Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 11-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LLTI | |
Entity Registrant Name | LASERLOCK TECHNOLOGIES INC | |
Entity Central Index Key | 1104038 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 307,578,149 |
Balance_Sheets
Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $74,572 | $63,956 |
Inventory | 109,360 | 97,360 |
Prepaid expenses | 178,454 | 181,086 |
TOTAL CURRENT ASSETS | 362,386 | 342,402 |
PROPERTY AND EQUIPMENT | ||
Capital equipment, net of accumulated depreciation of $178,518 and $161,205 as of March 31, 2015 and December 31, 2014 | 57,508 | 74,821 |
OTHER ASSETS | ||
Deposits | 37,197 | 37,197 |
Patents and Trademark, net of accumulated amortization of $122,615 and $118,502 as of March 31, 2015 and December 31, 2014 | 103,473 | 107,586 |
TOTAL OTHER ASSETS | 140,670 | 144,783 |
TOTAL ASSETS | 560,564 | 562,006 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 5,544,281 | 5,217,770 |
Accrued interest-related parties | 175,794 | 43,215 |
Deferred revenue | 10,417 | 16,667 |
Senior secured convertible notes payable-related parties | 114,000 | 114,000 |
Notes payable | 959,102 | 812,553 |
TOTAL CURRENT LIABILITIES | 6,803,594 | 6,204,205 |
LONG-TERM LIABILITIES | ||
Warrant liability | 6,201,233 | 6,370,709 |
Accrued interest-related parties | 112,885 | |
TOTAL LONG-TERM LIABILITIES | 6,201,233 | 6,483,594 |
TOTAL LIABILITIES | 13,004,827 | 12,687,799 |
CONTINGENCIES | ||
STOCKHOLDERS' DEFICIT | ||
Convertible Preferred Stock, $ .001 par value; 75,000,000 shares authorized; 21,111,111 shares issued and outstanding as of March 31, 2015 and December 31, 2014 | 633,333 | 633,333 |
Common stock, $ .001 par value; 675,000,000 shares authorized; 337,374,052 shares issued and 307,578,149 outstanding at March 31, 2015 and December 31, 2014 | 337,374 | 337,374 |
Additional paid in capital | 24,658,460 | 24,713,294 |
Treasury stock, at cost (29,795,903 shares at March 31, 2015 and December 31, 2014 | -113,389 | -113,389 |
Accumulated deficit | -37,960,041 | -37,696,405 |
STOCKHOLDERS' DEFICIT | -12,444,263 | -12,125,793 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $560,564 | $562,006 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation on capital equipment | $178,518 | $161,205 |
Accumulated amortization, patent and trademarks | $122,615 | $118,502 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 75,000,000 | 75,000,000 |
Preferred stock, shares issued | 21,111,111 | 21,111,111 |
Preferred stock, shares outstanding | 21,111,111 | 21,111,111 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 675,000,000 | 675,000,000 |
Common stock, shares issued | 337,374,052 | 337,374,052 |
Common stock, shares outstanding | 307,578,149 | 307,578,149 |
Treasury stock, shares | 29,795,903 | 29,795,903 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | |||
NET REVENUES | ||||
Sales | $0 | $0 | ||
Royalties | 6,250 | |||
TOTAL NET REVENUE | 6,250 | |||
COST OF SALES | 0 | 0 | ||
GROSS PROFIT | 6,250 | |||
OPERATING EXPENSES | ||||
General and administrative | 83,901 | 244,496 | ||
Legal and accounting | 11,113 | 113,326 | ||
Payroll expenses | 170,904 | [1] | 954,328 | [1] |
Research and development | 120,386 | 864,729 | ||
Sales and marketing | 22,808 | 51,922 | ||
Total operating expenses | 409,112 | 2,228,801 | ||
LOSS BEFORE OTHER INCOME | -402,862 | -2,228,801 | ||
OTHER INCOME (EXPENSE) | ||||
Interest expense | -30,250 | -10,907 | ||
Change in fair value of warrants | 169,476 | -890,000 | ||
Change in fair value of embedded derivative liability | -300,000 | |||
TOTAL OTHER INCOME (EXPENSE) | 139,226 | -1,200,907 | ||
NET LOSS | ($263,636) | ($3,429,708) | ||
BASIC (in dollars per share) | $0 | ($0.01) | ||
DILUTED (in dollars per share) | $0 | ($0.01) | ||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||
BASIC (in shares) | 307,578,149 | 297,571,958 | ||
DILUTED (in shares) | 307,578,149 | 297,571,958 | ||
[1] | - includes share based compensation of $(54,834) and $740,954 for the three months ended March 31, 2015 and 2014 |
Statements_of_Operations_Unaud1
Statements of Operations (Unaudited) (Parenthetical) (Payroll expenses, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Payroll expenses | ||
Share based compensation | ($54,834) | $740,954 |
Statements_of_Changes_in_Stock
Statements of Changes in Stockholders' Deficit (USD $) | Total | Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit |
Balance at Dec. 31, 2014 | ($12,125,793) | $633,333 | $337,374 | $24,713,294 | ($113,389) | ($37,696,405) |
Balance (in shares) at Dec. 31, 2014 | 21,111,111 | 307,578,149 | ||||
Fair value of employee stock options | -54,834 | -54,834 | ||||
Net loss | -263,636 | -263,636 | ||||
Balance at Mar. 31, 2015 | ($12,444,263) | $633,333 | $337,374 | $24,658,460 | ($113,389) | ($37,960,041) |
Balance (in shares) at Mar. 31, 2015 | 21,111,111 | 307,578,149 |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | ($263,636) | ($3,429,708) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Fair value of options issued in exchange for services | -54,834 | 740,954 |
Accretion of discount on notes payable | 10,447 | |
Change in fair value of warrant liability | -169,476 | 890,000 |
Change in fair value of embedded derivative liability | 300,000 | |
Amortization and depreciation | 21,426 | 20,590 |
Stock and warrants issued in exchange for technology | 844,000 | |
(Increase) decrease in assets | ||
Inventory | -12,000 | |
Prepaid expenses | 2,632 | 2,632 |
Increase (decrease) in liabilities | ||
Accounts payable and accrued expenses | 346,205 | -75,100 |
Deferred revenue | -6,250 | |
Net cash used in operating activities | -125,486 | -706,632 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of notes payable | 136,102 | |
Net cash provided by financing activities | 136,102 | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 10,616 | -706,632 |
CASH AND CASH EQUIVALENTS-BEGINNING OF PERIOD | 63,956 | 1,285,973 |
CASH AND CASH EQUIVALENTS-END OF PERIOD | 74,572 | 579,341 |
Cash paid during the year for: | ||
Interest | 0 | 0 |
Income taxes | 0 | 0 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Cashless exercise of options | $2,714 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Nature of the Business | |
LaserLock Technologies Inc. (the “Company” or “LaserLock”) was incorporated in the State of Nevada on November 10, 1999. The Company is based in Washington, D.C. and its common stock is quoted on the OTC Pink under the ticker symbol “LLTI”. A high-tech solutions company in the field of authenticating people and products, LaserLock offers state-of-the-art solutions to combat identity fraud and counterfeiting utilizing multi-factor authentication and a suite of security pigments for governments, health care providers, the gaming industry, the financial services industry and high-end retailers. | |
The Company invests in developing new proprietary color shifting inks that it believes will allow it to penetrate broader markets and result in increased revenues. The Company refines its technologies and their applications, and now has what it believes to be one of the most cost effective and efficient authentication technologies available. Its most recent technology takes advantage of the new ubiquitous energy efficient fluorescent lighting to change the color of ink, resulting in numerous potential new applications ranging from credit cards to drivers licenses, passports, stock certificates, clothing labels, currency, ID cards, and tax stamps. The technologies can also be used to protect DVDs, apparel, pharmaceuticals, and virtually any other physical product. | |
The Company’s digital solution is a multi-platform (iOS and Android) strong authentication solution that integrates biometrics and geo-location tagging. The solution completely eliminates passwords and the inherently weak security they provide. The solution also removes the user complexity associated with having to manage many complex passwords. The solution can be delivered either as a high availability cloud service, managed by the Company, or as licensed software product for operation on the client’s premises. | |
The solution integrates three independent authentication factors – something you have (for instance a smartphone), something you know (for instance a color gesture swipe) and something you are (for instance your facial geometry)—into a simple, fast, intuitive solution. The system can also accurately determine the precise location of the individual using a variety of mechanisms including GPS, cell tower triangulation, IP or Wi-Fi address. Because the solution incorporates biometrics it completely eliminates the possibility that users might share their authentication credentials. The combination of biometrics and geolocation provides extremely strong transactional evidence, making it nearly impossible for an end-user to refute having been part of a transaction. | |
The Company’s activities are subject to significant risks and uncertainties, including the need to secure additional funding to operationalize the Company’s current technology. | |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on form 10-K for the year ended December 31, 2014, as filed with the SEC. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | |
Comprehensive Income | |
The Company follows Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 220 in reporting comprehensive income. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. Since the Company has no items of other comprehensive income (loss), comprehensive income (loss) is equal to net income (loss). | |
Fair Value of Financial Instruments | |
The Company’s financial instruments consist of cash, accounts payable and accrued expenses and notes payable. The carrying value of cash, accounts payable and accrued expenses approximate their fair value because of their short maturities. The Company believes the carrying amount of its notes payable and convertible debt approximates its fair value based on rates and other terms currently available to the Company for similar debt instruments. | |
Cash and Cash Equivalents | |
For purposes of reporting cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and certificates of deposit and commercial paper with original maturities of 90 days or less to be cash or cash equivalents. | |
Concentration of Credit Risk Involving Cash and Cash Equivalents | |
The Company’s cash and cash equivalents are held at two financial institutions. At times, the Company’s deposits may exceed Federal Deposit Insurance Corporation (FDIC) coverage limits. The Company has not experienced any losses from maintaining cash accounts in excess of federally insured limits. | |
Inventory | |
Inventory principally consists of penlights and pigments and is stated at the lower of cost (determined by the first-in, first-out method) or market. | |
Property and Equipment | |
Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, principally five to seven years. Maintenance and repairs of property are charged to operations, and major improvements are capitalized. Upon retirement, sale, or other disposition of property and equipment, the costs and accumulated depreciation are eliminated from the accounts, and any resulting gain or loss is included in operations. | |
Patents and Trademark | |
