CurAegis (CRGS) 10-Q 12 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 11, 2016
Entity Registrant Name	TORVEC INC
Entity Central Index Key	1,063,197
Trading Symbol	tovc
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		45,796,765
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Preferred Class C [Member]
Stockholders' Equity:
Preferred stock, $.01 par value, 100,000,000 shares authorized	$ 162,000	$ 162,000
Preferred stock, value	162,000	162,000
Series C2 Preferred Stock [Member]
Stockholders' Equity:
Preferred stock, $.01 par value, 100,000,000 shares authorized	250,000	250,000
Preferred stock, value	250,000	250,000
Series C3 Preferred Stock [Member]
Stockholders' Equity:
Preferred stock, $.01 par value, 100,000,000 shares authorized	45,000
Preferred stock, value	45,000
Preferred Class A [Member]
Stockholders' Equity:
Preferred stock, $.01 par value, 100,000,000 shares authorized	5,000	5,000
Preferred stock, value	5,000	5,000
Preferred Class B [Member]
Stockholders' Equity:
Preferred stock, $.01 par value, 100,000,000 shares authorized	1,000	1,000
Preferred stock, value	1,000	1,000
Cash and cash equivalents	1,547,000	$ 1,241,000
Accounts receivable	1,000
Prepaid expenses and other current assets	44,000	$ 37,000
Total current assets	1,592,000	1,278,000
Software (net)	291,000	303,000
Property and equipment (net)	146,000	160,000
Total non-current assets	437,000	463,000
Total Assets	2,029,000	1,741,000
Notes payable	2,000	1,000
Accounts payable	132,000	84,000
Accrued liabilities	89,000	$ 67,000
Deferred revenue	9,000
Total current liabilities	232,000	$ 152,000
Notes payable, non-current	5,000	6,000
Total Liabilities	$ 237,000	$ 158,000
Commitments and other matters (Note 11)
Preferred stock, $.01 par value, 100,000,000 shares authorized
Preferred stock, value
Common stock, $.01 par value, 400,000,000 shares authorized; shares issued and outstanding at March 31, 2016 and December 31, 2015: 45,796,765, respectively	$ 458,000	$ 458,000
Additional paid-in capital	73,064,000	71,963,000
Retained Earnings (Accumulated Deficit)	(72,193,000)	(71,256,000)
Total Stockholders' Equity	1,792,000	1,583,000
Total Liabilities and Stockholders' Equity	$ 2,029,000	$ 1,741,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Preferred Class C [Member]
Preferred stock, shares authorized (in shares)	16,250,000	16,250,000
Preferred stock, cumulative dividend per share (in dollars per share)	$ 0	$ 0
Preferred stock, shares issued (in shares)	16,250,000	16,250,000
Preferred stock, shares outstanding (in shares)	16,250,000	16,250,000
Series C2 Preferred Stock [Member]
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, cumulative dividend per share (in dollars per share)	$ 0	$ 0
Preferred stock, shares issued (in shares)	25,000,000	25,000,000
Preferred stock, shares outstanding (in shares)	25,000,000	25,000,000
Series C3 Preferred Stock [Member]
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, cumulative dividend per share (in dollars per share)	$ 0	$ 0
Preferred stock, shares issued (in shares)	4,478,000	0
Preferred stock, shares outstanding (in shares)	4,478,000	0
Preferred Class A [Member]
Preferred stock, shares authorized (in shares)	3,300,000	3,300,000
Preferred stock, cumulative dividend per share (in dollars per share)	$ 0.40	$ 0.40
Preferred stock, shares issued (in shares)	543,221	587,101
Preferred stock, shares outstanding (in shares)	543,221	587,101
Preferred Class B [Member]
Preferred stock, shares authorized (in shares)	300,000	300,000
Preferred stock, cumulative dividend per share (in dollars per share)	$ 0.50	$ 0.50
Preferred stock, shares issued (in shares)	67,500	67,500
Preferred stock, shares outstanding (in shares)	67,500	67,500
Preferred stock, shares authorized (in shares)	100,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares issued (in shares)	45,796,765	45,796,765
Common stock, shares outstanding (in shares)	45,796,765	45,796,765

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue	$ 1,000
Cost of revenue	23,000
Gross Margin (Loss)	(22,000)
Research and development:
R&D costs, excluding stock-based compensation	485,000	$ 272,000
Stock-based compensation	7,000	2,000
Total research and development	492,000	274,000
General and administrative:
G&A costs, excluding stock-based compensation	400,000	253,000
Stock-based compensation	24,000	53,000
Total general and administrative	424,000	306,000
Total operating costs and expenses	916,000	580,000
Loss from operations	(938,000)	(580,000)
Other income	1,000	3,000
Loss before income taxes	$ (937,000)	$ (577,000)
Income taxes
Net Loss	$ (937,000)	$ (577,000)
Preferred stock beneficial conversion feature	549,000
Preferred stock dividends	62,000	$ 64,000
Net Loss attributable to common stockholders	$ (1,548,000)	$ (641,000)
Net Loss per share attributable to common stockholders:
Basic and Diluted (in dollars per share)	$ (0.03)	$ (0.01)
Weighted average number of shares of common stock:
Basic and Diluted (in shares)	45,796,000	45,754,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (937,000)	$ (577,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, Depletion and Amortization	41,000	33,000
Stock-based compensation	$ 31,000	53,000
Loss on sale / disposition of fixed assets		$ 2,000
Changes in working capital items:
Accounts receivable	$ (1,000)
Prepaid expenses and other current assets	(7,000)	$ 4,000
Accounts payable and other accrued expenses	71,000	$ 31,000
Deferred revenue	9,000
Net cash used in operating activities	(793,000)	$ (454,000)
Cash flows from investing activities:
Purchase of capitalized software	$ (15,000)	(6,000)
Proceeds from sale of fixed assets		2,000
Net cash used in investing activities	$ (15,000)	$ (4,000)
Cash flows from financing activities:
Proceeds from sales of preferred stock	1,119,000
Costs incurred in issuance of preferred stock	$ (5,000)
Repayments of notes payable		$ (2,000)
Net cash provided by (used in) financing activities	$ 1,114,000	(2,000)
Net increase (decrease) in cash and cash equivalents	306,000	(460,000)
Cash and cash equivalents at beginning of period	1,241,000	3,724,000
Cash and cash equivalents at end of period	$ 1,547,000	3,264,000
Supplemental Disclosures:
Conversion of preferred dividends		$ 65,000

