Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 25, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'BIO KEY INTERNATIONAL INC | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 115,995,974 | ' |
Entity Public Float | ' | ' | $32,317,405 |
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 | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash and cash equivalents | $2,023,349 | $83,989 |
Accounts receivable, net | 284,025 | 604,784 |
Due from factor | 2,449 | 189,904 |
Inventory | 9,376 | 4,186 |
Prepaid expenses and other | 73,482 | 25,088 |
Total current assets | 2,392,681 | 907,951 |
Equipment and leasehold improvements, net | 125,062 | 24,267 |
Deposits and other assets | 8,712 | 8,712 |
Intangible assets—less accumulated amortization | 174,950 | 195,911 |
Total non-current assets | 308,724 | 228,890 |
TOTAL ASSETS | 2,701,405 | 1,136,841 |
LIABILITIES | ' | ' |
Accounts payable | 540,912 | 931,276 |
Accrued liabilities | 338,321 | 593,599 |
Deferred revenue | 528,160 | 508,520 |
Note payable – related party | ' | 321,428 |
Total current liabilities | 1,407,393 | 2,354,823 |
Warrant liabilities | 243,077 | ' |
TOTAL LIABILITIES | 1,650,470 | 2,354,823 |
STOCKHOLDERS’ EQUIY (DEFICIT) | ' | ' |
Common stock — authorized, 170,000,000 shares; issued and outstanding; 115,842,315 and 78,155,413 of $.0001 par value at December 31, 2013 and December 31, 2012, respectively | 11,584 | 7,815 |
Additional paid-in capital | 55,909,923 | 51,062,624 |
Accumulated deficit | -54,870,572 | -52,288,421 |
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) | 1,050,935 | -1,217,982 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $2,701,405 | $1,136,841 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common stock, shares authorized | 170,000,000 | 170,000,000 |
Common stock, shares issued | 115,842,315 | 78,155,413 |
Common stock, shares outstanding | 115,842,315 | 78,155,413 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues | ' | ' |
Services | $988,003 | $1,094,731 |
License fees and other | 997,973 | 2,741,162 |
1,985,976 | 3,835,893 | |
Costs and other expenses | ' | ' |
Cost of services | 145,702 | 221,027 |
Cost of license fees and other | 241,326 | 350,706 |
387,028 | 571,733 | |
Gross Profit | 1,598,948 | 3,264,160 |
Operating expenses | ' | ' |
Selling, general and administrative | 2,776,559 | 2,288,903 |
Research, development and engineering | 1,344,070 | 947,371 |
4,120,629 | 3,236,274 | |
Operating (loss) income | -2,521,681 | 27,886 |
Other income (deductions) | ' | ' |
Interest income | 7 | 7 |
Interest expense | -136,484 | -24,626 |
Gain on derivative liabilities | 78,812 | ' |
Income taxes | -2,805 | ' |
-60,470 | -24,619 | |
Net (loss) income | ($2,582,151) | $3,267 |
Basic and Diluted (Loss) Income per Common Share: (in Dollars per share) | ($0.03) | $0 |
Weighted Average Shares Outstanding: | ' | ' |
Basic and Diluted (in Shares) | 91,791,690 | 78,155,413 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Deficit) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
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 | ' | ' | ' |
Derivative liabilities associated with security purchase agreements | ' | -346,214,000,000 | ' | -346,214,000,000 |
Stock issuance costs | ' | -648,116 | ' | -648,116 |
Reclassification of derivative liability | ' | 113,962 | ' | 113,962 |
Share-based compensation | ' | 81,642 | ' | 81,642 |
Net Income (Loss) | ' | ' | -2,582,151 | -2,582,151 |
Issuance of common stock and warrants pursuant to security purchase agreements | 3,718 | 5,646,076 | ' | 5,649,794 |
Issuance of common stock and warrants pursuant to security purchase agreements (in Shares) | 37,174,277 | ' | ' | 65,733,688 |
Issuance of common stock pursuant to anti-dilution rights | 41 | -41 | ' | ' |
Issuance of common stock pursuant to anti-dilution rights (in Shares) | 412,067 | ' | ' | ' |
Issuance of common stock in exchange for options exercised | 10 | -10 | ' | ' |
Issuance of common stock in exchange for options exercised (in Shares) | 100,558 | ' | ' | 179,998 |
Balance as of December 31 at Dec. 31, 2013 | $11,584 | $55,909,923 | ($54,870,572) | $1,050,935 |
Balance as of December 31 (in Shares) at Dec. 31, 2013 | 115,842,315 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ' | ' |
Net (loss) income | ($2,582,151) | $3,267 |
Adjustments to reconcile net (loss) income to cash (used for) provided by operating activities: | ' | ' |
Allowance for doubtful accounts | ' | -377,000 |
Depreciation | 28,618 | 28,603 |
Intangible assets | 20,961 | 11,269 |
Deferred costs | 107,203 | ' |
Share-based compensation | 81,642 | 49,842 |
Gain on derivative liabilities | -78,812 | ' |
Change in assets and liabilities: | ' | ' |
Accounts receivable trade | 320,759 | 359,562 |
Due from factor | 187,455 | -189,904 |
Inventory | -5,190 | 4,051 |
Prepaid expenses and other | -48,394 | 33,833 |
Accounts payable | -480,364 | 243,835 |
Accrued liabilities | -255,278 | -82,234 |
Deferred revenue | 19,640 | -19,572 |
Net cash (used for) provided by operating activities | -2,683,911 | 65,552 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -129,413 | ' |
Net cash used for investing activities | -129,413 | ' |
CASH FLOW FROM FINANCING ACTIVITIES: | ' | ' |
Issuances of common stock | 5,649,793 | ' |
Repayment of notes payable – related party | -321,428 | -25,000 |
Proceeds from issuance of Note Payable | 497,307 | ' |
Repayment of Note Payable | -497,307 | ' |
Costs to issue common stock and Note Payable | -575,681 | ' |
Net cash provided by (used for) financing activities | 4,752,684 | -25,000 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,939,360 | 40,552 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 83,989 | 43,437 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 2,023,349 | 83,989 |
Cash paid for: | ' | ' |
Interest | 77,216 | ' |
Income taxes | ' | 41,169 |
Issuance of warrants for deferred financing costs and equity raise | 89,637 | ' |
Unpaid costs to issue common stock | 90,000 | ' |
Reclassification of derivative liability to additional paid-in capital | $113,962 | ' |
Note_A_The_Company_and_Summary
Note A - The Company and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
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, 2013, we had an accumulated deficit of approximately $55 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, 2013, our total cash and cash equivalents were approximately $2,023,000, as compared to approximately $84,000 at December 31, 2012. | |||||||||||||||||
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 $400,000 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 ("GAAP"), 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 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 vendor-specific objective evidence ("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, 2013 and 2012, cash equivalents consisted of a money market account. | |||||||||||||||||
5. Accounts Receivable | |||||||||||||||||
Accounts receivable 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, 2013 and 2012 consisted of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts receivable | $ | 304,551 | $ | 625,310 | |||||||||||||
Allowance for doubtful accounts | (20,526 | ) | (20,526 | ) | |||||||||||||
Accounts receivable, net allowances for doubtful accounts | $ | 284,025 | $ | 604,784 | |||||||||||||
The allowance for doubtful accounts for the years ended December 31, 2013 and 2012 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, 2013 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 20,526 | $ | - | $ | - | $ | 20,526 | |||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 397,526 | $ | - | $ | 377,000 | $ | 20,526 | |||||||||
The allowance at January 1, 2012 was 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. | |||||||||||||||||
6. Equipment and Leasehold Improvements, Intangible Assets and Depreciation and Amortization | |||||||||||||||||
Equipment and leasehold improvements 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, 2013 and 2012 were approximately $178,000 and $114,000, 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 is delivered 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, when the effect of their inclusion is dilutive. See Note Q - 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 $81,642 and $49,842 for the years ended December 31, 2013 and 2012 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, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Selling, general and administrative | $ | 60,151 | $ | 22,502 | |||||||||||||
Research, development and engineering | 21,491 | 27,340 | |||||||||||||||
$ | 81,642 | $ | 49,842 | ||||||||||||||
Valuation Assumptions for Stock Options | |||||||||||||||||
For the years ended December 31, 2013 and 2012, 2,350,000 and 600,000 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, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Risk free interest rate | 0.68 | % | 0.8 | % | |||||||||||||
Expected life of options (in years) | 4.5 | 4.48 | |||||||||||||||
Expected dividends | 0 | % | 0 | % | |||||||||||||
Volatility of stock price | 139 | % | 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. Derivative Liabilities | |||||||||||||||||
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.” | |||||||||||||||||
14. Deferred Costs | |||||||||||||||||
Costs incurred with obtaining and executing debt arrangements are capitalized and amortized to interest expense using the effective interest method over the term of the related debt. | |||||||||||||||||
15. 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. | |||||||||||||||||
16. 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. |
Note_B_Factoring
