Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 24, 2016 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | hopTo Inc. | ||
Entity Central Index Key | 1,021,435 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 10,998,045 | ||
Entity Common Stock, Shares Outstanding | 9,861,078 | ||
Trading Symbol | HPTO | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash | $ 1,777,300 | $ 1,557,100 |
Accounts receivable, net of allowance for doubtful accounts of $17,300 and $32,600, respectively | 434,900 | 2,211,300 |
Prepaid expenses and other current assets | 139,200 | 98,100 |
Total Current Assets | 2,351,400 | 3,866,500 |
Capitalized software development costs, net | 20,800 | 408,700 |
Property and equipment, net | 252,500 | 362,500 |
Other assets | 109,000 | 139,700 |
Total Assets | 2,733,700 | 4,777,400 |
Current Liabilities: | ||
Accounts payable | 385,200 | 204,600 |
Accrued expenses | 69,600 | 116,200 |
Accrued wages | 557,300 | 665,700 |
Severance liability | 5,900 | 0 |
Deferred rent | 21,000 | 44,500 |
Capital lease | 8,400 | 7,700 |
Deferred revenue | 2,467,000 | 2,859,300 |
Total Current Liabilities | 3,514,400 | 3,898,000 |
Long Term Liabilities: | ||
Warrants liability | 31,600 | 647,300 |
Deferred revenue | 1,465,800 | $ 1,652,600 |
Deposit liability | 81,400 | |
Capital lease | 6,800 | $ 15,200 |
Deferred rent | 26,700 | 158,200 |
Total Liabilities | $ 5,126,700 | $ 6,371,300 |
Shareholders’ Equity (Deficit): | ||
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, $0.0001 par value, 195,000,000 shares authorized, 9,731,233 and 7,502,815 shares issued and outstanding, respectively | $ 14,600 | $ 11,200 |
Additional paid-in capital | 78,189,300 | 74,600,700 |
Accumulated deficit | (80,596,900) | (76,205,800) |
Total Shareholders’ Deficit | (2,393,000) | (1,593,900) |
Total Liabilities and Shareholders’ Deficit | $ 2,733,700 | $ 4,777,400 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 17,300 | $ 32,600 |
Preferred stock par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 195,000,000 | 195,000,000 |
Common stock, shares issued | 9,731,233 | 7,502,815 |
Common stock, shares outstanding | 9,731,233 | 7,502,815 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue | ||
Software licenses | $ 2,330,000 | $ 2,725,100 |
Software service fees | 2,605,900 | 2,708,300 |
Other | 45,100 | 120,000 |
Total Revenue | 4,981,000 | 5,553,400 |
Cost of revenue | ||
Software service costs | 169,500 | 203,200 |
Software product costs | 257,500 | $ 250,200 |
Write-down of capitalized software development costs | 182,400 | |
Total Cost of Revenue | 609,400 | $ 453,400 |
Gross Profit | 4,371,600 | 5,100,000 |
Operating Expenses | ||
Selling and marketing | 1,588,200 | 2,069,700 |
General and administrative | 3,136,600 | 3,333,800 |
Research and development | 4,224,000 | 4,911,400 |
Total Operating Expenses | 8,948,800 | 10,314,900 |
Loss from Operations | (4,577,200) | (5,214,900) |
Other Income (Expense) | ||
Change in fair value of warrants liability | 190,300 | 1,624,300 |
Interest and other income | 1,400 | 1,100 |
Interest and other expense | (1,900) | (1,300) |
Total other income (expense) | 189,800 | 1,624,100 |
Loss from operations before provision for income tax | (4,387,400) | (3,590,800) |
Provision for income tax | 3,700 | 3,100 |
Net loss | $ (4,391,100) | $ (3,593,900) |
Loss per share – basic and diluted | $ (0.52) | $ (0.48) |
Weighted Average Common Shares Outstanding – Basic and Diluted | 8,437,390 | 7,440,173 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity (Deficit) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Beginning balance at Dec. 31, 2013 | $ 9,800 | $ 71,697,300 | $ (72,611,900) | $ (1,593,900) | |
Beginning balance, shares at Dec. 31, 2013 | 6,567,375 | ||||
Private placement of stock and warrants | $ 1,200 | ||||
Private placement of stock and warrants, shares | 753,333 | ||||
Employee stock option issuances | |||||
Employee stock option issuances, shares | 17,121 | ||||
Exercise of warrants | $ 100 | ||||
Exercise of warrants, shares | 66,667 | 66,667 | |||
Vesting of restricted stock awards | $ 100 | ||||
Vesting of restricted stock awards, shares | 98,319 | ||||
Stock-based compensation expense | $ 593,000 | ||||
Company payment of employee taxes for stock-based compensation | (6,400) | ||||
Proceeds from exercise of employee stock options | 47,800 | ||||
Proceeds from exercise of warrants | 259,800 | ||||
Proceeds from private placement of common stock and warrants, net of par value of shares issued | 3,388,800 | ||||
Cost of private placement of common stock and warrants | (20,000) | ||||
Allocation of proceeds from common stock and warrants to warrants liability | (1,356,000) | ||||
Accretion of compensation expense, net of forfeitures - consultant warrants | $ (3,600) | ||||
Reclassification of warrants liability to equity (2014 PIPE) | |||||
Other Rounding | $ (100) | ||||
Net loss | $ (3,593,900) | $ (3,593,900) | |||
Ending balance at Dec. 31, 2014 | $ 11,200 | $ 74,600,700 | $ (76,205,800) | $ (1,593,900) | |
Ending balance, shares at Dec. 31, 2014 | 7,502,814 | ||||
Private placement of stock and warrants | $ 3,200 | ||||
Private placement of stock and warrants, shares | 2,105,919 | ||||
Employee stock option issuances | |||||
Employee stock option issuances, shares | 6,000 | ||||
Exercise of warrants | |||||
Exercise of warrants, shares | |||||
Vesting of restricted stock awards | $ 200 | ||||
Vesting of restricted stock awards, shares | 116,500 | ||||
Stock-based compensation expense | $ 757,500 | ||||
Company payment of employee taxes for stock-based compensation | (11,900) | ||||
Proceeds from exercise of employee stock options | $ 4,900 | ||||
Proceeds from exercise of warrants | $ 2,014,000 | ||||
Proceeds from private placement of common stock and warrants, net of par value of shares issued | $ 2,547,300 | ||||
Cost of private placement of common stock and warrants | $ (116,400) | ||||
Allocation of proceeds from common stock and warrants to warrants liability | |||||
Accretion of compensation expense, net of forfeitures - consultant warrants | |||||
Reclassification of warrants liability to equity (2014 PIPE) | $ 407,300 | ||||
Other Rounding | (100) | ||||
Net loss | $ (4,391,100) | $ (4,391,100) | |||
Ending balance at Dec. 31, 2015 | $ 14,600 | $ 78,189,300 | $ (80,596,900) | $ (2,393,000) | |
Ending balance, shares at Dec. 31, 2015 | 9,731,233 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows Provided By (Used In) Operating Activities: | ||
Net loss | $ (4,391,100) | $ (3,593,900) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 334,800 | $ 385,000 |
Write-down of capitalized software development costs | 182,400 | |
Stock based compensation expense | 757,500 | $ 593,000 |
Company payments of employee taxes for stock-based compensation | (11,900) | (6,400) |
Revenue deferred to future periods | 3,114,200 | 5,421,800 |
Recognition of deferred revenue | (3,693,300) | (4,159,000) |
Change in allowance for doubtful accounts | (15,300) | (9,400) |
Change in fair value of derivative instruments - warrants | (190,300) | (1,624,300) |
Accretion of warrants liability for consulting services | $ (18,100) | (64,200) |
Accretion of equity warrants for consulting services | $ (3,600) | |
Interest accrued for capital lease | $ 1,700 | |
Changes in severance liability | 5,900 | $ (62,900) |
Changes in deferred rent | (155,000) | (19,700) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,791,700 | (1,390,200) |
Prepaid expenses and other current assets | (300) | (46,600) |
Other long term assets | (10,000) | 200 |
Accounts payable | 150,600 | (101,000) |
Accrued expenses | (46,600) | 78,800 |
Accrued wages | (108,400) | $ 103,600 |
Deposit Liability | 81,400 | |
Net Cash Used In Operating Activities | (2,220,100) | $ (4,498,800) |
Cash Flows Used In Investing Activities: | ||
Capitalized software development costs | (12,000) | |
Capital expenditures | (7,300) | $ (50,600) |
Net Cash Used In Investing Activities | (19,300) | (50,600) |
Cash Flows Provided By (Used In) Financing Activities: | ||
Proceeds from exercise of employee stock options | $ 4,900 | 47,800 |
Proceeds from exercise of warrants | 260,000 | |
Proceeds from private placement of common stock and warrants | $ 2,550,500 | 3,390,000 |
Cost associated with private placement of common stock and warrants | (86,400) | (20,000) |
Payments for capital lease | (9,400) | (2,000) |
Net Cash Provided By Financing Activities | 2,459,600 | 3,675,800 |
Net Decrease in Cash | 220,200 | (873,600) |
Cash, beginning of year | 1,557,100 | 2,430,700 |
Cash, end of year | $ 1,777,300 | $ 1,557,100 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The Company hopTo Inc., and its subsidiaries (the Company) is a developer of software productivity products for mobile devices such as tablets and smartphones, and application publishing software solutions. Its newest product line, which is called hopTo, was originally marketed to consumers and is now also marketed to small and medium sized businesses and enterprise level customers under the name hopTo Work. hopTo provides mobile end-users with a productivity workspace for their mobile devices that allows users to manage, share, view, and edit their documents, regardless of where they are stored. The Company launched the first public release of hopTo through Apples App Store on April 15, 2013. This release was targeted at Apples tablet devices, the iPad and the iPad Mini. The Company also launched the first commercial version of hopTo through Apples App Store on November 14, 2013. On November 10, 2014, we launched the first version of hopTo Work, a version of the hopTo workspace made available to businesses for a fee. hopTo Work expands upon the core capabilities of hopTo by providing mobile access to applications that businesses rely on for their daily operations. Future releases will be targeted at other devices such as Apples iPhone, as well as competing devices such as those based on Googles Android platform. In addition to hopTo, the Company also sells a family of products under the brand name GO-Global, which is a software application publishing business and is the Companys sole revenue source at this time. GO-Global is an application access solution for use and/or resale by independent software vendors (ISVs), corporate enterprises, governmental and educational institutions, and others, who wish to take advantage of cross-platform remote access and Web-enabled access to their existing software applications, as well as those who are deploying secure, private cloud environments. Over the years, the Company has also made significant investments in intellectual property (IP). It has filed many patents designed to protect the new technologies embedded in hopTo. The Company plans to continue to aggressively invest in the creation and protection of new IP as it continues to develop hopTo, hopTo Work, and other products. The Companys operations have historically been conducted and reported in two segments, GO-Global and hopTo, each representing a specific product line. On January 27, 2016, we filed an amendment of our Amended and Restated Certificate of Incorporation, as amended, to effect a 1-for-15 reverse stock split of our common stock (the Reverse Stock Split). The Reverse Stock Split became effective in the stock market upon commencement of trading on January 28, 2016. As a result of the Reverse Stock Split, every fifteen shares of our pre-Reverse Stock Split common stock were combined and reclassified into one share of our common stock. No fractional shares were issued in connection with the Reverse Stock Split, and cash paid to stockholders for potential fractional shares was insignificant. The number of shares of common stock subject to outstanding options, restricted stock units, warrants and convertible securities were also reduced by a factor of fifteen as of January 27, 2016. All historical share and per share amounts reflected throughout this report have been adjusted to reflect the Reverse Stock Split. The authorized number of shares and the par value per share of our common stock were not affected by the Reverse Stock Split. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation and Use of Estimates Cash Equivalents Property and Equipment Shipping and Handling Software Development Costs Costs of Software to be Sold, Leased or Marketed, Revenue Recognition Software license revenues are recognized when: ● Persuasive evidence of an arrangement exists (i.e., when the Company signs a non-cancelable license agreement wherein the customer acknowledges an unconditional obligation to pay, or upon receipt of the customers purchase order) and ● Delivery has occurred or services have been rendered and there are no uncertainties surrounding product acceptance (i.e., when title and risk of loss have been transferred to the customer, which generally occurs when the media containing the licensed program(s) is provided to a common carrier or, in the case of electronic delivery, when the customer is given access to the licensed programs), and ● The price to the customer is fixed or determinable, as typically evidenced in a signed non-cancelable contract, or a customers purchase order, and ● Collectability is probable. If collectability is not considered probable, revenue is recognized when the fee is collected. Revenue recognized on software arrangements involving multiple deliverables is allocated to each deliverable based on vendor-specific objective evidence (VSOE) or third party evidence of the fair values of each deliverable; such deliverables include licenses for software products, maintenance, private labeling fees, or customer training. The Company limits its assessment of VSOE for each deliverable to either the price charged when the same deliverable is sold separately or the price established by management having the relevant authority to do so, for a deliverable not yet sold separately. If sufficient VSOE of fair value does not exist, so as to permit the allocation of revenue to the various elements of the arrangement, all revenue from the arrangement is deferred until such evidence exists or until all elements are delivered. If VSOE of the fair value does not exist and the only undelivered element is maintenance, then we recognize revenue on a ratable basis. If VSOE of the fair value of all undelivered elements exists but evidence does not exist for one or more delivered elements, then revenue is recognized using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. Certain resellers (stocking resellers) purchase product licenses that they hold in inventory until they are resold to the ultimate end-user (an inventory stocking order). At the time that a stocking reseller places an inventory stocking order, no product licenses are shipped by the Company to the stocking reseller rather, the stocking resellers inventory is credited with the number of licenses purchased and the stocking reseller can resell (issue) any number of licenses from their inventory at any time. Upon receipt of an order to issue one or more licenses from a stocking resellers inventory (a draw down order), the Company will ship the licenses(s) in accordance with the draw down orders instructions. The Company defers recognition of revenue from inventory stocking orders until the underlying licenses are sold and shipped to the end user, as evidenced by the receipt and fulfillment of the stocking resellers draw down order, assuming all other revenue recognition criteria have been met. There are no rights of return granted to purchasers of the Companys software products. Revenue is recognized from maintenance contracts ratably over the related contract period, which generally ranges from one to five years. All of the Companys software licenses are denominated in U.S. dollars. Deferred Rent Incentives received upon entering into the lease agreement are recognized on a straight-line basis as a reduction to rent over the term of the lease. The unamortized portion of these incentives are recorded as a part of deferred rent in current or long-term liabilities, as appropriate. Post-employment Benefits (Severance Liability) Allowance for Doubtful Accounts Beginning Balance Charge Offs Recoveries Provision Ending Balance 2015 $ 32,600 $ $ $ (15,300 ) $ 17,300 2014 $ 42,000 $ $ $ (9,400 ) $ 32,600 Income Taxes Income Taxes, The