Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 14, 2018 | |
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) | 10,674,217 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 1,299,631 | $ 288,721 |
Accounts receivable, net | 305,176 | 2,875,946 |
Due from factor | 54,045 | 109,865 |
Inventory | 899,160 | 946,847 |
Resalable software license rights | 2,730,000 | 2,640,000 |
Prepaid expenses and other | 166,875 | 152,654 |
Total current assets | 5,454,887 | 7,014,033 |
Resalable software license rights, net of current portion | 7,196,348 | 7,933,808 |
Accounts receivable, net of current portion | 740,000 | 760,000 |
Equipment and leasehold improvements, net | 193,002 | 181,165 |
Capitalized contract costs, net | 365,367 | |
Deposits and other assets | 8,712 | 8,712 |
Intangible assets, net | 175,449 | 181,104 |
Total non-current assets | 8,678,878 | 9,064,789 |
TOTAL ASSETS | 14,133,765 | 16,078,822 |
LIABILITIES | ||
Accounts payable | 252,985 | 499,230 |
Accrued liabilities | 524,680 | 688,023 |
Dividends payable on preferred stock | 369,486 | 630,408 |
Deferred revenue | 374,439 | 507,866 |
Total current liabilities | 1,521,590 | 2,325,527 |
TOTAL LIABILITIES | 1,521,590 | 2,325,527 |
Commitments and contingencies | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock — authorized, 170,000,000 shares; issued and outstanding; 9,493,936 and 7,691,324 of $.0001 par value at March 31, 2018 and December 31, 2017, respectively | 949 | 769 |
Additional paid-in capital | 81,639,682 | 80,829,001 |
Accumulated deficit | (69,028,467) | (67,076,492) |
TOTAL STOCKHOLDERS’ EQUITY | 12,612,175 | 13,753,295 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 14,133,765 | 16,078,822 |
Series A-1 Convertible Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock | 6 | 6 |
Series B-1 Convertible Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock | $ 5 | $ 11 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Preferred stock, shares authorized (in shares) | 5,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.0001 | |
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 |
Common stock, shares issued (in shares) | 9,493,936 | 7,691,324 |
Common stock, shares outstanding (in shares) | 9,493,936 | 7,691,324 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
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 | 62,596 |
Preferred stock, shares outstanding (in shares) | 62,596 | 62,596 |
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) | 44,580 | 105,000 |
Preferred stock, shares outstanding (in shares) | 44,580 | 105,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Revenues | |||
Revenue | $ 841,455 | $ 1,418,335 | |
Costs and other expenses | |||
Costs and other expenses | 1,179,445 | 660,934 | |
Gross profit (loss) | (337,990) | 757,401 | |
Operating expenses | |||
Selling, general and administrative expenses | 1,461,854 | 1,620,150 | |
Research, development and engineering | 392,154 | 493,444 | |
Total operating expenses | 1,854,008 | 2,113,594 | |
Operating loss | (2,191,998) | (1,356,193) | |
Other income | |||
Interest income | 6 | 6 | |
Total other income | 6 | 6 | |
Net loss | (2,191,992) | (1,356,187) | |
Convertible preferred stock dividends | (156,162) | (200,625) | |
Net loss available to common stockholders | $ (2,348,154) | $ (1,556,812) | |
Basic & Diluted Loss per Common Share (in dollars per share) | $ (0.30) | $ (0.26) | |
Weighted Average Shares Outstanding: | |||
Basic & Diluted (in shares) | 7,851,514 | 6,094,955 | |
Service [Member] | |||
Revenues | |||
Revenue | $ 302,449 | $ 320,587 | |
Costs and other expenses | |||
Costs and other expenses | 154,733 | 38,820 | |
License [Member] | |||
Revenues | |||
Revenue | 102,719 | 496,568 | |
Costs and other expenses | |||
Costs and other expenses | 1,024,712 | 622,114 | |
Hardware [Member] | |||
Revenues | |||
Revenue | $ 436,287 | [1] | $ 601,180 |
[1] | EMEA - Europe, Middle East, Africa |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||
Net loss | $ (2,191,992) | $ (1,356,187) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Allowance for doubtful accounts | 500,000 | |
Depreciation | 21,020 | 7,819 |
Amortization of intangible assets | 5,655 | 3,402 |
Amortization of software license rights | 659,414 | 341,160 |
Amortization of capitalized contract costs | 18,668 | |
Stock based directors fees | 16,512 | 5,003 |
Share and warrant-based compensation for employees and consultants | 533,421 | 156,086 |
Change in assets and liabilities: | ||
Accounts receivable | 2,590,770 | 1,000,775 |
Due from factor | 55,820 | (64,253) |
Capitalized contract costs | (144,018) | |
Inventory | 47,687 | (105,527) |
Software license rights | (11,954) | 53,628 |
Prepaid expenses and other | (14,221) | (13,171) |
Accounts payable | (246,245) | (313,150) |
Accrued liabilities | (163,343) | 44,692 |
Deferred revenue | (133,427) | (143,324) |
Net cash provided by operating activities | 1,043,767 | 116,953 |
CASH FLOW FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (32,857) | (13,893) |
Net cash used for investing activities | (32,857) | (13,893) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||
Costs to issue preferred and common stock | (5,946) | |
Net cash used for financing activities | (5,946) | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,010,910 | 97,114 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 288,721 | 1,061,307 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 1,299,631 | 1,158,421 |
Cash paid for: | ||
Interest | ||
Noncash Investing and financing activities | ||
Accrual of unpaid preferred stock dividends | 156,162 | 200,625 |
Conversion of Dividends Payable, Amount Converted | 417,084 | |