The Company has filed eleven patent applications relating to the company technology. Currently we have 7 U.S. patents, 4 U.S. applications pending for allowance, and 5 foreign applications pending for allowance. The Company has also purchased a trademark. Costs associated with the registration and legal defense of the patents have been capitalized and are amortized on a straight-line basis over the estimated lives of the patents which were determined to be17 to 20 years. | |
Long-Lived Assets | |
The Company evaluates the recoverability of its long-lived assets in accordance with ASC 360 “Property, Plant, and Equipment.” The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets are measured by a comparison of the carrying amount of an asset to future cash flows expected to be generated by the asset, undiscounted and without interest or independent appraisals. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the assets. | |
Deferred Financing Costs | |
Costs incurred in securing long-term debt are deferred and amortized, as a charge to interest expense, over the term of the related debt. In the case of long-term debt modifications, the Company follows the guidance provided by ASC 470-50 “Debt – Modification and Extinguishments.” | |
Convertible Notes Payable | |
Convertible notes payable, for which the embedded conversion feature does not qualify for derivative treatment, are evaluated to determine if the effective or actual rate of conversion per the terms of the convertible note agreement is below market value. In these instances, the Company accounts for the value of the beneficial conversion feature (BCF) as a debt discount, which is then accreted to interest expense over the life of the related debt using the straight-line method which approximates the effective interest method. | |
Derivative Instruments | |
The Company evaluates its convertible debt, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with Topic 480 of the FASB ASC and Topic 815 of the FASB Accounting Standards Codification. The result of this accounting treatment is that the fair value of the embedded derivative, if required to be bifurcated, is marked-to-market at each balance sheet date and recorded as a liability. The change in fair value is recorded in the Statement of Operations as a component of other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. | |
In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. | |
The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date. Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument is expected within 12 months of the balance sheet date. | |
Revenue Recognition | |
In accordance with SEC Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition (Codified in FASB ASC 605), the Company recognizes revenue when (i) persuasive evidence of a customer or distributor arrangement exists, (ii) a retailer, distributor or wholesaler receives the goods and acceptance occurs, (iii) the price is fixed or determinable, and (iv) collectability of the revenue is reasonably assured. Subject to these criteria, the Company recognizes revenue from product sales, consisting mainly of pigments and penlights, upon shipment to the customer. Royalty revenue is recognized upon receipt of notification from a customer that the Company’s product has been used in the customer’s production process. | |
Income Taxes | |
The Company follows FASB ASC 740 when accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. | |
Stock-based Payments | |
The Company accounts for stock-based compensation under the provisions of ASC 718, Compensation—Stock Compensation (“ASC 718”), which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods using the straight-line method. | |
The Company accounts for stock-based compensation awards to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees (“ASC 505-50”). Under ASC 505-50, the Company determines the fair value of the warrants or stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. | |
All issuances of stock options or other equity instruments to non-employees as consideration for goods or services received by the Company are accounted for based on the fair value of the equity instruments issued. Any stock options issued to non-employees are recorded as an expense and additional paid-in capital in stockholders’ equity over the applicable service periods. | |
Advertising Costs | |
Advertising costs are expensed as incurred. Advertising costs were approximately $158 and $27,283 for the three months ended March 31, 2015 and 2014 and are included in sales and marketing expenses. | |
Research and Development Costs | |
In accordance with FASB ASC 730, research and development costs are expensed when incurred. Research and development costs for the three months ended March 31, 2015 and 2014 were $120,386 and $864,729. | |
Basic and Diluted Net Income per Share of Common Stock | |
The Company follows FASB ASC 260 when reporting Earnings Per Share resulting in the presentation of basic and diluted earnings per share. Since the Company reported a net loss for the three months ended March 31, 2015 and 2014, common stock equivalents, including convertible preferred stock, convertible debt, stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and dilutive loss per share during the years were the same. | |
Segment Information | |
The Company is organized and operates as one operating segment wherein the Company’s patented technologies are utilized to address counterfeiting issues. In accordance with ASC 280, Segment Reporting, the chief operating decision-maker has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Since the Company operates in one segment and provides one group of similar products, all financial segment and product line information required by ASC 280 can be found in the financial statements. | |
Recently Adopted Accounting Pronouncements | |
As of March 31, 2015 and for the period then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company’s financial statements. | |
Recently Issued Accounting Pronouncements Not Yet Adopted | |
As of March 31, 2015, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements through 2016. | |
Reclassifications | |
Certain amounts in 2014 statement of operations have been reclassified in order for them to conform with the 2015 presentation. |
Management_Plans
Management Plans | 3 Months Ended |
Mar. 31, 2015 | |
Text Block [Abstract] | |
Management Plans | NOTE 2 – MANAGEMENT PLANS |
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant losses and experienced negative cash flow from operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
The Company does not believe that its existing cash resources will be sufficient to sustain operations during the next twelve months. The Company currently needs to generate revenue in order to sustain its operations. In the event that the Company cannot generate sufficient revenue to sustain its operations, the Company will need to reduce expenses or obtain financing through the sale of debt and/or equity securities. The issuance of additional equity would result in dilution to existing stockholders. If the Company is unable to obtain additional funds when they are needed or if such funds cannot be obtained on terms acceptable to the Company, the Company may be unable to execute upon the business plan or pay costs and expenses as they are incurred, which could have a material, adverse effect on the business, financial condition and results of operations. | |
If sufficient revenues are not generated to sustain operations or additional funding cannot be obtained in the short term, the Company will need to reduce monthly expenditures to a level that will enable the Company to continue until such funds can be obtained. | |
Successful completion of the Company’s development program, and the attainment of profitable operations are dependent upon future events, including obtaining adequate financing to fulfill its development activities and achieving a level of sales adequate to support the Company’s cost structure. However, there can be no assurances that the Company will be able to secure additional equity investment or achieve an adequate sales level. |
Property_and_Equipment
Property and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | NOTE 3 – PROPERTY AND EQUIPMENT | ||||||||
Equipment consists of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Furniture and Fixtures | $ | 219,871 | $ | 219,871 | |||||
Equipment | 16,155 | 16,155 | |||||||
236,026 | 236,026 | ||||||||
Less: Accumulated depreciation | 178,518 | 161,205 | |||||||
$ | 57,508 | $ | 74,821 | ||||||
Depreciation of property and equipment was $17,313 and $17,313, respectively, for the three months ended March 31, 2015 and 2014. |
Patents_and_Trademark
Patents and Trademark | 3 Months Ended |
Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Patents and Trademark | NOTE 4 – PATENTS AND TRADEMARK |
The Company has seven issued patents and filed for four additional provisional patents for anti-counterfeiting technology. Accordingly, costs associated with the registration of these patents and legal defense have been capitalized and are amortized on a straight-line basis over the estimated lives of the patents (17 to 20 years). During three months ended March 31, 2015 and 2014, the Company capitalized $0 and $21,954 of patent costs. Amortization expense for patents was $4,114 and $3,277 for the three months ended March 31, 2015 and 2014. | |
On March 30, 2015, the Company was advised by the United States Patent and Trademark Office (“USPTO”) that its petition for an unintentional delayed payment for an unpaid maintenance fee to reinstate its patent was granted by the USPTO. The patent, for a counterfeiting ink detection system, was granted on November 2, 2004. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 5 – INCOME TAXES |
Income tax expense was $0 for the three months ended March 31, 2015 and 2014. | |
As of January 1, 2015, the Company had no unrecognized tax benefits, and accordingly, the Company did not recognize interest or penalties during 2014 related to unrecognized tax benefits. There has been no change in unrecognized tax benefits during the three months ended March 31, 2015, and there was no accrual for uncertain tax positions as of March 31, 2015. Tax years from 2011 through 2014 remain subject to examination by major tax jurisdictions. | |
There is no income tax benefit for the losses for the three months ended March 31, 2015 and 2014, since management has determined that the realization of the net tax deferred asset is not assured and has created a valuation allowance for the entire amount of such benefits. |
Senior_Secured_Convertible_Not
Senior Secured Convertible Notes Payable -Related Parties | 3 Months Ended |
Mar. 31, 2015 | |
Text Block [Abstract] | |
Senior Secured Convertible Notes Payable -Related Parties | NOTE 6 – SENIOR SECURED CONVERTIBLE NOTES PAYABLE –RELATED PARTIES |