Note 1 - The Company and Basis

Note 1 - The Company and Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE 1 — THE COMPANY AND BASIS OF PRESENTATION Torvec, Inc. (“the Company”) was incorporated as a New York business corporation on September 25, 1996. The Company develops and markets advanced technologies in the areas of power, safety and wellness. Currently, the Company is focusing its commercialization strategies on the following technologies: (i) the CURA system (Circadian User Risk Assessment) and (ii) the Aegis hydraulic pump. The Company has not had any significant revenue-producing operations. Management announced a name change in connection with the establishment of its two business divisions. The CURA division is engaged in the fatigue management business and the Aegis division is engaged in the power and hydraulic business. The company name will be changed to CurAegis Technologies, Inc. at the 2016 shareholders meeting. Until then the company is doing business as CurAegis Technologies, a Torvec company. The company has created the CURA system to reduce fatigue risk in the workplace and help individuals manage their sleep and overcome fatigue. The CURA system consists of four individual elements: ● real-time alertness monitoring using the myCadian watch, ● panic-button and man-down system, ● CURA software, and ● the Z-Coach wellness program. Our goal with the Aegis hydraulic pump technology is to give the marketplace a revolutionary new concept in hydraulic pumps and motors that will be: ● smaller and lighter than conventional pumps and motors, ● more efficient, ● as reliable, ● price competitive, and ● unique in its ability to scale larger, allowing more powerful pumps and motors. It is important to note, regarding both the CURA and Aegis products, that the cycle time from the initiation of the sales process to revenue realization can be highly variable especially in a start-up entity. In addition to the activities to be undertaken to implement our plan of operations, we may expand and/or refocus our activities depending upon future circumstances and developments. Management Plans On December 8, 2015, the company commenced the offering of up to ten million newly issued preferred shares with an offering price of $0.25 per share of Series C-3 Preferred Shares in a private placement pursuant to Rule 506(c) of Regulation D under the Securities Act of 1933. The offering has been made only to “accredited investors” as defined in Rule 501(a) of Regulation D under the Securities Act of 1933. The Company closed on the sale of $1,119,000 of the Company’s Series C-3 Voting Convertible Preferred Stock during the first quarter of 2016 and has extended the C-3 offering through June 3, 2016. Under the terms of the offering, we may raise gross proceeds of up to an additional $1,381,000 from the sale of Series C-3 preferred stock. No assurance can be given that we will raise the maximum amount or any additional amount from the sale of our Series C-3 preferred stock before the offering expires. Management will continue to use its best efforts to develop financing opportunities to fund the development and commercialization of the CURA and Aegis products. Management estimates that the 2016 cash needs, based on its current development and product plans, will be in the range of $2.2 million to $3.5 million. The Company’s ability to fund its current and future commitments out of its available cash depends on a number of factors. These factors include the Company’s ability to (i) launch and generate sales from the CURA division; (ii) decrease research and overhead expenses and (iii) raise additional funds through equity offerings. During the three months ended March 31, 2016, the Company raised gross proceeds $1,119,000 from the private placement of its Series C-3 preferred stock. As of March 31, 2016, the Company had approximately $1,547,000 in cash and cash equivalents which may not be sufficient to cover the Company’s future working capital requirements if these and other factors are not met. If the Company cannot generate sufficient cash from its operations, the Company may need to raise additional funds in the future in order to fund its working capital needs and pursue its growth strategy, although there can be no assurances, management believes that sources for these additional funds will be available through either current or future investors. Since inception, we have financed our operations by the sale of our securities and debt financings. We may need to raise additional funds in the future to fund our working capital needs, to fund more aggressive expansion of our business, to complete development, testing and marketing of our products, or to make strategic acquisitions or investments. We may require additional equity or debt financings, collaborative arrangements with corporate partners or funds from other sources for these purposes. No assurance can be given that necessary funds will be available for us to finance our development on acceptable terms, if at all. Furthermore, such additional financings may involve dilution of our shareholders or may require that we relinquish rights to certain of our technologies or products. In addition, we may experience operational difficulties and delays due to working capital restrictions. If adequate funds are not available from operations or additional sources of financing, we may have to delay or scale back our growth plans.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Significant Accounting Policies [Text Block]	NOTE 2— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation: Use of Estimates: Reclassifications: Cash and Cash Equivalents: Accounts Receivable Software, Property and Equipment: Software (in years) 3 Office equipment (in years) 5 - 7 Leasehold improvements lesser of useful life or lease term Depreciation and amortization are computed using the straight-line method. Betterments, renewals and extraordinary repairs that extend the life of the assets are capitalized. Other repairs and maintenance costs are expensed when incurred. When disposed, the cost and accumulated depreciation applicable to assets retired are removed from the accounts and the gain or loss on disposition is recognized in other income (expense). Depreciation and amortization expense for the three months ended March 31, 2016 and 2015 amounted to $41,000 and $33,000, respectively. Whenever events or circumstances indicate, our long-lived assets including any intangible assets with finite useful lives, are tested for impairment by using the estimated future cash flows directly associated with, and that are expected to arise as a direct result of, the use of the assets. If the carrying amount exceeds the estimated undiscounted cash flows, impairment may be indicated. The carrying amount is compared to the estimated discounted cash flows and if there is an excess, such amount is recorded as impairment. During the three months ended March 31, 2016 and 2015, we recorded no impairment charges. Fair Value of Financial Instruments: , Level 1: Quoted market prices in active markets for identical assets or liabilities Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs that are not corroborated by market data The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The Financial Accounting Standards Board’s (“FASB”) guidance for the disclosure about fair value of financial instruments requires disclosure of an estimate of the fair value of certain financial instruments. The fair value of financial instruments pursuant to FASB’s guidance for the disclosure about fair value of financial instruments approximated their carrying values at March 31, 2016. The carrying amount of cash and cash equivalents, prepaid expenses and other current assets, accounts payable and accrued expenses approximates their fair value due to their short maturity. The carrying amount of notes payable approximates fair value because stated or implied interest rates approximate current interest rates that are available for debt with similar terms. Revenue Recognition and Deferred Revenue : Research and Development and Patents: Patent costs for the three months ended March 31, 2016 and 2015 amounted to $17,000 and $38,000, respectively, and are included in general and administrative expenses. Stock-based Compensation: No tax benefits were attributed to the stock-based compensation expense because a valuation allowance was maintained for substantially all net deferred tax assets. FASB ASC 505-50, “Equity-Based Payments to Non-Employees,” requires all share-based payments to non-employees, including grants of stock options, to be recognized in the consolidated financial statements as compensation expense generally over the service period of the consulting arrangement or until performance conditions are expected to be met. Using a Black-Scholes valuation model, we periodically reassess the fair value of non-employee options until service conditions are met, which generally aligns with the vesting period of the options, and we adjust the expense recognized in the consolidated financial statements accordingly. FASB ASC 718-20 requires that modifications of the terms or conditions of equity awards be treated as an exchange of the original award for a new award. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified. Income Taxes: We account for uncertain tax positions using a more-likely-than-not recognition threshold based on the technical merits of the tax position taken. Tax benefits that meet the more-likely-than-not recognition threshold should be measured as the largest amount of tax benefits, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement in the financial statements. It is our policy to recognize interest and penalties related to income tax matters as general and administrative expenses. As of March 31, 2016 and December 31, 2015, there were no accrued interest or penalties related to uncertain tax positions. Loss per Common Share: Recent Accounting Pronouncements: On March 30, 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments as to how excess tax benefits and a company's payments for tax withholdings should be classified. The standard is effective for fiscal periods beginning after December 15, 2016, with early adoption permitted. The Company is evaluating the impact of the adoption of this standard on our consolidated financial statements and related disclosures. In April, 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” to clarify two aspects of Topic 606: (i) identifying performance obligations and (ii) the licensing implementation guidance, while retaining the related principles for those areas. The Company is evaluating the impact of the adoption of this standard on our consolidated financial statements and related disclosures.

Note 3 - Cura Software

Note 3 - Cura Software	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Research, Development, and Computer Software Disclosure [Text Block]	NOTE 3 –CURA SOFTWARE The Company has invested $351,000 in software for the CURA division. These assets are being amortized over an estimated useful life of 3 years. As of March 31, 2016 accumulated amortization of capitalized software was $60,000 resulting in a net book value of $291,000. With the initial sale of the Z-Coach aviation product in the first quarter of 2016, the Company charged $19,000 to cost of revenue and $8,000 to general and administrative expenses for amortization of the CURA software. Future amortization expense is expected to be $85,000 in 2016, $127,000 in 2017 and $79,000 in 2018.

