Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 13, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'BIO KEY INTERNATIONAL INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 116,052,320 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001019034 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
ASSETS | ' | ' |
Cash and cash equivalents | $517,759 | $2,023,349 |
Accounts receivable, net of allowance for doubtful accounts of $20,526 at June 30, 2014 and December 31, 2013 | 384,819 | 284,025 |
Due from factor | 21,127 | 2,449 |
Inventory | 22,249 | 9,376 |
Prepaid expenses and other | 74,191 | 73,482 |
Total current assets | 1,020,145 | 2,392,681 |
Equipment and leasehold improvements, net | 110,547 | 125,062 |
Deposits and other assets | 8,712 | 8,712 |
Intangible assets—less accumulated amortization | 168,147 | 174,950 |
Total non-current assets | 287,406 | 308,724 |
TOTAL ASSETS | 1,307,551 | 2,701,405 |
LIABILITIES | ' | ' |
Accounts payable | 352,062 | 540,912 |
Accrued liabilities | 377,645 | 338,321 |
Deferred revenue | 505,724 | 528,160 |
Total current liabilities | 1,235,431 | 1,407,393 |
Warrant liabilities | 307,219 | 243,077 |
TOTAL LIABILITIES | 1,542,650 | 1,650,470 |
STOCKHOLDERS’ EQUITY (DEFICIT): | ' | ' |
Common stock — authorized, 170,000,000 shares; issued and outstanding; 116,052,320 of $.0001 par value at June 30, 2014 and 115,842,315 as of December 31, 2013 | 11,605 | 11,584 |
Additional paid-in capital | 55,949,368 | 55,909,923 |
Accumulated deficit | -56,196,072 | -54,870,572 |
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) | -235,099 | 1,050,935 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $1,307,551 | $2,701,405 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Accounts receivable, allowance for doubtful accounts (in Dollars) | $20,526 | $20,526 |
Common stock, shares authorized | 170,000,000 | 170,000,000 |
Common stock, shares issued | 116,052,320 | 115,842,315 |
Common stock, shares outstanding | 116,052,320 | 115,842,315 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues | ' | ' | ' | ' |
Services | $281,711 | $257,452 | $530,942 | $534,412 |
License fees and other | 121,078 | 164,805 | 1,239,369 | 692,488 |
402,789 | 422,257 | 1,770,311 | 1,226,900 | |
Costs and other expenses | ' | ' | ' | ' |
Cost of services | 113,105 | 28,150 | 152,280 | 68,864 |
Cost of license fees and other | 48,146 | 66,815 | 126,195 | 143,914 |
161,251 | 94,965 | 278,475 | 212,778 | |
Gross Profit | 241,538 | 327,292 | 1,491,836 | 1,014,122 |
Operating Expenses | ' | ' | ' | ' |
Selling, general and administrative | 895,147 | 581,309 | 1,752,143 | 1,313,385 |
Research, development and engineering | 470,888 | 286,166 | 957,545 | 548,975 |
1,366,035 | 867,475 | 2,709,688 | 1,862,360 | |
Operating loss | -1,124,497 | -540,183 | -1,217,852 | -848,238 |
Other income (expenses) | ' | ' | ' | ' |
Interest income (expense) | 2 | -14,648 | 3 | -22,171 |
Gain (loss) on derivative liabilities | 98,209 | ' | -106,739 | ' |
Income taxes | ' | ' | -912 | ' |
Total other (income) expenses | 98,211 | -14,648 | -107,648 | -22,171 |
Net loss | ($1,026,286) | ($554,831) | ($1,325,500) | ($870,409) |
Basic and Diluted Loss per Common Share (in Dollars per share) | ($0.01) | ($0.01) | ($0.01) | ($0.01) |
Weighted Average Shares Outstanding: | ' | ' | ' | ' |
Basic and diluted (in Shares) | 116,003,664 | 87,182,348 | 115,940,414 | 84,339,612 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($1,325,500) | ($870,409) |
Adjustments to reconcile net loss to cash used in operating activities: | ' | ' |
Depreciation | 20,016 | 11,600 |
Amortization | ' | ' |
Intangible assets | 6,803 | 5,635 |
Deferred costs | ' | 6,730 |
Loss on derivative liabilities | 106,739 | ' |
Share-based compensation | 132,218 | 40,017 |
Exercise of stock options | 14,651 | ' |
Change in assets and liabilities: | ' | ' |
Accounts receivable trade | -100,794 | 464,536 |
Factor | -18,678 | 231,279 |
Inventory | -12,873 | -2,339 |
Prepaid expenses and other | -709 | -12,508 |
Accounts payable | -188,850 | -499,792 |
Accrued liabilities | 39,324 | -187,698 |
Deferred revenue | -22,436 | -132,811 |
Net cash used for operating activities | -1,350,089 | -945,760 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -5,501 | -13,849 |