Note B - Factoring | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
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, 2013 | |||||||||||||
Factored accounts receivable | $ | 9,795 | $ | 7,346 | $ | 2,449 | |||||||
Year Ended December 31, 2012 | |||||||||||||
Factored accounts receivable | $ | 744,315 | $ | 554,411 | $ | 189,904 | |||||||
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. In April 2012, the terms were updated from monthly to quarterly, and the 24-month arrangement was extended to August 1, 2014. |
Note_C_Fair_Values_of_Financia
Note C - Fair Values of Financial Instruments | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Fair Value Disclosures [Abstract] | ' | |||||
Fair Value Disclosures [Text Block] | ' | |||||
NOTE C—FAIR VALUES OF FINANCIAL INSTRUMENTS | ||||||
Cash and cash equivalents, accounts receivable, due from factor, accounts payable, accrued liabilities, and notes payable - related party, are carried at, or approximate, fair value because of their short-term nature. | ||||||
The fair value of the warrant liabilities and derivative liabilities are measured at fair value using the following assumptions: | ||||||
Risk free interest rate | 0.07% | - | 1.38% | |||
Expected term | 0.25% | - | 4.65% | |||
Expected dividends | 0 | |||||
Volatility of stock price | 78.00% | - | 136.20% | |||
For the anti-dilution features, the Company utilized the Monte Carlo simulation. 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 term 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 term of the derivative. | ||||||
The warrant liabilities and derivative liabilities are considered Level 3 liabilities on the fair value hierarchy as the determination of fair value includes various assumptions about of future activities and the Company’s stock prices and historical volatility as inputs. | ||||||
The table below provides a reconciliation of the beginning and ending balances for the liabilities measured at fair value using significant unobservable inputs (Level 3). There were no assets as of or during the year ended December 31, 2013 and no assets or liabilities as of or during the year ended December 31, 2012 measured using significant unobservable inputs. | ||||||
Fair Value Measurements Using | ||||||
Significant Unobservable Inputs (Level 3): | ||||||
Balance, January 1, 2013 | $ | - | ||||
Compensatory Warrant (Note M3) | ||||||
Fair value at issuance | 89,637 | |||||
Gain on derivative | (53,267 | ) | ||||
Value at December 31, 2013 | 36,370 | |||||
Warrants issued Under PI SPA (Note M2c) | ||||||
Fair value at issuance | 325,891 | |||||
Gain on derivative | (119,184 | ) | ||||
Value at December 31, 2013 | 206,707 | |||||
Anti-Dilution Features From July Private Investor SPA (Note M2b) | ||||||
Fair value at issuance | 20,323 | |||||
Loss on derivative | 93,639 | |||||
Reclassification to additional paid-in capital | (113,962 | ) | ||||
Value at December 31, 2013 | - | |||||
Balance, December 31, 2013 | $ | 243,077 | ||||
Note_D_Concentration_of_Risk
Note D - Concentration of Risk | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||
Concentration Risk Disclosure [Text Block] | ' | ||||||||
NOTE D—CONCENTRATION OF RISK | |||||||||
Financial instruments which potentially subject the Company to risk primarily consist of cash and accounts receivables. | |||||||||
The Company maintains its cash and cash equivalents with various financial institutions, which, at times may exceed the amounts insured by the Federal Deposit Insurance Corporation. The exposure to the Company is solely dependent upon daily bank balances and the respective strength of the financial institutions. The Company has not incurred any losses on these accounts. At December 31, 2013 and 2012, amounts in excess of insured limits were $1,534,815 and $0, respectively. | |||||||||
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, | |||||||||
2013 | 2012 | ||||||||
Customer A | 19 | % | 31 | % | |||||
Customer B | 15 | % | * | % | |||||
* 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, | |||||||||
2013 | 2012 | ||||||||
Customer C | 50 | % | 74 | % | |||||
Customer D | * | % | 14 | % | |||||
* Less than 10% of total accounts receivable |
Note_E_Equipment_and_Leashold_
Note E - Equipment and Leashold Improvements | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
NOTE E—EQUIPMENT AND LEASEHOLD IMPROVEMENTS | |||||||||
Equipment and leasehold improvements consisted of the following as of December 31: | |||||||||
2013 | 2012 | ||||||||
Equipment | $ | 378,074 | $ | 302,052 | |||||
Furniture and fixtures | 138,618 | 99,199 | |||||||
Software | 28,624 | 28,624 | |||||||
Leasehold improvements | 53,948 | 39,975 | |||||||
599,264 | 469,850 | ||||||||
Less accumulated depreciation and amortization | (474,202 | ) | (445,583 | ) | |||||
Total | $ | 125,062 | $ | 24,267 | |||||
Depreciation and amortization were $28,618 and $28,603 for the periods ending December 31, 2013 and 2012, respectively. |
Note_F_Intangible_Assets
Note F - Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||||||||||||||||||
NOTE F—INTANGIBLE ASSETS | |||||||||||||||||||||||||
Intangible assets consisted of the following as of December 31: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | ||||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | ||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Patents and patents pending | $ | 287,248 | $ | (112,298 | ) | $ | 174,950 | $ | 287,248 | $ | (91,337 | ) | $ | 195,911 | |||||||||||
Total | $ | 287,248 | $ | (112,298 | ) | $ | 174,950 | $ | 287,248 | $ | (91,337 | ) | $ | 195,911 | |||||||||||
Aggregate amortization expense for the years ended December 31, 2013 and 2012, was $20,961 and $11,269 respectively. The estimated aggregate amortization expense of intangible assets for the years following December 31, 2014 is approximately $21,000 per year for 2014 through 2018, and approximately $70,000 thereafter. |
Note_G_Accrued_Laibilites
Note G - Accrued Laibilites | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
NOTE G—ACCRUED LIABILITIES | |||||||||
Accrued liabilities consisted of the following as of December 31: | |||||||||
2013 | 2012 | ||||||||
Compensation | $ | 11,102 | $ | 243,049 | |||||
Compensated absences | 112,609 | 133,535 | |||||||
Dividends payable | 3,435 | 3,435 | |||||||
Interest payable – related party | - | 47,935 | |||||||
Accrued legal and accounting fees | 84,609 | 84,954 | |||||||
Sales tax payable | 54,382 | 53,043 | |||||||
Other | 72,184 | 27,648 | |||||||
Total | $ | 338,321 | $ | 593,599 | |||||
Note_H_Related_Party
Note H - Related Party | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE H—RELATED PARTY | |
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 December 31, 2013 and December 31, 2012, Mr. Colatosti is owed $50,000. The balance owed to Colatosti is included in accounts payable. |
Note_I_Deferred_Revenue
Note I - Deferred Revenue | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||
Deferred Revenue Disclosure [Text Block] | ' | ||||||||
NOTE I—DEFERRED REVENUE | |||||||||
The components of deferred revenue are as follows as of December 31: | |||||||||
2013 | 2012 | ||||||||
Maintenance contracts | $ | 528,160 | $ | 496,055 | |||||
Customer deposit | - | 12,465 | |||||||
Total | $ | 528,160 | $ | 508,520 | |||||
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. |
Note_J_Notes_Payable
Note J - Notes Payable | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
NOTE J—NOTES PAYABLE | |
The 2010 Exchange Agreement | |
Effective as of December 31, 2010, the Company entered into a Securities Exchange Agreement (the “2010 Exchange Agreement”) with Colatosti. 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 February 2013 financing (see Note M2a). At December 31, 2013 and December 31, 2012, the amount payable under the Colatosti Note was $0 and $321,428, respectively. Accrued interest owed amounted to $0 and $47,935 at December 31, 2013 and 2012, respectively, and was included in accrued liabilities (see Note G). | |
The 2013 Note Purchase Agreement | |
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 accrued interest at a rate of 7% per annum, with a default rate of 9% per annum while a nonpayment default was continuing. | |
The InterDigital Note was to mature on December 31, 2015, was secured by a security interest in all of the tangible and intangible assets of the Company, and was subject to acceleration upon an event of default. 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. | |
On November 22, 2013, the Company repaid in full the $497,307 principal balance and accumulated interest payable due under the InterDigital Note. In connection with the repayment, DRNC's security interest in all of our tangible and intangible assets was terminated. | |
In connection with the InterDigital NPA and InterDigital Note, the Company incurred costs totaling $57,202. Such costs were capitalized and were being amortized over the initial expected term of the InterDigital Note using the effective interest method. Once the InterDigital Note was repaid, the remaining balance of capitalized costs was written off to interest expense. |
Note_K_Segment_Information
Note K - Segment Information | 12 Months Ended |
Dec. 31, 2013 | |
Segment Reporting [Abstract] | ' |
Segment Reporting Disclosure [Text Block] | ' |
NOTE K—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 93% of the Company’s total sales for fiscal years 2013 and 2012, respectively. |
Note_L_Commitments
Note L - Commitments | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Commitments Disclosure [Text Block] | ' | ||||
NOTE L—COMMITMENTS | |||||
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 2018. 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, | |||||
2014 | $ | 142,944 | |||
