Intellicheck (IDN) 10-K 30 Mar 17 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 30, 2017	Jun. 30, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	Intellicheck Mobilisa, Inc.
Entity Central Index Key	1,040,896
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 10,917,888
Entity Common Stock, Shares Outstanding		10,743,598
Trading Symbol	IDN
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 3,092,172	$ 5,953,257
Accounts receivable, net of allowance of $74,354 and $18,411 as of December 31, 2016 and 2015, respectively	502,126	1,158,972
Inventory	70,547	74,732
Other current assets	165,473	178,362
Total current assets	3,830,318	7,365,323
NOTE RECEIVABLE, net of current portion	114,909	150,496
PROPERTY AND EQUIPMENT, net	270,776	325,427
GOODWILL	8,101,661	8,101,661
INTANGIBLE ASSETS, net	2,154,563	2,470,127
OTHER ASSETS	61,298	59,800
Total assets	14,533,525	18,472,834
CURRENT LIABILITIES:
Accounts payable	14,140	260,276
Accrued expenses	519,957	536,316
Deferred revenue, current portion	825,538	909,233
Total current liabilities	1,359,635	1,705,825
OTHER LIABILITIES
Deferred revenue, long-term portion	177,306	341,242
Deferred rent	61,133	99,355
Total liabilities	1,598,074	2,146,422
COMMITMENTS AND CONTINIGENCIES
STOCKHOLDERS' EQUITY:
Common stock – $.001 par value; 40,000,000 shares authorized; 10,718,553 and 9,878,906 shares issued and outstanding as of December 31, 2016 and 2015, respectively	10,719	9,879
Additional paid-in capital	117,293,158	114,950,278
Accumulated deficit	(104,368,426)	(98,633,745)
Total stockholders' equity	12,935,451	16,326,412
Total liabilities and stockholders' equity	$ 14,533,525	$ 18,472,834

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for accounts receivable	$ 74,354	$ 18,411
Common stock, par value	$ .001	$ .001
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	10,718,553	9,878,906
Common stock, shares outstanding	10,718,553	9,878,906

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
REVENUES	$ 3,838,963	$ 7,014,665
COST OF REVENUES	(769,048)	(3,006,359)
Gross profit	3,069,915	4,008,306
OPERATING EXPENSES
Selling, general and administrative	6,413,933	6,893,837
Research and development	2,405,593	2,594,678
Total operating expenses	8,819,526	9,488,515
Loss from operations	(5,749,611)	(5,480,209)
OTHER INCOME (EXPENSE)
Interest and other income	14,930	149,575
Interest expense		(3,317)
Net loss	$ (5,734,681)	$ (5,333,951)
PER SHARE INFORMATION:
Loss per common share - Basic/Diluted	$ (0.58)	$ (0.55)
Weighted average common shares used in computing per share amounts - Basic/Diluted	9,914,809	9,658,346

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
BALANCE at Dec. 31, 2014	$ 4,934	$ 106,442,897	$ (93,299,794)	$ 13,148,037
BALANCE, shares at Dec. 31, 2014	4,934,601
Stock-based compensation expense (employees and directors)		878,112		878,112
Issuance of common stock, net of costs	$ 4,857	7,625,900		7,630,757
Issuance of common stock, net of costs, Shares	4,857,143
Exercise of stock options	$ 1	3,456		3,457
Exercise of stock options, shares	313
Vesting of restricted stock	$ 87	(87)
Vesting of restricted stock, shares	86,849
Net loss			(5,333,951)	(5,333,951)
BALANCE at Dec. 31, 2015	$ 9,879	114,950,278	(98,633,745)	16,326,412
BALANCE, shares at Dec. 31, 2015	9,878,906
Stock-based compensation expense (employees and directors)		935,899		935,899
Issuance of common stock, net of costs	$ 1,200	1,776,750		1,776,750
Issuance of common stock, net of costs, Shares	1,200,000
Purchase and retirement of common stock	$ (979)	(1,095,629)		(1,096,608)
Purchase and retirement of common stock, shares	(979,114)
Exercise of stock options	$ 345	389,534		389,879
Exercise of stock options, shares	345,127
Exercise of warrants	$ 153	336,447		389,879
Exercise of warrants, shares	153,000
Vesting of restricted stock	$ 121	(121)
Vesting of restricted stock, shares	120,634
Net loss			(5,734,681)	(5,734,681)
BALANCE at Dec. 31, 2016	$ 10,719	$ 117,293,158	$ (104,368,426)	$ 12,935,451
BALANCE, shares at Dec. 31, 2016	10,718,553

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (5,734,681)	$ (5,333,951)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	434,291	1,020,679
Noncash stock-based compensation expense	935,899	878,112
Noncash change in provision for doubtful accounts	74,354	(60,313)
Gain on sale of wireless assets		(108,825)
Gain on sale of property and equipment		(31,500)
Deferred rent	(38,222)	(29,091)
Decrease (Increase) in accounts receivable	582,492	(306,587)
Decrease in inventory	4,185	40,289
Decrease (Increase) in other current assets	12,889	(30,127)
(Increase) Decrease in other assets	(1,498)	15,207
(Decrease) in accounts payable and accrued expenses	(262,496)	(164,410)
(Decrease) Increase in deferred revenue	(247,631)	(325,747)
Net cash used in operating activities	(4,240,418)	(4,436,264)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(64,075)	(126,618)
Purchases of patents		(125,000)
Proceeds from sale of property and equipment		31,500
Proceeds from sale of wireless assets		30,000
Collection on note receivable	35,587	12,633
Net cash used in investing activities	(28,488)	(177,485)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from the issuance of common stock	1,777,950	7,630,757
Net proceeds from issuance of common stock from exercise of stock options	389,879	977
Net proceeds from the issuance of common stock from exercise of warrants	336,600
Purchase and retirement of common stock	(1,096,608)
Payments on note payable		(31,078)
Net cash provided by financing activities	1,407,821	7,600,656
Net (decrease) increase in cash and cash equivalents	(2,861,085)	2,986,907
CASH AND CASH EQUIVALENTS, beginning of year	5,953,257	2,966,350
CASH AND CASH EQUIVALENTS, end of year	3,092,172	5,953,257
Supplemental disclosure of noncash investing and financing activities:
Issuance of note receivable related to sale of wireless assets		200,000
Financing of property and equipment		$ 31,078

