BIO-key International (BKYI) 10-K 2 Apr 18 2017 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Mar. 27, 2018	Jun. 30, 2017
Document Information [Line Items]
Entity Registrant Name	BIO KEY INTERNATIONAL INC
Entity Central Index Key	1,019,034
Trading Symbol	bkyi
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		9,493,174
Entity Public Float			$ 15.3
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 288,721	$ 1,061,307
Accounts receivable, net	2,875,946	1,563,246
Due from factor	109,865	53,638
Inventory	946,847	465,428
Resalable software license rights	2,640,000	1,560,000
Prepaid expenses and other	152,654	206,677
Total current assets	7,014,033	4,910,296
Resalable software license rights, net of current portion	7,933,808	10,598,411
Accounts receivable, net of current portion	760,000	1,570,000
Equipment and leasehold improvements, net	181,165	67,814
Deposits and other assets	8,712	8,712
Intangible assets, net	181,104	134,132
Total non-current assets	9,064,789	12,379,069
TOTAL ASSETS	16,078,822	17,289,365
LIABILITIES
Accounts payable	499,230	466,842
Accrued liabilities	688,023	335,323
Dividends payable on preferred stock	630,408	401,250
Deferred revenue	507,866	633,062
Total current liabilities	2,325,527	1,836,477
TOTAL LIABILITIES	2,325,527	1,836,477
Commitments and Contingencies
STOCKHOLDERS’ EQUITY
Common stock — authorized, 170,000,000 shares; issued and outstanding; 7,691,324 and 6,093,843 of $.0001 par value at December 31, 2017 and December 31, 2016, respectively	769	609
Additional paid-in capital	80,829,001	78,253,413
Accumulated deficit	(67,076,492)	(62,801,154)
TOTAL STOCKHOLDERS’ EQUITY	13,753,295	15,452,888
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	16,078,822	17,289,365
Series A-1 Convertible Preferred Stock [Member]
STOCKHOLDERS’ EQUITY
Preferred stock	6	9
TOTAL STOCKHOLDERS’ EQUITY	6	9
Series B-1 Convertible Preferred Stock [Member]
STOCKHOLDERS’ EQUITY
Preferred stock	11	11
TOTAL STOCKHOLDERS’ EQUITY	$ 11	$ 11

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Preferred stock, shares authorized (in shares)	5,000,000
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	170,000,000	170,000,000
Common stock, shares issued (in shares)	7,691,324	6,093,843
Common stock, shares outstanding (in shares)	7,691,324	6,093,843
Series A-1 Convertible Preferred Stock [Member]
Preferred stock, shares authorized (in shares)	100,000	100,000
Preferred stock, liquidation value	$ 100	$ 100
Preferred stock, shares issued (in shares)	62,596	90,000
Preferred stock, shares outstanding (in shares)	62,596	90,000
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Series B-1 Convertible Preferred Stock [Member]
Preferred stock, shares authorized (in shares)	105,000	105,000
Preferred stock, liquidation value	$ 100	$ 100
Preferred stock, shares issued (in shares)	105,000	105,000
Preferred stock, shares outstanding (in shares)	105,000	105,000
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Revenues
Services	$ 1,193,190	$ 821,178
License fees and other	3,220,371	1,189,089
Hardware	1,889,423	965,489
Total revenues	6,302,984	2,975,756
Costs and other expenses
Cost of services	439,291	216,465
Cost of license fees and other	2,802,860	513,218
Total costs and other expenses	3,242,151	729,683
Gross Profit	3,060,833	2,246,073
Operating expenses
Selling, general and administrative	5,676,323	4,438,950
Research, development and engineering	1,659,875	2,008,942
Total operating expenses	7,336,198	6,447,892
Operating loss	(4,275,365)	(4,201,819)
Other income
Interest income	27	30
Gain on derivative liabilities		12,085
Total other income	27	12,115
Net loss	(4,275,338)	(4,189,704)
Convertible preferred stock dividends	(769,158)	(802,500)
Net loss available to common stockholders	$ (5,044,496)	$ (4,992,204)
Basic and Diluted Loss per Common Share (in dollars per share)	$ (0.76)	$ (0.89)
Weighted Average Shares Outstanding:
Basic and Diluted (in shares)	6,638,382	5,587,144

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($)	Series A-1 Convertible Preferred Stock [Member]	Series B-1 Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance as of December 31, 2015 (in shares) at Dec. 31, 2015	90,000	105,000	5,508,261
Balance as of December 31, 2015 at Dec. 31, 2015	$ 9	$ 11	$ 551	$ 76,760,796	$ (58,611,450)	$ 18,149,917
Issuance of common stock for directors’ fees and CEO stock award (in shares)			27,248
Issuance of common stock for directors’ fees and CEO stock award			$ 2	61,998		62,000
Issuance of common stock pursuant to securities purchase agreement (in shares)			516,667
Issuance of common stock pursuant to securities purchase agreement			$ 52	1,859,948		1,860,000
Dividends declared on preferred stock				(802,500)		(802,500)
Issuance of stock for consultants (in shares)			41,667
Issuance of stock for consultants			$ 4	104,996		105,000
Stock issuance costs				(84,866)		(84,866)
Reclassification of derivative liability				92,199		92,199
Share-based compensation				260,842		260,842
Net loss					(4,189,704)	(4,189,704)
Balance as of December 31, 2016 (in shares) at Dec. 31, 2016	90,000	105,000	6,093,843
Balance as of December 31, 2016 at Dec. 31, 2016	$ 9	$ 11	$ 609	78,253,413	(62,801,154)	15,452,888
Issuance of common stock for directors’ fees (in shares)			27,248
Issuance of common stock for directors’ fees			$ 2	61,998		$ 62,000
Exercise of stock options (in shares)						0
Issuance of common stock for directors’ fees and CEO stock award (in shares)			11,244			1,610
Issuance of common stock for directors’ fees and CEO stock award			$ 1	32,029		$ 32,030
Issuance of common stock pursuant to securities purchase agreement (in shares)			555,556
Issuance of common stock pursuant to securities purchase agreement			$ 56	1,999,944		2,000,000
Dividends declared on preferred stock				(769,158)		(769,158)
Issuance of stock for consultants (in shares)			117,849
Issuance of stock for consultants			$ 12	354,573		354,585
Stock issuance costs				(80,366)		(80,366)
Share-based compensation				498,654		498,654
Net loss					(4,275,338)	(4,275,338)
Balance as of December 31, 2016 (in shares) at Dec. 31, 2017	62,596	105,000	7,691,324
Balance as of December 31, 2016 at Dec. 31, 2017	$ 6	$ 11	$ 769	80,829,001	$ (67,076,492)	$ 13,753,295
Issuance of common stock for directors’ fees (in shares)			11,244			1,610
Issuance of common stock for directors’ fees			$ 1	32,029		$ 32,030
Conversion of dividends payable on A-1 preferred stock (in shares)			150,000
Conversion of dividends payable on A-1 preferred stock			$ 15	539,985		$ 540,000
Conversion of A-1 preferred stock to common stock (in shares)	(27,404)		761,222
Conversion of A-1 preferred stock to common stock	$ (3)		$ 76	$ (73)
Exercise of stock options (in shares)			1,610			4,167

Consolidated Statements of Cash

Consolidated Statements of Cash Flows	12 Months Ended
	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss	$ (4,275,338)	$ (4,189,704)
Adjustments to reconcile net loss to cash used for operating activities:
Provision for losses on accounts receivable	500,000	500,000
Depreciation	52,709	49,038
Amortization of Intangible assets	13,726	13,606
Amortization of Software license rights	1,510,051	21,589
Share and warrant-based compensation for employees and consultants	940,734	260,842
Gain on derivative liabilities		(12,085)
Stock based fees to Directors and consultants	32,030	167,000
Change in assets and liabilities:
Accounts receivable	(1,002,700)	(241,841)
Due from factor	(56,227)	(16,217)
Inventory	(481,419)	(296,783)
Software license rights	74,552
Prepaid expenses and other	(33,472)	(109,474)
Accounts payable	32,388	(691,713)
Accrued liabilities	352,700	(157,745)
Deferred revenue	(125,196)	256,657
Net cash used for operating activities	(2,465,462)	(4,446,830)
CASH FLOWS FROM INVESTING ACTIVITIES:
Patents	(60,698)
Capital expenditures	(166,060)	(52,975)
Net cash used for investing activities	(226,758)	(52,975)
CASH FLOWS FROM FINANCING ACTIVITIES:
Preferred dividends paid		(535,100)
Proceeds from issuances of common stock	2,000,000	1,860,000
Stock issuance costs	(80,366)	(84,866)
Net cash provided by financing activities	1,919,634	1,240,034
NET DECREASE IN CASH AND CASH EQUIVALENTS	(772,586)	(3,259,771)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	1,061,307	4,321,078
CASH AND CASH EQUIVALENTS, END OF YEAR	288,721	1,061,307
Cash paid for:
Interest
Noncash investing and financing activities:
Accrual of unpaid preferred dividends	630,408	401,250
Conversion of Dividends Payable, Amount Converted	540,000
Conversion of A-1 preferred stock to common stock	2,740,400
Reclassification of derivative liability to additional paid-in capital		92,199
Issuance of common stock as a commitment fee for the Equity facility	198,000
Issuance of common stock as consulting services for the Equity facility	$ 244,084

