Document_And_Entity_Informatio
Document And Entity Information (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Nov. 13, 2013 | Jun. 30, 2012 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'BIO KEY INTERNATIONAL INC | ' | ' |
Document Type | 'S-1 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 115,842,315 | ' |
Entity Public Float | ' | ' | $5,287,670 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0001019034 | ' | ' |
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 | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash and cash equivalents | $225,328 | $83,989 | $43,437 |
Accounts receivable, net of allowance for doubtful accounts of $20,526 at September 30, 2013, $20,526 at December 31, 2012 and $397,526 at December 31, 2011 | 95,851 | 604,784 | 587,346 |
Due from factor | 9,910 | 189,904 | ' |
Inventory | 5,680 | 4,186 | 8,238 |
Prepaid expenses and other | 47,732 | 25,088 | 58,920 |
Total current assets | 384,501 | 907,951 | 697,941 |
Equipment and leasehold improvements, net | 29,361 | 24,267 | 52,870 |
Deferred financing costs | 95,426 | ' | ' |
Deposits and other assets | 8,712 | 8,712 | 8,712 |
Intangible assets—less accumulated amortization | 187,458 | 195,911 | 207,180 |
Total non-current assets | 320,957 | 228,890 | 268,762 |
TOTAL ASSETS | 705,458 | 1,136,841 | 966,703 |
LIABILITIES | ' | ' | ' |
Accounts payable | 441,823 | 931,276 | 687,441 |
Accrued liabilities | 412,426 | 593,599 | 675,833 |
Deferred revenue | 302,015 | 508,520 | 527,092 |
Note payable – related party | ' | 321,428 | 346,428 |
Total current liabilities | 1,156,264 | 2,354,823 | 2,236,794 |
Deferred revenue, net of current portion | ' | ' | 1,000 |
Note Payable | 497,307 | ' | ' |
Total non-current liabilities | 497,307 | ' | 1,000 |
TOTAL LIABILITIES | 1,653,571 | 2,354,823 | 2,237,794 |
STOCKHOLDERS’ DEFICIT: | ' | ' | ' |
Common stock — authorized, 170,000,000 shares; issued and outstanding; 90,782,912, 78,155,413, and 78,155,413 of $.0001 par value at September 30, 2013, December 31, 2012 and December 31, 2011 | 9,078 | 7,815 | 7,815 |
Additional paid-in capital | 52,984,194 | 51,062,624 | 51,012,782 |
Accumulated deficit | -53,941,385 | -52,288,421 | -52,291,688 |
TOTAL STOCKHOLDERS’ DEFICIT | -948,113 | -1,217,982 | -1,271,091 |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $705,458 | $1,136,841 | $966,703 |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Accounts receivable, allowance for doubtful accounts (in Dollars) | $20,526 | $20,526 | $397,526 | $11,526 |
Common stock, shares authorized | 170,000,000 | 170,000,000 | 170,000,000 | ' |
Common stock, shares issued | 90,782,912 | 78,155,413 | 78,155,413 | ' |
Common stock, shares outstanding | 90,782,912 | 78,155,413 | 78,155,413 | ' |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 | $0.00 | ' |
Statements_of_Operations
Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenues | ' | ' | ' | ' | ' | ' |
Services | $246,760 | $151,044 | $781,172 | $714,212 | $1,094,731 | $848,483 |
License fees and other | 184,816 | 258,875 | 877,304 | 1,638,847 | 2,741,162 | 2,660,321 |
431,576 | 409,919 | 1,658,476 | 2,353,059 | 3,835,893 | 3,508,804 | |
Costs and other expenses | ' | ' | ' | ' | ' | ' |
Cost of services | 47,531 | 18,479 | 116,395 | 166,161 | 221,027 | 159,223 |
Cost of license fees and other | 55,439 | 80,788 | 199,353 | 256,321 | 350,706 | 651,236 |
102,970 | 99,267 | 315,748 | 422,482 | 571,733 | 810,459 | |
Gross Profit | 328,606 | 310,652 | 1,342,728 | 1,930,577 | 3,264,160 | 2,698,345 |
Operating expenses | ' | ' | ' | ' | ' | ' |
Selling, general and administrative | 740,725 | 329,881 | 2,054,110 | 1,674,055 | 2,288,903 | 3,036,299 |
Research, development and engineering | 353,583 | 207,186 | 902,558 | 720,603 | 947,371 | 1,116,658 |
1,094,308 | 537,067 | 2,956,668 | 2,394,658 | 3,236,274 | 4,152,957 | |
Operating income (loss) | -765,702 | -226,415 | -1,613,940 | -464,081 | 27,886 | -1,454,612 |
Other income (deductions) | ' | ' | ' | ' | ' | ' |
Interest income | ' | ' | ' | ' | 7 | 95,033 |
Interest expense | -13,942 | -6,194 | -36,113 | -18,449 | -24,626 | -411,527 |
Income taxes | ' | ' | ' | ' | ' | -26,500 |
Net discounts of notes payable | ' | ' | ' | ' | ' | -100,000 |
Franchise tax | -2,910 | ' | -2,910 | ' | ' | ' |
-16,852 | -6,194 | -39,023 | -18,449 | -24,619 | -442,994 | |
Net income (loss) | ($782,554) | ($232,609) | ($1,652,963) | ($482,530) | $3,267 | ($1,897,606) |
Basic and Diluted Income (Loss) per Common Share: (in Dollars per share) | ($0.01) | $0 | ($0.02) | ($0.01) | $0 | ($0.02) |
Weighted Average Shares Outstanding: | ' | ' | ' | ' | ' | ' |
Basic and Diluted (in Shares) | 89,844,062 | 78,155,413 | 86,194,591 | 78,155,413 | 78,155,413 | 78,155,413 |
Statements_of_Stockholders_Def
Statements of Stockholders' (Deficit) Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance as of December 31 at Dec. 31, 2010 | $7,815 | $50,955,602 | ($50,394,082) | $569,335 |
Balance as of December 31 (in Shares) at Dec. 31, 2010 | 78,155,413 | ' | ' | ' |
Share-based compensation | ' | 57,180 | ' | 57,180 |
Net Income (Loss) | ' | ' | -1,897,606 | -1,897,606 |
Balance as of December 31 at Dec. 31, 2011 | 7,815 | 51,012,782 | -52,291,688 | -1,271,091 |
Balance as of December 31 (in Shares) at Dec. 31, 2011 | 78,155,413 | ' | ' | ' |
Share-based compensation | ' | 49,842 | ' | 49,842 |
Net Income (Loss) | ' | ' | 3,267 | 3,267 |
Balance as of December 31 at Dec. 31, 2012 | $7,815 | $51,062,624 | ($52,288,421) | ($1,217,982) |
Balance as of December 31 (in Shares) at Dec. 31, 2012 | 78,155,413 | ' | ' | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ' | ' | ' | ' |
Net income (loss) | ($1,652,963) | ($482,530) | $3,267 | ($1,897,606) |
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | ' | ' | ' | ' |
Allowance for doubtful accounts | ' | -107,000 | -377,000 | 386,000 |
Depreciation | 18,351 | 23,026 | 28,603 | 31,462 |
Intangible assets | 8,453 | 8,452 | 11,269 | 11,270 |
Deferred costs | 11,776 | ' | ' | ' |
Discount on secured debt | ' | ' | ' | 307,932 |
Net discounts of notes payable and note receivable | ' | ' | ' | 100,000 |
Share-based compensation | 62,272 | 45,054 | 49,842 | 57,180 |
Change in assets and liabilities: | ' | ' | ' | ' |
Accounts receivable trade | 508,933 | 421,675 | 359,562 | -622,253 |
Due from factor | 179,994 | -4,749 | -189,904 | ' |
Inventory | -1,494 | 2,612 | 4,051 | 1,538 |
Prepaid expenses and other | -22,644 | 33,166 | 33,833 | 129,995 |
Accounts payable | -489,453 | 226,729 | 243,835 | 507,028 |
Accrued liabilities | -181,172 | 54,276 | -82,234 | 221,925 |
Deferred revenue | -206,505 | -156,583 | -19,572 | 242,418 |
Net cash provided by (used for) operating activities | -1,764,452 | 64,128 | 65,552 | -523,111 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' | ' |
Proceeds from payment of note receivable | ' | ' | ' | 3,350,000 |
Capital expenditures | -23,446 | ' | ' | -56,204 |
Net cash provided by investing activities | -23,446 | ' | ' | 3,293,796 |
CASH FLOW FROM FINANCING ACTIVITIES: | ' | ' | ' | ' |
Issuance of common stock | 1,952,693 | ' | ' | ' |
Repayment of notes payable | ' | ' | -25,000 | -3,612,135 |
Repayment of notes payable - related party | -321,428 | ' | ' | ' |
Preferred stock dividend paid | ' | ' | ' | -125,209 |
Proceeds from issuance of Note Payable | 497,307 | ' | ' | ' |
Costs to issue common stock | -142,133 | ' | ' | ' |
Financing costs for Note Payable | -57,202 | ' | ' | ' |
Net cash used for financing activities | 1,929,237 | ' | -25,000 | -3,737,344 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 141,339 | 64,128 | 40,552 | -966,659 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 83,989 | 43,437 | 43,437 | 1,010,096 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 225,328 | 107,565 | 83,989 | 43,437 |
Cash paid for: | ' | ' | ' | ' |
Interest | 11,991 | ' | ' | 80,286 |
Income taxes | ' | ' | 41,169 | 12,393 |
Issuance of warrants for deferred financing costs and equity raise | $89,637 | ' | ' | ' |
Note_A_The_Company_and_Summary
Note A - The Company and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Business Description and Accounting Policies [Text Block] | ' | ||||||||||||||||
NOTE A —THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
Nature of Business | |||||||||||||||||
The Company, founded in 1993, develops and markets proprietary fingerprint identification biometric technology and software solutions. We also deliver advanced identification solutions and information services to law enforcement departments, public safety agencies and other government and private sector customers. Our mobile wireless technology provides first responders with critical, reliable, real-time data and images from local, state and national databases. | |||||||||||||||||
Basis of Presentation | |||||||||||||||||
We have incurred significant losses to date, and at December 31, 2012, we had an accumulated deficit of approximately $52 million. In addition, broad commercial acceptance of our technology is critical to the Company’s success and ability to generate future revenues. At December 31, 2012, our total cash and cash equivalents were approximately $84,000, as compared to approximately $43,000 at December 31, 2011. | |||||||||||||||||
As discussed below, the Company has financed itself in the past through access to the capital markets by issuing secured and convertible debt securities, convertible preferred stock, common stock, and recently through factoring receivables. We currently require approximately $385,000 per month to conduct our operations, a monthly amount that we have been unable to achieve through revenue generation. | |||||||||||||||||
If the Company is unable to generate sufficient revenue to meet our goals, we will need to obtain additional third-party financing to (i) conduct the sales, marketing and technical support necessary to execute our plan to substantially grow operations, increase revenue and serve a significant customer base; and (ii) provide working capital. No assurance can be given that any form of additional financing will be available on terms acceptable to the Company, that adequate financing will be obtained by the Company in order to meet its needs, or that such financing would not be dilutive to existing shareholders. | |||||||||||||||||
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern, and assumes continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The matters described in the preceding paragraphs raise substantial doubt about the Company’s ability to continue as a going concern. Recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, and become profitable in its future operations. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. | |||||||||||||||||
Summary of Significant Accounting Policies | |||||||||||||||||
A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: | |||||||||||||||||
1. Basis of Consolidation | |||||||||||||||||
The accompanying consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiary (collectively, the “Company”). Intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||||||
2. Use of Estimates | |||||||||||||||||
Our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP) as set forth in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) and consider the various staff accounting bulletins and other applicable guidance issued by the U.S. Securities and Exchange Commission (SEC). These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent there are material differences between these estimates, judgments or assumptions and actual results, our consolidated financial statements will be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting among available alternatives would not produce a materially different result. | |||||||||||||||||
3. Revenue Recognition | |||||||||||||||||
Revenues from software licensing are recognized in accordance with ASC 985-605, “Software Revenue Recognition. Accordingly, revenue from software licensing is recognized when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. | |||||||||||||||||
The Company intends to enter into arrangements with end users for items which may include software license fees, and services or various combinations thereof. For each arrangement, revenues will be recognized when evidence of an agreement has been documented, the fees are fixed or determinable, collection of fees is probable, delivery of the product has occurred and no other significant obligations remain. | |||||||||||||||||
Multiple-Element Arrangements: For multiple-element arrangements, the Company applies the residual method in accordance with ASC 985-605. The residual method requires that the portion of the total arrangement fee attributable to the undelivered elements be deferred based on its VSOE of fair value and subsequently recognized as the service is delivered. The difference between the total arrangement fee and the amount deferred for the undelivered elements is recognized as revenue related to the delivered elements, which is generally the software license. VSOE of fair value for all elements in an arrangement is based upon the normal pricing for those products and services when sold separately. VSOE of fair value for support services is additionally determined by the renewal rate in customer contracts. The Company has established VSOE of fair value for support as well as consulting services. | |||||||||||||||||
License Revenues: Amounts allocated to license revenues are recognized at the time of delivery of the software and all other revenue recognition criteria discussed above have been met. | |||||||||||||||||
Revenue from licensing software, which requires significant customization and modification, is recognized using the percentage of completion method, based on the hours of effort incurred by the Company in relation to the total estimated hours to complete. In instances where third party hardware, software or services form a significant portion of a customer’s contract, the Company recognizes revenue for the element of software customization by the percentage of completion method described above. Otherwise, third party hardware, software, and services are recognized upon shipment or acceptance as appropriate. If the Company makes different judgments or utilizes different estimates of the total amount of work expected to be required to customize or modify the software, the timing and revenue recognition, from period to period, and the margins on the project in the reporting period, may differ materially from amounts reported. Anticipated contract losses are recognized as soon as they become known and are estimable. | |||||||||||||||||
Service Revenues: Revenues from services are comprised of maintenance and consulting and implementation services. Maintenance revenues include providing for unspecified when-and-if available product updates and customer telephone support services, and are recognized ratably over the term of the service period. Consulting services are generally sold on a time-and-materials basis and include a range of services including installation of software and assisting in the design of interfaces to allow the software to operate in customized environments. Services are generally separable from other elements under the arrangement since performance of the services are not essential to the functionality of any other element of the transaction and are described in the contract such that the total price of the arrangement would be expected to vary as the result of the inclusion or exclusion of the services. Revenues from services are generally recognized as the services are performed. | |||||||||||||||||
The Company provides customers, free of charge or at a minimal cost, testing kits which potential licensing customers may use to test compatibility/acceptance of the Company’s technology with the customer’s intended applications. | |||||||||||||||||
Costs and other expenses: Includes professional compensation and other direct contract expenses, as well as costs attributable to the support of client service professional staff, depreciation and amortization costs related to assets used in revenue-generating activities, and other costs attributable to serving the Company’s client base. Professional compensation consists of payroll costs and related benefits including stock-based compensation and bonuses. Other direct contract expenses include costs directly attributable to client engagements, such as out-of-pocket costs including travel and subsistence for client service professional staff, costs of hardware and software and costs of subcontractors. The allocation of lease and facilities charges for occupied offices is included in costs of service. | |||||||||||||||||
The Company accounts for its warranties under the FASB ASC 450 “Contingencies.” The Company generally warrants that its products are free from defects in material and workmanship for a period of one year from the date of initial receipt by our customers. The warranty does not cover any losses or damage that occurs as a result of improper installation, misuse or neglect or repair or modification by anyone other than the Company or its authorized repair agent. The Company’s policy is to accrue anticipated warranty costs based upon historical percentages of items returned for repair within one year of the initial sale. The Company’s repair rate of products under warranty has been minimal, and a historical percentage has not been established. The Company’s software license agreements generally include certain provisions for indemnifying customers against liabilities if the Company’s software products infringe upon a third party’s intellectual property rights. The Company has not provided for any reserves for warranty liabilities as it was determined to be immaterial. | |||||||||||||||||
4. Cash Equivalents | |||||||||||||||||
Cash equivalents consist of liquid investments with original maturities of three months or less. At December 31, 2012 and 2011, cash equivalents consisted of a money market account. | |||||||||||||||||
5. Accounts Receivable | |||||||||||||||||
Accounts receivable billed and unbilled are carried at original amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful receivables by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received. Accounts receivable at December 31, 2012 and 2011 consisted of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2012 | 2011 | ||||||||||||||||
Accounts receivable | $ | 625,310 | $ | 984,872 | |||||||||||||
Allowance for doubtful accounts | (20,526 | ) | (397,526 | ) | |||||||||||||
Accounts receivable, net allowances for doubtful accounts | 604,784 | 587,346 | |||||||||||||||
The allowance for doubtful accounts for the years ended December 31, 2012 and 2011 is as follows: | |||||||||||||||||
Balance at | Charged to Costs | Deductions From | Balance at | ||||||||||||||
Beginning of Year | and Expenses | Reserves | End of Year | ||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 397,526 | $ | - | $ | 377,000 | $ | 20,526 | |||||||||
Year Ended December 31, 2011 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 11,526 | $ | 386,000 | $ | - | $ | 397,526 | |||||||||
The allowance was set up primarily for one customer whose payments under a contract were behind schedule. $400,000 was collected from the customer in 2012, and subsequently, $150,000 was collected in 2013. The final payment for the balance due under the contract has been approved to be paid, although the funds have not been received as of the filing date. As of the date of the filing, the customer owes approximately $313,000. | |||||||||||||||||
6. Property and Equipment, Intangible Assets and Depreciation and Amortization | |||||||||||||||||
Property and equipment are stated at cost. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over the estimated service lives, principally using straight-line methods. Leasehold improvements are amortized over the shorter of the life of the improvement or the lease term, using the straight-line method. | |||||||||||||||||
The estimated useful lives used to compute depreciation and amortization for financial reporting purposes are as follows: | |||||||||||||||||
Equipment and leasehold improvements | |||||||||||||||||
Equipment (years) | 3 | - | 5 | ||||||||||||||