Nature of Business

Nature of Business	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	1 NATURE OF BUSINESS Business Intellicheck Mobilisa, Inc. (the “Company” or “Intellicheck”) is a leading technology company that is engaged in developing, integrating and marketing threat identification and identity authentication solutions to address challenges that include retail fraud prevention, law enforcement threat identification, and mobile and handheld access control and security for the government, military and commercial markets. Intellicheck’s products include Retail ID™, the industry leading solution for preventing fraud in the retail industry; Age ID™, a smartphone or tablet-based solution for preventing sale of age-restricted products to minors; Law ID™, a smartphone-based solution used by law enforcement officers to identify and mitigate threats; and Defense ID®, a mobile and fixed infrastructure solution for threat identification, identity authentication and access control to military bases and other government facilities. Intellicheck continues to develop and release innovative products based upon its rich patent portfolio consisting of over 25 patents. Liquidity For the year ended December 31, 2016, the Company incurred a net loss of $5,734,681 and used cash in operations of $4,240,418. As of December 31, 2016, the Company had cash and cash equivalents of $3,092,172 and an accumulated deficit of $104,368,426. In June 2016, the Company completed an equity raise with gross proceeds of approximately $1,902,000 before deducting the underwriting discount and other offering expenses. Based on our business plan and, cash resources, we expect our existing and future resources and revenues generated from operations to satisfy our working capital requirements for at least the next 12 months. However, if performance expectations fall short or expenses exceed expectations, the Company may need to secure additional financing or reduce expenses to continue operations. Failure to do so would have a material adverse impact on its financial condition. There can be no assurance that any contemplated additional financing will be available on terms acceptable, if at all. If required, the Company believes it would be able to reduce expenses to a sufficient level to continue as a going concern. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Mobilisa, Inc. (“Mobilisa”) and Positive Access Corporation (“Positive Access”). All intercompany balances and transactions have been eliminated upon consolidation.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Significant Accounting Policies	2. SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents Cash and cash equivalents include cash and highly liquid investments with original maturities of three months or less when purchased. There were no cash equivalents held on December 31, 2016 and 2015. Allowance for Doubtful Accounts The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions and other factors that may affect customers’ ability to pay. Inventory Inventory is stated at the lower of cost or market and cost is determined using the first-in, first-out method. Inventory is primarily comprised of finished goods. As of December 31, 2016, the majority of our inventory related to Government and Commercial Identity products for intended near-term sales. Long-Lived Assets and Impairment of Long-Lived Assets The Company’s long-lived assets include property and equipment, goodwill and intangible assets. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable in accordance with ASC topic 350 and ASC Topic 360 to determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets. Impairment is measured at fair value. Property and Equipment Property and equipment are recorded at cost and are depreciated over their estimated useful lives ranging from three to ten-years using the straight-line method. Leasehold improvements are amortized utilizing the straight-line method over the lesser of the term of the lease or estimated useful life of the asset. Goodwill Goodwill represents the excess of acquisition cost over the fair value of net assets acquired in business combinations. Pursuant to ASC Topic 350, the Company tests goodwill for impairment on an annual basis in the fourth quarter, or between annual tests, in certain circumstances. Under guidance, the Company first assessed qualitative factors to determine whether it was necessary to perform the two-step quantitative goodwill impairment test. An entity is not required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price. The Company performed its annual impairment test of goodwill in the fourth quarter for the years ended December 31, 2016 and 2015. For the years ended December 31, 2016 and 2015, the Company determined no impairment charge was required. Intangible Assets Intangible assets include trade names, patents and non-contractual customer relationships as described more fully in Note 5. The Company uses the straight-line method to amortize these assets over their estimated useful lives. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable in accordance with ASC Topic 360. To determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets. Impairment is measured at fair value. No impairments were recognized during the years ended December 31, 2016 and 2015. Deferred Rent The Company received certain rent abatements and incentives from landlord as an inducement to move into its New York office facility. The Company is amortizing these incentives on a straight-line basis over the period of its respective lease. Revenue Recognition and Deferred Revenue Revenue is generally recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable, collectability is probable, and there is no future Company involvement or commitment. The Company sells its commercial products directly through its sales force and through distributors. Revenue from direct sales of products is recognized when shipped to the customer and title has passed. Under the provisions of ASC Topic 605-25, “Revenue Arrangements with Multiple Deliverables,” for multi-element arrangements that include tangible products containing software essential to the tangible product’s functionality and undelivered software elements relating to the tangible product’s essential software, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price and (iii) best estimate of the selling price (“ESP”). VSOE generally exists only when the Company sells the deliverable separately and is the price actually charged by the Company for that deliverable. ESPs reflect the Company’s best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. The Company also recognizes revenues from licensing of its patented software to customers. The licensed software requires continuing service or post contractual customer support and performance; accordingly, a portion of the revenue is deferred based on its fair value and recognized ratably over the period in which the future service, support and performance are provided, which is generally one to three years. Royalties from the licensing of the Company’s technology are recognized as revenues in the period they are earned. The Company also performs consulting work for other companies. These services are billed based on time and materials. Revenue from these arrangements is also recognized as time is spent on the contract and materials are purchased. Subscriptions to database information can be purchased for month-to-month, one, two, and three year periods. Revenue from subscriptions are deferred and recognized over the contractual period, which is typically three years. The Company offers enhanced extended warranties for its sales of hardware and software at a set price. The revenue from these sales are deferred and recognized on a straight-line basis over the contractual period, which is typically one to three years. Research and Development Costs Research and development costs are charged to expense as incurred. Shipping Costs The Company’s shipping and handling costs are included in cost of revenues for all periods presented. Income Taxes The Company accounts for income taxes under in accordance with ASC Topic 740, “Accounting for Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using expected tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Deferred tax assets are recognized subject to management’s judgment that realization is more likely than not. The Company has recorded a full valuation allowance for its net deferred tax assets as of December 31, 2016 and 2015, due to the uncertainty of the realizability of those assets. Fair Value of Financial Instruments The Company adheres to the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”. This pronouncement requires that the Company calculate the fair value of financial instruments and include this additional information in the notes to financial statements when the fair value is different than the book value of those financial instruments. The Company’s financial instruments include cash and cash equivalents, accounts receivable, note receivable, accounts payable and accrued expenses. At December 31, 2016 and 2015, the carrying value of the Company’s financial instruments approximated fair value, due to their short-term nature. Business Concentration and Credit Risk Financial instruments, which subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents. The Company maintains cash with one financial institution. The cash equivalents consist of money market funds. The Company performs periodic evaluations of the relative credit standing of these institutions. The Company’s sales are principally made to large retail customers, financial institutions concentrated in the United States of America and to U.S. government entities. The Company performs ongoing credit evaluations, generally does not require collateral, and establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends and other information. During the year ended December 31, 2016, the Company did not have any single customer account for 10% of revenue. During the year ended December 31, 2015, the Company had one customer that accounted for 31% of revenue. The revenue was associated with a commercial identity sales customer. This customer represented 11% of total accounts receivable at December 31, 2015. As of December 31, 2016, the Company had three suppliers to produce its input devices. The Company has modified its software to operate in windows based systems and can integrate with different hardware platforms that are readily available in the marketplace. The Company does not maintain a manufacturing facility of its own and is not dependent on maintaining its production relationships due to the flexibility of its software to run on multiple existing platforms. Net Loss Per Share Basic net loss per share is computed by dividing the net loss for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and restricted stock is reflected in diluted earnings per share by application of the treasury stock method. The calculation of diluted net loss per share excludes all anti-dilutive shares. Year Ended December 31, 2016 2015 Numerator: Net Loss $ (5,734,681 ) $ (5,333,951 ) Denominator: Weighted average common shares – Basic/Diluted 9,914,809 9,658,346 Net Loss per share – Basic/Diluted $ (0.58 ) $ (0.55 ) The following table summarizes the common stock equivalents excluded from loss per diluted share because their effect would be anti-dilutive: 2016 2015 Stock Options 1,665,420 1,901,298 Warrants 535,301 64,981 Restricted Stock 32,714 67,077 Total 2,233,435 2,033,356 Share Based Compensation The Company accounts for the issuance of equity awards to employees in accordance ASC Topic 715 and 505, which requires that the cost resulting from all share based payment transactions be recognized in the financial statements. This pronouncement establishes fair value as the measurement objective in accounting for share based payment arrangements and requires all companies to apply a fair value based measurement method in accounting for all share based payment transactions with employees. Period compensation costs are included in selling, general and administrative and research and development expenses. The Company recognizes compensation expense related to stock option grants on a straight-line basis over the vesting period. Comprehensive Loss The Company’s comprehensive loss is equal to its net loss for the years ended December 31, 2016 and 2015. Segment Information The Company adheres to the provisions of ASC Topic 280, which establishes standards for the way public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in financial statements issued to shareholders. Management has determined that it has only one reporting segment. Use of Estimates The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the Company’s financial statements and accompanying notes. Significant estimates and assumptions that affect amounts reported in the financial statements include impairment of goodwill and intangible assets, deferred tax valuation allowances, allowances for doubtful accounts, revenue allocation of multi-element arrangements and the fair value of options granted under the Company’s share based compensation plans. Due to the inherent uncertainties involved in making estimates, actual results reported in future periods may be different from those estimates. Recent Accounting Pronouncements Not Yet Effective In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date The Company is in the process of evaluating the impact of its pending adoption of this ASU on revenue transactions, including any impacts on associated processes, systems, and internal controls. The Company’s evaluation includes the determination whether the unit of account (i.e., performance obligations) will change as compared to current GAAP, as well as determining the standalone selling price of each performance obligation. Standalone selling prices under the new guidance may not be substantially different from the Company’s current methodologies of establishing fair value on multiple element arrangements. The Company has started reviewing each of its revenue streams that may have an impact on its consolidated financial statements and is also assessing the capitalizing of its sales commissions upon adoption of the new ASU and is in the process of evaluating the period over which to amortize these capitalized costs. The Company continues to evaluate the impact of this guidance on its consolidated financial statements and any preliminary assessments are subject to change and expects completion of this evaluation by the second quarter of 2017. In August 2014, the FASB issued ASU 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 In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share Based Payment Accounting In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment

Accounts Receivable

Accounts Receivable	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Accounts Receivable	3. ACCOUNTS RECEIVABLE Accounts receivable represent amounts due from the Company’s customers and are presented net of allowance for doubtful accounts. The components of accounts receivable, net are as follows: 2016 2015 Accounts receivable $ 576,480 $ 1,177,383 Less: Allowance for doubtful accounts (74,354 ) (18,411 ) Accounts receivable, net $ 502,126 $ 1,158,972

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	4. PROPERTY AND EQUIPMENT Property and equipment are comprised of the following as of December 31, 2016 and 2015: 2016 2015 Computer equipment $ 930,028 $ 879,738 Furniture and fixtures 73,305 73,305 Leasehold improvements 174,619 174,619 Office equipment 577,002 563,216 Vehicles 30,676 30,676 1,785,630 1,721,554 Less – Accumulated depreciation and amortization 1,514,854 1,396,127 $ 270,776 $ 325,427 Depreciation expense for the years ended December 31, 2016 and 2015 amounted to $118,727 and $122,828, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	5. GOODWILL AND INTANGIBLE ASSETS Identifiable intangible assets The changes in the carrying amount of intangible assets for the year ended December 31, 2016 and 2015 were as follows: 2016 2015 Balance at beginning of year $ 2,470,127 $ 3,307,797 Addition: Acquisition of patent - 125,000 Deduction: Disposal of trademarks - (64,819 ) Deduction: Amortization expense (315,564 ) (897,851 ) Balance at end of year $ 2,154,563 $ 2,470,127 The following table sets forth the components of intangible assets as of December 31, 2016 and 2015: As of December 31, 2016 Estimated Adjusted Useful Carrying Accumulated Life Amount Amortization Net Trade name 20 years $ 590,172 $ (297,992 ) $ 292,180 Patents and copyrights 17 years 1,242,842 (644,231 ) 598,611 Non-contractual customer relationships 15 years 3,268,568 (2,004,796 ) 1,263,772 $ 5,101,582 $ (2,947,019 ) $ 2,154,563 As of December 31, 2015 Adjusted Carrying Accumulated Amount Amortization Net Trade name $ 590,172 $ (271,924 ) $ 318,248 Patents and copyrights 1,242,842 (576,680 ) 666,162 Non-contractual customer relationships 3,268,568 (1,782,851 ) 1,485,717 $ 5,101,582 $ (2,631,455 ) 2,470,127 The following summarizes amortization of acquisition related intangible assets included in the statement of operations: Years Ended December 31, 2016 2015 Cost of sales $ 236,651 $ 348,061 General and administrative 78,913 549,790 $ 315,564 $ 897,851 The Company expects that amortization expense for the next five succeeding years will be as follows: 2017 $ 315,564 2018 $ 315,564 2019 $ 290,897 2020 $ 241,564 2021 $ 241,564 These amounts are subject to change based upon the review of recoverability and useful lives that are performed at least annually. Goodwill The excess of the purchase consideration over the fair value of the assets of acquired businesses is considered goodwill. Under authoritative guidance, purchased goodwill is not amortized, but rather it is periodically reviewed for impairment. The Company had goodwill of $8,101,661 at December 31, 2016 and 2015. This goodwill resulted from the acquisition of Mobilisa, Inc. and Positive Access Corporation. For the years ended December 31, 2016 and 2015, the Company performed its annual impairment test of goodwill in the fourth quarter. Under authoritative guidance, the Company can use industry and Company specific qualitative factors to determine whether it is more likely than not that impairment exists, before using a two-step quantitative analysis. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price. The Company performed the first step of the goodwill impairment test in order to identify potential impairment by comparing fair value of the Company to its carrying amount, including goodwill. The fair value was determined using the weighting of certain valuation techniques, including both income and market approaches which include a discounted cash flow analysis, an estimation of an implied control premium, in addition to the Company’s market capitalization on the measurement date. The implied control premium selected was developed based on certain observable market data of comparable companies. The market capitalization is sensitive to the volatility of the Company’s stock price. Although the Company believes that the factors considered in the impairment analysis are reasonable, changes in any one of the assumptions used could have produced a different result which may have led to an impairment charge. Any future impairment loss could have a material adverse effect on our long-term assets and operating expenses in the period in which impairment is determined to exist. For the years ended December 31, 2016 and 2015, the Company determined that the fair value was in excess of its carrying amount and therefore the second step of the goodwill impairment test was not required. Accumulated impairment charges on goodwill through December 31, 2016 and 2015 are $30,085,862.