Note 4 - Property and Equipment

Note 4 - Property and Equipment	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	NOTE 4 –PROPERTY AND EQUIPMENT At March 31, 2016 and December 31, 2015, property and equipment consist of the following: March 31, 2016 December 31, 2015 Office equipment $ 235,000 $ 235,000 Shop equipment 226,000 226,000 Leasehold improvements 253,000 253,000 714,000 714,000 Less accumulated depreciation 568,000 554,000 Net property and equipment $ 146,000 $ 160,000 Depreciation expense for the three months ended March 31, 2016 and 2015 was $14,000 and $33,000 respectively.

Note 5 - Business Segments

Note 5 - Business Segments	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	NOTE 5 — BUSINESS SEGMENTS The Company operates in two divisions: the CURA division and the Aegis division. The CURA division is focused on the fatigue and wellness business and the Aegis division is currently developing unique applications in the power and hydraulic business. Information concerning the Company’s operations by reportable segment for the three months ended March 31, 2016 for each of the company’s business segments follows: CURA Aegis Corporate Total Sales $ 1,000 $ - $ - $ 1,000 Gross margin (loss) $ (22,000 ) $ - $ - $ (22,000 ) Operating costs and expenses $ 447,000 $ 167,000 $ 302,000 $ 916,000 Loss from operations $ 470,000 $ 167,000 $ 301,000 $ 938,000 Assets $ 292,000 $ 105,000 $ 1,632,000 $ 2,029,000 Capital expenditures during the first quarter of 2016 for the CURA and Aegis segments were $15,000 and zero, respectively. During the first quarter of 2016, the Company recognized depreciation and amortization expense of $28,000 and $11,000 for the CURA and Aegis divisions, respectively. Depreciation expense not allocated to these business segments was $2,000 in the first quarter of 2016. Information concerning the Company’s operations by reportable segment for the three months ended March 31, 2015 for each of the company’s business segments follows: CURA Aegis Corporate Total Sales $ - $ - $ - $ - Gross margin (loss) $ - $ - $ - $ - Operating costs and expenses $ 52,000 $ 222,000 $ 306,000 $ 580,000 Loss from operations $ 52,000 $ 222,000 $ 303,000 $ 580,000 Assets $ - $ 183,000 $ 3,333,000 $ 3,516,000 Capital expenditures during the first quarter of 2015 for the CURA and Aegis segments were zero and $6,000, respectively. During the first quarter of 2015, the Company recognized depreciation and amortization expense of zero and $21,000 for the CURA and Aegis divisions, respectively. Depreciation expense not allocated to these business segments was $12,000 in the first quarter of 2015.

Note 6 - Notes Payable

Note 6 - Notes Payable	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Debt Disclosure [Text Block]	NOTE 6— NOTES PAYABLE In 2015, we entered into a capital lease for a copy machine over a 5-year term, with a fair market value buyout option. The capitalized value of the lease was approximately $8,900, and the monthly payment is $170 with an implicit interest rate of approximately 5.3%. As of March 31, 2016 and December 31, 2015, the outstanding principal balance due on this lease agreement was approximately $7,000.

