Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 15-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | Axion Power International, Inc. | |
Entity Central Index Key | 1028153 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | AXPW | |
Entity Common Stock, Shares Outstanding | 93,959,709 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $2,218,377 | $3,436,198 |
Accounts receivable, net | 29,476 | 9,874 |
Other current assets | 171,734 | 193,974 |
Inventory, net | 1,061,907 | 1,136,948 |
Total current assets | 3,481,494 | 4,776,994 |
Property & equipment, net | 1,994,004 | 2,072,530 |
Total assets | 5,475,498 | 6,849,524 |
Liabilities and stockholders' equity | ||
Accounts payable | 292,266 | 335,936 |
Other liabilities | 456,969 | 293,172 |
Note payable | 104,777 | 104,777 |
Accrued interest convertible notes | 16,995 | 15,628 |
Subordinated convertible notes | 65,000 | 65,000 |
Total current liabilities | 936,007 | 814,513 |
Deferred revenue | 55,871 | 55,871 |
Note payable | 75,533 | 104,804 |
Derivative liability Series B warrants | 951,535 | 2,930,335 |
Total liabilities | 2,018,946 | 3,905,523 |
Stockholders' equity | ||
Convertible preferred stock - 12,500,000 shares authorized Series A preferred - 2,000,000 shares designated 0 shares issued and outstanding | ||
Common stock - 100,000,000 shares authorized $0.005 par value 34,457,638 issued and outstanding (7,238,293 in 2014) | 172,288 | 36,191 |
Additional paid in capital | 119,709,710 | 118,415,884 |
Retained earnings (deficit) | -116,173,834 | -115,256,461 |
Cumulative foreign currency translation adjustment | -251,612 | -251,613 |
Total stockholders' equity | 3,456,552 | 2,944,001 |
Total liabilities & stockholders' equity | $5,475,498 | $6,849,524 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Convertible preferred stock, shares authorized | 12,500,000 | 12,500,000 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares issued | 34,457,638 | 7,238,293 |
Common stock, shares outstanding | 34,457,638 | 7,238,293 |
Series A Preferred Stock [Member] | ||
Convertible Preferred Stock, Shares Issued | 0 | 0 |
Convertible Preferred Stock, Shares Outstanding | 0 | 0 |
Preferred Stock Shares Designated | 2,000,000 | 2,000,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE LOSS (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | ||
Net sales | $250,046 | $2,314,300 |
Cost of tangible goods sold | 217,672 | 2,352,636 |
Cost of goods sold - idle capacity | 487,328 | 437,257 |
Gross loss | -454,954 | -475,593 |
Research and development expense | 276,255 | 443,926 |
Selling, general and administrative expense | 826,213 | 1,113,597 |
Other (income) | -7 | -43,791 |
Operating loss | -1,557,415 | -1,989,325 |
Change in value of senior warrants | 2,419,355 | |
Change in value conversion feature senior notes | -32 | |
Change in value of Series B warrants | -668,536 | |
Debt discount amortization expense | 809,334 | |
Interest expense, note payable | 3,296 | 5,359 |
Extinguishment loss on senior notes conversion | 834,000 | |
Placement agent warrant expense | 23,826 | |
Interest on convertible notes | 1,367 | 454,963 |
Loss before income taxes | -917,368 | -6,512,304 |
Income taxes | ||
Net loss | -917,368 | -6,512,304 |
Foreign translation adjustment | 1 | -1 |
Comprehensive (loss) | ($917,367) | ($6,512,305) |
Basic and diluted net loss per share | ($0.07) | ($0.03) |
Weighted average common shares outstanding | 12,257,388 | 4,025,484 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Operating Activities | ||
Net Loss | ($917,368) | ($6,512,304) |
Adjustments to reconcile net loss to net cash (used in) operating activities: | ||
Depreciation expense | 78,524 | 371,870 |
Change in value of Series B warrants | -668,536 | |
Change in value senior warrants | 2,419,355 | |
Change in value conversion feature senior notes | -32 | |
Debt discount amortization expense | 742,404 | |
Interest accrued, senior convertible notes paid in common stock | 434,963 | |
Extinguishment loss on senior notes conversions | 834,000 | |
Placement agent warrants | 23,826 | |
Amortization deferred financing fees | 66,930 | |
Stock based compensation expense | 108,071 | 37,905 |
Changes in operating assets & liabilities | ||
Accounts receivable, net | -19,604 | 304,442 |
Other current assets | 22,241 | 54,087 |
Inventory, net | 75,041 | -291,734 |
Accounts payable | -43,670 | 66,809 |
Other current liabilities | 151,558 | -166,123 |
Accrued interest | 1,367 | 20,000 |
Deferred revenue | -100,162 | |
Net cash (used in) operating activities | -1,188,550 | -1,717,590 |
Investing Activities | ||
Other receivables | 3,000 | |
Capital expenditures | -30,294 | |
Net cash (used in) investing activities | -27,294 | |
Financing Activities | ||
Repayment of note payable | -29,272 | -28,407 |
Change in restricted cash | 2,213,663 | |
Net cash (used in) provided by financing activities | -29,272 | 2,185,256 |
Net change in cash and cash equivalents | -1,217,822 | 440,372 |
Effect of exchange rate on cash | 1 | -1 |
Cash and cash equivalents - beginning | 3,436,198 | 1,169,093 |
Cash and cash equivalents - ending | 2,218,377 | 1,609,466 |
Supplemental Schedule of Non Cash Investing and Financing Activities: | ||
Common stock issued for principal payments on senior notes: | 2,335,000 | |
Placement agent warrants | 23,826 | |
Common stock issued for warrants exercised | 136,097 | |
Reclassification of derivative liability for warrants exercised | $1,310,264 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |
Mar. 31, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis Of Presentation And Recent Accounting Pronouncements [Text Block] | 1 | Basis of Presentation |
These unaudited consolidated financial statements of Axion Power International, Inc., a Delaware corporation, include the operations of its wholly owned subsidiaries; Axion Power Battery Manufacturing, Inc., Axion Power Corporation, a Canadian Federal corporation , and C & T Co. Inc., an Ontario corporation (collectively, the “Company”). | ||
On July 7, 2014 our shareholders approved a reverse stock split of our common stock, in a ratio determined by our board of directors, of not less than 1-for-20 not more than 1-for-50. A 1-for-50 stock split was effected and started trading giving effect to the reverse split on September 8, 2014. | ||
During 2014 there were 244,537 true-up rounding shares issued due to the above mentioned reverse stock split. | ||
In the opinion of management the accompanying unaudited consolidated financial statements contain all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position, results of operations and comprehensive loss and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission (SEC). These consolidated financial statements should be read in conjunction with the audited financial statements and footnotes thereto in the Axion Power International, Inc. Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the three month period ended March 31, 2015 are not necessarily indicative of results of operations for the Company’s 2015 calendar year. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended | |
Mar. 31, 2015 | ||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 2 | New Accounting Pronouncements |
In August 2014, the FASB issued Accounting standards Update No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 will require management to evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern for one year from the date the financial statements are issued. The effective date was delayed until annual periods ending after December 15, 2016 to allow the auditing guidance to catch up with this change. ASU No. 2014-15 affects all companies and nonprofits and early application is allowed. We intend to evaluate the impact of our pending adoption of ASU 2014-15 on our consolidated financial statements. | ||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP. | ||
The aforementioned standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We intend to evaluate the impact of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017. | ||
In June 2014, the FASB issued ASU 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU 2014-12 requires a performance target that affects vesting and that can be achieved after the requisite service period to be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. ASU 2014-12 will be effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, and can be applied either prospectively to new or modified awards or retrospectively to awards outstanding as of the beginning of the earliest annual period presented and to all new or modified awards thereafter. The Company has not yet selected a transition method and will evaluate the impact of the adoption of this standard on the Company’s financial statements. | ||
In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, which changed the requirements for reporting extraordinary and unusual items in the income statement. The update eliminates the concept of extraordinary items. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. A reporting entity may apply the amendments prospectively or retrospectively to all periods presented in the financial statements. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this newly issued guidance is not expected to have an impact to the Company’s consolidated financial statements. | ||
In February 2015, the FASB issued ASU 2015-02, Consolidations (Topic 225-20): Amendments to the Consolidation Analysis, which affects current consolidation guidance. The guidance changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance must be applied using one of two retrospective application methods and will be effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in any interim period. The Company is currently evaluating the impact, if any, of the adoption of this newly issued guidance to its consolidated financial statements. | ||
In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Topic 225-20): Simplifying the Presentation of Debt Issue Costs, that simplifies the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by these amendments. This guidance should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The guidance will be effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company is currently evaluating the impact, if any, of the adoption of this newly issued guidance to its consolidated financial statements. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventory Disclosure [Text Block] | 3 | Inventories | |||||||
Inventories consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 512,115 | $ | 601,196 | |||||
Work in process | 156 | 639,957 | |||||||
Finished goods | 734,104 | 80,263 | |||||||
Inventory reserves | (184,468 | ) | (184,468 | ) | |||||
$ | 1,061,907 | $ | 1,136,948 |
Warrants
Warrants | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Warrants and Rights Note Disclosure [Abstract] | |||||||||||||
Warrants Disclosure [Text Block] | 4 | Warrants | |||||||||||
Warrants consist of the following: | |||||||||||||
Shares | Weighted | Weighted average | |||||||||||
average | remaining contract | ||||||||||||
exercise price | term (years) | ||||||||||||
Outstanding at January 1, 2015 | 4,502,193 | $ | 3.45 | 5 | |||||||||
Granted | 107,812 | 4.26 | 5 | ||||||||||
Exercised | (1,108,303 | ) | - | - | |||||||||
Outstanding at March 31, 2015 | 3,501,702 | $ | 3.53 | 4.6 | |||||||||
As of March 31, 2015 there were 1,047,947 Series B warrants classified as derivative liabilities relating to the public common stock offering that occurred on October 29, 2014. Each reporting period the Series B warrants are re-valued and adjusted through the captions “change in value of Series B warrants,” on the consolidated statements of operations and comprehensive loss. |
Equity_Compensation
Equity Compensation | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Shareholders Equity and Share-based Payments [Text Block] | 5 | Equity Compensation | |||||||||||||||||||