Note A - The Company and Summar

Note A - The Company and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
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, The Company was a pioneer in developing automated, finger identification technology that supplements or compliments other methods of identification and verification, such as personal inspection identification, passwords, tokens, smart cards, ID cards, PKI, credit card, passports, driver’s licenses, OTP or other form of possession or knowledge-based credentialing. Additionally, advanced BIO-key® technology has been, and is, used to improve both the accuracy and speed of competing finger-based biometrics. Basis of Presentation The Company has incurred significant losses to date, and at December 31, 2017, $67.1 December 31, 2017, $289,000, $1,061,000 December 31, 2016. 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 through factoring receivables. The Company currently requires approximately $592,000 If the Company is unable to generate sufficient revenue to meet our goals, it will need to obtain additional third No not 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 Effective December 29, 2016, 1 12 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 subsidiaries (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. The Company believes that the estimates, judgments and assumptions upon which it relies 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, its consolidated financial statements will be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not not 3. Revenue Recognition Revenues from software licensing are recognized in accordance with ASC 985 605, 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 Multiple-Element Arrangements: For multiple-element arrangements, the Company applies the residual method in accordance with ASC 985 605. 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 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 may 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 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, one not ’s policy is to accrue anticipated warranty costs based upon historical percentages of items returned for repair within one not third not 4. Cash Equivalents Cash equivalents consist of liquid investments with original maturities of three At December 31, 2017 2016, 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. During the quarter ended September 30, 2016, may not December 31, 2017 $1,000,000, 57% December 31, 2017 2016 December 31, 201 7 201 6 Accounts receivable - current $ 2,889,731 $ 1,577,031 Accounts receivable - non current 1,760,000 2,070,000 4,649,731 3,647,031 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,000,000 ) (500,000 ) (1,013,785 ) (513,785 ) Accounts receivable, net of allowances for doubtful accounts $ 3,635,946 $ 3,133,246 The allowance for doubtful accounts for the years ended December 31, 201 7 2016 Balance at Beginning of Year Charged to Costs and Expenses Deductions From Reserves Balance at End of Year Year Ended December 31, 201 7 Allowance for Doubtful Accounts $ 513,785 $ 500,000 $ - $ 1,013,785 Year Ended December 31, 201 6 Allowance for Doubtful Accounts $ 13,785 $ 500,000 $ - $ 513,785 The bad debt expense is recorded in selling, general, and administrative expense. 6. Software License Rights Software license rights acquired for re-sale to end users are recorded as assets when purchased and are stated at the lower of cost or estimated net realizable value. The cost of the software license rights has been initially allocated pro-rata to the maximum number of resalable end-user licenses in the rights contract. Licenses are amortized to cost of sales over the greater of the following: 1 10 2 ten 3 twelve The rights are also evaluated by management on a periodic basis to determine if estimated future net revenues, on a per sub-license basis, support the recorded basis of each license. If the estimated net revenues are less than the current carrying value of the capitalized software license rights, the Company will reduce the rights to their net realizable value. 7. 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: Years 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. 8. Impairment or Disposal of Long Lived Assets, including Intangible Assets The Company reviews 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 may The Company did not 9. Advertising Expense The Company expenses the costs of advertising as incurred. Advertising expenses for 201 7 2016 $386,000 $299,000, 10. Deferred Revenue Deferred revenue includes customer advances and amounts that have been billed per the contractual terms but have not 12 11. 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. 12. 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 conversion of preferred stock, exercise of stock options and warrants, when the effect of their inclusion is dilutive. See Note R - Earnings Per Share “EPS” for additional information. 13. Accounting for Stock-Based Compensation The Company accounts for share based compensation in accordance with the provisions of ASC 718 10, — 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 its share-based compensation arrangements vest over either a three four not may The following table presents share-based compensation expenses included in the Company ’s consolidated statements of operations: Year ended December 31, 2017 2016 Selling, general and administrative $ 864,036 $ 353,056 Research, development and engineering 108,728 74,786 $ 972,764 $ 427,842 Valuation Assumptions for Stock Options For 201 7 2016, 1,234,167 27,087 Year ended December 31, 2017 2016 Weighted average Risk free interest rate 1.92 % 1.11 % Expected life of options (in years) 4.51 4.50 Expected dividends 0 % 0 % Weighted average Volatility of stock price 138 % 93 % 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. 14. Derivative Liabilities In connection with the issuances of equity instruments or debt, the Company may may may may The Company early-adopted the new provisions issued July 2017, 2017 11, 260 480 815 2017 11, not no 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 not 740 10, may ’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, ’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. 1 6. Recent Accounting Pronouncements In May 2014 , FASB issued ASU No. 2014 09, 606 ASC 606” ), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The standard contains a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods and services. The FASB has issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The Company will adopt ASC 606 January 1, 2018 modified retrospective transition method. While the Company is finalizing the impact this standard has on its consolidated financial statements and related disclosures, the Company expects the new standard will not not 606 In July 2015, No. 2015 11, 330 2015 11" 2015 11 2015 11 December 15, 2016, 2015 11 not ’s consolidated financial statements. In February 2016, 2016 02, 12 December 15, 2018, for amounts yet to be determined. In August 2014, No. 2014 15, 2014 15, not one 2014 15 December 15, 2016, 2014 15 as of January 1, 2017. In March 2016, 2016 09, – Stock Compensation: Improvements to Employee Share-Based Payment Accounting” (“ASU 2016 09” 2016 09 2016 09 December 15, 2016. not In July 2017, 2017 11, 260 480 815 of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Under ASU 2017 11, not no 480, not December 15, 2018, 2017 11, 2017 not Management does not not 1 7. Reclassifications occurred to certain prior year amounts in order to conform to the current year classifications. The reclassifications have no

Note B - Factoring

Note B - Factoring	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Factoring [Text Block]	NOTE B —FACTORING Due from factor consisted of the following as of December 31: Original Invoice Value Factored Amount Factored Balance due Year Ended December 31, 2017 Factored accounts receivable $ 423,349 $ 313,484 $ 109,865 Year Ended December 31, 2016 Factored accounts receivable $ 214,556 $ 160,918 $ 53,638 As of December 2011, 24 October 31, 201 8. $150,000 35% 75% 2.75% 15% Years Ended December 31, 2017 2016 Factoring fees $ 224,142 $ 341,023

Note C - Fair Values of Financi

Note C - Fair Values of Financial Instruments	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Fair Value Disclosures [Text Block]	NOTE C —FAIR VALUES OF FINANCIAL INSTRUMENTS Cash and cash equivalents, accounts receivable, inventory, due from factor, accounts payable and accrued liabilities are carried at, or approximate, fair value because of their short-term nature.

Note D - Concentration of Risk

Note D - Concentration of Risk	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
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 exposure to the Company is solely dependent upon daily bank balances and the respective strength of the financial institutions. The Company has not December 31, 2017 2016, $0 $811,000, 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% ’s total revenue, as follows: Years Ended December 31, 201 7 201 6 Customer A 54 % 34 % Customer B * 12 % * Less than 10% The Company had certain customers whose accounts receivable balances individually represented 10% ’s total accounts receivable, as follows: As of December 31, 201 7 201 6 Customer A 55 % 35 % Customer B 37 % 56 % Customer B’s receivable of $1,760,000 thirty December 31, 2017. $1,000,000 57%

Note E - Inventory

Note E - Inventory	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Inventory Disclosure [Text Block]	NOTE E —INVENTORY Inventory is stated at the lower of cost, determined on a first first realizable value, and consists primarily of fabricated assemblies and finished goods. Inventory is comprised of the following as of December 31: 2017 2016 Current Finished goods 487,858 381,762 Fabricated assemblies 458,989 83,666 Total current inventory $ 946,847 $ 465,428

Note F - Resalable Software Lic

Note F - Resalable Software Licenses Rights	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Research, Development, and Computer Software Disclosure [Text Block]	NOTE F — RESALABLE SOFTWARE LICENSES RIGHTS On November 11, 2015, products, and grant sub-licenses of the licensed technology to end users. The license rights have been granted to the Company in perpetuity, with a stated number of end-user resale sub-licenses allowed under the contract for a total of $12,000,000. 12 $2,640,000 The Company has determined the software license rights to be a finite lived intangible asset, and estimated that the software license rights shall be economically used over a 10 fourth 2015, not January 2017. first 2017. The remaining license rights are to be amortized over the greater of the following: 1 2 ten 3 A total of $1,556,687 $1,909 2017 2016 $1,558,596 $10,441,404 December 31, 2017. 2017 three On December 31, 2015, third $180,000 in anticipation of a large pending deployment that has yet to materialize. The Company is amortizing the total cost over the same methodology described above with the greatest of the three $35,916 $19,680 2017 2016 $47,596 $132,404 December 31, 2017. 2017, $8,000 third 2017 2016 Current software license rights $ 2,640,000 $ 1,560,000 Non-current software license rights 7,933,808 10,598,411 Total software license rights $ 10,573,808 $ 12,158,411 During the year ended December 31, 201 7, no may not not not December 31, 2017 2016. Estimated amortization expense based on economic use of the software license rights for each of the next five Years ending December 31 2018 2,640,000 2019 3,000,000 2020 2,400,000 2021 1,200,000 2022 720,000 Thereafter 613,808

Note G - Equipment and Leasehol

Note G - Equipment and Leasehold Improvements	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	NOTE G —EQUIPMENT AND LEASEHOLD IMPROVEMENTS Equipment and leasehold improvements consisted of the following as of December 31: 2017 2016 Equipment $ 567,473 $ 403,425 Furniture and fixtures 164,079 162,067 Software 32,045 32,045 Leasehold improvements 23,403 23,403 787,000 620,940 Less accumulated depreciation and amortization (605,835 ) (553,126 ) Total $ 181,165 $ 67,814 Depreciation was $52,709 $49,038 2017 2016,

Note H - Intangible Assets

Note H - Intangible Assets	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	NOTE H —INTANGIBLE ASSETS Intangible assets consisted of the following as of December 31: 2017 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and patents pending $ 347,946 $ (166,842 ) $ 181,104 $ 287,248 $ (153,116 ) $ 134,132 Total $ 347,946 $ (166,842 ) $ 181,104 $ 287,248 $ (153,116 ) $ 134,132 Aggregate amortization expense for 2017 2016 $13,726 $13,606, December 31, 2017 $14,000 2018 2022, $111,000

Note I - Accrued Liabilities

Note I - Accrued Liabilities	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	NOTE I —ACCRUED LIABILITIES Accrued liabilities consisted of the following as of December 31: 201 7 201 6 Compensation $ 341,884 $ 66,152 Compensated absences 164,132 154,368 Accrued legal and accounting fees 85,633 79,633 Sales tax payable 5,614 26,988 Factoring fees 32,357 3,600 Other 58,403 4,582 Total $ 688,023 $ 335,323