Company and one or more of its subsidiaries are subject to United States federal income taxes, as well as income taxes of multiple state and foreign jurisdictions. The Company and its subsidiaries are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years prior to 2011. There are no tax examinations currently underway for any of the Companys or its subsidiaries tax returns for years subsequent to 2010. The Companys policy for deducting interest and penalties is to treat interest as interest expense and penalties as taxes. The Company had not accrued any amount for the payment of interest or penalties related to any uncertain tax positions at either December 31, 2015 or 2014, as its review of such positions indicated that such potential positions were minimal. Under FASB ASC 740-10-05, Income Taxes, Fair Value of Financial Instruments The fair value of the Companys warrants are determined in accordance with FASB ASC 820, Fair Value Measurement, ● Level 1: Defined as observable inputs, such as quoted (unadjusted) prices in active markets for identical assets or liabilities. ● Level 2: Defined as observable inputs other than quoted prices included in Level 1. This includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3: Defined as unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. As of December 31, 2015 and 2014, all of the Companys $31,600 and $647,300 Warrants Liability reported at fair value, respectively, were categorized as Level 3 inputs (see Note 8). Derivative Financial Instruments Long-Lived Assets Loss Contingencies Stock-Based Compensation Compensation Stock Compensation. Valuation and Expense Information Under FASB ASC 718-10 The Company recorded stock-based compensation expense of $757,500 and $593,000 in the years ended December 31, 2015 and 2014, respectively. No expense was capitalized related to software development. As required by FASB ASC 718-10, the Company estimates forfeitures of employee stock-based awards and recognizes compensation cost only for those awards expected to vest. Forfeiture rates are estimated based on an analysis of historical experience and are adjusted to actual forfeiture experience as needed. During 2015, we awarded 15,000 shares of restricted common stock to employees. The valuation of the restricted common stock awards was based on the closing fair market value of our common stock on the grant date. For these awards, such fair market value ranged from $1.95 to $2.40 per share. During 2015, we granted 57,911 options to purchase common stock to our Chief Financial Officer at an exercisable price of $1.80 per share. This option grant was offered as an exchange for forfeiting 44,445 of unreleased stock award that was originally awarded in May 2014. For all options granted during 2015 and 2014, the Company set the exercise price equal to the closing fair market value of the Companys common stock as of the date of grant. The following table illustrates the non-cash stock-based compensation expense recorded during the years ended December 31, 2015 and 2014 by income statement classification: 2015 2014 Cost of revenue $ 9,000 $ 6,500 Selling and marketing expense 148,700 73,000 General and administrative expense 499,500 437,800 Research and development expense 100,300 75,700 $ 757,500 $ 593,000 The Company estimated the fair value of each option grant made during the years ended December 31, 2015 and 2014 on the date of grant using a binomial model, with the assumptions set forth in the following table: 2015 2014 Estimated volatility 103% 96% - 126% Annualized forfeiture rate 0% 0% - 6.0% Expected option term (years) 10.00 0.03 - 10.00 Estimated exercise factor 15.0 1.5 - 15.0 Approximate risk-free interest rate 0.74% 0.03% - 1.06% Expected dividend yield The estimated annualized forfeiture rate was based on an analysis of historical data and considered the impact of events such as work force reductions we carried out in previous years. The expected term of our stock-based awards was based on historical award holder exercise patterns and considered the market performance of our common stock and other items. The estimated exercise factor was based on an analysis of historical data; historical exercise patterns; and a comparison of historical and current share prices. The approximate risk free interest rate was based on the implied yield available on U.S. Treasury issues with remaining terms equivalent to our expected term on our stock-based awards. The Company used the average historical volatility of its daily closing price for a period of time equal in length to the expected option term for the option being issued. The period of time over which historical volatility was measured ended on the last day of the quarterly reporting period during which the stock-based award was made. The Company does not anticipate paying dividends on its common stock for the foreseeable future. Earnings Per Share of Common Stock Earnings Per Share, Comprehensive Loss Reporting Comprehensive Income, Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) In November, 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In August 2015, FASB issued ASU No. 2015-14 Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date In April 2015, FASB issued ASU No. 2015-05 IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Customers Accounting for Fees Paid in a Cloud Computing Arrangement In August 2014, FASB issued Accounting Standards Update (ASU) No. 2014-15 Preparation of Financial Statements - Going Concern (Subtopic 205-40). In June 2014, FASB issued ASU No. 2014-12 Compensation Stock Compensation (Topic 718) In May 2014, FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) 1. Removes inconsistencies and weaknesses in revenue requirements. 2. Provides a more robust framework for addressing revenue issues. 3. Improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. 4. Provides more useful information to users of financial statements through improved disclosure requirements. 5. Simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within such annual period. Early adoption is not permitted. We are currently evaluating this ASU in order to determine whether or not its adoption will have a material impact on our results of operations, cash flows or financial position. In April 2014, FASB issued ASU No. 2014-08 Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) Presentation of Financial Statements Discontinued Operations, |
Capitalized Software Developmen
Capitalized Software Development Costs | 12 Months Ended |
Dec. 31, 2015 | |
Research and Development [Abstract] | |
Capitalized Software Development Costs | 3. Capitalized Software Development Costs Capitalized software development costs as of December 31, 2015 and 2014 consisted of the following: 2015 2014 Software development costs $ 518,800 $ 1,135,900 Accumulated amortization (498,000 ) (727,200 ) $ 20,800 $ 408,700 During 2015 and 2014, we capitalized $12,000 and $16,500, respectively, of software development costs associated with hopTo. Such costs were the cost of licenses to third party software used by hopTo. Amortization of capitalized software development costs is a component of costs of revenue. Capitalized software development costs amortization aggregated $217,500 and $227,200 during the years ended December 31, 2015 and 2014, respectively. During 2015, we determined that an impairment of $182,400 existed with certain capitalized software development costs associated with our hopTo consumer product and recognized that cost as part of cost of revenue. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment as of December 31, 2015 and 2015 consisted of the following: 2015 2014 Equipment $ 313,700 $ 306,400 Furniture & fixture 233,900 233,900 Leasehold improvements 167,600 167,600 715,200 707,900 Less: accumulated depreciation and amortization 462,700 345,400 $ 252,500 $ 362,500 Aggregate property and equipment depreciation expense for the years ended December 31, 2015 and 2014 was $117,300 and $157,800, respectively. During 2015, we capitalized $7,300 cost of equipment. During 2015, we did not retire any assets. During 2014, we capitalized the following costs: equipment; $35,700, furniture; $14,900, and leasehold improvements; $167,600. During 2014, we retired the following asset costs related to assets that were no longer in service as of September 30, 2014: equipment; $972,900, furniture; $213,400, and leasehold improvements; $147,500. All of the assets retired were either fully depreciated or amortized at the time of their respective retirement. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 5. Accrued Expenses Accrued expenses as of December 31, 2015 and 2014 consisted of the following: 2015 2014 Consulting services $ 40,200 $ 77,300 Franchise tax 3,200 3,200 Software and subscription fees 4,900 15,900 Other 21,300 19,800 $ 69,600 $ 116,200 |
Severance Liability
Severance Liability | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Severance Liability | 6. Severance Liability In August of 2015 we agreed to provide a terminated employee a lump sum payment $15,000 and six months of medical coverage payments which will end March 2, 2016. As of December 31, 2015 $5,900 remained outstanding associated with this severance liability. In July of 2014 we agreed to provide a terminated employee a lump sum salary payment and 4 months of medical coverage payments which ended December 31, 2014. As of December 31, 2014 $0 remained outstanding associated with these severance liabilities. The following table summarizes the salary continuation and medical coverage payments during the period ended December 31, 2015. Compensation Medical Coverage Total Balance at December 31, 2014 $ $ Separation agreement entered into in 2015 17,700 17,700 Accrued interest Payments (11,800 ) (11,800 ) Balance at December 31, 2015 $ $ 5,900 $ 5,900 Compensation Medical Coverage Total Balance at December 31, 2013 $ 62,900 $ 62,900 Separation agreement entered into in 2015 37,500 10,600 48,100 Accrued interest 1,700 1,700 Payments (102,100 ) (10,600 ) (112,700 ) Balance at December 31, 2014 $ $ |
Deferred Rent
Deferred Rent | 12 Months Ended |
Dec. 31, 2015 | |
Revenue | |
Deferred Rent | 7. Deferred Rent We amended our office lease during 2013. On February 1, 2014, we moved our corporate offices to a different building within the same office complex owned and operated by our landlord on South Bascom Avenue in Campbell, California, where our corporate offices had been located prior to February 1, 2014. Since the new space is controlled by the same landlord, we considered the lease amendment to be a modification to our preexisting lease; accordingly, we are amortizing the remaining balance in deferred rent immediately prior to February 1, 2014 over the remaining term of the modified amended lease. Additionally, our landlord provided us with $106,600 of leasehold improvements on the new space that we are amortizing over the remaining term of the amended lease. All of the prior leasehold improvements that had not been previously amortized were accelerated and recognized in their entirety from the time of the amendment through January 2014, prior to the move. On August 11, 2015, we entered into a sublease agreement to sublease the entirety of the South Bascom office space to a third party. The term of the sublease extends through the end of our office lease term for that space and the monthly rent payments due to hopTo fully offset the monthly rent payments due to the landlord under hopTos lease for that space. On August 24, 2015, we entered into a new office lease for our corporate headquarters in Campbell, California which became effective on October 1, 2015, is better suited to our California operations and results in significant monthly savings. We were required to pre-pay a portion of the lease commitment in the form of a deposit which was recorded as deferred rent during 2015. As of December 31, 2015 deferred rent was: Component Current Liabilities Long-Term Liabilities Total Deferred rent expense $ (18,700 ) $ (46,100 ) $ (64,800 ) Deferred rent benefit 39,700 72,800 112,500 $ 21,000 $ 26,700 $ 47,700 As of December 31, 2014 deferred rent was: Component Current Liabilities Long-Term Liabilities Total Deferred rent expense $ 4,800 $ 45,700 $ 50,500 Deferred rent benefit 39,700 112,500 152,200 $ 44,500 $ 158,200 $ 202,700 Deferred rent expense represents the remaining balance of the aggregate free rent we received from our landlord and escalations that are being recognized over the life of the lease as a component of rent expense. Deferred rent benefit relates to the unamortized portion of the leasehold improvements provided to us by our landlord (i.e., incentives) that we are recognizing on a straight-line basis as a reduction to rent expense over the term of the lease. |
Liability Attributable to Warra
Liability Attributable to Warrants | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Liability Attributable to Warrants | 8. Liability Attributable to Warrants On January 7, 2014, we entered into a securities purchase agreement (the SPA) with a limited number of institutional investors, pursuant to which we issued and sold for cash an aggregate 753,333 shares of our common stock at a purchase price of $4.50 per share (See Note 9) (the 2014 Transaction). We also issued warrants to the investors for no additional consideration to purchase an aggregate 376,667 shares of our common stock at an exercise price of $6.00 per share from January 7, 2014 through January 7, 2019. Under certain conditions of the SPA that were to expire no later than January 7, 2015, we could have been required to issue a variable number of additional warrants to the investors at a below-market value exercise price. Accordingly, we have concluded that the warrants issued to the investors are not indexed to our common stock; therefore, the fair value of these warrants has been recorded as a liability. Since these conditions did not occur as of January 7, 2015, we have reclassified the warrant from liability to equity. Using a binomial pricing model, we calculated the fair value of the warrants issued to the investors on January 7, 2015 to be $407,300. We used the following assumptions in the binomial pricing model to derive the fair value: estimated volatility 113%; annualized forfeiture rate 0%; expected term 4.1 years; estimated exercise factor 3.5; risk free interest rate 1.20; and dividends 0. Changes in fair value of the warrants liability are recognized in other income, except for changes in the fair value of the warrants issued to ipCapital which are recognized as a component of general and administrative expense in the consolidated statement of operations. We used the exercise price of the warrants, as well as the fair market value of our common stock, to determine the fair value of our warrants. The exercise price for warrants issued in conjunction with a 2011 transaction, including those issued to the placement agent, was either $3.00 or $3.90 per share, and was $3.90 per share for the warrants issued to ipCapital. The warrants issued to the placement agent included anti-dilution provisions for repricing of the warrants in the event that future issuances of stock by hopTo met certain conditions. The 2015 Transaction (Note 9) met those conditions and resulted in the placement agent warrants being repriced from $3.00 and $3.90 to $2.55 and $3.30, respectively. We used a binomial pricing model to determine the fair value of our warrants liability as of December 31, 2015 and 2014, the balance sheet dates, respectively, using the following assumptions: For the Year Ended December 31, 2015 Warrants Estimated Volatility Annualized Forfeiture Rate Expected Option Term (Years) Estimated Exercise Factor Risk-Free Interest Rate Dividends 2011 Private Placement 104% - 132% 1.61 0.68 3.5 0.26% - 0.47% ipCapital 105% - 127% 1.79 0.79 4.0 0.26% - 0.54% For the Year Ended December 31, 2014 Warrants Estimated Volatility Annualized Forfeiture Rate Expected Option Term (Years) Estimated Exercise Factor Risk-Free Interest Rate Dividends 2011 Private Placement 91% - 104% 2.67 1.69 3.5 0.41% - 0.56% 2014 Private Placement 114% - 157% 5.00 - 4.08 3.5 1.35% - 1.69% ipCapital 92% - 127% 3.79 1.81 4 0.43% - 0.61% The following table is a reconciliation of the warrants liability measured at fair value using significant unobservable