2015 | 143,745 | ||||
2016 | 147,726 | ||||
2017 | 152,359 | ||||
2018 | 103,825 | ||||
$ | 690,599 | ||||
Rental expense was approximately $159,000 and $169,000 during 2013 and 2012, respectively. |
Note_M_Equity
Note M - Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||||||||||||||
NOTE M— EQUITY | |||||||||||||||||
1. Redeemable Preferred Stock | |||||||||||||||||
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. | |||||||||||||||||
2. Common Stock | |||||||||||||||||
The Company is authorized to issue 170,000,000 shares of common stock, $.0001 par value per share, of which 115,842,315 and 78,155,413 were outstanding as of December 31, 2013 and 2012, respectively. | |||||||||||||||||
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. | |||||||||||||||||
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. | |||||||||||||||||
Issuances of Common Stock | |||||||||||||||||
a) | Securities Purchase Agreements dated February 26, 2013 | ||||||||||||||||
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 had anti-dilution rights under the InterDigital SPA that required the Company to issue additional shares to DRNC on a full-ratchet basis if the Company, within the nine months following February 26, 2013, sold or issued 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. No shares were issued under the anti-dilution rights due to subsequent issuances. | |||||||||||||||||
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. | |||||||||||||||||
In connection with the share issuances described above, the Company incurred costs of $46,176, which were offset against additional paid-in capital. | |||||||||||||||||
The shares of common stock were subject to registration clauses. The Company filed a registration statement on November 22, 2013 and such registration was declared effective on December 31, 2013. See Note M2d. | |||||||||||||||||
b) | Securities Purchase Agreement dated July 23, 2013 | ||||||||||||||||
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 (see Note M2c below where the anti-dilution rights were triggered). The warrants are immediately exercisable at an exercise price of $0.40 per share and have a term of five years. Effective November 22, 2013, the Company agreed to reduce the exercise price of the warrants to $0.25 per share. | |||||||||||||||||
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 in the July 2013 Private Investors SPA, which were offset against additional paid-in capital. | |||||||||||||||||
The shares of common stock and the shares of common stock underlying the warrants were subject to a registration clause. The Company filed a registration statement on November 22, 2013 and such registration was declared effective on December 31, 2013. See Note M2d. | |||||||||||||||||
Based on an evaluation as discussed in FASB ASC 815-15, “Embedded Derivatives” and FASB ASC 815-40-15, “Contracts in Entity’s Own Equity - Scope and Scope Exceptions,” the Company determined that the anti-dilution feature in the common stock issued was not considered indexed to its own stock because neither the occurrence of a sale of equity securities by the issuer at market nor the issuance of another equity contract with a lower strike price is an input to the fair value of a fixed-for-fixed option or forward on equity shares. As such, the anti-dilution feature should be bifurcated from the common stock and accounted for as a derivative liability. | |||||||||||||||||
The Company recorded derivative liabilities equal to their estimated fair value of $20,323. Such amount was also recorded as a reduction of additional paid-in capital. As discussed in Item c) below, the down round feature was triggered. As such, the Company marked-to-market the derivative liabilities at the date of issuances. In addition, the Company was required to mark-to-market the derivative liabilities at December 31, 2013. For the year ended December 31, 2013, the Company recorded a loss on the change in fair value of the anti-dilution rights of $93,639. The Company did not value the derivative liability at December 31, 2013. At such date, the Company determined that it was still highly unlikely that an equity financing would occur prior to January 23, 2014, the expiration date of the down round feature. Such conclusion was based upon the discussion noted in Note M2c below. | |||||||||||||||||
As discussed above, the Company agreed to reduce the exercise price of the warrants. Under GAAP, the warrants have to be revalued and a charge recorded if the value of the warrants under the new terms exceeds the value of the warrants under the old terms on the day before the change. No charge was recorded as the value of the “new” warrants was less than the value of the “old” warrants. | |||||||||||||||||
c) | Securities Purchase Agreements dated October 25, 2013 and November 8, 2013 | ||||||||||||||||
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 nine 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. | |||||||||||||||||
In connection with the share issuances described above, the Company incurred costs of $466,346, including filing costs for the associated Registration Statement filed with the SEC pursuant to the registration rights clause in the October and November 2013 Private Investors SPA, which were offset against additional paid-in capital. | |||||||||||||||||
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. | |||||||||||||||||
Based on an evaluation as discussed in FASB ASC 815-15, “Embedded Derivatives” and FASB ASC 815-40-15, “Contracts in Entity’s Own Equity - Scope and Scope Exceptions,” the Company determined that the anti-dilution features in the common stock issued were not considered indexed to its own stock because neither the occurrence of a sale of equity securities by the issuer at market nor the issuance of another equity contract with a lower strike price is an input to the fair value of a fixed-for-fixed option or forward on equity shares. As such, the anti-dilution features should be bifurcated from the common stock and accounted for as a derivative liability. | |||||||||||||||||
The Company did not value the derivative liability. One of the key determinants of the Company’s decision to not value the derivative liability was the high likelihood that a future financing would not occur that would trigger the down round feature. Whether a future equity financing would occur would be determined by the cash needs of the Company and management’s willingness to trigger the down round feature. The Company’s reasons were as follows: | |||||||||||||||||
1 | The Company’s cash position after the completion of the PI SPA. | ||||||||||||||||
2 | The stock price of the Company’s common stock. | ||||||||||||||||
3 | The lack of enough available authorized shares to complete a large offering. | ||||||||||||||||
Under GAAP, the Company is required to mark-to-market the derivative liability at the end of each reporting period. The Company did not value the derivative liability at December 31, 2013. At such date, the Company determined that it was still highly unlikely that an equity financing would occur prior to July 8, 2014, the expiration date of the down round feature. Such conclusion was based upon the discussion noted above. | |||||||||||||||||
The Shares and shares of common stock underlying the Warrants were subject to a registration rights agreement. The Company filed a registration statement on November 22, 2013 and such registration was declared effective on December 31, 2013. See Note M2d. | |||||||||||||||||
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. | |||||||||||||||||
The cashless exercise features contained in the warrants are considered to be derivatives and the Company recorded warrant liabilities on the consolidated balance sheet. The Company recorded the warrant liabilities equal to their estimated fair value of $325,891. Such amount was also recorded as a reduction of additional paid-in capital. The Company is required to mark-to-market the warrant liabilities at the end of each reporting period. For the year ended December 31, 2013, the Company recorded a gain on the change in fair value of the cashless exercise features of $119,184, and as of December 31, 2013, the fair value of the cashless exercise features was $206,707. | |||||||||||||||||
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. | |||||||||||||||||
d) | Registration Statement | ||||||||||||||||
The Company filed a registration statement on Form S-1 with the SEC to register the public resale of 65,733,688 shares of its common stock from the above 2013 Securities Purchase Agreements, comprised of: | |||||||||||||||||
● | 9,026,935 shares of common stock issued in the February 2013 private offering | ||||||||||||||||
● | 3,500,006 shares of common stock issued in the July 2013 private offering | ||||||||||||||||
● | 3,500,006 shares of common stock underlying warrants issued in the July 2013 private offering | ||||||||||||||||
● | 412,067 shares of common stock issued pursuant to certain anti-dilution rights held by certain investors in the July 2013 private offering | ||||||||||||||||
● | 24,647,337 shares of common stock issued in the October 2013 and November 2013 private offerings | ||||||||||||||||
● | 24,647,337 shares of common stock underlying warrants issued in the October 2013 and November 2013 private offerings | ||||||||||||||||
The registration statement was declared effective on December 31, 2013. | |||||||||||||||||
e) | Employees’ exercise options | ||||||||||||||||
During the year ended December 31, 2013, 179,998 stock options were exercised resulting in the cashless issuance of 100,558 shares of common stock. | |||||||||||||||||
3. Warrants | |||||||||||||||||
