loss):
Americas	$	2,229		$	4,741
EMEA		650			279
Unallocated corporate expense		(5,244	)		(7,529	)
	$	(2,365	)	$	(2,509	)

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Item 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report on Form 10-Q, including, without limitation, Management's Discussion and Analysis of Financial Condition and Results of Operations, contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We intend that the forward-looking statements be covered by the safe harbor for forward-looking statements in the Exchange Act. All statements, other than statements of historical fact, that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. These forward-looking statements are usually accompanied by words such as "believe," "could," "plan," "may," "expect," "intend," "continue," "estimate," "likely," "will," "target," "strategy," "goal" and similar expressions.

Forward-looking statements necessarily involve risks and uncertainties, and our actual results could differ materially from those anticipated in the forward looking statements due to a number of factors, including, but not limited to: current and future economic conditions that may adversely affect our business and customers; our revenues and profitability may fluctuate from period to period and therefore may fail to meet expectations, which could have a material adverse effect on our business, financial condition and results of operations; our ability to maintain adequate levels of working capital; our ability to successfully maintain the level of operating costs; our ability to obtain financing for our future needs should there be a need; our ability to incentivize and retain our current senior management team and continue to attract and retain qualified scientific, technical and business personnel; our ability to expand our Axis online graphics creation solution or to develop other new products and services; our ability to generate sales and profits from our Axis online graphics services, workflow and asset management solutions; our ability to grow sales and profits from our Hego products and services; our ability to develop new Hego products and services; rapid technological changes and new technologies that could render certain of our products and services to be obsolete; competitors with significantly greater financial resources; new product and service introductions by competitors; challenges associated with expansion into new markets; our ability to integrate Zxy's business and WeatherOne's business into our business; and other factors set forth in Part I, Item 1A, entitled "Risk Factors," of our Annual Report on Form 10-K for the year ended December 31, 2013 (the "2013 Form 10-K"), as well as any updates or modifications to those risk factors filed from time to time in our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Those factors as well as other cautionary statements made in this Quarterly Report on Form 10-Q, should be read and understood as being applicable to all related forward-looking statements wherever they appear herein. The forward-looking statements contained in this Quarterly Report on Form 10-Q represent our judgment as of the date hereof. We encourage you to read those descriptions carefully. We caution you not to place undue reliance on the forward-looking statements contained in this report. These statements, like all statements in this report, speak only as of the date of this report (unless an earlier date is indicated) and we undertake no obligation to update or revise the statements except as required by law. Such forward-looking statements are not guarantees of future performance and actual results will likely differ, perhaps materially, from those suggested by such forward-looking statements. In this report, "ChyronHego," the "Company," "we," "us," and "our" refer to ChyronHego Corporation and "Hego" or "Hego AB" refers to Hego Aktiebolag.

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Overview

On May 22, 2013 we acquired the outstanding stock of Hego AB, or Hego, and changed our name to ChyronHego Corporation. The acquisition of the Hego business provides us with strong sports products and service offerings that address the needs of sports broadcasters and sports leagues and rights holders.There are significant budgets available in the sports TV space for those companies who offer an improved viewer experience, and we believe that we will be positioned to benefit from these kinds of expenditures. Ultimately, we believe that the business combination of Chyron and Hego has placed us in the position of a global leader in broadcast graphics creation, playout and real-time data visualization.

The results of operations include the operating results of Hego since completion of the business combination on May 22, 2013. The combination of these two companies is referred to as the "Business Combination."

Results of Operations for the Three and Nine Months Ended September 30, 2014 and 2013

Net sales. Revenues for the quarter ended September 30, 2014 were $16.0 million, an increase of $2.0 million, or 15%, from the $14.0 million reported in the quarter ended September 30, 2013. Revenues for the nine months ended September 30, 2014 were $43.3 million, an increase of $10.6 million, or 33%, from the $32.7 million reported in the nine months ended September 30, 2013.

Revenues by type, for the three and nine month periods are as follows (dollars in thousands):

	Three Months								Nine Months
	Ended September 30,								Ended September 30,
			% of				% of				% of				% of
	2014		Total		2013		Total		2014		Total		2013		Total
Product	$	7,105		41%	$	7,697		55%	$	20,540		46%	$	20,415		62%
Services		8,906		59%		6,262		45%		22,796		54%		12,277		38%
	$	16,011			$	13,959			$	43,336			$	32,692

In the quarter ended September 30, 2014 our product sales were lower by 8%, compared to the quarter ended September 30, 2013 primarily due to sales in the third quarter of 2013 of systems for the Sochi Winter Olympics and for a new customer facility that were not present in the third quarter of 2014. Product sales in the nine month periods ended September 30, 2014 and 2013 were relatively flat. In the three and nine month periods ended September 30, 2014 our services revenues grew $2.6 million and $10.5 million, respectively, primarily due to the contribution of services from the Business Combination.

Gross profit. Gross margins for each of the quarters ended September 30, 2014 and 2013 were 63%. Gross margins for the nine months ended September 30, 2014 and 2013 were 62% and 67%, respectively. The decrease in the gross margin percentage in the nine month period ended September 30, 2014 is primarily attributable to product mix as our products carry a higher gross margin than our services. Absent the effect of this product mix, we have been able to obtain reasonable and consistent pricing for our materials.

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Selling, general and administrative expenses. Selling, general and administrative expenses are as follows (in thousands):

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2014		2013		2014		2013
Sales and marketing	$	4,653	$	3,518	$	14,214	$	9,670
General and administrative		1,788		2,969		4,477		8,404
	$	6,441	$	6,487	$	18,691	$	18,074

The increase in sales and marketing ("S&M") expenses in the quarter ended September 30, 2014 as compared to the quarter ended September 30, 2013 is primarily due to increased presence at trade shows and other marketing costs and additional sales and support personnel in Europe. The increase in S&M expenses in the nine month period ended September 30, 2014, as compared to the same period in 2013, is primarily attributable to the increased presence at trade shows and other marketing expenses and additional sales and support personnel in Europe that occurred in the quarter ended September 30, 2014 and the incremental sales and marketing costs from our Business Combination.

The decrease in general and administrative ("G&A") expenses in the three months ended September 30, 2014 is primarily due to costs incurred in the third quarter of 2013 of $1.0 million in compensation related severance costs payable to a former executive officer. The decrease in G&A expenses in the nine months ended September 30, 2014 as compared to September 30, 2013 is due to $1.0 million in transaction costs relating to the Business Combination, $1.7 million in costs associated with the accelerated vesting of equity awards as a result of the Business Combination and the $1.0 million in compensation related severance costs, all incurred in 2013. These costs are not included in any periods in 2014 and are not recurring.

Research and development expenses. Research and development ("R&D") expenses were $2.2 million in the quarter ended September 30, 2014 compared to $2.4 million in the quarter ended September 30, 2013. R&D expenses were $6.5 million in each of the quarters ended September 30, 2014 and 2013. Our consolidated R&D costs remain fairly consistent in 2014 as compared to all corresponding periods in 2013, although such R&D costs are re-directed as projects are completed and new initiatives begin.

Change in fair value of contingent consideration. In connection with the Business Combination, a portion of the purchase price consisted of contingent consideration of shares of ChyronHego common stock. The fair value of any contingent consideration was established at the date of the Business Combination and included in the total purchase price at fair value. The contingent consideration is then adjusted to the then current fair value as an increase or decrease to earnings in each reporting period. In the three and nine months ended September 30, 2014 a net decrease to earnings of $3.8 million and $4.2 million, respectively have been recorded in order to adjust the contingent consideration to $9.9 million, its current fair value at September 30, 2014.

Interest expense, net. Interest expense, net decreased in the three months ended September 30, 2014 as compared to the quarter ended September 30, 2013 due to the full paydown of our U.S. term loan in 2013. Interest expense increased in the nine months ended September 30, 2014 as compared to September 30, 2013 due to higher outstanding borrowings in the nine month period in 2014.

Other income (loss), net. The components of other income (loss), net are as follows (in thousands):

	Three Months					Nine Months
	Ended September 30,					Ended September 30,
	2014			2013		2014			2013
Foreign exchange transaction (loss) gain	$	(11	)	$	30	$	72		$	(48	)
Loss on disposal of fixed assets		-			-		(74	)		-
Other		(11	)		-		(21	)		11
	$	(22	)	$	30	$	(23	)	$	(37	)

19

We continue to be exposed to foreign currency and exchange risk in the normal course of business due to international transactions. However, we believe that this risk is not material to our near-term financial position or results of operations. This exposure has increased due to our Business Combination, as a result of which a larger percentage of our business is transacted in foreign currencies.

Income tax benefit (expense), net. In the three and nine months ended September 30, 2014 we recorded income tax expense of $0.1 and $0.01 million, respectively. In the three and nine months ended September 30, 2013 we recorded a benefit of $0.03 million and an income tax expense of $0.07 million, respectively. The difference between our effective income tax rate and the federal statutory rate is primarily due to the mark to market adjustment for the contingent liability associated with the Business Combination that will not be deductible for tax purposes, the amount of expense associated with our share-based payment arrangements which is also not deductible and international tax rate differences.