The Company adopted ASC 718 “Compensation – Stock Compensation” whereby employee-compensation expense related to stock based payments is recorded over the requisite service period based on the grant date fair value of the awards. The Company’s accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of ASC 505-50 “Equity-Based Payments to Non-Employees”. The measurement date for fair value of the equity instruments is determined by the earlier of (i) the date at which commitment for performance by the vendor or consultant is reached, or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. | |||||||||||||||||||||
The stock based compensation expense was $108,071 and $37,905 of which $12,240 and $26,504 was for Director’s compensation in lieu of cash, for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||
Outstanding compensatory options consist of the following based on grant date: | |||||||||||||||||||||
Weighted Average | |||||||||||||||||||||
Number of | Exercise | Fair | Remaining | Aggregate | |||||||||||||||||
Options | Value | Life | Intrinsic | ||||||||||||||||||
(years) | Value | ||||||||||||||||||||
Outstanding at January 1, 2015 | 135,537 | $ | 39.48 | $ | 14.44 | 3.8 | $ | - | |||||||||||||
Granted | 446,800 | 1 | 0.43 | 5.4 | - | ||||||||||||||||
Forfeited or lapsed | (38,725 | ) | 11.68 | 5.39 | - | - | |||||||||||||||
Outstanding at March 31, 2015 | 543,612 | $ | 9.83 | $ | 3.53 | 5.5 | $ | - | |||||||||||||
Exercisable at March 31, 2015 | 357,489 | $ | 14.37 | $ | 5.02 | 4.8 | $ | - | |||||||||||||
All non-vested compensatory options consist of the following: | |||||||||||||||||||||
All Options | |||||||||||||||||||||
Shares | Fair Value | ||||||||||||||||||||
Subject to future vesting at January 1, 2015 | 42,553 | $ | 4.43 | ||||||||||||||||||
Granted | 446,800 | 0.43 | |||||||||||||||||||
Forfeited or lapsed | (37,000 | ) | 4.02 | ||||||||||||||||||
Vested | (266,230 | ) | 0.32 | ||||||||||||||||||
Subject to future vesting at March 31, 2015 | 186,123 | $ | 0.69 | ||||||||||||||||||
As of March 31, 2015, there was $48,447 of unrecognized compensation related to non-vested options granted under the plans. The Company expects to recognize this expense over a weighted average period of 4.8 years. There were 265,000 options granted valued using Black Scholes Merton with the following assumptions: (i) volatility of 71.1%. (ii) risk free interest rate of 0.85%, (iii) dividend rate of zero, (iv) expected life 5 years, and (v) exercise price of $1.00. In addition, 181,800 options granted were valued using Black Scholes Merton with the following assumptions: (i) volatility of 186.0%, (ii) risk free interest rate of 1.10%, (iii) dividend rate of zero, (iv) expected life 5 years, and (v) exercise price of $1.00. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 3 Months Ended | |
Mar. 31, 2015 | ||
Earnings Per Share [Abstract] | ||
Earnings Per Share [Text Block] | 6 | Earnings (Loss) Per Share |
Basic earnings per share is computed by dividing income available to common shareholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. Diluted earnings per share are computed by assuming that any dilutive convertible securities outstanding were converted, with related preferred stock dividend requirements and outstanding common shares adjusted accordingly. It also assumes that outstanding common shares were increased by shares issuable upon exercise of those stock options for which the market price exceeds the exercise price, less shares which could have been purchased by us with the related proceeds. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive. | ||
If the Company had generated earnings during the three months ended March 31, 2015 and 2014, the Company would have added 2,816,168 and 172,168 respectively, of common equivalent shares to the weighted average shares outstanding to compute the diluted weighted average shares outstanding, excluding the unexercised Series B warrants. The Company had unexercised Series B warrants of 1,047,947 outstanding at March 31, 2015. Series B warrants of 438,501 were exercised from April 1, 2015 through April 16, 2015 that resulted in the issuance of 59,493,922 shares of the Company’s common stock. The remaining outstanding unexercised 609,446 Series B warrants would have added 23,999,983 common shares as permitted by the Amendment approved to the original Warrant Agreement for Series B warrants - see Footnote 10 - Subsequent events. If the Company had generated earnings during the three months ended March 31, 2015, the Series B warrants would have added 83,443,905 of common stock equivalent shares to the weighted average shares outstanding to compute the diluted weighted shares outstanding. |
Senior_Convertible_Notes_and_W
Senior Convertible Notes and Warrants, and Subordinated Notes and Warrants | 3 Months Ended | ||
Mar. 31, 2015 | |||
Debt Disclosure [Abstract] | |||
Debt Disclosure [Text Block] | 7 | Senior Convertible Notes and Warrants, and Subordinated Notes and Warrants | |
On May 8, 2013, the Company consummated the sale of $9 million in aggregate principal amount of senior convertible notes (the “Senior Notes”) due on February 8, 2015 and warrants (the “Senior Warrants”) to various institutional investors (“Investors”). At closing, the Company received $2.76 million in net proceeds, after deducting placement agent fees of $240,000. Total offering expenses were $494,500 and were recorded as deferred financing fees. The $6,000,000 balance of the gross proceeds from the sale of Senior Notes was deposited into a series of control accounts in the Company’s name. The Senior Notes and Senior Warrants and the Subordinated Notes and Subordinated Warrants described below were issued in transactions exempt from registration under Section 4(2) of the Securities Act of 1933, as amended. As of the end of the second quarter, 2014, all of the proceeds have been released, and the note holders have converted all amounts due under the note into shares of the Company’s common stock. | |||
During the three month period ended March 31, 2014, amortization of deferred financing fees amounted to $66,930. | |||
Senior Warrants | |||
The Warrants entitled the holders to purchase, in the aggregate, 345,623 shares of common stock. The Warrants were exercisable beginning November 8, 2013. On August 1, 2014, the Company entered into warrant exchange agreements (“Warrant Exchange Agreements”) with the holders (“Senior Warrant holders”) of the Senior Warrants. Pursuant to the Warrant Exchange Agreements, the Senior Warrant holders exchanged all of the Senior Warrants for shares of the Company’s stock (“Shares”) at a ratio of 1.7 Shares for each Senior Warrant exchanged, in a transaction exempt from registration under Section 3(a)(9) of the Securities Act of 1933 as amended. | |||
Accounting for the Conversion Option and Senior Warrants | |||
The Company first considered whether the Senior Notes met the criteria under ASC 480-10-25-14 to be recorded as a liability and determined that, due to their differing potential settlement features, they did not meet the criteria. The Company next considered whether the conversion option met the definition of a derivative, requiring it to be bifurcated and recorded as a liability. Pursuant to ASC 815-40, due to full-ratchet down-round price protection on the conversion price of the Senior Notes and the exercise price of the Warrants, the Company determined that the conversion features of the Senior Notes and the exercise features of the Senior Warrants are not indexed to the Company’s owned stock and must be recognized separately as a derivative liability in the consolidated balance sheet, measured at fair value and marked to market each reporting period until the Senior Notes have been fully paid or converted and the Senior Warrants fully exercised. | |||
The change in fair value of the Senior Warrants of $2,419,355 was recorded as a non-cash loss on change in value of these derivatives for the quarter ended March 31, 2014. The change in value of the conversion feature of the Senior Notes of $32 was recorded as a non-cash gain on change in value of the derivative for the three month period ended March 31, 2014. | |||
Pursuant to the terms of the Senior Notes, the Company opted to pay the installment payments due prior to March 31, 2014 with shares of the Company’s common stock. During the three months ended March 31 2014, a loss on extinguishment was recognized in the amount of $834,000, for the difference between the installment amount and the fair value of the shares at the issuance date. | |||
In addition, during the three months ended March 31, 2014, debt discount amortization related to Senior Notes amounted to $678,052. | |||
Subordinated Convertible Notes and Subordinated Warrants | |||
Simultaneously with the closing of the $9 million principal amount Senior Note transaction, the Company sold $1 million principal amount of its Subordinated Convertible Notes (the “Subordinated Notes”) to investors consisting of management and directors of the Company and one individual investor. The sale of the Subordinated Notes did not carry any additional fees and expenses, so the Company received the entire $1 million in proceeds from the Subordinated Notes at closing. The Subordinated Notes are subordinated in right of repayment to the Senior Notes and mature 91 days subsequent to the maturity date of the Senior Notes. The Subordinated Notes bear interest at the rate of 8% per year. Once 2/3 of the Senior Notes have been repaid, then the Subordinated Notes may be converted and/or prepaid in cash so long as there is no Event of Default with respect to the Senior Notes and all Equity Conditions (as defined in the securities purchase agreement for the Senior Notes) are met. The conversion price for the Subordinated Notes is $13.20 per share. The holders of the Subordinated Convertible Notes were issued five year warrants to purchase 38,402 shares of Company common stock (“Subordinated Warrants”). Each Subordinated Warrant has an exercise price of $15.10 per share. | |||
The fair value of the warrants, issued in connection with the Subordinated Notes is $304,000 in the aggregate and was calculated using the Black-Scholes option pricing model with the following assumptions: (i) expected life of 5 years, (ii) volatility of 80%, (iii) risk free interest rate of 0.75% and (iv) dividend yield of zero. | |||
During the three months ended March 31, 2014, debt discount amortization related to the Subordinated Notes amounted to $64,352. | |||
The outstanding principal balance at March 31, 2015 and December 31, 2014, related to the Subordinated Notes is $65,000. |
Public_offering_of_common_stoc
Public offering of common stock, Series A warrants and Series B warrants | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Public Offering And Warrants Issuance [Abstract] | |||||
Public Offering And Warrants Issuance [Text Block] | 8 | Public offering of common stock, Series A warrants and Series B warrants | |||
Effective October 29, 2014, the Company consummated an underwritten public offering consisting of 1,875,000 shares of common stock ("Common Stock"), together with Series A warrants to purchase 1,875,000 shares of its Common Stock ("Series A Warrants") and Series B warrants to purchase 1,875,000 shares of its Common Stock (“Series B Warrants”) for gross proceeds to the Company of approximately $6.1 million and net proceeds of $5.5 million. The public offering price for each share of Common Stock, together with one Series A Warrant and one Series B Warrant, was $3.25. The Series A Warrants may be exercised for a period of five years and have an exercise price of $3.25 per share of Common Stock. The Series B Warrants may be exercised for a period of 15 months and have an exercise price of $3.25 per share of Common Stock. In connection with the offering, the Company granted to the underwriter a 45-day option to acquire up to 281,250 additional shares of Common Stock and/or up to 281,250 additional Series A Warrants and/or up to 281,250 additional Series B Warrants. The Company has also closed on the underwriter’s exercise of the over-allotment option on the Series A Warrants and the Series B Warrants. The Company’s Common Stock and Series A Warrants are now listed on the NASDAQ Capital Market under the symbols “AXPW” and “AXPWW”, respectively. | |||||