Furniture and fixtures (years) | 3 | - | 5 | ||||||||||||||
Software (years) | 3 | ||||||||||||||||
Leasehold improvements | life or lease term | ||||||||||||||||
Intangible assets consist of patents. Patent costs are capitalized until patents are awarded. Upon award, such costs are amortized using the straight-line method over their respective economic lives. If a patent is denied, all costs are charged to operations in that year. | |||||||||||||||||
7. Impairment or Disposal of Long Lived Assets, including Intangible Assets | |||||||||||||||||
We review our long-lived assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of such an asset may not be recoverable. Recoverability of these assets is measured by comparison of their carrying amount to the future undiscounted cash flows the assets are expected to generate. If such assets are considered impaired, the impairment to be recognized is equal to the amount by which the carrying value of the assets exceeds their fair value determined by either a quoted market price, if any, or a value determined by utilizing a discounted cash flow technique. In assessing recoverability, we must make assumptions regarding estimated future cash flows and discount factors. If these estimates or related assumptions change in the future, we may be required to record impairment charges. Intangible assets with determinable lives are amortized over their estimated useful lives, based upon the pattern in which the expected benefits will be realized, or on a straight-line basis, whichever is greater. We did not record any impairment charges in any of the years presented. | |||||||||||||||||
8. Advertising Expense | |||||||||||||||||
The Company expenses the costs of advertising as incurred. Advertising expenses for the years ended December 31, 2012 and 2011 were approximately $114,000 and $170,000, respectively. | |||||||||||||||||
9. Deferred Revenue | |||||||||||||||||
Deferred revenue includes customer advances and amounts that have been billed per the contractual terms but have not been recognized as revenue. The majority of these amounts are related to maintenance contracts for which the revenue is recognized ratably over the applicable term, which generally is 12 months from the date the customer accepts the products. | |||||||||||||||||
10. Research and Development Expenditures | |||||||||||||||||
Research and development expenses include costs directly attributable to the conduct of research and development programs primarily related to the development of our software products and improving the efficiency and capabilities of our existing software. Such costs include salaries, payroll taxes, employee benefit costs, materials, supplies, depreciation on research equipment, services provided by outside contractors, and the allocable portions of facility costs, such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services. All costs associated with research and development are expensed as incurred. | |||||||||||||||||
11. Earnings Per Share of Common Stock (“EPS”) | |||||||||||||||||
The Company’s EPS is calculated by dividing net income (loss) applicable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuances of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of convertible notes, when the effect of their inclusion is dilutive. See Note R - Earnings Per Share “EPS”, for additional information. | |||||||||||||||||
12. Accounting for Stock-Based Compensation | |||||||||||||||||
The Company accounts for share based compensation in accordance with the provisions of ASC 718-10, “Compensation — Stock Compensation,” which requires measurement of compensation cost for all stock awards at fair value on date of grant and recognition of compensation over the service period for awards expected to vest. The majority of our share-based compensation arrangements vest over either a three or four year vesting schedule. The Company expenses its share-based compensation under the ratable method, which treats each vesting tranche as if it were an individual grant. The fair value of stock options is determined using the Black-Scholes valuation model, and requires the input of highly subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (the “expected option term”), the estimated volatility of our common stock price over the option’s expected term, the risk-free interest rate over the option’s expected term, and the Company’s expected annual dividend yield. Changes in these subjective assumptions can materially affect the estimate of fair value of stock-based compensation and consequently, the related amount recognized as an expense in the consolidated statements of operations. As required under the accounting rules, we review our valuation assumptions at each grant date and, as a result, are likely to change our valuation assumptions used to value employee stock-based awards granted in future periods. The values derived from using the Black-Scholes model are recognized as expense over the service period, net of estimated forfeitures (the number of individuals that will ultimately not complete their vesting requirements). The estimation of stock awards that will ultimately vest requires significant judgment. We consider many factors when estimating expected forfeitures, including types of awards, employee class, and historical experience. Actual results, and future changes in estimates, may differ substantially from our current estimates. | |||||||||||||||||
The compensation expense recognized under ASC 718 amounted to $49,842 and $57,180 for the years ended December 31, 2012 and 2011 respectively. | |||||||||||||||||
The following table presents share-based compensation expenses for continuing operations included in the Company’s consolidated statements of operations: | |||||||||||||||||
Year ended | |||||||||||||||||
December 31, | |||||||||||||||||
2012 | 2011 | ||||||||||||||||
Selling, general and administrative | $ | 22,502 | $ | 12,054 | |||||||||||||
Research, development and engineering | 27,340 | 45,126 | |||||||||||||||
$ | 49,842 | $ | 57,180 | ||||||||||||||
Valuation Assumptions for Stock Options | |||||||||||||||||
For the years ended December 31, 2012 and 2011, 600,000 and 845,000 stock options were granted, respectively. The fair value of each option was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||||||||
Year ended | |||||||||||||||||
December 31, | |||||||||||||||||
2012 | 2011 | ||||||||||||||||
Risk free interest rate | 0.8 | % | 1.64 | % | |||||||||||||
Expected life of options (in years) | 4.48 | 4.52 | |||||||||||||||
Expected dividends | 0 | % | 0 | % | |||||||||||||
Volatility of stock price | 114 | % | 114 | % | |||||||||||||
The stock volatility for each grant is determined based on the review of the experience of the weighted average of historical daily price changes of the Company’s common stock over the expected option term. The expected term was determined using the simplified method for estimating expected option life, which qualify as “plain-vanilla” options; and the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. | |||||||||||||||||
13. Income Taxes | |||||||||||||||||
The provision for, or benefit from, income taxes includes deferred taxes resulting from the temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from the differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback, carryforward period available under tax law. The Company evaluates, on a quarterly basis whether, based on all available evidence, if it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is more likely than not that the tax benefit of the deferred tax asset will not be realized. The evaluation, as prescribed by ASC 740-10, “Income Taxes,” includes the consideration of all available evidence, both positive and negative, regarding historical operating results including recent years with reported losses, the estimated timing of future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards, and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. Because of the Company’s historical performance and estimated future taxable income, a full valuation allowance has been established. | |||||||||||||||||
The Company accounts for uncertain tax provisions in accordance with ASC 740-10-05 “Accounting for Uncertainty in Income Taxes.” The ASC clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The ASC prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The ASC provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | |||||||||||||||||
14. Recent Accounting Pronouncements | |||||||||||||||||
Management does not believe that any other recently issued, but not yet effective, accounting standard if currently adopted would have a material effect on the accompanying consolidated financial statements. | |||||||||||||||||
Note_B_Factoring
Note B - Factoring | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
Factoring [Abstract] | ' | ||||||||||||
Factoring [Text Block] | ' | ||||||||||||
NOTE B—FACTORING | |||||||||||||
Due from factor consisted of the following as of December 31: | |||||||||||||
Original Invoice | Factored | Factored | |||||||||||
Value | Amount | Balance due | |||||||||||
Year Ended December 31, 2012 | |||||||||||||
Factored accounts receivable | $ | 744,315 | $ | 554,411 | $ | 189,904 | |||||||
Year Ended December 31, 2011 | |||||||||||||
Factored accounts receivable | $ | - | $ | - | $ | - | |||||||
As of December 2011, the Company entered into a 24 month accounts receivable factoring arrangement with a financial institution (the “Factor”). Pursuant to the terms of the arrangement, the Company, from time to time shall sell to the Factor certain of its accounts receivable balances on a non-recourse basis for credit approved accounts. The Factor shall then remit 75% of the accounts receivable balance to the Company (the “Advance Amount”), with the remaining balance, less fees to be forwarded to the Company once the Factor collects the full accounts receivable balance from the customer. Factoring fees range from 2.75% to 15% of the face value of the invoice factored, and are determined by the number of days required for collection of the invoice. | |||||||||||||
Note_C_Fair_Values_of_Financia
Note C - Fair Values of Financial Instruments | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Fair Value Disclosures [Abstract] | ' | ' |
Fair Value Disclosures [Text Block] | ' | ' |
9. FAIR VALUES OF FINANCIAL INSTRUMENTS | NOTE C—FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Cash and cash equivalents, accounts and notes receivable, accounts payable, accrued liabilities, and notes payable, are carried at, or approximate, fair value because of their short-term nature. | Cash and cash equivalents, accounts and notes receivable, accounts payable, accrued liabilities, and notes payable, are carried at, or approximate, fair value because of their short-term nature. | |
Note_D_Concentration_of_Risk
Note D - Concentration of Risk | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2013 | Dec. 31, 2012 | |||||||||
Risks and Uncertainties [Abstract] | ' | ' | ||||||||
Concentration Risk Disclosure [Text Block] | ' | ' | ||||||||
10. MAJOR CUSTOMERS AND ACCOUNTS RECEIVABLE | NOTE D—CONCENTRATION OF RISK | |||||||||
The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: | Financial instruments which potentially subject the Company to risk primarily consist of cash and accounts receivables. | |||||||||
For the three months ended September 30, 2013 and 2012, two customers accounted for 43% and one customer accounted for 14% of revenue, respectively. For the nine months ended September 30, 2013 and 2012, three customers accounted for 47% and three customers accounted for 53% of revenue, respectively. | The Company maintains its cash balances in a financial institution in Nevada. All non-interest bearing accounts are fully insured by the Federal Deposit Insurance Corporation (FDIC) through December 31, 2012 and interest-bearing accounts are insured by the FDIC up to $250,000. The Company has not incurred any losses on these accounts. | |||||||||
At September 30, 2013, five customers accounted for 72% of accounts receivable. At December 31, 2012, two customers accounted for 88% of accounts receivable. | The Company extends credit to customers on an unsecured basis in the normal course of business. The Company’s policy is to perform an analysis of the recoverability of its receivables at the end of each reporting period and to establish allowances where appropriate. The Company analyzes historical bad debts and contract losses, customer concentrations, and customer credit-worthiness when evaluating the adequacy of the allowances. | |||||||||
The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, as follows: | ||||||||||
Years Ended December 31, | ||||||||||
2012 | 2011 | |||||||||
Customer A | 31 | % | 15 | % | ||||||
Customer B | 18 | % | — | |||||||
Customer C | * | % | 43 | % | ||||||
* Less than 10% of total revenue | ||||||||||
The Company had certain customers whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: | ||||||||||
As of December 31, | ||||||||||
2012 | 2011 | |||||||||
Customer C | 74 | % | 78 | % | ||||||
Customer D | 14 | % | — | |||||||
* Less than 10% of total accounts receivable | ||||||||||
Note_E_Note_Receivable
Note E - Note Receivable | 12 Months Ended |
Dec. 31, 2012 | |
Receivables [Abstract] | ' |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' |
NOTE E—NOTE RECEIVABLE | |
As consideration for the Asset Sale of its Law Enforcement division (the “Business”) to InterAct911 Mobile Systems, Inc. in 2009, the Buyer paid the Company an aggregate purchase price of approximately $11.3 million. The consideration consisted of cash payments totaling $7.3 million and the issuance of a promissory note (the “Note”) in the original principal amount of $4 million in favor of the Company. The Note earned interest, payable on a quarterly basis, at a rate per annum equal to six percent (6%) compounded annually on the principal sum from time to time outstanding. | |
Effective as of December 30, 2010, the Company entered into an Amendment and Waiver agreement (the “Amendment and Waiver”) with respect to the Note. Under the original terms of the Note, the initial scheduled repayment of principal, equal to $1,334,000, was due to be paid to the Company on December 8, 2010. Pursuant to the Amendment and Waiver, the Company agreed to defer $834,000 of this initial payment into three equal payments due over the course of the first three quarters of 2011, of which the first payment of $278,000 was received in April 2011. | |
In exchange for this deferral, the Buyer made a principal payment of $500,000 (received in December 2010), agreed to increase the interest rate on the deferred amount from six percent to twelve percent, and agreed to have the owner of the Parent, Silkroad Equity LLC, forfeit all of the 8,000,000 warrants previously granted to it by the Company. | |
Effective as of May 19, 2011, the Buyer exercised its option to prepay the balance due of $3,222,000 under the Note. In consideration for the early payment from the Buyer, the Company accepted a $150,000 discount on the principal amount due, of which $50,000 was absorbed by the Secured Promissory Note holders). The total amount received by the Company was $3,113,654 which included principal amount of $3,222,000, interest income of $30,888 and a reimbursement of legal fees incurred of $10,766 net of the discount of $150,000. | |
Note_F_Equipment_and_Leashold_
Note F - Equipment and Leashold Improvements | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
NOTE F—EQUIPMENT AND LEASEHOLD IMPROVEMENTS | |||||||||
Equipment and leasehold improvements consisted of the following as of December 31: | |||||||||
2012 | 2011 | ||||||||
Equipment | $ | 302,052 | $ | 302,052 | |||||
Furniture and fixtures | 99,199 | 99,199 | |||||||
Software | 28,624 | 28,624 | |||||||
Leasehold improvements | 39,975 | 39,975 | |||||||
469,850 | 469,850 | ||||||||
Less accumulated depreciation and amortization | (445,583 | ) | (416,980 | ) | |||||
Total | $ | 24,267 | $ | 52,870 | |||||
Depreciation and amortization were $28,603 and $31,462 for the periods ending December 31, 2012 and 2011, respectively. | |||||||||
Note_G_Intangible_Assets
Note G - Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||||||||||||||||||
NOTE G—INTANGIBLE ASSETS | |||||||||||||||||||||||||
Intangible assets consisted of the following as of December 31: | |||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||
Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | ||||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | ||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Patents and patents pending | $ | 287,248 | $ | (91,337 | ) | $ | 195,911 | $ | 287,248 | $ | (80,068 | ) | $ | 207,180 | |||||||||||
Total | $ | 287,248 | $ | (91,337 | ) | $ | 195,911 | $ | 287,248 | $ | (80,068 | ) | $ | 207,180 | |||||||||||
Aggregate amortization expense for the years ended December 31, 2012 and 2011, was $11,269 and $11,270 respectively. The estimated aggregate amortization expense of intangible assets for the years following December 31, 2012 is approximately $11,270 per year for 2013 through 2017, and $139,561 thereafter. | |||||||||||||||||||||||||
Note_H_Accrued_Laibilites
Note H - Accrued Laibilites | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
NOTE H—ACCRUED LIABILITIES | |||||||||
Accrued liabilities consisted of the following as of December 31: | |||||||||
2012 | 2011 | ||||||||
Compensation | $ | 243,049 | $ | 227,579 | |||||
Compensated absences | 133,535 | 159,949 | |||||||
Dividends payable (see Note K) | 3,435 | 3,435 | |||||||
Interest payable – related party (Note K) | 47,935 | 23,309 | |||||||
Accrued legal and accounting fees | 84,954 | 111,300 | |||||||
Income taxes (see Note P) | - | 26,500 | |||||||
Other | 80,691 | 123,761 | |||||||
Total | $ | 593,599 | $ | 675,833 | |||||
Note_I_Related_Party
Note I - Related Party | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Related Party Transactions [Abstract] | ' | ' |
Related Party Transactions Disclosure [Text Block] | ' | ' |
7. RELATED PARTY | NOTE I—RELATED PARTY | |
Consulting Arrangement with Thomas J. Colatosti | Consulting Arrangement with Thomas J. Colatosti (“Colatosti”) | |
In connection with his appointment to the Board of Directors in September 2002, and as acting Chief Financial Officer from November 2008 to December 2009, the Company had entered into a number of consulting arrangements with Mr. Colatosti. Under the most recent arrangement, which expired on December 31, 2011, Mr. Colatosti provided services to the Company and its subsidiary for the two-year term at a rate of $5,000 per month. At both September 30, 2013 and December 31, 2012, Mr. Colatosti is owed $50,000. The balance owed to Colatosti is included in accounts payable. | In connection with his appointment to the Board of Directors in September 2002, and as acting Chief Financial Officer from November 2008 to December 2009, the Company has entered into a number of consulting arrangements with Colatosti. Under the most recent arrangement, which was entered into on January 12, 2010, Mr. Colatosti provided services to the Company and its subsidiary for the two-year term ended December 31, 2011 at a rate of $5,000 per month. | |
Mr. Colatosti has substantial experience in the biometric industry and in addition to his role as the Chairman of the Board of Directors of the Company, provides extensive service to the Company in the areas of strategic planning and corporate finance. For the year ended December 31, 2011, Mr. Colatosti earned $60,000, of which $50,000 remained outstanding and payable at both December 31, 2012 and 2011. The balance owed to Colatosti is included in accounts payable. | ||
Note_J_Deferred_Revenue
Note J - Deferred Revenue | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||
Deferred Revenue Disclosure [Text Block] | ' | ||||||||
NOTE J—DEFERRED REVENUE | |||||||||
The components of deferred revenue are as follows as of December 31: | |||||||||
2012 | 2011 | ||||||||
Current Portion | |||||||||
Maintenance contracts | $ | 496,055 | $ | 335,246 | |||||
Customer deposit | 12,465 | 122,500 | |||||||
Fully deferred systems, installation and acceptance revenue | - | 69,346 | |||||||