inputs (Level 3) for the year ended December 31, 2015: Warrants liability December 31, 2014 fair value $ 647,300 Change in fair value of warrant liability recorded in other income (190,300 ) Change in fair value of warrant liability recorded in general and administrative expense (18,100 ) Reclassification of 2014 PIPE Warrant to Equity (407,300 ) Warrants liability December 31, 2015 fair value $ 31,600 The following tables reconcile the number of warrants outstanding for the periods indicated: For the Year Ended December 31, 2015 Beginning Outstanding Issued Exercised Cancelled / Forfeited Ending Outstanding 2011 Transaction 686,833 686,833 2014 Transaction 376,667 376,667 ipCapital 26,667 26,667 Exercise Agreement 300,000 300,000 Consultant Warrant 11,285 11,285 Offer to Exercise 10,167 10,167 1,411,619 1,411,619 During the year ended December 31, 2015, our warrants liability was reduced by $407,300 as a result of the above mentioned reclassification of 2014 PIPE from liability warrant to equity. The aggregate reduction in the liability was $615,700. See Note 14. For the Year Ended December 31, 2014 Beginning Outstanding Issued Exercised Cancelled / Forfeited Ending Outstanding 2011 Transaction 753,500 (66,667 ) 686,833 2014 Transaction 376,667 376,667 ipCapital 26,667 26,667 Exercise Agreement 300,000 300,000 Consultant Warrant (1) 20,833 (9,548 ) 11,285 Offer to Exercise 10,167 10,167 1,111,167 376,667 (66,667 ) (9,548 ) 1,411,619 (1) Effective September 18, 2013, we entered into a consulting agreement with Genesis Select to provide us with a variety of investor relations services. As part of their compensation, we issued to them a warrant to purchase 312,500 shares of our common stock at an exercise price of $0.50 per share. The warrant will vest, monthly, over the initial twelve-month service period of the contract, assuming that the agreement remains in-force, with the first vesting having occurred on October 18, 2013. The warrant is substantially similar in nature to those issued in the warrant amendment, discussed above, thus; the warrant is accounted in equity and is not included as a component of our warrants liability as of December 31, 2013. We used the following assumptions in a binomial pricing model to calculate the fair value of the warrant issued to Genesis: estimated volatility 181%; expected term 4.96 years; estimated exercise factor 4, risk free interest rate 1.41%; and dividends 0. Expense associated with this warrant is recognized as a component of general and administrative expense over the one-year vesting term of the warrant. Effective April 11, 2014, we cancelled our consulting agreement with Genesis Select. Under the terms of the agreement, 169,273 of the warrants that had been issued the firm had vested as of the effective cancellation date. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders Equity Common Stock On July 24, 2015 we entered into a securities purchase agreement and subscription agreement, pursuant to which we issued and sold for cash an aggregate of 2,105,919 shares of our common stock at a purchase price of $1.21 per share. We derived gross proceeds of $2,550,500 from this placement. During 2015, we granted 57,911 options to purchase common stock to our Chief Financial Officer at a weighted average exercise price of $1.80 per share. During 2015, we awarded 15,000 shares of restricted common stock to employees. The valuation of the restricted common stock awards was based on the closing fair market value of our common stock on the grant date. For the awards made to employees, such fair market value ranged from $1.95 to $2.40 per share. On January 7, 2014, we issued and sold for cash an aggregate 753,333 shares of our common stock at a purchase price of $4.50 per share in the 2014 Transaction that resulted in gross proceeds of $3,390,000 (See Note 4). Gross cash proceeds $ 3,390,000 Less: gross proceeds allocated to warrants liability investors (1,356,000 ) Gross proceeds allocated to additional paid-in capital and common stock 2,034,000 Less: cash issuance costs legal fees (20,000 ) Recorded in additional paid-in capital and common stock $ 2,014,000 In conjunction with the 2014 Transaction, we recorded a warrant liability of $1,356,000 as of January 7, 2014 on our Balance Sheet (See Note 8). During 2014, the Company granted 160,000 options to purchase common stock to three directors and our Chief Executive Officer at a weighted average exercise price of $2.40 per share, and 3,333 to employees at an exercise price of $1.95 per share. We repriced stock options of 20,000 shares from exercised price $5.55 per share to $2.40 per share and 46,667 shares from $5.55 per share to $1.80 per share for two directors. Also, the Company issued 17,121 shares of common stock as a result of the exercise of employee stock options, at an average exercise price of $2.85 per share, which resulted in $3,187 of proceeds to the Company. During 2014, the Company awarded 291,300 shares of restricted common stock to employees, and 167 to a consultant. Restricted shares vest ratably over a 33-month period commencing in the fourth month after the grant date. Upon a grantees termination of service to us prior to full vesting any unvested shares will be cancelled. The fair market value of the awards made to employees ranged from $1.65 to $5.10 per share, and the fair market value of the awards made to consultant at $3.00. During 2014, the Company issued 66,667 shares of common stock as a result of the exercise of warrants, at an average exercise price of $3.90, which resulted in $260,000 of proceeds to the Company. Stock Repurchase Program During the years ended December 31, 2015 and 2014, the Company did not repurchase any of its common stock under the terms of its Board-approved $1,000,000 stock repurchase program (stock repurchase program). On November 18, 2015, our Board of Directors decided to terminate this program. At the time of termination, approximately $782,600 remained available for future purchases under this program. Stock-Based Compensation Plans Active Plans 2012 Equity Incentive Plan In the case of a restricted stock award, the entire number of shares subject to such award would be issued at the time of the grant and subject to vesting provisions based on time or other conditions specified by the Board or an authorized committee of the Board. For awards based on time, should the grantees service to the Company end before full vesting occurred, all unvested shares would be forfeited and returned to the Company. In the case of awards granted with vesting provisions based on specific performance conditions, if those conditions were not met, then all shares would be forfeited and returned to the Company. Until forfeited, all shares issued under a restricted stock award would be considered outstanding for dividend, voting and other purposes. Under the 12 Plan, the exercise price of non-qualified stock options granted is to be no less than 100% of the fair market value of the Companys common stock on the date the option is granted. The exercise price of incentive stock options granted is to be no less than 100% of the fair market value of the Companys common stock on the date the option is granted provided, however, that if the recipient of the incentive stock option owns greater than 10% of the voting power of all shares of the Companys capital stock then the exercise price will be no less than 110% of the fair market value of the Companys common stock on the date the option is granted. The purchase price of the restricted stock issued under the 12 Plan shall also not be less than 100% of the fair market value of the Companys common stock on the date the restricted stock is granted. All options granted under the 12 Plan are immediately exercisable by the optionee; however, there is a vesting period for the options. The options (and the shares of common stock issuable upon exercise of such options) vest, ratably, over a 33-month period; however, no options (and the underlying shares of common stock) vest until after three months from the date of the option grant. The exercise price is immediately due upon exercise of the option. The maximum term of options issued under the 12 Plan is ten years. Shares issued upon exercise of options are subject to the Companys repurchase, which right lapses as the shares vest. The 12 Plan will terminate no later than November 7, 2022. During the year ended December 31, 2015, options to purchase 57,911 shares of common stock, with a weighted average grant date fair value of $1.80, were granted under the 12 Plan, 15,000 shares of restricted common stock, with a weighted average grant date fair value of $2.35 were granted, no options had been exercised and 189,609 shares of common stock remained available for issuance under the 12 Plan. No options previously issued under the 12 Plan were exercised during the year ended December 31, 2015. Grant to Consultant Inactive Plans The following table summarizes options outstanding as of December 31, 2015 and 2014 that were granted from stock based compensation plans that are inactive. As of December 31, 2015 such plans can no longer grant options. Options Outstanding Year Beginning of Year Granted Exercised Cancelled End of Year 2008 Stock Option Plan 2015 430,000 (6,000 ) (28,455 ) 395,545 2005 Equity Incentive Plan 2015 17,333 (3,333 ) 14,000 Supplemental Stock Option Agreement 2015 333 333 447,666 (6,000 ) (31,788 ) 409,878 2008 Stock Option Plan 2014 641,255 (16,455 ) (194,800 ) 430,000 2005 Equity Incentive Plan 2014 64,833 (667 ) (46,833 ) 17,333 1998 Stock Option/Stock Issuance Plan 2014 Supplemental Stock Option Agreement 2014 333 333 706,421 (17,122 ) (241,633 ) 447,666 Summary All Plans A summary of the status of all of the options outstanding under all of the Companys stock option plans, and non-plan grants to consultants, as of December 31, 2015 and 2014, and changes during the years then ended, is presented in the following table: 2015 2014 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Beginning 685,867 $ 2.70 801,289 $ 3.15 Granted 57,911 $ 1.80 230,000 $ 2.10 Exercised (6,000 ) $ 0.79 (17,121 ) $ 2.85 Forfeited or expired (31,788 ) $ 3.26 (328,301 ) $ 3.60 Ending 705,990 $ 2.63 685,867 $ 2.70 Exercisable at year-end 705,990 2.63 685,867 $ 2.70 Vested or expected to vest at year-end 704,763 $ 2.64 676,299 $ 2.70 Weighted average fair value of options granted during the period $ 2.63 $ 2.70 As of December 31, 2015 and 2014, of the options exercisable, 526,648 and 414,184 were vested, respectively. The following table summarizes information about stock options outstanding as of December 31, 2015: Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $0.75-$1.80 104,111 7.10 $ 1.35 58,789 $ 1.01 $1.82-$1.82 93,333 8.42 $ 1.82 37,475 $ 1.82 $2.06-$2.40 73,000 6.67 $ 2.28 70,778 $ 2.29 $2.48-$2.48 7,333 1.04 $ 2.48 7,333 $ 2.48 $2.54-$2.54 113,333 8.92 $ 2.54 37,778 $ 2.54 $2.55-$3.00 80,667 6.04 $ 2.71 80,667 $ 2.71 $3.03-$3.30 45,600 5.32 $ 3.08 45,600 $ 3.08 $3.45-$3.45 106,412 5.83 $ 3.45 106,412 $ 3.45 $4.20-44.20 80,000 5.69 $ 4.20 80,000 $ 4.20 $5.70-$6.88 2,201 5.97 $ 6.38 1,816 $ 6.32 $0.75-$6.68 705,990 6.87 $ 2.63 526,648 $ 2.81 As of December 31, 2015, there were outstanding options to purchase 705,990 shares of common stock with a weighted average exercise price of $2.63 per share, a weighted average remaining contractual term of 6.87 years and an aggregate intrinsic value of $4,710. Of the options outstanding as of December 31, 2015, 526,648 were vested, 178,114 were estimated to vest in future periods and 1,228 were estimated to be forfeited or to expire in future periods. As of December 31, 2015, there was approximately $165,200 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested options. That cost is expected to be recognized over a weighted-average period of approximately twelve months. During 2015, the Company awarded 15,000 shares of restricted common stock, which vest ratably, over a 33-month period; however, no shares vest until after three months from the date of the restricted stock award. The Company includes the common stock underlying the restricted stock award in shares outstanding once the common stock underlying the restricted stock award has vested and the restriction has been removed (releases or released). A summary of the status of all of the Companys unreleased restricted stock awards as of December 31, 2015 and 2014 and changes during the years then ended, is summarized in the following table. 2015 2014 Shares Weighted Average Fair Value Shares Weighted Average Fair Value Beginning unreleased 287,666 $ 2.66 262,562 $ 4.20 Awarded 15,000 $ 2.35 291,467 $ 2.46 Released (116,500 ) $ 3.09 (98,319 ) $ 3.75 Forfeited (79,580 ) $ 2.42 (168,044 ) $ 3.75 Ending unreleased 106,586 $ 2.31 287,666 $ 2.70 Of the restricted stock awards unreleased at December 31, 2015, 77,062 were estimated to be released in future periods and 29,524 were estimated to be forfeited in future periods. The aggregate fair market value of the unreleased restricted stock awards at December 31, 2015, based on the closing price of our stock as of such date of $0.90 was $95,900. As of December 31, 2015, there was approximately $213,000 of total unrecognized compensation cost, net of estimated forfeitures, related to unreleased restricted stock awards. That cost is expected to be recognized over a weighted-average period of approximately two years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The components of the provision (benefit) for income taxes for the years ended December 31, 2015 and 2014 consisted of the following: 2015 2014 Current Federal $ $ State Foreign 3,700 3,100 $ 3,700 $ 3,100 Deferred Federal $ $ State Foreign Total $ 3,700 $ 3,100 The following table summarizes the differences between income tax expense and the amount computed applying the federal income tax rate of 34% for the years ended December 31, 2015 and 2014: 2015 2014 Federal income tax (benefit) at statutory rate $ (1,491,600 ) $ (1,217,600 ) State income tax (benefit) at statutory rate (8,100 ) (5,600 ) Foreign tax rate differential 700 5,100 Compensation from exercise of non-qualified stock options and restricted stock awards 3,400 2,100 SBC NQ cancellations 23,500 151,500 Change in valuation allowance 1,469,900 1,530,100 Warrant liability (65,100 ) (548,400 ) Meals and entertainment (50%) 7,700 11,600 Tax rate changes (2,500 ) (1,000 ) Other items 65,800 75,300 Provision (benefit) for income tax $ 3,700 $ 3,100 Deferred income taxes and benefits result from temporary timing differences in the recognition of certain expense and income items for tax and financial reporting purposes. The following table sets forth those differences as of December 31, 2015 and 2014: 2015 2014 Net operating loss carryforwards $ 21,032,900 $ 19,483,000 Tax credit carryforwards 1,047,300 1,047,000 Depreciation and amortization (20,400 ) 55,000 Compensation expense non-qualified stock options 729,500 588,000 Deferred revenue and maintenance service contracts 1,344,400 1,541,000 Warrant liability 800 7,000 Reserves and other 157,300 217,000 Total deferred tax assets 24,291,800 22,938,000 Deferred tax liability capitalized software (3,900 ) (120,000 ) Net deferred tax asset 24,287,900 22,818,000 Valuation allowance (24,287,900 ) (22,818,000 ) Net deferred tax asset $ $ For financial reporting purposes, with the exception of the year ended December 31, 2007, the Company has incurred a loss in each year since inception. Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company has provided a full valuation allowance against its net deferred tax assets at December 31, 2015 and 2014. The net change in the valuation allowance was $(1,469,900) and $(1,530,100) for the years ended December 31, 2015 and 2014, respectively. At December 31, 2015, At December 31, 2015, the Company had approximately $1 million of federal research and development tax credits that will begin to expire in 2018. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | 11. Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and trade receivables. The Company places cash and, when applicable, cash equivalents, with high quality financial institutions and, by policy, limits the amount of credit exposure to any one financial institution. As of December 31, 2015, the Company had approximately $1,559,900 of cash with financial institutions in excess of FDIC insurance limits. As of December 31, 2014, the Company had approximately $1,316,600 of cash with financial institutions in excess of FDIC insurance limits. For the years ended December 31, 2015 and December 31, 2014, the Company considered the following to be its most significant customers: 2015 2014 Customer % Sales % Accounts Receivable % Sales % Accounts Receivable Centric Systems 5.0 % 13.2 % 4.3 % 3.2 % Elosoft 10.9 % 14.8 % 5.7 % 6.9 % IDS LLC 5.8 % - 4.2 % 0.4 % KitASP 3.8 % 16.1 % 1.8 % 0.0 % Raytheon 9.4 % 1.6 % 1.1 % 0.0 % Thermo LabSystems 2.9 % 7.8 % 4.4 % 6.8 % Uniface 5.3 % 1.9 % 2.0 % 0.8 % Xerox 3.3 % 7.6 % 2.1 % 0.0 % Total 46.4 % 63.0 % 25.6 % 18.1 % The Company performs credit evaluations of customers financial condition whenever necessary, and does not require cash collateral or other security to support customer receivables. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Operating Leases On August 24, 2015, we entered into a new office lease for our corporate headquarters in Campbell, California which became effective on October 1, 2015, is better suited to our California operations and results in significant monthly savings. The term of this lease is from October 1, 2015 through September 30, 2018. On February 1, 2014, we had previously relocated our corporate offices to a larger suite within our landlords office complex on South Bascom Avenue in Campbell, California. We are currently leasing 10,659 square feet under a five-year lease that, unless renewed, will expire in October 2018. On August 11, 2015 we entered into a sublease agreement to sublease the entirety of the South Bascom office space to a third party. The term of the sublease extends from November 1, 2015 through the end of our office lease term for that space in October, 2018. The monthly rent payments due to hopTo under this sublease fully offset the monthly rent payments due to the landlord under hopTos lease for that space. The following table sets forth the net minimum lease payments we will be required to make throughout the remainder of these leases: Year Ending December 31, 2016 $ 111,100 2017 114,300 2018 68,300 $ 293,700 Rent expense aggregated approximately $396,400 and $477,940 for the years ended December 31, 2015 and 2014, respectively. Contingencies. The Company enters into indemnification provisions under (i) its agreements with other companies in its ordinary course of business, including contractors and customers and (ii) its agreements with investors. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Companys activities or, in some cases, as a result of the indemnified partys activities under the agreement. These indemnification provisions often include indemnifications relating to representations made by the Company with regard to intellectual property rights, and often survive termination of the underlying agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of December 31, 2015. The Companys software license agreements also generally include a performance guarantee that the Companys software products will operate substantially as described in the applicable program documentation for a period of 90 days after delivery. The Company also generally warrants that services that the Company performs will be provided in a manner consistent with reasonably applicable industry standards. To date, the Company has not incurred any material costs associated with these warranties and has no liabilities recorded for these agreements as of December 31, 2015. Employment Agreement Eldad Eilam On August 21, 2013, our Board of Directors and Compensation Committee approved a new employment agreement for Eldad Eilam, our President and Chief Executive Officer. Under the employment agreement, Mr. Eilam will receive an annual base salary of $275,000 and will be eligible for a performance-based bonus in the discretion of our Compensation Committee. For 2015, Mr. Eilam is eligible for a bonus of up to $75,000. The employment agreement modified the vesting provisions of restricted shares and stock options that had previously been awarded to Mr. Eilam. Under such modified vesting provisions, which previously only accelerated in connection with a termination without cause and only in certain specified change of control situations, if Mr. Eilams employment is terminated as a result of death or disability, by the Company without cause, or by Mr. Eilam for good reason, or following a change in control, then all of Mr. Eilams unvested restricted shares and stock options shall immediately vest. Mr. Eilam is an at-will employee, however, in the event that Mr. Eilams employment is terminated by the Company without cause, or Mr. Eilam terminates his employment for good reason or following a change in control, then, in addition to the vesting of Mr. Eilams unrestricted shares and stock options as noted above, Mr. Eilam shall receive his base salary for a period of 12 months and shall also receive payment or reimbursement for a period of 12 months of the full cost to Mr. Eilam of any Company provided health insurance that Mr. Eilam elects to obtain for Mr. Eilam and any of his eligible dependents. As a condition to Mr. Eilam receiving such payments, Mr. Eilam will have to execute and deliver to the Company a general release. At all times that Mr. Eilam is an employee of the Company, the Company, at its own expense, shall provide life insurance on Mr. Eilams life with a death benefit in an amount not less than $1,000,000 and shall also maintain long-term disability insurance on Mr. Eilam. |
Employee 401(k) Plan
Employee 401(k) Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
13. Employee 401(k) Plan | 13. Employee 401(k) Plan In December 1998, the Company adopted a 401(k) Plan (the Plan), to provide retirement benefits for employees. As allowed under Section 401(k) of the Internal Revenue Code, the Plan provides tax-deferred salary deductions for eligible employees. Employees may contribute up to 15% of their annual compensation to the Plan, limited to a maximum annual amount as set periodically by the Internal Revenue Service. In addition, the Company may make discretionary/matching contributions. During 2015 and 2014, the Company contributed a total of approximately $44,000 and $60,200, to the Plan, respectively. |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure of Cash Flow Information | 14. Supplemental Disclosure of Cash Flow Information The following table presents supplemental disclosure information for the statements of cash flows for the years ended December 31, 2015 and 2014: 2015 2014 Cash Paid: Income Taxes (1) $ 4,400 $ 3,400 Interest (1) All such disbursements were for the payment of foreign income taxes. During 2015, we incurred $182,400 of impairment loss from writing down certain capitalized software development cost that were associated with our consumer products. During 2015, the Company reduced its warrants liability by $615,700, of which $208,400 was recorded in the Consolidated Statement of Operations. During 2015, we incurred $116,400 of issuance cost for our 2015 Transaction funding for which $30,000 of cash was not disbursed. During 2015, we reclassed our short-term security deposit for our Campbell Avenue lease of $40,700 from non-current other assets to prepaid. During 2014, the Company capitalized $61,000 of property and equipment for which no cash was disbursed. The Company reported this amount as a component of accounts payable. During 2014, the Company reduced its warrants liability by $332,500. This reduction consisted of $1,624,300 charged to other income, $64,200 recorded in general and administrative expense, all of which was partially offset by the issuance of warrants totaling $1,356,000. During 2014, the Company capitalized $106,600 of property and equipment for which no cash was disbursed. The Company recorded $84,200 of such amount to long term liabilities deferred rent and $22,400 of such amount to current liabilities deferred rent. During 2014, the Company entered a capital lease associated with capitalized software purchased for the administration of hopTo Work licenses. As part of this transaction $16,500 was capitalized to capitalized software and $8,400 was capitalized to prepaid expenses. The total amount financed under this capital lease is $24,900 and the remaining balance as of December 31, 2014 was $22,900. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. Related Party Transactions ipCapital Group, Inc. On October 11, 2011, we engaged ipCapital Group, Inc. (ipCapital), an affiliate of John Cronin, who is one of our directors, to assist us in the execution of our strategic decision to significantly strengthen, grow and commercially exploit our intellectual property assets. Our engagement agreement with ipCapital, which has been amended three times, affords us the right to request ipCapital to perform a number of diverse services, employing its proprietary processes and methodologies, to facilitate our ability to identify and extract from our current intellectual property base new inventions, potential patent applications, and marketing and licensing opportunities. For the years ended December 31, 2015 and 2014, there were no services performed, additional charges incurred or payments made to ipCapital under the agreement. In addition to the fees we agreed to pay ipCapital for its services, we issued ipCapital a five-year warrant to purchase up to 26,667 shares of our common stock at an initial price of $3.90 per share. Half of the warrant (13,333 shares) has a time-based vesting condition, with such vesting to occur in three equal annual installments. The first, second, and third vesting installments occurred on October 11, 2012, 2013, and 2014. The remaining 13,333 shares became fully vested upon the completion to our satisfaction of all services that we requested from ipCapital under the engagement agreement, prior to the signing of the amendments. Such performance was deemed satisfactory during 2012. We believe that these fees, together with the issuance of the warrant, constitute no greater compensation than we would be required to pay an unaffiliated person for substantially similar services. The exercise price of the warrant issued to ipCapital could be reset to below-market value. Consequently, we have concluded that such warrant is not indexed to our common stock; thus, we will accrete the fair value of the warrant as a liability over the anticipated service period. Additionally, in accordance with the liability method of accounting, we will re-measure the fair value of the then-outstanding warrant at each future balance sheet date and recognize the change in fair value as general and administrative compensation expense. (See Note 8) We recognized $(18,100) and $(64,200) as a component of general and administrative expense during the years ended December 31, 2015 and 2014, respectively, resulting from the change in fair value. ipCapital Licensing Company I, LLC On February 4, 2013, we entered into an IP Brokerage agreement with ipCapital Licensing Company I, LLC (ipCLC). At the time that we entered into this agreement, John Cronin was a partner at ipCLC. He is no longer affiliated with ipCLC. Pursuant to the agreement, we have engaged ipCLC, on a no-retainer basis, to identify and present us with candidates who may be seeking to acquire a certain limited group of our patents unrelated to our current business strategy. If during the applicable term we enter into an agreement with any candidate presented by ipCLC to acquire or otherwise exploit the covered patents, we will pay ipCLC a fee of ten percent (10%) of the royalties, fees, and other consideration paid over the life of the agreement. The agreement is effective as of February 4, 2013, and will end 18 months after we or ipCLC served 60 days written notice of termination to the other party (with earlier termination possible in the event of a material breach). The agreement provides for customary confidentiality undertakings, limitations on ipCLCs total liability and mutual indemnification provisions. We paid no compensation to ipCLC under the terms of the IP Brokerage Agreement during the years ended December 31, 2015 and 2014, respectively and no amounts were due ipCLC under its terms as of December 31, 2015. We believe the terms of the agreement are fair and reasonable to us and are at least as favorable as those that could be obtained on an arms length basis. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 16. Segment Information The Companys operations have historically been conducted and reported in two segments, GO-Global and hopTo, each representing a specific product line and dedicated operating resources. During the fourth quarter of 2014, the Company developed its hopTo Work product and go to market strategy, and beginning in January of 2015, it reorganized to a functional organization structure with consolidated decision-making authority over engineering, product management, sales and marketing resources. Resources in these functional departments are now shared for the development, sales and support of both the GO-Global and hopTo products. The GO-Global and hopTo Work products also have similar target customers, distribution channels, and common reseller partners. Beginning with the three-month period ended March 31, 2015, the Company will no longer report financial results in two segments. Software revenue and services revenue for the hopTo Work product will be included in the Windows software and Windows services revenue, respectively. Revenue by country for the years ended December 31, 2015 and 2014 was as follows: Years Ended December 31, Revenue by Country 2015 2014 United States $ 2,267,600 $ 2,501,800 Brazil 666,400 669,100 Other Countries 2,047,000 2,382,500 Total $ 4,981,000 $ 5,553,400 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | 17. Subsequent Event On January 27, 2016, we filed an amendment of our Amended and Restated Certificate of Incorporation, as amended, to effect a 1-for-15 reverse stock split of our common stock (the Reverse Stock Split). The Reverse Stock Split became effective in the stock market upon commencement of trading on January 28, 2016. As a result of the Reverse Stock Split, every fifteen shares of our pre-Reverse Stock Split common stock were combined and reclassified into one share of our common stock. No fractional shares were issued in connection with the Reverse Stock Split, and cash paid to stockholders for potential fractional shares was insignificant. The number of shares of common stock subject to outstanding options, restricted stock units, warrants and convertible securities were also reduced by a factor of fifteen as of January 27, 2016. All historical share and per share amounts reflected throughout this report have been adjusted to reflect the Reverse Stock Split. The authorized number of shares and the par value per share of our common stock were not affected by the Reverse Stock Split. |
Significant Accounting Polici24
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates |
Cash Equivalents | Cash Equivalents |
Property and Equipment | Property and Equipment |
Shipping and Handling | Shipping and Handling |
Software Development Costs | Software Development Costs Costs of Software to be Sold, Leased or Marketed, |