The Company has issued warrants to certain creditors, investors, investment bankers and consultants. A summary of warrant activity is as follows: | |||||||||||||||||
Total Warrants | Weighted | Weighted | Aggregate | ||||||||||||||
average | average | intrinsic | |||||||||||||||
exercise | remaining | value | |||||||||||||||
price | life | ||||||||||||||||
(in years) | |||||||||||||||||
Outstanding, as of December 31, 2011 | 8,250,000 | $ | 0.3 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Expired | — | — | |||||||||||||||
Outstanding, as of December 31, 2012 | 8,250,000 | $ | 0.3 | 2.97 | |||||||||||||
Granted | 30,419,129 | 0.25 | |||||||||||||||
Exercised | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Expired | — | — | |||||||||||||||
Outstanding, as of December 31, 2013 | 38,669,129 | $ | 0.26 | 2.79 | — | ||||||||||||
Vested or expected to vest at December 31, 2013 | 38,669,129 | $ | 0.26 | 2.79 | — | ||||||||||||
Exercisable at December 31, 2013 | 38,669,129 | $ | 0.26 | 2.79 | — | ||||||||||||
On August 15, 2013, the Company issued a warrant to purchase 300,000 shares of the Company’s common stock to an independent contractor for work associated with the InterDigital Note and InterDigital SPA as additional compensation. The warrant has an exercise price of $0.10 per share and term of three years. The warrant also contains a cashless exercise feature. The Company valued the warrant 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. Approximately $50,000 of the value of the warrant was allocated to the InterDigital NPA as deferred financing costs (the balance of which was written off in November 2013 on repayment of the InterDigital Note), and approximately $39,600 was allocated to additional-paid-in-capital for the InterDigital SPA. | |||||||||||||||||
The cashless exercise feature contained in the warrant is considered to be a derivative and the Company recorded a warrant liability on the consolidated balance sheet. The Company recorded the warrant liability equal to its estimated fair value of $89,637. The Company is required to mark-to-market the warrant liabilities at the end of each reporting period. For the year ended December 31, 2013, the Company recorded a gain on the change in fair value of the cashless exercise feature of $53,267, and as of December 31, 2013, the fair value of the cashless exercise feature was $36,370. On March 11, 2014, the 300,000 warrants were exercised resulting in the cashless issuance of 153,659 shares of common stock. | |||||||||||||||||
On January 27, 2014, the Company repurchased a warrant for the purchase of 8,000,000 shares of common stock from the Shaar Fund Ltd. at a purchase price of $150,000. The warrant was exercisable at a strike price of $0.30 per share through December 31, 2015. |
Note_N_Stock_Options
Note N - Stock Options | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||||||||||||||
NOTE N—STOCK OPTIONS | |||||||||||||||||||||||||||||
1999 Stock Option Plan | |||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||
2004 Stock Option Plan | |||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||
Non-Plan Stock Options | |||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||
Stock Option Activity | |||||||||||||||||||||||||||||
Information summarizing option activity is as follows: | |||||||||||||||||||||||||||||
Number of Options | Weighted | Weighted | Aggregate | ||||||||||||||||||||||||||
average | average | intrinsic | |||||||||||||||||||||||||||
exercise | remaining | ||||||||||||||||||||||||||||
life | |||||||||||||||||||||||||||||
1999 Plan | 2004 Plan | Non Plan | Total | price | (in years) | value | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Granted | — | 1,150,000 | 1,200,000 | 2,350,000 | 0.17 | ||||||||||||||||||||||||
Exercised | — | (179,998 | ) | — | (179,998 | ) | 0.13 | ||||||||||||||||||||||
Forfeited | — | (41,667 | ) | — | (41,667 | ) | 0.16 | ||||||||||||||||||||||
Expired | — | — | — | — | — | ||||||||||||||||||||||||
Outstanding, as of December 31, 2013 | 500,000 | 3,690,607 | 1,200,000 | 5,390,607 | $ | 0.17 | 4.48 | $ | 136,787 | ||||||||||||||||||||
Vested or expected to vest at December 31, 2013 | 4,526,934 | $ | 0.17 | 4.17 | $ | 130,993 | |||||||||||||||||||||||
Exercisable at December 31, 2013 | 2,495,595 | $ | 0.17 | 2.74 | $ | 105,496 | |||||||||||||||||||||||
The options outstanding and exercisable at December 31, 2013 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 | 4,980,607 | $ | 0.14 | 4.6 | 2,085,595 | $ | 0.12 | ||||||||||||||||||||
0.22 | - | 0.4 | 70,000 | 0.4 | 3.02 | 70,000 | 0.4 | ||||||||||||||||||||||
0.41 | - | 0.68 | 340,000 | 0.46 | 3.02 | 340,000 | 0.46 | ||||||||||||||||||||||
$ 0.07 | - | 0.68 | 5,390,607 | 2,495,595 | |||||||||||||||||||||||||
The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $0.16 as of December 31, 2013, 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, 2013 was 1,820,595. | |||||||||||||||||||||||||||||
The weighted average fair value of options granted during the years ended December 31, 2013 and 2012 was $0.15 and $0.05 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2013 and 2012 was $31,643, and $0, respectively. The total fair value of shares vested during the years ended December 31, 2013 and 2012 was $42,058 and $70,026 respectively. | |||||||||||||||||||||||||||||
As of December 31, 2013 future compensation cost related to nonvested stock options is $335,020 and will be recognized over an estimated weighted average period of 2.10 years. | |||||||||||||||||||||||||||||
On March 13, 2014, the Board of Directors granted options to purchase 3,420,000 shares of the Company’s common stock to certain employees and members of the Board of Directors. The terms of the options include the following: | |||||||||||||||||||||||||||||
Exercise price - $0.205 per share | |||||||||||||||||||||||||||||
Vesting period – Three years | |||||||||||||||||||||||||||||
Expiration date – March 21, 2021 |
Note_O_Income_Taxes
Note O - Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
NOTE O—INCOME TAXES | |||||||||
There was no provision for federal or state taxes as at December 31, 2013. | |||||||||
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: | |||||||||
2013 | 2012 | ||||||||
Current asset: | |||||||||
Accrued compensation | $ | 49,000 | $ | 128,000 | |||||
Accounts receivable allowance | 8,000 | 8,000 | |||||||
Non-current asset (liability): | |||||||||
Stock-based compensation | 205,000 | 336,000 | |||||||
Basis differences in fixed assets | (19,000 | ) | (10,000 | ) | |||||
Basis differences in intangible assets | (69,000 | ) | (77,000 | ) | |||||
Net operating loss and credit carryforwards | 17,217,000 | 16,143,000 | |||||||
Valuation allowances | (17,391,000 | ) | (16,528,000 | ) | |||||
$ | — | $ | — | ||||||
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, 2013, the Company has federal net operating loss carryforwards of approximately $47,600,000 subject to expiration between 2019 and 2033. 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. | |||||||||
2013 | 2012 | ||||||||
US Federal statutory income tax rate | 34 | % | 34 | % | |||||
Permanent differences | (3 | ) | 831 | ||||||
Effect of net operating loss | (31 | ) | (865 | ) | |||||
Effective tax rate | — | % | — | % | |||||
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 2010 through 2013 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, 2013 and 2012. |
Note_P_Profit_Sharing_Plan
Note P - Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
NOTE P—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, 2013 and 2012. |
Note_Q_Earnings_Per_Share_EPS
Note Q - Earnings Per Share (EPS) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
NOTE Q—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 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. | |||||||||
Years ended December 31, | |||||||||
2013 | 2012 | ||||||||
Stock Options | 1,844,530 | — | |||||||
Warrants | 166,690 | — | |||||||
Potentially dilutive securities | 2,011,220 | — | |||||||
Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares: | |||||||||
Years ended December 31, | |||||||||
2013 | 2012 | ||||||||
Stock options | 410,000 | 3,262,272 | |||||||
Warrants | 38,369,129 | 8,250,000 | |||||||
Total | 38,779,129 | 11,512,272 | |||||||
Note_R_Subsequent_Events
Note R - Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE R—SUBSEQUENT EVENTS | |
The Company has reviewed subsequent events through the date of this filing. | |
On or about March 13, 2014, LifeSouth Community Blood Centers, Inc. filed a lawsuit against the Company in the Superior Court of Monmouth County, New Jersey based on an alleged breach of a license agreement seeking return of all amounts paid under the license in the amount of $718,500. The Company has not been formally served and intends to vigorously defend the action and pursue all available counterclaims. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
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, 2013, we had an accumulated deficit of approximately $55 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, 2013, our total cash and cash equivalents were approximately $2,023,000, as compared to approximately $84,000 at December 31, 2012. | |||||||||||||||||
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 $400,000 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 ("GAAP"), 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 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 vendor-specific objective evidence ("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, 2013 and 2012, cash equivalents consisted of a money market account. | |||||||||||||||||
Receivables, Policy [Policy Text Block] | ' | ||||||||||||||||