As of March 31, 2015, 1,108,303 Series B warrants have been exercised resulting in the issuance of 27,219,345 shares of the Company’s common stock. | |||||
Accounting for the Series B warrants | |||||
Pursuant to ASC 815-40, due to the net settlement terms included in the Series B warrants, which requires an increased number of shares to be issued if the price of the Company’s common stock falls, the Company determined that the Series B Warrants were not indexed to the Company’s own stock and must be recognized separately as a derivative liability in the consolidated balance sheet, measured at fair value and marked to market each reporting period. | |||||
As of March 31, 2015 and December 31, 2014, the fair value of the Series B warrants was estimated to be $951,535 and $2,930,335, respectively. | |||||
The change in the fair value of the Series B warrant liability is as follows: | |||||
Fair | |||||
Value | |||||
Series B warranty liability, January 1, 2015 | $ | 2,930,335 | |||
Series B warrants exercised | (1,310,264 | ) | |||
Revaluation of remaining Series B warrants | (668,536 | ) | |||
Series B warrant liability, March 31, 2015 | $ | 951,535 | |||
Fair Value Disclosure | |||||
The Company has one Level 3 financial instrument as of March 31, 2015 and December 31, 2014, the Series B warrants associated with the public offering of common stock. The Series B warrants are evaluated under the hierarchy of FASB ASC Subtopic 480-10, FASB ASC Paragraph 815-25-1 and FASB ASC Subparagraph 815-10-15-74 addressing embedded derivatives. |
Going_Concern
Going Concern | 3 Months Ended | |
Mar. 31, 2015 | ||
Going Concern [Abstract] | ||
Going Concern [Text Block] | 9 | Going concern |
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. At March 31, 2015 the Company’s working capital was $2.5 million. The financial resources of the Company will not provide sufficient funds for the Company’s operations beyond the third quarter of 2015, as those operations currently exist. Subsequent funding will be required to fund the Company’s ongoing operations, working capital, and capital expenditures beyond the third quarter of 2015. No assurances can be given that the Company will be successful in arranging the further funds needed to continue the execution of its business plan, which includes the development and commercialization of new products, or even if further funding is available, upon what terms. Failure to obtain such funds on terms acceptable to the Company’s management will require management to substantially curtail, if not cease, operations, which will result in a material adverse effect on the financial position and results of operations of the Company. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might occur if the Company is unable to continue as a going concern. |
Subsequent_Events
Subsequent Events | 3 Months Ended | ||
Mar. 31, 2015 | |||
Subsequent Events [Abstract] | |||
Subsequent Events [Text Block] | 10. Subsequent events | ||
As of May 1, 2015, 1,546,804 Series B warrants have been exercised, and 609,446 Series B warrants remain to be exercised. Inclusive of issuance of shares of our common stock issued for the exercise of Series B warrants through May 1, 2015, we have 93,951,560 shares of the Company’s common stock issued and outstanding. As of the close of business on April 16, 2015, due to the recent volume of exercise of its Series B Warrants, the Company estimated that its number of issued common shares was within 5% of the total authorized shares of common stock of 100 million. Therefore, the Company instructed its transfer agent, effective as of the opening of business on April 17, 2015, not to accept any further exercise notices of Series B warrants. | |||
On May 13, 2015, the Company received the agreement of the holders of over 65% of the then remaining outstanding 609,446 Company Series B warrants to amend the terms of the Series B warrants, as permitted pursuant to Section 8.8 of the Agreement covering the Series B warrants, among the Company, the original holders of the Company Series B warrants and the Company’s warrant agent, Continental Stock Transfer & Trust. The Series B warrants were originally issued as part of the Company’s October 29, 2014 public offering. | |||
The amendments to the terms of the Series B warrants are as follows: | |||
· | The definition of the term “Market Price” in Section 3.3.2.1 of the Warrant Agreement (which covers the further cashless exercises of the Series B warrants) is amended to be $0.10. | ||
· | Section 3.2 of the Agreement is amended to extend the exercise period of the Series B warrants until the later of April 29, 2016 and if the Company has not effected the reverse split of its Common Stock on or prior to July 17, 2015, the date determined by adding to April 29, 2016 one day for each day following July 17, 2015 that the Company has not effected the Reverse Split. | ||
· | In consideration of the agreement by the holders of more than 65% of the remaining Series B warrants as set forth above, the Company has caused the initial Exercise Price of the Series A warrants to be reduced to $0.50 per share. | ||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 512,115 | $ | 601,196 | |||||
Work in process | 156 | 639,957 | |||||||
Finished goods | 734,104 | 80,263 | |||||||
Inventory reserves | (184,468 | ) | (184,468 | ) | |||||
$ | 1,061,907 | $ | 1,136,948 |
Warrants_Tables
Warrants (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Warrants and Rights Note Disclosure [Abstract] | |||||||||||||
Schedule of Stockholders Equity Note, Warrants or Rights [Table Text Block] | Warrants consist of the following: | ||||||||||||
Shares | Weighted | Weighted average | |||||||||||
average | remaining contract | ||||||||||||
exercise price | term (years) | ||||||||||||
Outstanding at January 1, 2015 | 4,502,193 | $ | 3.45 | 5 | |||||||||
Granted | 107,812 | 4.26 | 5 | ||||||||||
Exercised | (1,108,303 | ) | - | - | |||||||||
Outstanding at March 31, 2015 | 3,501,702 | $ | 3.53 | 4.6 |
Equity_Compensation_Tables
Equity Compensation (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Outstanding compensatory options consist of the following based on grant date: | ||||||||||||||||||||
Weighted Average | |||||||||||||||||||||
Number of | Exercise | Fair | Remaining | Aggregate | |||||||||||||||||
Options | Value | Life | Intrinsic | ||||||||||||||||||
(years) | Value | ||||||||||||||||||||
Outstanding at January 1, 2015 | 135,537 | $ | 39.48 | $ | 14.44 | 3.8 | $ | - | |||||||||||||
Granted | 446,800 | 1 | 0.43 | 5.4 | - | ||||||||||||||||
Forfeited or lapsed | (38,725 | ) | 11.68 | 5.39 | - | - | |||||||||||||||
Outstanding at March 31, 2015 | 543,612 | $ | 9.83 | $ | 3.53 | 5.5 | $ | - | |||||||||||||
Exercisable at March 31, 2015 | 357,489 | $ | 14.37 | $ | 5.02 | 4.8 | $ | - | |||||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | All non-vested compensatory options consist of the following: | ||||||||||||||||||||
All Options | |||||||||||||||||||||
Shares | Fair Value | ||||||||||||||||||||
Subject to future vesting at January 1, 2015 | 42,553 | $ | 4.43 | ||||||||||||||||||
Granted | 446,800 | 0.43 | |||||||||||||||||||
Forfeited or lapsed | (37,000 | ) | 4.02 | ||||||||||||||||||
Vested | (266,230 | ) | 0.32 | ||||||||||||||||||
Subject to future vesting at March 31, 2015 | 186,123 | $ | 0.69 |
Public_offering_of_common_stoc1
Public offering of common stock, Series A warrants and Series B warrants (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Public Offering Of Common Stock Series Warrants And Series B Warrants Tables | |||||
Summary of fair value of the Series B warrants | The change in the fair value of the Series B warrant liability is as follows: | ||||
Fair | |||||
Value | |||||
Series B warranty liability, January 1, 2015 | $ | 2,930,335 | |||
Series B warrants exercised | (1,310,264 | ) | |||
Revaluation of remaining Series B warrants | (668,536 | ) | |||
Series B warrant liability, March 31, 2015 | $ | 951,535 |
Accounting_Policies
Accounting Policies | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
Significant Accounting Policies [Text Block] | Note 2 — Accounting Policies | |||||||||
Use of Estimates: The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates, assumptions and judgments that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. | ||||||||||
Principles of Consolidation: The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries, APB, APC and C&T. All significant inter-company balances and transactions have been eliminated in consolidation. | ||||||||||
Segment Reporting: Management has determined that the Company is organized, managed and internally reported as one business segment. | ||||||||||
Foreign Currency Translation: The accounts of APC and C&T are measured using the Canadian dollar as the functional currency for all the periods presented in the financial statements. The translation from Canadian dollars to U.S. dollars is performed for the balance sheet accounts using current exchange rates in effect at each of the balance sheet dates, and for the revenue and expense accounts using the average rate in effect during the periods. The resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity. Gains or losses resulting from transactions denominated in currencies other than the functional currency are included in the results of operations as incurred. Any gains or losses arising from the inter-company loan denominated in U.S. dollars are directly reflected in other comprehensive income, as the amounts are not expected to be repaid in the foreseeable future. | ||||||||||
Comprehensive Income: The Company follows Financial Accounting Standards Board Account Standards Codification (“FASB ASC”) 220, “Comprehensive Income.” Comprehensive income is the change in equity of a business enterprise during a reporting period from transactions and other events and circumstances from non-owner sources. In addition to the Company’s net loss, the change in equity components under comprehensive income include any foreign currency translation adjustment. | ||||||||||
Fair Value of Financial Instruments: FASB ASC 825, “Financial Instruments," requires disclosure of fair value information about certain financial instruments, including, but not limited to, cash and cash equivalents, accounts receivable, refundable tax credits, prepaid expenses, accounts payable, accrued expenses, notes payable to related parties and convertible debt-related securities. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2014 and 2013. The carrying value of the balance sheet financial instruments included in the Company’s consolidated financial statements approximated their fair values. | ||||||||||
Cash and Cash Equivalents: The Company considers those short-term, highly liquid investments to be cash or cash equivalents. Our investment policy is that we only invest cash in U.S. Government Treasuries with original maturities of six months or less. At December 31, 2014 we had $1.1 million in cash and cash equivalents that were on deposit with one financial institution which were not invested in U.S. Government Treasuries nor protected under the Federal Deposit Insurance Corporation limit of $250,000 per institution. | ||||||||||