508,520 | 527,092 | ||||||||
Long-Term Portion | |||||||||
Maintenance contracts | - | 1,000 | |||||||
Total | $ | 508,520 | $ | 528,092 | |||||
Maintenance contracts include provisions for unspecified when-and-if available product updates and customer telephone support services, and are recognized ratably over the term of the service period. Fully deferred systems, installation and acceptance revenue relates to projects that have been billed per the contractual terms, however because of undelivered elements or acceptance criteria, revenue has not yet been recognized. These amounts are expected to be completed within the next 12 months and are classified as current liabilities. | |||||||||
Long-term maintenance contracts are comprised of multiple year support contracts, and are recognized ratably over the applicable term. | |||||||||
Note_K_Notes_Payable
Note K - Notes Payable | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Debt Disclosure [Abstract] | ' | ' |
Debt Disclosure [Text Block] | ' | ' |
5. NOTE PAYABLE | NOTE K—NOTES PAYABLE | |
The 2010 Exchange Agreement | The 2010 Exchange Agreement | |
Effective as of December 31, 2010, the Company entered into a Securities Exchange Agreement (the “2010 Exchange Agreement”) with Thomas Colatosti (“Colatosti”), the Company’s Chairman of the Board. Pursuant to the 2010 Exchange Agreement, Mr. Colatosti agreed to exchange all of his outstanding shares of Series D Convertible Preferred Stock, including all accrued and unpaid dividends thereon, and the 7% Convertible Promissory Note dated as of December 28, 2009 issued by the Company to Mr. Colatosti in the original principal amount of $64,878 for a new non-convertible 7% Secured Promissory Note in the original principal amount of $350,804 (the “Colatosti Note”). | Effective as of December 31, 2010, the Company entered into a Securities Exchange Agreement (the “2010 Exchange Agreement”) with the Shaar Fund, Ltd. (“Shaar”) and Colatosti. Pursuant to the 2010 Exchange Agreement, Shaar exchanged all of its outstanding shares of the Company’s Series D Convertible Preferred Stock, including all accrued and unpaid dividends thereon, and the 7% Convertible Promissory Note dated as of December 28, 2009 issued by the Company to Shaar in the original principal amount of $673,079 for an installment payment of $500,000 and a new non-convertible 7% Secured Promissory Note in the original principal amount of $3,157,759 (the “Shaar Note”). The installment payment was made in January 2011. Shaar also exchanged all of its existing warrants to purchase the Company’s common stock, exercisable for an aggregate of 5,108,333 shares, for a new five-year warrant to purchase up to an aggregate of 8,000,000 shares of the Company’s common stock at an exercise price of $0.30 per share. In addition, pursuant to the 2010 Exchange Agreement, Mr. Colatosti agreed to exchange all of his outstanding shares of Series D Convertible Preferred Stock, including all accrued and unpaid dividends thereon, and the 7% Convertible Promissory Note dated as of December 28, 2009 issued by the Company to Mr. Colatosti in the original principal amount of $64,878 for a new non-convertible 7% Secured Promissory Note in the original principal amount of $350,804 (the “Colatosti Note”). | |
The principal and interest under the Colatosti Note was scheduled to be repaid by the Company in cash on December 31, 2012. Pursuant to a Note Amendment and Extension Agreement effective as of December 31, 2012, the maturity date of the Colatosti Note was extended to March 31, 2013. In February 2013, the principal balance and accrued interest owing under the Colatosti Note was repaid from the proceeds of the new financing (see Note 6). At September 30, 2013 and December 31, 2012, the amount payable under the Colatosti Note was $0 and $321,428, respectively. | Pursuant to the Exchange Agreement, the Company made a cash payment to Shaar in the amount of $500,000 at the closing of the exchange and also paid approximately $125,209 to Shaar on January 31, 2011 in full satisfaction of the Company’s obligations to Shaar for all accrued and unpaid dividends with respect to the Company’s Series B Convertible Preferred Stock and Series C Convertible Preferred Stock formerly held by Shaar. Effective as of May 20, 2011, the Company exercised its option to prepay the balance due of $3,157,759 owed to Shaar on its Secured Promissory Note. | |
2013 Note Purchase Agreement | Effective as of May 20, 2011, the Company exercised its option to prepay the balance due of $3,157,759 owed to Shaar on its Secured Promissory Note. In consideration of the $150,000 discount granted by the Company for the early payment of the Note Receivable (see “Note E — Note Receivable”), the Company’s Secured Promissory Note holders agreed to effectively absorb $50,000 of the discount, with the remainder borne by the Company. The discount was prorated to both Note holders which reduced the Shaar payment by $45,624 and the principle amount owed on the Colatosti Note by $4,376. The total amount paid by the Company to Shaar was $3,192,421 and included principal of $3,157,759, interest of $80,286 less Shaar’s share of the discount described above. | |
Pursuant to a Note Purchase Agreement (the “InterDigital NPA”) dated February 26, 2013 by and between the Company and DRNC Holdings, Inc. (“DRNC”), the Company issued to DRNC a promissory note in the principal amount of $497,307 (the “InterDigital Note”), which accrues interest at a rate of 7% per annum, with a default rate of 9% per annum while a nonpayment default is continuing. The InterDigital Note matures on December 31, 2015, is secured by a security interest in all of the tangible and intangible assets of the Company, and is subject to acceleration upon an event of default. Under the InterDigital NPA, commencing July 1, 2013, the Company is required to comply with certain financial covenants, including a leverage ratio covenant and an annual limit on capital expenditures other than in the ordinary course of business. A portion of the proceeds from the sale of the InterDigital Note were used to repay the Colatosti Note in full, with the remaining proceeds to be used for other general corporate purposes. At September 30, 2013 the Company was not in compliance with the leverage ratio convenant but no actions were taken by DRNC. At September 30, 2013, the balance due under the InterDigital Note was $497,307. | The principal and interest under the Colatosti Note was scheduled to be repaid by the Company in cash on December 31, 2012. Pursuant to a Note Amendment and Extension Agreement effective as of December 31, 2012, the maturity date of the Colatosti Note was extended to March 31, 2013. The Company’s obligations under the Colatosti Note were secured by substantially all of the Company’s assets. At December 31, 2012 and 2011, note payable was $321,428 and $346,428, respectively. Interest incurred on the Colatosti note amounted to $24,626 and $23,309 for the years ended December 31, 2012 and 2011, respectively. Accrued interest owed amounted to $47,935 and $23,309 at December 31, 2012 and 2011, respectively, and is included in accrued liabilities (see Note H). | |
In connection with the InterDigital NPA and InterDigital Note, the Company incurred costs totaling $57,202. Such costs were capitalized and are being amortized over the term of the InterDigital Note on the effective interest method. | In February 2013, the principal balance and accrued interest owing under the Colatosti Note was repaid from the proceeds of the new financing (see Note S). | |
Note_L_Segment_Information
Note L - Segment Information | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Segment Reporting [Abstract] | ' | ' |
Segment Reporting Disclosure [Text Block] | ' | ' |
8. SEGMENT INFORMATION | NOTE L—SEGMENT INFORMATION | |
The Company has determined that its continuing operations are one discrete segment consisting of biometric products. Geographically, North American sales accounted for approximately 97% and 91% of the Company’s total sales for the three months ended September 30, 2013 and 2012, respectively, and were approximately 97% and 93% of the Company’s total sales for the nine months ended September 30, 2013 and 2012, respectively. | The Company has determined that its continuing operations are one discrete segment consisting of Biometric products. Geographically, North American sales accounted for approximately 93% and 54% of the Company’s total sales for fiscal years 2012 and 2011, respectively. Of the 46% of the 2011 non-North American sales, 43% was sales to Africa. | |
Note_M_Commitments
Note M - Commitments | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Commitments Disclosure [Text Block] | ' | ||||
NOTE M—COMMITMENTS AND CONTINGENCIES | |||||
Operating Leases | |||||
The Company does not own any real estate but conducts operations from three leased premises. These non-cancelable operating leases expire at various dates through 2014. In addition to base rent, the Company pays for property taxes, maintenance, insurance and other occupancy expenses according to the terms of the individual leases. | |||||
Future minimum rental commitments of non-cancelable operating leases are approximately as follows: | |||||
Years ending December 31, | |||||
2013 | $ | 137,870 | |||
2014 | 92,097 | ||||
$ | 229,967 | ||||
Rental expense was approximately $169,000 and $166,000 during 2012 and 2011, respectively. | |||||
Lawsuit | |||||
During August 2012, Blue Spike, LLC filed suit against the Company in the United States District Court for the Eastern District of Texas alleging that the Company infringed one or more claims of U.S. Patents Nos. 7,346,472, 7,660,700, 7,949,494, and 8,214,175. In December 2012, the Company reached an agreement to resolve litigation, which resulted in a dismissal of all claims asserted in this litigation (both against and by the Company) with prejudice. Legal and settlement fees amounted to approximately $208,000. | |||||
Note_N_Equity
Note N - Equity | 9 Months Ended | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ' | |||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ' | |||||||||||||||
6. STOCKHOLDERS’ DEFICIENCY | NOTE N— EQUITY | ||||||||||||||||
Issuances of Common Stock | 1. Redeemable Preferred Stock | ||||||||||||||||
Securities Purchase Agreement dated February 26, 2013 | Within the limits and restrictions provided in the Company’s Certificate of Incorporation, the Board of Directors has the authority, without further action by the shareholders, to issue up to 5,000,000 shares of preferred stock, $.0001 par value per share, in one or more series, and to fix, as to any such series, any dividend rate, redemption price, preference on liquidation or dissolution, sinking fund terms, conversion rights, voting rights, and any other preference or special rights and qualifications. | ||||||||||||||||
Pursuant to a Securities Purchase Agreement dated February 26, 2013 by and between the Company and DRNC (the “InterDigital SPA”), the Company issued to DRNC 4,026,935 shares of its common stock at a purchase price $0.10 per share, for an aggregate purchase price of $402,693. DRNC has anti-dilution rights under the InterDigital SPA that requires the Company to issue additional shares to DRNC on a full-ratchet basis if the Company, within the nine months following February 26, 2013, sells or issues any common stock or common stock equivalents (other than sales or issuances to directors, officers, employees or independent contractors in the ordinary course of business for compensation purposes and stock splits and stock dividends payable in respect of the Company’s common stock) having a purchase, exercise or conversion price per share of less than $0.10. | 2. Common Stock | ||||||||||||||||
Concurrently with the closing of the transactions described above, the Company closed an equity financing with a number of private investors pursuant to a Securities Purchase Agreement (the “Private Investor SPA”). Pursuant to the Private Investor SPA, the Company issued to such investors 5,000,000 shares of its common stock at a purchase price $0.10 per share, for an aggregate purchase price of $500,000. | The Company is authorized to issue 170,000,000 shares of common stock, $.0001 par value per share, of which 78,155,413 were outstanding as of December 31, 2012 and 2011. | ||||||||||||||||
In connection with the share issuances described above, the Company incurred costs of $46,176, which were offset against additional paid-in capital. | Holders of common stock have equal rights to receive dividends when, as and if declared by the Board of Directors, out of funds legally available therefor. Holders of common stock have one vote for each share held of record and do not have cumulative voting rights. | ||||||||||||||||
Securities Purchase Agreement dated July 23, 2013 | Holders of common stock are entitled, upon liquidation of the Company, to share ratably in the net assets available for distribution, subject to the rights, if any, of holders of any preferred stock then outstanding. Shares of common stock are not redeemable and have no preemptive or similar rights. All outstanding shares of common stock are fully paid and nonassessable. | ||||||||||||||||
Pursuant to a Securities Purchase Agreement, dated July 23, 2013, by and between the Company and a number of private and institutional investors (the “July Private Investor SPA”), the Company issued units to such investors consisting of 3,500,006 shares of common stock and 3,500,006 warrants to purchase additional shares of common stock, at a purchase price of $0.30 per unit for an aggregate purchase price of $1,050,000. The Investors have anti-dilution rights under the July Private Investors SPA that require the Company to issue additional shares to Investors on an average-weighted basis if the Company, within the six months following July 23, 2013, sells or issues any common stock or common stock equivalents (other than sales or issuances to directors, officers, employees or independent contractors in the ordinary course of business for compensation purposes and stock splits and stock dividends payable in respect of the Company’s common stock) having a purchase, exercise or conversion price per share of less than $0.30. The warrants have an exercise price of $0.40 per share and term of five years. | On February 26, 2013, the Company entered into an agreement to issue 4,026,935 shares of its common stock at a purchase price $0.10 per share, for an aggregate purchase price of $402,693. Concurrently, the Company closed an equity financing with a number of private and institutional investors and issued 5,000,000 shares of its common stock at a purchase price $0.10 per share, for an aggregate purchase price of $500,000. See Note S below. | ||||||||||||||||
In connection with the share issuances described above, the Company incurred costs of $135,594, including filing costs for the associated Registration Statement filed with the SEC pursuant to the registration rights clause, which were offset against additional paid-in capital. | 3. Warrants | ||||||||||||||||
Employees’ exercise options | The Company has issued warrants to certain creditors, investors, investment bankers and consultants. A summary of warrant activity is as follows: | ||||||||||||||||
During the three and the nine months ended September 30, 2013, 179,998 stock options were exercised resulting in the cashless issuance of 100,558 shares of common stock. | Total Warrants | Weighted | Weighted | Aggregate | |||||||||||||
average | average | intrinsic | |||||||||||||||
Issuances of Stock Options | exercise | remaining | value | ||||||||||||||
price | life | ||||||||||||||||
During the nine months ended September 30, 2013, 2,350,000 stock options were granted. There were no options granted in the three months ended September 30, 2013. Terms of the options issued include the following: term - 7 years, exercise price - $0.174, vesting - 3 years. | (in years) | ||||||||||||||||
Issuances of Warrants | Outstanding, as of December 31, 2010 | 10,261,615 | $ | 0.32 | |||||||||||||
On August 15, 2013, the Company issued 300,000 warrants to an independent contractor for work associated with the InterDigital Note and InterDigital SPA as additional compensation. The warrants have an exercise price of $0.10 per share and term of three years. The Company valued the warrants using the Black Scholes method using the following assumptions: risk free rate of 0.70%, stock price of $0.34, and 134.2% volatility for a total valuation of $89,637. The value of the warrants was allocated to the InterDigital NPA as deferred financing costs and an offset to additional-paid-in-capital for the InterDigital SPA. | Granted | — | — | ||||||||||||||
Exercised | — | — | |||||||||||||||
Derivative Liabilities | Forfeited | — | — | ||||||||||||||
Expired | (2,011,615 | ) | 0.39 | ||||||||||||||
In connection with the issuances of equity instruments or debt, the Company may issue options or warrants to purchase common stock. In certain circumstances, these options or warrants may be classified as liabilities, rather than as equity. In addition, the equity instrument or debt may contain embedded derivative instruments, such as conversion options or listing requirements, which in certain circumstances may be required to be bifurcated from the associated host instrument and accounted for separately as a derivative liability instrument. The Company accounts for derivative liability instruments under the provisions of FASB ASC 815, “Derivatives and Hedging.” | Outstanding, as of December 31, 2011 | 8,250,000 | $ | 0.3 | 3.97 | ||||||||||||
Anti-Dilution Rights - Securities Purchase Agreements dated February 26, 2013 and July 23, 2013 | Granted | — | — | ||||||||||||||
Exercised | — | — | |||||||||||||||
As discussed above, the terms of the Security Purchase Agreements contained anti-dilution rights. The Company determined that the anti-dilution rights were embedded equity-linked components of the common stock issuances, which were closely related to the host equity instruments. Accordingly, no separate accounting of the anti-dilution rights was required. | Forfeited | — | — | ||||||||||||||
Expired | — | — | |||||||||||||||
Outstanding, as of December 31, 2012 | 8,250,000 | $ | 0.3 | 2.97 | — | ||||||||||||
Vested or expected to vest at December 31, 2012 | 8,250,000 | $ | 0.3 | 2.97 | — | ||||||||||||
Exercisable at December 31, 2012 | 8,250,000 | $ | 0.3 | 2.97 | — | ||||||||||||
Note_O_Stock_Options
Note O - Stock Options | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | |||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ' | |||||||||||||||||||||||||||||||
3. SHARE BASED COMPENSATION | NOTE O—STOCK OPTIONS | ||||||||||||||||||||||||||||||||
The following table presents share-based compensation expenses for continuing operations included in the Company’s unaudited interim condensed consolidated statements of operations: | 1999 Stock Option Plan | ||||||||||||||||||||||||||||||||
Three | Three | During 1999, the Board of Directors of the Company adopted the 1999 Stock Option Plan (the 1999 Plan). The 1999 Plan was not presented to stockholders for approval and thus incentive stock options are not available under the plan. Under the 1999 Plan, 2,000,000 shares of common stock are reserved for issuance to employees, officers, directors, and consultants of the Company at exercise prices which may not be below 85% of fair market value. The term of nonstatutory stock options granted may not exceed ten years. Options issued under the Plan vest pursuant to the terms of stock option agreements with the recipients. In the event of a change in control, as defined, all options outstanding vest immediately. The 1999 Plan expired in August 2009. | |||||||||||||||||||||||||||||||
Months | Months | ||||||||||||||||||||||||||||||||
Ended | Ended | 2004 Stock Option Plan | |||||||||||||||||||||||||||||||
September | September | ||||||||||||||||||||||||||||||||