Note 7 - Preferred and Common S

Note 7 - Preferred and Common Stock	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	NOTE 7 — PREFERRED and COMMON STOCK Common Stock We have authorized 400,000,000 shares of common stock, with a par value of $0.01 per share. We did not issue any shares of common stock during the three months ended March 31, 2016. During the three months ended March 31, 2015, the Company issued 37,743 shares of common stock in connection with a conversion notice received from a Series A convertible preferred shareholder. The company issued 21,380 shares of common stock in connection with this notice and an additional 16,363 in common shares attributed to dividends earned on these converted shares. Preferred Stock Our certificate of incorporation permits the Company to issue up to 100,000,000 shares of $.01 par value preferred stock. The board of directors has the authority to allocate these shares into as many separate classes of preferred as it deems appropriate and with respect to each class, designate the number of preferred shares issuable and the relative rights, preferences, seniority with respect to other classes and to our common stock and any limitations and/or restrictions that may be applicable without obtaining shareholder approval. Class A Preferred Stock The holders of the Class A Preferred are entitled to receive cumulative preferential dividends in the amount of $.40 per share of Class A Preferred for each annual dividend period. Dividends payable on the Class A Preferred will be paid in cash out of any funds legally available for the payment of dividends or, in the discretion of the board, will be paid in Class A Preferred at a rate of 1 share of Class A Preferred for each $4.00 of dividends. If dividends are paid in shares of Class A Preferred, such dividend shares are not entitled to accumulate additional dividends and themselves may be converted into the common stock of the Company on a one for one basis. Holders of Class A Preferred are permitted to request that dividends payable in Class A Preferred be immediately converted into shares of our common stock. At times, our board may elect to settle the dividends through the issuance of common stock in lieu of cash. Accumulated and unpaid dividends on the Class A Preferred will not bear interest. Class A Preferred shares are also entitled to participate pro rata in dividends declared and/or distributions made with respect to all classes of our outstanding equity. We may, in the absolute discretion of our board, redeem at any time and from time to time from any source of funds legally available any and all of the outstanding Class A Preferred at the redemption price of $4.00 per Class A Preferred, plus all unpaid accumulated dividends payable with respect to each Class A Preferred Share. We did not convert any shares of preferred stock during the three months ended March 31, 2016. During the three months ended March 31, 2015, the Company issued 37,743 shares of common stock in connection with a conversion notice received from a Series A convertible preferred shareholder. The company issued 21,380 shares of common stock in connection with this notice and an additional 16,363 in common shares attributed to dividends earned on these converted shares. At March 31, 2016, there were 543,221 outstanding shares of Class A Preferred stock, of which 8,709 shares resulted from the settlement of dividends due to conversion, and those shares no longer accrue dividends. The value of dividends payable upon the conversion of the remaining 534,512 outstanding shares of Class A Preferred stock amounted to approximately $2,378,000 at March 31, 2016. The value of dividends payable upon the conversion of the remaining 534,512 outstanding shares of Class A Preferred stock amounted to approximately $2,325,000 at December 31, 2015. In the event of a liquidation, dissolution and winding up of the Company, and subject to the liquidation rights and privileges of our Class C Preferred shareholders, Class A Preferred shareholders have a liquidation preference with respect to all accumulated and unsettled dividends. The value of the Class A Preferred shareholders’ liquidation preference was approximately $2,378,000 and $2,325,000 at March 31, 2016 and December 31, 2015, respectively. In the event of liquidation, dissolution or winding up of the Company, unpaid accumulated dividends on the Class A Preferred are payable in Class A Preferred at a rate of 1 share of Class A Preferred for each $4.00 of dividends. Class B Preferred Stock Each Class B Preferred Share is convertible after a one year holding period, at the holder’s election, into one share of our common stock or one share of the common stock of Iso-Torque Corporation. The conversion rate is subject to adjustment in the event of the issuance of the Company’s or Iso-Torque Corporation’s common stock as a dividend or distribution and in the case of the subdivision or combination of such common stock. The Class B Preferred has no voting rights, except with respect to matters directly impacting upon the rights and privileges accorded to such Class. Subject to the dividend rights and privileges of our Class A Preferred, the holders of the Class B Preferred are entitled to receive cumulative dividends in the amount of $.50 per share of Class B Preferred for each annual dividend period. Dividends payable on the Class B Preferred will be paid in cash out of any funds legally available for the payment of dividends or, in the discretion of the board, will be paid in Class B Preferred at a rate of 1 share of Class B Preferred for each $5.00 of dividends. If dividends are paid in shares of Class B Preferred, such dividend shares are not entitled to accumulate additional dividends and themselves may be converted into the common stock of the Company on a one for one basis. Holders of Class B Preferred are permitted to request that dividends payable in Class B Preferred be immediately converted into shares of our common stock. Accumulated and unpaid dividends on the Class B Preferred will not bear interest. Class B Preferred shares are also entitled to participate pro rata in dividends declared and/or distributions made with respect to all classes of our outstanding equity. We may, in the absolute discretion of our board, redeem at any time and from time to time from any source of funds legally available any and all of the outstanding Class B Preferred at the redemption price of $5.00 per Class B Preferred, plus all unpaid accumulated dividends payable with respect to each Class B Preferred Share. Depending upon our cash position, from time to time we may request that a converting preferred shareholder receiving dividends in cash consent to receive shares of restricted common stock in lieu thereof. For the three months ended March 31, 2016 and 2015, we settled no Class B Preferred dividends. At March 31, 2016 and December 31, 2015, dividends payable upon the conversion of 67,500 outstanding shares of Class B Preferred amounted to approximately $361,000 and $353,000, respectively. In the event of liquidation, dissolution and winding up of the Company, and subject to the liquidation rights and privileges of our Class C Preferred shareholders and our Class A Preferred shareholders, Class B Preferred shareholders have a liquidation preference with respect to all accumulated and unsettled dividends. The value of the Class B Preferred shareholders’ liquidation preference was $361,000 and $353,000 at March 31, 2016 and December 31, 2015, respectively. In the event of a liquidation, dissolution or winding up of the Company, unpaid accumulated dividends on the Class B Preferred are payable in Class B Preferred shares at a rate of 1 share of Class B Preferred for each $5.00 of dividends. Series C Preferred Stock The Series C Preferred shares have a liquidation preference at their stated value per share of $0.40 that is senior to our common stock, and the Company’s Class A Non-Voting Cumulative Convertible Preferred Shares and Class B Non-Voting Cumulative Convertible Preferred Shares. The liquidation preference is payable upon a liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or upon a deemed liquidation of the Company. The Series C Preferred shares have no right to receive dividends and have no redemption right. The Series C Preferred shares vote with the common stock on an as-converted basis. Cumulatively through March 31, 2016, Series C Preferred shareholders have converted no shares of Series C Preferred into common stock. At March 31, 2016 and December 31, 2015, there were 16,250,000 shares of Series C Preferred stock outstanding. The value of the Series C Preferred shareholders’ liquidation preference was $6,500,000 at March 31, 2016 and December 31, 2015. Series C-2 Preferred Stock Each Series C-2 Preferred Share is convertible, at the holder’s election, into one share of our common stock, par value $0.01 per share. The conversion rate is subject to adjustment in the event of the issuance of common stock as a dividend or distribution, and the subdivision or combination of the outstanding common stock or a reorganization, recapitalization, reclassification, consolidation or merger of the Company. The Series C-2 Preferred Shares have a liquidation preference at their stated value per share of $0.20 that ranks pari passu to our existing Series C Voting Convertible Preferred Shares and is senior to our common stock, and our Class A Non-Voting Cumulative Convertible Preferred Shares and Class B Non-Voting Cumulative Convertible Preferred Shares. The liquidation preference is payable upon a liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or upon a deemed liquidation of the Company. A deemed liquidation includes, unless decided by the holders of at least two-thirds of the Series C-2 Preferred Shares, any consolidation, merger, or reorganization of the Company in which the shareholders of the Company own less than fifty percent of the voting power of the resultant entity, or an acquisition to which the Company is a party in which at least fifty percent of the Company’s voting power is transferred, or the sale, lease, exclusive license or transfer of all or substantially all of the assets or intellectual property of the Company other than to a wholly owned subsidiary. The Series C-2 Preferred Shares are not entitled to receive preferred dividends and have no redemption right, but are entitled to participate, on an as converted basis; with holders of outstanding shares of common stock in dividends and distributions on liquidation after all preferred shares have received payment in full of any preferred dividends or liquidation preferences. The Series C-2 Preferred Shares vote with the common stock on an as-converted basis. We may not, without approval of the holders of at least two-thirds of the Series C-2 Preferred Shares, (i) create any class or series of stock that is pari passu or senior to the Series C-2 Preferred Shares; (ii) create any class or series of stock that would share in the liquidation preference of the Series C-2 Preferred Shares or that is entitled to dividends payable other than in common stock or Series C-2 Preferred Shares of its own series, (iii) acquire any equity security or pay any dividend, except dividends on a class or series of stock that is junior to the Series C Preferred Shares, payable in such junior stock, (iv) reissue any Series C-2 Preferred Shares, (v) declare or pay any dividend that would impair the payment of the liquidation preference of the Series C-2 Preferred Shares, (vi) authorize or issue any additional Preferred Shares, (vii) change the Certificate of Incorporation to adversely affect the rights of the holders of the Series C-2 Preferred Shares, or (viii) authorize, commit to or consummate any liquidation, dissolution or winding up in which the liquidation preference of the Series C-2 Preferred Shares would not be paid in full. The Series C-2 Preferred Shares will not be and have not been registered under the Securities Act of 1933, as amended, or the Securities Act, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Through March 31, 2016, Series C-2 Preferred shareholders have not converted any shares of Series C-2 Preferred into common stock. At March 31, 2016 and December 31, 2015, there were 25,000,000 shares of Preferred C-2 stock outstanding. The value of the Series C-2 Preferred shareholders’ liquidation preference was $5,000,000 at March 31, 2016 and December 31, 2015. Series C-3 Preferred Stock pari passu As of March 31, 2016, the Company has sold and issued a total of 4,478,000 shares of Series C-3 Voting Convertible Preferred Stock in a private placement transaction, generating gross proceeds of $1,119,000. Direct expenses of approximately $5,000 pertaining to the transaction, consisting of external legal costs, were incurred, resulting in net proceeds of approximately $1,114,000. In conjunction with the issuance of the 4,478,000 shares of Series C-3 Preferred stock, we computed the value of the non-cash beneficial conversion feature associated with the right to convert the shares into common stock on a one-for-one basis. We compared the fair value of our common stock on the date of issuance with the effective conversion price, and determined that the value of the non-cash beneficial conversion feature was approximately $549,000, and is reflected in our condensed consolidated statements of operations for the three months ended March 31, 2016 as an adjustment to arrive at the net loss attributable to common stockholders.