In February 2006, the Company commenced a private placement of up to $800,000 principal amount of 10% senior secured convertible promissory notes due twelve months from the date of issue to certain Company shareholders and other accredited investors. As of December 31, 2006, the Company completed this private placement by selling all notes payable totaling $800,000. The notes are secured by a first priority lien on all of the tangible and intangible personal property of the Company. In May 2007, the due date of these notes was extended to August 2008 and the interest rate increased to 12% per annum during the extension period. In June 2011, the interest rate on all of the notes was reset to 10% and $596,500 of the notes and accrued interest was extended until September 15, 2015. During the fourth quarter of 2012 the remaining $178,749 of unextended notes and the associated accrued interest were extended to September 30, 2015. In June 2013, $225,000 of these notes payable plus accrued interest of $181,125 were converted into 7.4 million shares of the Company’s common stock, which was valued at $1,628,000. The excess of the fair value of the Company’s common stock over the value of the notes payable and accrued interest was recorded as loss on extinguishment of debt in accordance with FASB ASC 470-50. | |
As of March 31, 2015, the outstanding principal balance on these notes was $114,000. Accrued interest at March 31, 2015 amounted to $115,925. The notes and accrued interest are due on September 15, 2015. | |
If an equity financing with total proceeds of more than $5,000,000 occurs while any of these notes are outstanding, holders of notes will have the right, at their option, to convert the outstanding principal and interest of the notes into shares of common stock at a discount of 30% of the price per share in the qualified financing. Since the embedded conversion feature is contingent upon the occurrence of the qualified financing, the value of the contingent conversion feature, if beneficial, will be recognized if the triggering event occurs and the contingency is resolved. |
Notes_Payable
Notes Payable | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Notes Payable | NOTE 7 – NOTES PAYABLE | ||||||||
Notes payable consists of the following at March 31, 2015 and December 31, 2014: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Unsecured notes payable due to related parties; interest at 10% per annum; principal and accrued interest due at maturity in September 2015 | $ | 114,000 | $ | 114,000 | |||||
Series A notes payable; interest at 8% per annum; principal and accrued interest due at maturity in October 2011 (past due) | 50,000 | 50,000 | |||||||
Notes payable; interest at 8% per annum, principal and accrued interest due at December 1, 2014 (past due) | 650,000 | 650,000 | |||||||
Notes payable; interest at 5% and 8% per annum, principal and accrued interest due at April 2015 | 123,000 | 123,000 | |||||||
Notes payable; interest at 5% per annum, principal and accrued interest due at June 10, 2015 | 25,000 | — | |||||||
Notes payable; interest at 8% per annum, principal and accrued interest due at June 25, 2015 | 111,102 | — | |||||||
Less: Debt discount | — | (10,447 | ) | ||||||
1,073,102 | 926,553 | ||||||||
Less: Current portion | 1,073,102 | 926,553 | |||||||
$ | — | $ | — | ||||||
The notes payable balance as of March 31, 2015 includes a Series A note payable in the amount of $50,000 with interest of 8% per annum. This note matured in October 2011 and is past due. Accrued interest associated with this note was $21,667 as of March 31, 2015. The notes are in default. | |||||||||
On June 10, 2014, the Company issued a note payable for $250,000, which included fully vested warrants to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $0.10 per share, expiring in five years. The warrants were valued at $39,650 using Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 248.2%, risk free interest rate of 1.67% and expected life of 5 years. The relative fair value of the warrants was $34,222 and was recorded as a discount to the notes payable in accordance with FASB ASC 835-30-25, Recognition and is being accreted over the term of the note payable for financial statement purposes. For the year ended December 31, 2014, $34,222 was accreted through interest expense. The note and accrued interest at 8% per annum as was originally due on December 11, 2014, but the Company received approval to extend the maturity until December 31, 2014. The warrants are subject to anti-dilutive adjustments and are therefore classified as a liability in accordance with FASB ASC 815. The warrant liability is re-valued at each reporting period with the change in fair value recorded through earnings. As of December 31, 2014, the fair value of the warrant liability was $17,741 and the note payable balance was $250,000. As of March 31, 2015, the fair value of the warrant liability was $19,950 and the note payable balance was $250,000. The note is in default. | |||||||||
On August 5, 2014, the Company issued notes payable for $100,000, which included fully vested warrants to purchase 600,000 shares of the Company’s common stock at an exercise price of $0.05 per share, expiring in five years. The warrants were valued at $29,725 using Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 233.8%, risk free interest rate of 1.67% and expected life of 5 years. The relative fair value of the warrants was $22,914 and was recorded as a discount to the notes payable in accordance with FASB ASC 835-30-25, Recognition and is being accreted over the term of the note payable for financial statement purposes. For the year ended December 31, 2014, $22,914 was accreted through interest expense. The note and accrued interest at 8% per annum were due in full on December 1, 2014. The warrants are subject to anti-dilutive adjustments and are therefore classified as a liability in accordance with FASB ASC 815. The warrant liability is re-valued at each reporting period with the change in fair value recorded through earnings. As of December 31, 2014, the fair value of the warrant liability was $11,178 and the note payable balance was $100,000. As of March 31, 2015, the fair value of the warrant liability was $12,322 and the note payable balance was $100,000. The notes are in default. | |||||||||
On August 12, 2014, the Company issued a notes payable for $50,000, which included fully vested warrants to purchase 300,000 shares of the Company’s common stock at an exercise price of $0.05 per share, expiring in five years. The warrants were valued at $26,817 using Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 233.8%, risk free interest rate of 1.67% and expected life of 5 years. The relative fair value of the warrants was $17,455 and was recorded as a discount to the notes payable in accordance with FASB ASC 835-30-25, Recognition and is being accreted over the term of the note payable for financial statement purposes. For the year ended December 31, 2014, $17,455 was accreted through interest expense. The note and accrued interest at 8% per annum were due in full on December 1, 2014. The warrants are subject to anti-dilutive adjustments and are therefore classified as a liability in accordance with FASB ASC 815. The warrant liability is re-valued at each reporting period with the change in fair value recorded through earnings. As of December 31, 2014, the fair value of the warrant liability was $5,585 and the note payable balance was $50,000. As of March 31, 2015, the fair value of the warrant liability was $5,583 and the note payable balance was $50,000. The note is in default. | |||||||||
On August 14, 2014, the Company issued a note payable for $100,000, which included fully vested warrants to purchase 600,000 shares of the Company’s common stock at an exercise price of $0.05 per share, expiring in five years. The warrants were valued at $47,676 using Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 233.8%, risk free interest rate of 1.67% and expected life of 5 years. The relative fair value of the warrants was $32,274 and was recorded as a discount to the notes payable in accordance with FASB ASC 835-30-25, Recognition and is being accreted over the term of the note payable for financial statement purposes. For the year ended December 31, 2014, $32,274 was accreted through interest expense. The note and accrued interest at 8% per annum were due in full on December 1, 2014. The warrants are subject to anti-dilutive adjustments and are therefore classified as a liability in accordance with FASB ASC 815. The warrant liability is re-valued at each reporting period with the change in fair value recorded through earnings. As of December 31, 2014, the fair value of the warrant liability was $11,226 and the note payable balance was $100,000. As of March 31, 2015, the fair value of the warrant liability was $11,169 and the note payable balance was $100,000. The note is in default. | |||||||||
On September 8, 2014, the Company issued notes payable for $150,000, which included fully vested warrants to purchase 900,000 shares of the Company’s common stock at an exercise price of $0.05 per share, expiring in five years. The warrants were valued at $62,544 using Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 233.8%, risk free interest rate of 1.67% and expected life of 5 years. The relative fair value of the warrants was $44,140 and was recorded as a discount to the notes payable in accordance with FASB ASC 835-30-25, Recognition and is being accreted over the term of the note payable for financial statement purposes. For the year ended December 31, 2014, $44,140 was accreted through interest expense. The note and accrued interest at 8% per annum were due in full on December 1, 2014. The warrants are subject to anti-dilutive adjustments and are therefore classified as a liability in accordance with FASB ASC 815. The warrant liability is re-valued at each reporting period with the change in fair value recorded through earnings. As of December 31, 2014, the fair value of the warrant liability was $17,385 and the note payable balance was $150,000. As of March 31, 2015, the fair value of the warrant liability was $16,767 and the notes payable balance was $150,000. The notes are in default. | |||||||||
On December 5, 2014, the Company issued a note payable for $23,000 to a stockholder, which bears interest at 5.0% and is due on April 5, 2015. The note is in default. | |||||||||
On December 31, 2014, the Company issued a note payable for $100,000, which include fully vested warrants to purchase 600,000 shares of the Company’s common stock at an exercise price of $0.05 per share expiring in five years. The warrants were valued at $11,812 using the Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 229.0%, risk free interest rate of 1.68% and expected life of 5 years. The relative fair value of the warrants was $10,563 and was recorded as a discount to the notes payable in accordance with FASB ASC 835-30-25, Recognition, and is being accreted over the term of the note payable for financial statement purposes. For the three months ended March 31, 2015, $10,447 was accreted through interest expense. The note and accrued interest at 8% per annum were due in full on April 1, 2015. This note is currently in default. The warrants are subject to anti-dilution adjustments and are therefore classified as a liability in accordance with FASB ASC 815. The warrant liability is revalued at each reporting period with the change in fair value recorded through earnings. As of December 31, 2014, the fair value of the warrant liability was $11,812 and the note payable balance was $89,553, net of a discount of $10,447. As of March 31, 2015, the fair value of the warrant liability was $11,325 and the note payable balance was $100,000. This note is in default. | |||||||||