Note Receivable

Note Receivable	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Note Receivable	6. NOTE RECEIVABLE On August 31, 2015, the Company sold its wireless enterprise assets to the Jamestown S’Klallam Tribe (the “Buyer”) for total consideration of $350,000 which consists of an upfront cash payment of $30,000, the issuance of a promissory note totaling $200,000 and contingent consideration up to a maximum of $120,000 based on future earnings. The Company recognized a gain on the sale of approximately $109,000 which is included in interest and other income for the year ended December 31, 2015. Total assets disposed include certain trade names associated with the wireless assets with a net book value of approximately $65,000 and certain fixed assets with a net book value of approximately $56,000. Any gain on contingent consideration will be recognized as it is earned. Under the terms of the promissory note, monthly payments in the amount of $3,683 including principal and interest at 4%, are to be made over a 60-month term expiring in August 2020. At December 31, 2016, the total note receivable was $153,667, of which $38,758 and $114,909 is included in Other Current Assets and Notes Receivable, net of current portion, respectively on the Consolidated Balance Sheets.

Debt

Debt	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Debt	7. DEBT Revolving Line of Credit The Company has a revolving credit facility with Silicon Valley Bank that allows for maximum borrowings of $2,000,000. The borrowings are secured by certain collateralized accounts totaling $2,000,000. The facility bears interest at a rate of U.S. prime (3.75% at December 31, 2016). Interest is payable monthly and the principal is due upon maturity on October 5, 2017. At December 31, 2016, there were no amounts outstanding under this facility and unused availability under this facility was $2,000,000.

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued Expenses	8. ACCRUED EXPENSES Accrued expenses are comprised of the following as of December 31, 2016 and 2015: 2016 2015 Professional fees $ 73,999 $ 172,766 Payroll and related 310,996 313,003 Severance payment to former officer 91,460 - Other 43,502 50,547 $ 519,957 $ 536,316

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	9. INCOME TAXES The Company is subject to federal and state income taxes as regular (Subchapter C) corporation. As a result of continuing losses for tax purposes, the Company has historically not paid income taxes and has recorded a full valuation allowance against the net deferred tax asset. The Company’s deferred tax assets are primarily the result of net operating losses (or NOLs). The Company has recorded a valuation allowance against its net deferred tax assets at December 31, 2016 as it is more likely than not that not all of the deferred tax assets will be realized. The valuation is based on management’s assessment that it is more likely than not the NOL carryforwards may not be realized in the foreseeable future due to objective negative evidence that the Company would not generate sufficient taxable income to realize the deferred tax assets. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets for federal and state income taxes as of December 31, 2016 and 2015 are as follows: 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 2,760,000 $ 18,950,000 Stock-based compensation 121,000 275,000 Reserves - 24,000 Deferred rent 24,000 38,000 Research and development tax credits 166,000 136,000 Total deferred tax assets 3,071,000 19,423,000 Deferred tax liabilities: Intangible assets (628,000 ) (698,000 ) Depreciation (48,000 ) (83,000 ) Reserves (22,000 ) - Total deferred tax liabilities (698,000 ) (781,000 ) Net deferred tax assets 2,373,000 18,642,000 Less: Valuation allowance (2,373,000 ) (18,642,000 ) Deferred tax assets, net of allowance $ - $ - There were no tax interest or penalties recorded in the consolidated financial statements for the years ended December 31, 2016 and 2015. In March 2016, the Company completed an Internal Revenue Code Section 382 study which determined that a cumulative three-year ownership change in excess of 50% had occurred in March 2016 due to a share repurchase. As a result, the Company’s available NOL was reduced from $47.4 million to $2.2 million during the first quarter of 2016. The Company’s available NOL at December 31, 2016 was approximately $7 million. The federal and state NOL’s are available to offset future taxable income and expire from 2017 through 2036 if not utilized. The Company files numerous tax returns in various jurisdictions. The Company is not currently under examination by any taxing authority, nor has the Company signed any waiver of the statute of limitations with any taxing authority. The Company remains open to examination by major taxing jurisdictions from 2013 to date. The Company believes there are no unresolved tax issues or tax claims likely to be material to its financial position. The effective tax rate for the years ended December 31, 2016 and 2015 is different from the tax benefit that would result from applying the statutory tax rates primarily due to the recognition of valuation allowances. In 2016, the valuation allowance decreased approximately $16,269,000 primarily related to the reduction of the Company’s NOLs. ASC Topic 740-10 requires evaluation of uncertain tax positions. As of December 31, 2016, the Company has no material uncertain tax positions.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Stockholders' Equity	10. STOCKHOLDERS’ EQUITY Series A Convertible Preferred Stock In January 1997, the Board of Directors authorized the creation of a class of Series A Convertible Preferred Stock with a par value of $.01. The Series A Convertible Preferred Stock is convertible into an equal number of common shares at the holder’s option, subject to adjustment for anti-dilution. The holders of Series A Convertible Preferred Stock are entitled to receive dividends as and if declared by the Board of Directors. In the event of liquidation or dissolution of the Company, the holders of Series A Convertible Preferred Stock are entitled to receive all accrued dividends, if applicable, plus the liquidation price of $1.00 per share. As of December 31, 2016, and 2015, there were no outstanding shares of Series A Convertible Preferred Stock. Stock Options and Share Based Compensation In order to retain and attract qualified personnel necessary for the success of the Company, the Company adopted the 2015 Omnibus Incentive Plan (the “Plan”) covering up to 3,000,000 of the Company’s common shares, pursuant to which officers, directors, key employees and consultants to the Company are eligible to receive incentive stock options, nonqualified stock options and restricted stock units. All of the Plans prior to Company’s 2015 Omnibus Incentive Plan have been closed. The Compensation Committee of the Board of Directors administers this Plan and determines the terms and conditions of options granted, including the exercise price. This Plan generally provides that all stock options will expire within ten years of the date of grant. Incentive stock options granted under this Plan must be granted at an exercise price that is not less than the fair market value per share at the date of the grant and the exercise price must not be less than 110% of the fair market value per share at the date of the grant for grants to persons owning more than 10% of the voting stock of the Company. This Plan also entitles non-employee directors to receive grants of non-qualified stock options as approved by the Board of Directors. The Company uses the Black-Scholes option pricing model to value the options. The table below presents the weighted average expected life of the options in years. The expected life computation is based on the time to option expiration. Volatility is determined using changes in historical stock prices. The interest rate for periods within the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. The fair value of share-based payment units was estimated using the Black-Scholes option pricing model with the following assumptions and weighted average fair values as follows: Twelve Months Ended December 31, 2016 2015 Valuation assumptions: Grant price $1.01 - $2.79 $1.15 - $1.56 Exercise price $1.01 - $2.79 $1.15 - $1.56 Expected dividend yield 0 % 0 % Expected volatility 96.77% - 98.05 % 95.5%-99.2 % Expected life (in years) 5 5 Risk-free interest rate 0.94% - 2.10 % 1.37% - 1.62 % Stock option activity under the Plans during the periods indicated below is as follows: Number of Shares Subject to Issuance Weighted- average Exercise Price Weighted- average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2014 235,478 $ 5.95 4.44 years $ - Granted 1,689,882 $ 1.18 Forfeited or expired (23,749 ) 25.82 Exercised (313 ) 3.12 Outstanding at December 31, 2015 1,901,298 $ 1.46 4.51 years $ - Granted 269,543 $ 1.31 Forfeited or expired (160,294 ) 2.58 Exercised (345,127 ) 1.13 Outstanding at December 31, 2016 1,665,420 $ 1.40 3.62 years $ 2,414,446 Exercisable at December 31, 2016 1,051,358 $ 1.38 3.60 years $ 1,538,447 The following is a summary of stock options as of December 31, 2016: Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Weighted- average Remaining Life Weighted- average Exercise Price Number of Options Weighted- average Exercise Price $1.15 to $1.56 1,493,298 3.66 years $ 1.16 969,236 $ 1.16 $1.75 to $2.79 61,000 4.53 years $ 2.10 11,000 $ 2.79 $3.12 to $5.68 111,122 2.63 years $ 4.19 71,122 $ 4.11 1,665,420 3.62 years $ 1.40 1,051,358 $ 1.38 The weighted-average fair value of the options granted during the years ended December 31, 2016 and 2015 is $0.96 and $0.86, respectively. As of December 31, 2016, the Company had 900,013 shares available for future grants under the Plans. Restricted Stock Units The Company issues Restricted Stock Units (“RSUs”) which are equity-based instruments that may be settled in shares of common stock of the Company. The Company issues RSUs to certain directors as compensation which vest with the passage of time. The vesting of all RSUs is contingent on continued board services. The compensation expense incurred by the Company for RSUs is based on the closing market price of the Company’s common stock on the date of grant and is amortized ratably on a straight-line basis over the requisite service period and charged to general and administrative expense with a corresponding increase to additional paid-in capital. Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at December 31, 2014 31,807 $ 3.93 $ - Granted 122,119 1.24 Vested and Settled in Shares (86,849 ) 1.98 Canceled / Expired - - Outstanding at December 31, 2015 67,077 1.56 $ - Granted 86,271 1.76 Vested and Settled in Shares (120,634 ) 1.60 Canceled / Expired - - Outstanding at December 31, 2016 32,714 $ 1.89 $ 26,010 As of December 31, 2016, there was $507,727 of total unrecognized compensation cost, net of estimated forfeitures, related to all unvested stock options and restricted stock units, which is expected to be recognized over a weighted average period of approximately 1.8 years. Share based compensation expense for the years ended December 31, 2016 and 2015 is as follows: Years Ended December 31, Compensation cost recognized: 2016 2015 Stock options $ 775,338 $ 686,797 Restricted stock units 160,561 191,315 $ 935,899 $ 878,112 Share based compensation is included in operating expenses as follows: Years Ended December 31, 2016 2015 General and administrative $ 873,392 $ 829,208 Research and development 62,507 48,904 $ 935,899 $ 878,112 The Company has a net operating loss carry-forward as of December 31, 2016, and no excess tax benefits for the tax deductions related to share based awards were recognized in the statements of operations. Additionally, no incremental tax benefits were recognized from stock options exercised in 2016 that would have resulted in a reclassification to reduce net cash provided by operating activities with an offsetting increase in net cash provided by financing activities. All stock options have been issued with an exercise price that is equal or above the fair market value of the Company’s Common Stock on the date of grant. Warrants All previously granted warrants were issued with an exercise price that was equal to or above the fair market value of the Company’s common stock on the date of grant. As of December 31, 2016, the Company had 535,301 remaining warrants outstanding which are exercisable through 2019. As of December 31, 2016, 153,000 warrants were exercised at a price of $2.20 per share. No warrants were exercised in 2015.