Conversion of B-1 preferred stock to common stock | $ 6,042,000 |
Note 1 - Nature of Business and
Note 1 - Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | 1. NATURE OF BUSINESS AND BASIS OF PRESENTATION Nature of Business BIO-key International, Inc., founded in 1993, Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiary (collectively, the “Company” or “BIO-key”) and are stated in conformity with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The operating results for interim periods are not may In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all necessary adjustments, consisting only of those of a recurring nature, and disclosures to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented. The balance sheet at March 31, 2018 not 10 December 31, 2017, April 2, 2018. Recently Issued Accounting Pronouncements In May 2014, No. 2014 09, 2014 09 606 January 1, 2018 3 In February 2016, 2016 02, 12 December 15, 2018, In July 2017, 2017 11, 260 480 815 2017 11, not no 480, not December 15, 2018, 2017 11, 2017 not Management does not not Reclassification Reclassifications occurred to certain prior year amounts in order to conform to the current year classifications. The reclassifications have no |
Note 2 - Going Concern
Note 2 - Going Concern | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Substantial Doubt about Going Concern [Text Block] | 2. GOING CONCERN The Company has incurred significant losses to date and at March 31, 2018 $69 March 31, 2018, $1,300,000, $289,000 December 31, 2017. The Company has financed operations 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 estimates that it currently requires approximately $592,000 If the Company is unable to generate sufficient revenue to meet its 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 |
Note 3 - Revenue From Contracts
Note 3 - Revenue From Contracts with Customers | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3. REVENUE FROM CONTRACTS WITH CUSTOMERS The Company adopted ASC 606 January 1, 2018 not 2018 606 2017 605, Revenue Recognition 605 606 606, five ● Identify the contract with a customer ● Identify the performance obligations in the contract ● Determine the transaction price ● Allocate the transaction price to performance obligations in the contract ● Recognize revenue when or as the Company satisfies a performance obligation Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the three March 31, North America EMEA * Asia 2018 License fees $ 60,969 $ 41,750 $ - $ 102,719 Hardware 99,590 214,776 121,921 436,287 Support and Maintenance 177,916 8,713 13,970 200,599 Professional services 101,850 - - 101,850 Total Revenues 440,325 265,239 135,891 841,455 *EMEA – Europe, Middle East, Africa All of the Company's performance obligations, and associated revenue, are generally transferred to customers at a point in time, with the exception of support and maintenance, and professional services, which are generally transferred to the customer over time. Software licenses Software license revenue consist of fees for perpetual software licenses for one Hardware Hardware revenue consists of fees for associated equipment sold with or without a software license arrangement, such as servers, locks and fingerprint readers. Customers are not third may Support and Maintenance Support and Maintenance revenue consists of fees for unspecified upgrades, telephone assistance and bug fixes. The Company satisfies its Support and Maintenance performance obligation by providing “stand-ready” assistance as required over the contract period. We record deferred revenue (contract liability) at time of invoice until the contracts term occurs. Revenue is recognized over time on a ratable basis over the contract term. Support and Maintenance contracts are up to one Professional Services Professional services revenues primarily consist of fees for deployment and optimization services, as well as training. The majority of our consulting contracts are billed on a time and materials basis, and revenue is recognized based on the amount billable to the customer in accordance with practical expedient ASC 606 10 55 18. Contracts with Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the cloud applications sold, customer demographics, geographic locations, and the number and types of users within our contracts. We considered several factors in determining that control transfers to the customer upon shipment of hardware and availability of download of software. These factors include that legal title transfers to the customer, we have a present right to payment, and the customer has assumed the risks and rewards of ownership. Accounts receivable from our customers are typically due within 30 not Costs to Obtain and Fulfill a Contract Costs to obtain and fulfill a contract are predominantly sales commissions earned by our sales force and are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit that we have determined to be four three March 31, 2018 $18,700. Financial Statement Impact of Adopting ASC 606 The cost of obtaining the contract reflects the outcome of the sales effort in educating, demonstrating and selling our solutions. Accordingly under ASC 606, 606 not January 1, 2018 ( As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to the following select condensed consolidated balance sheet line items as of January 1, 2018: As reported - December 31, 2017 Adjustments As adjusted - January 1, 2018 Capitalized contract costs $ - $ 240,017 $ 240,017 Total assets $ 16,078,822 $ 240,017 $ 16,318,839 Accumulated deficit $ (67,076,492 ) $ 240,017 $ (66,836,475 ) Total Stockholders’ Equity $ 13,753,295 $ 240,017 $ 