On February 10, 2015, the Company issued a note payable for $25,000, bearing interest at 5.0% to an accredited investor and director of the Company. The note is due on June 10, 2015. | |||||||||
On March 27, 2015, the Company issued a note payable for $111,102, bearing interest at 8.0% to an accredited investor. The note and accrued interest is due on June 25, 2015. The principal amount of the note and accrued interest is convertible into the next equity financing of the Company. The conversion price under the conversion option will be equal to the price paid by third-party investors in the financing. On March 20, 2014, VerifyMe waived its contractual rights as it relates to this transaction. |
Warrant_Liability
Warrant Liability | 3 Months Ended |
Mar. 31, 2015 | |
Text Block [Abstract] | |
Warrant Liability | NOTE 8 – WARRANT LIABILITY |
On December 31, 2012, the Company entered into an Investment Agreement, a Technology and Service Agreement, a Patent and Technology License Agreement and an Asset Purchase Agreement with VerifyMe, and on the same date entered into a Technology and Service Agreement with Zaah Technologies, Inc. (collectively with the VerifyMe agreements, the “Agreements”). Contemplated by those Agreements were warrants issuances by the Company for the purchase of the Company’s common stock. | |
The warrants associated with these Agreements are subject to anti-dilution adjustments outlined in the Agreements. In accordance with FASB ASC 815, the warrants were classified as a liability in the total amount of $2.4 million at December 31, 2012. In addition, the warrants must be valued every reporting period and adjusted to market with the increase or decrease being adjusted through earnings. As of March 31, 2015 and December 31, 2014, the fair value of the warrant liability was $865,277 and $787,544. | |
On January 1, 2014, the Company issued warrants to purchase 6,349,206 shares of the Company’s common stock as consideration for technology received from VerifyMe under to the Patent and Technology License Agreement dated December 31, 2012. The warrants are exercisable at $0.10 per share. The warrants are subject to anti-dilution adjustments outlined in the Agreement. In accordance with FASB ASC 815, the warrants were classified as a liability with an initial fair value of $444,000, which was immediately expensed as research and development costs. In addition, the warrants must be valued every reporting period and adjusted to market with the increase or decrease being adjusted through earnings. As of March 31, 2015 and December 31, 2014, the fair value of the warrant liability was $116,789 and $121,209. | |
The Company made the payment of warrants to VerifyMe on a good faith basis, based on the assumption that the technology conveyed to the Company would be patentable and licensable. The Company has not reached a conclusion that the technology will be patentable and licensable, and can provide no assurance to this effect. | |
Should the Company ultimately conclude that the technology received from VerifyMe is patentable and licensable, the Company would be required to make, on January 1, 2015, an additional payment pursuant to Patent and Technology Agreement in the amount of $4,500,000, to be paid by issuing (i) a number of shares of common stock equal to (x) $4,500,000 divided by (y) a price which equals a 10% discount to the market price at the time of issuance and (ii) warrants to purchase an equal number of shares of common stock exercisable at a price of $0.10 per share. Based upon the share price of $0.04 per share, this would result in the issuance of approximately an additional 125 million shares of common stock and warrants to purchase an additional 125 million shares. The $4,500,000 was accrued at December 31, 2014. The number of warrants to be issued based on a stock price of $0.02 at December 31, 2014 was 250 million warrants. The warrants were valued at $4,892,089 as of December 31, 2014, using the Black-Scholes pricing model to calculate the grant-date fair value of the warrants with the following assumptions: no dividend yield, expected volatility of 229.1%, risk free interest rate of 1.65% and expected life of five years. The warrants were valued at $4,615,841 as of March 31, 2015, using the Black-Scholes pricing model to calculate the grant-date fair value of the warrants with the following assumptions: no dividend yield, expected volatility of 190.9%, risk free interest rate of 1.37% and expected life of five years. |
Convertible_Preferred_Stock
Convertible Preferred Stock | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Convertible Preferred Stock | NOTE 9 – CONVERTIBLE PREFERRED STOCK |
Subscription Agreement | |
The Company entered into a Subscription Agreement with VerifyMe on January 31, 2013 (the “Subscription Agreement”). Under the terms of the Subscription Agreement, VerifyMe subscribed to purchase 33,333,333 shares of the Company’s Series A preferred stock (the “Preferred Stock”) and a warrant to purchase 33,333,333 shares of the Company’s common stock at an exercise price of $0.12 per share, for $1 million. | |
At any time before January 31, 2015, VerifyMe has the right, but not the obligation, to require the Company to repurchase all, but not less than all, of the capital stock of the Company and warrants exercisable for capital stock of the Company held by VerifyMe in exchange for the price originally paid by VerifyMe therefor upon the occurrence of any of the following events:(i) the consummation of any bona fide business acquisition, (ii) the incurrence of any indebtedness by the Company in an amount in excess of $2 million, (iii) the issuance or sale of any security having a preference on liquidation senior to common stock, or (iv) the sale by the Company of capital stock or warrants exercisable for its capital stock at a price below $0.03 per share. This right has not been exercised. | |
In accordance with FASB ASC 480 and 815, the Preferred Stock has been classified as permanent equity and was valued at $1 million at January 31, 2013. | |
The conversion feature of the Preferred Stock is an embedded derivative, which is classified as a liability in accordance with FASB ASC 815 and was valued in accordance with FASB ASC 470 as a beneficial conversion feature at a fair value of $0 at March 31, 2015 and December 31, 2014. This was classified as an embedded derivative liability and a discount to Preferred Stock. Because the Preferred Stock can be converted at any time, the full amount of the original fair value was accreted and classified as a reduction to the discount on Preferred Stock and a deemed dividend distribution in the full amount of $1 million, in 2013. | |
The warrants associated with the Preferred Stock were also classified as a liability since they are subject to anti-dilutive adjustments outlined in the warrant agreement and valued at a fair market value of $2,995,791 at January 31, 2013. In addition, the warrants must be valued every reporting period and adjusted to market with the increase or decrease being adjusted through earnings. As of March 31, 2015 and December 31, 2014, the fair value of the warrants was $526,210 and $494,939, respectively. | |
The Preferred Stock has a preference in liquidation that the holders of the Preferred Stock are to be paid out of assets available for distribution prior to holders of common stock. The Preferred Stockholders may cast the number of votes equal to the number of whole shares of common stock into which the shares of Preferred Stock can be converted. In addition, the Preferred Stockholders are to be paid dividends, based on the number of shares of Preferred Stock as if the shares had been converted to common shares, prior to the common stockholders receiving a dividend. | |
The conversion price of the shares of Preferred Stock is currently $0.03 per share. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value of Financial Instruments | NOTE 10 – FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||
Derivative Liabilities | |||||||||||||||||
For purposes of determining whether certain instruments are derivatives for accounting treatment, the Company follows the accounting standard that provides guidance for determining whether an equity-linked financial instrument, or embedded feature, is indexed to an entity’s own stock. The standard applies to any freestanding financial instruments or embedded features that have the characteristics of a derivative, and to any freestanding financial instruments that are potentially settled in an entity’s own common stock. | |||||||||||||||||
Liabilities measured at fair value on a recurring basis are summarized as follows: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Derivative liability related to fair value of warrants | $ | — | $ | — | $ | 6,201,233 | $ | 6,201,233 | |||||||||
Total | $ | — | $ | — | $ | 6,201,233 | $ | 6,201,233 | |||||||||
The following table details the approximate fair value measurements within the fair value hierarchy of the Company’s derivative liabilities using Level 3 inputs: | |||||||||||||||||
Balance at January 1, 2015 | $ | 6,370,709 | |||||||||||||||
Change in fair value of derivative liabilities | (169,476 | ) | |||||||||||||||
Balance at March 31, 2015 | $ | 6,201,233 | |||||||||||||||
As of March 31, 2015, the beneficial conversion feature of the Preferred Stock is treated as an embedded derivative liability and changes in the fair value were recognized in earnings. The Preferred Stock shares are convertible into shares of the Company’s common stock, which did traded in an active securities market, therefore the embedded derivative liability was valued using the following market based inputs: | |||||||||||||||||
Series A Preferred Stock Conversion price | $ | 0.03 | |||||||||||||||
Intrinsic value of conversion option per share | $ | — | |||||||||||||||
The Company has no assets that are measured at fair value on a recurring basis. There were no assets or liabilities measured at fair value on a non-recurring basis during the three months ended March 31, 2014. | |||||||||||||||||
As of March 31, 2015, the Company’s outstanding warrants were treated as derivative liabilities and changes in the fair value were recognized in earnings. These common stock purchase warrants did not trade in an active securities market, and as such, the Company estimated the fair value of these warrants using Black-Scholes and the following assumptions: | |||||||||||||||||
Annual Dividend Yield | 0.00% | ||||||||||||||||
Expected Life (Years) | 2.75 - 4.76 | ||||||||||||||||
Risk-Free Interest Rate | .89% - 1.37% | ||||||||||||||||
Expected Volatility | 177.1% - 193.7% | ||||||||||||||||
Expected volatility was based primarily on historical volatility. Historical volatility was computed using daily pricing observations for recent periods. The Company believes this method produced an estimate that was representative of the Company’s expectations of future volatility over the expected term of these warrants. The Company had no reason to believe future volatility over the expected remaining life of these warrants was likely to differ materially from historical volatility. The expected life was based on the remaining contractual term of the warrants. The risk-free rate was based on the U.S. Treasury rate that corresponded to the expected term of the warrants. |