Revenue Recognition | Revenue Recognition Software license revenues are recognized when: ● Persuasive evidence of an arrangement exists (i.e., when the Company signs a non-cancelable license agreement wherein the customer acknowledges an unconditional obligation to pay, or upon receipt of the customers purchase order) and ● Delivery has occurred or services have been rendered and there are no uncertainties surrounding product acceptance (i.e., when title and risk of loss have been transferred to the customer, which generally occurs when the media containing the licensed program(s) is provided to a common carrier or, in the case of electronic delivery, when the customer is given access to the licensed programs), and ● The price to the customer is fixed or determinable, as typically evidenced in a signed non-cancelable contract, or a customers purchase order, and ● Collectability is probable. If collectability is not considered probable, revenue is recognized when the fee is collected. Revenue recognized on software arrangements involving multiple deliverables is allocated to each deliverable based on vendor-specific objective evidence (VSOE) or third party evidence of the fair values of each deliverable; such deliverables include licenses for software products, maintenance, private labeling fees, or customer training. The Company limits its assessment of VSOE for each deliverable to either the price charged when the same deliverable is sold separately or the price established by management having the relevant authority to do so, for a deliverable not yet sold separately. If sufficient VSOE of fair value does not exist, so as to permit the allocation of revenue to the various elements of the arrangement, all revenue from the arrangement is deferred until such evidence exists or until all elements are delivered. If VSOE of the fair value does not exist and the only undelivered element is maintenance, then we recognize revenue on a ratable basis. If VSOE of the fair value of all undelivered elements exists but evidence does not exist for one or more delivered elements, then revenue is recognized using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. Certain resellers (stocking resellers) purchase product licenses that they hold in inventory until they are resold to the ultimate end-user (an inventory stocking order). At the time that a stocking reseller places an inventory stocking order, no product licenses are shipped by the Company to the stocking reseller rather, the stocking resellers inventory is credited with the number of licenses purchased and the stocking reseller can resell (issue) any number of licenses from their inventory at any time. Upon receipt of an order to issue one or more licenses from a stocking resellers inventory (a draw down order), the Company will ship the licenses(s) in accordance with the draw down orders instructions. The Company defers recognition of revenue from inventory stocking orders until the underlying licenses are sold and shipped to the end user, as evidenced by the receipt and fulfillment of the stocking resellers draw down order, assuming all other revenue recognition criteria have been met. There are no rights of return granted to purchasers of the Companys software products. Revenue is recognized from maintenance contracts ratably over the related contract period, which generally ranges from one to five years. All of the Companys software licenses are denominated in U.S. dollars. |
Deferred Rent | Deferred Rent Incentives received upon entering into the lease agreement are recognized on a straight-line basis as a reduction to rent over the term of the lease. The unamortized portion of these incentives are recorded as a part of deferred rent in current or long-term liabilities, as appropriate. |
Post-employment Benefits (Severance Liability) | Post-employment Benefits (Severance Liability) |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Beginning Balance Charge Offs Recoveries Provision Ending Balance 2015 $ 32,600 $ $ $ (15,300 ) $ 17,300 2014 $ 42,000 $ $ $ (9,400 ) $ 32,600 |
Income Taxes | Income Taxes Income Taxes, The Company and one or more of its subsidiaries are subject to United States federal income taxes, as well as income taxes of multiple state and foreign jurisdictions. The Company and its subsidiaries are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years prior to 2011. There are no tax examinations currently underway for any of the Companys or its subsidiaries tax returns for years subsequent to 2010. The Companys policy for deducting interest and penalties is to treat interest as interest expense and penalties as taxes. The Company had not accrued any amount for the payment of interest or penalties related to any uncertain tax positions at either December 31, 2015 or 2014, as its review of such positions indicated that such potential positions were minimal. Under FASB ASC 740-10-05, Income Taxes, |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of the Companys warrants are determined in accordance with FASB ASC 820, Fair Value Measurement, ● Level 1: Defined as observable inputs, such as quoted (unadjusted) prices in active markets for identical assets or liabilities. ● Level 2: Defined as observable inputs other than quoted prices included in Level 1. This includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3: Defined as unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. As of December 31, 2015 and 2014, all of the Companys $31,600 and $647,300 Warrants Liability reported at fair value, respectively, were categorized as Level 3 inputs (see Note 8). |
Derivative Financial Instruments | Derivative Financial Instruments |
Long-Lived Assets | Long-Lived Assets |
Loss Contingencies | Loss Contingencies |
Stock-Based Compensation | Stock-Based Compensation Compensation Stock Compensation. Valuation and Expense Information Under FASB ASC 718-10 The Company recorded stock-based compensation expense of $757,500 and $593,000 in the years ended December 31, 2015 and 2014, respectively. No expense was capitalized related to software development. As required by FASB ASC 718-10, the Company estimates forfeitures of employee stock-based awards and recognizes compensation cost only for those awards expected to vest. Forfeiture rates are estimated based on an analysis of historical experience and are adjusted to actual forfeiture experience as needed. During 2015, we awarded 15,000 shares of restricted common stock to employees. The valuation of the restricted common stock awards was based on the closing fair market value of our common stock on the grant date. For these awards, such fair market value ranged from $1.95 to $2.40 per share. During 2015, we granted 57,911 options to purchase common stock to our Chief Financial Officer at an exercisable price of $1.80 per share. This option grant was offered as an exchange for forfeiting 44,445 of unreleased stock award that was originally awarded in May 2014. For all options granted during 2015 and 2014, the Company set the exercise price equal to the closing fair market value of the Companys common stock as of the date of grant. The following table illustrates the non-cash stock-based compensation expense recorded during the years ended December 31, 2015 and 2014 by income statement classification: 2015 2014 Cost of revenue $ 9,000 $ 6,500 Selling and marketing expense 148,700 73,000 General and administrative expense 499,500 437,800 Research and development expense 100,300 75,700 $ 757,500 $ 593,000 The Company estimated the fair value of each option grant made during the years ended December 31, 2015 and 2014 on the date of grant using a binomial model, with the assumptions set forth in the following table: 2015 2014 Estimated volatility 103% 96% - 126% Annualized forfeiture rate 0% 0% - 6.0% Expected option term (years) 10.00 0.03 - 10.00 Estimated exercise factor 15.0 1.5 - 15.0 Approximate risk-free interest rate 0.74% 0.03% - 1.06% Expected dividend yield The estimated annualized forfeiture rate was based on an analysis of historical data and considered the impact of events such as work force reductions we carried out in previous years. The expected term of our stock-based awards was based on historical award holder exercise patterns and considered the market performance of our common stock and other items. The estimated exercise factor was based on an analysis of historical data; historical exercise patterns; and a comparison of historical and current share prices. The approximate risk free interest rate was based on the implied yield available on U.S. Treasury issues with remaining terms equivalent to our expected term on our stock-based awards. The Company used the average historical volatility of its daily closing price for a period of time equal in length to the expected option term for the option being issued. The period of time over which historical volatility was measured ended on the last day of the quarterly reporting period during which the stock-based award was made. The Company does not anticipate paying dividends on its common stock for the foreseeable future. |
Earnings Per Share of Common Stock | Earnings Per Share of Common Stock Earnings Per Share, |
Comprehensive Loss | Comprehensive Loss Reporting Comprehensive Income, |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) In November, 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In August 2015, FASB issued ASU No. 2015-14 Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date In April 2015, FASB issued ASU No. 2015-05 IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Customers Accounting for Fees Paid in a Cloud Computing Arrangement In August 2014, FASB issued Accounting Standards Update (ASU) No. 2014-15 Preparation of Financial Statements - Going Concern (Subtopic 205-40). In June 2014, FASB issued ASU No. 2014-12 Compensation Stock Compensation (Topic 718) In May 2014, FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) 1. Removes inconsistencies and weaknesses in revenue requirements. 2. Provides a more robust framework for addressing revenue issues. 3. Improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. 4. Provides more useful information to users of financial statements through improved disclosure requirements. 5. Simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within such annual period. Early adoption is not permitted. We are currently evaluating this ASU in order to determine whether or not its adoption will have a material impact on our results of operations, cash flows or financial position. In April 2014, FASB issued ASU No. 2014-08 Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) Presentation of Financial Statements Discontinued Operations, |
Significant Accounting Polici25
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts | The following table illustrates the details of the Allowance for Doubtful Accounts for the years ended December 31, 2015 and 2014: Beginning Balance Charge Offs Recoveries Provision Ending Balance 2015 $ 32,600 $ $ $ (15,300 ) $ 17,300 2014 $ 42,000 $ $ $ (9,400 ) $ 32,600 |
Schedule of Employee Service Share-based Compensation Expense | The following table illustrates the non-cash stock-based compensation expense recorded during the years ended December 31, 2015 and 2014 by income statement classification: 2015 2014 Cost of revenue $ 9,000 $ 6,500 Selling and marketing expense 148,700 73,000 General and administrative expense 499,500 437,800 Research and development expense 100,300 75,700 $ 757,500 $ 593,000 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The Company estimated the fair value of each option grant made during the years ended December 31, 2015 and 2014 on the date of grant using a binomial model, with the assumptions set forth in the following table: 2015 2014 Estimated volatility 103% 96% - 126% Annualized forfeiture rate 0% 0% - 6.0% Expected option term (years) 10.00 0.03 - 10.00 Estimated exercise factor 15.0 1.5 - 15.0 Approximate risk-free interest rate 0.74% 0.03% - 1.06% Expected dividend yield |
Capitalized Software Developm26
Capitalized Software Development Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Research and Development [Abstract] | |
Schedule of Capitalized Software Development Costs | Capitalized software development costs as of December 31, 2015 and 2014 consisted of the following: 2015 2014 Software development costs $ 518,800 $ 1,135,900 Accumulated amortization (498,000 ) (727,200 ) $ 20,800 $ 408,700 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and equipment | Property and equipment as of December 31, 2015 and 2015 consisted of the following: 2015 2014 Equipment $ 313,700 $ 306,400 Furniture & fixture 233,900 233,900 Leasehold improvements 167,600 167,600 715,200 707,900 Less: accumulated depreciation and amortization 462,700 345,400 $ 252,500 $ 362,500 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses as of December 31, 2015 and 2014 consisted of the following: 2015 2014 Consulting services $ 40,200 $ 77,300 Franchise tax 3,200 3,200 Software and subscription fees 4,900 15,900 Other 21,300 19,800 $ 69,600 $ 116,200 |
Severance Liability (Tables)
Severance Liability (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Summary of Cash Compensation and Medical Coverage Payments | The following table summarizes the salary continuation and medical coverage payments during the period ended December 31, 2015. Compensation Medical Coverage Total Balance at December 31, 2014 $ $ Separation agreement entered into in 2015 17,700 17,700 Accrued interest Payments (11,800 ) (11,800 ) Balance at December 31, 2015 $ $ 5,900 $ 5,900 Compensation Medical Coverage Total Balance at December 31, 2013 $ 62,900 $ 62,900 Separation agreement entered into in 2015 37,500 10,600 48,100 Accrued interest 1,700 1,700 Payments (102,100 ) (10,600 ) (112,700 ) Balance at December 31, 2014 $ $ |
Deferred Rent (Tables)
Deferred Rent (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Revenue | |
Summary of Deferred Rent | As of December 31, 2015 deferred rent was: Component Current Liabilities Long-Term Liabilities Total Deferred rent expense $ (18,700 ) $ (46,100 ) $ (64,800 ) Deferred rent benefit 39,700 72,800 112,500 $ 21,000 $ 26,700 $ 47,700 As of December 31, 2014 deferred rent was: Component Current Liabilities Long-Term Liabilities Total Deferred rent expense $ 4,800 $ 45,700 $ 50,500 Deferred rent benefit 39,700 112,500 152,200 $ 44,500 $ 158,200 $ 202,700 |
Liability Attributable to War31
Liability Attributable to Warrants (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | We used a binomial pricing model to determine the fair value of our warrants liability as of December 31, 2015 and 2014, the balance sheet dates, respectively, using the following assumptions: For the Year Ended December 31, 2015 Warrants Estimated Volatility Annualized Forfeiture Rate Expected Option Term (Years) Estimated Exercise Factor Risk-Free Interest Rate Dividends 2011 Private Placement 104% - 132% 1.61 0.68 3.5 0.26% - 0.47% ipCapital 105% - 127% 1.79 0.79 4.0 0.26% - 0.54% For the Year Ended December 31, 2014 Warrants Estimated Volatility Annualized Forfeiture Rate Expected Option Term (Years) Estimated Exercise Factor Risk-Free Interest Rate Dividends 2011 Private Placement 91% - 104% 2.67 1.69 3.5 0.41% - 0.56% 2014 Private Placement 114% - 157% 5.00 - 4.08 3.5 1.35% - 1.69% ipCapital 92% - 127% 3.79 1.81 4 0.43% - 0.61% |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table is a reconciliation of the warrants liability measured at fair value using significant unobservable inputs (Level 3) for the year ended December 31, 2015: Warrants liability December 31, 2014 fair value $ 647,300 Change in fair value of warrant liability recorded in other income (190,300 ) Change in fair value of warrant liability recorded in general and administrative expense (18,100 ) Reclassification of 2014 PIPE Warrant to Equity (407,300 ) Warrants liability December 31, 2015 fair value $ 31,600 |
Schedule of Stockholders' Equity Note, Warrants or Rights | The following tables reconcile the number of warrants outstanding for the periods indicated: For the Year Ended December 31, 2015 Beginning Outstanding Issued Exercised Cancelled / Forfeited Ending Outstanding 2011 Transaction 686,833 686,833 2014 Transaction 376,667 376,667 ipCapital 26,667 26,667 Exercise Agreement 300,000 300,000 Consultant Warrant 11,285 11,285 Offer to Exercise 10,167 10,167 1,411,619 1,411,619 During the year ended December 31, 2015, our warrants liability was reduced by $407,300 as a result of the above mentioned reclassification of 2014 PIPE from liability warrant to equity. The aggregate reduction in the liability was $615,700. See Note 14. For the Year Ended December 31, 2014 Beginning Outstanding Issued Exercised Cancelled / Forfeited Ending Outstanding 2011 Transaction 753,500 (66,667 ) 686,833 2014 Transaction 376,667 376,667 ipCapital 26,667 26,667 Exercise Agreement 300,000 300,000 Consultant Warrant (1) 20,833 (9,548 ) 11,285 Offer to Exercise 10,167 10,167 1,111,167 376,667 (66,667 ) (9,548 ) 1,411,619 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | Gross cash proceeds $ 3,390,000 Less: gross proceeds allocated to warrants liability investors (1,356,000 ) Gross proceeds allocated to additional paid-in capital and common stock 2,034,000 Less: cash issuance costs legal fees (20,000 ) Recorded in additional paid-in capital and common stock $ 2,014,000 |