30, | 30, | On October 12, 2004, the Board of Directors of the Company approved the 2004 Stock Option Plan (the 2004 Plan). The 2004 Plan has not yet been presented to stockholders for approval and thus incentive stock options are not available under this plan. Under the terms of this plan, 4,000,000 shares of common stock are reserved for issuance to employees, officers, directors, and consultants of the Company at exercise prices which may not be below 85% of fair market value. The term of stock options granted may not exceed ten years. Options issued under the Plan vest pursuant to the terms of stock option agreements with the recipients. In the event of a change in control, as defined, all options outstanding vest immediately. The Plan expires in October 2014. | |||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Non-Plan Stock Options | |||||||||||||||||||||||||||||||||
Selling, general and administrative | $ | 19,294 | $ | 5,637 | |||||||||||||||||||||||||||||
Research, development and engineering | 2,961 | 1,308 | Periodically, the Company has granted options outside of the 1999 and 2004 Plans to various employees and consultants. In the event of change in control, as defined, certain of the non-plan options outstanding vest immediately. | ||||||||||||||||||||||||||||||
$ | 22,255 | $ | 6,945 | ||||||||||||||||||||||||||||||
Stock Option Activity | |||||||||||||||||||||||||||||||||
Nine Months | Nine Months | ||||||||||||||||||||||||||||||||
Ended | Ended | Information summarizing option activity is as follows: | |||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | Weighted | Aggregate | ||||||||||||||||||||||||||||||
Number of Options | Weighted | average | intrinsic | ||||||||||||||||||||||||||||||
Selling, general and administrative | $ | 50,571 | $ | 19,022 | average | remaining | |||||||||||||||||||||||||||
Research, development and engineering | 11,701 | 26,032 | exercise | life | |||||||||||||||||||||||||||||
$ | 62,272 | $ | 45,054 | 1999 Plan | 2004 Plan | Non Plan | Total | price | (in years) | value | |||||||||||||||||||||||
Outstanding, as of December 31, 2010 | 500,000 | 2,580,689 | 1,329,841 | 4,410,530 | $ | 0.25 | |||||||||||||||||||||||||||
Granted | — | 845,000 | — | 845,000 | 0.14 | ||||||||||||||||||||||||||||
Exercised | — | — | — | — | — | ||||||||||||||||||||||||||||
Forfeited | — | (210,000 | ) | — | (210,000 | ) | 0.14 | ||||||||||||||||||||||||||
Expired | — | (383,853 | ) | (257,265 | ) | (641,118 | ) | 0.36 | |||||||||||||||||||||||||
Outstanding, as of December 31, 2011 | 500,000 | 2,831,836 | 1,072,576 | 4,404,412 | $ | 0.22 | |||||||||||||||||||||||||||
Granted | — | 600,000 | — | 600,000 | 0.09 | ||||||||||||||||||||||||||||
Exercised | — | — | — | — | — | ||||||||||||||||||||||||||||
Forfeited | — | (164,623 | ) | (365,378 | ) | (530,001 | ) | 0.09 | |||||||||||||||||||||||||
Expired | — | (504,941 | ) | (707,198 | ) | (1,212,139 | ) | 0.3 | |||||||||||||||||||||||||
Outstanding, as of December 31, 2012 | 500,000 | 2,762,272 | — | 3,262,272 | 0.16 | 4.21 | $ | 2,325 | |||||||||||||||||||||||||
Vested or expected to vest at December 31, 2012 | 2,972,404 | 0.16 | 4.04 | $ | 2,325 | ||||||||||||||||||||||||||||
Exercisable at December 31, 2012 | 2,230,594 | 0.18 | 3.43 | $ | 2,325 | ||||||||||||||||||||||||||||
The options outstanding and exercisable at December 31, 2012 were in the following exercise price ranges: | |||||||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||||||||
Range of exercise prices | Number of | Weighted | Weighted | Number | Weighted | ||||||||||||||||||||||||||||
shares | average | average | exercisable | average | |||||||||||||||||||||||||||||
exercise | remaining | exercise | |||||||||||||||||||||||||||||||
price | life (in years) | price | |||||||||||||||||||||||||||||||
$ 0.08 | - | 0.21 | 2,852,272 | $ | 0.11 | 4.23 | 1,820,594 | $ | 0.12 | ||||||||||||||||||||||||
0.22 | - | 0.4 | 70,000 | 0.4 | 4.02 | 70,000 | 0.4 | ||||||||||||||||||||||||||
0.41 | - | 0.68 | 340,000 | 0.46 | 4.02 | 340,000 | 0.46 | ||||||||||||||||||||||||||
$ 0.07 | - | 0.68 | 3,262,272 | 2,230,594 | |||||||||||||||||||||||||||||
The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $0.09 as of December 31, 2012, which would have been received by the option holders had all option holders exercised their options as of that date. The total number of in-the-money options exercisable as of December 31, 2012 was 775,000. | |||||||||||||||||||||||||||||||||
The weighted average fair value of options granted during the years ended December 31, 2012 and 2011 was $0.05 and $0.11 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2012 and 2011 was $0. The total fair value of shares vested during the years ended December 31, 2012 and 2011 was $70,026 and $52,879 respectively. | |||||||||||||||||||||||||||||||||
As of December 31, 2012 future compensation cost related to nonvested stock options is $47,220 and will be recognized over an estimated weighted average period of 1.55 years. | |||||||||||||||||||||||||||||||||
Note_P_Income_Taxes
Note P - Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
NOTE P—INCOME TAXES | |||||||||
There was no provision for federal or state taxes as at December 31, 2012. The provision for income taxes as at December 31, 2011 was comprised of federal alternative minimum tax of $16,500 and minimum state taxes of $10,000. | |||||||||
The Company has deferred taxes due to income tax credits, net operating loss carryforwards, and the effect of temporary differences between the carrying values of certain assets and liabilities for financial reporting and income tax purposes. Significant components of deferred taxes are as follows at December 31: | |||||||||
2012 | 2011 | ||||||||
Current asset: | |||||||||
Accrued compensation | $ | 128,000 | $ | 119,000 | |||||
Accounts receivable allowance | 8,000 | 156,000 | |||||||
Non-current asset (liability): | |||||||||
Stock-based compensation | 336,000 | — | |||||||
Basis differences in fixed assets | (10,000 | ) | (21,000 | ) | |||||
Basis differences in intangible assets | (77,000 | ) | 31,000 | ||||||
Net operating loss carryforwards | 16,143,000 | 15,912,000 | |||||||
Valuation allowances | (16,528,000 | ) | (16,197,000 | ) | |||||
$ | — | $ | — | ||||||
The Company has a valuation allowance against the full amount of its net deferred taxes due to the uncertainty of realization of the deferred tax assets due to operating loss history of the Company. The Company currently provides a valuation allowance against deferred taxes when it is more likely than not that some portion, or all of its deferred tax assets will not be realized. The valuation allowance could be reduced or eliminated based on future earnings and future estimates of taxable income. Similarly, income tax benefits related to stock options exercised have not been recognized in the financial statements. | |||||||||
As of December 31, 2012, the Company has federal net operating loss carryforwards of approximately $44,800,000 subject to expiration between 2018 and 2032. These net operating loss carryforwards are subject to the limitations under Section 382 of the Internal Revenue Code due to changes in the equity ownership of the Company. | |||||||||
A reconciliation of the effective income tax rate on operations reflected in the Statements of Operations to the US Federal statutory income tax rate is presented below. | |||||||||
2012 | 2011 | ||||||||
US Federal statutory income tax rate | 34 | % | 34 | % | |||||
Permanent differences | 831 | (4 | ) | ||||||
Alternative minimum tax | — | 1 | |||||||
Effect of net operating loss | (865 | ) | (30 | ) | |||||
Effective tax rate | — | % | 1 | % | |||||
The Company has not been audited by the Internal Revenue Service (“IRS”) or any states in connection with income taxes. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The periods from 2009 through 2012 remain open to examination by the IRS and state jurisdictions. The Company believes it is not subject to any tax audit risk beyond those periods. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any significant interest expense recognized during the years ended December 31, 2012 and 2011. | |||||||||
Note_Q_Profit_Sharing_Plan
Note Q - Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
NOTE Q—PROFIT SHARING PLAN | |
The Company has established a savings plan under section 401(k) of the Internal Revenue Code. All employees of the Company, after completing one day of service are eligible to enroll in the 401(k) plan. Participating employees may elect to defer a portion of their salary on a pre-tax basis up to the limits as provided by the IRS Code. The Company is not required to match employee contributions but may do so at its discretion. The Company made no contributions during the years ended December 31, 2012 and 2011. | |
Note_R_Earnings_Per_Share
Note R - Earnings Per Share | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ' | ||||||||||||||||||||||||
Earnings Per Share [Text Block] | ' | ' | ||||||||||||||||||||||||
4. EARNINGS (LOSS) PER SHARE COMMON STOCK (“EPS”) | NOTE R—EARNINGS PER SHARE (EPS) | |||||||||||||||||||||||||
The Company’s basic EPS is calculated using net income (loss) available to common shareholders and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of convertible notes and preferred stock. | The Company’s basic EPS is calculated using net income (loss) available to common shareholders and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of convertible notes and preferred stock. | |||||||||||||||||||||||||
The reconciliation of the numerators of the basic and diluted EPS calculations was as follows for both of the following three and nine month periods ended September 30: | The following table summarizes the securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive even though the exercise price was less than the average market price of the common shares. | |||||||||||||||||||||||||
Three Months ended | Nine Months ended | Years ended December 31, | ||||||||||||||||||||||||
September 30, | September 30, | 2012 | 2011 | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Basic Numerator: | Stock Options | — | 379,865 | |||||||||||||||||||||||
(Loss) available to common stockholders | $ | (782,554 | ) | $ | (232,609 | ) | $ | (1,652,963 | ) | $ | (482,530 | ) | Potentially dilutive securities | — | 379,865 | |||||||||||
Basic Denominator | 89,844,062 | 78,155,413 | 86,194,591 | 78,155,413 | Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares: | |||||||||||||||||||||
Per Share Amount | $ | (0.01 | ) | $ | 0 | $ | (0.02 | ) | $ | (0.01 | ) | |||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||
The following table summarizes the securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive. | 2012 | 2011 | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Stock options | 3,262,272 | 3,087,140 | ||||||||||||||||||||||
September 30, | September 30, | Warrants | 8,250,000 | 8,250,000 | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Total | 11,512,272 | 11,337,140 | ||||||||||||||||||||||||
Potentially dilutive Stock Options | 2,802,392 | - | 2,027,713 | - | ||||||||||||||||||||||
Potentially dilutive Warrants | 817,072 | - | 174,477 | - | ||||||||||||||||||||||
Total | 3,619,464 | - | 2,202,190 | - | ||||||||||||||||||||||
Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Stock options | 410,000 | 4,575,749 | 410,000 | 4,575,749 | ||||||||||||||||||||||
Warrants | 3,500,006 | 8,250,000 | 11,750,006 | 8,250,000 | ||||||||||||||||||||||
Total | 3,910,006 | 12,825,749 | 12,160,006 | 12,825,749 | ||||||||||||||||||||||
Note_S_Subsequent_Events
Note S - Subsequent Events | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Subsequent Events [Abstract] | ' | ' |
Subsequent Events [Text Block] | ' | ' |
11. SUBSEQUENT EVENTS | NOTE S—SUBSEQUENT EVENTS | |
Pursuant to a series of Private Investors Securities Purchase Agreements (the “PI SPA”), on October 25, 2013 and November 8, 2013 the Company issued to certain private investors an aggregate of 24,647,337 units consisting of 24,647,337 shares of common stock (the “Shares”) and warrants to purchase an additional 24,647,337 shares of our common stock (the “Warrants”) for an aggregate purchase price of $3,697,100. Each unit had a purchase price of $0.15 and consisted of one share of common stock and one Warrant. The Warrants are immediately exercisable at an exercise price of $0.25 per share, have a term of three years, and are exercisable on a cashless basis if at any time following the 9 month anniversary of the issuance date, there is not an effective registration statement covering the public resale of the shares of Common Stock underlying the Warrants. | On February 26, 2013, the Company entered into a number of agreements with affiliates of InterDigital, Inc. (NASDAQ: IDCC) (“InterDigital”) relating to a research and development collaboration arrangement (the “R&D Collaboration”). In connection with this arrangement, affiliates of InterDigital have invested an aggregate of $900,000 in return for newly issued shares of the Company’s common stock (the “InterDigital Equity Investment”) and the Company’s issuance of a senior secured promissory note that will mature December 31, 2015 (the “InterDigital Note”). | |
Investors in the PI SPA have certain anti-dilution rights which require the Company to issue additional shares of common stock to the investors if within the nine months following November 8, 2013, the Company, sells or issues any common stock or common stock equivalents (other than sales or issuances to directors, officers, employees or independent contractors in the ordinary course of business for compensation purposes and stock splits and stock dividends payable in respect of the Company’s common stock) having a purchase, exercise or conversion price per share of less than $0.15. | The InterDigital Equity Investment was made pursuant to a Securities Purchase Agreement dated February 26, 2013 by and between the Company and DRNC Holdings, Inc. (“DRNC”) (the “InterDigital SPA”). Pursuant to the InterDigital SPA, the Company issued 4,026,935 shares of its common stock at a purchase price $0.10 per share, for an aggregate purchase price of $402,693. DRNC has anti-dilution rights under the InterDigital SPA that would require the Company to issue additional shares to DRNC on a full-ratchet basis if the Company, within the nine months following February 26, 2013, sells or issues any common stock or common stock equivalents (other than sales or issuances to directors, officers, employees or independent contractors in the ordinary course of business for compensation purposes and stock splits and stock dividends payable in respect of the Company’s common stock) having a purchase, exercise or conversion price per share less than $0.10. | |
The Shares and shares of common stock underlying the Warrants are subject to a registration rights agreement pursuant to which the Company has agreed to seek registration of the Shares and the shares of common stock underlying the Warrants within 30 days and have such registration statement declared effective within 90 days. | The InterDigital Note was issued pursuant to a Note Purchase Agreement dated February 26, 2013 by and between the Company and DRNC (the “InterDigital NPA”). Pursuant to the InterDigital NPA, the InterDigital Note was issued in a principal amount of $497,307 and bears interest at a rate of 7% per annum, with a default rate of 9% per annum while a nonpayment default is continuing. The InterDigital Note is secured by a security interest in all of the tangible and intangible assets of the Company, and is subject to acceleration upon an event of default. Under the InterDigital NPA, the Company agreed to comply with certain financial covenants, including a leverage ratio covenant and an annual limit on capital expenditures other than in the ordinary course of business. A portion of the proceeds from the sale of the InterDigital Note were used to repay the Colatosti Note (see Note I) in full, with the remaining proceeds to be used for other general corporate purposes. | |
Pursuant to a placement agency letter agreement, the Company paid the placement agent cash commissions equal to 8% of the gross proceeds of the offering, reimbursed the placement agent for its reasonable out of pocket expenses, and issued to the placement agent warrants (the “Placement Agent Warrants”) to purchase an aggregate of 1,971,786 shares of common stock. The Placement Agent Warrants have substantially the same terms as the Warrants issued to the investors, except the Placement Agent Warrants are immediately exercisable on a cashless basis. | Concurrently with the closing of the InterDigital transactions described above, the Company closed an equity financing with a number of private investors (the “Private Investor Investment”) pursuant to a Securities Purchase Agreement dated February 26, 2013 by and between the Company and such private and institutional investors (the “Private Investor SPA”). Pursuant to the Private Investor SPA, the Company issued 5,000,000 shares of its common stock at a purchase price $0.10 per share, for an aggregate purchase price of $500,000. | |
The sales of securities in this offering triggered the anti-dilution rights set forth in the July Private Investor SPA. As a result, in connection with the October 25, 2013 closing, the per share purchase price set forth in the July Private Investor SPA was reduced to $0.2722 resulting in the issuance of 357,452 additional shares of common stock. In connection with the November 8, 2013 closing, the per share purchase price set forth in the July Private Investor SPA was further reduced to $0.2684 resulting in the issuance of 54,614 additional shares of common stock. | The total combination of debt, equity and R&D funding of $1,425,000 at closing was used to repay existing debt (the Colatosti Note as defined in Note L, in full), fund growth initiatives and provide general working capital for the business. The transactions are expected to close on or around the end of the first quarter of 2013, and are not expected to have a material effect on the number of common shares or potential common shares of the Company. | |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Basis of Accounting [Text Block] | ' |
1. BASIS OF PRESENTATION | |
The accompanying unaudited interim condensed consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiary (collectively, the “Company”) and are stated in conformity with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Pursuant to such rules and regulations, certain financial information and footnote disclosures normally included in the financial statements have been condensed or omitted. Significant intercompany accounts and transactions have been eliminated in consolidation. | |
In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all necessary adjustments, consisting only of those of a recurring nature, and disclosures to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented. The balance sheet at December 31, 2012 was derived from the audited financial statements, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America. These unaudited interim condensed consolidated financial statements should be read in conjunction with the financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (the “Form 10-K”), filed with the SEC on April 1, 2013. | |
Recently Issued Accounting Pronouncements | |
On July 18, 2013, the FASB issued Accounting Standards Update No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”). ASU 2013-11 is expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments in this update should be applied prospectively for annual and interim periods beginning after December 15, 2013. The Company is currently evaluating the impact of its pending adoption of ASU 2013-11 on its consolidated financial statements. | |
Management does not believe that any other recently issued, but not yet effective, accounting standard if currently adopted would have a material effect on the accompanying consolidated financial statements. |
Note_2_Liquidity_And_Capital_R
Note 2 - Liquidity And Capital Resouce Matters | 9 Months Ended |
Sep. 30, 2013 | |
Going Concern [Abstract] | ' |
Going Concern [Text Block] | ' |
2. LIQUIDITY AND CAPITAL RESOURCE MATTERS | |