Accounts Receivable and Concentration of Credit Risk: The Company records its accounts receivable net of any allowance for doubtful accounts. The Company manages its credit risk exposure and establishes an allowance for doubtful accounts for accounts that are deemed at risk for collection. When management determines that an account is uncollectible, it is written off against the related allowance. The allowance for uncollectible accounts is $10,500 at December 31, 2014 and 2013. | ||||||||||
Inventory: Inventory is recorded at the lower of cost or market value, and adjusted as appropriate for decreases in valuation and obsolescence. Adjustments to the valuation and obsolescence reserves are made after analyzing market conditions, historical sales activity, inventory costs and inventory composition to determine appropriate reserve levels. Cost is determined using the first-in first-out (FIFO) method. Many components and raw materials we purchase have minimum order quantities. | ||||||||||
A summary of inventory at December 31, 2014 and 2013 is as follows: | ||||||||||
2014 | 2013 | |||||||||
Raw materials | $ | 601,196 | $ | 1,073,034 | ||||||
Work in process | 639,957 | 1,235,029 | ||||||||
Finished goods | 80,263 | 163,228 | ||||||||
Inventory reserves | -184,468 | -220,654 | ||||||||
$ | 1,136,948 | $ | 2,250,637 | |||||||
Property and Equipment: Property and equipment are recorded at cost. Depreciation is computed using the straight line method over the estimated useful lives of the assets, ranging from 3 to 22 years. Expenditures for renewals and betterments are capitalized. Expenditures for minor items are charged to repairs and maintenance expense. Gain or loss upon sale or retirement is reflected in operating results in the period the event takes place. | ||||||||||
A summary of property and equipment at December 31, 2014 and 2013 is as follows: | ||||||||||
Estimated useful life | 2014 | 2013 | ||||||||
Construction in progress | $ | - | $ | 434,082 | ||||||
Leasehold improvements | Lesser of lease term | - | 530,091 | |||||||
or 10 years | ||||||||||
Machinery & equipment | 3-22 years | 3,846,567 | 11,323,042 | |||||||
Less accumulated depreciation | -1,774,037 | -5,588,679 | ||||||||
Net | $ | 2,072,530 | $ | 6,698,536 | ||||||
Depreciation expense was $1,423,474 and $1,505,944 for the years ended December 31, 2014 and December 31, 2013, respectively. | ||||||||||
Certain of our machinery and equipment are secured by the Pennsylvania Department of Community and Economic Development in relation to the Machinery and Equipment Loan Fund financing. The loan proceeds of $776,244 were received by us on September 14, 2009. The balance owed on the loan at December 31, 2014 is $209,581, which bears interest at a rate of 5.25% and matures on October 1, 2016. | ||||||||||
Impairment or Disposal of Long-Lived Assets: The Company adopted the provisions of FASB ASC 360-10-15-3, “Impairment or Disposal of Long-lived Assets.” This standard requires, among other things, that long-lived assets be reviewed for potential impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. The assessment of possible impairment is based on the ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these expected cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. The primary measure of fair value is based on undiscounted future cash flows. The measurement of impairment requires management to make estimates of these cash flows related to long-lived assets, as well as other fair value determinations. | ||||||||||
For 2014, we determined that we would not be able to fully recover the carrying amount of certain machinery and equipment due to our decision to transition out of the manufacture of batteries. In accordance with the guidance for impairment of long-lived assets, we evaluated these assets for the recovery and as a result of estimated fair value estimates provided from third party sources, we recorded a net asset impairment charge of $2,764,868 in 2014 to adjust the carrying value of these assets to our estimate of their fair value at December 31, 2014. The impairment charge for 2014 is recorded in our Statement of Operations and Comprehensive Loss as an operating loss. There was no impairment charge for the year ended December 31, 2013. | ||||||||||
Derivative Financial Instruments: The Company’s objectives in using derivative financial instruments are to obtain the lowest cash cost-source of funds. Derivative liabilities are recognized in the consolidated balance sheets at fair value based on the criteria specified in FASB ASC topic 815-40 " Derivatives and Hedging – Contracts in Entity’s own Equity ". The estimated fair value of the derivative liabilities is calculated using either the Black-Scholes or Monte Carlo simulation model method where applicable and such estimates are revalued at each balance sheet date, with changes in value recorded as other income or expense in the consolidated statement of operations and comprehensive loss. As a result of the Company’s adoption of ASC topic 815-40, effective January 1, 2009 some of the Company’s warrants are now accounted for as derivatives. | ||||||||||
Revenue Recognition: The Company recognizes revenue when there is persuasive evidence of an agreement, delivery has occurred or services have been rendered, the sales price to the buyer is fixed or determinable and collectability is reasonably assured. Evidence of an agreement and fixed or determinable sales price is predominantly based on a customer purchase order or other form of written sales order or written agreement, and the receipt of appropriate deposits where applicable depending on the nature and amount of the purchase order. Sales on account are approved only for credit-worthy customers; otherwise partial or full payment is received prior to shipment. Shipping terms are generally FOB shipping point and revenue is recognized when product is shipped to the customer and the aforementioned revenue recognition criteria have been met. When the terms are FOB destination or contingent upon collection by a prime contractor, then in these cases, revenue is recognized when the product is delivered to the customer’s designated delivery site and the conditions for collection have been fulfilled. The Company records sales net of discounts and estimated customer allowances and returns. We offer a 90 day free replacement warranty on some specialty collector car and motorsports products. Collector car products also carry a four year prorated warranty that begins at the end of the 90 days. To date, our warranty exposure on these battery products has been minimal. Flooded battery sales do not have standard warranty provisions and instead are sold at a discount in lieu of warranty. There were no other post shipment obligations that may impact the timing of revenue recognition for the year ending December 31, 2014. | ||||||||||
Cost of Sales - Idle Capacity: Idle capacity consists of direct production costs in excess of charges allocated to our finished goods in production. Operating costs include direct and indirect labor, production supplies, repairs and maintenance, rent, utilities, insurance and property taxes. Our charges for labor and overhead allocated to our finished goods are determined on a basis which is calculated presuming normal capacity utilization of two shifts per day, five days per week, which is lower than our actual costs incurred. Operating costs in excess of production allocations are expensed in the period incurred rather than added to the cost of finished goods produced. Idle capacity expenses for the year ended December 31, 2014 are $1,937,802 and $1,758,407 for year ended December 31, 2013. The year over year increase is primarily due to decreased production. | ||||||||||
Grants: The Company recognizes government grants when there is reasonable assurance that the Company will comply with the conditions attached to the grant arrangement and the grant will be received. Government grants are recognized in the consolidated statements of operations on a systematic basis over the periods in which the Company recognizes the related costs for which the government grant is intended to compensate. Specifically, when government grants are related to reimbursements for cost of revenues or operating expenses, the government grants are recognized as a reduction of the related expense in the consolidated statements of operations. For government grants related to reimbursements of capital expenditures, the government grants are recognized as a reduction of the basis of the asset and recognized in the consolidated statements of operations over the estimated useful life of the depreciable asset as a reduced depreciation expense. The Company records government grants receivable in the consolidated balance sheets in other receivables. Deferred revenue is amortized into income over the estimated useful life of the related equipment. As of December 31, 2014, the liability for deferred revenue was $ 55,871 and there are no grant receivables at either December 31, 2014 or December 31, 2013. During 2014, $306,426 of income was recorded for the amortization of deferred revenue compared to $339,934 during 2013. We wrote off $544,368 of the deferred revenue account related to the impairment of the assets. | ||||||||||
Stock based Compensation: Stock-based compensation related to employees and non-employees is recognized as compensation expense in the accompanying consolidated statements of operations and comprehensive loss is based on the fair value of the services received or the fair value of the equity instruments issued, whichever is more readily determinable. Our accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of ASC 505-50 “Equity-Based Payments to Non-Employees”. The measurement date for the fair value of the equity instruments issued is determined at the earlier of (1) the date at which a commitment for performance by the consultant or vendor is reached or (2) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. | ||||||||||
Income Taxes: Deferred income taxes are recorded in accordance with FASB ASC 740, “Income Taxes”, and deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax basis of assets and liabilities using the tax rates and laws in effect when the differences are expected to reverse. FASB ASC 740 provides for the recognition of deferred tax assets if realization of such assets is more likely than not to occur. Realization of net deferred tax assets is dependent upon generating sufficient taxable income in future years in appropriate tax jurisdictions to realize benefit from the reversal of temporary differences and from net operating loss, or NOL carry forwards. The Company has determined it is more likely than not that the deferred tax asset resulting from these timing differences will not materialize and have provided a valuation allowance against the entire net deferred tax asset. Management will continue to evaluate the realizability of the deferred tax asset and its related valuation allowance. If the assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which the determination is made. The tax rate may also vary based on actual results and the mix of income or loss in domestic and foreign tax jurisdictions in which operations take place. The Company pays corporate-level franchise taxes which may be based on assets, equity, capital stock or a variation thereof. | ||||||||||
Recently Issued Accounting Pronouncements: In August 2014, the FASB issued Accounting standards Update No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 will require management to evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern for one year from the date the financial statements are issued. The effective date was delayed until annual periods ending after December 15, 2016 to allow the auditing guidance to catch up with this change. ASU No. 2014-15 affects all companies and nonprofits and early application is allowed. We are currently evaluating the impact of our pending adoption of ASU 2014-15 on our consolidated financial statements. | ||||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP. | ||||||||||