Liquidity and Capital Resources 

At September 30, 2014, we had cash and cash equivalents on hand of $5.9 million and working capital of $7.0 million. In the first nine months of 2014, approximately $1.1 million in cash was generated from operations and we used cash to fund acquisitions of property and equipment of $1.3 million primarily in connection with our services to provide several European soccer leagues with real-time digital sports data systems and to purchase a new trade show booth for our participation at NAB 2014. We experienced an increase in accounts receivable based on increased revenues and for amounts not yet due based on customer payment terms. Cash also increased by approximately $0.9 million as a result of the acquisition of Zxy Sport Tracking AS ("Zxy") and Metaphor AS ("Metaphor") and its wholly owned subsidiaries WeatherOne AS and Weather One Limited (collectively referred to as "Weather One").

During the third quarter of 2014 we made a required contribution to our pension plan of $0.1 million. Based on current assumptions, we expect to make contributions of $0.3 million over the next twelve months as required under ERISA. Our pension plan assets were valued at $6.0 million at September 30, 2014 and $5.7 million at December 31, 2013. Our investment strategy has been consistent in recent years and we believe that the pension plan's assets are more than adequate to meet pension plan obligations for the next twelve months. 

In November 2013, we entered into a new two-year $4.0 million revolving line of credit (the "Revolver") with Silicon Valley Bank, or SVB. Borrowings on the Revolver will be based on 80% of eligible accounts receivable. At September 30, 2014, available borrowings were $4.0 million, but no borrowings were outstanding. We are also required to maintain an adjusted quick ratio ("AQR") of at least 1.25 to 1.0, measured at each calendar month-end. Additionally, if our AQR falls below 1.5x at any month-end, then any borrowings will be repaid by SVB applying collections to reduce the revolving loan balance on a daily basis, until such time as the month-end AQR is again 1.5x or greater. If the AQR at month-end is 1.5x or greater, we will maintain a static loan balance and all collections will be deposited into our operating account. The Revolver will bear interest at a floating annual rate equal to SVB's prime rate ("Prime") +1.25%. If our AQR falls below 1.5x at any month-end, the interest rate will be Prime +1.75%.

As is usual and customary in such lending agreements, the Revolver also contains certain non-financial requirements, such as required periodic reporting to the bank and various representations and warranties. The Revolver also restricts our ability to pay dividends without the bank's consent.

The Revolver is collateralized by the assets of our U.S. subsidiaries, except for (i) our intellectual property rights which are subject to a negative pledge arrangement with the bank, and (ii) any equipment whose purchase is financed by any other lender or lessor, solely to the extent the security agreement with such lender or lessor prohibits junior liens on such equipment, and only until the lien held by such lender or lessor is terminated or released with respect to such equipment.

We also have revolving credit facilities associated with our European operations that total $1.2 million of which $0.8 million is outstanding at September 30, 2014. The revolving credit facilities have expiration dates of December 31, 2014 and automatically renew for twelve month periods unless notified by the lender ninety days prior to expiration. In addition, we have two outstanding term loans in Europe that total $0.03 million at September 30, 2014. These term loans require principal payments that total $8 thousand per month and will mature in 2014 and 2015.

20

In connection with the acquisition of Granvideo AB in 2013, we issued a note payable to the previous shareholder in the principal amount of $1.2 million with a maturity date of December 31, 2017. The note does not bear interest and accordingly was recorded at an original discounted amount of $1.04 million. We made principal payments of $0.06 million on September 1, 2013 and $0.1 million on November 15, 2013 and are required to make four equal annual payments of $0.26 million on December 31 of each year from 2014 to 2017. The principal balance at September 30, 2014 was $0.9 million.

Our long-term success will depend on our ability to achieve and sustain profitable operating results and our ability to raise additional capital on acceptable terms should such additional capital be required. In the event that we are unable to achieve expected goals of profitability or raise sufficient additional capital, if needed, we may have to scale back or eliminate certain parts of our operations.

We believe that cash on hand, net cash to be generated in the business, and availability of funding under our credit facilities, will be sufficient to meet our cash requirements for at least the next twelve months if we are able to achieve our planned results of operations and retain the availability of credit under our Revolver.

If these sources of funds are not sufficient, we may need to reduce, delay or terminate our existing or planned products and services. We may also need to raise additional funds through one or more capital financings. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our existing stockholders will be diluted, and the terms may include liquidation or other preferences that adversely affect the rights of our stockholders. Debt financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring debt, making capital expenditures or declaring dividends. If we raise additional funds through collaborations, strategic alliances and licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies or products, or grant licenses on terms that are not favorable to us.

There can be no assurance that additional funds will be available when we need them on terms that are acceptable to us, or at all. If adequate funds are not available to us on a timely basis, we may be required to delay, limit, reduce or terminate development activities for one or more of our products or services; or delay, limit, reduce or terminate our sales and marketing capabilities or other activities that may be necessary to commercialize one or more of our products or services.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information called for by this Item is omitted in reliance upon Item 305(e) of Regulation S-K.

ITEM 4.  CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures 

Our principal executive officer and principal financial officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) of the Exchange Act as of the end of the period covered by this Quarterly Report on Form 10-Q, have concluded that, based on such evaluation, our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's ("SEC") rules and forms and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure, particularly during the period in which this report was being prepared.

21

On May 22, 2013 we completed the Business Combination for a purchase price of $24.6 million represented substantially by goodwill and identifiable intangible assets. Hego's operations contributed approximately $7.0 million in revenues to our consolidated financial results for the three months ended September 30, 2014. We continue to evaluate the internal control over financial reporting of the acquired business. As permitted by SEC Staff Interpretive Guidance for newly acquired businesses, the internal control over financial reporting of Hego was excluded from a formal evaluation of the effectiveness of our disclosure controls and procedures as of September 30, 2014. A report will be included in our annual report on Form 10-K for the year ending December 31, 2014.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting, identified in connection with the evaluation of such internal control that occurred during our most recent completed quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II.   OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

There have been no material changes to our legal proceedings as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013.

ITEM 1A.  RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2013, which could materially affect our business, financial condition or results of operations. The risks described in our Annual Report on Form 10-K and this Quarterly Report on Form 10-Q are not the only risks that we face. In addition, risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or results of operations. There have been no material changes in or additions to the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2013.

ITEM 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

In July of 2014, we issued 1,126,228 shares of our common stock in a private transaction in connection with our acquisition of Metaphor AS (“Metaphor”). This issuance of shares of common stock was not registered under the Securities Act of 1933, as amended (the “Securities Act”) in reliance upon the exemption from registration provided by Section 4(2) of the Securities Act.

In connection with the acquisition of Metaphor, the Company also issued 337,870 warrants to purchase our common stock at $2.78 per share for a three year period from closing.

ITEM 3.     DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.     MINE SAFETY DISCLOSURES

None.

ITEM 5.     OTHER INFORMATION

None.

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ITEM 6.   EXHIBITS

(a) Exhibits:

Exhibit No.	Description of Exhibit
31.1**	Certification of Principal Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2**	Certification of Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101**	Interactive Data Files formatted in XBRL (Extensible Business Reporting Language) from (a) our Consolidated Balance Sheets as of September 30, 2014 (unaudited) and December 31, 2013, (b) our Consolidated Statements of Operations for the Three and Nine Months ended September 30, 2014 and 2013 (unaudited), (c) our Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months ended September 30, 2014 and 2013 (unaudited), (d) our Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2014 and 2013 (unaudited) and (e) the Notes to such Consolidated Financial Statements (unaudited).
	**Filed herewith.

23

SIGNATURES

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

	CHYRONHEGO CORPORATION
	(Registrant)
November 14, 2014	/s/ Johan Apel
(Date)	Johan Apel
	Chief Executive Officer
	(Principal Executive Officer)
November 14, 2014	/s/ Dawn Johnston
(Date)	Dawn Johnston
	Interim Chief Financial Officer
	(Principal Financial Officer)

24

EX-31

Exhibit 31.1

CERTIFICATIONS UNDER SECTION 302

I, Johan Apel, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of ChyronHego Corporation;

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

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

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

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

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

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

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

5.  The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

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

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

Date: November 14, 2014	/s/ Johan Apel
	Johan Apel
	President and Chief Executive Officer

EX-31

Exhibit 31.2

CERTIFICATIONS UNDER SECTION 302

I, Dawn Johnston, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of ChyronHego Corporation;

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

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

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

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

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

 c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

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

5.  The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

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

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

Date: November 14, 2014	/s/ Dawn Johnston
	Dawn Johnston
	Interim Chief Financial Officer

EX-32

Exhibit 32.1

Certification of Principal Executive Officer
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of ChyronHego Corporation, a New York corporation (the "Company"), hereby certifies that:

The Quarterly Report for the quarter ended September 30, 2014 (the "Form 10-Q") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act, as applicable, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	November 14, 2014	/s/ Johan Apel
		Johan Apel
		President and
		Principal Executive Officer

EX-32

Exhibit 32.2

Certification of Principal Financial Officer
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of ChyronHego Corporation, a New York corporation (the "Company"), hereby certifies that:

The Quarterly Report for the quarter ended September 30, 2014 (the "Form 10-Q") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act, as applicable, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	November 14, 2014	/s/ Dawn Johnston
		Dawn Johnston
		Interim Chief Financial Officer and
		Principal Financial Officer