Schedule of Share-based Compensation, Activity | The following table summarizes options outstanding as of December 31, 2015 and 2014 that were granted from stock based compensation plans that are inactive. As of December 31, 2015 such plans can no longer grant options. Options Outstanding Year Beginning of Year Granted Exercised Cancelled End of Year 2008 Stock Option Plan 2015 430,000 (6,000 ) (28,455 ) 395,545 2005 Equity Incentive Plan 2015 17,333 (3,333 ) 14,000 Supplemental Stock Option Agreement 2015 333 333 447,666 (6,000 ) (31,788 ) 409,878 2008 Stock Option Plan 2014 641,255 (16,455 ) (194,800 ) 430,000 2005 Equity Incentive Plan 2014 64,833 (667 ) (46,833 ) 17,333 1998 Stock Option/Stock Issuance Plan 2014 Supplemental Stock Option Agreement 2014 333 333 706,421 (17,122 ) (241,633 ) 447,666 |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the status of all of the options outstanding under all of the Companys stock option plans, and non-plan grants to consultants, as of December 31, 2015 and 2014, and changes during the years then ended, is presented in the following table: 2015 2014 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Beginning 685,867 $ 2.70 801,289 $ 3.15 Granted 57,911 $ 1.80 230,000 $ 2.10 Exercised (6,000 ) $ 0.79 (17,121 ) $ 2.85 Forfeited or expired (31,788 ) $ 3.26 (328,301 ) $ 3.60 Ending 705,990 $ 2.63 685,867 $ 2.70 Exercisable at year-end 705,990 2.63 685,867 $ 2.70 Vested or expected to vest at year-end 704,763 $ 2.64 676,299 $ 2.70 Weighted average fair value of options granted during the period $ 2.63 $ 2.70 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding as of December 31, 2015: Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $0.75-$1.80 104,111 7.10 $ 1.35 58,789 $ 1.01 $1.82-$1.82 93,333 8.42 $ 1.82 37,475 $ 1.82 $2.06-$2.40 73,000 6.67 $ 2.28 70,778 $ 2.29 $2.48-$2.48 7,333 1.04 $ 2.48 7,333 $ 2.48 $2.54-$2.54 113,333 8.92 $ 2.54 37,778 $ 2.54 $2.55-$3.00 80,667 6.04 $ 2.71 80,667 $ 2.71 $3.03-$3.30 45,600 5.32 $ 3.08 45,600 $ 3.08 $3.45-$3.45 106,412 5.83 $ 3.45 106,412 $ 3.45 $4.20-44.20 80,000 5.69 $ 4.20 80,000 $ 4.20 $5.70-$6.88 2,201 5.97 $ 6.38 1,816 $ 6.32 $0.75-$6.68 705,990 6.87 $ 2.63 526,648 $ 2.81 |
Schedule of Unvested Restricted Stock Units Roll Forward | A summary of the status of all of the Companys unreleased restricted stock awards as of December 31, 2015 and 2014 and changes during the years then ended, is summarized in the following table. 2015 2014 Shares Weighted Average Fair Value Shares Weighted Average Fair Value Beginning unreleased 287,666 $ 2.66 262,562 $ 4.20 Awarded 15,000 $ 2.35 291,467 $ 2.46 Released (116,500 ) $ 3.09 (98,319 ) $ 3.75 Forfeited (79,580 ) $ 2.42 (168,044 ) $ 3.75 Ending unreleased 106,586 $ 2.31 287,666 $ 2.70 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision (benefit) for income taxes for the years ended December 31, 2015 and 2014 consisted of the following: 2015 2014 Current Federal $ $ State Foreign 3,700 3,100 $ 3,700 $ 3,100 Deferred Federal $ $ State Foreign Total $ 3,700 $ 3,100 |
Schedule of Effective Income Tax Rate Reconciliation | The following table summarizes the differences between income tax expense and the amount computed applying the federal income tax rate of 34% for the years ended December 31, 2015 and 2014: 2015 2014 Federal income tax (benefit) at statutory rate $ (1,491,600 ) $ (1,217,600 ) State income tax (benefit) at statutory rate (8,100 ) (5,600 ) Foreign tax rate differential 700 5,100 Compensation from exercise of non-qualified stock options and restricted stock awards 3,400 2,100 SBC NQ cancellations 23,500 151,500 Change in valuation allowance 1,469,900 1,530,100 Warrant liability (65,100 ) (548,400 ) Meals and entertainment (50%) 7,700 11,600 Tax rate changes (2,500 ) (1,000 ) Other items 65,800 75,300 Provision (benefit) for income tax $ 3,700 $ 3,100 |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes and benefits result from temporary timing differences in the recognition of certain expense and income items for tax and financial reporting purposes. The following table sets forth those differences as of December 31, 2015 and 2014: 2015 2014 Net operating loss carryforwards $ 21,032,900 $ 19,483,000 Tax credit carryforwards 1,047,300 1,047,000 Depreciation and amortization (20,400 ) 55,000 Compensation expense non-qualified stock options 729,500 588,000 Deferred revenue and maintenance service contracts 1,344,400 1,541,000 Warrant liability 800 7,000 Reserves and other 157,300 217,000 Total deferred tax assets 24,291,800 22,938,000 Deferred tax liability capitalized software (3,900 ) (120,000 ) Net deferred tax asset 24,287,900 22,818,000 Valuation allowance (24,287,900 ) (22,818,000 ) Net deferred tax asset $ $ |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | For the years ended December 31, 2015 and December 31, 2014, the Company considered the following to be its most significant customers: 2015 2014 Customer % Sales % Accounts Receivable % Sales % Accounts Receivable Centric Systems 5.0 % 13.2 % 4.3 % 3.2 % Elosoft 10.9 % 14.8 % 5.7 % 6.9 % IDS LLC 5.8 % - 4.2 % 0.4 % KitASP 3.8 % 16.1 % 1.8 % 0.0 % Raytheon 9.4 % 1.6 % 1.1 % 0.0 % Thermo LabSystems 2.9 % 7.8 % 4.4 % 6.8 % Uniface 5.3 % 1.9 % 2.0 % 0.8 % Xerox 3.3 % 7.6 % 2.1 % 0.0 % Total 46.4 % 63.0 % 25.6 % 18.1 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | The following table sets forth the net minimum lease payments we will be required to make throughout the remainder of these leases: Year Ending December 31, 2016 $ 111,100 2017 114,300 2018 68,300 $ 293,700 |
Supplemental Disclosure of Ca36
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table presents supplemental disclosure information for the statements of cash flows for the years ended December 31, 2015 and 2014: 2015 2014 Cash Paid: Income Taxes (1) $ 4,400 $ 3,400 Interest (1) All such disbursements were for the payment of foreign income taxes. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Country | Revenue by country for the years ended December 31, 2015 and 2014 was as follows: Years Ended December 31, Revenue by Country 2015 2014 United States $ 2,267,600 $ 2,501,800 Brazil 666,400 669,100 Other Countries 2,047,000 2,382,500 Total $ 4,981,000 $ 5,553,400 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) | 12 Months Ended |
Dec. 31, 2015Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Operating Segments | 2 |
Reverse stock split | 1-for-15 |
Significant Accounting Polici39
Significant Accounting Policies (Details Narrative) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)Integer$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | |
Cash equivalents, at carrying value | |||
Capitalized computer software, additions | $ 12,000 | $ 16,500 | |
Useful life software development cost maximum | 3 years | ||
Minimum number of delivered elements for which evidence does not exist | Integer | 1 | ||
Severance costs | $ 112,700 | $ 42,100 | 48,100 |
Other employee related liabilities | 0 | 5,900 | 0 |
Unrecognized tax benefits, income tax penalties and interest accrued | 0 | 0 | 0 |
Warrants and rights outstanding | $ 647,300 | 31,600 | 647,300 |
Impairment of long-lived assets held-for-use | 182,400 | 0 | |
Allocated share-based compensation expense | 757,500 | 593,000 | |
Employee service share-based compensation, allocation of recognized period costs, capitalized amount | $ 0 | $ 0 | |
Option granted | shares | |||
Number of shares that excluded from the computation of diluted earnings per share | shares | 2,224,195 | 2,385,152 | |
Employees [Member] | |||
Option granted | shares | 3,333 | ||
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price (in dollars per share) | $ / shares | $ 1.95 | ||
Three Directors And Chief Executive Officer [Member] | |||
Option granted | shares | 57,911 | ||
Option grant offered as an exchange for forfeiting | shares | 44,445 | ||
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price (in dollars per share) | $ / shares | $ 1.80 | ||
Minimum [Member] | |||
Property, plant and equipment, useful life | 3 years | ||
Maintenance contract period | 1 year | ||
Maximum [Member] | |||
Property, plant and equipment, useful life | 7 years | ||
Maintenance contract period | 5 years | ||
Leasehold Improvements [Member] | Minimum [Member] | |||
Property, plant and equipment, useful life | 3 years | ||
Leasehold Improvements [Member] | Maximum [Member] | |||
Property, plant and equipment, useful life | 7 years | ||
Restricted Stock [Member] | |||
Fair market value range | $ / shares | $ 2.35 | 2.46 | |
Restricted Stock [Member] | Employees [Member] | |||
Non option granted | shares | 15,000 | ||
Restricted Stock [Member] | Minimum [Member] | Employees [Member] | |||
Fair market value range | $ / shares | $ 1.95 | 1.65 | |
Restricted Stock [Member] | Maximum [Member] | Employees [Member] | |||
Fair market value range | $ / shares | $ 2.40 | $ 5.10 |
Significant Accounting Polici40
Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Beginning Balance | $ 32,600 | $ 42,000 |
Charge Offs | ||
Recoveries | ||
Provision | $ (15,300) | $ (9,400) |
Ending Balance | $ 17,300 | $ 32,600 |
Significant Accounting Polici41
Significant Accounting Policies - Schedule of Employee Service Share-based Compensation Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated share-based compensation expense | $ 757,500 | $ 593,000 |
Costs of Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated share-based compensation expense | 9,000 | 6,500 |
Selling and Marketing Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated share-based compensation expense | 148,700 | 73,000 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated share-based compensation expense | 499,500 | 437,800 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated share-based compensation expense | $ 100,300 | $ 75,700 |
Significant Accounting Polici42
Significant Accounting Policies - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 2 - Significant Accounting Policies (Details) - Fair Value Assumptions of Each Stock-based Award Granted (Incomplete) [Line Items] | ||
Estimated volatility, minimum | 96.00% | |
Estimated volatility, maximum | 126.00% | |
Estimated volatility | 103.00% | |
Annualized forfeiture rate, minimum | 0.00% | |
Annualized forfeiture rate, maximum | 6.00% | |
Annualized forfeiture rate | 0.00% | |
Expected option term (years) | 10 years | |
Estimated exercise factor | $ 15 | |
Approximate risk-free interest rate, minimum | 0.03% | |
Approximate risk-free interest rate, maximum | 1.06% | |
Approximate risk-free interest rate | 0.74% | |
Expected dividend yield | 0.00% | 0.00% |
Maximum [Member] | ||
Note 2 - Significant Accounting Policies (Details) - Fair Value Assumptions of Each Stock-based Award Granted (Incomplete) [Line Items] | ||
Expected option term (years) | 11 days | |
Estimated exercise factor | $ 1.5 | |
Minimum [Member] | ||
Note 2 - Significant Accounting Policies (Details) - Fair Value Assumptions of Each Stock-based Award Granted (Incomplete) [Line Items] | ||
Expected option term (years) | 10 years | |
Estimated exercise factor | $ 15 |
Capitalized Software Developm43
Capitalized Software Development Costs (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Research and Development [Abstract] | ||
Capitalized computer software, additions | $ 12,000 | $ 16,500 |
Capitalized computer software, amortization | 217,500 | $ 227,200 |
Capitalized computer software impairments | $ 182,400 |
Capitalized Software Developm44
Capitalized Software Development Costs - Schedule of Capitalized Software Development Costs (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Research and Development [Abstract] | ||
Software development costs | $ 518,800 | $ 1,135,900 |
Accumulated amortization | (498,000) | (727,200) |
Capitalized software development costs, net | $ 20,800 | $ 408,700 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Depreciation | $ 117,300 | $ 157,800 | |
Capitalized equipment cost | 7,300 | ||
Equipment [Member] | |||
Capitalized equipment cost | 35,700 | ||
Property, plant and equipment, disposals | $ 972,900 | ||
Furniture [Member] | |||
Capitalized equipment cost | 14,900 | ||
Property, plant and equipment, disposals | 213,400 | ||
Leasehold Improvements [Member] | |||
Capitalized equipment cost | $ 167,600 | ||
Property, plant and equipment, disposals | $ 147,500 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Property and equipment gross | $ 715,200 | $ 707,900 |
Less: accumulated depreciation and amortization | 462,700 | 345,400 |
Property and equipment net | 252,500 | 362,500 |
Equipment [Member] | ||
Property and equipment gross | 313,700 | 306,400 |
Furniture And Fixtures [Member] | ||
Property and equipment gross | 233,900 | 233,900 |
Leasehold Improvements [Member] | ||
Property and equipment gross | $ 167,600 | $ 167,600 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Liabilities (Details Narrative) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Consulting services | $ 40,200 | $ 77,300 |
Franchise tax | 3,200 | 3,200 |
Software and subscription fees | 4,900 | 15,900 |
Other | 21,300 | 19,800 |
Accrued expenses | $ 69,600 | $ 116,200 |
Severance Liability (Details Na
Severance Liability (Details Narrative) - USD ($) | 1 Months Ended | |||
Aug. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ||||
Payment made to employee medical coverage | $ 15,000 | |||
Severance liabilities | $ 5,900 | $ 0 | $ 62,900 |
Severance Liability - Summary o
Severance Liability - Summary of Cash Compensation and Medical Coverage Payments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Balance | $ 62,900 | $ 0 | |
Separation agreement | 48,100 | $ 17,700 | |
Accrued interest | 1,700 | ||
Payments | (112,700) | $ (42,100) | $ (48,100) |
Balance | $ 0 | $ 5,900 | 0 |
Compensation [Member] | |||
Balance | 62,900 | ||
Separation agreement | 37,500 | ||
Accrued interest | 1,700 | ||
Payments | $ (102,100) | ||
Balance | |||
Medical Coverage [Member] | |||
Balance | |||
Separation agreement | $ 17,800 | $ 10,600 | |
Accrued interest | |||
Payments | $ (11,800) | $ (10,600) | |
Balance | $ 5,900 |
Deferred Rent (Details Narrativ
Deferred Rent (Details Narrative) | Dec. 31, 2015USD ($) |
Revenue | |
Leasehold improvements | $ 106,600 |
Deferred Rent - Summary of Defe
Deferred Rent - Summary of Deferred Rent (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current Liabilities | $ 21,000 | $ 44,500 |
Long-Term Liabilities | 26,700 | 158,200 |
Total | 47,700 | 202,700 |
Deferred Rent Expense [Member] | ||
Current Liabilities | (18,700) | 4,800 |
Long-Term Liabilities | (46,100) | 45,700 |
Total | (64,800) | 50,500 |
Deferred Rent Benefit [Member] | ||
Current Liabilities | 39,700 | 39,700 |
Long-Term Liabilities | 72,800 | 112,500 |
Total | $ 112,500 | $ 152,200 |
Liability Attributable to War52
Liability Attributable to Warrants (Details Narrative) | Apr. 11, 2014shares | Jan. 07, 2014$ / sharesshares | Sep. 18, 2013$ / sharesshares | Dec. 31, 2015USD ($)Integer$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Jul. 24, 2015$ / shares |
Class of warrant or right, exercise price of warrants or rights | $ 3.90 | |||||
Warrants and rights outstanding | $ | $ 31,600 | $ 647,300 | ||||
Class of warrant or right, fair value | $ | 407,300 | |||||
Warrants liability, period increase (decrease) | $ | $ 615,700 | $ 332,500 | ||||
Fair value assumptions, expected volatility rate | 181.00% | 113.00% | ||||
Fair value assumptions, annualized forfeiture rate | 0.00% | |||||
Fair value assumptions, expected term | 4 years 11 months 16 days | |||||
Fair value assumption, exercise factor | Integer | 3.5 | |||||
Fair value assumptions, risk free interest rate | 1.41% | 1.20% | ||||
Fair value assumptions, weighted average expected dividend | $ 0 | $ 0 | ||||
Issuance of warrants to purchase of common stock | shares | 312,500 | |||||
Common stock at an exercise price | $ 0.50 | $ 1.21 | ||||
Class of warrant or right, shares canceled (in shares) | shares | 169,273 | (9,548) | ||||
Securities Purchase Agreement [Member] | ||||||
Class of warrant or right, number of securities called by warrants or rights | shares | 376,667 | |||||
Class of warrant or right, exercise price of warrants or rights | $ 6 | |||||
Exercise Agreement [Member] | ||||||