Note J - Related Party

Note J - Related Party	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	NOTE J —RELATED PARTY Licensing Agreement with Subsidiaries of China Goldjoy Group Limited. On November 11, 2015 , BIO-key Hong Kong Limited, a subsidiary of the Company, entered into a license purchase agreement with certain subsidiaries of China Goldjoy Group Limited (“CGG”). The license agreement provides for the grant of a perpetual, irrevocable, exclusive, worldwide, fully-paid license to all software and documentation regarding the software code, toolkit, electronic libraries and related technology currently known as or offered under the Finger Q name, together with perpetual license under all related patents held by the licensors and any other intellectual property rights owned by the licensors related to the forgoing software. The Company made a one $12,000,000 October 2016 33.2% Securities Purchase Agreement s with Wong Kwok Fong On November 18, 2016, Wong Kwok Fong, a director, executive officer and principal stockholder of the Company, 516,667 $3.60 $1,860,000. On April 28, 2017, 277,778 $3.60 $1,000,000. On September 22, 2017, 427,778 138,889 purchase price of $1,540,000, $3.60 $1,000,000 277,778 $540,000 1 150,000 On August 7, 2017, 90,000 ’s Series A- 1 1 9.99% 35%. 1 61st October 17, 2017, 27,404 1 $3.60 761,222

Note K - Deferred Revenue

Note K - Deferred Revenue	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Deferred Revenue Disclosure [Text Block]	NOTE K —DEFERRED REVENUE Deferred revenue represents unearned revenue on maintenance contracts. 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. At December 31, 2017 2016, $508,000 $633,000,

Note L - Segment Information

Note L - Segment Information	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	NOTE L —SEGMENT INFORMATION The Company has determined that its continuing operations are one 87% 78% 2017 2016,

Note M - Commitments and Contin

Note M - Commitments and Contingencies	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Commitments Disclosure [Text Block]	NOTE M —COMMITMENTS AND CONTINGENCIES Operating Leases The Company does not three 20 20. Future minimum rental commitments of non-cancelable operating leases are approximately as follows: Years ending December 31, 201 8 148,862 2019 45,033 20 20 31,898 $ 225,793 Rental expense was approximately $221,000 $193,000 2017 2016, Litigation From time to time, we may December 31, 2017, no

Note N - Equity

Note N - Equity	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	NOTE N — EQUITY 1. 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 $.0001 one December 31, 2017, 100,000 1 62,596 105,000 1 Series A- 1 On October 22 29, 2015, 84,500 1 $100.00 $8,450,000. November 11, 2015, 5,500 1 $100.00 $550,000. 1 1 $3.60 ’s capital stock, and subject to a “blocker provision” which prohibits conversion if such conversion would result in the holder being the beneficial owner of in excess of 9.99% 61 1 August 7, 2017. 1 6% April 1, July, 1, October 1, January 1 October 1, 2017, ten 10 January 1, 2018, The holders of the Series A- 1 one 1 ’s stockholders. Upon any liquidation or dissolution of the Company, any merger or consolidation involving the Company or any subsidiary of the Company in which the shares of capital stock of the Company outstanding immediately prior to such merger or consolidation do not 1 1 $100.00 1 On September 22, 2017, 1 $540,000 150,000 $3.60. October 17, 2017, t 1 27,404 1 761,222 $3.60 As of December 31, 2017, $2 36,658 1 October 1, 2017 January 1, 2018 As of December 31, 2016, $270,000 1 October 1, 2016 January 1, 2017 The Series A- 1 815 15, 815 40 15, 1 $3.60 December 31, 2017, 1 ten 10 not Series B- 1 On November 11, 2015, 105,000 1 $100.00 $10,500,000. Shares of the Series B- 1 1 $3.60 9.99% 1 2.5% April 1, July, 1, October 1, January 1 1 ten 10 The holders of the Series B- 1 one 1 ’s stockholders. Upon any liquidation or dissolution of the Company, any merger or consolidation involving the Company or any subsidiary of the Company in which the shares of capital stock of the Company outstanding immediately prior to such merger or consolidation do not 1 1 $100.00 1 December 31, 2017, $393,750 1 October 1, 2016, January 1, 2017, April 1, 2017, July 1, 2017, October 1, 2017 January 1, 2018 As of December 31, 2016 $131,250 1 October 1, 2016 January 1, 2017 The Series B- 1 815 15, 815 40 15, 1 $3.60 1 may ten 10 not Stock Issuance Costs Costs of approximately $8 0,000 2017 2. Effective December 29, 2016, 1 12. The number of authorized shares and the par value of the Company's common stock and preferred stock were not 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 not 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 no Issuances of Common Stock Pursuant to a Securities Purchase Agreement, dated November 11, 2016, 516,667 shares of common stock for aggregate gross proceeds of $1,860,000. On April 28, 2017, a director, executive officer and principal stockholder of the Company, 277,778 $3.60 $1,000,000. On May 2, 2017, may $5.0 36 As of December 31, 2017, not may $100,000 five $3.83 94% $3.83 19.99% May 2, 2017, 9.99% On September 22, 2017, a director, executive officer and principal stockholder of the Company, 427,778 138,889 $1,540,000, $3.60 $1,000,000 277,778 1 $540,000 150,000 Also on September 22, 2017, 27,404 1 761,222 $3.60 Issuances to Directors, Executive Officers and Consultants On March 15, 2017, 1,895 $5,003. On May 11, 2017, 1,925 shares of common stock to its directors in payment of board fees, valued at $5,005. In May 2017, 55,000 of $198,000. In May 2017, 61,667 $2.54 $156,584. which has been fully amortized as of December 31, 2017. On August 9, 2017, 5,148 $18, 017. On November 13, 2017, 2,276 $4, 005. During the year ended December 31, 2016, 18,914 $45,000, 8,334 $17,000. During the year ended December 31, 2016 , the Company issued 41,667 $2.52 $105,000 Employees ’ exercise options During 2017, 4,167 1,610 no 2016. Derivative Liabilities In connection with the issuances of equity instruments or debt, the Company may may may may The Company early-adopted the new provisions issued July 2017, 2017 11, 260 480 815 2017 11, not no A) Securities Purchase Agreements dated October 25, 2013 November 8, 2013 Pursuant to a series of Private Investors Securities Purchase Agreements, on October 25, 2013 November 8, 2013, 1,026,972 1,026,972 1,026,972 $3,697,100. $6.00 three 2016. In connection with the share issuances described above, and pursuant to a placement agency letter agreement, the Company paid the placement agent cash commissions equal to 8% 82,158 The cashless exercise features contained in the warrants were considered to be derivatives and the Company recorded warrant liabilities on the consolidated balance sheet. The Company initially recorded the warrant liabilities equal to their estimated fair value of $325,891. December 31, 2016, $7,478. December 31, 2016, $0 fourth 2016. B) Securities Purchase Agreement dated November 13, 2014 Pursuant to a Securities Purchase Agreement, dated November 13, 2014, “November 2014 664,584 996,877 $1,595,000. The common stock had a purchase price reset feature. If at any time prior to the two January 29, 2015), $2.40 no Based on an evaluation as discussed in FASB ASC 815 15, 815 40 15, ’s Own Equity - Scope and Scope Exceptions,” the Company determined that the purchase price reset feature on the common stock issued was not The Company valued the purchase price reset feature using a Monte Carlo simulation at the date of issuance, and at quarterly reporting intervals until the expiration of the feature in January 2017, no 1 1 October November 2015, $3.60, November 2016 April 2017 $3.60. The warrants have a term of five $3.60 February 2015. options, warrants or other securities that are convertible into common stock at a price lower than $3.60 not As a result of the early adoption of ASU 2017 11 no no no C) Securities Purchase Agreement dated September 23, 2015 On September 23, 2015, 69,445 warrants are immediately exercisable at an exercise price of $3.60 five The warrants have customary anti-dilution protections including a "full ratchet" anti-dilution adjustment provision which are triggered in the event the Company sells or $3.60 not As a result of the early adoption of ASU 2017 11 A – Recently Issued Accounting Pronouncements, the “full ratchet” anti-dilution feature is no no no The cashless exercise features contained in the warrants were initially considered to be derivatives and the Company recorded a warrant liability of $92,199 2016, not December 31, 2016 $4,607 3. The Company has issued warrants to certain creditors, investors, investment bankers and consultants. A summary of warrant activity is as follows: Total Warrants Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding, as of January 1, 2016 1,704,628 4.40 3.02 Granted — — Exercised — — Forfeited — — Expired (444,548 ) 6.00 Outstanding, as of December 31, 2016 1,260,080 3.84 2.78 — Granted 138,889 3.60 Exercised — — Forfeited — — Expired — — Outstanding, as of December 31, 2017 1,398,969 3.81 2.06 — Vested or expected to vest at December 31, 2017 1,398,969 3.81 2.06 — Exercisable at December 31, 2017 1,398,969 3.81 2.06 — On September 22, 2017, 138,889 427,778 $3.60 five