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Note 5 - Benefit Plans (Details) - Benefit Plan Information for the U.S. Pension Plan (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Benefit Plan Information for the U.S. Pension Plan [Abstract]
Service cost	$ 82	$ 140	$ 246	$ 421
Interest cost	101	94	303	282
Expected return on plan assets	(107)	(99)	(321)	(297)
Amortization of net loss	14	62	42	185
Amortization of prior service cost	(2)	(2)	(6)	(6)
	$ 88	$ 195	$ 264	$ 585

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Note 11 - Segment and Geographic Information (Details) - Operating Segment Data (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues:
Revenues	$ 16,011	$ 13,959	$ 43,336	$ 32,692
Operating income (loss):
Operating income (loss)	(2,365)	(1,015)	(2,509)	(3,729)
Unallocated corporate expense	(5,244)		(7,529)
Americas [Member]
Revenues:
Revenues	10,094		26,909
Operating income (loss):
Operating income (loss)	2,229		4,741
EMEA [Member]
Revenues:
Revenues	5,917		16,427
Operating income (loss):
Operating income (loss)	$ 650		$ 279

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Note 8 - Business Combination (Details) - Acquisition Purchase Price Allocation (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Apr. 30, 2014 Zxy Sport Tracking AS [Member]	Jul. 31, 2014 WeatherOne Transaction [Member]
Note 8 - Business Combination (Details) - Acquisition Purchase Price Allocation [Line Items]
Net fair value of assets acquired			$ 628	$ 1,245
Intangible assets			2,600	900
Goodwill	23,799	18,948	3,783	1,440
Purchase price allocation before deferred tax liability			7,011	3,585
Deferred tax liability			(702)	(244)
Amounts attributable to minority shareholders			(836)
Purchase price allocation after deferred tax liability			$ 5,473	$ 3,341

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Note 8 - Business Combination (Details) - Additional Shares Issued through Revenue Milestones	12 Months Ended			24 Months Ended	36 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2015
Revenue Recognition, Milestone Method [Line Items]
Shares Issuable Upon Milestone Completion	1,742,775	1,584,339	2,772,599	6,099,713	6,099,713

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Note 2 - Long-Term Incentive Plans (Details) - Summary of the Company’s RSUs (Restricted Stock Units (RSUs) [Member])	9 Months Ended
	Sep. 30, 2014
Restricted Stock Units (RSUs) [Member]
Note 2 - Long-Term Incentive Plans (Details) - Summary of the Company’s RSUs [Line Items]
Non-vested at January 1, 2014	0
Non-vested at September 30, 2014	97,847
Granted	139,839
Forfeited and cancelled	(27,956)
Vested	(14,036)

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Note 7 - Income Taxes (Tables)

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

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

	September 30,			December 31,
	2014			2013
Deferred tax assets:
Net operating loss carryforwards	$	10,895		$	12,074
Inventory		1,903			1,856
Other liabilities		3,209			3,051
Fixed assets		2,385			2,069
Other temporary differences		942			751
		19,334			19,801
Less: valuation allowance		(19,292	)		(19,745	)
Total deferred tax assets		42			56
Deferred tax liability:
Intangibles		(2,172	)		(1,453	)
Other temporary differences		65			(13	)
Net deferred tax liability	$	(2,065	)	$	(1,410	)
As reported:
Non-current deferred tax assets	$	42		$	56
Current deferred tax liability	$	(301	)	$	(271	)
Non-current deferred tax liability	$	(1,806	)	$	(1,195	)

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

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2014			2013			2014			2013
Current:	$	(178	)	$	3		$	(329	)	$	(45	)
State and Foreign
Deferred:
Federal		(12	)		(16	)		(35	)		(39	)
Foreign		53			45			352			12
		41			29			317			(27	)
Income tax (expense) benefit, net	$	(137	)	$	32		$	(12	)	$	(72	)

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Note 8 - Business Combination (Details) - Unaudited Pro Forma Results (Zxy and Weather One [Member], USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Zxy and Weather One [Member]
Note 8 - Business Combination (Details) - Unaudited Pro Forma Results [Line Items]
Net revenues	$ 44,495	$ 34,106
Net loss	$ (2,892)	$ (4,430)
Net loss per share - basic and diluted (in Dollars per share)	$ (0.08)	$ (0.17)

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Note 7 - Income Taxes (Details) (USD $)			9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 Exercise of Disqualifying Stock Options [Member]
Note 7 - Income Taxes (Details) [Line Items]
Deferred Tax Assets, Gross	$ 19,334,000	$ 19,801,000
Deferred Tax Assets, Operating Loss Carryforwards	10,895,000	12,074,000
Operating Loss Carryforwards	30,000,000
Deferred Tax Expense from Stock Options Exercised			1,300,000
Undistributed Earnings of Foreign Subsidiaries	0
Deferred Tax Liabilities, Undistributed Foreign Earnings	0
Deferred Tax Assets, Net of Valuation Allowance	$ 42,000	$ 56,000

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Note 4 - Long-term Debt (Details) - Long-Term Debt (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Other	$ 118	$ 95
	1,846	2,304
Less: portion due within one year	1,113	1,532
Other	733	772
Europe [Member]
Debt Instrument [Line Items]
Revolving credit facilities - Europe	829	933
Note payable - Europe	867	921
Terms loans - Europe	$ 32	$ 355

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Note 10 - Due to Related Parties (Details) (Hego [Member])	9 Months Ended
	Sep. 30, 2014
Hego [Member]
Note 10 - Due to Related Parties (Details) [Line Items]
Related Party Transaction, Rate	5.95%

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Note 8 - Business Combination (Details) - Additional Shares Issued through Revenue Milestones (Parentheticals) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended		24 Months Ended	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2015 Scenario, Forecast [Member] Revenue Milestone Requirement [Member]	Dec. 31, 2014 Scenario, Forecast [Member] Revenue Milestone Requirement [Member]	Dec. 31, 2014 Scenario, Forecast [Member] Revenue Milestone Requirement [Member]	Dec. 31, 2013 Revenue Milestone Requirement [Member]
Revenue Recognition, Milestone Method [Line Items]
Revenue Milestone	$ 16,011	$ 13,959	$ 43,336	$ 32,692	$ 16,500	$ 16,000	$ 33,000	$ 15,500

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Note 3 - Inventories

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

3.             INVENTORIES

Inventories, net are comprised of the following (in thousands):

	September 30,		December 31,
	2014		2013
Finished goods	$	249	$	539
Work-in-progress		266		310
Raw material		1,701		1,967
	$	2,216	$	2,816

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Note 7 - Income Taxes (Details) - Deferred Income Taxes (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Deferred tax assets:
Net operating loss carryforwards	$ 10,895	$ 12,074
Inventory	1,903	1,856
Other liabilities	3,209	3,051
Fixed assets	2,385	2,069
Other temporary differences	942	751
	19,334	19,801
Less: valuation allowance	(19,292)	(19,745)
Total deferred tax assets	42	56
Deferred tax liability:
Intangibles	(2,172)	(1,453)
Other temporary differences	65	(13)
Net deferred tax liability	(2,065)	(1,410)
As reported:
Non-current deferred tax assets	42	56
Current deferred tax liability	(301)	(271)
Non-current deferred tax liability	$ (1,806)	$ (1,195)

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Note 1 - Basis of Presentation (Details) - Shares Used to Calculate Earnings Per Share In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Note 1 - Basis of Presentation (Details) - Shares Used to Calculate Earnings Per Share [Line Items]
Basic weighted average shares outstanding	36,754	30,236	34,341	23,576
Diluted weighted average shares outstanding	36,754	30,236	34,341	23,576
Weighted average shares which are not included in the calculation of diluted earnings (loss) per share because their impact is anti-dilutive:
Antidilutive Shares	1,679	2,409	2,136	2,958
Equity Option [Member]
Weighted average shares which are not included in the calculation of diluted earnings (loss) per share because their impact is anti-dilutive:
Antidilutive Shares	1,679	2,409	2,136	2,918
Restricted Stock [Member]
Weighted average shares which are not included in the calculation of diluted earnings (loss) per share because their impact is anti-dilutive:
Antidilutive Shares	0	0	0	40
Employee Stock Option [Member]
Note 1 - Basis of Presentation (Details) - Shares Used to Calculate Earnings Per Share [Line Items]
Effect of dilutive stock options/units	0	0	0	0
Restricted Stock [Member]
Note 1 - Basis of Presentation (Details) - Shares Used to Calculate Earnings Per Share [Line Items]
Effect of dilutive stock options/units	0	0	0	0

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Note 11 - Segment and Geographic Information (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended September 30, 2014			Nine Months Ended September 30, 2014
Revenues:
Americas	$	10,094		$	26,909
EMEA		5,917			16,427
	$	16,011		$	43,336
Operating income (loss):
Americas	$	2,229		$	4,741
EMEA		650			279
Unallocated corporate expense		(5,244	)		(7,529	)
	$	(2,365	)	$	(2,509	)

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Note 7 - Income Taxes (Details) - Income Tax Benefit (Provision) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Tax Benefit (Provision) [Abstract]
Current:	$ (178)	$ 3	$ (329)	$ (45)
Deferred:
Federal	(12)	(16)	(35)	(39)
Foreign	53	45	352	12
	41	29	317	(27)
Income tax (expense) benefit, net	$ (137)	$ 32	$ (12)	$ (72)