13,993,312 Total Liabilities and Stockholders’ Equity $ 16,078,822 $ 240,017 $ 16,318,839 Impact of New Revenue Guidance on Financial Statement Line Items The following table compares selected reported condensed consolidated balance sheet, statement of operations and cash flows, as of and for the three March 31, 2018, As reported Pro-forma Increase (decrease) Consolidated balance sheet data: Capitalized contract costs $ 365,367 $ - $ 365,367 Consolidated statement of operations data: Selling, general and administrative expenses $ 1,461,854 $ 1,587,204 $ 125,350 Net loss $ (2,191,992 ) $ (2,317,342 ) $ (125,350 ) Net loss available to common stockholders $ (2,348,154 ) $ (2,473,504 ) $ (125,350 ) Basic & Diluted Loss per Common Share $ (0.30 ) $ (0.32 ) $ (0.02 ) Consolidated statement of cash flow data: Net loss $ (2,191,992 ) $ (2,317,342 ) $ (125,350 ) Change in capitalized contract costs $ (125,350 ) $ - $ 125,350 Net cash provided by operating activities $ 1,043,767 $ 1,043,767 $ - Revenue recognized during the three March 31, 2018 $135,000 not $374,439 $507,866 March 31, 2018 December 31, 2017, Transaction Price Allocated to the Remaining Performance Obligations ASC 606 not March 31, 2018. ● The performance obligation is part of a contract that has an original expected duration of one 606 10 50 14. At March 31, 2018 one |
Note 4 - Accounts Receivable
Note 4 - Accounts Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. 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. As a result of the payment delays for a large customer, the Company has continued to reserve $1,000,000 March 31, 2018, 57% March 31, 2018 December 31, 2017 March 31, December 31, 201 8 201 7 Accounts receivable - current $ 318,961 $ 2,889,731 Accounts receivable - non current 1,740,000 1,760,000 2,058,961 4,649,731 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,000,000 ) (1,000,000 ) (1,013,785 ) (1,013,785 ) Accounts receivable, net of allowances for doubtful accounts $ 1,045,176 $ 3,635,946 |
Note 5 - Share Based Compensati
Note 5 - Share Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 5. SHARE BASED COMPENSATION The following table presents share-based compensation expenses for continuing operations included in the Company’s unaudited condensed consolidated statements of operations: Three Months Ended March 31, 201 8 201 7 Selling, general and administrative $ 471,146 $ 112,856 Research, development and engineering 78,787 48,233 $ 549,933 $ 161,089 |
Note 6 - Factoring
Note 6 - Factoring | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Factoring [Text Block] | 6. FACTORING Due from factor consisted of the following as of: March 31, December 31, 201 8 201 7 Original invoice value $ 216,178 $ 423,349 Factored amount (162,133 ) (313,484 ) Balance due from factor $ 54,045 $ 109,865 The Company entered into an accounts receivable factoring arrangement with a financial institution (the “Factor”) which has been extended to October 31, 2018. $150,000 35% 75% 2.75% 15% Three Months ended March 31, 201 8 201 7 Factoring fees $ 91,523 $ 48,391 |
Note 7 - Inventory
Note 7 - Inventory | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 7. INVENTORY Inventory is stated at the lower of cost, determined on a first first March 31, December 31, 201 8 201 7 Finished goods $ 435,191 $ 487,858 Fabricated assemblies 463,969 458,989 Total inventory $ 899,160 $ 946,847 |
Note 8 - Resalable Software Lic
Note 8 - Resalable Software Licenses Rights | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Research, Development, and Computer Software Disclosure [Text Block] | 8. RESALABLE SOFTWARE LICENSE RIGHTS On November 11, 2015, $12,000,000. 12 $2,730,000 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 $660,000 $388,092 three March 31, 2018 2017, $2,218,596 $9,781,404 March 31, 2018. On December 31, 2015, third $180,000 three $12,540, $6,696 three March 31, 2018 2017, $35,056 $144,944 March 31, 2018. March 31, December 31, 2018 2017 Current software license rights $ 2,730,000 $ 2,640,000 Non-current software license rights 7,196,348 7,933,808 Total software license rights $ 9,926,348 $ 10,573,808 |
Note 9 - Earnings Per Share ("E
Note 9 - Earnings Per Share ("EPS") | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9. EARNINGS PER SHARE (“EPS”) The Company’s basic EPS is calculated using net income (loss) available to common shareholders and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of convertible preferred stock. The reconciliation of the numerator of the basic and diluted EPS calculations was as follows for the three March 31, 2018 2017: Three Months ended 201 8 201 7 Basic Numerator: Net loss $ (2,191,992 ) $ (1,356,187 ) Convertible preferred stock dividends (156,162 ) (200,625 ) Net loss available to common stockholders (basic and diluted) $ (2,348,154 ) $ (1,556,812 ) 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 due to the net losses for the three March 31, 2018 2017: Three Months ended 201 8 201 7 Preferred stock 4,506,259 5,416,667 Stock options 4,542 54,512 Warrants - 3,668 Total 4,510,801 5,474,847 The following table sets forth options and warrants which were excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares: Three Months Ended 201 8 201 7 Stock options 1,468,325 218,761 Warrants 1,398,969 1,212,163 Total 2,867,294 1,430,924 |
Note 10 - Stockholders' Equity