The Company has incurred significant losses to date and at September 30, 2013, had an accumulated deficit of approximately $54 million. In addition, broad commercial acceptance of the Company’s technology is critical to the Company’s success and ability to generate future revenues. At September 30, 2013, the Company’s total cash and cash equivalents were approximately $225,000, as compared to approximately $84,000 at December 31, 2012. | |
The Company has financed itself in the past through access to the capital markets by issuing secured and convertible debt securities, convertible preferred stock, common stock, and through factoring receivables. The Company currently requires approximately $400,000 per month to conduct operations, a monthly amount that it has been unable to achieve through revenue generation. | |
During the nine months ended September 30, 2013, the Company raised proceeds of $2,251,000 net of fees through the issuance of a senior secured promissory note, shares of common stock, and warrants. (See Notes 5 and 6). | |
If the Company is unable to generate sufficient revenue to meet its goals, it will need to obtain additional third-party financing to (i) conduct the sales, marketing and technical support necessary to execute its plan to substantially grow operations, increase revenue and serve a significant customer base; and (ii) provide working capital. No assurance can be given that any form of additional financing will be available on terms acceptable to the Company, that adequate financing will be obtained by the Company, in order to meet its needs, or that such financing would not be dilutive to existing shareholders. | |
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern, and assumes continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The matters described in the preceding paragraphs raise substantial doubt about the Company’s ability to continue as a going concern. Recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, and become profitable in its future operations. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ' | ||||||||||||||||
Basis of Presentation and Significant Accounting Policies [Text Block] | ' | ' | ||||||||||||||||
Basis of Presentation | ||||||||||||||||||
We have incurred significant losses to date, and at December 31, 2012, we had an accumulated deficit of approximately $52 million. In addition, broad commercial acceptance of our technology is critical to the Company’s success and ability to generate future revenues. At December 31, 2012, our total cash and cash equivalents were approximately $84,000, as compared to approximately $43,000 at December 31, 2011. | ||||||||||||||||||
As discussed below, the Company has financed itself in the past through access to the capital markets by issuing secured and convertible debt securities, convertible preferred stock, common stock, and recently through factoring receivables. We currently require approximately $385,000 per month to conduct our operations, a monthly amount that we have been unable to achieve through revenue generation. | ||||||||||||||||||
If the Company is unable to generate sufficient revenue to meet our goals, we will need to obtain additional third-party financing to (i) conduct the sales, marketing and technical support necessary to execute our plan to substantially grow operations, increase revenue and serve a significant customer base; and (ii) provide working capital. No assurance can be given that any form of additional financing will be available on terms acceptable to the Company, that adequate financing will be obtained by the Company in order to meet its needs, or that such financing would not be dilutive to existing shareholders. | ||||||||||||||||||
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern, and assumes continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The matters described in the preceding paragraphs raise substantial doubt about the Company’s ability to continue as a going concern. Recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, and become profitable in its future operations. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. | ||||||||||||||||||
Consolidation, Policy [Policy Text Block] | ' | ' | ||||||||||||||||
Basis of Consolidation | ||||||||||||||||||
The accompanying consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiary (collectively, the “Company”). Intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ' | ||||||||||||||||
Use of Estimates | ||||||||||||||||||
Our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP) as set forth in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) and consider the various staff accounting bulletins and other applicable guidance issued by the U.S. Securities and Exchange Commission (SEC). These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent there are material differences between these estimates, judgments or assumptions and actual results, our consolidated financial statements will be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting among available alternatives would not produce a materially different result. | ||||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ' | ||||||||||||||||
Revenue Recognition | ||||||||||||||||||
Revenues from software licensing are recognized in accordance with ASC 985-605, “Software Revenue Recognition. Accordingly, revenue from software licensing is recognized when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. | ||||||||||||||||||
The Company intends to enter into arrangements with end users for items which may include software license fees, and services or various combinations thereof. For each arrangement, revenues will be recognized when evidence of an agreement has been documented, the fees are fixed or determinable, collection of fees is probable, delivery of the product has occurred and no other significant obligations remain. | ||||||||||||||||||
Multiple-Element Arrangements: For multiple-element arrangements, the Company applies the residual method in accordance with ASC 985-605. The residual method requires that the portion of the total arrangement fee attributable to the undelivered elements be deferred based on its VSOE of fair value and subsequently recognized as the service is delivered. The difference between the total arrangement fee and the amount deferred for the undelivered elements is recognized as revenue related to the delivered elements, which is generally the software license. VSOE of fair value for all elements in an arrangement is based upon the normal pricing for those products and services when sold separately. VSOE of fair value for support services is additionally determined by the renewal rate in customer contracts. The Company has established VSOE of fair value for support as well as consulting services. | ||||||||||||||||||
License Revenues: Amounts allocated to license revenues are recognized at the time of delivery of the software and all other revenue recognition criteria discussed above have been met. | ||||||||||||||||||
Revenue from licensing software, which requires significant customization and modification, is recognized using the percentage of completion method, based on the hours of effort incurred by the Company in relation to the total estimated hours to complete. In instances where third party hardware, software or services form a significant portion of a customer’s contract, the Company recognizes revenue for the element of software customization by the percentage of completion method described above. Otherwise, third party hardware, software, and services are recognized upon shipment or acceptance as appropriate. If the Company makes different judgments or utilizes different estimates of the total amount of work expected to be required to customize or modify the software, the timing and revenue recognition, from period to period, and the margins on the project in the reporting period, may differ materially from amounts reported. Anticipated contract losses are recognized as soon as they become known and are estimable. | ||||||||||||||||||
Service Revenues: Revenues from services are comprised of maintenance and consulting and implementation services. Maintenance revenues include providing for unspecified when-and-if available product updates and customer telephone support services, and are recognized ratably over the term of the service period. Consulting services are generally sold on a time-and-materials basis and include a range of services including installation of software and assisting in the design of interfaces to allow the software to operate in customized environments. Services are generally separable from other elements under the arrangement since performance of the services are not essential to the functionality of any other element of the transaction and are described in the contract such that the total price of the arrangement would be expected to vary as the result of the inclusion or exclusion of the services. Revenues from services are generally recognized as the services are performed. | ||||||||||||||||||
The Company provides customers, free of charge or at a minimal cost, testing kits which potential licensing customers may use to test compatibility/acceptance of the Company’s technology with the customer’s intended applications. | ||||||||||||||||||
Costs and other expenses: Includes professional compensation and other direct contract expenses, as well as costs attributable to the support of client service professional staff, depreciation and amortization costs related to assets used in revenue-generating activities, and other costs attributable to serving the Company’s client base. Professional compensation consists of payroll costs and related benefits including stock-based compensation and bonuses. Other direct contract expenses include costs directly attributable to client engagements, such as out-of-pocket costs including travel and subsistence for client service professional staff, costs of hardware and software and costs of subcontractors. The allocation of lease and facilities charges for occupied offices is included in costs of service. | ||||||||||||||||||
The Company accounts for its warranties under the FASB ASC 450 “Contingencies.” The Company generally warrants that its products are free from defects in material and workmanship for a period of one year from the date of initial receipt by our customers. The warranty does not cover any losses or damage that occurs as a result of improper installation, misuse or neglect or repair or modification by anyone other than the Company or its authorized repair agent. The Company’s policy is to accrue anticipated warranty costs based upon historical percentages of items returned for repair within one year of the initial sale. The Company’s repair rate of products under warranty has been minimal, and a historical percentage has not been established. The Company’s software license agreements generally include certain provisions for indemnifying customers against liabilities if the Company’s software products infringe upon a third party’s intellectual property rights. The Company has not provided for any reserves for warranty liabilities as it was determined to be immaterial. | ||||||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ' | ||||||||||||||||
Cash Equivalents | ||||||||||||||||||
Cash equivalents consist of liquid investments with original maturities of three months or less. At December 31, 2012 and 2011, cash equivalents consisted of a money market account. | ||||||||||||||||||
Receivables, Policy [Policy Text Block] | ' | ' | ||||||||||||||||
Accounts Receivable | ||||||||||||||||||
Accounts receivable billed and unbilled are carried at original amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful receivables by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received. Accounts receivable at December 31, 2012 and 2011 consisted of the following: | ||||||||||||||||||
December 31, | ||||||||||||||||||
2012 | 2011 | |||||||||||||||||
Accounts receivable | $ | 625,310 | $ | 984,872 | ||||||||||||||
Allowance for doubtful accounts | (20,526 | ) | (397,526 | ) | ||||||||||||||
Accounts receivable, net allowances for doubtful accounts | 604,784 | 587,346 | ||||||||||||||||
The allowance for doubtful accounts for the years ended December 31, 2012 and 2011 is as follows: | ||||||||||||||||||
Balance at | Charged to Costs | Deductions From | Balance at | |||||||||||||||
Beginning of Year | and Expenses | Reserves | End of Year | |||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||
Allowance for Doubtful Accounts | $ | 397,526 | $ | - | $ | 377,000 | $ | 20,526 | ||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||
Allowance for Doubtful Accounts | $ | 11,526 | $ | 386,000 | $ | - | $ | 397,526 | ||||||||||
The allowance was set up primarily for one customer whose payments under a contract were behind schedule. $400,000 was collected from the customer in 2012, and subsequently, $150,000 was collected in 2013. The final payment for the balance due under the contract has been approved to be paid, although the funds have not been received as of the filing date. As of the date of the filing, the customer owes approximately $313,000. | ||||||||||||||||||
6. Property and Equipment, Intangible Assets and Depreciation and Amortization | ||||||||||||||||||
Property and equipment are stated at cost. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over the estimated service lives, principally using straight-line methods. Leasehold improvements are amortized over the shorter of the life of the improvement or the lease term, using the straight-line method. | ||||||||||||||||||
The estimated useful lives used to compute depreciation and amortization for financial reporting purposes are as follows: | ||||||||||||||||||
Equipment and leasehold improvements | ||||||||||||||||||
Equipment (years) | 3 | - | 5 | |||||||||||||||
Furniture and fixtures (years) | 3 | - | 5 | |||||||||||||||
Software (years) | 3 | |||||||||||||||||
Leasehold improvements | life or lease term | |||||||||||||||||
Intangible assets consist of patents. Patent costs are capitalized until patents are awarded. Upon award, such costs are amortized using the straight-line method over their respective economic lives. If a patent is denied, all costs are charged to operations in that year. | ||||||||||||||||||
7. Impairment or Disposal of Long Lived Assets, including Intangible Assets | ||||||||||||||||||
We review our long-lived assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of such an asset may not be recoverable. Recoverability of these assets is measured by comparison of their carrying amount to the future undiscounted cash flows the assets are expected to generate. If such assets are considered impaired, the impairment to be recognized is equal to the amount by which the carrying value of the assets exceeds their fair value determined by either a quoted market price, if any, or a value determined by utilizing a discounted cash flow technique. In assessing recoverability, we must make assumptions regarding estimated future cash flows and discount factors. If these estimates or related assumptions change in the future, we may be required to record impairment charges. Intangible assets with determinable lives are amortized over their estimated useful lives, based upon the pattern in which the expected benefits will be realized, or on a straight-line basis, whichever is greater. We did not record any impairment charges in any of the years presented. | ||||||||||||||||||
8. Advertising Expense | ||||||||||||||||||
The Company expenses the costs of advertising as incurred. Advertising expenses for the years ended December 31, 2012 and 2011 were approximately $114,000 and $170,000, respectively. | ||||||||||||||||||
9. Deferred Revenue | ||||||||||||||||||
Deferred revenue includes customer advances and amounts that have been billed per the contractual terms but have not been recognized as revenue. The majority of these amounts are related to maintenance contracts for which the revenue is recognized ratably over the applicable term, which generally is 12 months from the date the customer accepts the products. | ||||||||||||||||||
10. Research and Development Expenditures | ||||||||||||||||||
Research and development expenses include costs directly attributable to the conduct of research and development programs primarily related to the development of our software products and improving the efficiency and capabilities of our existing software. Such costs include salaries, payroll taxes, employee benefit costs, materials, supplies, depreciation on research equipment, services provided by outside contractors, and the allocable portions of facility costs, such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services. All costs associated with research and development are expensed as incurred. | ||||||||||||||||||
11. Earnings Per Share of Common Stock (“EPS”) | ||||||||||||||||||
The Company’s EPS is calculated by dividing net income (loss) applicable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuances of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of convertible notes, when the effect of their inclusion is dilutive. See Note R - Earnings Per Share “EPS”, for additional information. | ||||||||||||||||||
12 | ||||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ' | ||||||||||||||||
Property and Equipment, Intangible Assets and Depreciation and Amortization | ||||||||||||||||||
Property and equipment are stated at cost. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over the estimated service lives, principally using straight-line methods. Leasehold improvements are amortized over the shorter of the life of the improvement or the lease term, using the straight-line method. | ||||||||||||||||||
The estimated useful lives used to compute depreciation and amortization for financial reporting purposes are as follows: | ||||||||||||||||||
Equipment and leasehold improvements | ||||||||||||||||||
Equipment (years) | 3 | - | 5 | |||||||||||||||
Furniture and fixtures (years) | 3 | - | 5 | |||||||||||||||
Software (years) | 3 | |||||||||||||||||
Leasehold improvements | life or lease term | |||||||||||||||||
Intangible assets consist of patents. Patent costs are capitalized until patents are awarded. Upon award, such costs are amortized using the straight-line method over their respective economic lives. If a patent is denied, all costs are charged to operations in that year. | ||||||||||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' | ' | ||||||||||||||||
Impairment or Disposal of Long Lived Assets, including Intangible Assets | ||||||||||||||||||
We review our long-lived assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of such an asset may not be recoverable. Recoverability of these assets is measured by comparison of their carrying amount to the future undiscounted cash flows the assets are expected to generate. If such assets are considered impaired, the impairment to be recognized is equal to the amount by which the carrying value of the assets exceeds their fair value determined by either a quoted market price, if any, or a value determined by utilizing a discounted cash flow technique. In assessing recoverability, we must make assumptions regarding estimated future cash flows and discount factors. If these estimates or related assumptions change in the future, we may be required to record impairment charges. Intangible assets with determinable lives are amortized over their estimated useful lives, based upon the pattern in which the expected benefits will be realized, or on a straight-line basis, whichever is greater. We did not record any impairment charges in any of the years presented. | ||||||||||||||||||
Advertising Costs, Policy [Policy Text Block] | ' | ' | ||||||||||||||||
Advertising Expense | ||||||||||||||||||
The Company expenses the costs of advertising as incurred. Advertising expenses for the years ended December 31, 2012 and 2011 were approximately $114,000 and $170,000, respectively. | ||||||||||||||||||
Revenue Recognition, Deferred Revenue [Policy Text Block] | ' | ' | ||||||||||||||||
Deferred Revenue | ||||||||||||||||||
Deferred revenue includes customer advances and amounts that have been billed per the contractual terms but have not been recognized as revenue. The majority of these amounts are related to maintenance contracts for which the revenue is recognized ratably over the applicable term, which generally is 12 months from the date the customer accepts the products. | ||||||||||||||||||