Issuance of Common Stock

Issuance of Common Stock	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Issuance of Common Stock	11. ISSUANCE OF COMMON STOCK On January 14, 2015, the Company completed a public offering of 4,857,143 shares of its common stock, offered to the public at $1.75 per share. Net proceeds to the Company from this offering were approximately $7,845,000 after deducting underwriting discounts and commissions paid by the Company. Direct offering costs totaling approximately $214,000 were recorded as a reduction to the net proceeds on the consolidated statement of stockholders’ equity. On February 24, 2016, the Company entered into a stock repurchase agreement with two former directors, who were also members of management (the “Former Executives”) for the repurchase of all 979,114 shares owned by the Former Executives of the Company’s common stock for $1,096,608. The transaction was finalized on March 4, 2016. On June 15, 2016, the Company completed a public offering of 1,200,000 shares of its common stock and five year warrants to purchase 600,000 shares with an exercise price of $2.20 per share, at a combined public offering of $1.75 per share and half-warrant. Net proceeds to the Company from this offering were approximately $1,902,000 after deducting underwriting discounts and commissions paid by the Company. Direct offering costs totaling approximately $124,000 were recorded as a reduction to the net proceeds on the consolidated statement of stockholders’ equity. As part of the offering, there was an overallotment option for the underwriters to purchase up to 180,000 shares of common stock at a purchase price of $1.63 per share and/or up to 90,000 additional warrants at a purchase price of $0.0001 per warrant. On June 20, 2016, the underwriters exercised their right to purchase 23,320 warrants resulting in net proceeds of $2 which are included in these net proceeds. In November and December 2016, certain warrant holders exercised their right to purchase 153,000 shares of our common stock which resulted in net proceeds of approximately $337,000.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases an office in Jericho, New York which expires in March 2018. Future minimum lease payments under these lease agreements are as follows for the years ended December 31: 2017 $ 322,913 2018 82,327 Total $ 405,240 Rent expense for the years ended December 31, 2016 and 2015 amounted to $406,308 and $409,460, respectively. Royalty and License Agreements The Company entered into an agreement with a former officer of the Company during 1996 to license certain software. The agreement stipulated, among other provisions, that the officer would receive royalties equal to a percentage of the Company’s gross sales. This agreement was terminated in May 1999 and was superseded by a new agreement which calls for payment of royalties of 0.005% on gross sales from $2,000,000 to $52,000,000 and .0025% on gross sales more than $52,000,000 pertaining to those patents on which Mr. Messina was identified as an inventor. As of December 31, 2016, total fees paid under this agreement amounted to approximately $1,800. Legal Proceedings The Company is not aware of any infringement by our products or technology on the proprietary rights of others. The Company is not currently involved in any legal or regulatory proceeding, or arbitration, the outcome of which is expected to have a material adverse effect on its business. Severance and Change-in-Control Agreements On September 30, 2014, the Company entered into a Severance Agreement with Bill White, the Company’s Chief Financial Officer. Under the agreement, if Mr. White is terminated for any reason other than cause, the Company would pay Mr. White one (1) year base salary in accordance with the Company’s regular payroll schedule. Mr. White would also be entitled to a gross amount equal to any quarterly bonus target applicable during the quarter, accelerated vesting of all outstanding stock options and coverage of health benefits for a period of up to 12 months. The agreement has a term of three years. Effective October 1, 2014, the Company entered into an Executive Employment Agreement with Dr. William Roof, the Company’s Chief Executive Officer. The agreement provides for an annual base salary of $250,000. Under the agreement, if Dr. Roof is terminated for any reason other than cause, it would pay Dr. Roof the greater as follows: (a) 12 months if the Separation Date occurs less than 24 months after commencement of Dr. Roof’s employment as Chief Executive Officer, and (b) 24 months if the Separation Date occurs 24 months or more after the commencement of Dr. Roof’s employment as Chief Executive Officer. On May 19, 2016, Mr. Robert Williamsen, the Company’s Vice President and Chief Revenue Officer departed the Company, via mutual consent, to pursue other interests. Pursuant to Mr. Williamsen’s employment agreement with the Company, Mr. Williamsen will receive a payment of his monthly salary, subject to all applicable withholdings, for a period of 12 months following May 19, 2016, which the first payment commenced on July 7, 2016, and partial reimbursement for continued health, dental, and vision coverage through August 2016. Pursuant to the terms of Mr. Williamsen’s stock option agreements, Mr. Williamsen exercised his vested stock option awards. At the time of separation, the Company immediately recorded an expense for this one-year base salary of $225,000 and accelerated his portion of the Company’s stock-based compensation of approximately $149,000. At December 31, 2016, the remaining amount of this severance liability of approximately $91,000 is included in Accrued Expenses on the Consolidated Balance Sheets. Each of the agreements requires the executive to devote substantially all his time and efforts to our business and contains non-competition and nondisclosure covenants of the officer for the term of his employment and for a one-year period thereafter. Each agreement provides that we may terminate the agreement for cause. 401(k) Plan The Company has a retirement savings 401(k) plan. The plan permits eligible employees to make voluntary contributions to a trust, up to a maximum of 35% of compensation, subject to certain limitations. The Company has elected to contribute a matching contribution equal to 50% of the first 6% of an eligible employee’s deferral election. The Company may also make discretionary contributions, subject to certain conditions, as defined in the plan. The Company’s matching contributions were $27,163 and $32,398 for 2016 and 2015, respectively.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	13. RELATED PARTY TRANSACTIONS On September 30, 2014, the CEO and a Senior Vice President (collectively, the “Executives”), who were also board members, retired from the Company and simultaneously resigned from the board of directors. In connection with the separation, the Company entered into a separation and consulting agreement with the Executives. Included as part of the arrangement, the Company committed to payments totaling $587,500 to be made over a period of 15 months. In exchange for the consideration, the Executives agreed not to compete with the Company, solicit any employee, contractor or consultant of the Company to terminate employment or contractual relationship with the Company, as well refrain from other activities, as defined in the agreement. At September 30, 2014, the Company recorded the future payments of the agreement as a liability and as a non-compete intangible asset totaling $587,500. The costs of the non-compete were amortized over the 15-month term of the agreement. For the years ended December 31, 2015 and 2014, amortization expense recognized was $470,000 and $117,500, respectively. The Company made payments under this agreement in 2015 and 2014 of $417,500 and $170,000, respectively and the balance was paid in full as of December 31, 2015. Mobilisa leased office space from a company (“Lessor Company”) that is wholly-owned by two former directors, who were also members of management. The Company entered into a 10-year lease for the office space ending in 2017. The base annual rent for this facility was $96,010 was subject to annual increases based on the increase in the CPI index plus 1%. On February 24, 2016, the Company and the Lessor Company entered into a lease amendment agreement reducing the space under this lease that took effect on March 31, 2016 thereby closing its office facility and occupied storage space that expired on December 31, 2016. As a result of this amended agreement, the Company made a $100,000 termination payment to the Lessor in full satisfaction the Company’s remaining obligations under its original lease. For the years ended December 31, 2016 and 2015, total rent payments for this facility was $124,001 (including this termination payment) and $94,783, respectively. On February 24, 2016, the Company entered into a stock repurchase agreement with the Executives for the repurchase of all 979,114 shares owned by the Executives of the Company’s common stock for $1,096,608. The transaction was finalized on March 4, 2016.