Note 8 - Stock Options

Note 8 - Stock Options	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 8 — STOCK OPTIONS 2011 Stock Option Plan Non-qualified stock options may be granted to our officers, directors, employees and outside consultants. Incentive stock options may be granted only to our employees, including officers and directors who are also employees. In the case of non-qualified stock options, the exercise price may be less than the fair market value of our stock on the date of grant. Stock option grants to non-employees are revalued at each reporting date to reflect the compensation expense over the vesting period. In the case of incentive stock options, the exercise price may not be less than such fair market value and in the case of an employee who owns more than 10% of our common stock, the exercise price may not be less than 110% of such market price. Options generally are exercisable for ten years from the date of grant, except that the exercise period for an incentive stock option granted to an employee who owns more than 10% of our stock may not be greater than five years. During the first quarter of 2016, we granted 15,000 stock options to certain of our existing employees at an exercise price of $0.41 per share, exercisable for 10 years. These options vest in four tranches at a rate of 25% per year on each of the four anniversary dates from the date of grant. Also in the first quarter of 2016, we granted 297,000 incentive stock options to several employees and to our non-employee board members to acquire common shares at an exercise price of $0.34 to $0.53 per share, exercisable for 10 years. This group of options will fully vest upon the trading price of the common stock of the Company reaching $5.00 per share. As of March 31, 2016, there were 2,360,000 stock options outstanding under the 2011 Plan, 1,337,125 of which were vested. At March 31, 2016, there were 640,000 options remaining available for future grant under the 2011 Plan. No 2011 Plan options expired or were exercised during the three month periods ended March 31, 2016 or 2015. For the three months ended March 31, 2016 and 2015, we recorded compensation expense of $31,000 and $12,000, respectively, related to the 2011 Stock Option Plan. Non-Plan Options The expense recognized for options that are granted to consultants (i.e., non-employees) reflect fair value, based on updated valuation assumptions using the Black-Scholes valuation model at each measurement period. Such expense is apportioned over the requisite service period of the consultant, which is concurrent with the vesting dates of the various tranches. As of March 31, 2016, there were a total of 6,965,000 non-plan options outstanding, of which 4,815,000 were fully vested. In the three months ended March 31, 2016 and 2015, zero and 337,500, respectively of non-plan stock options, became vested. During the three months ended March 31, 2016 and 2015, no non-plan stock options were cancelled, respectively. No non-plan stock options were exercised in the three months ended March 31, 2016 or 2015. For the three months ended March 31, 2016 and 2015, we recorded compensation expense of zero and $43,000, respectively, related to the non-plan options. Summary The weighted average grant date fair value of all stock options granted during the three months ended March 31, 2016 and 2015 was $.45 and $.20, respectively. The total grant date fair value of stock options vested during the three months ended March 31, 2016 and 2015 was approximately zero and $653,000, respectively. The fair value of options granted during the three month periods ended March 31, 2016 and 2015 were estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2016 2015 Expected Term (years) 5.1 6.6 Expected forfeiture rate 0 % 0 % Risk-free rate 2.1 % 2.1 % Volatility 132 % 135 % Dividend yield 0 % 0 % Included in the 2016 assumptions above is the impact of 297,000 stock options that were granted under the 2011 Plan that will vest based on certain market conditions, specifically these options will fully vest upon the first day the trading price of the common stock of the Company shall be $5.00 per share. The average risk-free interest rate is based on the U.S. treasury security rate in effect as of the grant date. We determined expected volatility using the historical closing stock price. The expected life was generally determined using the simplified method as we do not believe we have sufficient historical stock option exercise experience on which to base the expected term. The following summarizes the activity of all of our outstanding stock options for the three months ended March 31, 2016 and 2015: Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (years) Value Outstanding at January 1, 2016 9,013,000 $ .57 5.5 $ 33,000 Granted 312,000 .45 Exercised - - Canceled or expired - - Outstanding at March 31, 2016 9,325,000 $ .56 5.4 $ 274,000 Exercisable at March 31, 2016 6,152,125 $ .66 5.1 $ 123,000 As of March 31, 2016, the exercise prices of all outstanding stock options ranged from $.20 per share to $5.00 per share.

Note 9 - Warrants

Note 9 - Warrants	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Stockholders Equity Note Warrants Or Rights [Text Block]	NOTE 9 - WARRANTS The following table summarizes the activity of the outstanding warrants as of March 31, 2016: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding at January 1, 2016 3,315,000 $ 2.04 (A) 4.7 (B) Granted - Expired (4,250 ) $ 0.01 Outstanding at March 31, 2016 3,310,750 $ 2.05 (A) 4.5 (D) $ 112,000 Exercisable at March 31, 2016 2,690,000 $ 1.90 (D) 4.2 (C) $ 111,000 (A) The weighted average exercise price for warrants outstanding as of March 31, 2016 excludes 1,750,000 warrants with no determined exercise price. (B) The weighted average remaining contractual term for warrants outstanding as of March 31, 2016 excludes 743,500 warrants with no expiration date. (C) The weighted average remaining contractual term for warrants exercisable as of March 31, 2016 excludes 118,500 warrants with no expiration date. (D) The weighted average exercise price for warrants exercisable as of March 31, 2016 excludes 1,625,000 warrants with no determined exercise price.

Note 10 - Related Party Transac

Note 10 - Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	NOTE 10 — RELATED PARTY TRANSACTIONS We occupy a leased facility for our corporate headquarters building, located in Rochester, New York, which consists of both executive offices and manufacturing space. The facility is owned by a partnership, with which one of our directors, is associated. In 2014 we extended our lease for a three-year renewal term through May 31, 2018. The current rental rate is $6,256 per month ($75,070 per annum) for the remainder of the current lease term. In addition, we are required to pay a proportionate share of yearly real estate taxes and yearly common area operating costs. The lease agreement has a three-year renewal option that includes a 9% rate increase at the renewal period that includes the period from June 2018 through May 2021. In December 2013, we entered into a consulting agreement with SCIRE Corporation, of which one of our directors is president, to provide us with expertise and advice on hydraulic pump technology and related markets. This consulting agreement expired at December 31, 2015. During the three months ended March 31 2015, we recorded an expense of approximately $18,000 for consulting services and travel costs related to this agreement. In December 2010, we executed a three-year consultant agreement with one of our directors to provide consulting services to us at a rate of $200 per hour. Pursuant to the agreement, we also agreed to pay the consultant an incentive fee equal to $10,000 or proportionate part thereof for each $1,000,000 of revenue or proportionate part thereof actually received by us for a period of five years, provided the definitive agreement with the third party results from the material efforts of the consultant. In December 2013, the agreement was automatically renewed for an additional three years through December 13, 2016. During the three month periods ended March 31, 2016 and 2015, we recorded no expense for services in relation to this agreement.

Note 11 - Commitments and Other

Note 11 - Commitments and Other Matters	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	NOTE 11 — COMMITMENTS AND OTHER MATTERS Leases We occupy a leased facility for our corporate headquarters building, located in Rochester, New York, which consists of both executive offices and manufacturing space. The facility is owned by a partnership in which a Company director is associated. The current rental rate is $6,256 per month ($75,070 per annum) for the remainder of the current lease term. In addition, we are required to pay a proportionate share of yearly real estate taxes and yearly common area operating costs. The lease agreement has a three-year renewal option that includes a 9% rate increase at the renewal period that includes the period from June 2018 through May 2021. Rent expense for the three months ended March 31, 2016 and 2015 was approximately $19,000 and $17,000, respectively. Rent payments required under the extended lease term for the years ending December 31, 2016, 2017, and 2018 amount to approximately $75,000, $75,000 and $31,000, respectively. Employment Agreements On March 24, 2016, the Company’s renewed the employment agreement with the Chief Executive Officer to extend the term of the agreement until December 31, 2018, subject to earlier termination in accordance with its terms. Except for the extension of the term, the employment agreement remains in effect in accordance with its original terms. The executive will continue to be entitled to an annual salary of at least $50,000; provided that if the Company has “Adjusted EBITDA” (as defined in the agreement) of at least $300,000 in any calendar year, then his annual salary shall be at least $200,000 for the following calendar year. The executive is entitled to participate in all employee benefit plans as are provided from time to time for senior executives. If we terminate the CEO without cause, remove him as CEO, or a change in control of the Company occurs, the CEO is entitled to three years’ severance pay, consisting of base pay and any incentive compensation. On March 3, 2016 the Torvec Board of Directors approved a change in the compensation plan for the Chief Financial Officer, in connection with her transition to full time effective March 1, 2016. The annual salary for this executive has been increased to $150,000 effective March 1, 2016 and will increase to $200,000 effective June 1, 2016. This executive is entitled to six months’ severance in the event that the Company terminates their employment status without cause or in the instance of a change in control of the Company.