Accounts Receivable | |||||||||||||||||
Accounts receivable 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, 2013 and 2012 consisted of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts receivable | $ | 304,551 | $ | 625,310 | |||||||||||||
Allowance for doubtful accounts | (20,526 | ) | (20,526 | ) | |||||||||||||
Accounts receivable, net allowances for doubtful accounts | $ | 284,025 | $ | 604,784 | |||||||||||||
The allowance for doubtful accounts for the years ended December 31, 2013 and 2012 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, 2013 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 20,526 | $ | - | $ | - | $ | 20,526 | |||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 397,526 | $ | - | $ | 377,000 | $ | 20,526 | |||||||||
The allowance at January 1, 2012 was 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 | |||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||||||||||
Equipment and Leasehold Improvements, Intangible Assets and Depreciation and Amortization | |||||||||||||||||
Equipment and leasehold improvements 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, 2013 and 2012 were approximately $178,000 and $114,000, 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 is delivered 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, when the effect of their inclusion is dilutive. See Note Q - 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 $81,642 and $49,842 for the years ended December 31, 2013 and 2012 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, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Selling, general and administrative | $ | 60,151 | $ | 22,502 | |||||||||||||
Research, development and engineering | 21,491 | 27,340 | |||||||||||||||
$ | 81,642 | $ | 49,842 | ||||||||||||||
Valuation Assumptions for Stock Options | |||||||||||||||||
For the years ended December 31, 2013 and 2012, 2,350,000 and 600,000 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, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Risk free interest rate | 0.68 | % | 0.8 | % | |||||||||||||
Expected life of options (in years) | 4.5 | 4.48 | |||||||||||||||
Expected dividends | 0 | % | 0 | % | |||||||||||||
Volatility of stock price | 139 | % | 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 | |||||||||||||||||
Derivatives, Embedded Derivatives [Policy Text Block] | ' | ||||||||||||||||
Derivative Liabilities | |||||||||||||||||
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.” | |||||||||||||||||
Deferred Charges, Policy [Policy Text Block] | ' | ||||||||||||||||
Deferred Costs | |||||||||||||||||
Costs incurred with obtaining and executing debt arrangements are capitalized and amortized to interest expense using the effective interest method over the term of the related debt. | |||||||||||||||||
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] | ' | ||||||||||||||||
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. |
Note_A_The_Company_and_Summary1
Note A - The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts receivable | $ | 304,551 | $ | 625,310 | |||||||||||||
Allowance for doubtful accounts | (20,526 | ) | (20,526 | ) | |||||||||||||
Accounts receivable, net allowances for doubtful accounts | $ | 284,025 | $ | 604,784 | |||||||||||||
Summary of Valuation Allowance [Table Text Block] | ' | ||||||||||||||||
Balance at | Charged to Costs | Deductions From | Balance at | ||||||||||||||
Beginning of Year | and Expenses | Reserves | End of Year | ||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 20,526 | $ | - | $ | - | $ | 20,526 | |||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 397,526 | $ | - | $ | 377,000 | $ | 20,526 | |||||||||
Property, Plant and Equipment, Schedule of Significant Acquisitions and Disposals [Table Text Block] | ' | ||||||||||||||||
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] | ' | ||||||||||||||||
Year ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Selling, general and administrative | $ | 60,151 | $ | 22,502 | |||||||||||||
Research, development and engineering | 21,491 | 27,340 | |||||||||||||||
$ | 81,642 | $ | 49,842 | ||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||
Year ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Risk free interest rate | 0.68 | % | 0.8 | % | |||||||||||||
Expected life of options (in years) | 4.5 | 4.48 | |||||||||||||||
Expected dividends | 0 | % | 0 | % | |||||||||||||
Volatility of stock price | 139 | % | 114 | % |
Note_B_Factoring_Tables
Note B - Factoring (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Note B - Factoring (Tables) [Line Items] | ' | ||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Accounts receivable | $ | 304,551 | $ | 625,310 | |||||||||
Allowance for doubtful accounts | (20,526 | ) | (20,526 | ) | |||||||||
Accounts receivable, net allowances for doubtful accounts | $ | 284,025 | $ | 604,784 | |||||||||
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, 2013 | |||||||||||||
Factored accounts receivable | $ | 9,795 | $ | 7,346 | $ | 2,449 | |||||||
Year Ended December 31, 2012 | |||||||||||||
Factored accounts receivable | $ | 744,315 | $ | 554,411 | $ | 189,904 |
Note_C_Fair_Values_of_Financia1
Note C - Fair Values of Financial Instruments (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Fair Value Disclosures [Abstract] | ' | |||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | ' | |||||
Risk free interest rate | 0.07% | - | 1.38% | |||
Expected term | 0.25% | - | 4.65% | |||
Expected dividends | 0 | |||||
Volatility of stock price | 78.00% | - | 136.20% | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | |||||
Balance, January 1, 2013 | $ | - | ||||
Compensatory Warrant (Note M3) | ||||||
Fair value at issuance | 89,637 | |||||
Gain on derivative | (53,267 | ) | ||||
Value at December 31, 2013 | 36,370 | |||||
Warrants issued Under PI SPA (Note M2c) | ||||||
Fair value at issuance | 325,891 | |||||
Gain on derivative | (119,184 | ) | ||||
Value at December 31, 2013 | 206,707 | |||||
Anti-Dilution Features From July Private Investor SPA (Note M2b) | ||||||
Fair value at issuance | 20,323 | |||||
Loss on derivative | 93,639 | |||||
Reclassification to additional paid-in capital | (113,962 | ) | ||||
Value at December 31, 2013 | - | |||||
Balance, December 31, 2013 | $ | 243,077 |
Note_D_Concentration_of_Risk_T
Note D - Concentration of Risk (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | ||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Customer A | 19 | % | 31 | % | |||||
Customer B | 15 | % | * | % | |||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | ' | ||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Customer C | 50 | % | 74 | % | |||||
Customer D | * | % | 14 | % |
Note_E_Equipment_and_Leashold_1
Note E - Equipment and Leashold Improvements (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Equipment | $ | 378,074 | $ | 302,052 | |||||
Furniture and fixtures | 138,618 | 99,199 | |||||||
Software | 28,624 | 28,624 | |||||||
Leasehold improvements | 53,948 | 39,975 | |||||||
599,264 | 469,850 | ||||||||
Less accumulated depreciation and amortization | (474,202 | ) | (445,583 | ) | |||||
Total | $ | 125,062 | $ | 24,267 |
Note_F_Intangible_Assets_Table
Note F - Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | ||||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | ||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Patents and patents pending | $ | 287,248 | $ | (112,298 | ) | $ | 174,950 | $ | 287,248 | $ | (91,337 | ) | $ | 195,911 | |||||||||||
Total | $ | 287,248 | $ | (112,298 | ) | $ | 174,950 | $ | 287,248 | $ | (91,337 | ) | $ | 195,911 |
Note_G_Accrued_Laibilites_Tabl
Note G - Accrued Laibilites (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Compensation | $ | 11,102 | $ | 243,049 | |||||
Compensated absences | 112,609 | 133,535 | |||||||
Dividends payable | 3,435 | 3,435 | |||||||
Interest payable – related party | - | 47,935 | |||||||
Accrued legal and accounting fees | 84,609 | 84,954 | |||||||
Sales tax payable | 54,382 | 53,043 | |||||||
Other | 72,184 | 27,648 | |||||||
Total | $ | 338,321 | $ | 593,599 |
Note_I_Deferred_Revenue_Tables
Note I - Deferred Revenue (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Maintenance contracts | $ | 528,160 | $ | 496,055 | |||||
Customer deposit | - | 12,465 | |||||||
Total | $ | 528,160 | $ | 508,520 |
Note_L_Commitments_Tables
Note L - Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Years ending December 31, | |||||
2014 | $ | 142,944 | |||
2015 | 143,745 | ||||
2016 | 147,726 | ||||
2017 | 152,359 | ||||
2018 | 103,825 | ||||
$ | 690,599 |
Note_M_Equity_Tables
Note M - Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
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, 2011 | 8,250,000 | $ | 0.3 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Expired | — | — | |||||||||||||||
Outstanding, as of December 31, 2012 | 8,250,000 | $ | 0.3 | 2.97 | |||||||||||||
Granted | 30,419,129 | 0.25 | |||||||||||||||
Exercised | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Expired | — | — | |||||||||||||||
Outstanding, as of December 31, 2013 | 38,669,129 | $ | 0.26 | 2.79 | — | ||||||||||||
Vested or expected to vest at December 31, 2013 | 38,669,129 | $ | 0.26 | 2.79 | — | ||||||||||||
Exercisable at December 31, 2013 | 38,669,129 | $ | 0.26 | 2.79 | — |
Note_N_Stock_Options_Tables
Note N - Stock Options (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||||||||||||||
Number of Options | Weighted | Weighted | Aggregate | ||||||||||||||||||||||||||
average | average | intrinsic | |||||||||||||||||||||||||||
exercise | remaining | ||||||||||||||||||||||||||||
life | |||||||||||||||||||||||||||||
