BIO-key International (BKYI) 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

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