Note O - Stock Options

Note O - Stock Options	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE O —STOCK OPTIONS 2004 On October 12, 2004, 2004 2004 2004 not not 166,667 may not 85% may not ten 2004 2004 October 2014. 2015 On January 27, 2016, 2015 2015 666,667 may not 100 110% may not ten 2015 may may ’ written agreement. The 2015 December 2025. Non-Plan Stock Options Periodically, the Company has granted options outside of the 2004 2015 Stock Option Activity Information summarizing option activity is as follows: Number of Options Weighted average Weighted average remaining Aggregate 1999 Plan 2004 Plan 2015 Plan Non Plan Total exercise price life (in years) intrinsic value Outstanding, as of December 31, 2015 20,834 85,008 — 259,088 364,930 $ 3.87 Granted — — 27,087 — 27,087 2.74 Exercised — — — — — Forfeited — — (2,084 ) (8,335 ) (10,419 ) 2.16 Expired (20,834 ) (15,628 ) — (3,473 ) (39,935 ) 2.50 Outstanding, as of December 31, 2016 — 69,380 25,003 247,280 341,663 $ 3.99 4.23 $ 53,936 Granted — — 64,167 1,170,000 1,234,167 2.69 Exercised — — — (4,167 ) (4,167 ) 2.16 Forfeited — — (7,084 ) (65,140 ) (72,224 ) 2.62 Expired — (17,084 ) — (4,862 ) (21,946 ) 8.86 Outs tanding, as of December 31, 2017 — 52,296 82,086 1,343,111 1,477,493 $ 2.91 5.64 $ 0 Vested or expec ted to vest at December 31, 2017 1,083,691 $ 2.98 5.43 $ 0 Exercisable at December 31, 2017 261,294 $ 3.96 3.09 $ 0 The options outstanding and exercisable at December 31, 2017 Options Outstanding Options Exercisable Range of exercise prices Number of shares Weighted average exercise price Weighted average remaining life (in years) Number exercisable Weighted average exercise price $ 1.90 - 2.50 87,064 $ 2.16 4.65 56,422 $ 2.16 2.51 - 3.50 1,207,296 2.70 6.15 21,740 3.23 3.51 - 5.04 183,132 4.60 2.77 183,132 4.60 $ 1.90 - 5.04 1,477,493 261,294 The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $1.77 December 31, 2017, December 31, 2017 0. The weighted average fair value of options granted during the years ended December 31, 2017 2016 $2.32 $1.86 December 31, 2017 2016 $5,667 $0, December 31, 2017 2016 $197,281 $285,430 As of December 31, 2017, $1,634,611 2.19

Note P - Income Taxes

Note P - Income Taxes	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE P —INCOME TAXES There was no provision for federal or state taxes as at December 31, 2017 2016. In December 22, 2017, “ Tax Act” ). The Tax Act significantly impacts the future ongoing U.S. corporate income tax by, among things, lowering the U.S. corporate income tax rates from 34% 21%, 21%. s US deferred tax assets which are offset by a full valuation allowance. 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: 2017 2016 Current asset: Accrued compensation $ 118,000 $ 67,000 Accounts receivable allowance 277,000 202,000 Non-current asset (liability): Stock-based compensation 387,000 360,000 Basis differences in fixed assets (18,000 ) (8,000 ) Basis differences in intangible assets 46,000 60,000 Net operating loss and credit carryforwards 12,052,000 18,597,000 Valuation allowances (12,862,000 ) (19,278,000 ) $ — $ — 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 not not As of December 31, 2017, $57,064,000 2021 2037. 382 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. 2017 2016 Federal statutory income tax rate 34 % 34 % Permanent differences — — Change in tax laws/tax rate (13 ) - Effect of net operating loss (21 ) (34 ) Effective tax rate — % — % The Company has not 201 4 2017 not not December 31, 2017 2016.

Note Q - Profit Sharing Plan

Note Q - Profit Sharing Plan	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	NOTE Q —PROFIT SHARING PLAN The Company has established a savings plan under section 401 one 401 may not may no December 31, 2017 2016.

Note R - Earnings Per Share (EP

Note R - Earnings Per Share (EPS)	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	NOTE R —EARNINGS PER SHARE (EPS) The Company ’s basic EPS is calculated using net income (loss) available to common shareholders and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of preferred stock. The reconciliation of the numerator of the basic and diluted EPS calculations, due to the inclusion of preferred stock dividends was as follows for the following fiscal years ended December 31: 2017 2016 Basic Numerator: Loss from continuing operations $ (4,275,338 ) $ (4,189,704 ) Convertible preferred stock dividends (769,158 ) (802,500 ) Net loss available to common stockholders (basic and diluted EPS) $ (5,044,496 ) $ (4,992,204 ) The following table summarizes the weighted average securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive. Years ended December 31, 2017 2016 Preferred stock 5,264,422 5,416,667 Stock options 15,529 17,657 Warrants 2,109 1,018 Potentially dilutive securities 5,282,060 5,435,342 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, 2017 2016 Stock options 1,390,428 235,845 Warrants 1,351,052 1,212,163 Total 2,741,480 1,448,008

Note S - Subsequent Events

Note S - Subsequent Events	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	NOTE S —SUBSEQUENT EVENTS On March 23, 2018, ’s Series B- 1 1 60,240 1 1,678,334 On March 23, 2018, 115,857 1 $417,084 1 $3.60. In connection with the forgoing transaction, the Company waived a standstill provision to permit a holder of shares of Series B- 1 19.99% 61 On March 23, 2018, 7,659 On March 23, 2018, 9,000 six The options have a three seven $1.96. On March 23, 2018, 212,918 ’s common stock to certain officers, employees, and contractors. The options have a three seven $1.96. On March 28, 2018, 762 The Company has reviewed subsequent events through the date of this filing.

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The Company has incurred significant losses to date, and at December 31, 2017, $67.1 December 31, 2017, $289,000, $1,061,000 December 31, 2016. 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 through factoring receivables. The Company currently requires approximately $592,000 If the Company is unable to generate sufficient revenue to meet our goals, it will need to obtain additional third No not 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 Effective December 29, 2016, 1 12
Consolidation, Policy [Policy Text Block]	1. Basis of Consolidation The accompanying consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]	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. The Company believes that the estimates, judgments and assumptions upon which it relies 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, its consolidated financial statements will be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not not
Revenue Recognition, Policy [Policy Text Block]	3. Revenue Recognition Revenues from software licensing are recognized in accordance with ASC 985 605, 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 Multiple-Element Arrangements: For multiple-element arrangements, the Company applies the residual method in accordance with ASC 985 605. 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 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 may 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 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, one not ’s policy is to accrue anticipated warranty costs based upon historical percentages of items returned for repair within one not third not
Cash and Cash Equivalents, Policy [Policy Text Block]	4. Cash Equivalents Cash equivalents consist of liquid investments with original maturities of three At December 31, 2017 2016,
Receivables, Policy [Policy Text Block]	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. During the quarter ended September 30, 2016, may not December 31, 2017 $1,000,000, 57% December 31, 2017 2016 December 31, 201 7 201 6 Accounts receivable - current $ 2,889,731 $ 1,577,031 Accounts receivable - non current 1,760,000 2,070,000 4,649,731 3,647,031 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,000,000 ) (500,000 ) (1,013,785 ) (513,785 ) Accounts receivable, net of allowances for doubtful accounts $ 3,635,946 $ 3,133,246 The allowance for doubtful accounts for the years ended December 31, 201 7 2016 Balance at Beginning of Year Charged to Costs and Expenses Deductions From Reserves Balance at End of Year Year Ended December 31, 201 7 Allowance for Doubtful Accounts $ 513,785 $ 500,000 $ - $ 1,013,785 Year Ended December 31, 201 6 Allowance for Doubtful Accounts $ 13,785 $ 500,000 $ - $ 513,785 The bad debt expense is recorded in selling, general, and administrative expense.
Inventory, Policy [Policy Text Block]	6. Software License Rights Software license rights acquired for re-sale to end users are recorded as assets when purchased and are stated at the lower of cost or estimated net realizable value. The cost of the software license rights has been initially allocated pro-rata to the maximum number of resalable end-user licenses in the rights contract. Licenses are amortized to cost of sales over the greater of the following: 1 10 2 ten 3 twelve The rights are also evaluated by management on a periodic basis to determine if estimated future net revenues, on a per sub-license basis, support the recorded basis of each license. If the estimated net revenues are less than the current carrying value of the capitalized software license rights, the Company will reduce the rights to their net realizable value.
Property, Plant and Equipment, Policy [Policy Text Block]	7. 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: Years 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]	8. Impairment or Disposal of Long Lived Assets, including Intangible Assets The Company reviews 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 may The Company did not
Advertising Costs, Policy [Policy Text Block]	9. Advertising Expense The Company expenses the costs of advertising as incurred. Advertising expenses for 201 7 2016 $386,000 $299,000,
Revenue Recognition, Deferred Revenue [Policy Text Block]	10. Deferred Revenue Deferred revenue includes customer advances and amounts that have been billed per the contractual terms but have not 12
Research and Development Expense, Policy [Policy Text Block]	11. 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]	12. 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 conversion of preferred stock, exercise of stock options and warrants, when the effect of their inclusion is dilutive. See Note R - Earnings Per Share “EPS” for additional information.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	13. Accounting for Stock-Based Compensation The Company accounts for share based compensation in accordance with the provisions of ASC 718 10, — 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 its share-based compensation arrangements vest over either a three four not may The following table presents share-based compensation expenses included in the Company ’s consolidated statements of operations: Year ended December 31, 2017 2016 Selling, general and administrative $ 864,036 $ 353,056 Research, development and engineering 108,728 74,786 $ 972,764 $ 427,842 Valuation Assumptions for Stock Options For 201 7 2016, 1,234,167 27,087 Year ended December 31, 2017 2016 Weighted average Risk free interest rate 1.92 % 1.11 % Expected life of options (in years) 4.51 4.50 Expected dividends 0 % 0 % Weighted average Volatility of stock price 138 % 93 % 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]	14. Derivative Liabilities In connection with the issuances of equity instruments or debt, the Company may may may may The Company early-adopted the new provisions issued July 2017, 2017 11, 260 480 815 2017 11, not no
Income Tax, Policy [Policy Text Block]	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 not 740 10, may ’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, ’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]	1 6. Recent Accounting Pronouncements In May 2014 , FASB issued ASU No. 2014 09, 606 ASC 606” ), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The standard contains a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods and services. The FASB has issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The Company will adopt ASC 606 January 1, 2018 modified retrospective transition method. While the Company is finalizing the impact this standard has on its consolidated financial statements and related disclosures, the Company expects the new standard will not not 606 In July 2015, No. 2015 11, 330 2015 11" 2015 11 2015 11 December 15, 2016, 2015 11 not ’s consolidated financial statements. In February 2016, 2016 02, 12 December 15, 2018, for amounts yet to be determined. In August 2014, No. 2014 15, 2014 15, not one 2014 15 December 15, 2016, 2014 15 as of January 1, 2017. In March 2016, 2016 09, – Stock Compensation: Improvements to Employee Share-Based Payment Accounting” (“ASU 2016 09” 2016 09 2016 09 December 15, 2016. not In July 2017, 2017 11, 260 480 815 of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Under ASU 2017 11, not no 480, not December 15, 2018, 2017 11, 2017 not Management does not not
Reclassification, Policy [Policy Text Block]	1 7. Reclassifications occurred to certain prior year amounts in order to conform to the current year classifications. The reclassifications have no