1999 Plan | 2004 Plan | Non Plan | Total | price | (in years) | value | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Granted | — | 1,150,000 | 1,200,000 | 2,350,000 | 0.17 | ||||||||||||||||||||||||
Exercised | — | (179,998 | ) | — | (179,998 | ) | 0.13 | ||||||||||||||||||||||
Forfeited | — | (41,667 | ) | — | (41,667 | ) | 0.16 | ||||||||||||||||||||||
Expired | — | — | — | — | — | ||||||||||||||||||||||||
Outstanding, as of December 31, 2013 | 500,000 | 3,690,607 | 1,200,000 | 5,390,607 | $ | 0.17 | 4.48 | $ | 136,787 | ||||||||||||||||||||
Vested or expected to vest at December 31, 2013 | 4,526,934 | $ | 0.17 | 4.17 | $ | 130,993 | |||||||||||||||||||||||
Exercisable at December 31, 2013 | 2,495,595 | $ | 0.17 | 2.74 | $ | 105,496 | |||||||||||||||||||||||
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 | 4,980,607 | $ | 0.14 | 4.6 | 2,085,595 | $ | 0.12 | ||||||||||||||||||||
0.22 | - | 0.4 | 70,000 | 0.4 | 3.02 | 70,000 | 0.4 | ||||||||||||||||||||||
0.41 | - | 0.68 | 340,000 | 0.46 | 3.02 | 340,000 | 0.46 | ||||||||||||||||||||||
$ 0.07 | - | 0.68 | 5,390,607 | 2,495,595 |
Note_O_Income_Taxes_Tables
Note O - Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Current asset: | |||||||||
Accrued compensation | $ | 49,000 | $ | 128,000 | |||||
Accounts receivable allowance | 8,000 | 8,000 | |||||||
Non-current asset (liability): | |||||||||
Stock-based compensation | 205,000 | 336,000 | |||||||
Basis differences in fixed assets | (19,000 | ) | (10,000 | ) | |||||
Basis differences in intangible assets | (69,000 | ) | (77,000 | ) | |||||
Net operating loss and credit carryforwards | 17,217,000 | 16,143,000 | |||||||
Valuation allowances | (17,391,000 | ) | (16,528,000 | ) | |||||
$ | — | $ | — | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
US Federal statutory income tax rate | 34 | % | 34 | % | |||||
Permanent differences | (3 | ) | 831 | ||||||
Effect of net operating loss | (31 | ) | (865 | ) | |||||
Effective tax rate | — | % | — | % |
Note_Q_Earnings_Per_Share_EPS_
Note Q - Earnings Per Share (EPS) (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||
Years ended December 31, | |||||||||
2013 | 2012 | ||||||||
Stock Options | 1,844,530 | — | |||||||
Warrants | 166,690 | — | |||||||
Potentially dilutive securities | 2,011,220 | — | |||||||
Years ended December 31, | |||||||||
2013 | 2012 | ||||||||
Stock options | 410,000 | 3,262,272 | |||||||
Warrants | 38,369,129 | 8,250,000 | |||||||
Total | 38,779,129 | 11,512,272 |
Note_A_The_Company_and_Summary2
Note A - The Company and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note A - The Company and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Retained Earnings (Accumulated Deficit) | ($54,870,572) | ($52,288,421) | ' |
Cash and Cash Equivalents, at Carrying Value | 2,023,349 | 83,989 | 43,437 |
Operational Costs Per Month | 400,000 | ' | ' |
Allowance for Doubtful Accounts Receivable, Recoveries | 150,000 | 400,000 | ' |
Advertising Expense | 178,000 | 114,000 | ' |
Share-based Compensation | $81,642 | $49,842 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 2,350,000 | 600,000 | ' |
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 $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Accounts Receivables [Abstract] | ' | ' |
Accounts receivable | $304,551 | $625,310 |
Allowance for doubtful accounts | -20,526 | -20,526 |
Accounts receivable, net allowances for doubtful accounts | $284,025 | $604,784 |
Note_A_The_Company_and_Summary4
Note A - The Company and Summary of Significant Accounting Policies (Details) - Allowance for Doubtful Accounts (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Allowance for Doubtful Accounts [Member] | ' | ' |
Valuation Allowance [Line Items] | ' | ' |
Balance at Beginning of Year | $20,526 | $397,526 |
Charged to Costs and Expenses | 0 | 0 |
Deductions From Reserves | 0 | 377,000 |
Balance at End of Year | $20,526 | $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, 2013 | |
Equipment [Member] | Minimum [Member] | ' |
Equipment and leasehold improvements | ' |
Property, Plant, and Equipment Useful Lives | '3 years |
Equipment [Member] | Maximum [Member] | ' |
Equipment and leasehold improvements | ' |
Property, Plant, and Equipment Useful Lives | '5 years |
Furniture and Fixtures [Member] | Minimum [Member] | ' |
Equipment and leasehold improvements | ' |
Property, Plant, and Equipment Useful Lives | '3 years |
Furniture and Fixtures [Member] | Maximum [Member] | ' |
Equipment and leasehold improvements | ' |
Property, Plant, and Equipment Useful Lives | '5 years |
Software Development [Member] | ' |
Equipment and leasehold improvements | ' |
Property, Plant, and Equipment Useful Lives | '3 years |
Leasehold Improvements [Member] | 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, 2013 | Dec. 31, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share Based Compensation | $81,642 | $49,842 |
Selling, General and Administrative Expenses [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share Based Compensation | 60,151 | 22,502 |
Research and Development Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share Based Compensation | $21,491 | $27,340 |
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, 2013 | Dec. 31, 2012 | |
Valuation Assumptions for Stock Options [Abstract] | ' | ' |
Risk free interest rate | 0.68% | 0.80% |
Expected life of options (in years) | '4 years 6 months | '4 years 175 days |
Expected dividends | 0.00% | 0.00% |
Volatility of stock price | 139.00% | 114.00% |
Note_B_Factoring_Details
Note B - Factoring (Details) | 12 Months Ended |
Dec. 31, 2011 | |
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, 2013 | Dec. 31, 2012 |
Due from Factor [Abstract] | ' | ' |
Original Invoice Value | $9,795 | $744,315 |
Factored Amount | 7,346 | 554,411 |
Factored Balance due | $2,449 | $189,904 |
Note_C_Fair_Values_of_Financia2
Note C - Fair Values of Financial Instruments (Details) - Fair Value Measurement of Warrant Liabilities and Derivative Liabilities (Warrant and Derivative Liabilities [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Expected dividends | 0.00% |
Minimum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Risk free interest rate | 0.07% |
Expected term | '3 months |
Volatility of stock price | 78.00% |
Maximum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Risk free interest rate | 1.38% |
Expected term | '4 years 237 days |
Volatility of stock price | 136.20% |
Note_C_Fair_Values_of_Financia3
Note C - Fair Values of Financial Instruments (Details) - Fair Value Measurements Using Significant Unobservable Inputs (Fair Value, Inputs, Level 3 [Member], USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensatory Warrant [Member] | Warrants Issued under PI SPA [Member] | Anti-Dilution Features from July Private Investor SPA [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ' |
Balance, January 1, 2013 | ' | ' | ' | $243,077 | $0 |
Compensatory Warrant (Note M3) | ' | ' | ' | ' | ' |
Fair value at issuance | 89,637 | 325,891 | 20,323 | ' | ' |
Gain (loss) on derivative | -53,267 | -119,184 | 93,639 | ' | ' |
Reclassification to additional paid-in capital | ' | ' | -113,962 | ' | ' |
Balance, December 31, 2013 | $36,370 | $206,707 | $0 | $243,077 | $0 |
Note_D_Concentration_of_Risk_D
Note D - Concentration of Risk (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Risks and Uncertainties [Abstract] | ' | ' |
Cash, FDIC Insured Amount | $1,534,815 | $0 |
Note_D_Concentration_of_Risk_D1
Note D - Concentration of Risk (Details) - Revenue Concentration Risk by Major Customer (Customer Concentration Risk [Member], Sales Revenue, Net [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Customer A [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Customer | 19.00% | 31.00% |
Customer B [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Customer | 15.00% | ' |
Note_D_Concentration_of_Risk_D2
Note D - Concentration of Risk (Details) - Accounts Receivable Concentration Risk by Major Customer (Customer Concentration Risk [Member], Accounts Receivable [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Customer C [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Customer | 50.00% | 74.00% |
Customer D [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Customer | ' | 14.00% |
Note_E_Equipment_and_Leashold_2
Note E - Equipment and Leashold Improvements (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation, Depletion and Amortization, Nonproduction | $28,618 | $28,603 |
Note_E_Equipment_and_Leashold_3
Note E - Equipment and Leashold Improvements (Details) - Summary of Equipment and Leasehold Improvements (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant, and Equipment, Gross | $599,264 | $469,850 |
Less accumulated depreciation and amortization | -474,202 | -445,583 |
Total | 125,062 | 24,267 |
Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant, and Equipment, Gross | 378,074 | 302,052 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant, and Equipment, Gross | 138,618 | 99,199 |
Software Development [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant, and Equipment, Gross | 28,624 | 28,624 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant, and Equipment, Gross | $53,948 | $39,975 |
Note_F_Intangible_Assets_Detai
Note F - Intangible Assets (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure Text Block [Abstract] | ' | ' |
Amortization of Intangible Assets | $20,961 | $11,269 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 21,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 21,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 21,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 21,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 21,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $70,000 | ' |