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Note 2 - Long-Term Incentive Plans (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Note 2 - Long-Term Incentive Plans (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	3,100,000		3,100,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term			6 years	6 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	0	866,250
Employee Stock Option [Member]
Note 2 - Long-Term Incentive Plans (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term			10 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years

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Note 2 - Long-Term Incentive Plans (Details) - Weighted Average Assumptions for Options Granted (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Weighted Average Assumptions for Options Granted [Abstract]
Expected volatility	78.78%	76.23%
Risk-free interest rate	1.91%	1.06%
Expected dividend yield	0.00%	0.00%
Expected life (in years)	6 years	6 years
Estimated fair value per option granted (in Dollars per share)	$ 1.70	$ 0.87

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Note 2 - Long-Term Incentive Plans

9 Months Ended

Sep. 30, 2014

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

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

2.            LONG-TERM INCENTIVE PLANS

Pursuant to the 2008 Long-term Incentive Plan, as amended (the "Plan"), the Company may grant stock options (non-qualified or incentive), stock appreciation rights, restricted stock, restricted stock units and other share-based awards to employees, directors and other persons who serve the Company. The Plan is overseen by the Compensation Committee of the Board of Directors, which approves the timing and circumstances under which share-based awards may be granted. At September 30, 2014 there were 3.1 million shares available to be granted under the Plan. The Company issues new shares to satisfy the exercise or release of share-based awards. Under the provision of FASB Accounting Standards Codification ("ASC") Topic 718, Stock Compensation , all share-based payments are required to be recognized in the statement of operations based on their fair values at the date of grant.

The fair value of each option award is estimated using a Black-Scholes option valuation model. Expected volatility is based on the historical volatility of the price of the Company's stock. The risk-free interest rate is based on U.S. Treasury issues with a term equal to the expected life of the option. The Company uses historical data to estimate expected dividend yield, expected life and forfeiture rates. Options generally have a life of 10 years and have either time-based or performance-based vesting features. Time-based awards generally vest over a three year period, while the performance-based awards vest upon the achievement of specific performance targets. There were no options granted during the three months ended September 30, 2014 and 2013. The fair values of the options granted during the nine months ended September 30, 2014 and 2013 were estimated based on the following weighted average assumptions:

	Nine Months
	Ended September 30,
	2014			2013
Expected volatility		78.78	%		76.23	%
Risk-free interest rate		1.91	%		1.06	%
Expected dividend yield		0.00	%		0.00	%
Expected life (in years)		6.0			6.0
Estimated fair value per option granted	$	1.70		$	0.87

The following table presents a summary of the Company's stock option activity for the nine months ended September 30, 2014:

	Number of Options
Outstanding at January 1, 2014		5,994,788
Granted		866,250
Exercised		(665,597	)
Forfeited and cancelled		(73,438	)
Outstanding at September 30, 2014		6,122,003

The Company also grants restricted stock units, or RSUs, each of which entitles the holder to a share of Company common stock. The fair value of an RSU is equal to the market value of a share of common stock on the date of grant. The following table presents a summary of the Company's RSU activity for the nine months ended September 30, 2014:

	Shares
Non-vested at January 1, 2014		-
Granted		139,839
Forfeited and cancelled		(27,956	)
Vested		(14,036	)
Non-vested at September 30, 2014		97,847

The Company amortizes share-based compensation expense over the vesting period on a straight line basis. The impact on the Company's results of operations of recording share-based compensation expense is as follows (in thousands):

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2014		2013		2014		2013
Cost of sales	$	31	$	2	$	80	$	30
Research and development		128		35		331		189
Selling, general and administrative		221		220		571		2,422
	$	380	$	257	$	982	$	2,641

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Note 2 - Long-Term Incentive Plans (Details) - Summary of the Company’s Stock Options	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
Summary of the Company’s Stock Options [Abstract]
Outstanding at January 1, 2014			5,994,788
Granted	0	0	866,250
Exercised			(665,597)
Forfeited and cancelled			(73,438)
Outstanding at September 30, 2014	6,122,003		6,122,003

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Note 6 - Product Warranty (Details)	9 Months Ended
	Sep. 30, 2014
Product Warranties Disclosures [Abstract]
Product Warranty Term	1 year

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Note 11 - Segment and Geographic Information (Details)	5 Months Ended	9 Months Ended
	May 22, 2013	Sep. 30, 2014
Segment Reporting [Abstract]
Number of Reportable Segments	1	2

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Consolidated Balance Sheets (Current Period Unaudited) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 5,874	$ 5,266
Accounts receivable, net	12,227	7,781
Inventories, net	2,216	2,816
Prepaid expenses and other current assets	2,683	2,525
Total current assets	23,000	18,388
Property and equipment, net	3,906	4,145
Intangible assets, net	11,390	8,968
Goodwill	23,799	18,948
Deferred tax asset	42	56
Other assets	132	147
TOTAL ASSETS	62,269	50,652
Current liabilities:
Accounts payable and accrued expenses	8,091	9,240
Deferred revenue	5,398	4,660
Short-term debt	1,113	1,532
Due to related parties	587	716
Current portion of pension liability	327	518
Deferred tax liability	301	271
Capital lease obligations	137	215
Total current liabilities	15,954	17,152
Pension liability	2,431	2,197
Deferred revenue	764	923
Long-term debt	733	772
Deferred tax liability	1,806	1,195
Other liabilities	552	686
Total liabilities	33,746	35,185
Commitments and contingencies
Shareholders' equity:
Preferred stock, par value $1.00, without designation	0	0
Issued and outstanding - 36,901,406 at September 30, 2014 and 30,788,251 at December 31, 2013	369	308
Additional paid-in capital	119,156	103,642
Accumulated deficit	(91,098)	(88,243)
Accumulated other comprehensive loss	(924)	(421)
Total ChyronHego Corporation shareholders' equity	27,503	15,286
Non-controlling interests	1,020	181
Total shareholders' equity	28,523	15,467
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	62,269	50,652
Fair Value, Inputs, Level 3 [Member]
Current liabilities:
Contingent consideration	$ 11,506	$ 12,260

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Note 8 - Business Combination (Details) (USD $)	3 Months Ended		9 Months Ended			1 Months Ended		1 Months Ended		3 Months Ended	9 Months Ended			1 Months Ended			21 Months Ended	1 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	May 22, 2013 Earn-Out Shares [Member] Hego [Member]	Apr. 30, 2014 Common Stock [Member] Zxy Sport Tracking AS [Member]	Jul. 31, 2014 Common Stock [Member] WeatherOne Transaction [Member]	Nov. 30, 2014 Subsequent Event [Member] Hego [Member]	Apr. 30, 2014 After Maximum Earn-Out Acheived [Member] Zxy Sport Tracking AS [Member]	Sep. 30, 2014 Fair Value, Inputs, Level 3 [Member] Hego [Member]	Sep. 30, 2014 Fair Value, Inputs, Level 3 [Member] Hego [Member]	Sep. 30, 2014 Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2013 Fair Value, Inputs, Level 3 [Member]	May 22, 2013 Cash [Member] Hego [Member]	Mar. 31, 2014 Hego [Member]	May 22, 2013 Hego [Member]	Sep. 30, 2014 Hego [Member]	Apr. 30, 2014 Zxy Sport Tracking AS [Member] Maximum [Member]	Apr. 30, 2014 Zxy Sport Tracking AS [Member] Minimum [Member]	Apr. 30, 2014 Zxy Sport Tracking AS [Member]	Jul. 31, 2014 WeatherOne Transaction [Member]
Note 8 - Business Combination (Details) [Line Items]
Business Combination, Consideration Transferred														$ 500,000		$ 24,600,000				$ 5,500,000
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares)						1,374,545										12,200,000
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned					7,500,000	3,300,000										16,600,000
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	3,776,000	878,000	4,176,000	933,000						3,800,000	4,200,000
Business Combination, Contingent Consideration, Liability										9,900,000	9,900,000	11,506,000	12,260,000
Stock Issued During Period, Shares, Other (in Shares)								3,327,114							2,772,599
Share Price (in Dollars per share)								$ 2.88							$ 2.34
Revenue Recognition, Milestone Method, Revenue Recognized																	33,000,000
Business Acquisition, Percentage of Voting Interests Acquired																				67.00%
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Warrants Issued (in Shares)																				549,818	337,870
Class of Warrant or Right, Value, Warrants Issued																				700,000	300,000
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right (in Shares)						1	1
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)						$ 2.75															$ 2.78
Class of Warrant or Right, Expiration Period																				3 years	3 years
Business Combination Earn-out Percentage									7.50%											15.00%
Earn Out Payment																		3,000,000	110,000
Business Combination, Contingent Consideration Arrangement, Earn-out Payment																				1,500,000
Stock Issued During Period, Shares, New Issues (in Shares)																					1,126,228
Stock Issued During Period, Value, New Issues																					2,400,000
Payments to Acquire Businesses, Gross																					$ 600,000