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Consolidation:
Use of Estimates, Policy [Policy Text Block]	Use of Estimates:
Reclassification, Policy [Policy Text Block]	Reclassifications:
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents:
Receivables, Policy [Policy Text Block]	Accounts Receivable
Software Property And Equipment [Policy Text Block]	Software, Property and Equipment: Software (in years) 3 Office equipment (in years) 5 - 7 Leasehold improvements lesser of useful life or lease term Depreciation and amortization are computed using the straight-line method. Betterments, renewals and extraordinary repairs that extend the life of the assets are capitalized. Other repairs and maintenance costs are expensed when incurred. When disposed, the cost and accumulated depreciation applicable to assets retired are removed from the accounts and the gain or loss on disposition is recognized in other income (expense). Depreciation and amortization expense for the three months ended March 31, 2016 and 2015 amounted to $41,000 and $33,000, respectively. Whenever events or circumstances indicate, our long-lived assets including any intangible assets with finite useful lives, are tested for impairment by using the estimated future cash flows directly associated with, and that are expected to arise as a direct result of, the use of the assets. If the carrying amount exceeds the estimated undiscounted cash flows, impairment may be indicated. The carrying amount is compared to the estimated discounted cash flows and if there is an excess, such amount is recorded as impairment. During the three months ended March 31, 2016 and 2015, we recorded no impairment charges.
Fair Value Measurement, Policy [Policy Text Block]	Fair Value of Financial Instruments: , Level 1: Quoted market prices in active markets for identical assets or liabilities Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs that are not corroborated by market data The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The Financial Accounting Standards Board’s (“FASB”) guidance for the disclosure about fair value of financial instruments requires disclosure of an estimate of the fair value of certain financial instruments. The fair value of financial instruments pursuant to FASB’s guidance for the disclosure about fair value of financial instruments approximated their carrying values at March 31, 2016. The carrying amount of cash and cash equivalents, prepaid expenses and other current assets, accounts payable and accrued expenses approximates their fair value due to their short maturity. The carrying amount of notes payable approximates fair value because stated or implied interest rates approximate current interest rates that are available for debt with similar terms.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition and Deferred Revenue :
In Process Research and Development, Policy [Policy Text Block]	Research and Development and Patents: Patent costs for the three months ended March 31, 2016 and 2015 amounted to $17,000 and $38,000, respectively, and are included in general and administrative expenses.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock-based Compensation: No tax benefits were attributed to the stock-based compensation expense because a valuation allowance was maintained for substantially all net deferred tax assets. FASB ASC 505-50, “Equity-Based Payments to Non-Employees,” requires all share-based payments to non-employees, including grants of stock options, to be recognized in the consolidated financial statements as compensation expense generally over the service period of the consulting arrangement or until performance conditions are expected to be met. Using a Black-Scholes valuation model, we periodically reassess the fair value of non-employee options until service conditions are met, which generally aligns with the vesting period of the options, and we adjust the expense recognized in the consolidated financial statements accordingly. FASB ASC 718-20 requires that modifications of the terms or conditions of equity awards be treated as an exchange of the original award for a new award. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified.
Income Tax, Policy [Policy Text Block]	Income Taxes: We account for uncertain tax positions using a more-likely-than-not recognition threshold based on the technical merits of the tax position taken. Tax benefits that meet the more-likely-than-not recognition threshold should be measured as the largest amount of tax benefits, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement in the financial statements. It is our policy to recognize interest and penalties related to income tax matters as general and administrative expenses. As of March 31, 2016 and December 31, 2015, there were no accrued interest or penalties related to uncertain tax positions.
Earnings Per Share, Policy [Policy Text Block]	Loss per Common Share:
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements: On March 30, 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments as to how excess tax benefits and a company's payments for tax withholdings should be classified. The standard is effective for fiscal periods beginning after December 15, 2016, with early adoption permitted. The Company is evaluating the impact of the adoption of this standard on our consolidated financial statements and related disclosures. In April, 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” to clarify two aspects of Topic 606: (i) identifying performance obligations and (ii) the licensing implementation guidance, while retaining the related principles for those areas. The Company is evaluating the impact of the adoption of this standard on our consolidated financial statements and related disclosures.

Note 2 - Summary of Significa18

Note 2 - Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
software, Property and Equipment Estimated Useful Life [Table Text Block]	Software (in years) 3 Office equipment (in years) 5 - 7 Leasehold improvements lesser of useful life or lease term

Note 4 - Property and Equipme19

Note 4 - Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Property, Plant and Equipment [Table Text Block]	March 31, 2016 December 31, 2015 Office equipment $ 235,000 $ 235,000 Shop equipment 226,000 226,000 Leasehold improvements 253,000 253,000 714,000 714,000 Less accumulated depreciation 568,000 554,000 Net property and equipment $ 146,000 $ 160,000

Note 5 - Business Segments (Tab

Note 5 - Business Segments (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	CURA Aegis Corporate Total Sales $ 1,000 $ - $ - $ 1,000 Gross margin (loss) $ (22,000 ) $ - $ - $ (22,000 ) Operating costs and expenses $ 447,000 $ 167,000 $ 302,000 $ 916,000 Loss from operations $ 470,000 $ 167,000 $ 301,000 $ 938,000 Assets $ 292,000 $ 105,000 $ 1,632,000 $ 2,029,000 CURA Aegis Corporate Total Sales $ - $ - $ - $ - Gross margin (loss) $ - $ - $ - $ - Operating costs and expenses $ 52,000 $ 222,000 $ 306,000 $ 580,000 Loss from operations $ 52,000 $ 222,000 $ 303,000 $ 580,000 Assets $ - $ 183,000 $ 3,333,000 $ 3,516,000

Note 8 - Stock Options (Tables)

Note 8 - Stock Options (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	2016 2015 Expected Term (years) 5.1 6.6 Expected forfeiture rate 0 % 0 % Risk-free rate 2.1 % 2.1 % Volatility 132 % 135 % Dividend yield 0 % 0 %
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (years) Value Outstanding at January 1, 2016 9,013,000 $ .57 5.5 $ 33,000 Granted 312,000 .45 Exercised - - Canceled or expired - - Outstanding at March 31, 2016 9,325,000 $ .56 5.4 $ 274,000 Exercisable at March 31, 2016 6,152,125 $ .66 5.1 $ 123,000

Note 9 - Warrants (Tables)

Note 9 - Warrants (Tables)	3 Months Ended
	Mar. 31, 2016
Warrant [Member]
Notes Tables
Schedule of Share-based Compensation, Activity [Table Text Block]	Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding at January 1, 2016 3,315,000 $ 2.04 (A) 4.7 (B) Granted - Expired (4,250 ) $ 0.01 Outstanding at March 31, 2016 3,310,750 $ 2.05 (A) 4.5 (D) $ 112,000 Exercisable at March 31, 2016 2,690,000 $ 1.90 (D) 4.2 (C) $ 111,000

Note 1 - The Company and Basi23

Note 1 - The Company and Basis of Presentation (Details Textual)	Dec. 08, 2015USD ($)$ / sharesshares	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Series C3 Preferred Stock [Member]
Gross Proceeds from Issuance of Private Placement		$ 1,119,000
Sale of Stock, Number of Shares Issued in Transaction | shares	10,000,000
Sale of Stock, Price Per Share | $ / shares	$ 0.25
Proceeds from Issuance of Private Placement	$ 1,381,000	1,114,000
Minimum [Member]
Cash Needed During the Year to Fund Current and Future Commitments		2,200,000
Maximum [Member]
Cash Needed During the Year to Fund Current and Future Commitments		$ 3,500,000
Number of Operating Segments		2
Cash and Cash Equivalents, at Carrying Value		$ 1,547,000	$ 1,241,000	$ 3,264,000	$ 3,724,000
Working Capital		13,600,000
Stockholders' Equity Attributable to Parent		1,792,000	1,583,000
Retained Earnings (Accumulated Deficit)		$ (72,193,000)	$ (71,256,000)