Note_F_Intangible_Assets_Detai1
Note F - Intangible Assets (Details) - Summary of Intangible Assets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite Lived Intangible Assets Gross Carrying Amount | $287,248 | $287,248 |
Finite Lived Intangible Assets Accumulated Amortization | -112,298 | -91,337 |
Finite Lived Intangible Assets Net Carrying Amount | 174,950 | 195,911 |
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 | -112,298 | -91,337 |
Finite Lived Intangible Assets Net Carrying Amount | $174,950 | $195,911 |
Note_G_Accrued_Laibilites_Deta
Note G - Accrued Laibilites (Details) - Summary of Accrued Liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Accrued Liabilities [Abstract] | ' | ' |
Compensation | $11,102 | $243,049 |
Compensated absences | 112,609 | 133,535 |
Dividends payable | 3,435 | 3,435 |
Interest payable b related party | ' | 47,935 |
Accrued legal and accounting fees | 84,609 | 84,954 |
Sales tax payable | 54,382 | 53,043 |
Other | 72,184 | 27,648 |
Total | $338,321 | $593,599 |
Note_H_Related_Party_Details
Note H - Related Party (Details) (USD $) | 24 Months Ended | ||
Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
Monthly Payment to Mr. Colatosti [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | |
Note H - Related Party (Details) [Line Items] | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | $5,000 | ' | ' |
Accounts Payable, Related Parties | ' | $50,000 | $50,000 |
Note_I_Deferred_Revenue_Detail
Note I - Deferred Revenue (Details) - Components of Deferred Revenue (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred Revenue, Current | $528,160 | $508,520 |
Maintenance Contracts [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred Revenue, Current | 528,160 | 496,055 |
Customer Deposit [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred Revenue, Current | ' | $12,465 |
Note_J_Notes_Payable_Details
Note J - Notes Payable (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Feb. 26, 2013 | Nov. 22, 2013 | Dec. 31, 2010 | |
Accounts Payable and Accrued Liabilities [Member] | Accounts Payable and Accrued Liabilities [Member] | Colatosti [Member] | Colatosti [Member] | Colatosti Note [Member] | Colatosti Note [Member] | Colatosti Note [Member] | InterDigital Note [Member] | InterDigital Note [Member] | InterDigital Note [Member] | ||
Colatosti Note [Member] | Colatosti Note [Member] | Convertible Promissory Note [Member] | Secured Promissory Note [Member] | ||||||||
Note J - Notes Payable (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | 7.00% | 7.00% | ' | ' | ' | 7.00% | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | $64,878 | ' | ' | $350,804 | ' | ' | ' |
Notes Payable | ' | ' | ' | ' | ' | 0 | 321,428 | ' | ' | ' | ' |
Interest Payable | ' | 0 | 47,935 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from (Payments for) Other Financing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 497,307 |
Debt Instrument Default Rate While a Nonpayment Defaults Continuing | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' |
Repayments of Notes Payable | 497,307 | ' | ' | ' | ' | ' | ' | ' | ' | 497,307 | ' |
Debt Issuance Cost | ' | ' | ' | ' | ' | ' | ' | ' | $57,202 | ' | ' |
Note_K_Segment_Information_Det
Note K - Segment Information (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note K - Segment Information (Details) [Line Items] | ' | ' |
Number of Reportable Segments | 1 | ' |
Geographic Concentration Risk [Member] | North America [Member] | Sales Revenue, Net [Member] | ' | ' |
Note K - Segment Information (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 97.00% | 93.00% |
Note_L_Commitments_Details
Note L - Commitments (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure Text Block Supplement [Abstract] | ' | ' |
Operating Leases, Rent Expense | $159,000 | $169,000 |
Note_L_Commitments_Details_Fut
Note L - Commitments (Details) - Future Minimum Rental Commitments of Non-Cancelable Operating Leases (USD $) | Dec. 31, 2013 |
Future Minimum Rental Commitments of Non-Cancelable Operating Leases [Abstract] | ' |
2014 | $142,944 |
2015 | 143,745 |
2016 | 147,726 |
2017 | 152,359 |
2018 | 103,825 |
$690,599 |
Note_M_Equity_Details
Note M - Equity (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 11, 2014 | Mar. 11, 2014 | Jan. 27, 2014 | Dec. 02, 2013 | Nov. 08, 2013 | Aug. 15, 2013 | Feb. 26, 2013 | Feb. 26, 2013 | Nov. 08, 2013 | Nov. 08, 2013 | Nov. 08, 2013 | Feb. 26, 2013 | Nov. 08, 2013 | Nov. 08, 2013 | Oct. 25, 2013 | Jul. 23, 2013 | Nov. 08, 2013 | Dec. 31, 2013 | Nov. 08, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Amended [Member] | Employee Stock Option [Member] | InterDigital SPA [Member] | InterDigital SPA [Member] | InterDigital SPA [Member] | Private Investor SPA [Member] | Private Investor SPA [Member] | Private Investor SPA [Member] | Private Investor SPA [Member] | Private Investor SPA [Member] | July Private Investor SPA [Member] | July Private Investor SPA [Member] | July Private Investor SPA [Member] | Common Stock [Member] | Common Stock [Member] | Placement Agent Warrants [Member] | Anti-Dilution Features from July Private Investor SPA [Member] | Anti-Dilution Features from July Private Investor SPA [Member] | Warrants Issued under PI SPA [Member] | Compensatory Warrant [Member] | February 2013 Private Offering [Member] | February 2013 Private Offering [Member] | July 2013 Private Offering [Member] | July 2013 Private Offering [Member] | November 2013 Private Offering [Member] | October and November 2013 Private Offering [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Common Stock [Member] | Warrant [Member] | July Private Investor SPA [Member] | Contracted Compensation [Member] | Common Stock [Member] | Warrant [Member] | Minimum [Member] | Rights [Member] | Rights [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Rights [Member] | ||||||||||||||||||||||
Rights [Member] | ||||||||||||||||||||||||||||||||||
Note M - 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Outstanding | 115,842,315 | 78,155,413 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | 65,733,688 | ' | ' | ' | ' | ' | ' | ' | ' | 4,026,935 | ' | 24,647,337 | ' | 24,647,337 | 5,000,000 | ' | 54,614 | 357,452 | 3,500,006 | ' | 37,174,277 | ' | ' | ' | ' | ' | 9,026,935 | 3,500,006 | 3,500,006 | 412,067 | 24,647,337 | 24,647,337 | ' | ' |
Sale of Stock, Price Per Share (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | $0.10 | ' | ' | $0.15 | $0.10 | $0.15 | $0.27 | $0.27 | $0.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues (in Dollars) | $5,649,794 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $402,693 | ' | ' | $3,697,100 | ' | ' | ' | ' | $1,050,000 | ' | $3,718 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase Exercise or Conversion Price Per Share Threshold of Common Stock (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | $0.10 | ' | ' | ' | ' | ' | ' | ' | $0.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Private Placement (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs (in Dollars) | 648,116 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,176 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Outstanding | 38,669,129 | 8,250,000 | 8,250,000 | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,006 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | ' | ' | ' | ' | ' | $0.30 | $0.25 | ' | $0.10 | ' | ' | ' | $0.25 | ' | ' | ' | ' | ' | $0.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Stock Issuance Costs (in Dollars) | 575,681 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 466,346 | ' | ' | ' | ' | 135,594 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative Liability (in Dollars) | 20,323 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants and Rights Outstanding (in Dollars) | 243,077 | ' | ' | ' | ' | ' | ' | ' | 89,637 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 93,639 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | ' | ' | ' | 153,659 | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | 24,647,337 | ' | ' | ' | ' | ' | ' | ' | ' | 1,971,786 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Share) | ' | ' | ' | ' | ' | $0.30 | $0.25 | ' | $0.10 | ' | ' | ' | $0.25 | ' | ' | ' | ' | ' | $0.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commissions and Fees, Percent of Gross Proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,323 | ' | 325,891 | 89,637 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 93,639 | ' | -119,184 | -53,267 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 206,707 | 36,370 | ' | ' | ' | ' | ' | ' | 243,077 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 179,998 | ' | ' | ' | ' | ' | ' | 179,998 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,558 | 100,558 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Assumptions, Risk Free Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | 0.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Assumption, Stock Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Assumptions, Expected Volatility Rate | ' | ' | ' | ' | ' | ' | ' | ' | 134.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Tax Liabilities, Deferred Expense, Deferred Financing Costs (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Warrant Issued (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | 39,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Repurchase of Warrants (in Dollars) | ' | ' | ' | ' | ' | $150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_M_Equity_Details_Summary_
Note M - Equity (Details) - Summary of Warrant Activity (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of Warrant Activity [Abstract] | ' | ' | ' |
Outstanding Warrants | 38,669,129 | 8,250,000 | 8,250,000 |