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,819)	$ (4,041)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	2,178	1,755
Deferred income taxes	(317)	27
Inventory provisions	125	50
Share-based payment arrangements	982	2,641
Shares issued for 401(k) match	162	179
Change in fair value of contingent consideration	4,176	933
Other	131	427
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(4,349)	(1,649)
Inventories	626	(784)
Prepaid expenses and other assets	162	(472)
Accounts payable and accrued expenses	(174)	1,828
Deferred revenue	348	432
Other liabilities	(105)	410
Net cash provided by operating activities	1,126	1,736
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of property and equipment, net	(1,349)	(1,648)
Acquisition of business, net of cash acquired	866	14
Net cash used in investing activities	(483)	(1,634)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments on revolving credit facilities, net	1	315
Repayments on debt	(357)	(399)
Proceeds from borrowings	55	280
Payments on capital lease obligations	(195)	(134)
Proceeds from exercise of stock options	499	6
Net cash provided by financing activities	3	68
Effect of exchange rates on cash and cash equivalents	(38)	48
Change in cash and cash equivalents	608	218
Cash and cash equivalents at beginning of period	5,266	2,483
Cash and cash equivalents at end of period	5,874	2,701
SUPPLEMENTAL CASH FLOW INFORMATION:
Common stock and warrants issued for acquisitions	6,586	16,591
Common stock issued in settlement of contingent consideration (in Shares)	6,488
Common stock issued in settlement of awards under the
Management Incentive Compensation Plan and Severance Agreements	846
Debt incurred for acquisition		1,044
At Acquisition Date [Member] | Fair Value, Inputs, Level 3 [Member]
SUPPLEMENTAL CASH FLOW INFORMATION:
Contingent consideration for acquisition	$ 1,557	$ 7,500

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Note 3 - Inventories (Details) - Inventory (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Inventory [Abstract]
Finished goods	$ 249	$ 539
Work-in-progress	266	310
Raw material	1,701	1,967
	$ 2,216	$ 2,816

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Note 4 - Long-term Debt (Tables)

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

	September 30,		December 31,
	2014		2013
Revolving credit facilities - Europe	$	829	$	933
Note payable - Europe		867		921
Terms loans - Europe		32		355
Other		118		95
		1,846		2,304
Less: portion due within one year		1,113		1,532
Other	$	733	$	772

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Note 4 - Long-term Debt (Details) (USD $)		49 Months Ended	9 Months Ended					9 Months Ended			9 Months Ended		0 Months Ended
	Sep. 30, 2013	Dec. 31, 2017 Scenario, Forecast [Member] Granvideo AB [Member] Europe [Member]	Sep. 30, 2014 When AQR Falls Below 1.5x [Member] Revolving Credit Facility [Member] Prime Rate [Member] UNITED STATES	Sep. 30, 2014 Revolving Credit Facility [Member] When AQR Falls Below 1.5x [Member] UNITED STATES	Sep. 30, 2014 Revolving Credit Facility [Member] Europe [Member]	Sep. 30, 2014 Revolving Credit Facility [Member] UNITED STATES	Nov. 30, 2013 Revolving Credit Facility [Member] UNITED STATES	Sep. 30, 2014 Term Loan [Member] Prime Rate [Member]	Sep. 30, 2014 Term Loan [Member] Minimum [Member] Europe [Member]	Sep. 30, 2014 Term Loan [Member] Maximum [Member] Europe [Member]	Sep. 30, 2014 Term Loan [Member] Europe [Member]	Sep. 30, 2014 Term Loan [Member] UNITED STATES	Nov. 15, 2013 Granvideo AB [Member] Europe [Member]	Sep. 02, 2013 Granvideo AB [Member] Europe [Member]	Sep. 30, 2014 Granvideo AB [Member] Europe [Member]	Dec. 31, 2013 Granvideo AB [Member] Europe [Member]	Sep. 30, 2014 Europe [Member]	Dec. 31, 2013 Europe [Member]
Note 4 - Long-term Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 1,200,000		$ 4,000,000
Long-term Line of Credit					800,000	0											829,000	933,000
Line of Credit Facility, Interest Rate During Period					5.95%
Notes Payable																1,200,000	867,000	921,000
Debt Instrument, Fair Value Disclosure	1,044,000															1,040,000
Debt Instrument, Periodic Payment, Principal		260,000									8,000		100,000	60,000
Long-term Debt, Gross											30,000				900,000
Debt Instrument, Interest Rate, Stated Percentage									7.45%	7.75%
Line Of Credit Facility Advance Rate Percentage Of Elligible Accounts Receivable						80.00%
Line of Credit Facility, Remaining Borrowing Capacity						4,000,000
Debt Instrument Covenant Terms Adjusted Quick Ratio						1.25
Minimum Adjusted Quick Ratio						1.5
Debt Instrument, Basis Spread on Variable Rate			1.75%	1.25%				2.25%
Repayments Of Term Loan						$ 400,000
Term Loan Duration of Payment Periods												30 months

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Note 6 - Product Warranty (Tables)

9 Months Ended

Sep. 30, 2014

Product Warranties Disclosures [Abstract]

Schedule of Product Warranty Liability [Table Text Block]

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2014			2013			2014			2013
Balance at beginning of period	$	126		$	65		$	118		$	50
Provisions		-			55			194			125
Warranty services provided, net		(87	)		(25	)		(273	)		(80	)
	$	39		$	95		$	39		$	95

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Note 1 - Basis of Presentation

9 Months Ended

Sep. 30, 2014

Disclosure Text Block [Abstract]

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

1.            BASIS OF PRESENTATION

Nature of Business

On May 22, 2013 Chyron Corporation ("Chyron") acquired the outstanding stock of Hego Aktiebolag ("Hego" or "Hego AB"), and changed its name to ChyronHego Corporation (the "Company" or "ChyronHego"). Hego is a global graphics services company based in Stockholm, Sweden that develops real-time graphics products for the broadcast and sports industries. The companies combined in a cash and stock-for-stock transaction and the Company has continued to trade on the NASDAQ under the symbol "CHYR." The combination of these two companies, which is referred to in these consolidated financial statements as the "Business Combination," forms a leading global provider of broadcast graphics creation, playout and real-time data visualization.

General

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany amounts have been eliminated. The results of operations include the operating results of Hego since the completion of the Business Combination on May 22, 2013. See Note 8 of these consolidated financial statements.

In the opinion of management of the Company, the unaudited consolidated interim financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position of the Company as of September 30, 2014 and the consolidated results of its operations, its comprehensive income (loss) and its cash flows for the periods ended September 30, 2014 and 2013. The results of operations for such interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2014. In addition, management is required to make estimates and assumptions that affect the amounts reported and related disclosures. Estimates made by management include inventory valuations, stock and bonus compensation, allowances for doubtful accounts, income taxes, pension assumptions, allocations of purchase price, contingent consideration, valuation of intangible assets and reserves for warranty and incurred but not reported health insurance claims. Estimates, by their nature, are based on judgment and available information. Also, during interim periods, certain costs and expenses are allocated among periods based on an estimate of time expired, benefit received, or other activity associated with the periods. Accordingly, actual results could differ from those estimates. The Company has not segregated its cost of sales between costs of products and costs of services as it is not practicable to segregate such costs. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission. For further information, refer to the audited consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. The December 31, 2013 figures included herein were derived from such audited consolidated financial statements.

Earnings (Loss) Per Share

Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potential dilutive shares of common stock been issued. The dilutive effect of stock options and restricted stock units are reflected in diluted net income (loss) per share by applying the treasury stock method.

The Company recorded net losses for the three and nine months ended September 30, 2014 and 2013. Potential common shares are anti-dilutive in periods in which the Company records a net loss because they would reduce the respective period's net loss per share. Anti-dilutive potential common shares are excluded from the calculation of diluted earnings per share.      

Shares used to calculate net income (loss) per share are as follows (in thousands): 

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2014		2013		2014		2013
Basic weighted average shares outstanding		36,754		30,236		34,341		23,576
Effect of dilutive stock options		-		-		-		-
Effect of dilutive restricted stock units		-		-		-		-
Diluted weighted average shares outstanding		36,754		30,236		34,341		23,576
Weighted average shares which are not included in the calculation of diluted earnings (loss) per share because their impact is anti-dilutive:
Stock options		1,679		2,409		2,136		2,918
Restricted stock units		-		-		-		40
		1,679		2,409		2,136		2,958

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Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Preferred stock, par value (in Dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	36,901,406	30,788,251
Common stock, shares outstanding	36,901,406	30,788,251

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Note 11 - Segment and Geographic Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

11.          SEGMENT AND GEOGRAPHIC INFORMATION

Prior to the Business Combination, the Company operated as one reporting segment. As a result of the Business Combination, the Company manages its business primarily on a geographic basis. The Company's two reportable operating segments consist of the Americas and EMEA (Europe, Middle East and Africa). The Americas segment includes both North and Latin America, as well as Asia. The Company's chief operating decision maker evaluates performance of the segments based on revenues and operating income (loss). Unallocated corporate amounts are deemed by the Company as administrative, oversight costs, not managed by the segment managers. The Company does not allocate assets by segment because the chief operating decision maker does not review the assets by segment to assess the segments' performance, as the assets are managed on an entity-wide basis.