The aforementioned standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017. | ||||||||||
In June 2014, the FASB issued ASU 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU 2014-12 requires a performance target that affects vesting and that can be achieved after the requisite service period to be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. ASU 2014-12 will be effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, and can be applied either prospectively to new or modified awards or retrospectively to awards outstanding as of the beginning of the earliest annual period presented and to all new or modified awards thereafter. The Company has not yet selected a transition method and is currently evaluating the impact of the adoption of this standard on the Company’s financial statements. | ||||||||||
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||
Stockholders Equity Note Disclosure [Text Block] | Note 6 — Stockholders' Equity | |||||||||||||
Authorized Capitalization: The Company’s authorized capitalization includes 100 million shares of common stock and 12.5 million shares of preferred stock. | ||||||||||||||
Common Stock: At December 31, 2014, 7,238,293 shares of common stock were issued and outstanding. The holders of common stock are entitled to one vote for each share held of record on all matters to be voted on by stockholders. There is no cumulative voting with respect to the election of directors, with the result that the holders of more than 50% of the shares voted for the election of directors can elect all of the directors. Holders of common stock are entitled to receive dividends when and if declared by the board out of funds legally available. In the event of liquidation, dissolution or winding up, the common stockholders are entitled to share ratably in all assets remaining available for distribution to them after payment of liabilities and after provision has been made for each class of stock, if any, having preference over the common stock. The common stockholders have no conversion, preemptive or other subscription rights and there are no redemption provisions applicable to the common stock. All of the outstanding shares of common stock are fully paid and non-assessable. | ||||||||||||||
Preferred Stock: The Company’s certificate of incorporation authorizes the issuance of 12.5 million shares of blank check preferred stock. The Company’s board of directors has the power to establish the designation, rights and preferences of any preferred stock. Accordingly, the board of directors has the power, without stockholder approval, to issue preferred stock with dividend, liquidation, conversion, voting or other rights that could adversely affect the voting power or other rights of the holders of common stock. At December 31, 2014 and 2013, no shares of Series-A Convertible Preferred stock were issued and outstanding. | ||||||||||||||
Warrants: The following table provides summary information on warrants outstanding as of December 31, 2014 and 2013, with summary information on the various warrants issued by the Company in private placement transactions, warrants exercised to date, warrants that are presently exercisable and the current exercise prices of such warrants. | ||||||||||||||
2014 | 2013 | |||||||||||||
Shares | Weighted Average Exercise price | Shares | Weighted Average Exercise Price | |||||||||||
Warrants outstanding January 1 | 416,529 | $ | 15.19 | 234,247 | $ | 41.5 | ||||||||
Granted during year | 4,432,200 | 3.26 | 415,616 | 15.5 | ||||||||||
Exercised | -345,623 | 15.1 | - | - | ||||||||||
Lapsed | -913 | 56.13 | -233,334 | 41.5 | ||||||||||
Outstanding at December 31 | 4,502,193 | $ | 3.45 | 416,529 | $ | 15.19 | ||||||||
Weighted average years remaining | 5 | 4.8 | ||||||||||||
As of December 31, 2014 there are 2,156,250 warrants classified as derivative liabilities relating to the public offering of common stock that occurred on October 29, 2014. As of December 31, 2013 there were 345,622 warrants classified as derivative liabilities. Each reporting period the warrants are re-valued and adjusted through the captions“change in value of Series B warrants, loss “and” senior warrants loss(gain)” on the consolidated statements of operations and comprehensive loss. | ||||||||||||||
Income_Taxes_Expense_Benefit
Income Taxes Expense (Benefit) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Disclosure [Text Block] | Note 9 — Income Taxes Expense (Benefit) | |||||||
A summary of the components giving rise to the income tax expense (benefit) for the years ended December 31, 2014 and 2013 is as follows: | ||||||||
2014 | 2013 | |||||||
Current income tax expense: | ||||||||
Federal | $ | - | $ | - | ||||
State | - | - | ||||||
Foreign | - | - | ||||||
$ | - | $ | - | |||||
Deferred income tax expense (benefit): | ||||||||
Federal | $ | -4,053,430 | $ | -3,003,000 | ||||
State | -786,841 | -583,000 | ||||||
Foreign | 150,438 | 149,000 | ||||||
Total deferred tax | -4,689,833 | -3,437,000 | ||||||
Less increase in valuation allowance | 4,689,833 | 3,437,000 | ||||||
Net deferred tax | $ | - | $ | - | ||||
Total income tax expense (benefit) | $ | - | $ | - | ||||
Individual components giving rise to the deferred tax asset are as follows: | 2014 | 2013 | ||||||
Future tax benefit arising from net operating loss carry forwards | $ | 29,235,000 | $ | 24,453,000 | ||||
Future tax benefit arising from available tax credits | 1,373,000 | 1,373,000 | ||||||
Future tax benefit arising from options/warrants issued for services | 1,356,000 | 1, 292,000 | ||||||
Other | 222,000 | 214,000 | ||||||
Total future tax benefit | 32,186,000 | 27,332,000 | ||||||
Less valuation allowance | -32,186,000 | -27,332,000 | ||||||
Net deferred tax | $ | - | $ | - | ||||
The components of pretax loss are as follows: | 2014 | 2013 | ||||||
United States | $ | -18,738,250 | $ | -11,959,188 | ||||
Foreign | - | -3,850 | ||||||
$ | -18,738,250 | $ | -11,963,038 | |||||
The Company has net operating loss carry forwards of $68,500,000 and $2,800,000 available to reduce future income taxes in United States and Canada, respectively. The United States carry forwards expire at various dates between 2024 and 2034. The Canadian loss carry forwards expire at various dates between 2013 and 2028. The Company also has generated Canadian tax credits related to research and development activities. The credit, amounting to $734,000 U.S. Dollars, is available to offset future taxable income in Canada and expires at various dates between 2024 and 2027. The Company has adopted FASB ASC 740, which provides for the recognition of a deferred tax asset based upon the value certain items will have on future income taxes and management's estimate of the probability of the realization of these tax benefits. The Company has determined it more likely than not that these timing differences will not materialize and have provided a valuation allowance against the entire net deferred tax asset. due to equity transactions that have occurred, the utilization of NOL carry forwards may be subject to further change in control limitations that generally restricts the utilization of the NOL per year. | ||||||||
The reconciliation of the United States statutory federal income rate and the effective income tax rate in the accompanying Consolidated Statements of Operations for the years ended December 31, 2014 and 2013 is as follows: | ||||||||
2014 | 2013 | |||||||
Statutory U.S. federal income tax rate | -34 | % | -34 | % | ||||
State taxes, net | -4.2 | % | -4.9 | % | ||||
Foreign currency fluctuation | 0.8 | % | 1.3 | % | ||||
Revaluation of derivatives | -10 | % | -5.6 | % | ||||
Debt discount amortization | 2.4 | % | 14.5 | % | ||||
Change in valuation allowance | 25.2 | % | 28.7 | % | ||||
Effective income tax rate | 0 | % | 0 | % | ||||
The Company adopted the provisions of FASB ASC 740-10 “Income Taxes” on January 1, 2008. As the result of the assessment, the Company recognized no material adjustments to unrecognized tax benefits. At the adoption date of January 1, 2008 and as of December 31, 2014, the Company has no unrecognized tax benefits. By statute, tax years ending December 31, 2010 through 2014 remain open to examination by the major taxing jurisdictions to which the Company is subject | ||||||||
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 10 — Related Party Transactions |
None. | |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2015 | |
Supplemental Schedule of Non Cash Investing and Financing Activities: | |
Additional Financial Information Disclosure [Text Block] | Note 11 — Supplemental Cash Flow Information |
Cash payments for interest during the years ended December 31, 2014 and December 31, 2013 were $37,516 and $19,405, respectively. There were no payments of federal or state income taxes during the years ended December 31, 2014 and 2013 | |
Commitments_and_Contingencies_
Commitments and Contingencies, Concentrations and Significant Contracts | 3 Months Ended | ||
Mar. 31, 2015 | |||
Commitments and Contingencies Disclosure [Abstract] | |||
Commitments and Contingencies Disclosure [Text Block] | Note 12 — Commitments and Contingencies, Concentrations and Significant Contracts | ||
Facilities: On March 28, 2010, we renewed our commercial lease for existing space at our manufacturing plant, located at 3601 Clover Lane, in New Castle, Pennsylvania. The salient terms of the Lease are as follows: | |||
· | The term commenced on April 3, 2010 with an initial term of three years. | ||
· | On March 10, 2013, we exercised our option for a five year renewal on our existing lease space. The lease may be extended for one additional five-year term with future rent to be negotiated at a commercially reasonable rate. | ||
· | The battery manufacturing facility includes 70,438 square feet of floor space, including 7,859 square feet of office, locker, lab and lunch area, 46,931 square feet of manufacturing space, 1,488 square feet of dedicated lab space, 9,200 square feet of storage buildings and 5,000 square feet of basement area. | ||
· | The rental amount for the renewal term is $17,200 per month, which is fixed through 2018. In addition to the monthly rental, we are obligated to pay all required maintenance costs, taxes and special assessments, maintain public liability insurance and maintain fire and casualty insurance for an amount equal to 100% of the replacement value of the leased premises. | ||
On November 4, 2010, the Company entered into a commercial lease for a 45,000 square foot building, located at 209 Green Ridge Road in New Castle PA. The salient terms of the Lease are as follows: | |||
· | The Lease term commenced on January 1, 2011 and the term expires on December 31, 2015. | ||
· | The Lease may be extended for two 5-year terms, by giving notice not less than 30 nor more than 120 days before the expiration of the initial term or first renewal term (as applicable). The renewal leases shall be on terms substantially similar to the terms of the initial Lease except for any adjustment to rent, if warranted, as mutually agreed upon by Lessor and the Company. | ||
· | The rental amount for the initial term is $19,297 per month and is on a “triple net” basis. | ||
· | The Company also has a right of first refusal to purchase the property within 30 days of receipt of notice of a third party offer from Lessor upon substantially the same terms as those offered by the third party. | ||
· | The Lease contains market terms on standard provisions such as defaults and maintenance. | ||
Rent expense for both facilities was $437,964 for 2014 and 2013. | |||
Concentration of Business Transacted with One Customer: We had one customer that accounted for 74.2% of sales in 2014 and for 84.5% of sales in 2013. | |||