Outstanding Warrants Weighted-average Exercise Price | $0.26 | $0.30 | $0.30 |
Outstanding Warrants Weighted-average Remaining Life | '2 years 288 days | '2 years 354 days | ' |
Vested or expected to vest at December 31, 2013 | 38,669,129 | ' | ' |
Vested or expected to vest at December 31, 2013 | $0.26 | ' | ' |
Vested or expected to vest at December 31, 2013 | '2 years 288 days | ' | ' |
Exercisable at December 31, 2013 | 38,669,129 | ' | ' |
Exercisable at December 31, 2013 | $0.26 | ' | ' |
Exercisable at December 31, 2013 | '2 years 288 days | ' | ' |
Warrants Granted | 30,419,129 | ' | ' |
Warrants Granted Weighted-average Exercise Price | $0.25 | ' | ' |
Note_N_Stock_Options_Details
Note N - Stock Options (Details) (USD $) | 12 Months Ended | 0 Months Ended | 8 Months Ended | 0 Months Ended | 12 Months Ended | 8 Months Ended | 0 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 13, 2014 | Dec. 31, 2013 | Aug. 31, 2009 | Dec. 31, 2013 | Aug. 31, 2009 | Oct. 12, 2004 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2009 | Oct. 12, 2004 | Dec. 31, 2013 | |
Subsequent Event [Member] | Closing Stock Price [Member] | Nonstatutory Stock [Member] | In-The-Money Options [Member] | 1999 Stock Option Plan [Member] | 2004 Stock Option Plan [Member] | 2004 Stock Option Plan [Member] | 2004 Stock Option Plan [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | |||
1999 Stock Option Plan [Member] | 1999 Stock Option Plan [Member] | 2004 Stock Option Plan [Member] | |||||||||||
Note N - 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 175 days | ' | ' | ' | '10 years | ' | ' | '10 years | ' | ' | ' | ' | ' |
Share Price (in Dollars per share) | ' | ' | ' | $0.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in Shares) | 2,495,595 | ' | ' | ' | ' | 1,820,595 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $0.15 | $0.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $31,643 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 42,058 | 70,026 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $335,020 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '2 years 36 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 2,350,000 | 600,000 | 3,420,000 | ' | ' | ' | ' | ' | 1,150,000 | 600,000 | ' | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $0.17 | $0.09 | $0.21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years |
Note_N_Stock_Options_Details_O
Note N - Stock Options (Details) - Option Activity (USD $) | 0 Months Ended | 12 Months Ended | ||
Oct. 12, 2004 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note N - Stock Options (Details) - Option Activity [Line Items] | ' | ' | ' | ' |
Outstanding | ' | 5,390,607 | 3,262,272 | 4,404,412 |
Outstanding Weighted-average Exercise Price (in Dollars per share) | ' | 0.17 | 0.16 | 0.22 |
Outstanding Weighted-average Remaining Life | ' | '4 years 175 days | ' | ' |
Outstanding Aggregate Intrinsic Value (in Dollars) | ' | 136,787 | ' | ' |
Vested or expected to vest at December 31, 2013 | ' | 4,526,934 | ' | ' |
Vested or expected to vest at December 31, 2013 (in Dollars per share) | ' | 0.17 | ' | ' |
Vested or expected to vest at December 31, 2013 | ' | '4 years 62 days | ' | ' |
Vested or expected to vest at December 31, 2013 (in Dollars) | ' | 130,993 | ' | ' |
Exercisable at December 31, 2013 | ' | 2,495,595 | ' | ' |
Exercisable at December 31, 2013 (in Dollars per share) | ' | 0.17 | ' | ' |
Exercisable at December 31, 2013 | ' | '2 years 270 days | ' | ' |
Exercisable at December 31, 2013 (in Dollars) | ' | 105,496 | ' | ' |
Granted | ' | 2,350,000 | 600,000 | ' |
Granted Weighted-average Exercise Price (in Dollars per share) | ' | 0.17 | 0.09 | ' |
Exercised | ' | -179,998 | ' | ' |
Exercised Weighted-average Exercise Price (in Dollars per share) | ' | 0.13 | ' | ' |
Forfeited | ' | -41,667 | -530,001 | ' |
Forfeited Weighted-average Exercise Price (in Dollars per share) | ' | 0.16 | 0.09 | ' |
Expired | ' | ' | -1,212,139 | ' |
Expired Weighted-average Exercise Price (in Dollars per share) | ' | ' | 0.3 | ' |
1999 Stock Option Plan [Member] | ' | ' | ' | ' |
Note N - Stock Options (Details) - Option Activity [Line Items] | ' | ' | ' | ' |
Outstanding | ' | 500,000 | 500,000 | 500,000 |
2004 Stock Option Plan [Member] | ' | ' | ' | ' |
Note N - Stock Options (Details) - Option Activity [Line Items] | ' | ' | ' | ' |
Outstanding | ' | 3,690,607 | 2,762,272 | 2,831,836 |
Outstanding Weighted-average Remaining Life | '10 years | ' | ' | ' |
Granted | ' | 1,150,000 | 600,000 | ' |
Exercised | ' | -179,998 | ' | ' |
Forfeited | ' | -41,667 | -164,623 | ' |
Expired | ' | ' | -504,941 | ' |
Non Plan [Member] | ' | ' | ' | ' |
Note N - Stock Options (Details) - Option Activity [Line Items] | ' | ' | ' | ' |
Outstanding | ' | 1,200,000 | ' | 1,072,576 |
Granted | ' | 1,200,000 | ' | ' |
Forfeited | ' | ' | -365,378 | ' |
Expired | ' | ' | -707,198 | ' |
Note_N_Stock_Options_Details_O1
Note N - Stock Options (Details) - Options Outstanding and Exercisable (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Note N - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' |
Options Exercisable Weighted-average Exercise Price | $0.17 |
$0.08 - $0.21 [Member] | ' |
Note N - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' |
Lower Range of Exercise Prices | $0.08 |
Upper Range of Exercise Prices | $0.21 |
Options Outstanding Number of Shares (in Shares) | 4,980,607 |
Options Outstanding Weighted-average Exercise Price | $0.14 |
Options Outstanding Weighted-average Remaining Life | '4 years 219 days |
Options Exercisable Number Exercisable (in Shares) | 2,085,595 |
Options Exercisable Weighted-average Exercise Price | $0.12 |
$0.22 - $0.40 [Member] | ' |
Note N - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' |
Lower Range of Exercise Prices | $0.22 |
Upper Range of Exercise Prices | $0.40 |
Options Outstanding Number of Shares (in Shares) | 70,000 |
Options Outstanding Weighted-average Exercise Price | $0.40 |
Options Outstanding Weighted-average Remaining Life | '3 years 7 days |
Options Exercisable Number Exercisable (in Shares) | 70,000 |
Options Exercisable Weighted-average Exercise Price | $0.40 |
$0.41 - $0.68 [Member] | ' |
Note N - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' |
Lower Range of Exercise Prices | $0.41 |
Upper Range of Exercise Prices | $0.68 |
Options Outstanding Number of Shares (in Shares) | 340,000 |
Options Outstanding Weighted-average Exercise Price | $0.46 |
Options Outstanding Weighted-average Remaining Life | '3 years 7 days |
Options Exercisable Number Exercisable (in Shares) | 340,000 |
Options Exercisable Weighted-average Exercise Price | $0.46 |
$0.07 - $0.68 [Member] | ' |
Note N - Stock Options (Details) - Options Outstanding and Exercisable [Line Items] | ' |
Lower Range of Exercise Prices | $0.07 |
Upper Range of Exercise Prices | $0.68 |
Options Outstanding Number of Shares (in Shares) | 5,390,607 |
Options Exercisable Number Exercisable (in Shares) | 2,495,595 |
Note_O_Income_Taxes_Details
Note O - Income Taxes (Details) (USD $) | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $47,600,000 |
Note_O_Income_Taxes_Details_Co
Note O - Income Taxes (Details) - Components of Deferred Taxes (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current asset: | ' | ' |
Accrued compensation | $49,000 | $128,000 |
Accounts receivable allowance | 8,000 | 8,000 |
Non-current asset (liability): | ' | ' |
Stock-based compensation | 205,000 | 336,000 |
Basis differences in fixed assets | -19,000 | -10,000 |
Basis differences in intangible assets | -69,000 | -77,000 |
Net operating loss and credit carryforwards | 17,217,000 | 16,143,000 |
Valuation allowances | ($17,391,000) | ($16,528,000) |
Note_O_Income_Taxes_Details_Re
Note O - Income Taxes (Details) - Reconciliation of the Effective Income Tax Rate to US Federal Statutory Income Tax Rate | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of the Effective Income Tax Rate to US Federal Statutory Income Tax Rate [Abstract] | ' | ' |
US Federal statutory income tax rate | 34.00% | 34.00% |
Permanent differences | -3.00% | 831.00% |
Effect of net operating loss | -31.00% | -865.00% |
Note_P_Profit_Sharing_Plan_Det
Note P - Profit Sharing Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Defined Benefit Plan, Contributions by Employer | $0 | $0 |
Note_Q_Earnings_Per_Share_EPS_1
Note Q - Earnings Per Share (EPS) (Details) - Securities Excluded from the Diluted Per Share Calculation | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Exercise Price Less Than Market Price of Common Shares [Member] | Equity Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive Securities | 1,844,530 | ' |
Exercise Price Less Than Market Price of Common Shares [Member] | Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive Securities | 166,690 | ' |
Exercise Price Less Than Market Price of Common Shares [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive Securities | 2,011,220 | ' |
Exercise Price Greater Than Average Market Price of Common Shares [Member] | Equity Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive Securities | 410,000 | 3,262,272 |
Exercise Price Greater Than Average Market Price of Common Shares [Member] | Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive Securities | 38,369,129 | 8,250,000 |
Exercise Price Greater Than Average Market Price of Common Shares [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive Securities | 38,779,129 | 11,512,272 |
Note_R_Subsequent_Events_Detai
Note R - Subsequent Events (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
Mar. 13, 2014 | |
Subsequent Event [Member] | ' |
Note R - Subsequent Events (Details) [Line Items] | ' |
Loss Contingency, Damages Sought, Value | $718,500 |