Operating segment data is as follows (in thousands):

	Three Months Ended September 30, 2014			Nine Months Ended September 30, 2014
Revenues:
Americas	$	10,094		$	26,909
EMEA		5,917			16,427
	$	16,011		$	43,336
Operating income (loss):
Americas	$	2,229		$	4,741
EMEA		650			279
Unallocated corporate expense		(5,244	)		(7,529	)
	$	(2,365	)	$	(2,509	)

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Document And Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 07, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	CHYRONHEGO CORPORATION
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		40,252,967
Amendment Flag	false
Entity Central Index Key	0000020232
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3

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Accounting Policies, by Policy (Policies)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Earnings Per Share, Policy [Policy Text Block]

Earnings (Loss) Per Share

Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potential dilutive shares of common stock been issued. The dilutive effect of stock options and restricted stock units are reflected in diluted net income (loss) per share by applying the treasury stock method.

The Company recorded net losses for the three and nine months ended September 30, 2014 and 2013. Potential common shares are anti-dilutive in periods in which the Company records a net loss because they would reduce the respective period's net loss per share. Anti-dilutive potential common shares are excluded from the calculation of diluted earnings per share.      

Shares used to calculate net income (loss) per share are as follows (in thousands): 

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2014		2013		2014		2013
Basic weighted average shares outstanding		36,754		30,236		34,341		23,576
Effect of dilutive stock options		-		-		-		-
Effect of dilutive restricted stock units		-		-		-		-
Diluted weighted average shares outstanding		36,754		30,236		34,341		23,576
Weighted average shares which are not included in the calculation of diluted earnings (loss) per share because their impact is anti-dilutive:
Stock options		1,679		2,409		2,136		2,918
Restricted stock units		-		-		-		40
		1,679		2,409		2,136		2,958

Basis of Accounting, Policy [Policy Text Block]

General

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany amounts have been eliminated. The results of operations include the operating results of Hego since the completion of the Business Combination on May 22, 2013. See Note 8 of these consolidated financial statements.

In the opinion of management of the Company, the unaudited consolidated interim financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position of the Company as of September 30, 2014 and the consolidated results of its operations, its comprehensive income (loss) and its cash flows for the periods ended September 30, 2014 and 2013. The results of operations for such interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2014. In addition, management is required to make estimates and assumptions that affect the amounts reported and related disclosures. Estimates made by management include inventory valuations, stock and bonus compensation, allowances for doubtful accounts, income taxes, pension assumptions, allocations of purchase price, contingent consideration, valuation of intangible assets and reserves for warranty and incurred but not reported health insurance claims. Estimates, by their nature, are based on judgment and available information. Also, during interim periods, certain costs and expenses are allocated among periods based on an estimate of time expired, benefit received, or other activity associated with the periods. Accordingly, actual results could differ from those estimates. The Company has not segregated its cost of sales between costs of products and costs of services as it is not practicable to segregate such costs. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission. For further information, refer to the audited consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. The December 31, 2013 figures included herein were derived from such audited consolidated financial statements.

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Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Product revenues	$ 7,105	$ 7,697	$ 20,540	$ 20,415
Service revenues	8,906	6,262	22,796	12,277
Total revenues	16,011	13,959	43,336	32,692
Cost of sales	5,912	5,210	16,425	10,890
Gross profit	10,099	8,749	26,911	21,802
Operating expenses:
Selling, general and administrative	6,441	6,487	18,691	18,074
Research and development	2,247	2,399	6,553	6,524
Change in fair value of contingent consideration	3,776	878	4,176	933
Total operating expenses	12,464	9,764	29,420	25,531
Operating loss	(2,365)	(1,015)	(2,509)	(3,729)
Interest expense, net	(31)	(94)	(275)	(203)
Other income (loss), net	(22)	30	(23)	(37)
Loss before taxes	(2,418)	(1,079)	(2,807)	(3,969)
Income tax benefit (expense), net	(137)	32	(12)	(72)
Net loss	(2,555)	(1,047)	(2,819)	(4,041)
Less: Net income attributable to Non-controlling interests	5	30	36	38
Net loss attributable to ChyronHego Shareholders	$ (2,560)	$ (1,077)	$ (2,855)	$ (4,079)
Net loss per share attributable to ChyronHego shareholders - basic (in Dollars per share)	$ (0.07)	$ (0.04)	$ (0.08)	$ (0.17)
Net loss per share attributable to ChyronHego shareholders - diluted (in Dollars per share)	$ (0.07)	$ (0.04)	$ (0.08)	$ (0.17)
Weighted average shares outstanding:
Basic (in Shares)	36,754	30,236	34,341	23,576
Diluted (in Shares)	36,754	30,236	34,341	23,576

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Note 6 - Product Warranty

9 Months Ended

Sep. 30, 2014

Product Warranties Disclosures [Abstract]

Product Warranty Disclosure [Text Block]

6.             PRODUCT WARRANTY

The Company provides product warranties for its various products, typically for one year. Liabilities for the estimated future costs of repair or replacement are established and charged to cost of sales at the time the sale is recognized. The Company established its reserve based on historical data, taking into consideration specific product information. The following table sets forth the changes in the warranty reserve (in thousands):

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2014			2013			2014			2013
Balance at beginning of period	$	126		$	65		$	118		$	50
Provisions		-			55			194			125
Warranty services provided, net		(87	)		(25	)		(273	)		(80	)
	$	39		$	95		$	39		$	95

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Note 5 - Benefit Plans

9 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

5.            BENEFIT PLANS

The net periodic benefit cost relating to the Company's U.S. Pension Plan is as follows (in thousands):

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2014			2013			2014			2013
Service cost	$	82		$	140		$	246		$	421
Interest cost		101			94			303			282
Expected return on plan assets		(107	)		(99	)		(321	)		(297	)
Amortization of net loss		14			62			42			185
Amortization of prior service cost		(2	)		(2	)		(6	)		(6	)
	$	88		$	195		$	264		$	585

The Company's policy is to fund the minimum contributions required under the Employee Retirement Income Security Act ("ERISA") and, subject to cash flow levels, the Company may choose to make a discretionary contribution to its pension plan to reduce the unfunded liability. In the third quarter of 2014, the Company made a required contribution of $0.1 million. Based on current assumptions, the Company expects to make required contributions of $0.3 million in the next twelve months.

The Company has adopted a 401(k) Plan exclusively for the benefit of participants and their beneficiaries. All U.S. employees of the Company are eligible to participate in the 401(k) Plan. The Company may make discretionary matching contributions of the compensation contributed by the participant. The Company has the option of making the matching contributions in cash or through shares of Company common stock. During the nine months ended September 30, 2014 and 2013, the Company issued 70 thousand and 174 thousand shares of common stock in connection with the Company match for the 401(k) Plan in lieu of an aggregate cash match of $162 thousand and $179 thousand, respectively.

Substantially all employees of the Company's foreign subsidiaries receive retirement benefits, at least to the extent required by law, through funds that are governed by local statutory requirements. Contributions are typically based on specified percentages of the employees' salaries.

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Note 5 - Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Schedule of Net Benefit Costs [Table Text Block]

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2014			2013			2014			2013
Service cost	$	82		$	140		$	246		$	421
Interest cost		101			94			303			282
Expected return on plan assets		(107	)		(99	)		(321	)		(297	)
Amortization of net loss		14			62			42			185
Amortization of prior service cost		(2	)		(2	)		(6	)		(6	)
	$	88		$	195		$	264		$	585

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Note 1 - Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2014

Disclosure Text Block [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2014		2013		2014		2013
Basic weighted average shares outstanding		36,754		30,236		34,341		23,576
Effect of dilutive stock options		-		-		-		-
Effect of dilutive restricted stock units		-		-		-		-
Diluted weighted average shares outstanding		36,754		30,236		34,341		23,576
Weighted average shares which are not included in the calculation of diluted earnings (loss) per share because their impact is anti-dilutive:
Stock options		1,679		2,409		2,136		2,918
Restricted stock units		-		-		-		40
		1,679		2,409		2,136		2,958

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Note 9 - Other Comprehensive Income

9 Months Ended

Sep. 30, 2014

Disclosure Text Block [Abstract]

Comprehensive Income (Loss) Note [Text Block]

9.            OTHER COMPREHENSIVE INCOME

Components and activity related to accumulated other comprehensive income (loss) is as follows (in thousands):

	Foreign						Accumulated
	Currency			Pension			Other
	Translation			Benefit			Comprehensive
	Adjustment			Costs			Income (Loss)
January 1, 2014	$	131		$	(552	)	$	(421	)
Change for period		(503	)		-			(503	)
Amounts re-classed from accumulated other comprehensive income (loss)		-			-			-
September 30, 2014	$	(372	)	$	(552	)	$	(924	)

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Note 7 - Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

7.             INCOME TAXES

The components of deferred income taxes are as follows (in thousands):

	September 30,			December 31,
	2014			2013
Deferred tax assets:
Net operating loss carryforwards	$	10,895		$	12,074
Inventory		1,903			1,856
Other liabilities		3,209			3,051
Fixed assets		2,385			2,069
Other temporary differences		942			751
		19,334			19,801
Less: valuation allowance		(19,292	)		(19,745	)
Total deferred tax assets		42			56
Deferred tax liability:
Intangibles		(2,172	)		(1,453	)
Other temporary differences		65			(13	)
Net deferred tax liability	$	(2,065	)	$	(1,410	)
As reported:
Non-current deferred tax assets	$	42		$	56
Current deferred tax liability	$	(301	)	$	(271	)
Non-current deferred tax liability	$	(1,806	)	$	(1,195	)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. At September 30, 2014, the gross deferred tax balance was $19.3 million and includes the $11 million tax effect of $30 million in U.S. Federal net operating loss carryforwards ("NOLs") expiring between 2019 and 2032. The Company has not recorded a deferred tax asset of approximately $1.3 million related to the NOLs resulting from the exercise of disqualifying stock options and restricted stock units which will be accounted for as a credit to additional paid in capital when realized as a reduction to income taxes payable.