Research and Development Expense, Policy [Policy Text Block] | ' | ' | ||||||||||||||||
Research and Development Expenditures | ||||||||||||||||||
Research and development expenses include costs directly attributable to the conduct of research and development programs primarily related to the development of our software products and improving the efficiency and capabilities of our existing software. Such costs include salaries, payroll taxes, employee benefit costs, materials, supplies, depreciation on research equipment, services provided by outside contractors, and the allocable portions of facility costs, such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services. All costs associated with research and development are expensed as incurred. | ||||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ' | ||||||||||||||||
Earnings Per Share of Common Stock (“EPS”) | ||||||||||||||||||
The Company’s EPS is calculated by dividing net income (loss) applicable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuances of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of convertible notes, when the effect of their inclusion is dilutive. See Note R - Earnings Per Share “EPS”, for additional information. | ||||||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ' | ||||||||||||||||
Accounting for Stock-Based Compensation | ||||||||||||||||||
The Company accounts for share based compensation in accordance with the provisions of ASC 718-10, “Compensation — Stock Compensation,” which requires measurement of compensation cost for all stock awards at fair value on date of grant and recognition of compensation over the service period for awards expected to vest. The majority of our share-based compensation arrangements vest over either a three or four year vesting schedule. The Company expenses its share-based compensation under the ratable method, which treats each vesting tranche as if it were an individual grant. The fair value of stock options is determined using the Black-Scholes valuation model, and requires the input of highly subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (the “expected option term”), the estimated volatility of our common stock price over the option’s expected term, the risk-free interest rate over the option’s expected term, and the Company’s expected annual dividend yield. Changes in these subjective assumptions can materially affect the estimate of fair value of stock-based compensation and consequently, the related amount recognized as an expense in the consolidated statements of operations. As required under the accounting rules, we review our valuation assumptions at each grant date and, as a result, are likely to change our valuation assumptions used to value employee stock-based awards granted in future periods. The values derived from using the Black-Scholes model are recognized as expense over the service period, net of estimated forfeitures (the number of individuals that will ultimately not complete their vesting requirements). The estimation of stock awards that will ultimately vest requires significant judgment. We consider many factors when estimating expected forfeitures, including types of awards, employee class, and historical experience. Actual results, and future changes in estimates, may differ substantially from our current estimates. | ||||||||||||||||||
The compensation expense recognized under ASC 718 amounted to $49,842 and $57,180 for the years ended December 31, 2012 and 2011 respectively. | ||||||||||||||||||
The following table presents share-based compensation expenses for continuing operations included in the Company’s consolidated statements of operations: | ||||||||||||||||||
Year ended | ||||||||||||||||||
December 31, | ||||||||||||||||||
2012 | 2011 | |||||||||||||||||
Selling, general and administrative | $ | 22,502 | $ | 12,054 | ||||||||||||||
Research, development and engineering | 27,340 | 45,126 | ||||||||||||||||
$ | 49,842 | $ | 57,180 | |||||||||||||||
Valuation Assumptions for Stock Options | ||||||||||||||||||
For the years ended December 31, 2012 and 2011, 600,000 and 845,000 stock options were granted, respectively. The fair value of each option was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: | ||||||||||||||||||
Year ended | ||||||||||||||||||
December 31, | ||||||||||||||||||
2012 | 2011 | |||||||||||||||||
Risk free interest rate | 0.8 | % | 1.64 | % | ||||||||||||||
Expected life of options (in years) | 4.48 | 4.52 | ||||||||||||||||
Expected dividends | 0 | % | 0 | % | ||||||||||||||
Volatility of stock price | 114 | % | 114 | % | ||||||||||||||
The stock volatility for each grant is determined based on the review of the experience of the weighted average of historical daily price changes of the Company’s common stock over the expected option term. The expected term was determined using the simplified method for estimating expected option life, which qualify as “plain-vanilla” options; and the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. | ||||||||||||||||||
13. Income Taxes | ||||||||||||||||||
The provision for, or benefit from, income taxes includes deferred taxes resulting from the temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from the differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback, carryforward period available under tax law. The Company evaluates, on a quarterly basis whether, based on all available evidence, if it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is more likely than not that the tax benefit of the deferred tax asset will not be realized. The evaluation, as prescribed by ASC 740-10, “Income Taxes,” includes the consideration of all available evidence, both positive and negative, regarding historical operating results including recent years with reported losses, the estimated timing of future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards, and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. Because of the Company’s historical performance and estimated future taxable income, a full valuation allowance has been established. | ||||||||||||||||||
The Company accounts for uncertain tax provisions in accordance with ASC 740-10-05 “Accounting for Uncertainty in Income Taxes.” The ASC clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The ASC prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The ASC provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | ||||||||||||||||||
14 | ||||||||||||||||||
Income Tax, Policy [Policy Text Block] | ' | ' | ||||||||||||||||
Income Taxes | ||||||||||||||||||
The provision for, or benefit from, income taxes includes deferred taxes resulting from the temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from the differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback, carryforward period available under tax law. The Company evaluates, on a quarterly basis whether, based on all available evidence, if it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is more likely than not that the tax benefit of the deferred tax asset will not be realized. The evaluation, as prescribed by ASC 740-10, “Income Taxes,” includes the consideration of all available evidence, both positive and negative, regarding historical operating results including recent years with reported losses, the estimated timing of future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards, and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. Because of the Company’s historical performance and estimated future taxable income, a full valuation allowance has been established. | ||||||||||||||||||
The Company accounts for uncertain tax provisions in accordance with ASC 740-10-05 “Accounting for Uncertainty in Income Taxes.” The ASC clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The ASC prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The ASC provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | ||||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ' | ||||||||||||||||
Recently Issued Accounting Pronouncements | Recent Accounting Pronouncements | |||||||||||||||||
On July 18, 2013, the FASB issued Accounting Standards Update No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”). ASU 2013-11 is expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments in this update should be applied prospectively for annual and interim periods beginning after December 15, 2013. The Company is currently evaluating the impact of its pending adoption of ASU 2013-11 on its consolidated financial statements. | Management does not believe that any other recently issued, but not yet effective, accounting standard if currently adopted would have a material effect on the accompanying consolidated financial statements. | |||||||||||||||||
Management does not believe that any other recently issued, but not yet effective, accounting standard if currently adopted would have a material effect on the accompanying consolidated financial statements. |
Note_A_The_Company_and_Summary1
Note A - The Company and Summary of Significant Accounting Policies (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ' | ||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ' | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||
Accounts receivable | $ | 625,310 | $ | 984,872 | ||||||||||||||||||||||
Allowance for doubtful accounts | (20,526 | ) | (397,526 | ) | ||||||||||||||||||||||
Accounts receivable, net allowances for doubtful accounts | 604,784 | 587,346 | ||||||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | ' | ' | ||||||||||||||||||||||||
Balance at | Charged to Costs | Deductions From | Balance at | |||||||||||||||||||||||
Beginning of Year | and Expenses | Reserves | End of Year | |||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Allowance for Doubtful Accounts | $ | 397,526 | $ | - | $ | 377,000 | $ | 20,526 | ||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||
Allowance for Doubtful Accounts | $ | 11,526 | $ | 386,000 | $ | - | $ | 397,526 | ||||||||||||||||||
Property, Plant and Equipment, Estimated Useful Lives | ' | ' | ||||||||||||||||||||||||
Equipment and leasehold improvements | ||||||||||||||||||||||||||
Equipment (years) | 3 | - | 5 | |||||||||||||||||||||||
Furniture and fixtures (years) | 3 | - | 5 | |||||||||||||||||||||||
Software (years) | 3 | |||||||||||||||||||||||||
Leasehold improvements | life or lease term | |||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ' | ||||||||||||||||||||||||
Three | Three | Year ended | ||||||||||||||||||||||||
Months | Months | December 31, | ||||||||||||||||||||||||
Ended | Ended | 2012 | 2011 | |||||||||||||||||||||||
September | September | |||||||||||||||||||||||||
30, | 30, | Selling, general and administrative | $ | 22,502 | $ | 12,054 | ||||||||||||||||||||
2013 | 2012 | Research, development and engineering | 27,340 | 45,126 | ||||||||||||||||||||||
$ | 49,842 | $ | 57,180 | |||||||||||||||||||||||
Selling, general and administrative | $ | 19,294 | $ | 5,637 | ||||||||||||||||||||||
Research, development and engineering | 2,961 | 1,308 | ||||||||||||||||||||||||
$ | 22,255 | $ | 6,945 | |||||||||||||||||||||||
Nine Months | Nine Months | |||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Selling, general and administrative | $ | 50,571 | $ | 19,022 | ||||||||||||||||||||||
Research, development and engineering | 11,701 | 26,032 | ||||||||||||||||||||||||
$ | 62,272 | $ | 45,054 | |||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ' | ||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||
Risk free interest rate | 0.8 | % | 1.64 | % | ||||||||||||||||||||||
Expected life of options (in years) | 4.48 | 4.52 | ||||||||||||||||||||||||
Expected dividends | 0 | % | 0 | % | ||||||||||||||||||||||
Volatility of stock price | 114 | % | 114 | % |
Note_B_Factoring_Tables
Note B - Factoring (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
Note B - Factoring (Tables) [Line Items] | ' | ||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||||||
December 31, | |||||||||||||
2012 | 2011 | ||||||||||||
Accounts receivable | $ | 625,310 | $ | 984,872 | |||||||||
Allowance for doubtful accounts | (20,526 | ) | (397,526 | ) | |||||||||
Accounts receivable, net allowances for doubtful accounts | 604,784 | 587,346 | |||||||||||
Factored Accounts Receivable [Member] | ' | ||||||||||||
Note B - Factoring (Tables) [Line Items] | ' | ||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||||||
Original Invoice | Factored | Factored | |||||||||||
Value | Amount | Balance due | |||||||||||
Year Ended December 31, 2012 | |||||||||||||
Factored accounts receivable | $ | 744,315 | $ | 554,411 | $ | 189,904 | |||||||
Year Ended December 31, 2011 | |||||||||||||
Factored accounts receivable | $ | - | $ | - | $ | - |
Note_D_Concentration_of_Risk_T
Note D - Concentration of Risk (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | ||||||||
Years Ended December 31, | |||||||||
2012 | 2011 | ||||||||
Customer A | 31 | % | 15 | % | |||||
Customer B | 18 | % | — | ||||||
Customer C | * | % | 43 | % | |||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | ' | ||||||||
As of December 31, | |||||||||
2012 | 2011 | ||||||||
Customer C | 74 | % | 78 | % | |||||
Customer D | 14 | % | — |
Note_F_Equipment_and_Leashold_1
Note F - Equipment and Leashold Improvements (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
2012 | 2011 | ||||||||
Equipment | $ | 302,052 | $ | 302,052 | |||||
Furniture and fixtures | 99,199 | 99,199 | |||||||
Software | 28,624 | 28,624 | |||||||
Leasehold improvements | 39,975 | 39,975 | |||||||
469,850 | 469,850 | ||||||||
Less accumulated depreciation and amortization | (445,583 | ) | (416,980 | ) | |||||
Total | $ | 24,267 | $ | 52,870 |
Note_G_Intangible_Assets_Table
Note G - Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||
Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | ||||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | ||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Patents and patents pending | $ | 287,248 | $ | (91,337 | ) | $ | 195,911 | $ | 287,248 | $ | (80,068 | ) | $ | 207,180 | |||||||||||
Total | $ | 287,248 | $ | (91,337 | ) | $ | 195,911 | $ | 287,248 | $ | (80,068 | ) | $ | 207,180 |
Note_H_Accrued_Laibilites_Tabl
Note H - Accrued Laibilites (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | ||||||||
2012 | 2011 | ||||||||
Compensation | $ | 243,049 | $ | 227,579 | |||||
Compensated absences | 133,535 | 159,949 | |||||||
Dividends payable (see Note K) | 3,435 | 3,435 | |||||||
Interest payable – related party (Note K) | 47,935 | 23,309 | |||||||
Accrued legal and accounting fees | 84,954 | 111,300 | |||||||
Income taxes (see Note P) | - | 26,500 | |||||||
Other | 80,691 | 123,761 | |||||||
Total | $ | 593,599 | $ | 675,833 |
Note_J_Deferred_Revenue_Tables
Note J - Deferred Revenue (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | ' | ||||||||
2012 | 2011 | ||||||||
Current Portion | |||||||||
Maintenance contracts | $ | 496,055 | $ | 335,246 | |||||
Customer deposit | 12,465 | 122,500 | |||||||
Fully deferred systems, installation and acceptance revenue | - | 69,346 | |||||||
508,520 | 527,092 | ||||||||
Long-Term Portion | |||||||||
Maintenance contracts | - | 1,000 | |||||||
Total | $ | 508,520 | $ | 528,092 |
Note_M_Commitments_Tables
Note M - Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Years ending December 31, | |||||
2013 | $ | 137,870 | |||
2014 | 92,097 | ||||
$ | 229,967 |
Note_N_Equity_Tables
Note N - Equity (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | ' | |||||||||||||||
Total Warrants | Weighted | Weighted | Aggregate | |||||||||||||
average | average | intrinsic | ||||||||||||||
exercise | remaining | value | ||||||||||||||
price | life | |||||||||||||||
(in years) | ||||||||||||||||
Outstanding, as of December 31, 2010 | 10,261,615 | $ | 0.32 | |||||||||||||
Granted | — | — | ||||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Expired | (2,011,615 | ) | 0.39 | |||||||||||||
Outstanding, as of December 31, 2011 | 8,250,000 | $ | 0.3 | 3.97 | ||||||||||||
Granted | — | — | ||||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Expired | — | — | ||||||||||||||
Outstanding, as of December 31, 2012 | 8,250,000 | $ | 0.3 | 2.97 | — | |||||||||||
Vested or expected to vest at December 31, 2012 | 8,250,000 | $ | 0.3 | 2.97 | — | |||||||||||
Exercisable at December 31, 2012 | 8,250,000 | $ | 0.3 | 2.97 | — |
Note_O_Stock_Options_Tables
Note O - Stock Options (Tables) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | |||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ' | |||||||||||||||||||||||||||||||
Weighted | Aggregate | ||||||||||||||||||||||||||||||||
Number of Options | Weighted | average | intrinsic | ||||||||||||||||||||||||||||||
average | remaining | ||||||||||||||||||||||||||||||||
exercise | life | ||||||||||||||||||||||||||||||||
1999 Plan | 2004 Plan | Non Plan | Total | price | (in years) | value | |||||||||||||||||||||||||||
Outstanding, as of December 31, 2010 | 500,000 | 2,580,689 | 1,329,841 | 4,410,530 | $ | 0.25 | |||||||||||||||||||||||||||
Granted | — | 845,000 | — | 845,000 | 0.14 | ||||||||||||||||||||||||||||
Exercised | — | — | — | — | — | ||||||||||||||||||||||||||||
Forfeited | — | (210,000 | ) | — | (210,000 | ) | 0.14 | ||||||||||||||||||||||||||
Expired | — | (383,853 | ) | (257,265 | ) | (641,118 | ) | 0.36 | |||||||||||||||||||||||||
Outstanding, as of December 31, 2011 | 500,000 | 2,831,836 | 1,072,576 | 4,404,412 | $ | 0.22 | |||||||||||||||||||||||||||
Granted | — | 600,000 | — | 600,000 | 0.09 | ||||||||||||||||||||||||||||
Exercised | — | — | — | — | — | ||||||||||||||||||||||||||||
Forfeited | — | (164,623 | ) | (365,378 | ) | (530,001 | ) | 0.09 | |||||||||||||||||||||||||
Expired | — | (504,941 | ) | (707,198 | ) | (1,212,139 | ) | 0.3 | |||||||||||||||||||||||||
Outstanding, as of December 31, 2012 | 500,000 | 2,762,272 | — | 3,262,272 | 0.16 | 4.21 | $ | 2,325 | |||||||||||||||||||||||||
Vested or expected to vest at December 31, 2012 | 2,972,404 | 0.16 | 4.04 | $ | 2,325 | ||||||||||||||||||||||||||||
Exercisable at December 31, 2012 | 2,230,594 | 0.18 | 3.43 | $ | 2,325 | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | ' | ' | |||||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||||||||
Range of exercise prices | Number of | Weighted | Weighted | Number | Weighted | ||||||||||||||||||||||||||||
shares | average | average | exercisable | average | |||||||||||||||||||||||||||||
exercise | remaining | exercise | |||||||||||||||||||||||||||||||
price | life (in years) | price | |||||||||||||||||||||||||||||||
$ 0.08 | - | 0.21 | 2,852,272 | $ | 0.11 | 4.23 | 1,820,594 | $ | 0.12 | ||||||||||||||||||||||||
0.22 | - | 0.4 | 70,000 | 0.4 | 4.02 | 70,000 | 0.4 | ||||||||||||||||||||||||||
0.41 | - | 0.68 | 340,000 | 0.46 | 4.02 | 340,000 | 0.46 | ||||||||||||||||||||||||||
$ 0.07 | - | 0.68 | 3,262,272 | 2,230,594 | |||||||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ' | |||||||||||||||||||||||||||||||
Three | Three | Year ended | |||||||||||||||||||||||||||||||
Months | Months | December 31, | |||||||||||||||||||||||||||||||
Ended | Ended | 2012 | 2011 | ||||||||||||||||||||||||||||||
September | September | ||||||||||||||||||||||||||||||||
30, | 30, | Selling, general and administrative | $ | 22,502 | $ | 12,054 | |||||||||||||||||||||||||||
2013 | 2012 | Research, development and engineering | 27,340 | 45,126 | |||||||||||||||||||||||||||||
$ | 49,842 | $ | 57,180 | ||||||||||||||||||||||||||||||
Selling, general and administrative | $ | 19,294 | $ | 5,637 | |||||||||||||||||||||||||||||
Research, development and engineering | 2,961 | 1,308 | |||||||||||||||||||||||||||||||
$ | 22,255 | $ | 6,945 | ||||||||||||||||||||||||||||||
Nine Months | Nine Months | ||||||||||||||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Selling, general and administrative | $ | 50,571 | $ | 19,022 | |||||||||||||||||||||||||||||
Research, development and engineering | 11,701 | 26,032 | |||||||||||||||||||||||||||||||
$ | 62,272 | $ | 45,054 |
Note_P_Income_Taxes_Tables
Note P - Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
2012 | 2011 | ||||||||
Current asset: | |||||||||