Note A - The Company and Summ27

Note A - The Company and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	December 31, 201 7 201 6 Accounts receivable - current $ 2,889,731 $ 1,577,031 Accounts receivable - non current 1,760,000 2,070,000 4,649,731 3,647,031 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,000,000 ) (500,000 ) (1,013,785 ) (513,785 ) Accounts receivable, net of allowances for doubtful accounts $ 3,635,946 $ 3,133,246
Summary of Valuation Allowance [Table Text Block]	Balance at Beginning of Year Charged to Costs and Expenses Deductions From Reserves Balance at End of Year Year Ended December 31, 201 7 Allowance for Doubtful Accounts $ 513,785 $ 500,000 $ - $ 1,013,785 Year Ended December 31, 201 6 Allowance for Doubtful Accounts $ 13,785 $ 500,000 $ - $ 513,785
Useful Lives of Property Plan and Equipment [Table Text Block]	Years 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, 2017 2016 Selling, general and administrative $ 864,036 $ 353,056 Research, development and engineering 108,728 74,786 $ 972,764 $ 427,842
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Year ended December 31, 2017 2016 Weighted average Risk free interest rate 1.92 % 1.11 % Expected life of options (in years) 4.51 4.50 Expected dividends 0 % 0 % Weighted average Volatility of stock price 138 % 93 %

Note B - Factoring (Tables)

Note B - Factoring (Tables)	12 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	December 31, 201 7 201 6 Accounts receivable - current $ 2,889,731 $ 1,577,031 Accounts receivable - non current 1,760,000 2,070,000 4,649,731 3,647,031 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,000,000 ) (500,000 ) (1,013,785 ) (513,785 ) Accounts receivable, net of allowances for doubtful accounts $ 3,635,946 $ 3,133,246
Factoring Fees [Table Text Block]	Years Ended December 31, 2017 2016 Factoring fees $ 224,142 $ 341,023
Factored Accounts Receivable [Member]
Notes Tables
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	Original Invoice Value Factored Amount Factored Balance due Year Ended December 31, 2017 Factored accounts receivable $ 423,349 $ 313,484 $ 109,865 Year Ended December 31, 2016 Factored accounts receivable $ 214,556 $ 160,918 $ 53,638

Note D - Concentration of Risk

Note D - Concentration of Risk (Tables)	12 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]	Years Ended December 31, 201 7 201 6 Customer A 54 % 34 % Customer B * 12 %
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	As of December 31, 201 7 201 6 Customer A 55 % 35 % Customer B 37 % 56 %

Note E - Inventory (Tables)

Note E - Inventory (Tables)	12 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Inventory, Current [Table Text Block]	2017 2016 Current Finished goods 487,858 381,762 Fabricated assemblies 458,989 83,666 Total current inventory $ 946,847 $ 465,428

Note F - Resalable Software L31

Note F - Resalable Software Licenses Rights (Tables)	12 Months Ended
	Dec. 31, 2017
Notes Tables
Software License Rights [Table Text Block]	2017 2016 Current software license rights $ 2,640,000 $ 1,560,000 Non-current software license rights 7,933,808 10,598,411 Total software license rights $ 10,573,808 $ 12,158,411
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Years ending December 31 2018 2,640,000 2019 3,000,000 2020 2,400,000 2021 1,200,000 2022 720,000 Thereafter 613,808

Note G - Equipment and Leaseh32

Note G - Equipment and Leasehold Improvements (Tables)	12 Months Ended
	Dec. 31, 2017
Notes Tables
Property, Plant and Equipment [Table Text Block]	2017 2016 Equipment $ 567,473 $ 403,425 Furniture and fixtures 164,079 162,067 Software 32,045 32,045 Leasehold improvements 23,403 23,403 787,000 620,940 Less accumulated depreciation and amortization (605,835 ) (553,126 ) Total $ 181,165 $ 67,814

Note H - Intangible Assets (Tab

Note H - Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	2017 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and patents pending $ 347,946 $ (166,842 ) $ 181,104 $ 287,248 $ (153,116 ) $ 134,132 Total $ 347,946 $ (166,842 ) $ 181,104 $ 287,248 $ (153,116 ) $ 134,132

Note I - Accrued Liabilities (T

Note I - Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Accrued Liabilities [Table Text Block]	201 7 201 6 Compensation $ 341,884 $ 66,152 Compensated absences 164,132 154,368 Accrued legal and accounting fees 85,633 79,633 Sales tax payable 5,614 26,988 Factoring fees 32,357 3,600 Other 58,403 4,582 Total $ 688,023 $ 335,323

Note M - Commitments and Cont35

Note M - Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Years ending December 31, 201 8 148,862 2019 45,033 20 20 31,898 $ 225,793

Note N - Equity (Tables)

Note N - Equity (Tables)	12 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	Total Warrants Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding, as of January 1, 2016 1,704,628 4.40 3.02 Granted — — Exercised — — Forfeited — — Expired (444,548 ) 6.00 Outstanding, as of December 31, 2016 1,260,080 3.84 2.78 — Granted 138,889 3.60 Exercised — — Forfeited — — Expired — — Outstanding, as of December 31, 2017 1,398,969 3.81 2.06 — Vested or expected to vest at December 31, 2017 1,398,969 3.81 2.06 — Exercisable at December 31, 2017 1,398,969 3.81 2.06 —

Note O - Stock Options (Tables)

Note O - Stock Options (Tables)	12 Months Ended
	Dec. 31, 2017
Notes Tables
Share-based Compensation, Stock Options, Activity [Table Text Block]	Number of Options Weighted average Weighted average remaining Aggregate 1999 Plan 2004 Plan 2015 Plan Non Plan Total exercise price life (in years) intrinsic value Outstanding, as of December 31, 2015 20,834 85,008 — 259,088 364,930 $ 3.87 Granted — — 27,087 — 27,087 2.74 Exercised — — — — — Forfeited — — (2,084 ) (8,335 ) (10,419 ) 2.16 Expired (20,834 ) (15,628 ) — (3,473 ) (39,935 ) 2.50 Outstanding, as of December 31, 2016 — 69,380 25,003 247,280 341,663 $ 3.99 4.23 $ 53,936 Granted — — 64,167 1,170,000 1,234,167 2.69 Exercised — — — (4,167 ) (4,167 ) 2.16 Forfeited — — (7,084 ) (65,140 ) (72,224 ) 2.62 Expired — (17,084 ) — (4,862 ) (21,946 ) 8.86 Outs tanding, as of December 31, 2017 — 52,296 82,086 1,343,111 1,477,493 $ 2.91 5.64 $ 0 Vested or expec ted to vest at December 31, 2017 1,083,691 $ 2.98 5.43 $ 0 Exercisable at December 31, 2017 261,294 $ 3.96 3.09 $ 0
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 shares Weighted average exercise price Weighted average remaining life (in years) Number exercisable Weighted average exercise price $ 1.90 - 2.50 87,064 $ 2.16 4.65 56,422 $ 2.16 2.51 - 3.50 1,207,296 2.70 6.15 21,740 3.23 3.51 - 5.04 183,132 4.60 2.77 183,132 4.60 $ 1.90 - 5.04 1,477,493 261,294

Note P - Income Taxes (Tables)

Note P - Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	2017 2016 Current asset: Accrued compensation $ 118,000 $ 67,000 Accounts receivable allowance 277,000 202,000 Non-current asset (liability): Stock-based compensation 387,000 360,000 Basis differences in fixed assets (18,000 ) (8,000 ) Basis differences in intangible assets 46,000 60,000 Net operating loss and credit carryforwards 12,052,000 18,597,000 Valuation allowances (12,862,000 ) (19,278,000 ) $ — $ —
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	2017 2016 Federal statutory income tax rate 34 % 34 % Permanent differences — — Change in tax laws/tax rate (13 ) - Effect of net operating loss (21 ) (34 ) Effective tax rate — % — %

Note R - Earnings Per Share (39

Note R - Earnings Per Share (EPS) (Tables)	12 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	2017 2016 Basic Numerator: Loss from continuing operations $ (4,275,338 ) $ (4,189,704 ) Convertible preferred stock dividends (769,158 ) (802,500 ) Net loss available to common stockholders (basic and diluted EPS) $ (5,044,496 ) $ (4,992,204 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Years ended December 31, 2017 2016 Preferred stock 5,264,422 5,416,667 Stock options 15,529 17,657 Warrants 2,109 1,018 Potentially dilutive securities 5,282,060 5,435,342 Years ended December 31, 2017 2016 Stock options 1,390,428 235,845 Warrants 1,351,052 1,212,163 Total 2,741,480 1,448,008

Note A - The Company and Summ40

Note A - The Company and Summary of Significant Accounting Policies (Details Textual)	Dec. 29, 2016	Dec. 31, 2017USD ($)shares	Dec. 31, 2016USD ($)shares	Dec. 31, 2015USD ($)
Retained Earnings (Accumulated Deficit)		$ (67,076,492)	$ (62,801,154)
Cash and Cash Equivalents, at Carrying Value		288,721	1,061,307	$ 4,321,078
Operational Costs Per Month		592,000
Allowance for Doubtful Accounts Receivable, Noncurrent		$ 1,000,000	500,000
Percentage of Remaining Balance Owned Reserved		57.00%
Advertising Expense		$ 386,000	$ 299,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares		1,234,167	27,087
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Licensing Agreements [Member]
Finite-Lived Intangible Asset, Useful Life		10 years
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	12