Executive Employment Agreements: Effective as of April 1, 2013, the Company entered into an Executive Employment Agreement (“Agreement “ ) with Philip S. Baker as its Chief Operating Officer. Under the terms of the Agreement , which has a term of three years, Mr. Baker receives an annual salary of $199,800, which is subject to review annually , an annual stipend of $19,980, an annual bonus as determined by the Compensation Committee of the Board of Directors, and an annual car allowance of $6,000. On April 1, 2013, Mr. Baker was granted a five year option to purchase 4,600 shares of our common stock with an exercise price of $75 per share, 520 options vested on April 1, 2010, and, beginning in June, 2010, 120 options vested monthly through the remaining 34 months of his contract. | |||
Effective as of November 1, 2014, the Company entered into an Executive Employment Agreement (“Agreement “) with Charles R. Trego as its Chief Financial Officer. Under the terms of the Agreement, which has a term of two years, Mr. Trego receives an annual salary of $225,000, an annual stipend of $22,500 on the first and second anniversaries of the date of the Executive Employment Agreement, respectively, if he is still employed by the Company in such capacity on the first anniversary date, and on the second anniversary date, if he has an agreement to continue as the Chief Financial Officer of the Company for at least six months subsequent to the second anniversary date, an annual car allowance of $7,500. | |||
Effective November 1, 2014, Charles Trego, Phillip Baker and two other executives entered into salary deferral agreements with the Company pursuant to which each agreed to defer portions of their salary for one year from the date of effectiveness of the salary deferral agreement. The deferred portions of the salaries are to be paid to each such employee by the earlier of December 31, 2015 and the occurrence of one of the following events: (i) consummation by the Company of any subsequent financing transactions with at least $6,000,000 in gross proceeds in the aggregate; (ii) a change in control of the Company or (iii) a sale of all or substantially all of the assets of the Company. At December 31, 2014 the total deferred salaries amounted to $51,988. | |||
We have no retirement plans or other similar arrangements for any directors, officers or employees, other than a non-contributory 401(k) plan. | |||
Accounting_Policies_Policies
Accounting Policies (Policies) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates: The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates, assumptions and judgments that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. | |||||||||
Consolidation, Policy [Policy Text Block] | Principles of Consolidation: The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries, APB, APC and C&T. All significant inter-company balances and transactions have been eliminated in consolidation. | |||||||||
Segment Reporting, Policy [Policy Text Block] | Segment Reporting: Management has determined that the Company is organized, managed and internally reported as one business segment. | |||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation: The accounts of APC and C&T are measured using the Canadian dollar as the functional currency for all the periods presented in the financial statements. The translation from Canadian dollars to U.S. dollars is performed for the balance sheet accounts using current exchange rates in effect at each of the balance sheet dates, and for the revenue and expense accounts using the average rate in effect during the periods. The resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity. Gains or losses resulting from transactions denominated in currencies other than the functional currency are included in the results of operations as incurred. Any gains or losses arising from the inter-company loan denominated in U.S. dollars are directly reflected in other comprehensive income, as the amounts are not expected to be repaid in the foreseeable future. | |||||||||
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income: The Company follows Financial Accounting Standards Board Account Standards Codification (“FASB ASC”) 220, “Comprehensive Income.” Comprehensive income is the change in equity of a business enterprise during a reporting period from transactions and other events and circumstances from non-owner sources. In addition to the Company’s net loss, the change in equity components under comprehensive income include any foreign currency translation adjustment. | |||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments: FASB ASC 825, “Financial Instruments," requires disclosure of fair value information about certain financial instruments, including, but not limited to, cash and cash equivalents, accounts receivable, refundable tax credits, prepaid expenses, accounts payable, accrued expenses, notes payable to related parties and convertible debt-related securities. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2014 and 2013. The carrying value of the balance sheet financial instruments included in the Company’s consolidated financial statements approximated their fair values. | |||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents: The Company considers those short-term, highly liquid investments to be cash or cash equivalents. Our investment policy is that we only invest cash in U.S. Government Treasuries with original maturities of six months or less. At December 31, 2014 we had $1.1 million in cash and cash equivalents that were on deposit with one financial institution which were not invested in U.S. Government Treasuries nor protected under the Federal Deposit Insurance Corporation limit of $250,000 per institution. | |||||||||
Accounts Receivable And Concentration Of Credit Risk [Policy Text Block] | Accounts Receivable and Concentration of Credit Risk: The Company records its accounts receivable net of any allowance for doubtful accounts. The Company manages its credit risk exposure and establishes an allowance for doubtful accounts for accounts that are deemed at risk for collection. When management determines that an account is uncollectible, it is written off against the related allowance. The allowance for uncollectible accounts is $10,500 at December 31, 2014 and 2013. | |||||||||
Inventory, Policy [Policy Text Block] | Inventory: Inventory is recorded at the lower of cost or market value, and adjusted as appropriate for decreases in valuation and obsolescence. Adjustments to the valuation and obsolescence reserves are made after analyzing market conditions, historical sales activity, inventory costs and inventory composition to determine appropriate reserve levels. Cost is determined using the first-in first-out (FIFO) method. Many components and raw materials we purchase have minimum order quantities. | |||||||||
A summary of inventory at December 31, 2014 and 2013 is as follows: | ||||||||||
2014 | 2013 | |||||||||
Raw materials | $ | 601,196 | $ | 1,073,034 | ||||||
Work in process | 639,957 | 1,235,029 | ||||||||
Finished goods | 80,263 | 163,228 | ||||||||
Inventory reserves | -184,468 | -220,654 | ||||||||
$ | 1,136,948 | $ | 2,250,637 | |||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment: Property and equipment are recorded at cost. Depreciation is computed using the straight line method over the estimated useful lives of the assets, ranging from 3 to 22 years. Expenditures for renewals and betterments are capitalized. Expenditures for minor items are charged to repairs and maintenance expense. Gain or loss upon sale or retirement is reflected in operating results in the period the event takes place. | |||||||||
A summary of property and equipment at December 31, 2014 and 2013 is as follows: | ||||||||||
Estimated useful life | 2014 | 2013 | ||||||||
Construction in progress | $ | - | $ | 434,082 | ||||||
Leasehold improvements | Lesser of lease term | - | 530,091 | |||||||
or 10 years | ||||||||||
Machinery & equipment | 3-22 years | 3,846,567 | 11,323,042 | |||||||
Less accumulated depreciation | -1,774,037 | -5,588,679 | ||||||||
Net | $ | 2,072,530 | $ | 6,698,536 | ||||||
Depreciation expense was $1,423,474 and $1,505,944 for the years ended December 31, 2014 and December 31, 2013, respectively. | ||||||||||
Certain of our machinery and equipment are secured by the Pennsylvania Department of Community and Economic Development in relation to the Machinery and Equipment Loan Fund financing. The loan proceeds of $776,244 were received by us on September 14, 2009. The balance owed on the loan at December 31, 2014 is $209,581, which bears interest at a rate of 5.25% and matures on October 1, 2016. | ||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment or Disposal of Long-Lived Assets: The Company adopted the provisions of FASB ASC 360-10-15-3, “Impairment or Disposal of Long-lived Assets.” This standard requires, among other things, that long-lived assets be reviewed for potential impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. The assessment of possible impairment is based on the ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these expected cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. The primary measure of fair value is based on undiscounted future cash flows. The measurement of impairment requires management to make estimates of these cash flows related to long-lived assets, as well as other fair value determinations. | |||||||||
For 2014, we determined that we would not be able to fully recover the carrying amount of certain machinery and equipment due to our decision to transition out of the manufacture of batteries. In accordance with the guidance for impairment of long-lived assets, we evaluated these assets for the recovery and as a result of estimated fair value estimates provided from third party sources, we recorded a net asset impairment charge of $2,764,868 in 2014 to adjust the carrying value of these assets to our estimate of their fair value at December 31, 2014. The impairment charge for 2014 is recorded in our Statement of Operations and Comprehensive Loss as an operating loss. There was no impairment charge for the year ended December 31, 2013. | ||||||||||
Derivative Financial Instruments [Policy Text Block] | Derivative Financial Instruments: The Company’s objectives in using derivative financial instruments are to obtain the lowest cash cost-source of funds. Derivative liabilities are recognized in the consolidated balance sheets at fair value based on the criteria specified in FASB ASC topic 815-40 " Derivatives and Hedging – Contracts in Entity’s own Equity ". The estimated fair value of the derivative liabilities is calculated using either the Black-Scholes or Monte Carlo simulation model method where applicable and such estimates are revalued at each balance sheet date, with changes in value recorded as other income or expense in the consolidated statement of operations and comprehensive loss. As a result of the Company’s adoption of ASC topic 815-40, effective January 1, 2009 some of the Company’s warrants are now accounted for as derivatives. | |||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition: The Company recognizes revenue when there is persuasive evidence of an agreement, delivery has occurred or services have been rendered, the sales price to the buyer is fixed or determinable and collectability is reasonably assured. Evidence of an agreement and fixed or determinable sales price is predominantly based on a customer purchase order or other form of written sales order or written agreement, and the receipt of appropriate deposits where applicable depending on the nature and amount of the purchase order. Sales on account are approved only for credit-worthy customers; otherwise partial or full payment is received prior to shipment. Shipping terms are generally FOB shipping point and revenue is recognized when product is shipped to the customer and the aforementioned revenue recognition criteria have been met. When the terms are FOB destination or contingent upon collection by a prime contractor, then in these cases, revenue is recognized when the product is delivered to the customer’s designated delivery site and the conditions for collection have been fulfilled. The Company records sales net of discounts and estimated customer allowances and returns. We offer a 90 day free replacement warranty on some specialty collector car and motorsports products. Collector car products also carry a four year prorated warranty that begins at the end of the 90 days. To date, our warranty exposure on these battery products has been minimal. Flooded battery sales do not have standard warranty provisions and instead are sold at a discount in lieu of warranty. There were no other post shipment obligations that may impact the timing of revenue recognition for the year ending December 31, 2014. | |||||||||