Accrued compensation | $ | 128,000 | $ | 119,000 | |||||
Accounts receivable allowance | 8,000 | 156,000 | |||||||
Non-current asset (liability): | |||||||||
Stock-based compensation | 336,000 | — | |||||||
Basis differences in fixed assets | (10,000 | ) | (21,000 | ) | |||||
Basis differences in intangible assets | (77,000 | ) | 31,000 | ||||||
Net operating loss carryforwards | 16,143,000 | 15,912,000 | |||||||
Valuation allowances | (16,528,000 | ) | (16,197,000 | ) | |||||
$ | — | $ | — | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
2012 | 2011 | ||||||||
US Federal statutory income tax rate | 34 | % | 34 | % | |||||
Permanent differences | 831 | (4 | ) | ||||||
Alternative minimum tax | — | 1 | |||||||
Effect of net operating loss | (865 | ) | (30 | ) | |||||
Effective tax rate | — | % | 1 | % |
Note_R_Earnings_Per_Share_Tabl
Note R - Earnings Per Share (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ' | ||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ' | ||||||||||||||||||||||||
Three Months ended | Nine Months ended | Years ended December 31, | ||||||||||||||||||||||||
September 30, | September 30, | 2012 | 2011 | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Basic Numerator: | Stock Options | — | 379,865 | |||||||||||||||||||||||
(Loss) available to common stockholders | $ | (782,554 | ) | $ | (232,609 | ) | $ | (1,652,963 | ) | $ | (482,530 | ) | Potentially dilutive securities | — | 379,865 | |||||||||||
Basic Denominator | 89,844,062 | 78,155,413 | 86,194,591 | 78,155,413 | ||||||||||||||||||||||
Per Share Amount | $ | (0.01 | ) | $ | 0 | $ | (0.02 | ) | $ | (0.01 | ) | |||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ' | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Years ended December 31, | ||||||||||||||||||||||||
September 30, | September 30, | 2012 | 2011 | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Stock options | 3,262,272 | 3,087,140 | ||||||||||||||||||||||||
Potentially dilutive Stock Options | 2,802,392 | - | 2,027,713 | - | Warrants | 8,250,000 | 8,250,000 | |||||||||||||||||||
Potentially dilutive Warrants | 817,072 | - | 174,477 | - | ||||||||||||||||||||||
Total | 3,619,464 | - | 2,202,190 | - | Total | 11,512,272 | 11,337,140 | |||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Stock options | 410,000 | 4,575,749 | 410,000 | 4,575,749 | ||||||||||||||||||||||
Warrants | 3,500,006 | 8,250,000 | 11,750,006 | 8,250,000 | ||||||||||||||||||||||
Total | 3,910,006 | 12,825,749 | 12,160,006 | 12,825,749 |
Note_A_The_Company_and_Summary2
Note A - The Company and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2010 | |
Note A - The Company and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Retained Earnings (Accumulated Deficit) (in Dollars) | ($53,941,385) | ' | ($53,941,385) | ' | ($52,288,421) | ($52,291,688) | ($52,288,421) | ' |
Cash and Cash Equivalents, at Carrying Value (in Dollars) | 225,328 | 107,565 | 225,328 | 107,565 | 83,989 | 43,437 | 83,989 | 1,010,096 |
Operational Costs Per Month (in Dollars) | ' | ' | ' | ' | 385,000 | ' | ' | ' |
Allowance for Doubtful Accounts Receivable, Recoveries (in Dollars) | ' | ' | 150,000 | ' | 400,000 | ' | ' | ' |
Advertising Expense (in Dollars) | ' | ' | ' | ' | 114,000 | ' | 170,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '3 years | ' | ' | ' | ' | ' |
Share-based Compensation (in Dollars) | 22,255 | 6,945 | 62,272 | 45,054 | 49,842 | 57,180 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | ' | ' | 2,350,000 | ' | 600,000 | 845,000 | ' | ' |
Discontinued Operations [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Note A - The Company and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation (in Dollars) | ' | ' | ' | ' | $49,842 | $57,180 | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Note A - The Company and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | '3 years | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Note A - The Company and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | '4 years | ' | ' | ' |
Note_A_The_Company_and_Summary3
Note A - The Company and Summary of Significant Accounting Policies (Details) - Summary of Accounts Receivables (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Summary of Accounts Receivables [Abstract] | ' | ' | ' | ' |
Accounts receivable | ' | $625,310 | $984,872 | ' |
Allowance for doubtful accounts | -20,526 | -20,526 | -397,526 | -11,526 |
Accounts receivable, net allowances for doubtful accounts | $95,851 | $604,784 | $587,346 | ' |
Note_A_The_Company_and_Summary4
Note A - The Company and Summary of Significant Accounting Policies (Details) - Allowance for Doubtful Accounts (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | |
Allowance for Doubtful Accounts [Abstract] | ' | ' | ' |
Balance at Beginning of Year | $397,526 | $11,526 | $20,526 |
Charged to Costs and Expenses | ' | 386,000 | ' |
Deductions From Reserves | 377,000 | ' | ' |
Balance at End of Year | $20,526 | $397,526 | $20,526 |
Note_A_The_Company_and_Summary5
Note A - The Company and Summary of Significant Accounting Policies (Details) - Estimated Useful Lives For Depreciation and Amortization | 12 Months Ended |
Dec. 31, 2012 | |
Equipment [Member] | Minimum [Member] | ' |
Equipment and leasehold improvements | ' |
Property, Plant, and Equipment Estimated Useful life | '3 years |
Equipment [Member] | Maximum [Member] | ' |
Equipment and leasehold improvements | ' |
Property, Plant, and Equipment Estimated Useful life | '5 years |
Furniture and Fixtures [Member] | Minimum [Member] | ' |
Equipment and leasehold improvements | ' |
Property, Plant, and Equipment Estimated Useful life | '3 years |
Furniture and Fixtures [Member] | Maximum [Member] | ' |
Equipment and leasehold improvements | ' |
Property, Plant, and Equipment Estimated Useful life | '5 years |
Computer Software, Intangible Asset [Member] | ' |
Equipment and leasehold improvements | ' |
Property, Plant, and Equipment Estimated Useful life | '3 years |
Minimum [Member] | ' |
Equipment and leasehold improvements | ' |
Leasehold improvements | 'life or lease term |
Note_A_The_Company_and_Summary6
Note A - The Company and Summary of Significant Accounting Policies (Details) - Share-Based Compensation Expenses for Continuing Operations (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share Based Compensation | $49,842 | $57,180 |
Selling, General and Administrative Expenses [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share Based Compensation | 22,502 | 12,054 |
Research and Development Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share Based Compensation | $27,340 | $45,126 |
Note_A_The_Company_and_Summary7
Note A - The Company and Summary of Significant Accounting Policies (Details) - Valuation Assumptions for Stock Options | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Valuation Assumptions for Stock Options [Abstract] | ' | ' |
Risk free interest rate | 0.80% | 1.64% |
Expected life of options (in years) | '4 years 175 days | '4 years 189 days |
Expected dividends | 0.00% | 0.00% |
Volatility of stock price | 114.00% | 114.00% |
Note_B_Factoring_Details
Note B - Factoring (Details) | 24 Months Ended |
Dec. 31, 2012 | |
Note B - Factoring (Details) [Line Items] | ' |
Factoring Arrangment Term | '24 months |
Percentage of Accounts Receivable Remitted by Factor | 75.00% |
Minimum [Member] | ' |
Note B - Factoring (Details) [Line Items] | ' |
Factoring Fees, Percent | 2.75% |
Maximum [Member] | ' |
Note B - Factoring (Details) [Line Items] | ' |
Factoring Fees, Percent | 15.00% |
Note_B_Factoring_Details_Due_f
Note B - Factoring (Details) - Due from Factor (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
Due from Factor [Abstract] | ' | ' |
Original Invoice Value | $744,315 | $0 |
Factored Amount | 554,411 | 0 |
Factored Balance due | $189,904 | $0 |
Note_D_Concentration_of_Risk_D
Note D - Concentration of Risk (Details) (USD $) | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
Sales Revenue, Goods, Net [Member] | Sales Revenue, Goods, Net [Member] | Sales Revenue, Goods, Net [Member] | Sales Revenue, Goods, Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Minimum [Member] | Minimum [Member] | ||
Sales Revenue, Goods, Net [Member] | Accounts Receivable [Member] | ||||||||
Note D - Concentration of Risk (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash, FDIC Insured Amount (in Dollars) | $250,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | 10.00% | 43.00% | 14.00% | 47.00% | 53.00% | 72.00% | 88.00% | 10.00% | 10.00% |
Concentration Risk, Customer | ' | 'two | 'one | 'three | 'three | 'five | 'two | ' | ' |
Note_D_Concentration_of_Risk_D1
Note D - Concentration of Risk (Details) - Revenue Concentration Risk by Major Customer | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | ||
Revenue, Major Customer [Line Items] | ' | ' | |
Customer | 10.00% | ' | |
Customer A [Member] | ' | ' | |
Revenue, Major Customer [Line Items] | ' | ' | |
Customer | 31.00% | 15.00% | |
Customer B [Member] | ' | ' | |
Revenue, Major Customer [Line Items] | ' | ' | |
Customer | 18.00% | ' | |
Customer C [Member] | ' | ' | |
Revenue, Major Customer [Line Items] | ' | ' | |
Customer | ' | [1] | 43.00% |
[1] | Less than 10% of total revenue |
Note_D_Concentration_of_Risk_D2
Note D - Concentration of Risk (Details) - Accounts Receivable Concentration Risk by Customer | 12 Months Ended | 9 Months Ended | |||||||
Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Customer C [Member] | Customer C [Member] | Customer C [Member] | Customer C [Member] | Customer D [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |||
Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |||||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | |
Customer | 10.00% | 74.00% | 78.00% | ' | [1] | 43.00% | 14.00% | 72.00% | 88.00% |
[1] | Less than 10% of total revenue |
Note_E_Note_Receivable_Details
Note E - Note Receivable (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||||
31-May-11 | Apr. 30, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2009 | 20-May-11 | 19-May-11 | |
Note E - Note Receivable (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Disposal Group, Selling Price | ' | ' | ' | ' | $11,300,000 | ' | ' |
Proceeds from Divestiture of Businesses | ' | ' | ' | ' | 7,300,000 | ' | ' |
Notes, Loans and Financing Receivable, Net, Noncurrent | ' | ' | ' | ' | 4,000,000 | ' | ' |
Interest Rate on Note Receivable | ' | ' | ' | ' | 6.00% | ' | ' |
Initial Scheduled Repayment of Principal of Note Receivable | ' | ' | ' | ' | 1,334,000 | ' | ' |
Initial Scheduled Repayment of Principle of Note Receivable, Deferred Portion | ' | ' | ' | ' | 834,000 | ' | ' |
Proceeds from Collection of Notes Receivable | 3,113,654 | 278,000 | 500,000 | 3,350,000 | ' | ' | ' |
Warrants Forfeited (in Shares) | ' | ' | 8,000,000 | ' | ' | ' | ' |
Prepayment Amount of Note Receivable | 3,222,000 | ' | ' | ' | ' | ' | ' |
Discount on Legal Fees | ' | ' | ' | ' | ' | ' | 150,000 |
Discount on Early Payment of Note Receivable Granted by the Company | ' | ' | ' | ' | ' | 150,000 | ' |
Payments for Fees | 10,766 | ' | ' | ' | ' | ' | ' |
Absorbed by Note Holders [Member] | ' | ' | ' | ' | ' | ' | ' |
Note E - Note Receivable (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Discount on Early Payment of Note Receivable Granted by the Company | ' | ' | ' | ' | ' | ' | 50,000 |
Principal [Member] | ' | ' | ' | ' | ' | ' | ' |
Note E - Note Receivable (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Collection of Notes Receivable | 3,222,000 | ' | ' | ' | ' | ' | ' |
Interest [Member] | ' | ' | ' | ' | ' | ' | ' |
Note E - Note Receivable (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Collection of Notes Receivable | $30,888 | ' | ' | ' | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' | ' |
Note E - Note Receivable (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Interest Rate on Deferred Payment | ' | ' | 6.00% | ' | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' | ' |
Note E - Note Receivable (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Interest Rate on Deferred Payment | ' | ' | 12.00% | ' | ' | ' | ' |
Note_F_Equipment_and_Leashold_2
Note F - Equipment and Leashold Improvements (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation, Depletion and Amortization, Nonproduction | $28,603 | $31,462 |
Note_F_Equipment_and_Leashold_3
Note F - Equipment and Leashold Improvements (Details) - Summary of Equipment and Leasehold Improvements (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, Plant, and Equipment | ' | $469,850 | $469,850 |
Less accumulated depreciation and amortization | ' | -445,583 | -416,980 |
Total | 29,361 | 24,267 | 52,870 |
Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, Plant, and Equipment | ' | 302,052 | 302,052 |
Furniture and Fixtures [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, Plant, and Equipment | ' | 99,199 | 99,199 |
Computer Software, Intangible Asset [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, Plant, and Equipment | ' | 28,624 | 28,624 |
Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, Plant, and Equipment | ' | $39,975 | $39,975 |
Note_G_Intangible_Assets_Detai
Note G - Intangible Assets (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Text Block [Abstract] | ' | ' | ' | ' |
Amortization of Intangible Assets | $8,453 | $8,452 | $11,269 | $11,270 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | ' | ' | 11,270 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | ' | ' | 11,270 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | ' | ' | 11,270 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | ' | ' | 11,270 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | ' | ' | 11,270 | ' |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | ' | ' | $139,561 | ' |
Note_G_Intangible_Assets_Detai1
Note G - Intangible Assets (Details) - Summary of Intangible Assets (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite Lived Intangible Assets Gross Carrying Amount | $287,248 | $287,248 |
Finite Lived Intangible Assets Accumulated Amortization | -91,337 | -80,068 |
Finite Lived Intangible Assets Net Carrying Amount | 195,911 | 207,180 |
Patents [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite Lived Intangible Assets Gross Carrying Amount | 287,248 | 287,248 |
Finite Lived Intangible Assets Accumulated Amortization | -91,337 | -80,068 |
Finite Lived Intangible Assets Net Carrying Amount | $195,911 | $207,180 |
Note_H_Accrued_Laibilites_Deta
Note H - Accrued Laibilites (Details) - Summary of Accrued Liabilities (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of Accrued Liabilities [Abstract] | ' | ' | ' |
Compensation | ' | $243,049 | $227,579 |
Compensated absences | ' | 133,535 | 159,949 |
Dividends payable (see Note K) | ' | 3,435 | 3,435 |
Interest payable b related party (Note K) | ' | 47,935 | 23,309 |
Accrued legal and accounting fees | ' | 84,954 | 111,300 |
Income taxes (see Note P) | ' | ' | 26,500 |
Other | ' | 80,691 | 123,761 |
Total | $412,426 | $593,599 | $675,833 |
Note_I_Related_Party_Details
Note I - Related Party (Details) (USD $) | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2011 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | |
Note I - Related Party (Details) [Line Items] | ' | ' | ' | ' |
Notes Payable, Related Parties, Current | $346,428 | $346,428 | ' | $321,428 |
Monthly Payment to Mr. Colatosti [Member] | ' | ' | ' | ' |
Note I - Related Party (Details) [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | ' | 5,000 | ' | ' |
Chief Financial Officer [Member] | ' | ' | ' | ' |
Note I - Related Party (Details) [Line Items] | ' | ' | ' | ' |
Salaries, Wages and Officers' Compensation | 60,000 | ' | ' | ' |
Accounts Payable, Related Parties | 50,000 | 50,000 | ' | 50,000 |
Related Party Transaction Term | ' | '2 years | ' | ' |
Related Party Transaction, Purchases from Related Party | ' | 5,000 | ' | ' |
Notes Payable, Related Parties, Current | ' | ' | $50,000 | $50,000 |
Note_J_Deferred_Revenue_Detail
Note J - Deferred Revenue (Details) - Components of Deferred Revenue (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current Portion | ' | ' | ' |
Deferred Revenue, Current | $302,015 | $508,520 | $527,092 |
Long-Term Portion | ' | ' | ' |
Maintenance contracts | ' | ' | 1,000 |
Total | ' | 508,520 | 528,092 |
Maintenance Contracts [Member] | ' | ' | ' |
Current Portion | ' | ' | ' |
Deferred Revenue, Current | ' | 496,055 | 335,246 |
Long-Term Portion | ' | ' | ' |
Maintenance contracts | ' | ' | 1,000 |
Customer Deposit [Member] | ' | ' | ' |
Current Portion | ' | ' | ' |
Deferred Revenue, Current | ' | 12,465 | 122,500 |
Fully Deferred Systems, Installation and Acceptance Revenue [Member] | ' | ' | ' |
Current Portion | ' | ' | ' |
Deferred Revenue, Current | ' | ' | $69,346 |
Note_K_Notes_Payable_Details
Note K - Notes Payable (Details) (USD $) | 1 Months Ended | 12 Months Ended | 24 Months Ended | 24 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||
31-May-11 | Jan. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | 20-May-11 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | 20-May-11 | Dec. 28, 2009 | Dec. 28, 2009 | Dec. 28, 2009 | Dec. 31, 2012 | 20-May-11 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | 20-May-11 | Dec. 31, 2010 | Feb. 26, 2013 | Sep. 30, 2013 | |
Existing Warrants [Member] | New Warrant [Member] | Principal [Member] | Interest [Member] | Absorbed by Note Holders [Member] | Shaar [Member] | Colatosti [Member] | Thomas Colatosti [Member] | Shaar Note [Member] | Shaar Note [Member] | Shaar Note [Member] | Colatosti Note [Member] | Colatosti Note [Member] | Colatosti Note [Member] | Colatosti Note [Member] | Colatosti Note [Member] | Inter Digital Note [Member] | Inter Digital Note [Member] | |||||||
Shaar Note [Member] | Shaar Note [Member] | Convertible Promissory Note [Member] | Convertible Promissory Note [Member] | Seven Percent Convertible Promissory Note [Member] | ||||||||||||||||||||
Note K - Notes Payable (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | 7.00% | 7.00% | ' | ' | 7.00% | ' | ' | ' | ' | 7.00% | 7.00% | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $673,079 | $64,878 | $64,878 | ' | ' | $3,157,759 | ' | ' | ' | ' | $350,804 | $497,307 | ' |
Debt Instrument, Annual Principal Payment | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | ' | ' | ' | ' | ' | ' | 5,108,333 | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of Warrant | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | ' | ' | ' | ' | ' | ' | ' | 0.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from (Payments for) Other Financing Activities | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | ' | 125,209 | 125,209 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Secured Debt | 3,157,759 | ' | ' | ' | ' | ' | ' | ' | 3,157,759 | 80,286 | ' | ' | ' | ' | 3,192,421 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount on Early Payment of Note Receivable Granted by the Company | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in Note Repayment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,624 | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in Principle Amount of Note Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,376 | ' | ' | ' |
Notes Payable | ' | ' | 346,428 | ' | 321,428 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 321,428 | ' | 0 | ' | ' | ' | 497,307 |
Interest Expense, Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,626 | 23,309 | ' | ' | ' | ' | ' |
Interest Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,935 | 23,309 | ' | ' | ' | ' | ' |
Debt Instrument Default Rate While A Nonpayment DefaultIs Continuing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.09 | ' |
Debt Issuance Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $57,202 | ' |
Note_L_Segment_Information_Det
Note L - Segment Information (Details) | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | |
Geographic Concentration Risk [Member] | Geographic Concentration Risk [Member] | Geographic Concentration Risk [Member] | Geographic Concentration Risk [Member] | North American [Member] | North American [Member] | Non-North American [Member] | Africa [Member] | ||
North American [Member] | North American [Member] | North American [Member] | North American [Member] | ||||||