Note 10 - Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 10. STOCKHOLDERS’ EQUITY Preferred Stock Within the limits and restrictions provided in the Company’s Certificate of Incorporation, the Board of Directors has the authority, without further action by the shareholders, to issue up to 5,000,000 $.0001 one March 31, 2018, 100,000 1 62,596 105,000 1 44,580 Series A- 1 On October 22 29, 2015, 84,500 1 1 $100.00 $8,450,000. November 11, 2015, 5,500 1 $100.00 $550,000. 1 1 $3.60 9.99% 1 August 7, 2017 35% 61 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 not 1 1 $100.00 1 On September 22, 2017, 1 $540,000 150,000 $3.60. October 17, 2017, 1 27,404 1 761,222 $3.60 Overall balances and conversion of Series A- 1 Series A-1 Accrued Dividends Balance – January 1, 2017 90,000 $ 270,000 Accrual of dividends – Q1 2017 135,000 Accrual of dividends – Q2 2017 135,000 Accrual of dividends – Q3 2017 135,000 Conversion into common stock – September 2017 - (540,000 ) Conversion into common stock – October 2017 (27,404 ) - Accrual of dividends – Q4 2017 101,658 Balance – December 31, 2017 62,596 $ 236,658 Accrual of dividends – Q1 2018 93,894 Balance – March 31, 2018 62,596 $ 330,552 The Series A- 1 815 15, 815 40 15, 1 $3.60 December 31, 2017, ten 10 not Series B- 1 On November 11, 2015, 105,000 1 1 $100.00 $10,500,000. 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 not 1 1 $100.00 1 On March 23, 2018, 1 60,420 1 1,678,334 On March 23, 2018, 115,857 1 $417,084 1 $3.60. 1 19.99% 61 Overall balances and conversion of Series B- 1 Series B -1 Accrued Dividends Balance – January 1, 2017 105,000 $ 131,250 Accrual of dividends – Q1 2017 65,625 Accrual of dividends – Q2 2017 65,625 Accrual of dividends – Q3 2017 65,625 Accrual of dividends – Q4 2017 65,625 Balance – December 31, 2017 105,000 393,750 Conversion into common stock – March 2018 (60,420 ) (417,084 ) Accrual of dividends – Q1 2018 62,268 Balance – March 31, 2018 44,580 $ 38,934 The Series B- 1 815 15, 815 40 15, 1 $3.60 may ten 10 not Common Stock On March 23, 2018, 1 1,794,191 7,659 $15,011. March 28, 2018, 762 $1,501. Derivative Liabilities In connection with the issuances of equity instruments or debt, the Company may may may may July 2017, 2017 11, 260 480 815 2017 11, not no Securities Purchase Agreement dated November 13, 2014 Pursuant to a Securities Purchase Agreement, dated November 13, 2014, 664,584 996,877 $1,595,000. The warrants have a term of five $3.60 February 2015. $3.60 not As a result of the early adoption of ASU 2017 11, no no no Securities Purchase Agreement dated September 23, 2015 On September 23, 2015, 69,445 $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, no no no Issuances of Stock Options On March 23, 2018, 9,000 six three seven $1.96. On March 23, 2018, 212,918 three seven $1.96. The fair value of the options issued during the three March 31, 2018 $381,876 2.56%, 4.5, 0, 143%. |
Note 11 - Segment Information
Note 11 - Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 11. SEGMENT INFORMATION The Company has determined that it operates in one 52% 83% three March 31, 2018 2017, |
Note 12 - Fair Values of Financ
Note 12 - Fair Values of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 12. 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 13 - Major Customers and A
Note 13 - Major Customers and Accounts Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 13. MAJOR CUSTOMERS AND ACCOUNTS RECEIVABLES For the three March 31, 2018 2017, two 48% three 70% Three 53% March 31, 2018. 100% March 31, 2018 December 31, 2017. $1,000,000 57% December 31, 2017, one 55% |
Note 14 - Contingencies
Note 14 - Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | 14. CONTINGENCIES From time to time, we may March 31, 2018, no |
Note 15 - Subsequent Events
Note 15 - Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 15. SUBSEQUENT EVENTS On April 3, 2018, 1 39,088 1 1,085,778 On April 3, 2018, 91,820 1 $330,552 1 $3.60. On May 10, 2018, 2,035 On May 14, 2018, 648 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiary (collectively, the “Company” or “BIO-key”) and are stated in conformity with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The operating results for interim periods are not may In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all necessary adjustments, consisting only of those of a recurring nature, and disclosures to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented. The balance sheet at March 31, 2018 not 10 December 31, 2017, April 2, 2018. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In May 2014, No. 2014 09, 2014 09 606 January 1, 2018 3 In February 2016, 2016 02, 12 December 15, 2018, In July 2017, 2017 11, 260 480 815 2017 11, not no 480, not December 15, 2018, 2017 11, 2017 not Management does not not |
Reclassification, Policy [Policy Text Block] | Reclassification Reclassifications occurred to certain prior year amounts in order to conform to the current year classifications. The reclassifications have no |
Note 3 - Revenue From Contrac22
Note 3 - Revenue From Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | March 31, North America EMEA * Asia 2018 License fees $ 60,969 $ 41,750 $ - $ 102,719 Hardware 99,590 214,776 121,921 436,287 Support and Maintenance 177,916 8,713 13,970 200,599 Professional services 101,850 - - 101,850 Total Revenues 440,325 265,239 135,891 841,455 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | As reported - December 31, 2017 Adjustments As adjusted - January 1, 2018 Capitalized contract costs $ - $ 240,017 $ 240,017 Total assets $ 16,078,822 $ 240,017 $ 16,318,839 Accumulated deficit $ (67,076,492 ) $ 240,017 $ (66,836,475 ) Total Stockholders’ Equity $ 13,753,295 $ 240,017 $ 13,993,312 Total Liabilities and Stockholders’ Equity $ 16,078,822 $ 240,017 $ 16,318,839 As reported Pro-forma Increase (decrease) Consolidated balance sheet data: Capitalized contract costs $ 365,367 $ - $ 365,367 Consolidated statement of operations data: Selling, general and administrative expenses $ 1,461,854 $ 1,587,204 $ 125,350 Net loss $ (2,191,992 ) $ (2,317,342 ) $ (125,350 ) Net loss available to common stockholders $ (2,348,154 ) $ (2,473,504 ) $ (125,350 ) Basic & Diluted Loss per Common Share $ (0.30 ) $ (0.32 ) $ (0.02 ) Consolidated statement of cash flow data: Net loss $ (2,191,992 ) $ (2,317,342 ) $ (125,350 ) Change in capitalized contract costs $ (125,350 ) $ - $ 125,350 Net cash provided by operating activities $ 1,043,767 $ 1,043,767 $ - |