Cost Of Sales Idle Capacity [Policy Text Block] | Cost of Sales - Idle Capacity: Idle capacity consists of direct production costs in excess of charges allocated to our finished goods in production. Operating costs include direct and indirect labor, production supplies, repairs and maintenance, rent, utilities, insurance and property taxes. Our charges for labor and overhead allocated to our finished goods are determined on a basis which is calculated presuming normal capacity utilization of two shifts per day, five days per week, which is lower than our actual costs incurred. Operating costs in excess of production allocations are expensed in the period incurred rather than added to the cost of finished goods produced. Idle capacity expenses for the year ended December 31, 2014 are $1,937,802 and $1,758,407 for year ended December 31, 2013. The year over year increase is primarily due to decreased production. | |||||||||
Grant [Policy Text Block] | Grants: The Company recognizes government grants when there is reasonable assurance that the Company will comply with the conditions attached to the grant arrangement and the grant will be received. Government grants are recognized in the consolidated statements of operations on a systematic basis over the periods in which the Company recognizes the related costs for which the government grant is intended to compensate. Specifically, when government grants are related to reimbursements for cost of revenues or operating expenses, the government grants are recognized as a reduction of the related expense in the consolidated statements of operations. For government grants related to reimbursements of capital expenditures, the government grants are recognized as a reduction of the basis of the asset and recognized in the consolidated statements of operations over the estimated useful life of the depreciable asset as a reduced depreciation expense. The Company records government grants receivable in the consolidated balance sheets in other receivables. Deferred revenue is amortized into income over the estimated useful life of the related equipment. As of December 31, 2014, the liability for deferred revenue was $ 55,871 and there are no grant receivables at either December 31, 2014 or December 31, 2013. During 2014, $306,426 of income was recorded for the amortization of deferred revenue compared to $339,934 during 2013. We wrote off $544,368 of the deferred revenue account related to the impairment of the assets. | |||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock based Compensation: Stock-based compensation related to employees and non-employees is recognized as compensation expense in the accompanying consolidated statements of operations and comprehensive loss is based on the fair value of the services received or the fair value of the equity instruments issued, whichever is more readily determinable. Our accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of ASC 505-50 “Equity-Based Payments to Non-Employees”. The measurement date for the fair value of the equity instruments issued is determined at the earlier of (1) the date at which a commitment for performance by the consultant or vendor is reached or (2) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. | |||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes: Deferred income taxes are recorded in accordance with FASB ASC 740, “Income Taxes”, and deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax basis of assets and liabilities using the tax rates and laws in effect when the differences are expected to reverse. FASB ASC 740 provides for the recognition of deferred tax assets if realization of such assets is more likely than not to occur. Realization of net deferred tax assets is dependent upon generating sufficient taxable income in future years in appropriate tax jurisdictions to realize benefit from the reversal of temporary differences and from net operating loss, or NOL carry forwards. The Company has determined it is more likely than not that the deferred tax asset resulting from these timing differences will not materialize and have provided a valuation allowance against the entire net deferred tax asset. Management will continue to evaluate the realizability of the deferred tax asset and its related valuation allowance. If the assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which the determination is made. The tax rate may also vary based on actual results and the mix of income or loss in domestic and foreign tax jurisdictions in which operations take place. The Company pays corporate-level franchise taxes which may be based on assets, equity, capital stock or a variation thereof. | |||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements: In August 2014, the FASB issued Accounting standards Update No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 will require management to evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern for one year from the date the financial statements are issued. The effective date was delayed until annual periods ending after December 15, 2016 to allow the auditing guidance to catch up with this change. ASU No. 2014-15 affects all companies and nonprofits and early application is allowed. We are currently evaluating the impact of our pending adoption of ASU 2014-15 on our consolidated financial statements. | |||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP. | ||||||||||
The aforementioned standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017. | ||||||||||
In June 2014, the FASB issued ASU 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU 2014-12 requires a performance target that affects vesting and that can be achieved after the requisite service period to be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. ASU 2014-12 will be effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, and can be applied either prospectively to new or modified awards or retrospectively to awards outstanding as of the beginning of the earliest annual period presented and to all new or modified awards thereafter. The Company has not yet selected a transition method and is currently evaluating the impact of the adoption of this standard on the Company’s financial statements. | ||||||||||
Accounting_Policies_Tables
Accounting Policies (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following: | |||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
Raw materials | $ | 512,115 | $ | 601,196 | ||||||
Work in process | 156 | 639,957 | ||||||||
Finished goods | 734,104 | 80,263 | ||||||||
Inventory reserves | (184,468 | ) | (184,468 | ) | ||||||
$ | 1,061,907 | $ | 1,136,948 | |||||||
Property, Plant and Equipment [Table Text Block] | A summary of property and equipment at December 31, 2014 and 2013 is as follows: | |||||||||
Estimated useful life | 2014 | 2013 | ||||||||
Construction in progress | $ | - | $ | 434,082 | ||||||
Leasehold improvements | Lesser of lease term | - | 530,091 | |||||||
or 10 years | ||||||||||
Machinery & equipment | 3-22 years | 3,846,567 | 11,323,042 | |||||||
Less accumulated depreciation | -1,774,037 | -5,588,679 | ||||||||
Net | $ | 2,072,530 | $ | 6,698,536 | ||||||
Senior_Convertible_Notes_and_W1
Senior Convertible Notes and Warrants, and Subordinated Notes and Warrants (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
Schedule of Debt Conversions [Table Text Block] | As of December 2014 and 2013, the senior warrants and the conversion feature of the senior note are classified as a liability in the consolidated balance sheet as follows: | |||||||||||||
Warrants | Conversion Feature | Total | ||||||||||||
Original valuation – May 8, 2013 | $ | 2,938,000 | $ | 1,512,000 | $ | 4,450,000 | ||||||||
Adjustment to fair value | -2,419,567 | -1,511,968 | -3,931,535 | |||||||||||
Balance-December 31, 2013 | 518,433 | 32 | 518,465 | |||||||||||
Change in value senior warrants | 2,125,576 | - | 2,125,576 | |||||||||||
Change in value conversion feature (gain) | - | -32 | -32 | |||||||||||
Conversion of warrants to stock | -2,644,009 | - | -2,644,009 | |||||||||||
Balance – December 31, 2014 | $ | - | $ | - | $ | - | ||||||||
Schedule of Debt [Table Text Block] | As of December 31, 2013, the principal balance of the Senior Notes (net of discount) was as follows: | |||||||||||||
Convertible | Debt Discount | Net Total | ||||||||||||
Note | ||||||||||||||
Original valuation – May 8, 2013 | $ | 9,000,000 | $ | -4,450,000 | $ | 4,550,000 | ||||||||
Installation payment in shares | -6,275,000 | - | -6,275,000 | |||||||||||
Amortization of debt discount | - | 3,771,948 | 3,771,948 | |||||||||||
Balance – December 31, 2013 | 2,725,000 | -678,052 | 2,046,948 | |||||||||||
Installation payment in shares | -2,725,000 | - | -2,725,000 | |||||||||||
Amortization of debt discount | - | 678,052 | 678,052 | |||||||||||
Balance – December 31, 2014 | $ | - | $ | - | $ | - | ||||||||
Schedule of Subordinated Borrowing [Table Text Block] | The balance at December 31, 2014 and December 31, 2013 related to the Subordinated Notes was comprised of: | |||||||||||||
Subordinated convertible notes payable, related and unrelated parties at May 8, 2013 | $ | 1,000,000 | ||||||||||||
Unamortized debt discount | -416,426 | |||||||||||||
Balance – December 31, 2013 | 583,574 | |||||||||||||
Conversion of accrued interest to principal | 66,049 | |||||||||||||
Repayment of subordinated notes | -935,000 | |||||||||||||
Amortization of debt discount | 416,426 | |||||||||||||
Conversion of interest into shares of common stock | -66,049 | |||||||||||||
Balance – December 31, 2014 | $ | 65,000 | ||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table represents the Company’s fair value hierarchy for items that are required to be measured at fair value on a recurring basis. As of December 31, 2014 and 2013 the following tables represent the fair value of the warrant liabilities. | |||||||||||||
2014 | ||||||||||||||
Fair | ||||||||||||||
Value | Level 1 | Level 2 | Level 3 | |||||||||||
Series B warranty liability | $ | 2,930,335 | - | - | $ | 2,930,335 | ||||||||
2013 | ||||||||||||||
Fair | ||||||||||||||
Value | Level 1 | Level 2 | Level 3 | |||||||||||
Embedded note conversion feature | $ | 32 | - | - | $ | 32 | ||||||||
Warrant liability | $ | 518,433 | - | - | $ | 518,433 | ||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Schedule of Stockholders Equity Note, Warrants or Rights [Table Text Block] | Warrants consist of the following: | ||||||||||||
Shares | Weighted | Weighted average | |||||||||||
average | remaining contract | ||||||||||||
exercise price | term (years) | ||||||||||||
Outstanding at January 1, 2015 | 4,502,193 | $ | 3.45 | 5 | |||||||||
Granted | 107,812 | 4.26 | 5 | ||||||||||
Exercised | (1,108,303 | ) | - | - | |||||||||
Outstanding at March 31, 2015 | 3,501,702 | $ | 3.53 | 4.6 |
Income_Taxes_Expense_Benefit_T
Income Taxes Expense (Benefit) (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | A summary of the components giving rise to the income tax expense (benefit) for the years ended December 31, 2014 and 2013 is as follows: | |||||||