Note L - Segment Information (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Reportable Segments | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | 10.00% | 97.00% | 91.00% | 97.00% | 93.00% | 93.00% | 54.00% | 46.00% | 43.00% |
Note_M_Commitments_Details
Note M - Commitments (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Text Block Supplement [Abstract] | ' | ' | ' |
Operating Leases, Rent Expense | ' | $169,000 | $166,000 |
Legal Fees | $208,000 | ' | ' |
Note_M_Commitments_Details_Fut
Note M - Commitments (Details) - Future Minimum Rental Commitments of Non-Cancelable Operating Leases (USD $) | Dec. 31, 2012 |
Future Minimum Rental Commitments of Non-Cancelable Operating Leases [Abstract] | ' |
2013 | $137,870 |
2014 | 92,097 |
$229,967 |
Note_N_Equity_Details
Note N - Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 2 Months Ended | 1 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Feb. 26, 2013 | Feb. 26, 2013 | Oct. 25, 2013 | Nov. 08, 2013 | Oct. 25, 2013 | Feb. 26, 2013 | Aug. 15, 2013 | Feb. 26, 2013 | Feb. 26, 2013 | Mar. 01, 2013 | Jul. 23, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Contracted Compensation [Member] | InterDigital SPA [Member] | Private Investor SPA [Member] | Private Investor SPA [Member] | July Private Investor SPA [Member] | ||||||
InterDigital SPA [Member] | Private Investor SPA [Member] | Private Investor SPA [Member] | July Private Investor SPA [Member] | July Private Investor SPA [Member] | InterDigital SPA [Member] | |||||||||||
Note N - Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Shares Authorized | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | 170,000,000 | 170,000,000 | 170,000,000 | 170,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Outstanding | 90,782,912 | 90,782,912 | 78,155,413 | 78,155,413 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued (in Shares) | 90,782,912 | 90,782,912 | 78,155,413 | 78,155,413 | ' | 4,026,935 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of Stock, Price Per Share (in Dollars per share) | ' | ' | ' | ' | ' | $0.10 | $0.10 | $0.15 | $0.27 | $0.27 | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues (in Dollars) | ' | ' | ' | ' | ' | $402,693 | $500,000 | ' | ' | ' | ' | ' | $4,026,935 | ' | ' | $1,050,000 |
Stock Issued During Period, Value, New Issues | ' | ' | ' | ' | ' | 402,693 | 500,000 | ' | ' | ' | ' | ' | 4,026,935 | ' | ' | 1,050,000 |
Stock Issued During Period Sale Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | 0.1 | ' | 0.3 |
Proceeds from Issuance of Common Stock | ' | 1,952,693 | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | 402,693 | ' | ' | ' |
Purchase Exercise Or Conversion Price Per Share Threshold Of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | ' | ' | 0.3 |
Stock Issued During Period, Shares, New Issues (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 54,614 | 357,452 | ' | ' | ' | 5,000,000 | ' | 3,500,006 |
Proceeds from Issuance of Private Placement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,176 | ' |
Class of Warrant or Right, Outstanding (in Shares) | ' | ' | 8,250,000 | 8,250,000 | 10,261,615 | ' | ' | 24,647,337 | ' | ' | ' | 300,000 | ' | ' | ' | 3,500,006 |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Share) | ' | ' | ' | ' | ' | ' | ' | 0.25 | ' | ' | ' | 0.1 | ' | ' | ' | 0.4 |
Payments of Stock Issuance Costs | ' | 142,133 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 135,594 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | 100,558 | 179,998 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | ' | 2,350,000 | 600,000 | 845,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Remaining Contractual Term | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Options, Exercise Price (in Dollars per share) | ' | $0.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | ' | ' | ' | ' | ' | ' | ' | 0.25 | ' | ' | ' | 0.1 | ' | ' | ' | 0.4 |
Fair Value Assumptions, Risk Free Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.70% | ' | ' | ' | ' |
Fair Value Assumptions Expected Volatity Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.34% | ' | ' | ' | ' |
Fair Value Assumptions, Expected Volatility Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 134.20% | ' | ' | ' | ' |
Warrants and Rights Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $89,637 | ' | ' | ' | ' |
Note_N_Equity_Details_Summary_
Note N - Equity (Details) - Summary of Warrant Activity (USD $) | 12 Months Ended | ||
Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2010 | |
Summary of Warrant Activity [Abstract] | ' | ' | ' |
Outstanding | 8,250,000 | 8,250,000 | 10,261,615 |
Outstanding (in Dollars per share) | $0.30 | $0.30 | $0.32 |
Outstanding | '3 years 354 days | '2 years 354 days | ' |
Vested or expected to vest at December 31, 2012 | ' | 8,250,000 | ' |
Vested or expected to vest at December 31, 2012 (in Dollars per share) | ' | $0.30 | ' |
Vested or expected to vest at December 31, 2012 | ' | '2 years 354 days | ' |
Exercisable at December 31, 2012 | ' | 8,250,000 | ' |
Exercisable at December 31, 2012 (in Dollars per share) | ' | $0.30 | ' |
Exercisable at December 31, 2012 | ' | '2 years 354 days | ' |
Expired | -2,011,615 | ' | ' |
Expired (in Dollars per share) | $0.39 | ' | ' |
Note_O_Stock_Options_Details
Note O - Stock Options (Details) (USD $) | 12 Months Ended | 8 Months Ended | 12 Months Ended | 8 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Aug. 31, 2009 | Dec. 31, 2012 | Aug. 31, 2009 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2009 | Dec. 31, 2012 | |
Closing Stock Price [Member] | Nonstatutory Stock [Member] | In-The-Money Options [Member] | 1999 Stock Option Plan [Member] | 2004 Stock Option Plan [Member] | Estimate of Fair Value Measurement [Member] | Estimate of Fair Value Measurement [Member] | Minimum [Member] | Minimum [Member] | |||
1999 Stock Option Plan [Member] | 1999 Stock Option Plan [Member] | 2004 Stock Option Plan [Member] | |||||||||
Note O - Stock Options (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | ' | ' | ' | ' | ' | 2,000,000 | 4,000,000 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | 85.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '4 years 76 days | ' | ' | '10 years | ' | ' | '10 years | ' | ' | ' | ' |
Share Price (in Dollars per share) | ' | ' | $0.09 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in Shares) | 2,230,594 | ' | ' | ' | 775,000 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $0.09 | $0.14 | ' | ' | ' | ' | ' | $0.05 | $0.11 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 70,026 | 52,879 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $47,220 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 200 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_O_Stock_Options_Details_O
Note O - Stock Options (Details) - Option Activity (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Note O - Stock Options (Details) - Option Activity [Line Items] | ' | ' | ' | ' |
Outstanding, as of December 31 | ' | 3,262,272 | 4,404,412 | 4,410,530 |
Outstanding, as of December 31 (in Dollars per share) | ' | $0.16 | $0.22 | $0.25 |
Outstanding, as of December 31 | ' | '4 years 76 days | ' | ' |
Outstanding, as of December 31 (in Dollars) | ' | $2,325 | ' | ' |
Vested or expected to vest at December 31, 2012 | ' | 2,972,404 | ' | ' |
Vested or expected to vest at December 31, 2012 (in Dollars per share) | ' | $0.16 | ' | ' |
Vested or expected to vest at December 31, 2012 | ' | '4 years 14 days | ' | ' |
Vested or expected to vest at December 31, 2012 (in Dollars) | ' | 2,325 | ' | ' |
Exercisable at December 31, 2012 | ' | 2,230,594 | ' | ' |
Exercisable at December 31, 2012 (in Dollars per share) | ' | $0.18 | ' | ' |
Exercisable at December 31, 2012 | ' | '3 years 156 days | ' | ' |
Exercisable at December 31, 2012 (in Dollars) | ' | $2,325 | ' | ' |
Granted | 2,350,000 | 600,000 | 845,000 | ' |
Granted (in Dollars per share) | ' | $0.09 | $0.14 | ' |
Forfeited | ' | -530,001 | -210,000 | ' |
Forfeited (in Dollars per share) | ' | $0.09 | $0.14 | ' |
Expired | ' | -1,212,139 | -641,118 | ' |
Expired (in Dollars per share) | ' | $0.30 | $0.36 | ' |
1999 Stock Option Plan [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Option Activity [Line Items] | ' | ' | ' | ' |
Outstanding, as of December 31 | ' | 500,000 | 500,000 | 500,000 |
2004 Stock Option Plan [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Option Activity [Line Items] | ' | ' | ' | ' |
Outstanding, as of December 31 | ' | 2,762,272 | 2,831,836 | 2,580,689 |
Outstanding, as of December 31 | ' | '10 years | ' | ' |
Granted | ' | 600,000 | 845,000 | ' |
Forfeited | ' | -164,623 | -210,000 | ' |
Expired | ' | -504,941 | -383,853 | ' |
Non Plan [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Option Activity [Line Items] | ' | ' | ' | ' |
Outstanding, as of December 31 | ' | ' | 1,072,576 | 1,329,841 |
Forfeited | ' | -365,378 | ' | ' |
Expired | ' | -707,198 | -257,265 | ' |
Note_O_Stock_Options_Details_O1
Note O - Stock Options (Details) - Options Outstanding and Exercisable (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Note O - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' | ' | ' | ' |
Range of exercise prices | $0.17 | ' | ' | ' |
Options Outstanding Weighted average exercise price | ' | $0.16 | $0.22 | $0.25 |
Options Outstanding Weighted average remaining life | ' | '4 years 76 days | ' | ' |
$0.08 - $0.21 [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' | ' | ' | ' |
Options Outstanding Number of shares (in Shares) | ' | 2,852,272 | ' | ' |
Options Outstanding Weighted average exercise price | ' | $0.11 | ' | ' |
Options Outstanding Weighted average remaining life | ' | '4 years 83 days | ' | ' |
Options Exercisable Number exercisable (in Shares) | ' | 1,820,594 | ' | ' |
Options Exercisable Weighted average exercise price | ' | $0.12 | ' | ' |
$0.08 - $0.21 [Member] | Minimum [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' | ' | ' | ' |
Range of exercise prices | ' | $0.08 | ' | ' |
$0.08 - $0.21 [Member] | Maximum [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' | ' | ' | ' |
Range of exercise prices | ' | $0.21 | ' | ' |
$0.22 - $0.40 [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' | ' | ' | ' |
Options Outstanding Number of shares (in Shares) | ' | 70,000 | ' | ' |
Options Outstanding Weighted average exercise price | ' | $0.40 | ' | ' |
Options Outstanding Weighted average remaining life | ' | '4 years 7 days | ' | ' |
Options Exercisable Number exercisable (in Shares) | ' | 70,000 | ' | ' |
Options Exercisable Weighted average exercise price | ' | $0.40 | ' | ' |
$0.22 - $0.40 [Member] | Minimum [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' | ' | ' | ' |
Range of exercise prices | ' | $0.22 | ' | ' |
$0.22 - $0.40 [Member] | Maximum [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' | ' | ' | ' |
Range of exercise prices | ' | $0.40 | ' | ' |
$0.41 - $0.68 [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' | ' | ' | ' |
Options Outstanding Number of shares (in Shares) | ' | 340,000 | ' | ' |
Options Outstanding Weighted average exercise price | ' | $0.46 | ' | ' |
Options Outstanding Weighted average remaining life | ' | '4 years 7 days | ' | ' |
Options Exercisable Number exercisable (in Shares) | ' | 340,000 | ' | ' |
Options Exercisable Weighted average exercise price | ' | $0.46 | ' | ' |
$0.41 - $0.68 [Member] | Minimum [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' | ' | ' | ' |
Range of exercise prices | ' | $0.41 | ' | ' |
$0.41 - $0.68 [Member] | Maximum [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' | ' | ' | ' |
Range of exercise prices | ' | $0.68 | ' | ' |
$0.07 - $0.68 [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' | ' | ' | ' |
Options Outstanding Number of shares (in Shares) | ' | 3,262,272 | ' | ' |
Options Exercisable Number exercisable (in Shares) | ' | 2,230,594 | ' | ' |
$0.07 - $0.68 [Member] | Minimum [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' | ' | ' | ' |
Range of exercise prices | ' | $0.07 | ' | ' |
$0.07 - $0.68 [Member] | Maximum [Member] | ' | ' | ' | ' |
Note O - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' | ' | ' | ' |
Range of exercise prices | ' | $0.68 | ' | ' |
Note_P_Income_Taxes_Details
Note P - Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' |
Current Federal Tax Expense (Benefit) | $0 | ' |
Current State and Local Tax Expense (Benefit) | 0 | ' |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | ' | 16,500 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | ' | 10,000 |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $44,800,000 | ' |
Note_P_Income_Taxes_Details_Co
Note P - Income Taxes (Details) - Components of Deferred Taxes (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
Current asset: | ' | ' |
Accrued compensation | $128,000 | $119,000 |
Accounts receivable allowance | 8,000 | 156,000 |
Non-current asset (liability): | ' | ' |
Stock-based compensation | 336,000 | ' |
Basis differences in fixed assets | -10,000 | -21,000 |
Basis differences in intangible assets | -77,000 | 31,000 |
Net operating loss carryforwards | 16,143,000 | 15,912,000 |
Valuation allowances | ($16,528,000) | ($16,197,000) |
Note_P_Income_Taxes_Details_Re
Note P - Income Taxes (Details) - Reconciliation of the Effective Income Tax Rate | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of the Effective Income Tax Rate [Abstract] | ' | ' |
US Federal statutory income tax rate | 34.00% | 34.00% |
Permanent differences | 831.00% | -4.00% |
Alternative minimum tax | 0.00% | 1.00% |
Effect of net operating loss | -865.00% | -30.00% |
Effective tax rate | 0.00% | 1.00% |
Note_Q_Profit_Sharing_Plan_Det
Note Q - Profit Sharing Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Defined Benefit Plan, Contributions by Employer | $0 | $0 |
Note_R_Earnings_Per_Share_Deta
Note R - Earnings Per Share (Details) - Securities Excluded from the Diluted Per Share Calculation | 12 Months Ended |
Dec. 31, 2011 | |
Note R - Earnings Per Share (Details) - Securities Excluded from the Diluted Per Share Calculation [Line Items] | ' |
Antidilutive Securities | 379,865 |
Employee Stock Option [Member] | ' |
Note R - Earnings Per Share (Details) - Securities Excluded from the Diluted Per Share Calculation [Line Items] | ' |
Antidilutive Securities | 379,865 |
Note_R_Earnings_Per_Share_Deta1
Note R - Earnings Per Share (Details) - Exclusions from the Diluted Per Share Calculation | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Exclusions from the Diluted Per Share Calculation [Abstract] | ' | ' |
Stock options | 3,262,272 | 3,087,140 |
Warrants | 8,250,000 | 8,250,000 |
Total | 11,512,272 | 11,337,140 |
Note_S_Subsequent_Events_Detai
Note S - Subsequent Events (Details) (USD $) | 9 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Oct. 25, 2013 | Feb. 26, 2013 | Feb. 26, 2013 | Feb. 26, 2013 | Oct. 25, 2013 | Nov. 08, 2013 | Oct. 25, 2013 | Feb. 26, 2013 | Oct. 25, 2013 | Feb. 26, 2013 | Jul. 23, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Private Investor SPA [Member] | July Private Investor SPA [Member] | |||||
Placement Agent Warrant [Member] | Continuing Nonpayment Default [Member] | InterDigital SPA [Member] | Private Investor SPA [Member] | Private Investor SPA [Member] | July Private Investor SPA [Member] | July Private Investor SPA [Member] | Maximum [Member] | ||||||||
Private Investor SPA [Member] | Rights [Member] | ||||||||||||||
Private Investor SPA [Member] | |||||||||||||||
Note S - Subsequent Events (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Common Stock | $1,952,693 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $900,000 | ' | ' | ' |
Common Stock, Shares, Issued (in Shares) | 90,782,912 | 78,155,413 | 78,155,413 | ' | ' | ' | 4,026,935 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' |
Sale of Stock, Price Per Share (in Dollars per share) | ' | ' | ' | ' | ' | ' | $0.10 | $0.10 | $0.15 | $0.27 | $0.27 | ' | $0.15 | ' | ' |
Stock Issued During Period, Value, New Issues | ' | ' | ' | ' | ' | ' | 402,693 | 500,000 | ' | ' | ' | ' | ' | ' | 1,050,000 |
Share Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 497,307 | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' |
Repayments of Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,425,000 | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | ' | ' | ' | ' | 1,971,786 | ' | ' | ' | 24,647,337 | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Outstanding | ' | 8,250,000 | 8,250,000 | 10,261,615 | ' | ' | ' | ' | 24,647,337 | ' | ' | ' | ' | ' | 3,500,006 |
Proceeds from Issuance of Warrants (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | $3,697,100 | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | ' | ' | ' | ' | ' | ' | ' | ' | 0.25 | ' | ' | ' | ' | ' | 0.4 |
Commission Fees Relatedto Letter Agreement | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54,614 | 357,452 | ' | ' | 5,000,000 | 3,500,006 |
Note_2_Liquidity_And_Capital_R1
Note 2 - Liquidity And Capital Resouce Matters (Details) (USD $) | 9 Months Ended | ||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Going Concern [Abstract] | ' | ' | ' | ' | ' |
Retained Earnings (Accumulated Deficit) | ($53,941,385) | ($52,288,421) | ' | ($52,291,688) | ' |
Cash and Cash Equivalents, at Carrying Value | 225,328 | 83,989 | 107,565 | 43,437 | 1,010,096 |
Amount of Funds Required to Conduct Operations on Monthly Basis | 400,000 | ' | ' | ' | ' |
Net Proceeds FromIssuance Of A Senior Secured Promissory Note And Common Stock | $2,251,000 | ' | ' | ' | ' |
Note_3_Share_Based_Compensatio
Note 3 - Share Based Compensation (Details) - Share Based Compensation Expense (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | $22,255 | $6,945 | $62,272 | $45,054 | $49,842 | $57,180 |
Selling, General and Administrative Expenses [Member] | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | 19,294 | 5,637 | 50,571 | 19,022 | ' | ' |
Research and Development Expense [Member] | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | $2,961 | $1,308 | $11,701 | $26,032 | ' | ' |
Note_4_Earnings_Per_Share_EPS_
Note 4 - Earnings Per Share ("EPS") (Details) - Reconciliation of Numerator of Basic and Diluted EPS Calculations (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of Numerator of Basic and Diluted EPS Calculations [Abstract] | ' | ' | ' | ' | ' | ' |
(Loss) available to common stockholders (in Dollars) | ($782,554) | ($232,609) | ($1,652,963) | ($482,530) | $3,267 | ($1,897,606) |
Basic Denominator | 89,844,062 | 78,155,413 | 86,194,591 | 78,155,413 | ' | ' |
Per Share Amount (in Dollars per share) | ($0.01) | $0 | ($0.02) | ($0.01) | ' | ' |
Note_4_Earnings_Per_Share_EPS_1
Note 4 - Earnings Per Share ("EPS") (Details) - Anti-dilutive Securities | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Exercise Price Less Than Average Market Price Of Common Shares [Member] | Exercise Price Less Than Average Market Price Of Common Shares [Member] | Exercise Price Less Than Average Market Price Of Common Shares [Member] | Exercise Price Less Than Average Market Price Of Common Shares [Member] | Exercise Price Less Than Average Market Price Of Common Shares [Member] | Exercise Price Less Than Average Market Price Of Common Shares [Member] | Exercise Price Less Than Average Market Price Of Common Shares [Member] | Exercise Price Less Than Average Market Price Of Common Shares [Member] | Exercise Price Less Than Average Market Price Of Common Shares [Member] | Exercise Price Less Than Average Market Price Of Common Shares [Member] | Exercise Price Less Than Average Market Price Of Common Shares [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | ||
Equity Option [Member] | Equity Option [Member] | Equity Option [Member] | Equity Option [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Equity Option [Member] | Equity Option [Member] | Equity Option [Member] | Equity Option [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities | 379,865 | 2,802,392 | 0 | 2,027,713 | 0 | 817,072 | 0 | 174,477 | 0 | 3,619,464 | 0 | 2,202,190 | 0 | 410,000 | 4,575,749 | 410,000 | 4,575,749 | 3,500,006 | 8,250,000 | 11,750,006 | 8,250,000 | 3,910,006 | 12,825,749 | 12,160,006 | 12,825,749 |