Assets not uploading images

The assets app is not uploading images. There is a progress bar and then the image fails to show up in the thumbnail view. Image size 1555px tried PNG and JPG.

Your Diagnostic Report

Debug Message
SELECT u.*, r.* FROM perch2_users u, perch2_user_roles r WHERE u.roleID=r.roleID AND u.userEnabled=1 AND u.userID=1 AND u.userHash='41d5af23ee4cf591f7e403758c53f33b' LIMIT 1
UPDATE perch2_users SET userHash='99f80fcc5a0c47f455d8edd4cef53beb' WHERE userID=1
SELECT p.privKey FROM perch2_user_privileges p
SELECT * FROM (SELECT DISTINCT settingID, settingValue FROM perch2_settings WHERE userID=1 OR userID=0 ORDER BY userID DESC) AS settings GROUP BY settingID
Image folder writable? 1
SELECT DISTINCT settingID, settingValue FROM perch2_settings WHERE userID=0
Queries: 6
Memory: 1.7086

Your template

perch_content('splash');

Assets admin page report

Debug Message
SELECT u.*, r.* FROM perch2_users u, perch2_user_roles r WHERE u.roleID=r.roleID AND u.userEnabled=1 AND u.userID=1 AND u.userHash='5e0f9d821abafc3218be16d7c6afef0e' LIMIT 1
UPDATE perch2_users SET userHash='acf6ce4cfc9d25d109c4ae25d570852d' WHERE userID=1
SELECT p.privKey FROM perch2_user_privileges p
SELECT * FROM (SELECT DISTINCT settingID, settingValue FROM perch2_settings WHERE userID=1 OR userID=0 ORDER BY userID DESC) AS settings GROUP BY settingID
SELECT SQL_CALC_FOUND_ROWS DISTINCT r1.*, r2.resourceFile AS thumb, r2.resourceWidth AS thumbWidth, r2.resourceHeight AS thumbHeight, r2.resourceDensity AS thumbDensity FROM perch2_resources r1 LEFT OUTER JOIN perch2_resources r2 ON r2.resourceParentID=r1.resourceID AND r2.resourceKey='thumb' AND r2.resourceAWOL!=1 WHERE r1.resourceKey='orig' AND r1.resourceAWOL=0 ORDER BY r1.resourceUpdated DESC, r1.resourceID DESC LIMIT 0, 30
SELECT FOUND_ROWS() AS `count`
SELECT DISTINCT resourceType FROM perch2_resources WHERE resourceAWOL=0 AND resourceType !="" ORDER BY resourceType ASC
SELECT DISTINCT resourceBucket FROM perch2_resources WHERE resourceAWOL=0 AND resourceType !="" ORDER BY resourceType ASC
Queries: 9
Memory: 1.9875