2014 | 2013 | |||||||
Current income tax expense: | ||||||||
Federal | $ | - | $ | - | ||||
State | - | - | ||||||
Foreign | - | - | ||||||
$ | - | $ | - | |||||
Deferred income tax expense (benefit): | ||||||||
Federal | $ | -4,053,430 | $ | -3,003,000 | ||||
State | -786,841 | -583,000 | ||||||
Foreign | 150,438 | 149,000 | ||||||
Total deferred tax | -4,689,833 | -3,437,000 | ||||||
Less increase in valuation allowance | 4,689,833 | 3,437,000 | ||||||
Net deferred tax | $ | - | $ | - | ||||
Total income tax expense (benefit) | $ | - | $ | - | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Individual components giving rise to the deferred tax asset are as follows: | 2014 | 2013 | |||||
Future tax benefit arising from net operating loss carry forwards | $ | 29,235,000 | $ | 24,453,000 | ||||
Future tax benefit arising from available tax credits | 1,373,000 | 1,373,000 | ||||||
Future tax benefit arising from options/warrants issued for services | 1,356,000 | 1, 292,000 | ||||||
Other | 222,000 | 214,000 | ||||||
Total future tax benefit | 32,186,000 | 27,332,000 | ||||||
Less valuation allowance | -32,186,000 | -27,332,000 | ||||||
Net deferred tax | $ | - | $ | - | ||||
Schedule Of Components Of Pre Tax Net Loss [Table Text Block] | The components of pretax loss are as follows: | 2014 | 2013 | |||||
United States | $ | -18,738,250 | $ | -11,959,188 | ||||
Foreign | - | -3,850 | ||||||
$ | -18,738,250 | $ | -11,963,038 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation of the United States statutory federal income rate and the effective income tax rate in the accompanying Consolidated Statements of Operations for the years ended December 31, 2014 and 2013 is as follows: | |||||||
2014 | 2013 | |||||||
Statutory U.S. federal income tax rate | -34 | % | -34 | % | ||||
State taxes, net | -4.2 | % | -4.9 | % | ||||
Foreign currency fluctuation | 0.8 | % | 1.3 | % | ||||
Revaluation of derivatives | -10 | % | -5.6 | % | ||||
Debt discount amortization | 2.4 | % | 14.5 | % | ||||
Change in valuation allowance | 25.2 | % | 28.7 | % | ||||
Effective income tax rate | 0 | % | 0 | % | ||||
Basis_of_Presentation_Details_
Basis of Presentation (Details Textual) | 0 Months Ended | 12 Months Ended |
Jul. 07, 2014 | Dec. 31, 2014 | |
Stockholders' Equity, Reverse Stock Split | 1-for-50 | |
Stock Issued During Period, Shares, Reverse Stock Splits | 244,537 | |
Minimum [Member] | ||
Stockholders' Equity, Reverse Stock Split | 1-for-20 | |
Maximum [Member] | ||
Stockholders' Equity, Reverse Stock Split | 1-for-50 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Raw materials | $512,115 | $601,196 |
Work in process | 156 | 639,957 |
Finished goods | 734,104 | 80,263 |
Inventory reserves | -184,468 | -184,468 |
Inventory, Net | $1,061,907 | $1,136,948 |
Warrants_Details
Warrants (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
ScheduleOfStockholdersEquityLineItems [Line Items] | ||
Weighted Average Exercise Price Granted during year | $0.43 | |
Warrant [Member] | ||
ScheduleOfStockholdersEquityLineItems [Line Items] | ||
Warrants, outstanding at beginning | 4,502,193 | |
Warrants, Granted during year | 107,812 | |
Warrants, Exercised | -1,108,303 | |
Warrants, Outstanding at ending | 3,501,702 | 4,502,193 |
Weighted average Exercise Price Warrants outstanding | $3.45 | |
Weighted Average Exercise Price Granted during year | $4.26 | |
Weighted Average Exercise Price Exercised | $0 | |
Weighted Average Exercise price Warrants outstanding | $3.53 | $3.45 |
Weighted Average Remaining Contract Term - Warrants Shares - Outstanding | 5 years | 5 years |
Weighted Average Remaining Contract Term - Warrants Shares - Granted | 4 years 7 months 6 days |
Warrants_Details_Narrative
Warrants (Details Narrative) (USD $) | Mar. 31, 2015 |
Warrants Details Narrative | |
Derivative Liability | $1,047,947 |
Equity_Compensation_Details
Equity Compensation (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options - Outstanding - Beginning balance | 135,537 | |
Options - Granted | 446,800 | |
Options - Forfeited or lapsed | -38,725 | |
Options - Outstanding - Ending balance | 543,612 | 135,537 |
Options - Exercisable | 357,489 | |
Weighted Average Exercise - Outstanding - Beginning balance | $39.48 | |
Weighted Average Exercise - Granted | $1 | |
Weighted Average Exercise - Forfeited or lapsed | $11.68 | |
Weighted Average Exercise - Outstanding - Ending balance | $9.83 | $39.48 |
Weighted Average Exercise - Exercisable | $14.37 | |
Weighted Average, Fair Value - Outstanding - Beginning balance | $14.44 | |
Weighted Average, Fair Value - Granted | $0.43 | |
Weighted Average, Fair Value - Forfeited or lapsed | $5.39 | |
Weighted Average, Fair Value - Outstanding - Ending balance | $3.53 | $14.44 |
Weighted Average, Fair Value - Exercisable | $5.02 | |
Weighted Average, Remaining Life (years) - Outstanding | 5 years 6 months | 3 years 9 months 18 days |
Weighted Average, Remaining Life (years) - Granted | 5 years 4 months 24 days | |
Weighted Average, Remaining Life (years) - Exercisable | 4 years 9 months 18 days | |
Aggregate Intrinsic Value - Outstanding | $0 | |
Aggregate Intrinsic Value - Granted | 0 | |
Aggregate Intrinsic Value - Forfeited or lapsed | 0 | |
Aggregate Intrinsic Value - Outstanding | 0 | |
Aggregate Intrinsic Value - Exercisable | $0 |
Equity_Compensation_Details_1
Equity Compensation (Details 1) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options subject to future vesting - Shares | 42,553 |
Options granted - Shares | 446,800 |
Options forfeited or lapsed - Shares | -37,000 |
Options vested - Shares | -266,230 |
Options subject to future vesting - Shares | 186,123 |
Options subject to future vesting - Fair Value | $4.43 |
Options granted - Fair Value | $0.43 |
Options forfeited or lapsed - Fair Value | $4.02 |
Options vested - Fair Value | $0.32 |
Options subject to future vesting - Fair Value | $0.69 |
Equity_Compensation_Details_Te
Equity Compensation (Details Textuals) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $108,071 | $37,905 |
Unrecognized compensation related to non-vested options granted | 48,447 | |
265,000 Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 71.10% | |
Risk-free interest rate | 0.85% | |
Dividend yield | 0.00% | |
Expected term | 5 years | |
Exercise price | $1 | |
181,800 Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 186.00% | |
Risk-free interest rate | 1.10% | |
Dividend yield | 0.00% | |
Expected term | 5 years | |
Exercise price | $1 | |
Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $12,240 | $26,504 |
EarningsLoss_Per_Share_Details
Earnings/Loss Per Share (Details Textual) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
ScheduleOfEarningsPerShareLineItems [Line Items] | ||
Weighted Average Number of Shares Outstanding, Diluted | 2,816,168 | 172,168 |
Common equivalent shares | 116,816,748 | |
Series B Warrants [Member] | ||
ScheduleOfEarningsPerShareLineItems [Line Items] | ||
Number of warrants exercised | 1,108,303 | |
Number of warrants not exercised | 1,047,947 |
Senior_Convertible_Notes_and_W2
Senior Convertible Notes and Warrants, and Subordinated Notes and Warrants (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Oct. 29, 2014 | Dec. 31, 2013 | 8-May-13 | |
Senior Convertible Notes and Warrants, and Subordinated Notes and Warrants [Line Items] | ||||||
Deferred Financing Fee | $494,500 | |||||
Amortization of deferred financing fees | 66,930 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 281,250 | |||||
Fair Value Assumptions, Expected Term | 5 years | |||||
Gains (Losses) on Extinguishment of Debt, Total | 834,000 | |||||
Change in fair value of warrant | 2,419,355 | |||||
Adjustment to fair value Conversion Feature | 32 | |||||
Amortization of Debt Discount (Premium) | 742,404 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1.70 | |||||
Subordinated Debt | 65,000 | 65,000 | ||||
Warrant [Member] | ||||||
Senior Convertible Notes and Warrants, and Subordinated Notes and Warrants [Line Items] | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 345,623 | |||||
Senior Notes [Member] | ||||||
Senior Convertible Notes and Warrants, and Subordinated Notes and Warrants [Line Items] | ||||||
Senior Notes | 9,000,000 | 9,000,000 | ||||
Net Proceeds From Issuance Of Senior Note | 2,760,000 | |||||
Placement Agent Fee | 240,000 | |||||
Deferred Financing Fee | 494,500 | |||||
Proceeds From Issuance Of Senior Note - Control Account | 6,000,000 | |||||
Debt Instrument, Convertible, Conversion Price | $5.40 | |||||
Fair Value Assumptions, Expected Term | 10 months 24 days | |||||
Fair Value Assumptions, Expected Volatility Rate | 60.00% | |||||
Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||
Subordinated Notes [Member] | ||||||
Senior Convertible Notes and Warrants, and Subordinated Notes and Warrants [Line Items] | ||||||
Subordinated Convertible Note | 1,000,000 | |||||
Debt Instrument, Convertible, Conversion Price | $13.20 | |||||
Fair Value Assumptions, Expected Term | 5 years | |||||
Fair Value Assumptions, Expected Volatility Rate | 80.00% | |||||
Fair Value Assumptions, Risk Free Interest Rate | 0.75% | |||||
Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||
Warrants Issued | 304,000 | |||||
Proceeds from Issuance of Subordinated Notes | $1 |
Public_offering_of_common_stoc2
Public offering of common stock, Series A warrants and Series B warrants (Details) (USD $) | Mar. 31, 2015 |
Public Offering Of Common Stock Series Warrants And Series B Warrants Details | |
Series B warranty liability, January 1, 2015 | $2,930,335 |
Series B warrants exercised | -1,310,264 |
Revaluation of remaining Series B warrants | -668,536 |
Series B warrant liability, March 31, 2015 | $951,535 |
Public_offering_of_common_stoc3
Public offering of common stock, Series A warrants and Series B warrants (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Oct. 29, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 281,250 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1.70 | |||
Proceeds from Issuance Initial Public Offering | $61 | |||
Net Proceeds From Public Offering | 55 | |||
Sale of Stock, Description of Transaction | The Series A Warrants may be exercised for a period of five years and have an exercise price of $3.25 per share of Common Stock. | |||
Fair Value of Series B Warrants Issued | $951,535 | $0 | ||
IPO [Member] | ||||
Stock Issued During Period, Shares, New Issues | 1,875,000 | |||
Series B Warrants [Member] | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 281,250 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $3.25 | $3.25 | ||
Warrants Exercisable Period | 15 months | 13 years | ||
Share Price | $2.36 | $0.94 | ||
Series B Warrants [Member] | IPO [Member] | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,875,000 | |||
Series A Warrants [Member] | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 281,250 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $3.25 | |||
Warrants Exercisable Period | 5 years | |||
Series A Warrants [Member] | IPO [Member] | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,875,000 |
Going_concern_Details_Textual
Going concern (Details Textual) (USD $) | Mar. 31, 2015 |
Going Concern Details Textual | |
Working Capital | $2,500,000,000,000 |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) | 1 Months Ended | |||
31-May-15 | Mar. 31, 2015 | Dec. 31, 2014 | 15-May-15 | |
Subsequent Event [Line Items] | ||||
Class of Warrant or Right, Authorized | 100,000,000 | 100,000,000 | ||
Common Stock, Shares, Issued | 34,457,638 | 7,238,293 | ||
Common Stock, Shares, Outstanding | 34,457,638 | 7,238,293 | ||
Series B Warrants [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Class Of Warrant Or Right Exercised | 1,546,804 | |||
Class Of Warrant Or Right Not Exercised | 609,446 | |||
Class of Warrant or Right, Authorized | 100,000,000 | |||
Common Stock, Shares, Issued | 93,951,560 | |||
Common Stock, Shares, Outstanding | 93,951,560 |