Net cash used for investing activities | -5,501 | -13,849 |
CASH FLOW FROM FINANCING ACTIVITIES: | ' | ' |
Repurchase of outstanding warrants | -150,000 | ' |
Issuance of common stock | ' | 902,693 |
Repayment of note payable – related party | ' | -321,428 |
Proceeds from issuance of note payable | ' | 497,307 |
Costs to issue common stock | ' | -46,176 |
Financing costs for note payable | ' | -57,203 |
Net cash provided by (used for) financing activities | -150,000 | 975,193 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -1,505,590 | 15,584 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,023,349 | 83,989 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 517,759 | 99,573 |
Cash paid for: | ' | ' |
Interest | ' | $51,494 |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Basis of Accounting [Text Block] | ' |
1. BASIS OF PRESENTATION | |
The accompanying unaudited interim condensed consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiary (collectively, the “Company”) and are stated in conformity with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Pursuant to such rules and regulations, certain financial information and footnote disclosures normally included in the financial statements have been condensed or omitted. Significant intercompany accounts and transactions have been eliminated in consolidation. | |
In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all necessary adjustments, consisting only of those of a recurring nature, and disclosures to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented. The balance sheet at December 31, 2013 was derived from the audited financial statements, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America. These unaudited interim condensed consolidated financial statements should be read in conjunction with the financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (the “Form 10-K”), filed with the SEC on March 31, 2014. | |
Recently Issued Accounting Pronouncements | |
Effective January 1, 2014, the Company prospectively adopted 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 adoption of ASU 2013-11 did not have a material effect on its consolidated financial statements. | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers”. The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The guidance will also require that certain contract costs incurred to obtain or fulfill a contract, such as sales commissions, be capitalized as an asset and amortized as revenue is recognized. Adoption of the new rules could affect the timing of both revenue recognition and the incurrence of contract costs for certain transactions. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The new standard is effective for reporting periods beginning after December 15, 2016 and early adoption is not permitted. For the Company, the new standard will be effective January 1, 2017. The Company is currently evaluating the impact of adoption and the implementation approach to be used. | |
Management does not believe that any other recently issued, but not yet effective, accounting standard if currently adopted would have a material effect on the accompanying consolidated financial statements. |
Note_2_Going_Concern
Note 2 - Going Concern | 6 Months Ended |
Jun. 30, 2014 | |
Going Concern [Abstract] | ' |
Going Concern [Text Block] | ' |
2. GOING CONCERN | |
The Company has incurred significant losses to date and at June 30, 2014, had an accumulated deficit of approximately $56 million. In addition, broad commercial acceptance of the Company’s technology is critical to the Company’s success and ability to generate future revenues. At June 30, 2014, the Company’s total cash and cash equivalents were approximately $518,000, as compared to approximately $2,023,000 at December 31, 2013. | |
The Company has financed itself in the past through access to the capital markets by issuing secured and convertible debt securities, convertible preferred stock, common stock, and through factoring receivables. The Company currently requires approximately $475,000 per month to conduct operations, a monthly amount that it has been unable to achieve consistently through revenue generation. | |