Fair value assumptions, expected term | 4 years 1 month 6 days | |||||
Class of warrant or right, shares canceled (in shares) | shares | ||||||
2011 Transaction [Member] | ||||||
Class of warrant or right, shares canceled (in shares) | shares | ||||||
2011 Transaction [Member] | Minimum [Member] | ||||||
Class of warrant or right, exercise price of warrants or rights | $ 3 | |||||
Warrants exercise price upon repricing | 255.00% | |||||
2011 Transaction [Member] | Maximum [Member] | ||||||
Class of warrant or right, exercise price of warrants or rights | $ 3.90 | |||||
Warrants exercise price upon repricing | 330.00% | |||||
Common Stock [Member] | Securities Purchase Agreement [Member] | ||||||
Stock issued during period, shares, new issues | shares | 753,333 | |||||
Share price | $ 4.50 |
Liability Attributable to War53
Liability Attributable to Warrants - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques (Details) - USD ($) | Sep. 18, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
Estimated Volatility | 181.00% | 113.00% | |
Annualized Forfeiture Rate | 0.00% | ||
Expected Term | 4 years 11 months 16 days | ||
Risk-Free Interest Rate | 1.41% | 1.20% | |
IP Capital Group Inc [Member] | |||
Annualized Forfeiture Rate | |||
Estimated Exercise Factor | $ 4 | ||
Dividends | |||
2011 Private Placement [Member] | |||
Annualized Forfeiture Rate | |||
Estimated Exercise Factor | $ 3.5 | $ 3.5 | |
Dividends | |||
2011 Private Placement [Member] | Minimum [Member] | |||
Estimated Volatility | 104.00% | 91.00% | |
Expected Term | 1 year 7 months 10 days | 2 years 8 months 1 day | |
Risk-Free Interest Rate | 0.26% | 0.41% | |
2011 Private Placement [Member] | Maximum [Member] | |||
Estimated Volatility | 132.00% | 104.00% | |
Expected Term | 8 months 5 days | 1 year 8 months 9 days | |
Risk-Free Interest Rate | 0.47% | 0.56% | |
IP Capital Group Inc [Member] | |||
Annualized Forfeiture Rate | |||
Estimated Exercise Factor | $ 4 | ||
Dividends | |||
IP Capital Group Inc [Member] | Minimum [Member] | |||
Estimated Volatility | 105.00% | 92.00% | |
Expected Term | 1 year 9 months 15 days | 3 years 9 months 15 days | |
Risk-Free Interest Rate | 0.26% | 0.43% | |
IP Capital Group Inc [Member] | Maximum [Member] | |||
Estimated Volatility | 127.00% | 127.00% | |
Expected Term | 9 months 15 days | 1 year 9 months 22 days | |
Risk-Free Interest Rate | 0.54% | 0.61% | |
2014 Private Placement [Member] | |||
Annualized Forfeiture Rate | |||
Estimated Exercise Factor | $ 3.5 | ||
Dividends | |||
2014 Private Placement [Member] | Minimum [Member] | |||
Estimated Volatility | 114.00% | ||
Expected Term | 5 years | ||
Risk-Free Interest Rate | 1.35% | ||
2014 Private Placement [Member] | Maximum [Member] | |||
Estimated Volatility | 157.00% | ||
Expected Term | 4 years 29 days | ||
Risk-Free Interest Rate | 1.69% |
Liability Attributable to War54
Liability Attributable to Warrants - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Other Liabilities Disclosure [Abstract] | |
Warrants liability - December 31, 2014 fair value | $ 647,300 |
Change in fair value of warrant liability recorded in other income | (190,300) |
Change in fair value of warrant liability recorded in general and administrative expense | (18,100) |
Reclassification of 2014 PIPE Warrant to Equity | (407,300) |
Warrants liability – December 31, 2015 fair value | $ 31,600 |
Liability Attributable to War55
Liability Attributable to Warrants - Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - shares | Apr. 11, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Beginning Outstanding | 1,411,619 | 1,111,167 | |||
Issued | 376,667 | ||||
Exercised | (66,667) | ||||
Cancelled / Forfeited | 169,273 | (9,548) | |||
Ending Outstanding | 1,411,619 | 1,411,619 | |||
2011 Transaction [Member] | |||||
Beginning Outstanding | 686,833 | 753,500 | |||
Issued | |||||
Exercised | (66,667) | ||||
Cancelled / Forfeited | |||||
Ending Outstanding | 686,833 | 686,833 | |||
2014 Transaction [Member] | |||||
Beginning Outstanding | 376,667 | ||||
Issued | 376,667 | ||||
Exercised | |||||
Cancelled / Forfeited | |||||
Ending Outstanding | 376,667 | 376,667 | |||
IP Capital Group Inc [Member] | |||||
Beginning Outstanding | 26,667 | 26,667 | |||
Issued | |||||
Exercised | |||||
Cancelled / Forfeited | |||||
Ending Outstanding | 26,667 | 26,667 | |||
Exercise Agreement [Member] | |||||
Beginning Outstanding | 300,000 | 300,000 | |||
Issued | |||||
Exercised | |||||
Cancelled / Forfeited | |||||
Ending Outstanding | 300,000 | 300,000 | |||
Consultant Warrant [Member] | |||||
Beginning Outstanding | [1] | 11,285 | 20,833 | ||
Issued | [1] | ||||
Exercised | [1] | ||||
Cancelled / Forfeited | [1] | (9,548) | |||
Ending Outstanding | 11,285 | 11,285 | [1] | ||
Offer to Exercise [Member] | |||||
Beginning Outstanding | 10,167 | 10,167 | |||
Issued | |||||
Exercised | |||||
Cancelled / Forfeited | |||||
Ending Outstanding | 10,167 | 10,167 | |||
[1] | Effective September 18, 2013, we entered into a consulting agreement with Genesis Select to provide us with a variety of investor relations services. As part of their compensation, we issued to them a warrant to purchase 312,500 shares of our common stock at an exercise price of $0.50 per share. The warrant will vest, monthly, over the initial twelve-month service period of the contract, assuming that the agreement remains in-force, with the first vesting having occurred on October 18, 2013. The warrant is substantially similar in nature to those issued in the warrant amendment, discussed above, thus; the warrant is accounted in equity and is not included as a component of our warrants liability as of December 31, 2013. We used the following assumptions in a binomial pricing model to calculate the fair value of the warrant issued to Genesis: estimated volatility 181%; expected term 4.96 years; estimated exercise factor 4, risk free interest rate 1.41%; and dividends 0. Expense associated with this warrant is recognized as a component of general and administrative expense over the one-year vesting term of the warrant. |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Jul. 24, 2015 | Jan. 07, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 18, 2013 |
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Sale of stock during period | $ 2,105,919 | ||||
Sale of stock price per share | $ 1.21 | $ 0.50 | |||
Sale of stock during period, value | 2,550,500 | ||||
Procceds from private placements | $ 2,550,500 | $ 3,390,000 | |||
Share-based payment award, options, grants in period, gross | |||||
Gross proceeds allocated to warrants liability – investors | $ 1,356,000 | $ (1,356,000) | |||
Share-based compensation arrangement by share-based payment award, options, exercises in period | 6,000 | 17,122 | |||
Proceeds from stock options exercised (in dollars) | $ 4,900 | $ 47,800 | |||
Stock issued during period shares warrants exercised | 66,667 | ||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 3.90 | ||||
Proceeds from warrant exercises (in dollars) | $ 260,000 | ||||
Stock repurchase program, authorized amount (in dollars) | $ 1,000,000 | 1,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount (in dollars) | $ 782,600 | $ 782,600 | |||
Share based compensation arrangement by share based payment award options vested outstanding number | 526,648 | 414,184 | |||
Share-based compensation, shares authorized under stock option plans, exercise price range, number of outstanding options | 705,990 | ||||
Share-based compensation, shares authorized under stock option plans, exercise price range, exercisable options, weighted average exercise price (in dollars per share) | $ 2.63 | ||||
Share-based compensation, shares authorized under stock option plans, exercise price range, outstanding options, weighted average remaining contractual term | 6 years 10 months 13 days | ||||
Share-based compensation arrangement by share-based payment award, options, outstanding, intrinsic value (in dollars) | $ 4,710 | ||||
Share based compensation arrangement by share based payment award options expected to vest outstanding number | 178,114 | ||||
Share based compensation arrangement by share based payment award options expected to be forfeited | 1,228 | ||||
Employee service share-based compensation, nonvested awards, compensation not yet recognized, stock options (in dollars) | $ 165,200 | ||||
Share-based compensation arrangement by share-based payment award, award vesting period | 33 months | ||||
Chief Financial Officer [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Share-based payment award, options, grants in period, gross | 57,911 | ||||
Weighted average exercise price | $ 1.80 | ||||
Employees [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Share-based payment award, options, grants in period, gross | 3,333 | ||||
Weighted average exercise price | $ 1.95 | ||||
Directors [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Share-based payment award, options, grants in period, gross | 160,000 | ||||
Weighted average exercise price | $ 2.40 | ||||
All Stock Option Plans [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Share-based payment award, options, grants in period, gross | 57,911 | ||||
Weighted average exercise price | $ 1.80 | ||||
Share-based compensation arrangement by share-based payment award, options, exercises in period | 17,121 | ||||
Share-based compensation arrangements by share-based payment award, options, exercises in period, weighted average exercise price (in dollars per share) | $ 2.85 | ||||
Proceeds from stock options exercised (in dollars) | $ 3,187 | ||||
2012 Equity Incentive Plan [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 643,797 | ||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 189,609 | ||||
2014 Private Placement [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Sale of stock price per share | $ 4.50 | ||||
Common stock issued for cash | 753,333 | ||||
Procceds from private placements | $ 3,390,000 | ||||
Gross proceeds allocated to warrants liability – investors | $ 1,356,000 | ||||
Restricted Stock [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Fair market value range | $ 2.35 | $ 2.46 | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 15,000 | 291,467 | |||
Awards estimated to be released in future periods | 77,062 | ||||
Awards estimated to be forfeited in future periods | 29,524 | ||||
Aggregate fair market value of unreleased stock awards (in dollars) | $ 95,900 | ||||
Closing price of common stock (in dollars per share) | $ 0.90 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $ 213,000 | ||||
Restricted Stock [Member] | Employees [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Non option granted | 15,000 | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 291,300 | ||||
Restricted Stock [Member] | Consultants [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Fair market value range | $ 3 | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 0 | 167 | |||
Restricted Stock [Member] | Minimum [Member] | Employees [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Fair market value range | $ 1.95 | $ 1.65 | |||
Restricted Stock [Member] | Maximum [Member] | Employees [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Fair market value range | $ 2.40 | 5.10 | |||
Restricted Stock [Member] | 2012 Equity Incentive Plan [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 15,000 | ||||
Restricted Stock [Member] | 2012 Equity Incentive Plan [Member] | Minimum [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 100.00% | ||||
Options Repriced From 37 Cents To 16 Cents Per Share [Member] | Two Directors [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Weighted average exercise price | $ 5.55 | ||||
Options to purchase common stock, number repriced | 20,000 | ||||
Options to purchase common stock, exercise price after repricing (in dollars per share) | $ 2.40 | ||||
Options Repriced From 37 Cents To 12 Cents Per Share [Member] | Two Directors [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Weighted average exercise price | $ 5.55 | ||||
Options to purchase common stock, number repriced | 46,667 | ||||
Options to purchase common stock, exercise price after repricing (in dollars per share) | $ 1.80 | ||||
Incentive Stock Options [Member] | 2012 Equity Incentive Plan [Member] | Minimum [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 100.00% | ||||
Incentive Stock Options [Member] | 2012 Equity Incentive Plan [Member] | Minimum [Member] | If Recipient Owns Greater Than Ten Percentf Voting Power [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 110.00% | ||||
Non Qualified Stock Options [Member] | 2012 Equity Incentive Plan [Member] | Minimum [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 100.00% |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stockholders Equity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | ||
Gross cash proceeds | $ 2,550,500 | $ 3,390,000 |
Less: gross proceeds allocated to warrants liability – investors | (1,356,000) | $ 1,356,000 |
Gross proceeds allocated to additional paid-in capital and common stock | 2,034,000 | |
Less: cash issuance costs – legal fees | (20,000) | |
Recorded in additional paid-in capital and common stock | $ 2,014,000 |
Stockholders' Equity - Schedu58
Stockholders' Equity - Schedule of Share-based Compensation, Activity (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 9 - Stockholders' Equity (Details) - Summary of Inactive Plans [Line Items] | ||
Options Outstanding, Balance | 447,666 | 706,421 |
Options Outstanding, Granted | ||
Options Outstanding, Exercised | (6,000) | (17,122) |
Options Outstanding, Cancelled | (31,788) | (241,633) |
Options Outstanding, Balance | 409,878 | 447,666 |
2008 Equity Incentive Plan [Member] | ||
Note 9 - Stockholders' Equity (Details) - Summary of Inactive Plans [Line Items] | ||
Options Outstanding, Balance | 430,000 | |
Options Outstanding, Granted | ||
Options Outstanding, Exercised | (6,000) | |
Options Outstanding, Cancelled | (28,455) | |
Options Outstanding, Balance | 395,545 | 430,000 |
2005 Stock Option Plan [Member] | ||
Note 9 - Stockholders' Equity (Details) - Summary of Inactive Plans [Line Items] | ||
Options Outstanding, Balance | 17,333 | 64,833 |
Options Outstanding, Granted | ||
Options Outstanding, Exercised | (667) | |
Options Outstanding, Cancelled | (3,333) | (46,833) |
Options Outstanding, Balance | 14,000 | 17,333 |
Supplemental Stock Option Agreement [Member] | ||
Note 9 - Stockholders' Equity (Details) - Summary of Inactive Plans [Line Items] | ||
Options Outstanding, Balance | 333 | |
Options Outstanding, Granted | ||
Options Outstanding, Exercised | ||
Options Outstanding, Cancelled | ||
Options Outstanding, Balance | 333 | 333 |
2008 Stock Option Plan [Member] | ||
Note 9 - Stockholders' Equity (Details) - Summary of Inactive Plans [Line Items] | ||
Options Outstanding, Balance | 430,000 | 641,255 |
Options Outstanding, Exercised | (16,455) | |
Options Outstanding, Cancelled | (194,800) | |
Options Outstanding, Balance | 430,000 | |
1998 Stock Option/Stock Issuance Plan [Member] | ||
Note 9 - Stockholders' Equity (Details) - Summary of Inactive Plans [Line Items] | ||
Options Outstanding, Balance | 333 | 333 |
Options Outstanding, Exercised | ||
Options Outstanding, Balance | 333 |
Stockholders' Equity - Schedu59
Stockholders' Equity - Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 9 - Stockholders' Equity (Details) - Summary of Status of All Stock Option Plans [Line Items] | ||
Options Outstanding, Balance | 447,666 | 706,421 |
Options Outstanding, Granted | ||
Options Outstanding, Exercised | (6,000) | (17,122) |
Options Outstanding, Balance | 409,878 | 447,666 |
Stock Option Plans [Member] | ||
Note 9 - Stockholders' Equity (Details) - Summary of Status of All Stock Option Plans [Line Items] | ||
Options Outstanding, Balance | 685,867 | 801,289 |
Options Outstanding, Granted | 57,911 | 230,000 |
Options Outstanding, Exercised | (6,000) | (17,121) |
Options Outstanding, Forfeited or expired | (31,788) | (328,301) |
Options Outstanding, Balance | 705,990 | 685,867 |
Options Outstanding, Exercisable at year-end | 705,990 | 685,867 |
Options Outstanding, Vested or expected to vest at year-end | 704,763 | 676,299 |
Weighted Average Exercise Price, Outstanding Balance | $ 2.70 | $ 3.15 |
Weighted Average Exercise Price, Granted | 1.80 | 2.10 |