Note 2 - Summary of Significa24

Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Subsidiaries [Member]
Equity Method Investment, Ownership Percentage	56.00%
Commercial Paper [Member] | Collateral Pledged [Member]
Debt Instrument, Collateral Amount	$ 20,000
Z-Coach Aviation Wellness Program Annual Subscription [Member]
Deferred Revenue Arrangement, Subscription Period	1 year
Patents [Member] | General and Administrative Expense [Member]
Research and Development Expense	$ 17,000	$ 38,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	625,000	625,000
Allowance for Doubtful Accounts Receivable, Current	$ 0		$ 0
Depreciation, Depletion and Amortization	41,000	$ 33,000
Asset Impairment Charges	0	0
Research and Development Expense	492,000	$ 274,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 0		$ 0
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	59,016,206	53,570,093

Note 2 - Property, and Equipmen

Note 2 - Property, and Equipment, Estimated Useful Lives (Details)	3 Months Ended
	Mar. 31, 2016
Computer Software, Intangible Asset [Member]
Software (in years)	3 years
Office Equipment [Member] | Minimum [Member]
Software (in years)	5 years
Office Equipment [Member] | Maximum [Member]
Software (in years)	7 years
Leasehold Improvements [Member]
Software (in years)

Note 3 - Cura Software (Details

Note 3 - Cura Software (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Asset, Useful Life	3 years
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	$ 85,000
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	127,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	79,000
Cost of Sales [Member]
Capitalized Computer Software, Amortization	19,000
General and Administrative Expense [Member]
Capitalized Computer Software, Amortization	8,000
Payments for Software	351,000
Capitalized Computer Software, Accumulated Amortization	60,000
Capitalized Computer Software, Net	$ 291,000	$ 303,000

Note 4 - Property and Equipme27

Note 4 - Property and Equipment (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Depreciation	$ 14,000	$ 33,000

Note 4 - Property and Equipme28

Note 4 - Property and Equipment (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Office equipment	$ 235,000	$ 235,000
Shop equipment	226,000	226,000
Leasehold improvements	253,000	253,000
	714,000	714,000
Less accumulated depreciation	568,000	554,000
Net property and equipment	$ 146,000	$ 160,000

Note 5 - Business Segments (Det

Note 5 - Business Segments (Details Textual)	3 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)
CURA Division [Member] | Operating Segments [Member]
Payments to Acquire Productive Assets	$ 15,000	$ 0
Depreciation, Depletion and Amortization	28,000	0
Aegis Division [Member] | Operating Segments [Member]
Payments to Acquire Productive Assets	0	6,000
Depreciation, Depletion and Amortization	11,000	21,000
Operating Segments [Member]
Depreciation	$ 2,000	12,000
Number of Operating Segments	2
Depreciation, Depletion and Amortization	$ 41,000	33,000
Depreciation	$ 14,000	$ 33,000

Note 5 - Operation by Segments

Note 5 - Operation by Segments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
CURA Division [Member] | Operating Segments [Member]
Sales	$ 1,000
Gross margin (loss)	(22,000)
Operating costs and expenses	447,000	$ 52,000
Loss from operations	470,000	$ 52,000
Assets	$ 292,000
Aegis Division [Member] | Operating Segments [Member]
Sales
Gross margin (loss)
Operating costs and expenses	$ 167,000	$ 222,000
Loss from operations	167,000	222,000
Assets	$ 105,000	$ 183,000
Corporate Segment [Member] | Corporate, Non-Segment [Member]
Sales
Gross margin (loss)
Operating costs and expenses	$ 302,000	$ 306,000
Loss from operations	301,000	303,000
Assets	1,632,000	$ 3,333,000
Sales	1,000
Gross margin (loss)	(22,000)
Operating costs and expenses	916,000	$ 580,000
Loss from operations	938,000	580,000
Assets	$ 2,029,000	$ 3,516,000	$ 1,741,000

Note 6 - Notes Payable (Details

Note 6 - Notes Payable (Details Textual) - Office Equipment [Member] - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 31, 2016
Capita Lease, Term	5 years
Capital Leased Assets, Gross	$ 8,900
Capital Lease, Monthly Payment	$ 170
Debt Instrument, Interest Rate During Period	5.30%
Capital Lease Obligations	$ 7,000	$ 7,000

Note 7 - Preferred and Common32

Note 7 - Preferred and Common Stock (Details Textual) - USD ($)	Dec. 08, 2015	Mar. 28, 2014	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Mar. 31, 2014
Common Stock [Member]
Common stock, shares issued (in shares)			0	37,743
Stock Issued During Period, Shares, Conversion of Convertible Securities			21,380
Common Stock Dividends, Shares			16,363
Stock Issued During Period, Dividend Distribution				16,363
Convertible Preferred Stock [Member] | Preferred Class A [Member]
Preferred Units, Outstanding			534,512		534,512
Preferred Class A [Member]
Stock Issued During Period, Shares, Conversion of Convertible Securities				37,743
Preferred stock, shares authorized (in shares)			3,300,000		3,300,000
Convertible Preferred Stock, Holding Period Required for Conversion			1 year
Convertible Preferred Stock, Shares Issued upon Conversion			1
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears			$ 0.40
Preferred Stock, Redemption Price Per Share			$ 4
Conversion of Stock, Shares Converted				21,380
Preferred stock, shares outstanding (in shares)			543,221		587,101
Preferred Stock Dividends, Shares			8,709
Dividends Payable			$ 2,378,000		$ 2,325,000
Preferred Stock, Liquidation Preference, Value			$ 2,378,000		$ 2,325,000
Preferred Stock, Liquidation Preference Per Share			$ 4
Preferred stock, shares issued (in shares)			543,221		587,101
Preferred Class B [Member]
Preferred stock, shares authorized (in shares)			300,000		300,000
Convertible Preferred Stock, Holding Period Required for Conversion			1 year
Convertible Preferred Stock, Shares Issued upon Conversion			1
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears			$ 0.50
Preferred Stock, Redemption Price Per Share			$ 5
Preferred stock, shares outstanding (in shares)			67,500		67,500
Preferred Stock Dividends, Shares			0	0
Dividends Payable			$ 361,000		$ 353,000
Preferred Stock, Liquidation Preference, Value			$ 361,000		$ 353,000
Preferred Stock, Liquidation Preference Per Share			$ 5
Preferred stock, shares issued (in shares)			67,500		67,500
Series C Preferred Stock [Member]
Preferred stock, shares authorized (in shares)			16,250,000
Convertible Preferred Stock, Shares Issued upon Conversion			1
Preferred stock, shares outstanding (in shares)			16,250,000		16,250,000
Preferred Stock, Liquidation Preference, Value			$ 6,500,000		$ 6,500,000
Preferred Stock, Liquidation Preference Per Share			$ 0.40
Series C2 Preferred Stock [Member]
Preferred stock, shares authorized (in shares)			25,000,000		25,000,000	25,000,000
Preferred Stock, Par or Stated Value Per Share			$ 0.01
Convertible Preferred Stock, Shares Issued upon Conversion			1
Preferred stock, shares outstanding (in shares)			25,000,000		25,000,000
Preferred Stock, Liquidation Preference, Value			$ 5,000,000		$ 5,000,000
Preferred Stock, Liquidation Preference Per Share			$ 0.20
Stock Issued During Period, Shares, New Issues		25,000,000
Gross Proceeds from Issuance of Private Placement		$ 5,000,000
Payments of Stock Issuance Costs		46,000
Proceeds from Issuance of Private Placement		$ 4,954,000
Preferred stock, shares issued (in shares)			25,000,000		25,000,000
Series C3 Preferred Stock [Member]
Preferred stock, shares authorized (in shares)			10,000,000		10,000,000
Preferred stock, shares outstanding (in shares)			4,478,000		0
Gross Proceeds from Issuance of Private Placement			$ 1,119,000
Payments of Stock Issuance Costs			5,000
Proceeds from Issuance of Private Placement	$ 1,381,000		$ 1,114,000
Private Placement Offering Amount	$ 2,500,000
Sale of Stock, Price Per Share	$ 0.25
Preferred stock, shares issued (in shares)			4,478,000		0
Non-cash Beneficial Conversion Feature			$ 549,000
Common stock, shares authorized (in shares)			400,000,000		400,000,000
Common stock, par value (in dollars per share)			$ 0.01		$ 0.01
Common stock, shares issued (in shares)			45,796,765		45,796,765
Preferred stock, shares authorized (in shares)			100,000,000
Preferred Stock, Par or Stated Value Per Share			$ 0.01
Payments of Stock Issuance Costs			$ 5,000