If the Company is unable to generate sufficient revenue to meet its goals, it will need to obtain additional third-party financing to (i) conduct the sales, marketing and technical support necessary to execute its plan to substantially grow operations, increase revenue, and serve a significant customer base; and (ii) provide working capital. No assurance can be given that any form of additional financing will be available on terms acceptable to the Company, that adequate financing will be obtained by the Company, in order to meet its needs, or that such financing would not be dilutive to existing shareholders. | |
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern, and assumes continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The matters described in the preceding paragraphs raise substantial doubt about the Company’s ability to continue as a going concern. Recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, and become profitable in its future operations. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. |
Note_3_Share_Based_Compensatio
Note 3 - Share Based Compensation | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Business Description and Accounting Policies [Text Block] | ' | ||||||||
3. SHARE BASED COMPENSATION | |||||||||
The following table presents share-based compensation expenses included in the Company’s unaudited condensed interim consolidated statements of operations: | |||||||||
Three Months | Three Months | ||||||||
ended June 30, | ended June 30, | ||||||||
2014 | 2013 | ||||||||
Selling, general and administrative | $ | 18,985 | $ | 20,156 | |||||
Research, development and engineering | 27,460 | 7,414 | |||||||
$ | 46,445 | $ | 27,570 | ||||||
Six Months ended | Six Months ended | ||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
Selling, general and administrative | $ | 93,826 | $ | 31,277 | |||||
Research, development and engineering | 38,392 | 8,740 | |||||||
$ | 132,218 | $ | 40,017 | ||||||
Note_4_Earnings_Per_Share_Comm
Note 4 - Earnings Per Share Common Stock (EPS) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
4. EARNINGS (LOSS) PER SHARE COMMON STOCK (“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 reconciliation of the numerators of the basic and diluted EPS calculations was as follows for both of the following three and six month periods ended June 30: | |||||||||||||||||
Three Months ended June 30, | Six Months ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic Numerator: | |||||||||||||||||
Net (loss) available to common stockholders | $ | (1,026,286 | ) | $ | (554,831 | ) | $ | (1,325,500 | ) | $ | (870,409 | ) | |||||
Basic Denominator | 116,003,664 | 87,182,348 | 115,940,414 | 84,339,612 | |||||||||||||
Per Share Amount | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | |||||||||
The following table sets forth the options and warrants which were excluded from the diluted per share calculation even though the exercise prices were less than the average market price of the common shares because the effect of including these potential shares was antidilutive due to the net losses for the three and six months ended June 30, 2014 and 2013: | |||||||||||||||||
Three Months ended | Six Months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock options | 2,938,325 | 2,157,965 | 2,069,471 | 1,407,814 | |||||||||||||
Warrants | 1,542,245 | - | - | - | |||||||||||||
Total | 4,480,570 | 2,157,965 | 2,069,471 | 1,407,814 | |||||||||||||
Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares: | |||||||||||||||||
Three Months ended | Six Months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock options | 410,000 | 410,000 | 410,000 | 510,000 | |||||||||||||
Warrants | 250,000 | 8,250,000 | 30,369,129 | 8,250,000 | |||||||||||||
Total | 660,000 | 8,660,000 | 30,779,129 | 8,760,000 | |||||||||||||
Note_5_Stockholders_Equity
Note 5 - Stockholders' Equity | 6 Months Ended |
Jun. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
5. STOCKHOLDERS’ DEFICIT | |
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.” | |
Securities Purchase Agreements dated October 25, 2013 and November 8, 2013 | |