Stock_Options
Stock Options | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock Options | NOTE 11 – STOCK OPTIONS | ||||||||||||
During 1999, the Board of Directors (“Board”) of the Company adopted, with the approval of the stockholders, a Stock Option Plan. In 2000, the Board superseded that plan and created a new Stock Option Plan, pursuant to which it is authorized to grant options to purchase up to 1.5 million shares of common stock. On December 17, 2003, the Board, with approval of the stockholders, superseded the 2000 plan and created the 2003 Stock Option Plan (the “2003 Plan”). Under the 2003 Plan the Company is authorized to grant options to purchase up to 18,000,000 shares of common stock to the Company’s employees, officers, directors, consultants, and other agents and advisors. The Plan is intended to permit stock options granted to employees under the Plan to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended (“Incentive Stock Options”). All options granted under the 2003 Plan, which are not intended to qualify as Incentive Stock Options, are deemed to be non-qualified options (“Non-Statutory Stock Options”). | |||||||||||||
During 2013, our Board adopted a new omnibus incentive compensation plan (the “2013 Plan”) which will serve as the successor incentive compensation plan to the 2003 Plan, and will provide the Company with an comprehensive plan to design and structure grants of stock options, stock units, stock awards, stock appreciation rights and other stock-based awards for our employees, non-employee directors and certain consultants and advisors. Our Board of Directors believes that the availability of (i) 20,000,000 new shares of our common stock, plus (ii) the 74,004 shares of our common stock available for issuance under the 2003 Plan, will be sufficient to meet the objective. | |||||||||||||
As of March 31, 2015, there are 22,725,996 options that have been issued, and 15,274,004 options that are available to be issued under the Plan. | |||||||||||||
The 2013 Plan is administered by a committee of the Board (“Stock Option Committee”) which determines the persons to whom awards will be granted, the number of awards to be granted and the specific terms of each grant, including the vesting thereof, subject to the provisions of the plan. | |||||||||||||
In connection with Incentive Stock Options, the exercise price of each option may not be less than 100% of the fair market value of the common stock on the date of the grant (or 110% of the fair market value in the case of a grantee holding more than 10% of the outstanding stock of the Company). The aggregate fair market value (determined at the time of the grant) of stock for which an employee may exercise Incentive Stock Options under all plans of the company shall not exceed $1,000,000 per calendar year. If any employee shall have the right to exercise any options in excess of $100,000 during any calendar year, the options in excess of $100,000 shall be deemed to be Non-Statutory Stock Options, including prices, duration, transferability and limitations on exercise. | |||||||||||||
The Company issued Non-Statutory Stock Options pursuant to contractual agreements with non-employees. Options granted under the agreements are expensed when the related service or product is provided. | |||||||||||||
Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in calculating the fair value represent management’s best estimates and involve inherent uncertainties and judgments. | |||||||||||||
Option expense for the three months ended March 31, 2015 was ($54,834). | |||||||||||||
The following tables summarize non-employee stock option/warrant activity of the Company since December 31, 2014: | |||||||||||||
Option/Warrant | Exercise | Weighted Average | |||||||||||
Shares | Price | Exercise | |||||||||||
Price | |||||||||||||
Outstanding, December 31, 2014 | 121,165,874 | $ | 0.01 - $0.20 | $ | 0.1 | ||||||||
Granted | — | — | — | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | — | — | — | ||||||||||
Outstanding, March 31, 2015 | 121,165,874 | $ | 0.01 to $0.20 | $ | 0.1 | ||||||||
Exercisable, March 31, 2015 | 121,165,874 | $ | 0.01 to $0.20 | $ | 0.1 | ||||||||
Weighted Average Remaining Life, Exercisable, March 31, 2015 (years) | 5.5 | ||||||||||||
A summary of incentive stock option transactions for employees since December 31, 2014 is as follows: | |||||||||||||
Option/Warrant | Exercise | Weighted Average | |||||||||||
Shares | Price | Exercise | |||||||||||
Price | |||||||||||||
Outstanding, December 31, 2014 | 53,866,667 | $ | 0.05 - $0.15 | $ | 0.05 | ||||||||
Granted | — | — | — | ||||||||||
Exercised | — | — | — | ||||||||||
Expired/Returned | (1,000,000 | ) | 0.15 | — | |||||||||
Outstanding, March 31, 2015 | 52,866,667 | $ | 0.05 to $0.15 | $ | 0.05 | ||||||||
Exercisable, March 31, 2015 | 52,866,667 | $ | 0.05 to $0.15 | $ | 0.06 | ||||||||
Weighted Average Remaining Life, Exercisable, March 31, 2015 (years) | 9 | ||||||||||||
Operating_Leases
Operating Leases | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Leases [Abstract] | |||||
Operating Leases | NOTE 12 – OPERATING LEASES | ||||
For the three months ended March 31, 2015 and 2014, total rent expense under leases amounted to $19,369 and $17,727. At March 31, 2015, the Company was obligated under various non-cancelable operating lease arrangements for property as follows: | |||||
2015 | 56,403 | ||||
2016 | 31,605 | ||||
$ | 88,008 | ||||
The Company has advised the landlord that the Company was not going to continue to occupy the space at 3112 M. Street, NW, Washington, DC effective May 1, 2015. Settlement negotiations regarding the lease balance are underway. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 13 – RELATED PARTY TRANSACTIONS |
At March 31, 2015 and 2014, two and five shareholders of the Company held $114,000 and $330,249 of the senior secured convertible notes payable and were owed accrued interest of $115,925 and $328,251. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | NOTE 14 – CONTINGENCIES |
In October 2010, the Company filed suit in the Western District of Pennsylvania against WS Packaging Group, Inc. (“WS”) alleging that WS infringed on one of the Company’s patents in the manufacture of MONOPOLY game pieces on behalf of McDonald’s Corp. On June 4, 2012, both WS and the Company filed a stipulation to dismiss the action without prejudice and enter into settlement negotiations. There are no ongoing negotiations. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15 – SUBSEQUENT EVENTS |
The Company continues its efforts to raise additional capital. The Company anticipates that current negotiations with a potential investment group may result in a cash infusion in the near term future. There can, however, be no assurance that the Company will be successful in this matter, nor on terms that would be acceptable to the Company. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of the Business | Nature of the Business |
LaserLock Technologies Inc. (the “Company” or “LaserLock”) was incorporated in the State of Nevada on November 10, 1999. The Company is based in Washington, D.C. and its common stock is quoted on the OTC Pink under the ticker symbol “LLTI”. A high-tech solutions company in the field of authenticating people and products, LaserLock offers state-of-the-art solutions to combat identity fraud and counterfeiting utilizing multi-factor authentication and a suite of security pigments for governments, health care providers, the gaming industry, the financial services industry and high-end retailers. | |
The Company invests in developing new proprietary color shifting inks that it believes will allow it to penetrate broader markets and result in increased revenues. The Company refines its technologies and their applications, and now has what it believes to be one of the most cost effective and efficient authentication technologies available. Its most recent technology takes advantage of the new ubiquitous energy efficient fluorescent lighting to change the color of ink, resulting in numerous potential new applications ranging from credit cards to drivers licenses, passports, stock certificates, clothing labels, currency, ID cards, and tax stamps. The technologies can also be used to protect DVDs, apparel, pharmaceuticals, and virtually any other physical product. | |
The Company’s digital solution is a multi-platform (iOS and Android) strong authentication solution that integrates biometrics and geo-location tagging. The solution completely eliminates passwords and the inherently weak security they provide. The solution also removes the user complexity associated with having to manage many complex passwords. The solution can be delivered either as a high availability cloud service, managed by the Company, or as licensed software product for operation on the client’s premises. | |
The solution integrates three independent authentication factors – something you have (for instance a smartphone), something you know (for instance a color gesture swipe) and something you are (for instance your facial geometry)—into a simple, fast, intuitive solution. The system can also accurately determine the precise location of the individual using a variety of mechanisms including GPS, cell tower triangulation, IP or Wi-Fi address. Because the solution incorporates biometrics it completely eliminates the possibility that users might share their authentication credentials. The combination of biometrics and geolocation provides extremely strong transactional evidence, making it nearly impossible for an end-user to refute having been part of a transaction. | |
The Company’s activities are subject to significant risks and uncertainties, including the need to secure additional funding to operationalize the Company’s current technology. | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on form 10-K for the year ended December 31, 2014, as filed with the SEC. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | |
Comprehensive Income | Comprehensive Income |
The Company follows Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 220 in reporting comprehensive income. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. Since the Company has no items of other comprehensive income (loss), comprehensive income (loss) is equal to net income (loss). | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
The Company’s financial instruments consist of cash, accounts payable and accrued expenses and notes payable. The carrying value of cash, accounts payable and accrued expenses approximate their fair value because of their short maturities. The Company believes the carrying amount of its notes payable and convertible debt approximates its fair value based on rates and other terms currently available to the Company for similar debt instruments. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
For purposes of reporting cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and certificates of deposit and commercial paper with original maturities of 90 days or less to be cash or cash equivalents. | |
Concentration of Credit Risk Involving Cash and Cash Equivalents | Concentration of Credit Risk Involving Cash and Cash Equivalents |