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data (Unaudited)	14. QUARTERLY FINANCIAL DATA (UNAUDITED) The following table sets forth unaudited financial data for each of the Company’s last eight fiscal quarters. Year Ended December 31, 2016 Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share data) Income Statement Data: Revenues $ 951 $ 940 $ 1,214 $ 734 $ 987 $ 2,292 $ 2,199 $ 1,537 Gross profit 788 749 946 587 595 1,041 1,396 976 Loss from operations (2,149 ) (1,779 ) (730 ) (1,092 ) (1,327 ) (1,218 ) (1,379 ) (1,556 ) Net loss (2,143 ) (1,775 ) (727 ) (1,090 ) (1,302 ) (1,214 ) (1,268 ) (1,550 ) Net loss per common share: Basic $ (0.22 ) $ (0.19 ) $ (0.07 ) $ (0.10 ) $ (0.14 ) $ (0.12 ) $ (0.13 ) $ (0.16 ) Diluted $ (0.22 ) $ (0.19 ) $ (0.07 ) $ (0.10 ) $ (0.14 ) $ (0.12 ) $ (0.13 ) $ (0.16 ) Due to rounding, quarterly net loss per share may not add up to the total net loss for the year.

Significant Accounting Polici21

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and highly liquid investments with original maturities of three months or less when purchased. There were no cash equivalents held on December 31, 2016 and 2015.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions and other factors that may affect customers’ ability to pay.
Inventory	Inventory Inventory is stated at the lower of cost or market and cost is determined using the first-in, first-out method. Inventory is primarily comprised of finished goods. As of December 31, 2016, the majority of our inventory related to Government and Commercial Identity products for intended near-term sales.
Long-Lived Assets and Impairment of Long-Lived Assets	Long-Lived Assets and Impairment of Long-Lived Assets The Company’s long-lived assets include property and equipment, goodwill and intangible assets. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable in accordance with ASC topic 350 and ASC Topic 360 to determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets. Impairment is measured at fair value.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost and are depreciated over their estimated useful lives ranging from three to ten-years using the straight-line method. Leasehold improvements are amortized utilizing the straight-line method over the lesser of the term of the lease or estimated useful life of the asset.
Goodwill	Goodwill Goodwill represents the excess of acquisition cost over the fair value of net assets acquired in business combinations. Pursuant to ASC Topic 350, the Company tests goodwill for impairment on an annual basis in the fourth quarter, or between annual tests, in certain circumstances. Under guidance, the Company first assessed qualitative factors to determine whether it was necessary to perform the two-step quantitative goodwill impairment test. An entity is not required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price. The Company performed its annual impairment test of goodwill in the fourth quarter for the years ended December 31, 2016 and 2015. For the years ended December 31, 2016 and 2015, the Company determined no impairment charge was required.
Intangible Assets	Intangible Assets Intangible assets include trade names, patents and non-contractual customer relationships as described more fully in Note 5. The Company uses the straight-line method to amortize these assets over their estimated useful lives. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable in accordance with ASC Topic 360. To determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets. Impairment is measured at fair value. No impairments were recognized during the years ended December 31, 2016 and 2015.
Deferred Rent	Deferred Rent The Company received certain rent abatements and incentives from landlord as an inducement to move into its New York office facility. The Company is amortizing these incentives on a straight-line basis over the period of its respective lease.
Revenue Recognition and Deferred Revenue	Revenue Recognition and Deferred Revenue Revenue is generally recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable, collectability is probable, and there is no future Company involvement or commitment. The Company sells its commercial products directly through its sales force and through distributors. Revenue from direct sales of products is recognized when shipped to the customer and title has passed. Under the provisions of ASC Topic 605-25, “Revenue Arrangements with Multiple Deliverables,” for multi-element arrangements that include tangible products containing software essential to the tangible product’s functionality and undelivered software elements relating to the tangible product’s essential software, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price and (iii) best estimate of the selling price (“ESP”). VSOE generally exists only when the Company sells the deliverable separately and is the price actually charged by the Company for that deliverable. ESPs reflect the Company’s best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. The Company also recognizes revenues from licensing of its patented software to customers. The licensed software requires continuing service or post contractual customer support and performance; accordingly, a portion of the revenue is deferred based on its fair value and recognized ratably over the period in which the future service, support and performance are provided, which is generally one to three years. Royalties from the licensing of the Company’s technology are recognized as revenues in the period they are earned. The Company also performs consulting work for other companies. These services are billed based on time and materials. Revenue from these arrangements is also recognized as time is spent on the contract and materials are purchased. Subscriptions to database information can be purchased for month-to-month, one, two, and three year periods. Revenue from subscriptions are deferred and recognized over the contractual period, which is typically three years. The Company offers enhanced extended warranties for its sales of hardware and software at a set price. The revenue from these sales are deferred and recognized on a straight-line basis over the contractual period, which is typically one to three years.
Research and Development Costs	Research and Development Costs Research and development costs are charged to expense as incurred.
Shipping Costs	Shipping Costs The Company’s shipping and handling costs are included in cost of revenues for all periods presented.
Income Taxes	Income Taxes The Company accounts for income taxes under in accordance with ASC Topic 740, “Accounting for Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using expected tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Deferred tax assets are recognized subject to management’s judgment that realization is more likely than not. The Company has recorded a full valuation allowance for its net deferred tax assets as of December 31, 2016 and 2015, due to the uncertainty of the realizability of those assets.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company adheres to the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”. This pronouncement requires that the Company calculate the fair value of financial instruments and include this additional information in the notes to financial statements when the fair value is different than the book value of those financial instruments. The Company’s financial instruments include cash and cash equivalents, accounts receivable, note receivable, accounts payable and accrued expenses. At December 31, 2016 and 2015, the carrying value of the Company’s financial instruments approximated fair value, due to their short-term nature.
Business Concentrations and Credit Risk	Business Concentration and Credit Risk Financial instruments, which subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents. The Company maintains cash with one financial institution. The cash equivalents consist of money market funds. The Company performs periodic evaluations of the relative credit standing of these institutions. The Company’s sales are principally made to large retail customers, financial institutions concentrated in the United States of America and to U.S. government entities. The Company performs ongoing credit evaluations, generally does not require collateral, and establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends and other information. During the year ended December 31, 2016, the Company did not have any single customer account for 10% of revenue. During the year ended December 31, 2015, the Company had one customer that accounted for 31% of revenue. The revenue was associated with a commercial identity sales customer. This customer represented 11% of total accounts receivable at December 31, 2015. As of December 31, 2016, the Company had three suppliers to produce its input devices. The Company has modified its software to operate in windows based systems and can integrate with different hardware platforms that are readily available in the marketplace. The Company does not maintain a manufacturing facility of its own and is not dependent on maintaining its production relationships due to the flexibility of its software to run on multiple existing platforms.
Net Loss Per Share	Net Loss Per Share Basic net loss per share is computed by dividing the net loss for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and restricted stock is reflected in diluted earnings per share by application of the treasury stock method. The calculation of diluted net loss per share excludes all anti-dilutive shares. Year Ended December 31, 2016 2015 Numerator: Net Loss $ (5,734,681 ) $ (5,333,951 ) Denominator: Weighted average common shares – Basic/Diluted 9,914,809 9,658,346 Net Loss per share – Basic/Diluted $ (0.58 ) $ (0.55 ) The following table summarizes the common stock equivalents excluded from loss per diluted share because their effect would be anti-dilutive: 2016 2015 Stock Options 1,665,420 1,901,298 Warrants 535,301 64,981 Restricted Stock 32,714 67,077 Total 2,233,435 2,033,356
Share Based Compensation	Share Based Compensation The Company accounts for the issuance of equity awards to employees in accordance ASC Topic 715 and 505, which requires that the cost resulting from all share based payment transactions be recognized in the financial statements. This pronouncement establishes fair value as the measurement objective in accounting for share based payment arrangements and requires all companies to apply a fair value based measurement method in accounting for all share based payment transactions with employees. Period compensation costs are included in selling, general and administrative and research and development expenses. The Company recognizes compensation expense related to stock option grants on a straight-line basis over the vesting period.
Comprehensive Loss	Comprehensive Loss The Company’s comprehensive loss is equal to its net loss for the years ended December 31, 2016 and 2015.
Segment Information	Segment Information The Company adheres to the provisions of ASC Topic 280, which establishes standards for the way public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in financial statements issued to shareholders. Management has determined that it has only one reporting segment.
Use of Estimates	Use of Estimates The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the Company’s financial statements and accompanying notes. Significant estimates and assumptions that affect amounts reported in the financial statements include impairment of goodwill and intangible assets, deferred tax valuation allowances, allowances for doubtful accounts, revenue allocation of multi-element arrangements and the fair value of options granted under the Company’s share based compensation plans. Due to the inherent uncertainties involved in making estimates, actual results reported in future periods may be different from those estimates.
Recent Accounting Pronouncements Not Yet Effective	Recent Accounting Pronouncements Not Yet Effective In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date The Company is in the process of evaluating the impact of its pending adoption of this ASU on revenue transactions, including any impacts on associated processes, systems, and internal controls. The Company’s evaluation includes the determination whether the unit of account (i.e., performance obligations) will change as compared to current GAAP, as well as determining the standalone selling price of each performance obligation. Standalone selling prices under the new guidance may not be substantially different from the Company’s current methodologies of establishing fair value on multiple element arrangements. The Company has started reviewing each of its revenue streams that may have an impact on its consolidated financial statements and is also assessing the capitalizing of its sales commissions upon adoption of the new ASU and is in the process of evaluating the period over which to amortize these capitalized costs. The Company continues to evaluate the impact of this guidance on its consolidated financial statements and any preliminary assessments are subject to change and expects completion of this evaluation by the second quarter of 2017. In August 2014, the FASB issued ASU 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 In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share Based Payment Accounting In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment

Significant Accounting Polici22

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of Earnings Per Share Basic and Diluted	The calculation of diluted net loss per share excludes all anti-dilutive shares. Year Ended December 31, 2016 2015 Numerator: Net Loss $ (5,734,681 ) $ (5,333,951 ) Denominator: Weighted average common shares – Basic/Diluted 9,914,809 9,658,346 Net Loss per share – Basic/Diluted $ (0.58 ) $ (0.55 )
Summary of the Common Stock Equivalents Excluded from Loss per Diluted Share	The following table summarizes the common stock equivalents excluded from loss per diluted share because their effect would be anti-dilutive: 2016 2015 Stock Options 1,665,420 1,901,298 Warrants 535,301 64,981 Restricted Stock 32,714 67,077 Total 2,233,435 2,033,356

Accounts Receivable (Tables)

Accounts Receivable (Tables)	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Components of Accounts Receivable	Accounts receivable represent amounts due from the Company’s customers and are presented net of allowance for doubtful accounts. The components of accounts receivable, net are as follows: 2016 2015 Accounts receivable $ 576,480 $ 1,177,383 Less: Allowance for doubtful accounts (74,354 ) (18,411 ) Accounts receivable, net $ 502,126 $ 1,158,972

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment are comprised of the following as of December 31, 2016 and 2015: 2016 2015 Computer equipment $ 930,028 $ 879,738 Furniture and fixtures 73,305 73,305 Leasehold improvements 174,619 174,619 Office equipment 577,002 563,216 Vehicles 30,676 30,676 1,785,630 1,721,554 Less – Accumulated depreciation and amortization 1,514,854 1,396,127 $ 270,776 $ 325,427

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	The changes in the carrying amount of intangible assets for the year ended December 31, 2016 and 2015 were as follows: 2016 2015 Balance at beginning of year $ 2,470,127 $ 3,307,797 Addition: Acquisition of patent - 125,000 Deduction: Disposal of trademarks - (64,819 ) Deduction: Amortization expense (315,564 ) (897,851 ) Balance at end of year $ 2,154,563 $ 2,470,127
Schedule of Intangible Assets and Goodwill	The following table sets forth the components of intangible assets as of December 31, 2016 and 2015: As of December 31, 2016 Estimated Adjusted Useful Carrying Accumulated Life Amount Amortization Net Trade name 20 years $ 590,172 $ (297,992 ) $ 292,180 Patents and copyrights 17 years 1,242,842 (644,231 ) 598,611 Non-contractual customer relationships 15 years 3,268,568 (2,004,796 ) 1,263,772 $ 5,101,582 $ (2,947,019 ) $ 2,154,563 As of December 31, 2015 Adjusted Carrying Accumulated Amount Amortization Net Trade name $ 590,172 $ (271,924 ) $ 318,248 Patents and copyrights 1,242,842 (576,680 ) 666,162 Non-contractual customer relationships 3,268,568 (1,782,851 ) 1,485,717 $ 5,101,582 $ (2,631,455 ) 2,470,127
Schedule of Finite-lived Intangible Assets Amortization Expense	The following summarizes amortization of acquisition related intangible assets included in the statement of operations: Years Ended December 31, 2016 2015 Cost of sales $ 236,651 $ 348,061 General and administrative 78,913 549,790 $ 315,564 $ 897,851
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The Company expects that amortization expense for the next five succeeding years will be as follows: 2017 $ 315,564 2018 $ 315,564 2019 $ 290,897 2020 $ 241,564 2021 $ 241,564

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses are comprised of the following as of December 31, 2016 and 2015: 2016 2015 Professional fees $ 73,999 $ 172,766 Payroll and related 310,996 313,003 Severance payment to former officer 91,460 - Other 43,502 50,547 $ 519,957 $ 536,316

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets and Liabilities	Significant components of the Company’s deferred tax assets for federal and state income taxes as of December 31, 2016 and 2015 are as follows: 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 2,760,000 $ 18,950,000 Stock-based compensation 121,000 275,000 Reserves - 24,000 Deferred rent 24,000 38,000 Research and development tax credits 166,000 136,000 Total deferred tax assets 3,071,000 19,423,000 Deferred tax liabilities: Intangible assets (628,000 ) (698,000 ) Depreciation (48,000 ) (83,000 ) Reserves (22,000 ) - Total deferred tax liabilities (698,000 ) (781,000 ) Net deferred tax assets 2,373,000 18,642,000 Less: Valuation allowance (2,373,000 ) (18,642,000 ) Deferred tax assets, net of allowance $ - $ -

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Fair Value of Share Based Payment	The fair value of share-based payment units was estimated using the Black-Scholes option pricing model with the following assumptions and weighted average fair values as follows: Twelve Months Ended December 31, 2016 2015 Valuation assumptions: Grant price $1.01 - $2.79 $1.15 - $1.56 Exercise price $1.01 - $2.79 $1.15 - $1.56 Expected dividend yield 0 % 0 % Expected volatility 96.77% - 98.05 % 95.5%-99.2 % Expected life (in years) 5 5 Risk-free interest rate 0.94% - 2.10 % 1.37% - 1.62 %
Schedule of Stock Option Activity	Stock option activity under the Plans during the periods indicated below is as follows: Number of Shares Subject to Issuance Weighted- average Exercise Price Weighted- average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2014 235,478 $ 5.95 4.44 years $ - Granted 1,689,882 $ 1.18 Forfeited or expired (23,749 ) 25.82 Exercised (313 ) 3.12 Outstanding at December 31, 2015 1,901,298 $ 1.46 4.51 years $ - Granted 269,543 $ 1.31 Forfeited or expired (160,294 ) 2.58 Exercised (345,127 ) 1.13 Outstanding at December 31, 2016 1,665,420 $ 1.40 3.62 years $ 2,414,446 Exercisable at December 31, 2016 1,051,358 $ 1.38 3.60 years $ 1,538,447
Summary of Stock Options	The following is a summary of stock options as of December 31, 2016: Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Weighted- average Remaining Life Weighted- average Exercise Price Number of Options Weighted- average Exercise Price $1.15 to $1.56 1,493,298 3.66 years $ 1.16 969,236 $ 1.16 $1.75 to $2.79 61,000 4.53 years $ 2.10 11,000 $ 2.79 $3.12 to $5.68 111,122 2.63 years $ 4.19 71,122 $ 4.11 1,665,420 3.62 years $ 1.40 1,051,358 $ 1.38
Schedule of Restricted Stock Units Outstanding	The compensation expense incurred by the Company for RSUs is based on the closing market price of the Company’s common stock on the date of grant and is amortized ratably on a straight-line basis over the requisite service period and charged to general and administrative expense with a corresponding increase to additional paid-in capital. Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at December 31, 2014 31,807 $ 3.93 $ - Granted 122,119 1.24 Vested and Settled in Shares (86,849 ) 1.98 Canceled / Expired - - Outstanding at December 31, 2015 67,077 1.56 $ - Granted 86,271 1.76 Vested and Settled in Shares (120,634 ) 1.60 Canceled / Expired - - Outstanding at December 31, 2016 32,714 $ 1.89 $ 26,010
Schedule of Share Based Compensation Expense	Share based compensation expense for the years ended December 31, 2016 and 2015 is as follows: Years Ended December 31, Compensation cost recognized: 2016 2015 Stock options $ 775,338 $ 686,797 Restricted stock units 160,561 191,315 $ 935,899 $ 878,112
Schedule of Stock Based Compensation	Share based compensation is included in operating expenses as follows: Years Ended December 31, 2016 2015 General and administrative $ 873,392 $ 829,208 Research and development 62,507 48,904 $ 935,899 $ 878,112

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Leases [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Future minimum lease payments under these lease agreements are as follows for the years ended December 31: 2017 $ 322,913 2018 82,327 Total $ 405,240

Quarterly Financial Data (Una30

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Schedule of Quarterly Financial Information	The following table sets forth unaudited financial data for each of the Company’s last eight fiscal quarters. Year Ended December 31, 2016 Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share data) Income Statement Data: Revenues $ 951 $ 940 $ 1,214 $ 734 $ 987 $ 2,292 $ 2,199 $ 1,537 Gross profit 788 749 946 587 595 1,041 1,396 976 Loss from operations (2,149 ) (1,779 ) (730 ) (1,092 ) (1,327 ) (1,218 ) (1,379 ) (1,556 ) Net loss (2,143 ) (1,775 ) (727 ) (1,090 ) (1,302 ) (1,214 ) (1,268 ) (1,550 ) Net loss per common share: Basic $ (0.22 ) $ (0.19 ) $ (0.07 ) $ (0.10 ) $ (0.14 ) $ (0.12 ) $ (0.13 ) $ (0.16 ) Diluted $ (0.22 ) $ (0.19 ) $ (0.07 ) $ (0.10 ) $ (0.14 ) $ (0.12 ) $ (0.13 ) $ (0.16 )

Nature of Business (Details Nar

Nature of Business (Details Narrative) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ 1,090,000	$ 727,000	$ 1,775,000	$ 2,143,000	$ 1,550,000	$ 1,268,000	$ 1,214,000	$ 1,302,000	$ 5,734,681	$ 5,333,951
Net cash used in operating activities									4,240,418	4,436,264
Cash and cash equivalents	3,092,172				5,953,257				3,092,172	5,953,257	$ 2,966,350
Accumulated deficit	$ 104,368,426				$ 98,633,745				104,368,426	$ 98,633,745
Proceeds from equity raise									$ 1,902,000