Weighted Average Exercise Price, Exercised | 0.79 | 2.85 |
Weighted Average Exercise Price, Exercisable at year-end | 3.26 | 3.60 |
Weighted Average Exercise Price, Forfeited or expired | 2.63 | 2.70 |
Weighted Average Exercise Price, Vested or expected to vest at year-end | 2.63 | 2.70 |
Weighted Average Exercise Price, Outstanding Balance | 2.64 | 2.70 |
Weighted average fair value of options granted during the period | $ 2.63 | $ 2.70 |
Stockholders' Equity - Schedu60
Stockholders' Equity - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number (in Shares) | shares | 705,990 |
Options Exercisable, Weighted Average Exercise Price | $ 2.63 |
Exercise Price Range 1 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 0.75 |
Exercise Price Range, Upper Range Limit | $ 1.80 |
Options Outstanding, Number (in Shares) | shares | 104,111 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 1 month 6 days |
Options Outstanding, Exercise Price | $ 1.35 |
Options Exercisable, Number Exercisable (in Shares) | shares | 58,789 |
Options Exercisable, Weighted Average Exercise Price | $ 1.01 |
Exercise Price Range 2 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 1.82 |
Exercise Price Range, Upper Range Limit | $ 1.82 |
Options Outstanding, Number (in Shares) | shares | 93,333 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 5 months 1 day |
Options Outstanding, Exercise Price | $ 1.82 |
Options Exercisable, Number Exercisable (in Shares) | shares | 37,475 |
Options Exercisable, Weighted Average Exercise Price | $ 1.82 |
Exercise Price Range 3 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 2.06 |
Exercise Price Range, Upper Range Limit | $ 2.40 |
Options Outstanding, Number (in Shares) | shares | 73,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 8 months 1 day |
Options Outstanding, Exercise Price | $ 2.28 |
Options Exercisable, Number Exercisable (in Shares) | shares | 70,778 |
Options Exercisable, Weighted Average Exercise Price | $ 2.29 |
Exercise Price Range 4 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 2.48 |
Exercise Price Range, Upper Range Limit | $ 2.48 |
Options Outstanding, Number (in Shares) | shares | 7,333 |
Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 15 days |
Options Outstanding, Exercise Price | $ 2.48 |
Options Exercisable, Number Exercisable (in Shares) | shares | 7,333 |
Options Exercisable, Weighted Average Exercise Price | $ 2.48 |
Exercise Price Range 5 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 2.54 |
Exercise Price Range, Upper Range Limit | $ 2.54 |
Options Outstanding, Number (in Shares) | shares | 113,333 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 11 months 1 day |
Options Outstanding, Exercise Price | $ 2.54 |
Options Exercisable, Number Exercisable (in Shares) | shares | 37,778 |
Options Exercisable, Weighted Average Exercise Price | $ 2.54 |
Exercise Price Range 6 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 2.55 |
Exercise Price Range, Upper Range Limit | $ 3 |
Options Outstanding, Number (in Shares) | shares | 80,667 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 15 days |
Options Outstanding, Exercise Price | $ 2.71 |
Options Exercisable, Number Exercisable (in Shares) | shares | 80,667 |
Options Exercisable, Weighted Average Exercise Price | $ 2.71 |
Exercise Price Range 7 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 3.03 |
Exercise Price Range, Upper Range Limit | $ 3.30 |
Options Outstanding, Number (in Shares) | shares | 45,600 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 3 months 26 days |
Options Outstanding, Exercise Price | $ 3.08 |
Options Exercisable, Number Exercisable (in Shares) | shares | 45,600 |
Options Exercisable, Weighted Average Exercise Price | $ 3.08 |
Exercise Price Range 8 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 3.45 |
Exercise Price Range, Upper Range Limit | $ 3.45 |
Options Outstanding, Number (in Shares) | shares | 106,412 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 9 months 29 days |
Options Outstanding, Exercise Price | $ 3.45 |
Options Exercisable, Number Exercisable (in Shares) | shares | 106,412 |
Options Exercisable, Weighted Average Exercise Price | $ 3.45 |
Exercise Price Range 9 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 4.20 |
Exercise Price Range, Upper Range Limit | $ 44.20 |
Options Outstanding, Number (in Shares) | shares | 80,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 8 months 9 days |
Options Outstanding, Exercise Price | $ 4.20 |
Options Exercisable, Number Exercisable (in Shares) | shares | 80,000 |
Options Exercisable, Weighted Average Exercise Price | $ 4.20 |
Exercise Price Range 10 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 5.70 |
Exercise Price Range, Upper Range Limit | $ 6.88 |
Options Outstanding, Number (in Shares) | shares | 2,201 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 11 months 19 days |
Options Outstanding, Exercise Price | $ 6.38 |
Options Exercisable, Number Exercisable (in Shares) | shares | 1,816 |
Options Exercisable, Weighted Average Exercise Price | $ 6.32 |
Exercise Price Range 11 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 0.75 |
Exercise Price Range, Upper Range Limit | $ 6.68 |
Options Outstanding, Number (in Shares) | shares | 705,990 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 10 months 13 days |
Options Outstanding, Exercise Price | $ 2.63 |
Options Exercisable, Number Exercisable (in Shares) | shares | 526,648 |
Options Exercisable, Weighted Average Exercise Price | $ 2.81 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Status and Activity of Restricted Stock Awards (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares Unreleased, Beginning Balance | 287,666 | 262,562 |
Number of Shares Awarded | 15,000 | 291,467 |
Number of Shares Released | (116,500) | (98,319) |
Number of Shares Forfeited | (79,580) | (168,044) |
Number of Shares Outstanding, Ending Balance | 106,586 | 287,666 |
Weighted Average Grant Date Fair Value Beginning Balance | $ 2.70 | $ 4.20 |
Weighted Average Grant Date Fair Value Awarded | 2.35 | 2.46 |
Weighted Average Grant Date Fair Value Released | 3.09 | 3.75 |
Weighted Average Grant Date Fair Value Forfeited | 2.42 | 3.75 |
Weighted Average Grant Date Fair Value Ending Balance | $ 2.31 | $ 2.70 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 10 - Income Taxes (Details) [Line Items] | ||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ (1,469,900) | $ (1,530,100) |
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 34.00% | 34.00% |
Percentage of meals and entertainment | 50.00% | |
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | ||
Note 10 - Income Taxes (Details) [Line Items] | ||
Operating loss carryforwards | $ 61,000,000 | |
Operating loss expiration date | expire in 2018 | |
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | ||
Note 10 - Income Taxes (Details) [Line Items] | ||
Tax credit carryforward, amount | $ 1,000,000 | |
California Franchise Tax Board [Member] | State and Local Jurisdiction [Member] | ||
Note 10 - Income Taxes (Details) [Line Items] | ||
Operating loss carryforwards | $ 7,300,000 | |
Operating loss expiration date | expire in 2014 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Provision (Benefit) for Income Taxes [Abstract] | ||
Federal | ||
State | ||
Foreign | $ 3,700 | $ 3,100 |
Current income tax expens | $ 3,700 | $ 3,100 |
Federal | ||
State | ||
Foreign | ||
Deferred tax | ||
Total | $ 3,700 | $ 3,100 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Differences Between Effective Income Tax Rate and Statutory Federal Tax Rate [Abstract] | ||
Federal income tax (benefit) at statutory rate | $ (1,491,600) | $ (1,217,600) |
State income tax (benefit) at statutory rate | (8,100) | (5,600) |
Foreign tax rate differential | 700 | 5,100 |
Compensation from exercise of non-qualified stock options and restricted stock awards | 3,400 | 2,100 |
SBC – NQ cancellations | 23,500 | 151,500 |
Change in valuation allowance | 1,469,900 | 1,530,100 |
Warrant liability | (65,100) | (548,400) |
Meals and entertainment (50%) | 7,700 | 11,600 |
Tax rate changes | (2,500) | (1,000) |
Other items | 65,800 | 75,300 |
Provision (benefit) for income tax | $ 3,700 | $ 3,100 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Income Taxes and Benefits [Abstract] | ||
Net operating loss carryforwards | $ 21,032,900 | $ 19,483,000 |
Tax credit carryforwards | 1,047,300 | 1,047,000 |
Depreciation and amortization | (20,400) | 55,000 |
Compensation expense – non-qualified stock options | 729,500 | 588,000 |
Deferred revenue and maintenance service contracts | 1,344,400 | 1,541,000 |
Warrant liability | 800 | 7,000 |
Reserves and other | 157,300 | 217,000 |
Total deferred tax assets | 24,291,800 | 22,938,000 |
Deferred tax liability – capitalized software | (3,900) | (120,000) |
Net deferred tax asset | 24,287,900 | 22,818,000 |
Valuation allowance | $ (24,287,900) | (22,818,000) |
Net deferred tax asset | $ 0 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details Narrative) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Risks and Uncertainties [Abstract] | ||
Cash, Uninsured Amount | $ 1,559,900 | $ 1,316,600 |
Concentration of Credit Risk -
Concentration of Credit Risk - Schedules of Concentration of Risk, by Risk Factor (Details) - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 46.40% | 25.60% |
Sales Revenue, Net [Member] | Centric Systems [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 5.00% | 4.30% |
Sales Revenue, Net [Member] | Elosoft [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 10.90% | 5.70% |
Sales Revenue, Net [Member] | IDS LLC [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 5.80% | 4.20% |
Sales Revenue, Net [Member] | KitASP [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 3.80% | 1.80% |
Sales Revenue, Net [Member] | Raytheon [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 9.40% | 1.10% |
Sales Revenue, Net [Member] | Thermo Lab Systems [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 2.90% | 4.40% |
Sales Revenue, Net [Member] | Uniface [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 5.30% | 2.00% |
Sales Revenue, Net [Member] | Xerox [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 3.30% | 2.10% |
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 63.00% | 18.10% |
Accounts Receivable [Member] | Centric Systems [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 13.20% | 3.20% |
Accounts Receivable [Member] | Elosoft [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 14.80% | 6.90% |
Accounts Receivable [Member] | IDS LLC [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 0.00% | 0.40% |
Accounts Receivable [Member] | KitASP [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 16.10% | 0.00% |
Accounts Receivable [Member] | Raytheon [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 1.60% | 0.00% |
Accounts Receivable [Member] | Thermo Lab Systems [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 7.80% | 6.80% |
Accounts Receivable [Member] | Uniface [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 1.90% | 0.80% |
Accounts Receivable [Member] | Xerox [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 7.60% | 0.00% |
Commitments and Contingencies68
Commitments and Contingencies (Details Narrative) | Feb. 01, 2014ft² | Aug. 21, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Rent expense | $ 396,400 | $ 477,940 | ||
Mr.Eilam [Member] | ||||
Annual base salary | $ 275,000 | |||
Eligibllity for bonus | 75,000 | |||
Minimum death benefit amount | $ 1,000,000 | |||
Campbell Facility [Member] | ||||
Lease square feet | ft² | 10,659 | |||
Lease term | 5 years | |||
Lease expire date | 2018-10 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) | Dec. 31, 2015USD ($) |
Commitments And Contingencies - Schedule Of Future Minimum Lease Payments Details | |
2,016 | $ 111,100 |
2,017 | 114,300 |
2,018 | 68,300 |
Total | $ 293,700 |
Employee 401(k) Plan (Details N
Employee 401(k) Plan (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 15.00% | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 44,000 | $ 60,200 |
Supplemental Disclosure of Ca71
Supplemental Disclosure of Cash Flow Information (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 14 - Supplemental Disclosure of Cash Flow Information (Details) [Line Items] | ||
Warrants liability, period increase (decrease) | $ 615,700 | $ 332,500 |
Fair value adjustment of warrants | (190,300) | (1,624,300) |
Issuance cost | 116,400 | |
Cash disbursed | 30,000 | |
Prepaid expense and other assets noncurrent | 40,700 | |
Employee service share-based compensation, allocation of recognized period costs, capitalized amount | 0 | 0 |
Deferred rent, long term | 26,700 | 158,200 |
Deferred rent, current | 21,000 | 44,500 |
Proceeds from issuance of warrants | (1,356,000) | 1,356,000 |
Capital lease obligations | 22,900 | |
General and Administrative Expense [Member] | ||
Note 14 - Supplemental Disclosure of Cash Flow Information (Details) [Line Items] | ||
Fair value adjustment of warrants | (18,100) | (64,200) |
Accounts Payable and Accrued Liabilities [Member] | ||
Note 14 - Supplemental Disclosure of Cash Flow Information (Details) [Line Items] | ||
Capitalized cost of property and equipment | 61,000 | |
Deferred Rent [Member] | ||
Note 14 - Supplemental Disclosure of Cash Flow Information (Details) [Line Items] | ||
Capitalized cost of property and equipment | 106,600 | |
Deferred rent, long term | 22,400 | |
Deferred rent, current | 84,200 | |
Capitalized Software [Member] | ||
Note 14 - Supplemental Disclosure of Cash Flow Information (Details) [Line Items] | ||
Capital lease obligations incurred | $ 182,400 | 24,900 |
Capitalized Software [Member] | Capitalized Computer Software Net [Member] | ||
Note 14 - Supplemental Disclosure of Cash Flow Information (Details) [Line Items] | ||
Capital lease obligations incurred | 16,500 | |
Prepaid Expense [Member] | Capitalized Computer Software Net [Member] | ||
Note 14 - Supplemental Disclosure of Cash Flow Information (Details) [Line Items] | ||
Capital lease obligations incurred | $ 8,400 |
Supplemental Disclosure of Ca72
Supplemental Disclosure of Cash Flow Information - Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Supplemental Cash Flow Elements [Abstract] | |||
Income Taxes | [1] | $ 4,400 | $ 3,400 |
Interest | |||
[1] | All such disbursements were for the payment of foreign income taxes. |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | Feb. 04, 2013 | Dec. 31, 2015USD ($)Installmentsshares | Dec. 31, 2014USD ($)$ / sharesshares |
Note 15 - Related Party Transactions (Details) [Line Items] | |||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ / shares | $ 3.90 | ||
Fair value adjustment of warrants | $ | $ (190,300) | $ (1,624,300) | |
ip Capital Licensing Company ILLC [Member] | |||
Note 15 - Related Party Transactions (Details) [Line Items] | |||
Percentage of royalty fees and other consideration paid as fees | 10.00% | ||
Period of agreement | 18 months | ||
Number of days of written notice of termination | 60 days | ||
General and Administrative Expense [Member] | |||
Note 15 - Related Party Transactions (Details) [Line Items] | |||
Fair value adjustment of warrants | $ | $ (18,100) | $ (64,200) | |
IP Capital Group Inc [Member] | |||
Note 15 - Related Party Transactions (Details) [Line Items] | |||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 26,667 | ||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ / shares | $ 3.90 | ||
Number of vesting installments | Installments | 3 | ||
Number of warrants to vest (in shares) | 13,333 | ||
Remaining warrants to vest (in shares) | 13,333 |
Segment Information (Details Na
Segment Information (Details Narrative) | 12 Months Ended |
Dec. 31, 2015Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Revenue by Country (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue by Country | $ 4,981,000 | $ 5,553,400 |
United States [Member] | ||
Revenue by Country | 2,267,600 | 2,501,800 |
Brazil [Member] | ||
Revenue by Country | 666,400 | 669,100 |
Other Countries [Member] | ||
Revenue by Country | $ 2,047,000 | $ 2,382,500 |
Subsequent Event (Details Narra
Subsequent Event (Details Narrative) | Jan. 27, 2016 | Dec. 31, 2015 |
Reverse stock split | 1-for-15 | |
Subsequent Event [Member] | ||
Reverse stock split | 1-for-15 |