The Company issued common stock (the “Shares”) and warrants (the “Warrants”) pursuant to a series of Private Investors Securities Purchase Agreements (the “PI SPA”) on October 25, 2013 and November 8, 2013. Each unit had a purchase price of $0.15 and consisted of one Share and one Warrant. The Warrants are immediately exercisable at an exercise price of $0.25 per share, have a term of three years, and were exercisable on a cashless basis if at any time following the nine month anniversary of the issuance date, there was not an effective registration statement covering the public resale of the shares of Common Stock underlying the Warrants. 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. | |
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. | |
2. The stock price of the Company’s common stock. | |
3. The unavailability of enough 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 June 30, 2014. At such date, the Company determined that it was still highly unlikely that an equity financing would occur prior to August 8, 2014, the expiration date of the down round feature. Such conclusion was based upon the discussion noted above. | |
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 Placement Agent Warrants are considered to be derivatives and the Company recorded a warrant liability on the condensed consolidated balance sheet. The Company recorded the warrant liabilities equal to their estimated fair value in 2013. The Company is required to mark-to-market the warrant liability at the end of each reporting period. For the three months ended June 30, 2014, the Company recorded a gain on the change in fair value of the cashless exercise feature of $98,209. For the six months ended June 30, 2014, the Company recorded a net loss on the change in fair value of the cashless exercise feature of $100,512. At June 30, 2014 and December 31, 2013, the fair value of the cashless exercise feature was $307,219 and $206,707, respectively. | |
Warrants | |
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 “Compensatory Warrant”). On March 11, 2014, the warrant was exercised resulting in the issuance of 153,659 shares of common stock. | |
The cashless exercise feature contained in the warrant was considered to be a derivative and the Company recorded a warrant liability on the condensed consolidated balance sheet. The Company recorded the warrant liability equal to its estimated fair value. The Company was required to mark-to-market the warrant liabilities at the end of each reporting period. As the warrant was exercised, the Company marked-to-market the warrant on the day before the exercise and such value was then transferred to additional paid-in capital. For the six months ended June 30, 2014, the Company recorded a loss on the change in fair value of the cashless exercise feature of $6,211. $42,581, the value of the cashless exercise feature as of March 10, 2014, was transferred to additional paid-in capital. The fair value of the cashless exercise feature was $36,370 as of December 31, 2013. | |
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. | |
Issuances and Exercise of Stock Options | |
During the three and six months ended June 30, 2014, the Company granted 0 and 3,420,000 stock options, respectively. The options are exercisable for a term of seven years and vest in equal installments over a three-year period commencing on the date of grant. 2,970,000 of the options are exercisable at $0.205 per share and 350,000 of the options are exercisable at $0.17 per share. | |
During both the three and six months ended June 30, 2014, the Company issued 56,346 shares of common stock for the cashless exercise of stock options. |
Note_6_Segment_Information
Note 6 - Segment Information | 6 Months Ended |
Jun. 30, 2014 | |
Segment Reporting [Abstract] | ' |
Segment Reporting Disclosure [Text Block] | ' |
6. 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 62% and 96% of the Company’s total sales for the three months ended June 30, 2014 and 2013, respectively, and were approximately 29% and 97% of the Company’s total sales for the six months ended June 30, 2014 and 2013, respectively. |
Note_7_Fair_Values_of_Financia
Note 7 - Fair Values of Financial Instruments | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Fair Value Disclosures [Abstract] | ' | ||||
Fair Value Disclosures [Text Block] | ' | ||||
7. FAIR VALUES OF FINANCIAL INSTRUMENTS | |||||
Cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, and notes payable, are carried at, or approximate, fair value because of their short-term nature. | |||||
The fair value of the warrant liabilities were measured using the following assumptions: | |||||
Risk-free interest rate | 0.60% | ||||
Expected term | 2.32 | – | 2.36 | ||
Expected dividends | 0 | ||||
Volatility of stock price | 114.50% | – | 114.70% | ||
The warrant 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. | |||||
Compensatory Warrant | |||||
Fair value at January 1, 2014 | $ | 36,370 | |||
Loss on derivative | 6,211 | ||||
Transfer to additional paid-in-capital | (42,581 | ) | |||
Value at June 30, 2014 | - | ||||
Warrant issued under PI SPA | |||||
Fair value at January 1, 2014 | 206,707 | ||||
Loss on derivative | 100,512 | ||||
Value at June 30, 2014 | 307,219 | ||||
Balance, June 30, 2014 | $ | 307,219 | |||
Note_8_Major_Customers_and_Acc
Note 8 - Major Customers and Accounts Receivable | 6 Months Ended |
Jun. 30, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Concentration Risk Disclosure [Text Block] | ' |
8. MAJOR CUSTOMERS AND ACCOUNTS RECEIVABLE | |
For the three months ended June 30, 2014 and 2013, two customers accounted for 55%, and three customers accounted for 51% of revenue, respectively. For the six months ended June 30, 2014 and 2013, two customers accounted for 73%, and two customers accounted for 41% of revenue, respectively. | |
At June 30, 2014, two customers accounted for 56% of accounts receivable. At December 31, 2013, one customer accounted for 50% of accounts receivable. |
Note_9_Contingency
Note 9 - Contingency | 6 Months Ended |
Jun. 30, 2014 | |
Loss Contingency [Abstract] | ' |
Contingencies Disclosure [Text Block] | ' |
9. CONTINGENCY | |
On or about March 13, 2014, LifeSouth Community Blood Centers, Inc. (“LifeSouth”) 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 denied all claims and asserted a counterclaim against LifeSouth for non-payment of support and maintenance service fees. Discovery has commenced and is proceeding. |
Note_10_Subsequent_Events
Note 10 - Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
10. SUBSEQUENT EVENTS | |
The Company has reviewed subsequent events through the date of filing. |
Note_3_Share_Based_Compensatio1
Note 3 - Share Based Compensation (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||
Three Months | Three Months | ||||||||
ended June 30, | ended June 30, | ||||||||
2014 | 2013 | ||||||||
Selling, general and administrative | $ | 18,985 | $ | 20,156 | |||||
Research, development and engineering | 27,460 | 7,414 | |||||||
$ | 46,445 | $ | 27,570 | ||||||
Six Months ended | Six Months ended | ||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
Selling, general and administrative | $ | 93,826 | $ | 31,277 | |||||
Research, development and engineering | 38,392 | 8,740 | |||||||
$ | 132,218 | $ | 40,017 |
Note_4_Earnings_Per_Share_Comm1
Note 4 - Earnings Per Share Common Stock (EPS) (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Three Months ended June 30, | Six Months ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic Numerator: | |||||||||||||||||
Net (loss) available to common stockholders | $ | (1,026,286 | ) | $ | (554,831 | ) | $ | (1,325,500 | ) | $ | (870,409 | ) | |||||
Basic Denominator | 116,003,664 | 87,182,348 | 115,940,414 | 84,339,612 | |||||||||||||
Per Share Amount | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | |||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||||||||||
Three Months ended | Six Months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock options | 2,938,325 | 2,157,965 | 2,069,471 | 1,407,814 | |||||||||||||
Warrants | 1,542,245 | - | - | - | |||||||||||||
Total | 4,480,570 | 2,157,965 | 2,069,471 | 1,407,814 | |||||||||||||
Three Months ended | Six Months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock options | 410,000 | 410,000 | 410,000 | 510,000 | |||||||||||||
Warrants | 250,000 | 8,250,000 | 30,369,129 | 8,250,000 | |||||||||||||
Total | 660,000 | 8,660,000 | 30,779,129 | 8,760,000 |
Note_7_Fair_Values_of_Financia1
Note 7 - Fair Values of Financial Instruments (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Fair Value Disclosures [Abstract] | ' | ||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | ' | ||||