Note 4 - Accounts Receivable (T
Note 4 - Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | March 31, December 31, 201 8 201 7 Accounts receivable - current $ 318,961 $ 2,889,731 Accounts receivable - non current 1,740,000 1,760,000 2,058,961 4,649,731 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,000,000 ) (1,000,000 ) (1,013,785 ) (1,013,785 ) Accounts receivable, net of allowances for doubtful accounts $ 1,045,176 $ 3,635,946 |
Note 5 - Share Based Compensa24
Note 5 - Share Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended March 31, 201 8 201 7 Selling, general and administrative $ 471,146 $ 112,856 Research, development and engineering 78,787 48,233 $ 549,933 $ 161,089 |
Note 6 - Factoring (Tables)
Note 6 - Factoring (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | March 31, December 31, 201 8 201 7 Accounts receivable - current $ 318,961 $ 2,889,731 Accounts receivable - non current 1,740,000 1,760,000 2,058,961 4,649,731 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,000,000 ) (1,000,000 ) (1,013,785 ) (1,013,785 ) Accounts receivable, net of allowances for doubtful accounts $ 1,045,176 $ 3,635,946 |
Factoring Fees [Table Text Block] | Three Months ended March 31, 201 8 201 7 Factoring fees $ 91,523 $ 48,391 |
Factored Accounts Receivable [Member] | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | March 31, December 31, 201 8 201 7 Original invoice value $ 216,178 $ 423,349 Factored amount (162,133 ) (313,484 ) Balance due from factor $ 54,045 $ 109,865 |
Note 7 - Inventory (Tables)
Note 7 - Inventory (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, December 31, 201 8 201 7 Finished goods $ 435,191 $ 487,858 Fabricated assemblies 463,969 458,989 Total inventory $ 899,160 $ 946,847 |
Note 8 - Resalable Software L27
Note 8 - Resalable Software Licenses Rights (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Software License Rights [Table Text Block] | March 31, December 31, 2018 2017 Current software license rights $ 2,730,000 $ 2,640,000 Non-current software license rights 7,196,348 7,933,808 Total software license rights $ 9,926,348 $ 10,573,808 |
Note 9 - Earnings Per Share (28
Note 9 - Earnings Per Share ("EPS") (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months ended 201 8 201 7 Basic Numerator: Net loss $ (2,191,992 ) $ (1,356,187 ) Convertible preferred stock dividends (156,162 ) (200,625 ) Net loss available to common stockholders (basic and diluted) $ (2,348,154 ) $ (1,556,812 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months ended 201 8 201 7 Preferred stock 4,506,259 5,416,667 Stock options 4,542 54,512 Warrants - 3,668 Total 4,510,801 5,474,847 Three Months Ended 201 8 201 7 Stock options 1,468,325 218,761 Warrants 1,398,969 1,212,163 Total 2,867,294 1,430,924 |
Note 10 - Stockholders' Equity
Note 10 - Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Preferred Stock and Accrued Dividends [Table Text Block] | Series A-1 Accrued Dividends Balance – January 1, 2017 90,000 $ 270,000 Accrual of dividends – Q1 2017 135,000 Accrual of dividends – Q2 2017 135,000 Accrual of dividends – Q3 2017 135,000 Conversion into common stock – September 2017 - (540,000 ) Conversion into common stock – October 2017 (27,404 ) - Accrual of dividends – Q4 2017 101,658 Balance – December 31, 2017 62,596 $ 236,658 Accrual of dividends – Q1 2018 93,894 Balance – March 31, 2018 62,596 $ 330,552 Series B -1 Accrued Dividends Balance – January 1, 2017 105,000 $ 131,250 Accrual of dividends – Q1 2017 65,625 Accrual of dividends – Q2 2017 65,625 Accrual of dividends – Q3 2017 65,625 Accrual of dividends – Q4 2017 65,625 Balance – December 31, 2017 105,000 393,750 Conversion into common stock – March 2018 (60,420 ) (417,084 ) Accrual of dividends – Q1 2018 62,268 Balance – March 31, 2018 44,580 $ 38,934 |
Note 2 - Going Concern (Details
Note 2 - Going Concern (Details Textual) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Retained Earnings (Accumulated Deficit), Ending Balance | $ (69,028,467) | $ (66,836,475) | $ (67,076,492) | ||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 1,299,631 | $ 288,721 | $ 1,158,421 | $ 1,061,307 | |
Monthly Cash Requirement to Conduct Operations and Pay Dividend Obligations | $ 592,000 |
Note 3 - Revenue From Contrac31
Note 3 - Revenue From Contracts with Customers (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Capitalized Contract Cost, Amortization Period | 4 years | ||
Capitalized Contract Cost, Amortization | $ 18,668 | ||
Contract with Customer, Liability, Revenue Recognized | 135,000 | ||
Contract with Customer, Liability, Total | 374,439 | ||
Deferred Revenue | $ 507,866 | ||
Selling, General and Administrative Expenses [Member] | |||
Capitalized Contract Cost, Amortization | $ 18,700 |
Note 3 - Revenue From Contrac32
Note 3 - Revenue From Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Revenue | $ 841,455 | $ 1,418,335 | ||
North America [Member] | ||||
Revenue | 440,325 | |||
EMEA [Member] | ||||
Revenue | [1] | 265,239 | ||
Asia [Member] | ||||
Revenue | 135,891 | |||
License [Member] | ||||
Revenue | 102,719 | 496,568 | ||
License [Member] | North America [Member] | ||||