Sections 382 and 383 of the Internal Revenue Code, and similar state regulations, contain provisions that may limit the net operating loss and tax credit carryforwards available to be used to offset income in any given year upon the occurrence of certain events, including changes in the ownership interests of significant stockholders. In the event of a cumulative change in ownership in excess of 50% over a three-year period, the amount of the net operating loss carryforwards that the Company may utilize in any one year may be limited.

There are no undistributed net earnings for the Company's foreign subsidiaries, and accordingly no related deferred taxes.

Accounting standards require that the Company continually assess the likelihood that its deferred taxes will be realizable. All available evidence, both positive and negative, must be considered in determining whether it is more likely than not that the deferred tax assets will be realized. In making such assessments, significant weight is given to evidence that can be objectively verified. A company's current or previous losses are given more weight than its future outlook. As of September 30, 2014 and December 31, 2013, using that standard, the Company concluded that a full valuation allowance was required for its U.S. and state deferred tax assets. As of September 30, 2014 the unreserved balance of $42 thousand relates to certain foreign deferred tax assets. The Company will continue to assess the likelihood that its deferred tax assets will be realizable, and its valuation allowance will be adjusted accordingly, which could materially impact its financial position and results of operations in future periods.

The components of the provision for income tax benefit (expense), net are as follows for the periods ended (in thousands):

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2014			2013			2014			2013
Current:	$	(178	)	$	3		$	(329	)	$	(45	)
State and Foreign
Deferred:
Federal		(12	)		(16	)		(35	)		(39	)
Foreign		53			45			352			12
		41			29			317			(27	)
Income tax (expense) benefit, net	$	(137	)	$	32		$	(12	)	$	(72	)

The difference between the Company's effective income tax rate and the federal statutory rate is primarily due to the mark to market adjustment for our contingent liability relating to the Business Combination that will not be deductible for tax purposes, the amount of expense associated with the Company's share-based payment arrangements which is also not deductible and international tax rate differences.

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Note 8 - Business Combination

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

8.            BUSINESS COMBINATION AND OTHER ACQUISITIONS

On May 22, 2013, Chyron and Hego completed the Business Combination whereby a wholly-owned subsidiary of Chyron acquired all of the issued and outstanding shares of Hego for a total purchase price of $24.6 million. The Company and Hego entered into the Business Combination to create a market leading company in the fields of TV graphics, data visualization and production services for 'Live' and on line news and sports production.

The total purchase price of $24.6 million is comprised of 12.2 million shares of the Company's common stock valued at $16.6 million, contingent consideration of shares of the Company's common stock (the "Earn-Out Shares") valued at an estimated $7.5 million and $0.5 million in cash and other consideration. The $7.5 million represents the value of the Earn-Out Shares based on a probability-based model measuring the likelihood of achieving certain revenue milestones as detailed below, and has been recorded as a liability in the balance sheet. In connection with FASB ASC 805, Business Combinations, the fair value of the contingent consideration was established at the date of the Business Combination and included in the total purchase price at fair value. The contingent consideration is then adjusted to the then current fair value as an increase or decrease to earnings in each reporting period. This adjustment has had a material impact on the Company's financial position and results of operations and will continue to impact the Company until all contingencies have been settled. In the three and nine months ended September 30, 2014 charges of $3.8 million and $4.2 million, respectively, have been recorded in order to adjust the contingent consideration to $9.9 million, its current fair value at September 30, 2014, in the level 3 category. Based on the revenue milestones, additional shares are likely to be issued as follows:

Revenue milestones	Additional shares
$15.5 million in 2013		2,772,599
$16.0 million in 2014		1,584,339
$16.5 million in 2015		1,742,775
Total		6,099,713
Or, alternatively, if $33.0 million for 2013 and 2014 combined		6,099,713

At December 31, 2013, the 2013 revenue milestone was achieved and 2,772,599 additional shares were issued in March 2014 at a stock price of $2.34 per share. At September 30, 2014, the 2013 and 2014 combined revenue milestone of $33.0 million was achieved and 3,327,114 additional shares were issued in November 2014 at a stock price of $2.88.

On April 30, 2014 the Company completed its acquisition of Norway-based Zxy Sport Tracking AS (“Zxy”). Pursuant to the terms of the Share Purchase Agreement with Zxy (the “SPA”), the Company acquired 67% of the issued and outstanding shares of Zxy for a total purchase price of $5.5 million. Pursuant to the terms of the SPA, the Company issued 1,374,545 shares of ChyronHego Common Stock (“Common Stock”) at a value of $3.3 million and issued 549,818 warrants at a value of $0.7 million, based on a Black-Scholes valuation model. The warrants give the holders the right to purchase one share of Common Stock at a price of $2.75 for a three year period from closing.

In addition, stockholders of Zxy will be entitled to an earn-out, payable in cash, in an amount equal to 15% of the net revenues from all sales of Zxy products and services from the closing date through December 31, 2018, up to $3.0 million. If and when $3.0 million in such revenues has been achieved, the earn-out rate shall be reduced to 7.5% for the remainder of the earn-out period. The stockholders are entitled to a guaranteed minimum earn-out amount of $110,000 in each of 2014, 2015 and 2016. The earn-out was valued at $1.5 million based on a discounted model measuring the likelihood of achieving certain revenue levels.

The following table summarizes the estimated allocation of the purchase price which is preliminary and subject to adjustment following the completion of the valuation process (in thousands):

Net fair value of assets acquired	$	628
Intangible assets		2,600
Goodwill		3,783
		7,011
Deferred tax liability		(702	)
Amounts attributable to minority shareholders		(836	)
	$	5,473

The goodwill resulting from the Zxy acquisition reflects a transponder-based sports tracking technology that the Company believes will strengthen its position in the sports analysis market across both the sports broadcast and professional sports markets. The Company believes that this preliminary estimate of goodwill will not be deductible for tax purposes.

The components and estimated useful lives of intangible assets acquired are stated below. Amortization is provided on a straight line method over the following estimated useful lives (dollar amounts in thousands):

Definite-lived intangibles:			Estimated Useful Life (in years)
Proprietary technology	$	2,300	15
Tradename		300	15
	$	2,600

On July 1, 2014, the Company completed its acquisition of Norway based Metaphor AS ("Metaphor") and its wholly owned subsidiaries WeatherOne AS and WeatherOne Limited (collectively referred to as "WeatherOne"). The acquisition of Metaphor and WeatherOne is referred to as the WeatherOne Transaction.

In accordance with the share purchase agreement for the acquisition of Metaphor and WeatherOne, the Company issued 1,126,228 shares of Common Stock at a value of $2.4 million, 337,870 warrants at a value of $0.3 million, based on a Black-Scholes valuation model, and $0.6 million in cash. The warrants give the holders the right to purchase one share of Common Stock at a price of $2.78 per share for a three-year period.

The following table summarizes the estimated allocation of the purchase price which is preliminary and subject to adjustment following the completion of the valuation process (in thousands):

Net fair value of assets acquired	$	1,245
Intangible assets		900
Goodwill		1,440
		3,585
Deferred tax liability		(244	)
	$	3,341

The goodwill resulting from the WeatherOne Transaction reflects a weather forecast solution for broadcast and digital media that the Company believes will strengthen its product offering. The Company believes that this preliminary estimate of goodwill will not be deductible for tax purposes.

The components and estimated useful lives of intangible assets acquired are stated below. Amortization is provided on a straight line method over the following estimated useful lives (dollar amounts in thousands):

Definite-lived intangibles:			Estimated Useful Life (in years)
Proprietary technology	$	400	15
Supplier relationships		400	15
Tradename		100	15
	$	900

Below are the unaudited proforma results of operations for the nine months ended September 30, 2014 and 2013 as if the Company had acquired Zxy and WeatherOne on January 1, 2013. Such proforma results are not necessarily indicative of the annual results of operations that would have been achieved if the acquisitions occurred on the date assumed, nor are they necessarily indicative of future consolidated results of operations (in thousands except per share data):

	2014			2013
Net revenues	$	44,495		$	34,106
Net loss		(2,892	)		(4,430	)
Net loss per share - basic and diluted	$	(0.08	)	$	(0.17	)

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Note 10 - Due to Related Parties

9 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

10.          DUE TO RELATED PARTIES

The balance due to related parties represents amounts that are due to certain former shareholders or employees of Hego AB that are now shareholders or employees of the Company. The balance resulted from loans to Hego AB, and dividends declared but not paid by Hego AB, prior to its merger with Chyron. Interest is accrued on the outstanding balance at the annual rate of 5.95%.