Significant Accounting Polici32

Significant Accounting Policies (Details Narrative)	12 Months Ended
	Dec. 31, 2016USD ($)Integer	Dec. 31, 2015USD ($)
Accounting Policies [Line Items]
Cash equivalents
Impairment charges
Impairment charges on intangible assets
Deferred revenue, description	Subscriptions to database information can be purchased for month-to-month, one, two, and three year periods. Revenue from subscriptions are deferred and recognized over the contractual period, which is typically three years. The Company offers enhanced extended warranties for its sales of hardware and software at a set price. The revenue from these sales are deferred and recognized on a straight-line basis over the contractual period, which is typically one to three years.
Number of reporting segment | Integer	1
Minimum [Member]
Accounting Policies [Line Items]
Estimated useful lives of property and equipment	3 years	10 years
Accounts Receivable [Member]
Accounting Policies [Line Items]
Percentage of credit risk		11.00%
No Single Customer [Member] | Sales Revenue, Net [Member]
Accounting Policies [Line Items]
Percentage of credit risk	1.00%
One Customer [Member] | Sales Revenue, Net [Member]
Accounting Policies [Line Items]
Percentage of credit risk		31.00%

Significant Accounting Polici33

Significant Accounting Policies - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Net Loss	$ (1,090,000)	$ (727,000)	$ (1,775,000)	$ (2,143,000)	$ (1,550,000)	$ (1,268,000)	$ (1,214,000)	$ (1,302,000)	$ (5,734,681)	$ (5,333,951)
Weighted average common shares - Basic/Diluted									9,914,809	9,658,346
Net loss per share - Basic/dDiluted									$ (0.58)	$ (0.55)

Significant Accounting Polici34

Significant Accounting Policies - Summary of the Common Stock Equivalents Excluded from Loss per Diluted Share (Details) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	2,233,435	2,033,356
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	1,665,420	1,901,298
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	535,301	64,981
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	32,714	67,077

Accounts Receivable - Component

Accounts Receivable - Components of Accounts Receivable (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Accounts receivable	$ 576,480	$ 1,177,383
Less: Allowance for doubtful accounts	(74,354)	(18,411)
Accounts receivable, net	$ 502,126	$ 1,158,972

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 118,727	$ 122,828

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 1,785,630	$ 1,721,554
Less - Accumulated depreciation and amortization	1,514,854	1,396,127
Property and Equipment, Net	270,776	325,427
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	930,028	879,738
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	73,305	73,305
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	174,619	174,619
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	577,002	563,216
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 30,676	$ 30,676

Goodwill and Intangible Asset38

Goodwill and Intangible Assets (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 8,101,661	$ 8,101,661
Accumulated impairment charges on goodwill	$ 30,085,862	$ 30,085,862

Goodwill and Intangible Asset39

Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Balance at beginning of year	$ 2,470,127	$ 3,307,797
Addition: Acquisition of patent		125,000
Deduction: Disposal of trademarks		(64,819)
Deduction: Amortization expense	(315,564)	(897,851)
Balance at end of year	$ 2,154,563	$ 2,470,127

Goodwill and Intangible Asset40

Goodwill and Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Adjusted Carrying Amount	$ 5,101,582	$ 5,101,582
Accumulated Amortization	(2,947,019)	(2,631,455)
Net	$ 2,154,563	2,470,127	$ 3,307,797
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	20 years
Adjusted Carrying Amount	$ 590,172	590,172
Accumulated Amortization	(297,992)	(271,924)
Net	$ 292,180	318,248
Patents and Copyrights [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	17 years
Adjusted Carrying Amount	$ 1,242,842	1,242,842
Accumulated Amortization	(644,231)	(576,680)
Net	$ 598,611	666,162
Non-contractual Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	15 years
Adjusted Carrying Amount	$ 3,268,568	3,268,568
Accumulated Amortization	(2,004,796)	(1,782,851)
Net	$ 1,263,772	$ 1,485,717

Goodwill and Intangible Asset41

Goodwill and Intangible Assets - Schedule of Finite-lived Intangible Assets Amortization Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 315,564	$ 897,851
Cost of Sales [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	236,651	348,061
General and Administrative [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 78,913	$ 549,790

Goodwill and Intangible Assetsl

Goodwill and Intangible Assetsl - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details)	Dec. 31, 2015USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2,017	$ 315,564
2,018	315,564
2,019	290,897
2,020	241,564
2,021	$ 241,564

Note Receivable (Details Narrat

Note Receivable (Details Narrative) - USD ($)	Aug. 31, 2015	Dec. 31, 2015	Dec. 31, 2016
Gain on sale of assets recognized		$ 109,000
Value of intangible assets disposed		65,000
Value of fixed assets disposed		56,000
Note receivable			$ 153,667
Note receivable net of allowances			38,758
Note receivable net		$ 150,496	$ 114,909
Buyer [Member]
Sale of assets cash consideration	$ 350,000
Upfront cash payment amount	30,000
Issuance of promissory note	200,000
Contingent consideration maximum amount	120,000
Promissory note monthly payment	$ 3,683
Promissory note interest rate	4.00%
Promissory note term	60 months
Promissory note expiration year	Aug. 31, 2020

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 30, 2016
Line of Credit Facility [Line Items]
Line of credit facility, unused availability	$ 2,000,000
Revolving Credit Facility [Member] | Silicon Valley Bank [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		$ 2,000,000
Line of credit facility, collateral, amount	$ 2,000,000
Line of credit facility, interest rate description	The facility bears interest at a rate of U.S. prime (3.75% at December 31, 2016)
Line of credit maturity date	Oct. 5, 2017
Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | Us Prime [Member]
Line of Credit Facility [Line Items]
Percentage of line of credit interest	3.50%

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Professional fees	$ 73,999	$ 172,766
Payroll and related	310,996	313,003
Severance payments to former officer	91,460
Other	43,502	50,547
Accrued Liabilities	$ 519,957	$ 536,316

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2016
Operating Loss Carryforwards [Line Items]
Income tax, description	Internal Revenue Code Section 382 study which determined that a cumulative three-year ownership change in excess of 50% had occurred in March 2016 due to a share repurchase.
Operating loss carryforwards		$ 7,000,000
Operating loss carryforwards expiration term		2017 through 2036
Valuation allowance decreased approximately		$ 16,269,000
Minimum [Member]
Operating Loss Carryforwards [Line Items]
Percentage of cumulative ownership changes	50.00%
Operating loss carryforwards	$ 2,200,000
Maximum [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 47,400,000

Income Taxes - Components of De

Income Taxes - Components of Deferred Tax Assets (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 2,760,000	$ 18,950,000
Stock-based compensation	121,000	275,000
Reserves		24,000
Deferred rent	24,000	38,000
Research and development tax credits	166,000	136,000
Total deferred tax assets	3,071,000	19,423,000
Intangible assets	(628,000)	(698,000)
Depreciation	(48,000)	(83,000)
Reserves	(22,000)
Total deferred tax liabilities	(698,000)	(781,000)
Net deferred tax assets	(2,373,000)	18,642,000
Less: Valuation allowance	(2,373,000)	(18,642,000)
Deferred tax assets, net of allowance

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options weighted average fair value price per shares	$ 0.96	$ 0.86
Class of warrant or right, outstanding	535,301
Warrants exercisable date	2,019
Warrants exercise price	$ 2.20
Number of warrants exercised	153,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested share-based compensation	$ 507,727
Recognized over weight average period	1 year 9 months 18 days
2006 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares issuance during the period	3,000,000
2015 Omnibus Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of fair value per share granted	110.00%
Percentage of grants owning more than voting stock	10.00%
Stock Option and Equity Incentive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options available for future grants	900,013
Series A Convertible Preferred Stock [Member] | January 1997 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock par value	$ 0.01
Preferred stock liquidation price per share	$ 1

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Fair Value of Share Based Payment (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%
Expected life (in years)	5 years	5 years
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant price	$ 1.01	$ 1.15
Exercise price	$ 1.01	$ 1.15
Expected volatility	96.77%	95.50%
Risk-free interest rate	0.94%	1.37%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant price	$ 2.79	$ 1.56
Exercise price	$ 2.79	$ 1.56
Expected volatility	98.05%	99.20%
Risk-free interest rate	2.10%	1.62%

Stockholders' Equity - Schedu50

Stockholders' Equity - Schedule of Stock Option Activity (Details) - Stock Option [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares Subject to Issuance, Outstanding	1,901,298	235,478
Number of Shares Subject to Issuance, Granted	269,543	1,689,882
Number of Shares Subject to Issuance, Forfeited or expired	(160,294)	(23,749)
Number of Shares Subject to Issuance, Exercised	(345,127)	(313)
Number of Shares Subject to Issuance, Outstanding	1,665,420	1,901,298
Number of Shares Subject to Issuance, Exercisable	1,051,358
Weighted-average Exercise Price, Outstanding	$ 1.46	$ 5.95
Weighted-average Exercise Price, Granted	1.31	1.18
Weighted-average Exercise Price, Forfeited or expired	2.58	25.82
Weighted-average Exercise Price, Exercised	1.13	3.12
Weighted-average Exercise Price, Outstanding	1.40	1.46
Weighted-average Exercise Price, Exercisable	$ 1.38
Weighted-average Remaining Contractual Term, Outstanding Beginning	4 years 6 months 4 days	4 years 5 months 9 days
Weighted-average Remaining Contractual Term, Outstanding Ending	3 years 7 months 13 days	4 years 6 months 4 days
Weighted-average Remaining Contractual Term, Exercisable	3 years 7 months 6 days
Outstanding-Aggregate Intrinsic Value	$ 2,414,446
Exercisable-Aggregate Intrinsic Value	$ 1,538,447