The Company’s cash and cash equivalents are held at two financial institutions. At times, the Company’s deposits may exceed Federal Deposit Insurance Corporation (FDIC) coverage limits. The Company has not experienced any losses from maintaining cash accounts in excess of federally insured limits. | |
Inventory | Inventory |
Inventory principally consists of penlights and pigments and is stated at the lower of cost (determined by the first-in, first-out method) or market. | |
Property and Equipment | Property and Equipment |
Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, principally five to seven years. Maintenance and repairs of property are charged to operations, and major improvements are capitalized. Upon retirement, sale, or other disposition of property and equipment, the costs and accumulated depreciation are eliminated from the accounts, and any resulting gain or loss is included in operation | |
Patents and Trademark | Patents and Trademark |
The Company has filed eleven patent applications relating to the company technology. Currently we have 7 U.S. patents, 4 U.S. applications pending for allowance, and 5 foreign applications pending for allowance. The Company has also purchased a trademark. Costs associated with the registration and legal defense of the patents have been capitalized and are amortized on a straight-line basis over the estimated lives of the patents which were determined to be17 to 20 years. | |
Long-Lived Assets | Long-Lived Assets |
The Company evaluates the recoverability of its long-lived assets in accordance with ASC 360 “Property, Plant, and Equipment.” The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets are measured by a comparison of the carrying amount of an asset to future cash flows expected to be generated by the asset, undiscounted and without interest or independent appraisals. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the assets. | |
Deferred Financing Costs | Deferred Financing Costs |
Costs incurred in securing long-term debt are deferred and amortized, as a charge to interest expense, over the term of the related debt. In the case of long-term debt modifications, the Company follows the guidance provided by ASC 470-50 “Debt – Modification and Extinguishments.” | |
Convertible Notes Payable | Convertible Notes Payable |
Convertible notes payable, for which the embedded conversion feature does not qualify for derivative treatment, are evaluated to determine if the effective or actual rate of conversion per the terms of the convertible note agreement is below market value. In these instances, the Company accounts for the value of the beneficial conversion feature (BCF) as a debt discount, which is then accreted to interest expense over the life of the related debt using the straight-line method which approximates the effective interest method. | |
Derivative Instruments | Derivative Instruments |
The Company evaluates its convertible debt, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with Topic 480 of the FASB ASC and Topic 815 of the FASB Accounting Standards Codification. The result of this accounting treatment is that the fair value of the embedded derivative, if required to be bifurcated, is marked-to-market at each balance sheet date and recorded as a liability. The change in fair value is recorded in the Statement of Operations as a component of other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. | |
In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. | |
The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date. Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument is expected within 12 months of the balance sheet date. | |
Revenue Recognition | Revenue Recognition |
In accordance with SEC Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition (Codified in FASB ASC 605), the Company recognizes revenue when (i) persuasive evidence of a customer or distributor arrangement exists, (ii) a retailer, distributor or wholesaler receives the goods and acceptance occurs, (iii) the price is fixed or determinable, and (iv) collectability of the revenue is reasonably assured. Subject to these criteria, the Company recognizes revenue from product sales, consisting mainly of pigments and penlights, upon shipment to the customer. Royalty revenue is recognized upon receipt of notification from a customer that the Company’s product has been used in the customer’s production process. | |
Income Taxes | Income Taxes |
The Company follows FASB ASC 740 when accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. | |
Stock-based Payments | Stock-based Payments |
The Company accounts for stock-based compensation under the provisions of ASC 718, Compensation—Stock Compensation (“ASC 718”), which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods using the straight-line method. | |
The Company accounts for stock-based compensation awards to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees (“ASC 505-50”). Under ASC 505-50, the Company determines the fair value of the warrants or stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. | |
All issuances of stock options or other equity instruments to non-employees as consideration for goods or services received by the Company are accounted for based on the fair value of the equity instruments issued. Any stock options issued to non-employees are recorded as an expense and additional paid-in capital in stockholders’ equity over the applicable service periods. | |
Advertising Costs | Advertising Costs |
Advertising costs are expensed as incurred. Advertising costs were approximately $158 and $27,283 for the three months ended March 31, 2015 and 2014 and are included in sales and marketing expenses. | |
Research and Development Costs | Research and Development Costs |
In accordance with FASB ASC 730, research and development costs are expensed when incurred. Research and development costs for the three months ended March 31, 2015 and 2014 were $120,386 and $864,729. | |
Basic and Diluted Net Income per Share of Common Stock | Basic and Diluted Net Income per Share of Common Stock |
The Company follows FASB ASC 260 when reporting Earnings Per Share resulting in the presentation of basic and diluted earnings per share. Since the Company reported a net loss for the three months ended March 31, 2015 and 2014, common stock equivalents, including convertible preferred stock, convertible debt, stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and dilutive loss per share during the years were the same. | |
Segment Information | Segment Information |
The Company is organized and operates as one operating segment wherein the Company’s patented technologies are utilized to address counterfeiting issues. In accordance with ASC 280, Segment Reporting, the chief operating decision-maker has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Since the Company operates in one segment and provides one group of similar products, all financial segment and product line information required by ASC 280 can be found in the financial statements. | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements |
As of March 31, 2015 and for the period then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company’s financial statements. | |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted |
As of March 31, 2015, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements through 2016. | |
Reclassifications | Reclassifications |
Certain amounts in 2014 statement of operations have been reclassified in order for them to conform with the 2015 presentation. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Equipment | Equipment consists of the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Furniture and Fixtures | $ | 219,871 | $ | 219,871 | |||||
Equipment | 16,155 | 16,155 | |||||||
236,026 | 236,026 | ||||||||
Less: Accumulated depreciation | 178,518 | 161,205 | |||||||
$ | 57,508 | $ | 74,821 | ||||||
Notes_Payable_Tables
Notes Payable (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Notes Payable | Notes payable consists of the following at March 31, 2015 and December 31, 2014: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Unsecured notes payable due to related parties; interest at 10% per annum; principal and accrued interest due at maturity in September 2015 | $ | 114,000 | $ | 114,000 | |||||
Series A notes payable; interest at 8% per annum; principal and accrued interest due at maturity in October 2011 (past due) | 50,000 | 50,000 | |||||||
Notes payable; interest at 8% per annum, principal and accrued interest due at December 1, 2014 (past due) | 650,000 | 650,000 | |||||||
Notes payable; interest at 5% and 8% per annum, principal and accrued interest due at April 2015 | 123,000 | 123,000 | |||||||
Notes payable; interest at 5% per annum, principal and accrued interest due at June 10, 2015 | 25,000 | — | |||||||
Notes payable; interest at 8% per annum, principal and accrued interest due at June 25, 2015 | 111,102 | — | |||||||
Less: Debt discount | — | (10,447 | ) | ||||||
1,073,102 | 926,553 | ||||||||
Less: Current portion | 1,073,102 | 926,553 | |||||||
$ | — | $ | — | ||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of Liabilities Measured at Fair Value on a Recurring Basis | Liabilities measured at fair value on a recurring basis are summarized as follows: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Derivative liability related to fair value of warrants | $ | — | $ | — | $ | 6,201,233 | $ | 6,201,233 | |||||||||
Total | $ | — | $ | — | $ | 6,201,233 | $ | 6,201,233 | |||||||||
Fair Value Measurements within Fair Value Hierarchy of Derivative Liabilities Using Level 3 Inputs | The following table details the approximate fair value measurements within the fair value hierarchy of the Company’s derivative liabilities using Level 3 inputs: | ||||||||||||||||
Balance at January 1, 2015 | $ | 6,370,709 | |||||||||||||||
Change in fair value of derivative liabilities | (169,476 | ) | |||||||||||||||
Balance at March 31, 2015 | $ | 6,201,233 | |||||||||||||||
Embedded Derivative Liability Valuation Assumptions | The Preferred Stock shares are convertible into shares of the Company’s common stock, which did traded in an active securities market, therefore the embedded derivative liability was valued using the following market based inputs: | ||||||||||||||||
Series A Preferred Stock Conversion price | $ | 0.03 | |||||||||||||||
Intrinsic value of conversion option per share | $ | — | |||||||||||||||
Schedule of Common Stock Purchase Warrants Valuation Assumptions | As of March 31, 2015, the Company’s outstanding warrants were treated as derivative liabilities and changes in the fair value were recognized in earnings. These common stock purchase warrants did not trade in an active securities market, and as such, the Company estimated the fair value of these warrants using Black-Scholes and the following assumptions: | ||||||||||||||||
Annual Dividend Yield | 0.00% | ||||||||||||||||
Expected Life (Years) | 2.75 - 4.76 | ||||||||||||||||
Risk-Free Interest Rate | .89% - 1.37% | ||||||||||||||||
Expected Volatility | 177.1% - 193.7% |
Stock_Options_Tables
Stock Options (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Non-employee Stock Option/Warrant Activity | The following tables summarize non-employee stock option/warrant activity of the Company since December 31, 2014: | ||||||||||||
Option/Warrant | Exercise | Weighted Average | |||||||||||
Shares | Price | Exercise | |||||||||||