Revenue | 60,969 | |||
License [Member] | EMEA [Member] | ||||
Revenue | [1] | 41,750 | ||
License [Member] | Asia [Member] | ||||
Revenue | ||||
Hardware [Member] | ||||
Revenue | 436,287 | [1] | $ 601,180 | |
Hardware [Member] | North America [Member] | ||||
Revenue | [1] | 99,590 | ||
Hardware [Member] | EMEA [Member] | ||||
Revenue | [1] | 214,776 | ||
Hardware [Member] | Asia [Member] | ||||
Revenue | [1] | 121,921 | ||
Maintenance [Member] | ||||
Revenue | 200,599 | |||
Maintenance [Member] | North America [Member] | ||||
Revenue | 177,916 | |||
Maintenance [Member] | EMEA [Member] | ||||
Revenue | [1] | 8,713 | ||
Maintenance [Member] | Asia [Member] | ||||
Revenue | 13,970 | |||
Professional Services [Member] | ||||
Revenue | 101,850 | |||
Professional Services [Member] | North America [Member] | ||||
Revenue | 101,850 | |||
Professional Services [Member] | EMEA [Member] | ||||
Revenue | [1] | |||
Professional Services [Member] | Asia [Member] | ||||
Revenue | ||||
[1] | EMEA - Europe, Middle East, Africa |
Note 3 - Revenue From Contrac33
Note 3 - Revenue From Contracts with Customers - Adoption of ASC 606 (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Capitalized contract costs | $ 365,367 | $ 240,017 | ||
Total assets | 14,133,765 | 16,318,839 | 16,078,822 | |
Accumulated deficit | (69,028,467) | (66,836,475) | (67,076,492) | |
TOTAL STOCKHOLDERS’ EQUITY | 12,612,175 | 13,993,312 | 13,753,295 | |
Total Liabilities and Stockholders’ Equity | 14,133,765 | 16,318,839 | $ 16,078,822 | |
Selling, general and administrative expenses | 1,461,854 | $ 1,620,150 | ||
Net loss | (2,191,992) | (1,356,187) | ||
Net loss available to common stockholders | $ (2,348,154) | $ (1,556,812) | ||
Basic & Diluted Loss per Common Share (in dollars per share) | $ (0.30) | $ (0.26) | ||
Change in capitalized contract costs | $ 144,018 | |||
Net cash provided by operating activities | 1,043,767 | $ 116,953 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Capitalized contract costs | ||||
Selling, general and administrative expenses | 1,587,204 | |||
Net loss | (2,317,342) | |||
Net loss available to common stockholders | $ (2,473,504) | |||
Basic & Diluted Loss per Common Share (in dollars per share) | $ (0.32) | |||
Change in capitalized contract costs | ||||
Net cash provided by operating activities | 1,043,767 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Capitalized contract costs | 365,367 | |||
Selling, general and administrative expenses | 125,350 | |||
Net loss | (125,350) | |||
Net loss available to common stockholders | $ (125,350) | |||
Basic & Diluted Loss per Common Share (in dollars per share) | $ (0.02) | |||
Change in capitalized contract costs | $ 125,350 | |||
Net cash provided by operating activities | ||||
Accounting Standards Update 2014-09 [Member] | ||||
Capitalized contract costs | 240,017 | |||
Total assets | 240,017 | |||
Accumulated deficit | 240,017 | |||
TOTAL STOCKHOLDERS’ EQUITY | 240,017 | |||
Total Liabilities and Stockholders’ Equity | $ 240,017 |
Note 4 - Accounts Receivable (D
Note 4 - Accounts Receivable (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts Receivable, Noncurrent | $ 1,000,000 | $ 1,000,000 |
Percentage of Remaining Balance Owned Reserved | 57.00% |
Note 4 - Accounts Receivable -
Note 4 - Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts receivable - current | $ 318,961 | $ 2,889,731 |
Accounts receivable - non current | 1,740,000 | 1,760,000 |
2,058,961 | 4,649,731 | |
Allowance for doubtful accounts - current | (13,785) | (13,785) |
Allowance for doubtful accounts - non current | (1,000,000) | (1,000,000) |
(1,013,785) | (1,013,785) | |
Accounts receivable, net of allowances for doubtful accounts | $ 1,045,176 | $ 3,635,946 |
Note 5 - Share Based Compensa36
Note 5 - Share Based Compensation - Expenses for Continuing Operations (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based compensation expense | $ 549,933 | $ 161,089 |
Selling, General and Administrative Expenses [Member] | ||
Share-based compensation expense | 471,146 | 112,856 |
Research and Development Expense [Member] | ||
Share-based compensation expense | $ 78,787 | $ 48,233 |
Note 6 - Factoring (Details Tex
Note 6 - Factoring (Details Textual) | 1 Months Ended |
Dec. 31, 2011USD ($) | |
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 6 - Factoring - Due From F
Note 6 - Factoring - Due From Factor (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Original invoice value | $ 216,178 | $ 423,349 |
Factored amount | (162,133) | (313,484) |
Balance due from factor | $ 54,045 | $ 109,865 |
Note 6 - Factoring - Fees (Deta
Note 6 - Factoring - Fees (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Factoring fees | $ 91,523 | $ 48,391 |
Note 7 - Inventory - Components
Note 7 - Inventory - Components of Inventory (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Finished goods | $ 435,191 | $ 487,858 |
Fabricated assemblies | 463,969 | 458,989 |
Total inventory | $ 899,160 | $ 946,847 |
Note 8 - Resalable Software L41
Note 8 - Resalable Software Licenses Rights (Details Textual) - USD ($) | Dec. 31, 2015 | Nov. 11, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Software License Rights, Current | $ 2,730,000 | $ 2,730,000 | $ 2,730,000 | $ 2,640,000 | |||
Amortization of Intangible Assets, Total | 5,655 | $ 3,402 | |||||
Software License Rights | 9,926,348 | 9,926,348 | 9,926,348 | 10,573,808 | |||
Software License Rights, Noncurrent | $ 7,196,348 | 7,196,348 | 7,196,348 | $ 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, Total | $ 660,000 | 388,092 | 2,218,596 | ||||
Software License Rights | 9,781,404 | 9,781,404 | 9,781,404 | ||||