Note A - The Company and Summ41

Note A - The Company and Summary of Significant Accounting Policies - Summary of Accounts Receivable (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Accounts receivable - current	$ 2,889,731	$ 1,577,031
Accounts receivable - non current	1,760,000	2,070,000
	4,649,731	3,647,031
Allowance for doubtful accounts - current	(13,785)	(13,785)
Allowance for doubtful accounts - non current	(1,000,000)	(500,000)
	(1,013,785)	(513,785)
Accounts receivable, net of allowances for doubtful accounts	$ 3,635,946	$ 3,133,246

Note A - The Company and Summ42

Note A - The Company and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - Allowance for Doubtful Accounts [Member] - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Balance at beginning of year	$ 513,785	$ 13,785
Charges to costs and expenses	500,000	500,000
Deductions from reserves
Balance at end of year	$ 1,013,785	$ 513,785

Note A - The Company and Summ43

Note A - The Company and Summary of Significant Accounting Policies - Estimated Useful Lives for Depreciation and Amortization (Details)	12 Months Ended
	Dec. 31, 2017
Equipment [Member] | Minimum [Member]
Property, Plant, and Equipment (Year)	3 years
Equipment [Member] | Maximum [Member]
Property, Plant, and Equipment (Year)	5 years
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant, and Equipment (Year)	3 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant, and Equipment (Year)	5 years
Software Development [Member]
Property, Plant, and Equipment (Year)	3 years
Leasehold Improvements [Member]
Property, Plant, and Equipment, useful life	life or lease term

Note A - The Company and Summ44

Note A - The Company and Summary of Significant Accounting Policies - Share-based Compensation Expenses for Continuing Operations (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based compensation expense	$ 972,764	$ 427,842
Selling, General and Administrative Expenses [Member]
Share-based compensation expense	864,036	353,056
Research and Development Expense [Member]
Share-based compensation expense	$ 108,728	$ 74,786

Note A - The Company and Summ45

Note A - The Company and Summary of Significant Accounting Policies - Valuation Assumptions for Stock Options (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Weighted average Risk free interest rate	1.92%	1.11%
Expected life of options (in years) (Year)	4 years 186 days	4 years 182 days
Expected dividends	0.00%	0.00%
Weighted average Volatility of stock price	138.00%	93.00%

Note B - Factoring (Details Tex

Note B - Factoring (Details Textual)	1 Months Ended
	Dec. 31, 2011USD ($)
Factoring Arrangement Term	2 years
Factoring Arrangement, Minimum Amount of Accounts Receivable Per Quarter	$ 150,000
Minimum [Member]
Factoring Fees Percent	2.75%
Maximum [Member]
Factoring Fees Percent	15.00%
Geographic Distribution, Foreign [Member]
Percentage Of Accounts Receivable Remitted By Factor	35.00%
Geographic Distribution, Domestic [Member]
Percentage Of Accounts Receivable Remitted By Factor	75.00%

Note B - Factoring - Due From F

Note B - Factoring - Due From Factor (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Original invoice value	$ 423,349	$ 214,556
Factored amount	313,484	160,918
Factored balance due	$ 109,865	$ 53,638

Note B - Factoring - Fees (Deta

Note B - Factoring - Fees (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Factoring fees	$ 224,142	$ 341,023

Note D - Concentration of Ris49

Note D - Concentration of Risk (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash, Uninsured Amount	$ 0	$ 811,000
Accounts Receivable, Net	3,635,946	3,133,246
Allowance for Doubtful Accounts Receivable, Noncurrent	$ 1,000,000	$ 500,000
Percentage of Remaining Balance Owned Reserved	57.00%
Customer B [Member]
Accounts Receivable, Net	$ 1,760,000
Allowance for Doubtful Accounts Receivable, Noncurrent	$ 1,000,000
Percentage of Remaining Balance Owned Reserved	57.00%

Note D - Concentration of Ris50

Note D - Concentration of Risk - Revenue Concentration Risk by Major Customer (Details) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member]	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Customer A [Member]
Percentage of revenues	54.00%	34.00%
Customer B [Member]
Percentage of revenues		12.00%

Note D - Concentration of Ris51

Note D - Concentration of Risk - Accounts Receivable Concentration Risk by Major Customer (Details) - Accounts Receivable [Member] - Customer Concentration Risk [Member]	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Customer A [Member]
Percentage of revenues	55.00%	35.00%
Customer B [Member]
Percentage of revenues	37.00%	56.00%

Note E - Inventory - Components

Note E - Inventory - Components of Inventory (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Finished goods	$ 487,858	$ 381,762
Fabricated assemblies	458,989	83,666
Total current inventory	$ 946,847	$ 465,428

Note F - Resalable Software L53

Note F - Resalable Software Licenses Rights (Details Textual) - USD ($)	Dec. 31, 2015	Nov. 11, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017
Payments to Acquire Intangible Assets			$ 60,698
Software License Rights, Current			2,640,000	1,560,000	$ 2,640,000
Amortization of Intangible Assets			13,726	13,606
Software License Rights			10,573,808	12,158,411	10,573,808
Payments to Acquire Software	$ 180,000
License Costs			2,802,860	513,218
Software License Rights, Noncurrent			$ 7,933,808	10,598,411	7,933,808
Licensing Agreements [Member]
Payments to Acquire Intangible Assets		$ 12,000,000
Finite-Lived Intangible Asset, Useful Life			10 years
Amortization of Intangible Assets			$ 1,556,687	1,909
Software License Rights [Member]
Amortization of Intangible Assets					1,558,596
Software License Rights			10,441,404		10,441,404
Payments to Acquire Software			8,000
License Costs			35,916	$ 19,680	47,596
Software License Rights, Noncurrent			$ 132,404		$ 132,404

Note F - Resalable Software L54

Note F - Resalable Software Licenses Rights - Summary of Software License Rights (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Resalable software license rights	$ 2,640,000	$ 1,560,000
Resalable software license rights, net of current portion	7,933,808	10,598,411
Total software license rights	$ 10,573,808	$ 12,158,411

Note F - Resalable Software L55

Note F - Resalable Software Licenses Rights - Amortization Expense (Details)	Dec. 31, 2017USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 14,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	14,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	14,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	14,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	14,000
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	111,000
Licensing Agreements [Member]
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	2,640,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	3,000,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	2,400,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	1,200,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	720,000
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	$ 613,808

Note G - Equipment and Leaseh56

Note G - Equipment and Leasehold Improvements (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Selling, General and Administrative Expenses [Member]
Depreciation, Depletion and Amortization, Nonproduction	$ 52,709	$ 49,038

Note G - Equipment and Leaseh57

Note G - Equipment and Leasehold Improvements - Summary of Equipment and Leasehold Improvements (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Property, plant, and equipment, gross	$ 787,000	$ 620,940
Less accumulated depreciation and amortization	(605,835)	(553,126)
Total	181,165	67,814
Equipment [Member]
Property, plant, and equipment, gross	567,473	403,425
Furniture and Fixtures [Member]
Property, plant, and equipment, gross	164,079	162,067
Software Development [Member]
Property, plant, and equipment, gross	32,045	32,045
Leasehold Improvements [Member]
Property, plant, and equipment, gross	$ 23,403	$ 23,403

Note H - Intangible Assets (Det

Note H - Intangible Assets (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Amortization of Intangible Assets	$ 13,726	$ 13,606
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	14,000
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	111,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	14,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	14,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	14,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	14,000
Research, Development, and Engineering Expense [Member]
Amortization of Intangible Assets	$ 13,726	$ 13,606

Note H - Intangible Assets - Su

Note H - Intangible Assets - Summary of Intangible Assets (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Gross carrying amount	$ 347,946	$ 287,248
Accumulated amortization	(166,842)	(153,116)
Net carrying amount	181,104	134,132
Patents [Member]
Gross carrying amount	347,946	287,248
Accumulated amortization	(166,842)	(153,116)
Net carrying amount	$ 181,104	$ 134,132

Note I - Accrued Liabilities -

Note I - Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Compensation	$ 341,884	$ 66,152
Compensated absences	164,132	154,368
Accrued legal and accounting fees	85,633	79,633
Sales tax payable	5,614	26,988
Factoring fees	32,357	3,600
Other	58,403	4,582
Total	$ 688,023	$ 335,323

Note J - Related Party (Details

Note J - Related Party (Details Textual) - USD ($)	Oct. 17, 2017	Sep. 22, 2017	Apr. 28, 2017	Nov. 18, 2016	Nov. 11, 2016	Dec. 31, 2017	Dec. 31, 2016	Aug. 07, 2017	Nov. 11, 2015
Share Price						$ 1.77
Proceeds from Issuance of Common Stock						$ 2,000,000	$ 1,860,000
Conversion of Dividends Payable, Amount Converted						$ 540,000
Conversion of Dividends Payable, Shares Issued		150,000
Maximum Ownership as a Result of Conversion	35.00%							9.99%
Conversion of Series A-1 Shares into Common Stock [Member]
Conversion of Stock, Shares Converted	27,404	27,404
Preferred Stock, Conversion Price	$ 3.60	$ 3.60
Conversion of Stock, Shares Issued	761,222	761,222
Director and Executive Officer [member]
Stock Issued During Period, Shares, New Issues		277,778	277,778
Share Price			$ 3.60
Proceeds from Issuance of Common Stock		$ 1,000,000	$ 1,000,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		138,889
Stock and Warrants Issued During Period, Vaue		$ 1,540,000
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 3.60
Conversion of Dividends Payable, Amount Converted		$ 540,000
Conversion of Dividends Payable, Shares Issued		150,000
Director [Member]
Software License, Total									$ 12,000,000
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners									33.20%
Wong Kwok Fong [Member]
Stock Issued During Period, Shares, New Issues				516,667	516,667
Share Price				$ 3.60
Proceeds from Issuance of Common Stock				$ 1,860,000	$ 1,860,000

Note K - Deferred Revenue (Deta

Note K - Deferred Revenue (Details Textual) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Maintenance Contracts [Member]
Deferred Revenue, Current	$ 508,000	$ 633,000

Note L - Segment Information (D

Note L - Segment Information (Details Textual)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Number of Reportable Segments	1
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | North America [Member]
Concentration Risk, Percentage	87.00%	78.00%