Price | |||||||||||||
Outstanding, December 31, 2014 | 121,165,874 | $ | 0.01 - $0.20 | $ | 0.1 | ||||||||
Granted | — | — | — | ||||||||||
Exercised | — | — | — | ||||||||||
Expired | — | — | — | ||||||||||
Outstanding, March 31, 2015 | 121,165,874 | $ | 0.01 to $0.20 | $ | 0.1 | ||||||||
Exercisable, March 31, 2015 | 121,165,874 | $ | 0.01 to $0.20 | $ | 0.1 | ||||||||
Weighted Average Remaining Life, Exercisable, March 31, 2015 (years) | 5.5 | ||||||||||||
Schedule of Incentive Stock Option Transactions for Employees | A summary of incentive stock option transactions for employees since December 31, 2014 is as follows: | ||||||||||||
Option/Warrant | Exercise | Weighted Average | |||||||||||
Shares | Price | Exercise | |||||||||||
Price | |||||||||||||
Outstanding, December 31, 2014 | 53,866,667 | $ | 0.05 - $0.15 | $ | 0.05 | ||||||||
Granted | — | — | — | ||||||||||
Exercised | — | — | — | ||||||||||
Expired/Returned | (1,000,000 | ) | 0.15 | — | |||||||||
Outstanding, March 31, 2015 | 52,866,667 | $ | 0.05 to $0.15 | $ | 0.05 | ||||||||
Exercisable, March 31, 2015 | 52,866,667 | $ | 0.05 to $0.15 | $ | 0.06 | ||||||||
Weighted Average Remaining Life, Exercisable, March 31, 2015 (years) | 9 | ||||||||||||
Operating_Leases_Tables
Operating Leases (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Leases [Abstract] | |||||
Schedule of Non-cancelable Operating Lease Arrangements for Property | At March 31, 2015, the Company was obligated under various non-cancelable operating lease arrangements for property as follows: | ||||
2015 | 56,403 | ||||
2016 | 31,605 | ||||
$ | 88,008 | ||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Segment | ||
Institution | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Number of financial institutions at which company's cash and cash equivalents are held | 2 | |
Depreciation method of property and equipment | Straight-line method | |
Research and development costs | $120,386 | $864,729 |
Number of operating segment | 1 | |
Patents and Trademark | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Number of provisional patents filed | 11 | |
Number of patents issued | 7 | |
Amortization method of patents | Straight-line basis | |
Patents and Trademark | UNITED STATES | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Number of provisional patents pending for allowance. | 4 | |
Patents and Trademark | Foreign Countries | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Number of provisional patents pending for allowance. | 5 | |
Sales and marketing expenses | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Advertising costs | $158 | $27,283 |
Minimum | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Estimated useful lives of property and equipment | 5 years | |
Minimum | Patents and Trademark | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Estimated lives of patents | 17 years | |
Maximum | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Estimated useful lives of property and equipment | 7 years | |
Maximum | Patents and Trademark | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Estimated lives of patents | 20 years |
Property_and_Equipment_Equipme
Property and Equipment - Equipment (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment, Net [Abstract] | ||
Furniture and Fixtures | $219,871 | $219,871 |
Equipment | 16,155 | 16,155 |
Property, Plant and Equipment, Gross, Total | 236,026 | 236,026 |
Less: Accumulated depreciation | 178,518 | 161,205 |
Capital equipment, net of accumulated depreciation of $178,518 and $161,205 as of March 31, 2015 and 2014 | $57,508 | $74,821 |
Plant_and_Equipment_Additional
Plant and Equipment - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Property, Plant and Equipment, Net [Abstract] | ||
Depreciation of property and equipment | $17,313 | $17,313 |
Patents_and_Trademark_Addition
Patents and Trademark - Additional Information (Detail) (Patents and Trademark, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Number of patents issued | 7 | |
Number of provisional patents filed | 11 | |
Amortization method of patents | Straight-line basis | |
Capitalized patent costs | $0 | $21,954 |
Amortization expense | $4,114 | $3,277 |
Anti Counterfeiting Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Number of patents issued | 7 | |
Number of provisional patents filed | 4 | |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated lives of patents | 17 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated lives of patents | 20 years |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income Tax Expense (Benefit) | $0 | $0 | |
Unrecognized tax benefits | 0 | ||
Interest or penalties related to unrecognized tax benefits | 0 | ||
Change in unrecognized tax benefits | 0 | ||
Accrual for uncertain tax positions | $0 |
Senior_Secured_Convertible_Not1
Senior Secured Convertible Notes Payable -Related Parties - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Share data in Millions, unless otherwise specified | Jun. 30, 2013 | Mar. 31, 2015 | Dec. 31, 2012 | Dec. 31, 2006 | Jun. 30, 2011 | 31-May-07 | Feb. 28, 2006 |
Debt Instrument [Line Items] | |||||||
Accrued interest | 115,925 | ||||||
Outstanding principal balance on notes | 114,000 | ||||||
Senior Secured Convertible Promissory Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument principal amount | 225,000 | 596,500 | 800,000 | ||||
Interest rate | 10.00% | 12.00% | 10.00% | ||||
Sale price of notes payable | 800,000 | ||||||
Remaining debt and accrued interest was extended until September 15, 2015 | 178,749 | ||||||
Accrued interest | 181,125 | ||||||
Common stock shares issued on conversion of debt (in shares) | 7.4 | ||||||
Amount of notes converted into common stock shares | $1,628,000 | ||||||
Debt instrument conditional covenants amount | If an equity financing with total proceeds of more than $5,000,000 occurs while any of these notes are outstanding, holders of notes will have the right, at their option, to convert the outstanding principal and interest of the notes into shares of common stock at a discount of 30% of the price per share in the qualified financing. | ||||||
Percentage of discount on price per share | 30.00% |
Notes_Payable_Schedule_of_Note
Notes Payable - Schedule of Notes Payable (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Less: Debt discount | ($10,447) | |
Notes payable | 1,073,102 | 926,553 |
Notes payable | 1,073,102 | 926,553 |
Less: Current portion | 959,102 | 812,553 |
Long-term portion | 0 | 0 |
Adjustment | ||
Debt Instrument [Line Items] | ||
Less: Current portion | 1,073,102 | 926,553 |
Unsecured notes payable due to related parties; interest at 10% per annum; principal and accrued interest due at maturity in September 2015 | ||
Debt Instrument [Line Items] | ||
Notes payable | 114,000 | 114,000 |
Notes payable | 114,000 | 114,000 |
Series A notes payable; interest at 8% per annum; principal and accrued interest due at maturity in October 2011 (past due) | ||
Debt Instrument [Line Items] | ||
Notes payable | 50,000 | 50,000 |
Notes payable | 50,000 | 50,000 |
Notes payable; interest at 8% per annum; principal and accrued interest due at December 1, 2014 (past due) | ||
Debt Instrument [Line Items] | ||
Notes payable | 650,000 | 650,000 |
Notes payable | 650,000 | 650,000 |
Notes payable, interest at 5% and 8% per annum; principal and interest due April 2015 | ||
Debt Instrument [Line Items] | ||
Notes payable | 123,000 | 123,000 |
Notes payable | 123,000 | 123,000 |
Notes payable; interest at 5% per annum, principal and accrued interest due at June 10, 2015 | ||
Debt Instrument [Line Items] | ||
Notes payable | 25,000 | |
Notes payable | 25,000 | |
Notes payable; interest at 8% per annum, principal and accrued interest due at June 25, 2015 | ||
Debt Instrument [Line Items] | ||
Notes payable | 111,102 | |
Notes payable | $111,102 |
Notes_Payable_Schedule_of_Note1
Notes Payable - Schedule of Notes Payable (Parenthetical) (Detail) | Mar. 31, 2015 | Dec. 31, 2014 |
Unsecured notes payable due to related parties; interest at 10% per annum; principal and accrued interest due at maturity in September 2015 | ||
Debt Instrument [Line Items] | ||
Interest rate | 10.00% | 10.00% |
Series A notes payable; interest at 8% per annum; principal and accrued interest due at maturity in October 2011 (past due) | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.00% | 8.00% |
Notes payable; interest at 8% per annum; principal and accrued interest due at December 1, 2014 (past due) | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.00% | 8.00% |
Notes payable, interest at 5% and 8% per annum; principal and interest due April 2015 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.00% | 8.00% |
Notes payable; interest at 5% per annum, principal and accrued interest due at June 10, 2015 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.00% | |
Notes payable; interest at 8% per annum, principal and accrued interest due at June 25, 2015 | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.00% |
Notes_Payable_Additional_Infor
Notes Payable - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Jun. 10, 2014 | Aug. 05, 2014 | Aug. 12, 2014 | Aug. 14, 2014 | Sep. 08, 2014 | Mar. 27, 2015 | Feb. 10, 2015 | Dec. 05, 2014 | |
Debt Instrument [Line Items] | |||||||||||
Note payable balance | $959,102 | $812,553 | |||||||||
Proceeds from issuance of notes payable | 136,102 | ||||||||||
Accumulated discount, notes payable (in dollars) | 10,447 | ||||||||||
Interest expense | 30,250 | 10,907 | |||||||||
Warrant | June 10, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value of warrant liability | 19,950 | 17,741 | |||||||||
Warrant | August 5, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value of warrant liability | 12,322 | 11,178 | |||||||||
Warrant | August 12, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value of warrant liability | 5,583 | 5,585 | |||||||||
Warrant | August 14, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value of warrant liability | 11,169 | 11,226 | |||||||||
Warrant | September 8, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value of warrant liability | 16,767 | 17,385 | |||||||||
Warrant | Debt Instrument Date December 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value of warrant liability | 11,325 | 11,812 | |||||||||
Series A Notes Payable | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Note payable balance | 50,000 | ||||||||||
Interest rate, notes payable | 8.00% | ||||||||||
Accrued interest | 21,667 | ||||||||||
Notes Payable | June 10, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Note payable balance | 250,000 | 250,000 | |||||||||
Interest rate, notes payable | 8.00% | ||||||||||
Interest expense | 34,222 | ||||||||||
Notes Payable | August 5, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Note payable balance | 100,000 | 100,000 | |||||||||
Interest rate, notes payable | 8.00% | ||||||||||
Interest expense | 22,914 | ||||||||||
Notes Payable | August 12, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Note payable balance | 50,000 | 50,000 | |||||||||
Interest rate, notes payable | 8.00% | ||||||||||
Interest expense | 17,455 | ||||||||||
Notes Payable | August 14, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Note payable balance | 100,000 | 100,000 | |||||||||
Interest rate, notes payable | 8.00% | ||||||||||