Risk-free interest rate | 0.60% | ||||
Expected term | 2.32 | – | 2.36 | ||
Expected dividends | 0 | ||||
Volatility of stock price | 114.50% | – | 114.70% | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||
Compensatory Warrant | |||||
Fair value at January 1, 2014 | $ | 36,370 | |||
Loss on derivative | 6,211 | ||||
Transfer to additional paid-in-capital | (42,581 | ) | |||
Value at June 30, 2014 | - | ||||
Warrant issued under PI SPA | |||||
Fair value at January 1, 2014 | 206,707 | ||||
Loss on derivative | 100,512 | ||||
Value at June 30, 2014 | 307,219 | ||||
Balance, June 30, 2014 | $ | 307,219 |
Note_2_Going_Concern_Details
Note 2 - Going Concern (Details) (USD $) | 6 Months Ended | |||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | |
Going Concern [Abstract] | ' | ' | ' | ' |
Retained Earnings (Accumulated Deficit) | ($56,196,072) | ($54,870,572) | ' | ' |
Cash and Cash Equivalents, at Carrying Value | 517,759 | 2,023,349 | 99,573 | 83,989 |
Operational Costs Per Month | $475,000 | ' | ' | ' |
Note_3_Share_Based_Compensatio2
Note 3 - Share Based Compensation (Details) - Share-Based Compensation Expenses for Continuing Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Share Based Compensation | $46,445 | $27,570 | $132,218 | $40,017 |
Selling, General and Administrative Expenses [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Share Based Compensation | 18,985 | 20,156 | 93,826 | 31,277 |
Research and Development Expense [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Share Based Compensation | $27,460 | $7,414 | $38,392 | $8,740 |
Note_4_Earnings_Per_Share_Comm2
Note 4 - Earnings Per Share Common Stock (EPS) (Details) - Reconciliation of Numerator of Basic and Diluted EPS Calculations (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Basic Numerator: | ' | ' | ' | ' |
Net (loss) available to common stockholders | ($1,026,286) | ($554,831) | ($1,325,500) | ($870,409) |
Basic Denominator | 116,003,664 | 87,182,348 | 115,940,414 | 84,339,612 |
Per Share Amount | ($0.01) | ($0.01) | ($0.01) | ($0.01) |
Note_4_Earnings_Per_Share_Comm3
Note 4 - Earnings Per Share Common Stock (EPS) (Details) - Securities Excluded from the Diluted Per Share Calculation | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Equity Option [Member] | Exercise Price Less Than Market Price of Common Shares [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive Securities | 2,938,325 | 2,157,965 | 2,069,471 | 1,407,814 |
Equity Option [Member] | 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 | 410,000 | 410,000 | 410,000 | 510,000 |
Warrant [Member] | Exercise Price Less Than Market Price of Common Shares [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive Securities | 1,542,245 | ' | ' | ' |
Warrant [Member] | 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 | 250,000 | 8,250,000 | 30,369,129 | 8,250,000 |
Exercise Price Less Than Market Price of Common Shares [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive Securities | 4,480,570 | 2,157,965 | 2,069,471 | 1,407,814 |
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 | 660,000 | 8,660,000 | 30,779,129 | 8,760,000 |
Note_5_Stockholders_Equity_Det
Note 5 - Stockholders' Equity (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | ||||||||||
Jan. 27, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Nov. 08, 2013 | Nov. 08, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Nov. 08, 2013 | Nov. 08, 2013 | Mar. 10, 2014 | Mar. 11, 2014 | Jun. 30, 2014 | Aug. 15, 2013 | |
Placement Agent Warrants [Member] | Placement Agent Warrants [Member] | Placement Agent Warrants [Member] | Compensatory Warrant [Member] | Compensatory Warrant [Member] | Warrant [Member] | Placement Agent Warrants [Member] | Exercise Price $0.205 [Member] | Exercise Price $0.17 [Member] | Employee Stock Option [Member] | Rights [Member] | Private Investor SPA [Member] | InterDigital SPA [Member] | InterDigital SPA [Member] | InterDigital SPA [Member] | InterDigital SPA [Member] | ||||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Private Investor SPA [Member] | Private Investor SPA [Member] | Contracted Compensation [Member] | Contracted Compensation [Member] | Contracted Compensation [Member] | Contracted Compensation [Member] | ||||||||||