Note M - Commitments and Cont64

Note M - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Selling, General and Administrative Expenses [Member]
Operating Leases, Rent Expense	$ 221,000	$ 193,000

Note M - Commitments and Cont65

Note M - Commitments and Contingencies - Future Minimum Rental Commitments of Non-cancelable Operating Leases (Details)	Dec. 31, 2017USD ($)
2,018	$ 148,862
2,019	45,033
2,020	31,898
	$ 225,793

Note N - Equity (Details Textua

Note N - Equity (Details Textual)	Nov. 13, 2017USD ($)shares	Oct. 17, 2017USD ($)$ / sharesshares	Sep. 22, 2017USD ($)$ / sharesshares	Aug. 09, 2017USD ($)shares	May 11, 2017USD ($)shares	May 02, 2017USD ($)$ / shares	Apr. 28, 2017USD ($)$ / sharesshares	Mar. 15, 2017USD ($)shares	Dec. 29, 2016	Nov. 18, 2016USD ($)$ / sharesshares	Nov. 11, 2016USD ($)shares	Nov. 11, 2015USD ($)$ / sharesshares	Oct. 29, 2015USD ($)$ / sharesshares	Sep. 23, 2015$ / sharesshares	Mar. 09, 2015	Nov. 13, 2014USD ($)$ / sharesshares	Nov. 08, 2013USD ($)$ / sharesshares	Oct. 25, 2013shares	May 31, 2017USD ($)$ / sharesshares	Sep. 30, 2016USD ($)	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Aug. 07, 2017	Nov. 30, 2016$ / shares
Preferred Stock, Shares Authorized																					5,000,000
Preferred Stock, Par or Stated Value Per Share | $ / shares																					$ 0.0001	$ 0.0001
Share Price | $ / shares																					$ 1.77
Maximum Ownership as a Result of Conversion		35.00%																					9.99%
Conversion of Dividends Payable, Amount Converted | $																					$ 540,000
Conversion of Dividends Payable, Shares Issued			150,000
Dividends Payable | $																					630,408	401,250
Payments of Stock Issuance Costs | $																					80,366	84,866
Proceeds from Issuance of Common Stock | $																					2,000,000	1,860,000
Committed Equity Facility Amount | $						$ 5,000,000
Committed Equity Facility, Term						3 years
Maximum Dollar Amount of Shares to Purchase Based on Daily Volume Weighted Average Price of the Company’s Common Stock | $						$ 100,000
Period for Maximum Dollar Amount of Shares to Purchase						5 days
Per Share Price That Is Used in Calculation for Purchase Price under Committed Equity Facility | $ / shares						$ 3.83
Percentage of Lowest VWAP That Equals or Exceeds Specified per Share Price under Committed Equity Facility						94.00%
Equity Facility, Aggregate Sales Limitation, Percentage of Total Outstanding Share						19.99%
Maximum Ownership of Company’s Common Stock Requirement under Committed Equity Facility Sale, Percentage						9.99%
Stock Issued During Period, Shares, Issued for Services																			61,667
Stock Issued During Period, Value, Issued for Services | $																			$ 156,584		$ 354,585	$ 105,000
Stock Issued During Period As a Commitment Fee, Shares																			55,000
Stock Issued During Period As a Commitment Fee, Value | $																			$ 198,000
Stock Issued During Period, Issued for Services, Weighted Average Share Price | $ / shares																			$ 2.54
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures																					1,610
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period																					4,167	0
Stock Issued During Period, Value, New Issues | $																					$ 2,000,000	$ 1,860,000
September 2015 Warrants [Member]
Debt Instrument, Unamortized Discount | $																				$ 92,199
Fair Value Adjustment of Warrants | $																				$ 4,607
September 2017 [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares			$ 3.60
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			138,889
Term Of Warrant			5 years
Promissory Note [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights														69,445
Warrants Issued Under PISPA [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | $																						7,478
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $																						$ 0
Warrants Issued Under PISPA [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | $																	$ 325,891
Common Stock [Member]
Stock Issued During Period, Shares, New Issues																					555,556	516,667
Stock Issued During Period, Shares, Issued for Services																					117,849	41,667
Stock Issued During Period, Value, Issued for Services | $																					$ 12	$ 4
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures																					11,244	27,248
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period																					1,610
Stock Issued During Period, Value, New Issues | $																					$ 56	$ 52
Warrant [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Assumptions, Expected Term															5 years
Private Investor SPA [Member]
Stock Issued During Period, Shares, New Issues																664,584
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares																	$ 6
Class of Warrant or Right, Number of Securities Called by Warrants or Rights																996,877
Stock Issued During Period, Value, New Issues | $																	$ 3,697,100
Term Of Warrant																	3 years
Proceeds from Issuance of Private Placement | $																$ 1,595,000
Placement Agent Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights																	82,158
Commissions and Fees, Percent of Gross Proceeds																	8.00%
Private Investor SPA [Member]
Stock Issued During Period, Shares, New Issues																		1,026,972
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares																$ 3.60								$ 3.60
Private Investor SPA [Member] | Common Stock [Member]
Stock Issued During Period, Shares, New Issues																		1,026,972
Private Investor SPA [Member] | Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights																		1,026,972
Consultancy Firm [Member]
Share Price | $ / shares																						$ 2.52
Stock Issued During Period, Shares, Issued for Services																						41,667
Stock Issued During Period, Value, Issued for Services | $																						$ 105,000
Conversion of Series A-1 Shares into Common Stock [Member]
Conversion of Stock, Shares Converted		27,404	27,404
Conversion of Stock, Shares Issued		761,222	761,222
Preferred Stock, Conversion Price | $ / shares		$ 3.60	$ 3.60
Director and Executive Officer [member]
Stock Issued During Period, Shares, New Issues			277,778				277,778
Share Price | $ / shares							$ 3.60
Initial Conversion Price | $ / shares							$ 3.60
Conversion of Dividends Payable, Amount Converted | $			$ 540,000
Conversion of Dividends Payable, Shares Issued			150,000
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares			$ 3.60
Proceeds from Issuance of Common Stock | $			$ 1,000,000				$ 1,000,000
Stock Issued During Period, Shares, Cash Issuance and Conversion of Dividend Payable			427,778
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			138,889
Stock and Warrants Issued During Period, Vaue | $			$ 1,540,000
Director [Member]
Stock Issued During Period, Shares, Issued for Services	2,276			5,148	1,925			1,895
Stock Issued During Period, Value, Issued for Services | $	$ 4,005			$ 18,017	$ 5,005			$ 5,003
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures																						18,914
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $																						$ 45,000
Chief Executive Officer [Member]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures																						8,334
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $																						$ 17,000
Wong Kwok Fong [Member]
Stock Issued During Period, Shares, New Issues										516,667	516,667
Share Price | $ / shares										$ 3.60
Proceeds from Issuance of Common Stock | $										$ 1,860,000	$ 1,860,000
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio									12
Series A-1 Convertible Preferred Stock [Member]
Preferred Stock, Shares Authorized																					100,000	100,000
Preferred Stock, Par or Stated Value Per Share | $ / shares																					$ 0.0001	$ 0.0001
Preferred Stock, Shares Outstanding																					62,596	90,000
Stock Issued During Period, Shares, New Issues												5,500	84,500
Share Price | $ / shares												$ 100	$ 100
Proceeds from Issuance of Convertible Preferred Stock | $												$ 550,000	$ 8,450,000
Initial Conversion Price | $ / shares												$ 3.60	$ 3.60
Preferred Stock, Dividend Rate, Percentage												6.00%
Period Preceding the Dividend Payment Date												10 days
Conversion of Dividends Payable, Amount Converted | $		$ 27,404	$ 540,000
Conversion of Dividends Payable, Shares Issued		761,222	150,000
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares		$ 3.60	$ 3.60
Dividends Payable | $																					$ 236,658	$ 270,000
Preferred Stock, Shares Issued																					62,596	90,000
Series A-1 Convertible Preferred Stock [Member] | Maximum [Member]
Maximum Ownership as a Result of Conversion												9.99%
Series B-1 Convertible Preferred Stock [Member]
Preferred Stock, Shares Authorized																					105,000	105,000
Preferred Stock, Par or Stated Value Per Share | $ / shares																					$ 0.0001	$ 0.0001
Preferred Stock, Shares Outstanding																					105,000	105,000
Stock Issued During Period, Shares, New Issues												105,000
Share Price | $ / shares												$ 100
Proceeds from Issuance of Convertible Preferred Stock | $												$ 10,500,000
Preferred Stock, Dividend Rate, Percentage												2.50%
Period Preceding the Dividend Payment Date												10 days
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares												$ 3.60
Dividends Payable | $																					$ 393,750	$ 131,250
Liquidation Value Per Share | $ / shares												$ 100
Preferred Stock, Shares Issued																					105,000	105,000
Series B-1 Convertible Preferred Stock [Member] | Maximum [Member]
Maximum Ownership as a Result of Conversion												9.99%
September 2015 Warrants [Member]
Initial Conversion Price | $ / shares														$ 3.60
Term Of Warrant														5 years

Note N - Equity - Summary of Wa

Note N - Equity - Summary of Warrant Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Total warrants (in shares)	1,260,080	1,704,628
Weighted average exercise price (in dollars per share)	$ 3.84	$ 4.40
Weighted average remaining contractual life (Year)	2 years 21 days	2 years 284 days	3 years 7 days
Granted (in shares)	138,889
Granted, weighted average exercise price (in dollars per share)	$ 3.60
Exercised (in shares)
Exercised, weighted average exercise price (in dollars per share)
Forfeited (in shares)
Forfeited, weighted average exercise price (in dollars per share)
Expired (in shares)		(444,548)
Expired, weighted average exercise price (in dollars per share)		$ 6
Total warrants (in shares)	1,398,969	1,260,080	1,704,628
Weighted average exercise price (in dollars per share)	$ 3.81	$ 3.84	$ 4.40
Vested or expected to vest at December 31, 2017 (in shares)	1,398,969
Vested or expected to vest at December 31, 2017 (in dollars per share)	$ 3.81
Vested or expected to vest at December 31, 2017 (Year)	2 years 21 days
Exercisable at December 31, 2017 (in shares)	1,398,969
Exercisable at December 31, 2017 (in dollars per share)	$ 3.81
Exercisable at December 31, 2017 (Year)	2 years 21 days