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Stock Options (Details)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding - Number Of Options | shares	1,665,420
Options Outstanding - Weighted-Average Remaining Life	3 years 7 months 13 days
Options Outstanding - Weighted Average Exercise Price	$ 1.40
Options Exercisable - Number of Options | shares	1,051,358
Options Exercisable - Weighted Average Exercise Price	$ 1.38
Exercise Price One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices - Lower Range Limit	1.15
Range of Exercise Prices - Upper Range Limit	$ 1.56
Options Outstanding - Number Of Options | shares	1,493,298
Options Outstanding - Weighted-Average Remaining Life	3 years 7 months 28 days
Options Outstanding - Weighted Average Exercise Price	$ 1.16
Options Exercisable - Number of Options | shares	969,236
Options Exercisable - Weighted Average Exercise Price	$ 1.16
Exercise Price Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices - Lower Range Limit	1.75
Range of Exercise Prices - Upper Range Limit	$ 2.79
Options Outstanding - Number Of Options | shares	61,000
Options Outstanding - Weighted-Average Remaining Life	4 years 6 months 11 days
Options Outstanding - Weighted Average Exercise Price	$ 2.10
Options Exercisable - Number of Options | shares	11,000
Options Exercisable - Weighted Average Exercise Price	$ 2.79
Exercise Price Three [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices - Lower Range Limit	3.12
Range of Exercise Prices - Upper Range Limit	$ 5.68
Options Outstanding - Number Of Options | shares	111,122
Options Outstanding - Weighted-Average Remaining Life	2 years 7 months 17 days
Options Outstanding - Weighted Average Exercise Price	$ 4.19
Options Exercisable - Number of Options | shares	71,122
Options Exercisable - Weighted Average Exercise Price	$ 4.11

Stockholders' Equity - Schedu52

Stockholders' Equity - Schedule of Restricted Stock Units Outstanding (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Number of Shares Outstanding Beginning Balance	67,077	31,807
Number of Shares Granted	86,271	122,119
Number of Shares Vested and Settled in Shares	(120,634)	(86,849)
Number of Shares Canceled / Expired
Number of Shares Outstanding Ending Balance	32,714	67,077
Weighted Average Grant Date Fair Value Outstanding Beginning Balance	$ 1.56	$ 3.93
Weighted Average Grant Date Fair Value Granted	1.76	1.24
Weighted Average Grant Date Fair Value Vested and Settled in Shares	1.60	1.98
Weighted Average Grant Date Fair Value Canceled / Expired
Weighted Average Grant Date Fair Value Outstanding Ending Balance	1.89	1.56
Aggregate Intrinsic Value Outstanding Beginning Balance
Aggregate Intrinsic Value Outstanding Ending Balance	$ 26,010

Stockholders' Equity - Schedu53

Stockholders' Equity - Schedule of Share Based Compensation Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Equity [Abstract]
Stock options	$ 775,338	$ 686,797
Restricted stock units	160,561	191,315
Share-based Compensation, Total	$ 935,899	$ 878,112

Stockholders' Equity - Schedu54

Stockholders' Equity - Schedule of Stock Based Compensation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Expense	$ 935,899	$ 878,112
General and Administrative [Member]
Share-based Compensation Expense	873,392	829,208
Research and Development [Member]
Share-based Compensation Expense	$ 62,507	$ 48,904

Issuance of Common Stock (Detai

Issuance of Common Stock (Details Narrative) - USD ($)	Jun. 20, 2016	Jun. 15, 2016	Feb. 24, 2016	Jan. 14, 2015	Dec. 31, 2016	Nov. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Class of Stock [Line Items]
Proceeds from issuance of offering							$ 1,902,000
Number of common value stock repurchase during the period							$ (1,096,608)
Warrant to purchase of common stock shares					153,000	153,000	153,000
Warrants exercise price per share					$ 2.20		$ 2.20
Proceeds from Issuance of Warrants					$ 337,000	$ 337,000	$ 336,600
Former Executives [Member]
Class of Stock [Line Items]
Number of common stock shares repurchased during the period			979,114
Number of common value stock repurchase during the period			$ 1,096,608
Common Stock [Member]
Class of Stock [Line Items]
Stock issued during period, shares, new issues							1,200,000	4,857,143
Number of common stock shares repurchased during the period							(979,114)
Number of common value stock repurchase during the period							$ (979)
Common Stock [Member] | Public Offering [Member]
Class of Stock [Line Items]
Stock issued during period, shares, new issues		1,200,000		4,857,143
Shares issued, price per share		$ 1.75		$ 1.75
Proceeds from issuance of offering		$ 1,902,000		$ 7,845,000
Payments of stock issuance costs		$ 124,000		$ 214,000
Warrant to purchase of common stock shares		600,000
Warrants exercisable term		5 years
Warrants exercise price per share		$ 2.20
Underwriters exercised their right to purchase number of warrants	23,320
Proceeds from Issuance of Warrants	$ 2
Common Stock [Member] | Public Offering [Member] | Overallotment Option [Member]
Class of Stock [Line Items]
Shares issued, price per share		$ 1.63
Warrant to purchase of common stock shares		90,000
Warrants exercise price per share		$ 0.0001
Overallotment option for the underwriters to purchase number of maximum common stock		180,000

Commitments and Contingencies56

Commitments and Contingencies (Details Narrative) - USD ($)	May 19, 2016	Oct. 02, 2014	Sep. 30, 2014	Dec. 31, 2016	Dec. 31, 2015
Commitments And contingencies [Line Items]
Rent expense				$ 406,308	$ 409,460
Percentage of maximum compensation				35.00%
Percentage of contribute a matching contribution				50.00%
Percentage of eligible employee's deferral election				6.00%
Matching contributions				$ 27,163	$ 32,398
Accrued Expenses				$ 91,000
Lease Agreement [Member]
Commitments And contingencies [Line Items]
Leases expiration date description				March 2,018
Royalty and License Agreements [Member]
Commitments And contingencies [Line Items]
Payment of fees				$ 1,800
Percentage of royalties payment				0.005%
Royalty and License Agreements [Member] | Minimum [Member]
Commitments And contingencies [Line Items]
Gross sales				$ 2,000,000
Royalty and License Agreements [Member] | Minimum [Member] | Mr. Messina [Member] | Patents and Copyrights [Member]
Commitments And contingencies [Line Items]
Percentage of royalties payment				0.0025%
Gross sales				$ 52,000,000
Royalty and License Agreements [Member] | Maximum [Member]
Commitments And contingencies [Line Items]
Gross sales				$ 52,000,000
Severance Agreement [Member] | Bill White [Member]
Commitments And contingencies [Line Items]
Stock option vesting period			12 months
Agreement term			3 years
Executive Employment Agreement [Member] | Dr. William Roof [Member]
Commitments And contingencies [Line Items]
Annual base salary		$ 250,000
Salary term description		Under the agreement, if Dr. Roof is terminated for any reason other than cause, it would pay Dr. Roof the greater as follows: (a) 12 months if the Separation Date occurs less than 24 months after commencement of Dr. Roof’s employment as Chief Executive Officer, and (b) 24 months if the Separation Date occurs 24 months or more after the commencement of Dr. Roof’s employment as Chief Executive Officer.
Executive Employment Agreement [Member] | Mr. Robert Williamsen [Member]
Commitments And contingencies [Line Items]
Annual base salary	$ 225,000
Stock-based compensation	$ 149,000

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details)	Dec. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,017	$ 322,913
2,018	82,327
Total	$ 405,240

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	Feb. 24, 2016	Sep. 30, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Payment of committed				$ 417,500	$ 170,000
Amortization expense				470,000	$ 117,500
Lease term			10 years
Annual rent			$ 96,010
Percentage of annual increase of rent plus cpi			1.00%
Payments for rent			$ 124,001	$ 94,783
Lease obligation			100,000
Number of common stock repurchases during the period			$ (1,096,608)
Executives [Member]
Related Party Transaction [Line Items]
Payment of committed		$ 587,500
Non-compete intangible asset		$ 587,500
Non-compete intangible asset amortized over period		15 months
Executives [Member] | Stock Repurchase Agreement [Member]
Related Party Transaction [Line Items]
Number of common stock shares repurchases during the period	979,114
Number of common stock repurchases during the period	$ 1,096,608

Quarterly Financial Data (Una59

Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 734,000	$ 1,214,000	$ 940,000	$ 951,000	$ 1,537,000	$ 2,199,000	$ 2,292,000	$ 987,000	$ 3,838,963	$ 7,014,665
Gross profit	587,000	946,000	749,000	788,000	976,000	1,396,000	1,041,000	595,000	3,069,915	4,008,306
Loss from operations	(1,092,000)	(730,000)	(1,779,000)	(2,149,000)	(1,556,000)	(1,379,000)	(1,218,000)	(1,327,000)
Net loss	$ (1,090,000)	$ (727,000)	$ (1,775,000)	$ (2,143,000)	$ (1,550,000)	$ (1,268,000)	$ (1,214,000)	$ (1,302,000)	$ (5,734,681)	$ (5,333,951)
Net loss per common share: Basic	$ (0.10)	$ (0.07)	$ (0.19)	$ (0.22)	$ (0.16)	$ (0.13)	$ (0.12)	$ (0.14)
Net loss per common share: Diluted	$ (0.10)	$ (0.07)	$ (0.19)	$ (0.22)	$ (0.16)	$ (0.13)	$ (0.12)	$ (0.14)