Note 8 - Stock Options (Details

Note 8 - Stock Options (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2011	Dec. 31, 2015
Stock Option Plan 2011 [Member] | Incentive Stock Options [Member] | Certain Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	15,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0.41
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Stock Option Plan 2011 [Member] | Incentive Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	297,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 0.34
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 0.53
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	10 years
Trading Price of Common Stock upon Vesting	$ 5
Stock Option Plan 2011 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			3,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum			10.00%
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date			110.00%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	2,360,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	1,337,125
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	640,000
Allocated Share-based Compensation Expense	$ 31,000	$ 12,000
Non Plan Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	4,815,000
Allocated Share-based Compensation Expense	$ 0	$ 43,000
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	6,965,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	0	337,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	312,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0.45
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	0.20
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 5
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	5 years 36 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	9,325,000			9,013,000
Allocated Share-based Compensation Expense	$ 31,000	$ 55,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 305,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 292 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 0.45	$ 0.20
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 0	$ 653,000

Note 8 - Stock Options Valuatio

Note 8 - Stock Options Valuation Assumptions (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Expected Term (years)	5 years 36 days	6 years 219 days
Expected forfeiture rate	0.00%	0.00%
Risk-free rate	2.10%	2.10%
Volatility	132.00%	135.00%
Dividend yield	0.00%	0.00%

Note 8 - Share-based Compensati

Note 8 - Share-based Compensation, Stock Options, Activity (Details) - USD ($)	Dec. 31, 2015	Mar. 31, 2016
Outstanding shares (in shares)		9,013,000
Outstanding - weighted average exercise price (in dollars per share)		$ 0.57
Outstanding - weighted average remaining contractual term	5 years 182 days	5 years 146 days
Outstanding - aggregate intrinsic value		$ 33,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		312,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 0.45
Outstanding shares (in shares)	9,013,000	9,325,000
Outstanding - weighted average exercise price (in dollars per share)	$ 0.57	$ 0.56
Outstanding - aggregate intrinsic value	$ 33,000	$ 274,000
Shares, exercisable (in shares)		6,152,125
Weighted average exercise price, exercisable (in dollars per share)		$ 0.66
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term		5 years 36 days
Exercisable-aggregate intrinsic value		$ 123,000

Note 9 - Warrants (Details Text

Note 9 - Warrants (Details Textual)	Mar. 31, 2016shares
Warrants Without Exercise Price, Outstanding	1,750,000
Warrants without Expiration Date, Outstanding	743,500
Warrants without Expiration Date, Exercisable	118,500
Warrants Without Exercise Price, Exercisable	1,625,000

Note 9 - Summary of Outstanding

Note 9 - Summary of Outstanding Warrants (Details) - USD ($)		Dec. 31, 2015		Mar. 31, 2016
Warrant [Member]
Outstanding shares (in shares)				3,315,000
Outstanding - weighted average exercise price (in dollars per share)	[1]			$ 2.04
Expired (in shares)				(4,250)
Expired (in dollars per share)				$ 0.01
Outstanding shares (in shares)		3,315,000		3,310,750
Outstanding - weighted average exercise price (in dollars per share)	[1]	$ 2.04		$ 2.05
Shares, exercisable (in shares)				2,690,000
Weighted average exercise price, exercisable (in dollars per share)	[2]			$ 1.90
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	[3]			4 years 73 days
Exercisable-aggregate intrinsic value				$ 111,000
Outstanding shares (in shares)				9,013,000
Outstanding - weighted average exercise price (in dollars per share)				$ 0.57
Outstanding - weighted average remaining contractual term		4 years 255 days	[4]	4 years 182 days	[2]
Outstanding shares (in shares)		9,013,000		9,325,000
Outstanding - weighted average exercise price (in dollars per share)		$ 0.57		$ 0.56
Outstanding - aggregate intrinsic value				$ 112,000
Shares, exercisable (in shares)				6,152,125
Weighted average exercise price, exercisable (in dollars per share)				$ 0.66
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term				5 years 36 days
Exercisable-aggregate intrinsic value				$ 123,000
[1]	The weighted average exercise price for warrants outstanding as of March 31, 2016, excludes 1,750,000 warrants with no determined exercise price.
[2]	The weighted average exercise price for warrants exercisable as of March 31, 2016, excludes 1,625,000 warrants with no determined exercise price
[3]	The weighted average remaining contractual term for warrants exercisable as of December 31, 2015 and 2014 excludes 118,500 warrants with no expiration date.
[4]	The weighted average remaining contractual term for warrants outstanding as of March 31, 2016 excludes 743,500 warrants with no expiration date

Note 10 - Related Party Trans38

Note 10 - Related Party Transactions (Details Textual) - USD ($)	1 Months Ended			3 Months Ended
	Oct. 31, 2014	Dec. 31, 2013	Dec. 31, 2010	Mar. 31, 2016	Mar. 31, 2015	Dec. 13, 2010
Director [Member]
Lessee Leasing Arrangements, Operating Leases, Renewal Term	3 years	3 years		3 years
Monthly Rent Payment under Operating Lease				$ 6,256
Annual Rent Payment under Operating Lease				$ 75,070
Operating Lease, Rate Increase at Renewal Period				9.00%
Related Pary Transaction, Expenses from Transactions with Related Party, Rate						$ 200
Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount						10,000
Deferred Compensation Arrangement with Individual Revenue, Benchmark						$ 1,000,000
Professional Fees				$ 0	$ 0
Operating Lease, Length of Renewal Option			3 years
SCIRE Corporation [Member]
Related Party Transaction, Expenses from Transactions with Related Party					$ 18,000

Note 11 - Commitments and Oth39

Note 11 - Commitments and Other Matters (Details Textual) - USD ($)	Mar. 24, 2016	Oct. 31, 2014	Dec. 31, 2013	Mar. 31, 2016	Mar. 31, 2015	Jun. 01, 2016	Mar. 03, 2016
Director [Member]
Monthly Rent Payment under Operating Lease				$ 6,256
Annual Rent Payment under Operating Lease				$ 75,070
Lessee Leasing Arrangements, Operating Leases, Renewal Term		3 years	3 years	3 years
Operating Lease, Rate Increase at Renewal Period				9.00%
Chief Executive Officer [Member] | Subsequent Event [Member]
Officers Compensation Agreement Rate						$ 200,000
Chief Executive Officer [Member]
Officers Compensation Agreement Rate	$ 50,000						$ 150,000
Annual Salary, If Company Has Adjusted EBITDA	300,000
Annual Salary	$ 200,000
Employment Agreement, Term				180 days
Operating Leases, Rent Expense				$ 19,000	$ 17,000
Operating Leases, Future Minimum Payments Receivable, Current				75,000
Operating Leases, Future Minimum Payments, Due in Two Years				75,000
Operating Leases, Future Minimum Payments, Due in Three Years				$ 31,000