Software License Rights [Member] | |||||||
Amortization of Intangible Assets, Total | (12,540) | $ 6,696 | 35,056 | ||||
Payments to Acquire Software | $ 180,000 | ||||||
Software License Rights, Noncurrent | $ 144,944 | $ 144,944 | $ 144,944 |
Note 8 - Resalable Software L42
Note 8 - Resalable Software Licenses Rights - Summary of Software License Rights (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Resalable software license rights | $ 2,730,000 | $ 2,640,000 |
Resalable software license rights, net of current portion | 7,196,348 | 7,933,808 |
Total software license rights | $ 9,926,348 | $ 10,573,808 |
Note 9 - Earnings Per Share (43
Note 9 - Earnings Per Share ("EPS") - Reconciliation of Numerator of Basic and Diluted EPS Calculations (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net loss | $ (2,191,992) | $ (1,356,187) |
Convertible preferred stock dividends | (156,162) | (200,625) |
Net loss available to common stockholders | $ (2,348,154) | $ (1,556,812) |
Note 9 - Earnings Per Share (44
Note 9 - Earnings Per Share ("EPS") - Securities Excluded From the Diluted Per Share Calculation (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | ||
Antidilutive securities (in shares) | 4,510,801 | 5,474,847 |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Preferred Stock [Member] | ||
Antidilutive securities (in shares) | 4,506,259 | 5,416,667 |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Employee Stock Option [Member] | ||
Antidilutive securities (in shares) | 4,542 | 54,512 |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Warrant [Member] | ||
Antidilutive securities (in shares) | 3,668 | |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | ||
Antidilutive securities (in shares) | 2,867,294 | 1,430,924 |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Employee Stock Option [Member] | ||
Antidilutive securities (in shares) | 1,468,325 | 218,761 |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Warrant [Member] | ||
Antidilutive securities (in shares) | 1,398,969 | 1,212,163 |
Note 10 - Stockholders' Equit45
Note 10 - Stockholders' Equity (Details Textual) - USD ($) | Mar. 28, 2018 | Mar. 23, 2018 | Oct. 17, 2017 | Sep. 22, 2017 | Nov. 11, 2015 | Oct. 29, 2015 | Sep. 23, 2015 | Nov. 13, 2014 | Mar. 31, 2018 | Oct. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | ||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | ||||||||||||
Initial Conversion Price | $ 3.60 | |||||||||||||
Conversion of Dividends Payable, Amount Converted | $ 417,084 | $ 540,000 | $ 417,084 | |||||||||||
Conversion of Dividends Payable, Shares Issued | 115,857 | 150,000 | ||||||||||||
Shares Issued, Price Per Share | $ 3.60 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.60 | |||||||||||||
Preferred Stock, Conversion Price | $ 3.60 | |||||||||||||
Equity Facility, Aggregate Sales Limitation, Percentage of Total Outstanding Share | 19.99% | |||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,794,191 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Fair Value Amount | $ 381,876 | |||||||||||||
Employee Stock Option [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.56% | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years 182 days | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 143.00% | |||||||||||||
Promissory Note [Member] | ||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 69,445 | |||||||||||||
Private Investor SPA [Member] | ||||||||||||||
Stock Issued During Period, Shares, New Issues | 664,584 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.60 | |||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 996,877 | |||||||||||||
Proceeds from Issuance of Private Placement | $ 1,595,000 | |||||||||||||
Term Of Warrant | 5 years | |||||||||||||
Director [Member] | ||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 762 | 7,659 | ||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 1,501 | $ 15,011 | ||||||||||||
Six Non-Employee Members of the Board of Directors [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 9,000 | |||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.96 | |||||||||||||
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 | |||||||||||||
Certain Officers, Employees, and Contractors [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 212,918 | |||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.96 | |||||||||||||
Certain Officers, Employees, and Contractors [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 | |||||||||||||
Conversion of Series A-1 Shares into Common Stock [Member] | ||||||||||||||
Conversion of Stock, Shares Converted | 27,404 | |||||||||||||
Conversion of Stock, Shares Issued | 761,222 | |||||||||||||
Conversion of Series B-1 Shares into Common Stock [Member] | ||||||||||||||
Conversion of Stock, Shares Converted | 60,420 | |||||||||||||
Conversion of Stock, Shares Issued | 1,678,334 | |||||||||||||
Series A-1 Convertible Preferred Stock [Member] | ||||||||||||||
Preferred Stock, Shares Authorized | 100,000 | 100,000 | 100,000 | |||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||
Preferred Stock, Shares Outstanding, Ending Balance | 62,596 | 62,596 | 62,596 | |||||||||||
Stock Issued During Period, Shares, New Issues | 5,500 | 84,500 | ||||||||||||
Share Price | $ 100 | $ 100 | ||||||||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 550,000 | $ 8,450,000 | ||||||||||||
Initial Conversion Price | $ 3.60 | |||||||||||||
Conversion Cap | 35.00% | |||||||||||||
Preferred Stock, Dividend Rate, Percentage | 6.00% | |||||||||||||
Period Preceding the Dividend Payment Date | 10 days | |||||||||||||
Liquidation Value Per Share | $ 100 | |||||||||||||