Note O - Stock Options (Details

Note O - Stock Options (Details Textual) - USD ($)	Jan. 27, 2016	Oct. 12, 2004	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term			5 years 233 days	4 years 83 days
Share Price			$ 1.77
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number			261,294
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 2.32	$ 1.86
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value			$ 5,667	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value			197,281	$ 285,430
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options			$ 1,634,611
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 69 days
In The Money Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number			0
The2004 Stock Option Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance		166,667
The2004 Stock Option Plan [Member] | Nonstatutory Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term		10 years
The2004 Stock Option Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent		85.00%
The 2015 Equity Incentive Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance	666,667
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
The 2015 Equity Incentive Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	100.00%
The 2015 Equity Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	110.00%

Note O - Stock Options - Option

Note O - Stock Options - Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Outstanding (in shares)	341,663	364,930
Outstanding, weighted average exercise price (in dollars per share)	$ 3.99	$ 3.87
Granted (in shares)	1,234,167	27,087
Granted, weighted average exercise price (in dollars per share)	$ 2.69	$ 2.74
Exercise of stock options (in shares)	4,167	0
Exercised, weighted average exercise price (in dollars per share)	$ 2.16
Forfeited (in shares)	(72,224)	(10,419)
Forfeited, weighted average exercise price (in dollars per share)	$ 2.62	$ 2.16
Expired (in shares)	(21,946)	(39,935)
Expired, weighted average exercise price (in dollars per share)	$ 8.86	$ 2.50
Outstanding (in shares)	1,477,493	341,663
Outstanding, weighted average exercise price (in dollars per share)	$ 2.91	$ 3.99
Outstanding, weighted average remaining life (Year)	5 years 233 days	4 years 83 days
Outstanding, aggregate intrinsic value	$ 0	$ 53,936
Exercised (in shares)	(4,167)	0
Vested or expected to vest at December 31, 2017 (in shares)	1,083,691
Vested or expected, weighted average exercise price (in dollars per share)	$ 2.98
Vested or expected to vest, weighted average remaining life (Year)	5 years 156 days
Vested or expected to vest, aggregate intrinsic value	$ 0
Exercisable at December 31, 2017 (in shares)	261,294
Options exercisable, weighted average exercise price (in dollars per share)	$ 3.96
Exercisable, weighted average remaining life (Year)	3 years 32 days
Exercisable, aggregate intrinsic value	$ 0
The1999 Stock Option Plan [Member]
Outstanding (in shares)		20,834
Granted (in shares)
Exercise of stock options (in shares)
Forfeited (in shares)
Expired (in shares)		(20,834)
Outstanding (in shares)
Exercised (in shares)
The2004 Stock Option Plan [Member]
Outstanding (in shares)	69,380	85,008
Granted (in shares)
Exercise of stock options (in shares)
Forfeited (in shares)
Expired (in shares)	(17,084)	(15,628)
Outstanding (in shares)	52,296	69,380
Exercised (in shares)
The 2015 Equity Incentive Plan [Member]
Outstanding (in shares)	25,003
Granted (in shares)	64,167	27,087
Exercise of stock options (in shares)
Forfeited (in shares)	(7,084)	(2,084)
Expired (in shares)
Outstanding (in shares)	82,086	25,003
Exercised (in shares)
Non Plan [Member]
Outstanding (in shares)	247,280	259,088
Granted (in shares)	1,170,000
Exercise of stock options (in shares)	4,167
Forfeited (in shares)	(65,140)	(8,335)
Expired (in shares)	(4,862)	(3,473)
Outstanding (in shares)	1,343,111	247,280
Exercised (in shares)	(4,167)

Note O - Stock Options - Opti70

Note O - Stock Options - Options Outstanding and Exercisable (Details)	12 Months Ended
	Dec. 31, 2017$ / sharesshares
Range of exercise prices, lower range (in dollars per share)	$ 1.90
Range of exercise prices, upper range (in dollars per share)	$ 5.04
Options outstanding (in shares) | shares	1,477,493
Options exercisable (in shares) | shares	261,294
Options exercisable, weighted average exercise price (in dollars per share)	$ 3.96
Exercise Price Range 1 [Member]
Range of exercise prices, lower range (in dollars per share)	1.90
Range of exercise prices, upper range (in dollars per share)	$ 2.50
Options outstanding (in shares) | shares	87,064
Options outstanding, weighted average exercise price (in dollars per share)	$ 2.16
Options outstanding, weighted average remaining remaining life (Year)	4 years 237 days
Options exercisable (in shares) | shares	56,422
Options exercisable, weighted average exercise price (in dollars per share)	$ 2.16
Exercise Price Range 2 [Member]
Range of exercise prices, lower range (in dollars per share)	2.51
Range of exercise prices, upper range (in dollars per share)	$ 3.50
Options outstanding (in shares) | shares	1,207,296
Options outstanding, weighted average exercise price (in dollars per share)	$ 2.70
Options outstanding, weighted average remaining remaining life (Year)	6 years 54 days
Options exercisable (in shares) | shares	21,740
Options exercisable, weighted average exercise price (in dollars per share)	$ 3.23
Exercise Price Range 3 [Member]
Range of exercise prices, lower range (in dollars per share)	3.51
Range of exercise prices, upper range (in dollars per share)	$ 5.04
Options outstanding (in shares) | shares	183,132
Options outstanding, weighted average exercise price (in dollars per share)	$ 4.60
Options outstanding, weighted average remaining remaining life (Year)	2 years 281 days
Options exercisable (in shares) | shares	183,132
Options exercisable, weighted average exercise price (in dollars per share)	$ 4.60

Note P - Income Taxes (Details

Note P - Income Taxes (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		34.00%	34.00%
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards		$ 57,064,000
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%

Note P - Income Taxes - Compone

Note P - Income Taxes - Components of Deferred Taxes (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Current asset:
Accrued compensation	$ 118,000	$ 67,000
Accounts receivable allowance	277,000	202,000
Stock-based compensation	387,000	360,000
Basis differences in fixed assets	(18,000)	(8,000)
Basis differences in intangible assets	46,000	60,000
Net operating loss and credit carryforwards	12,052,000	18,597,000
Valuation allowances	$ (12,862,000)	$ (19,278,000)

Note P - Income Taxes - Reconci

Note P - Income Taxes - Reconciliation of the Effective Income Tax Rate to US Federal Statutory Income Tax Rate (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Federal statutory income tax rate	34.00%	34.00%
Permanent differences
Change in tax laws/tax rate	(13.00%)
Effect of net operating loss	(21.00%)	(34.00%)
Effective tax rate

Note Q - Profit Sharing Plan (D

Note Q - Profit Sharing Plan (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 0	$ 0

Note R - Earnings Per Share (75

Note R - Earnings Per Share (EPS) - Reconciliation of Numerator of Basic and Diluted EPS Calculations (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Basic Numerator:
Loss from continuing operations	$ (4,275,338)	$ (4,189,704)
Convertible preferred stock dividends	(769,158)	(802,500)
Net loss available to common stockholders (basic and diluted EPS)	$ (5,044,496)	$ (4,992,204)

Note R - Earnings Per Share (76

Note R - Earnings Per Share (EPS) - Securities Excluded From the Diluted Per Share Calculation (Details) - shares	6 Months Ended		12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Exercise Price Less Than Average Market Price Of Common Shares [Member]
Antidilutive securities (in shares)			5,282,060	5,435,342
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Preferred Stock [Member]
Antidilutive securities (in shares)			5,264,422	5,416,667
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Employee Stock Option [Member]
Antidilutive securities (in shares)			15,529	17,657
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Warrant [Member]
Antidilutive securities (in shares)			2,109	1,018
Exercise Price Greater Than Average Market Price Of Common Shares [Member]
Antidilutive securities (in shares)	2,741,480	1,448,008
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Employee Stock Option [Member]
Antidilutive securities (in shares)	1,390,428	235,845
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Warrant [Member]
Antidilutive securities (in shares)	1,351,052	1,212,163

Note S - Subsequent Events (Det

Note S - Subsequent Events (Details Textual) - USD ($)	Mar. 28, 2018	Mar. 23, 2018	Nov. 13, 2017	Sep. 22, 2017	Aug. 09, 2017	May 11, 2017	Mar. 15, 2017	May 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Conversion of Dividends Payable, Shares Issued				150,000
Conversion of Dividends Payable, Amount Converted									$ 540,000
Stock Issued During Period, Shares, Issued for Services								61,667
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price									$ 2.69	$ 2.74
Stock Issued During Period As a Commitment Fee, Shares								55,000
Director [Member]
Stock Issued During Period, Shares, Issued for Services			2,276		5,148	1,925	1,895
Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		212,918
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 1.96
Stock Issued During Period As a Commitment Fee, Shares	762
Subsequent Event [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		7 years
Subsequent Event [Member] | Director [Member]
Stock Issued During Period, Shares, Issued for Services		7,659
Subsequent Event [Member] | Six Non-Employee Members of the Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		9,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 1.96
Subsequent Event [Member] | Six Non-Employee Members of the Board of Directors [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		7 years
Subsequent Event [Member] | Series B-1 Convertible Preferred Stock [Member]
Preferred Stock Conversion Limitation, Percent		19.99%
Subsequent Event [Member] | Conversion of Series B-1 Shares into Common Stock [Member]
Conversion of Stock, Shares Converted		60,240
Conversion of Stock, Shares Issued		1,678,334
Subsequent Event [Member] | Conversion of Dividends Payable on Series B-1 Preferred Stock to Common Stock [Member]
Conversion of Dividends Payable, Shares Issued		115,857
Conversion of Dividends Payable, Amount Converted		$ 417,084
Shares Issued, Price Per Share		$ 3.60