Minimum [Member] | |||||||||||||||||||
Note 5 - Stockholders' Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of Stock, Price Per Share (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.15 | $0.15 | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $0.30 | ' | ' | ' | ' | ' | ' | ' | $0.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of Warrant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' |
Warrant Exercisable on Cashless Basis, Period following Annivesary of Issuance Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '9 months | ' | ' | ' | ' |
Commissions and Fees, Percent of Gross Proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,971,786 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings (in Dollars) | ' | ' | ' | $98,209 | ($100,512) | ' | ' | $6,211 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($6,211) | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value (in Dollars) | ' | ' | ' | 307,219 | 307,219 | 206,707 | 36,370 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 |
Stock Issued During Period, Shares, Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 153,659 | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 (in Dollars) | ' | ' | ' | ' | ' | ' | ' | 42,581 | ' | ' | ' | ' | ' | ' | ' | 42,581 | ' | ' | ' |
Payments for Repurchase of Warrants (in Dollars) | $150,000 | ' | $150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | 0 | 3,420,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,970,000 | 350,000 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.21 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.17 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ' | 56,346 | 56,346 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_6_Segment_Information_Det
Note 6 - Segment Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Note 6 - Segment Information (Details) [Line Items] | ' | ' | ' | ' |
Number of Reportable Segments | ' | ' | 1 | ' |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | North America [Member] | ' | ' | ' | ' |
Note 6 - Segment Information (Details) [Line Items] | ' | ' | ' | ' |
Concentration Risk, Percentage | 62.00% | 96.00% | 29.00% | 97.00% |
Note_7_Fair_Values_of_Financia2
Note 7 - Fair Values of Financial Instruments (Details) - Fair Value Measurement of Warrant Liabilities and Derivative Liabilities (Warrant and Derivative Liabilities [Member]) | 6 Months Ended |
Jun. 30, 2014 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Risk-free interest rate | 0.60% |
Expected dividends | 0.00% |
Minimum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Expected term | '2 years 116 days |
Volatility of stock price | 114.50% |
Maximum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Expected term | '2 years 131 days |
Volatility of stock price | 114.70% |
Note_7_Fair_Values_of_Financia3
Note 7 - Fair Values of Financial Instruments (Details) - Fair Value Measurements Using Significant Unobservable Inputs (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Compensatory Warrant [Member] | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Fair value | $36,370 |
Loss on derivative | 6,211 |
Transfer to additional paid-in-capital | -42,581 |
Warrants Issued under PI SPA [Member] | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Fair value | 206,707 |
Loss on derivative | 100,512 |
Value | $307,219 |
Note_8_Major_Customers_and_Acc1
Note 8 - Major Customers and Accounts Receivable (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
Sales Revenue, Goods, Net [Member] | Sales Revenue, Goods, Net [Member] | Sales Revenue, Goods, Net [Member] | Sales Revenue, Goods, Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |
Note 8 - Major Customers and Accounts Receivable (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Concentration Risk, Customer | 'two | 'three | 'two | 'two | 'two | 'one |
Concentration Risk, Percentage | 55.00% | 51.00% | 73.00% | 41.00% | 56.00% | 50.00% |
Note_9_Contingency_Details
Note 9 - Contingency (Details) (LifeSouth [Member], USD $) | 0 Months Ended |
Mar. 13, 2014 | |
LifeSouth [Member] | ' |
Note 9 - Contingency (Details) [Line Items] | ' |
Loss Contingency, Damages Sought, Value | $718,500 |