Conversion of Dividends Payable, Amount Converted | $ 540,000 | |||||||||||||
Conversion of Stock, Shares Converted | 27,404 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.60 | |||||||||||||
Preferred Stock, Shares Issued, Total | 62,596 | 62,596 | 62,596 | |||||||||||
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 | 105,000 | |||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||
Preferred Stock, Shares Outstanding, Ending Balance | 44,580 | 44,580 | 105,000 | |||||||||||
Stock Issued During Period, Shares, New Issues | 105,000 | |||||||||||||
Share Price | $ 100 | |||||||||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 10,500,000 | |||||||||||||
Initial Conversion Price | $ 3.60 | |||||||||||||
Preferred Stock, Dividend Rate, Percentage | 2.50% | |||||||||||||
Period Preceding the Dividend Payment Date | 10 days | |||||||||||||
Liquidation Value Per Share | $ 100 | |||||||||||||
Conversion of Dividends Payable, Amount Converted | $ 417,084 | |||||||||||||
Conversion of Stock, Shares Converted | 60,420 | |||||||||||||
Preferred Stock, Shares Issued, Total | 44,580 | 44,580 | 105,000 | |||||||||||
Series B-1 Convertible Preferred Stock [Member] | Maximum [Member] | ||||||||||||||
Maximum Ownership as a Result of Conversion | 9.99% | |||||||||||||
September 2015 Warrants [Member] | ||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.60 | |||||||||||||
Term Of Warrant | 5 years |
Note 10 - Stockholders' Equit46
Note 10 - Stockholders' Equity - Balances and Conversion of Prefered Shares and Accrued Dividends (Details) - USD ($) | Mar. 23, 2018 | Sep. 22, 2017 | Mar. 31, 2018 | Oct. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 |
Balance | $ 200,625 | |||||||||
Conversion into common stock | $ (417,084) | $ (540,000) | $ (417,084) | |||||||
Balance | $ 156,162 | $ 156,162 | $ 200,625 | |||||||
Series A-1 Convertible Preferred Stock [Member] | ||||||||||
Balance (in shares) | 62,596 | 90,000 | ||||||||
Conversion into common stock (in shares) | (27,404) | |||||||||
Balance (in shares) | 62,596 | 62,596 | 62,596 | |||||||
Balance | $ 236,658 | $ 270,000 | ||||||||
Accrual of dividends | 93,894 | $ 101,658 | $ 135,000 | 135,000 | $ 135,000 | |||||
Conversion into common stock | $ (540,000) | |||||||||
Balance | $ 330,552 | $ 330,552 | $ 236,658 | |||||||
Series B-1 Convertible Preferred Stock [Member] | ||||||||||
Balance (in shares) | 105,000 | 105,000 | ||||||||
Conversion into common stock (in shares) | (60,420) | |||||||||
Balance (in shares) | 44,580 | 44,580 | 105,000 | |||||||
Balance | $ 393,750 | $ 131,250 | ||||||||
Accrual of dividends | 62,268 | $ 65,625 | $ 65,625 | $ 65,625 | $ 65,625 | |||||
Conversion into common stock | $ (417,084) | |||||||||
Balance | $ 38,934 | $ 38,934 | $ 393,750 |
Note 11 - Segment Information (
Note 11 - Segment Information (Details Textual) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Number of Reportable Segments | 1 | |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | North America [Member] | ||
Concentration Risk, Percentage | 52.00% | 83.00% |
Note 13 - Major Customers and48
Note 13 - Major Customers and Accounts Receivable (Details Textual) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($) | Mar. 31, 2017 | Dec. 31, 2017USD ($) | |
Allowance for Doubtful Accounts Receivable, Noncurrent | $ 1,000,000 | $ 1,000,000 | |
Percentage of Remaining Balance Owned Reserved | 57.00% | ||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk, Number of Major Customers | 2 | 3 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Two Customers [Member] | |||
Concentration Risk, Percentage | 48.00% | ||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Three Customers Member | |||
Concentration Risk, Percentage | 70.00% | ||
Customer Concentration Risk [Member] | Current Accounts Receivable [Member] | |||
Concentration Risk, Number of Major Customers | 3 | 1 | |
Customer Concentration Risk [Member] | Current Accounts Receivable [Member] | Three Customers Member | |||
Concentration Risk, Percentage | 53.00% | ||
Customer Concentration Risk [Member] | Current Accounts Receivable [Member] | One Customer [Member] | |||
Concentration Risk, Percentage | 55.00% | ||
Customer Concentration Risk [Member] | Non-current Accounts Receivable [Member] | |||
Concentration Risk, Number of Major Customers | 1 | 1 | |
Customer Concentration Risk [Member] | Non-current Accounts Receivable [Member] | One Customer [Member] | |||
Concentration Risk, Number of Major Customers | 100 | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
Note 15 - Subsequent Events (De
Note 15 - Subsequent Events (Details Textual) - USD ($) | May 14, 2018 | May 10, 2018 | Apr. 03, 2018 | Mar. 23, 2018 | Oct. 17, 2017 | Sep. 22, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Conversion of Dividends Payable, Shares Issued | 115,857 | 150,000 | ||||||
Conversion of Dividends Payable, Amount Converted | $ 417,084 | $ 540,000 | $ 417,084 | |||||
Shares Issued, Price Per Share | $ 3.60 | |||||||
Subsequent Event [Member] | ||||||||
Conversion of Dividends Payable, Shares Issued | 91,820 | |||||||
Conversion of Dividends Payable, Amount Converted | $ 330,552 | |||||||
Shares Issued, Price Per Share | $ 3.60 | |||||||
Stock Issued During Period, Shares, Issued for Services | 648 | 2,035 | ||||||
Conversion of Series A-1 Shares into Common Stock [Member] | ||||||||
Conversion of Stock, Shares Converted | 27,404 | |||||||
Conversion of Stock, Shares Issued | 761,222 | |||||||
Conversion of Series A-1 Shares into Common Stock [Member] | Subsequent Event [Member] | ||||||||
Conversion of Stock, Shares Converted | 39,088 | |||||||
Conversion of Stock, Shares Issued | 1,085,778 |