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Note 2 - Long-Term Incentive Plans (Details) - Impact on our Results of Operations of Recording Share-based Compensation Expense (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Compensation Expense	$ 380	$ 257	$ 982	$ 2,641
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Compensation Expense	31	2	80	30
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Compensation Expense	128	35	331	189
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Compensation Expense	$ 221	$ 220	$ 571	$ 2,422

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Note 9 - Other Comprehensive Income (Details) - Components and Activity Related to Accumulated Other Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Note 9 - Other Comprehensive Income (Details) - Components and Activity Related to Accumulated Other Comprehensive Income (Loss) [Line Items]
January 1, 2014	$ (421)
Change for period	(503)
September 30, 2014	(924)
Accumulated Translation Adjustment [Member]
Note 9 - Other Comprehensive Income (Details) - Components and Activity Related to Accumulated Other Comprehensive Income (Loss) [Line Items]
January 1, 2014	131
Change for period	(503)
September 30, 2014	(372)
Accumulated Defined Benefit Plans Adjustment [Member]
Note 9 - Other Comprehensive Income (Details) - Components and Activity Related to Accumulated Other Comprehensive Income (Loss) [Line Items]
January 1, 2014	(552)
Change for period	0
September 30, 2014	$ (552)

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Note 3 - Inventories (Tables)

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

	September 30,		December 31,
	2014		2013
Finished goods	$	249	$	539
Work-in-progress		266		310
Raw material		1,701		1,967
	$	2,216	$	2,816

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Note 8 - Business Combination (Tables)

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Revenue Recognition, Milestone Method [Table Text Block]

Revenue milestones	Additional shares
$15.5 million in 2013		2,772,599
$16.0 million in 2014		1,584,339
$16.5 million in 2015		1,742,775
Total		6,099,713
Or, alternatively, if $33.0 million for 2013 and 2014 combined		6,099,713

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Net fair value of assets acquired	$	628
Intangible assets		2,600
Goodwill		3,783
		7,011
Deferred tax liability		(702	)
Amounts attributable to minority shareholders		(836	)
	$	5,473

Net fair value of assets acquired	$	1,245
Intangible assets		900
Goodwill		1,440
		3,585
Deferred tax liability		(244	)
	$	3,341

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

Definite-lived intangibles:			Estimated Useful Life (in years)
Proprietary technology	$	2,300	15
Tradename		300	15
	$	2,600

Definite-lived intangibles:			Estimated Useful Life (in years)
Proprietary technology	$	400	15
Supplier relationships		400	15
Tradename		100	15
	$	900

Business Acquisition, Pro Forma Information [Table Text Block]

	2014			2013
Net revenues	$	44,495		$	34,106
Net loss		(2,892	)		(4,430	)
Net loss per share - basic and diluted	$	(0.08	)	$	(0.17	)

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Note 8 - Business Combination (Details) - Components and Estimated Useful Lives of Acquired Intangible Assets (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Patented Technology [Member] | Zxy Sport Tracking AS [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	$ 2,300
Estimated useful life	15 years
Patented Technology [Member] | WeatherOne Transaction [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	400
Estimated useful life	15 years
Trade Names [Member] | Zxy Sport Tracking AS [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	300
Estimated useful life	15 years
Trade Names [Member] | WeatherOne Transaction [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	100
Estimated useful life	15 years
Supplier Relationships [Member] | WeatherOne Transaction [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	400
Estimated useful life	15 years
Zxy Sport Tracking AS [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	2,600
WeatherOne Transaction [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	$ 900

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Note 6 - Product Warranty (Details) - Movement in the Warranty Reserve (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Movement in the Warranty Reserve [Abstract]
Balance at beginning of period	$ 126	$ 65	$ 118	$ 50
Provisions		55	194	125
Warranty services provided, net	(87)	(25)	(273)	(80)
	$ 39	$ 95	$ 39	$ 95

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Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net loss	$ (2,555)	$ (1,047)	$ (2,819)	$ (4,041)
Other comprehensive income (loss):
Cumulative translation adjustment	(475)	92	(503)	162
Comprehensive loss	(3,030)	(955)	(3,322)	(3,879)
Less: Comprehensive income attributable to Non-controlling interests	5	30	36	38
Comprehensive loss attributable to ChyronHego Corporation	$ (3,035)	$ (985)	$ (3,358)	$ (3,917)

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Note 4 - Long-term Debt

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

4.            LONG-TERM DEBT

Long-term debt consists of the following (in thousands):

	September 30,		December 31,
	2014		2013
Revolving credit facilities - Europe	$	829	$	933
Note payable - Europe		867		921
Terms loans - Europe		32		355
Other		118		95
		1,846		2,304
Less: portion due within one year		1,113		1,532
Other	$	733	$	772

Revolving credit facilities - Europe

We have revolving credit facilities associated with our European operations that total $1.2 million of which $0.8 million is outstanding at September 30, 2014. The revolving credit facilities have expiration dates of December 31, 2014 and automatically renew for twelve month periods, unless notified by the lender ninety days prior to expiration. The interest rate on these revolving credit facilities is 5.95%. The revolving credit agreements are collateralized by the assets of certain European subsidiaries of the Company.

Note payable - Europe

In connection with the acquisition of Granvideo AB in 2013, the Company issued a note to the previous shareholder of Granvideo in the principal amount of $1.2 million with a maturity date of December 31, 2017. The note does not bear interest and accordingly was recorded at an original discounted amount of $1.04 million. The Company made principal payments of $0.06 million on September 1, 2013 and $0.1 million on November 15, 2013, and is required to make four equal annual payments of $0.26 million on December 31 of each year from 2014 to 2017. The principal balance at September 30, 2014 was $0.9 million.

Term loans - Europe

In addition, we have two term loans with European lenders that total $0.03 million. These term loans require principal payments totaling $8 thousand per month and bear interest at rates that range between 7.45% and 7.75% and will mature in 2014 and 2015.

Revolving line of credit - US

In November 2013, the Company entered into a two-year $4.0 million revolving line of credit (the "Revolver") with Silicon Valley Bank ("SVB"). Borrowings on the Revolver will be based on 80% of eligible accounts receivable. At September 30, 2014, available borrowings under the Revolver were $4.0 million but no borrowings were outstanding. The Company is also required to maintain an adjusted quick ratio ("AQR") of at least 1.25 to 1.0, measured at each calendar month-end. Additionally, if the Company's AQR falls below 1.5x at any month-end, then any borrowings will be repaid by SVB applying collections to reduce the revolving loan balance on a daily basis, until such time as the month-end AQR is again 1.5x or greater. If the AQR at month-end is 1.5x or greater, the Company will maintain a static loan balance and all collections will be deposited into the Company's operating account.

The Revolver will bear interest at a floating annual rate equal to SVB's prime rate ("Prime") +1.25%. If the Company's AQR falls below 1.5x at any month-end, the interest rate will be Prime +1.75%. In connection with the Revolver, the Company was required to pay the outstanding balance on its previously outstanding term loan which was $0.4 million on the closing date. The original term loan was being repaid over 30 months and was subject to interest at Prime + 2.25%.

As is usual and customary in such lending agreements, the Revolver also contains certain non-financial requirements, such as required periodic reporting to the bank and various representations and warranties. The Revolver also restricts the Company's ability to pay dividends without the bank's consent.

The Revolver is collateralized by the assets of the U.S. subsidiaries of the Company, except for (i) its intellectual property rights which are subject to a negative pledge arrangement with the bank, and (ii) any equipment whose purchase is financed by any other lender or lessor, solely to the extent the security agreement with such lender or lessor prohibits junior liens on such equipment, and only until the lien held by such lender or lessor is terminated or released with respect to such equipment.

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Note 9 - Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2014

Disclosure Text Block [Abstract]

Comprehensive Income (Loss) [Table Text Block]

	Foreign						Accumulated
	Currency			Pension			Other
	Translation			Benefit			Comprehensive
	Adjustment			Costs			Income (Loss)
January 1, 2014	$	131		$	(552	)	$	(421	)
Change for period		(503	)		-			(503	)
Amounts re-classed from accumulated other comprehensive income (loss)		-			-			-
September 30, 2014	$	(372	)	$	(552	)	$	(924	)

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Note 5 - Benefit Plans (Details) (USD $) Share data in Thousands, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013
Compensation and Retirement Disclosure [Abstract]
Defined Benefit Plan, Contributions by Employer	$ 100,000
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year	300,000
Stock Issued During Period, Shares, Employee Benefit Plan (in Shares)		70	174
Stock Issued During Period, Value, Employee Benefit Plan		$ 162,000	$ 179,000

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Note 2 - Long-Term Incentive Plans (Tables)

9 Months Ended

Sep. 30, 2014

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

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

	Nine Months
	Ended September 30,
	2014			2013
Expected volatility		78.78	%		76.23	%
Risk-free interest rate		1.91	%		1.06	%
Expected dividend yield		0.00	%		0.00	%
Expected life (in years)		6.0			6.0
Estimated fair value per option granted	$	1.70		$	0.87

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

	Number of Options
Outstanding at January 1, 2014		5,994,788
Granted		866,250
Exercised		(665,597	)
Forfeited and cancelled		(73,438	)
Outstanding at September 30, 2014		6,122,003

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

	Shares
Non-vested at January 1, 2014		-
Granted		139,839
Forfeited and cancelled		(27,956	)
Vested		(14,036	)
Non-vested at September 30, 2014		97,847

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

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2014		2013		2014		2013
Cost of sales	$	31	$	2	$	80	$	30
Research and development		128		35		331		189
Selling, general and administrative		221		220		571		2,422
	$	380	$	257	$	982	$	2,641