Interest expense | 32,274 | ||||||||||
Notes Payable | September 8, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Note payable balance | 150,000 | 150,000 | |||||||||
Interest rate, notes payable | 8.00% | ||||||||||
Interest expense | 44,140 | ||||||||||
Notes Payable | Debt Instrument Date December 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Note payable balance | 100,000 | 89,553 | |||||||||
Interest rate, notes payable | 8.00% | ||||||||||
Interest expense | 10,447 | ||||||||||
Notes Payable | Warrant | June 10, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from issuance of notes payable | 250,000 | ||||||||||
Number of common stock called by warrants (in shares) | 1,000,000 | ||||||||||
Exercise price (in dollars per share) | $0.10 | ||||||||||
Fair value of warrant liability | 39,650 | ||||||||||
Expected volatility | 248.20% | ||||||||||
Risk-Free Interest Rate | 1.67% | ||||||||||
Expected warrant term | 5 years | ||||||||||
Accumulated discount, notes payable (in dollars) | 34,222 | ||||||||||
Notes Payable | Warrant | August 5, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from issuance of notes payable | 100,000 | ||||||||||
Number of common stock called by warrants (in shares) | 600,000 | ||||||||||
Exercise price (in dollars per share) | $0.05 | ||||||||||
Fair value of warrant liability | 29,725 | ||||||||||
Expected volatility | 233.80% | ||||||||||
Risk-Free Interest Rate | 1.67% | ||||||||||
Expected warrant term | 5 years | ||||||||||
Accumulated discount, notes payable (in dollars) | 22,914 | ||||||||||
Notes Payable | Warrant | August 12, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from issuance of notes payable | 50,000 | ||||||||||
Number of common stock called by warrants (in shares) | 300,000 | ||||||||||
Exercise price (in dollars per share) | $0.05 | ||||||||||
Fair value of warrant liability | 26,817 | ||||||||||
Expected volatility | 233.80% | ||||||||||
Risk-Free Interest Rate | 1.67% | ||||||||||
Expected warrant term | 5 years | ||||||||||
Accumulated discount, notes payable (in dollars) | 17,455 | ||||||||||
Notes Payable | Warrant | August 14, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from issuance of notes payable | 100,000 | ||||||||||
Number of common stock called by warrants (in shares) | 600,000 | ||||||||||
Exercise price (in dollars per share) | $0.05 | ||||||||||
Fair value of warrant liability | 47,676 | ||||||||||
Expected volatility | 233.80% | ||||||||||
Risk-Free Interest Rate | 1.67% | ||||||||||
Expected warrant term | 5 years | ||||||||||
Accumulated discount, notes payable (in dollars) | 32,274 | ||||||||||
Notes Payable | Warrant | September 8, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from issuance of notes payable | 150,000 | ||||||||||
Number of common stock called by warrants (in shares) | 900,000 | ||||||||||
Exercise price (in dollars per share) | $0.05 | ||||||||||
Fair value of warrant liability | 62,544 | ||||||||||
Expected volatility | 233.80% | ||||||||||
Risk-Free Interest Rate | 1.67% | ||||||||||
Expected warrant term | 5 years | ||||||||||
Accumulated discount, notes payable (in dollars) | 44,140 | ||||||||||
Notes Payable | Warrant | Debt Instrument Date December 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from issuance of notes payable | 100,000 | ||||||||||
Number of common stock called by warrants (in shares) | 600,000 | ||||||||||
Exercise price (in dollars per share) | $0.05 | ||||||||||
Fair value of warrant liability | 11,812 | ||||||||||
Expected volatility | 229.00% | ||||||||||
Risk-Free Interest Rate | 1.68% | ||||||||||
Expected warrant term | 5 years | ||||||||||
Accumulated discount, notes payable (in dollars) | 10,447 | ||||||||||
Notes Payable | Warrant | Debt Instrument Date December 2014 | During the issuance | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Accumulated discount, notes payable (in dollars) | 10,563 | ||||||||||
Notes Payable | Director | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, notes payable | 8.00% | 5.00% | |||||||||
Proceeds from issuance of notes payable | 111,102 | 25,000 | |||||||||
Note due date | 25-Jun-15 | 10-Jun-15 | |||||||||
Notes Payable | Stockholder | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, notes payable | 5.00% | ||||||||||
Proceeds from issuance of notes payable | $23,000 | ||||||||||
Note due date | 5-Apr-15 |
Warrant_Liability_Additional_I
Warrant Liability - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2014 | Jan. 01, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | |
Major Agreements [Line Items] | |||||
Warrant liability | $6,201,233 | $6,370,709 | |||
Verify Me | Warrants issued on January 1, 2014 | |||||
Major Agreements [Line Items] | |||||
Fair value of warrant liability | 116,789 | 121,209 | |||
Number of warrants issued | 6,349,206 | ||||
Exercise price (in dollars per share) | $0.10 | ||||
Agreements | Zaah Technologies | |||||
Major Agreements [Line Items] | |||||
Warrant liability | 2,400,000 | ||||
Fair value of warrant liability | 865,277 | 787,544 | |||
Agreements | Verify Me | Research and Development Expense | |||||
Major Agreements [Line Items] | |||||
Initial fair value of warrant expensed as research and development cost | 444,000 | ||||
Patent And Technology Agreement | |||||
Major Agreements [Line Items] | |||||
Exercise price (in dollars per share) | $0.10 | ||||
Additional payment for patent and technology | 4,500,000 | ||||
Discount to market price at time of issuance | 10.00% | ||||
Current share price (in dollars per share) | $0.04 | ||||
Additional shares issued for patent and technology agreement (in shares) | 125,000,000 | ||||
Number of common stock shares purchased under warrants (in shares) | 125,000,000 | ||||
Patent And Technology Agreement | Stock Options And Warrants | |||||
Major Agreements [Line Items] | |||||
Number of warrants to be issued(in shares) | 250,000,000 | ||||
Exercise price of warrant to be issued(in dollars per share) | $0.02 | ||||
Warrant to be issued value | $4,615,841 | $4,892,089 | |||
Patent And Technology Agreement | Stock Options And Warrants | Warrant | |||||
Major Agreements [Line Items] | |||||
Dividend yield | 0.00% | 0.00% | |||
Expected volatility | 190.90% | 229.10% | |||
Risk free interest | 1.37% | 1.65% | |||
Expected warrant term | 5 years | 5 years |
Convertible_Preferred_Stock_Ad
Convertible Preferred Stock - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2013 | |
Class of Stock [Line Items] | ||||
Preferred stock value | $633,333 | $633,333 | ||
Fair value of warrants | 526,210 | 494,939 | ||
Convertible Preferred Stock Subject to Mandatory Redemption [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock value | 1,000,000 | 1,000,000 | ||
Subscription Agreement | ||||
Class of Stock [Line Items] | ||||
Convertible preferred stock description | At any time before January 31, 2015, VerifyMe has the right, but not the obligation, to require the Company to repurchase all, but not less than all, of the capital stock of the Company and warrants exercisable for capital stock of the Company held by VerifyMe in exchange for the price originally paid by VerifyMe therefor upon the occurrence of any of the following events:(i) the consummation of any bona fide business acquisition, (ii) the incurrence of any indebtedness by the Company in an amount in excess of $2 million, (iii) the issuance or sale of any security having a preference on liquidation senior to common stock, or (iv) the sale by the Company of capital stock or warrants exercisable for its capital stock at a price below $0.03 per share. | |||
Excess amount for incurring indebtedness | 2,000,000 | |||
Exercise price of capital stock or warrant | $0.03 | |||
Fair value of warrants | 2,995,791 | |||
Subscription Agreement | Verify Me | ||||
Class of Stock [Line Items] | ||||
Beneficial conversion feature at fair market value | 0 | 0 | ||
Deemed dividend distribution | 1,000,000 | |||
Subscription Agreement | Convertible Preferred Stock | Verify Me | ||||
Class of Stock [Line Items] | ||||
Number of preferred stock purchased | 33,333,333 | |||
Subscription Agreement | Common Stock | Verify Me | ||||
Class of Stock [Line Items] | ||||
Number of common stock called by warrants (in shares) | 33,333,333 | 33,333,333 | ||
Value of shares issued | $1,000,000 | |||
Exercise price of warrants | $0.12 | $0.12 | ||
Subscription Agreement | Preferred Class | ||||
Class of Stock [Line Items] | ||||
Initial conversion price per share (in dollars per share) | $0.03 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Schedule of Liabilities Measured at Fair Value on a Recurring Basis (Detail) (Fair Value on a Recurring Basis, USD $) | Mar. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative liability related to fair value of warrants | $6,201,233 |
Total | 6,201,233 |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative liability related to fair value of warrants | 6,201,233 |
Total | $6,201,233 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Fair Value Measurements within Fair Value Hierarchy of Derivative Liabilities Using Level 3 Inputs (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $6,370,709 |
Change in fair value of derivative liabilities | -169,476 |
Ending balance | $6,201,233 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Embedded Derivative Liability Valuation Assumptions (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Series A Preferred Stock Conversion price | $0.03 |
Intrinsic value of conversion option per share | $0 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | Mar. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Assets measured at fair value on recurring basis | $0 |
Assets or liabilities measured at fair value on non-recurring basis | $0 |
Fair_Value_of_Financial_Instru6
Fair Value of Financial Instruments - Schedule of Common Stock Purchase Warrants Valuation Assumptions (Detail) (Warrant) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |
Annual Dividend Yield | 0.00% |
Minimum | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |
Expected Life (Years) | 2 years 9 months |
Risk-Free Interest Rate | 0.89% |
Expected volatility | 177.10% |
Maximum | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |
Expected Life (Years) | 4 years 9 months 4 days |
Risk-Free Interest Rate | 1.37% |
Expected volatility | 193.70% |
Stock_Options_Additional_infor
Stock Options - Additional information (Detail) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2013 | Dec. 17, 2003 | Dec. 31, 2000 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option expense | ($54,834) | |||
Stock Option 2003 Plan | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized to grant options | 20,000,000 | |||
Number of options available to be issued | 74,004 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, description | The exercise price of each option may not be less than 100% of the fair market value of the common stock on the date of the grant (or 110% of the fair market value in the case of a grantee holding more than 10% of the outstanding stock of the Company). The aggregate fair market value (determined at the time of the grant) of stock for which an employee may exercise Incentive Stock Options under all plans of the company shall not exceed $1,000,000 per calendar year. If any employee shall have the right to exercise any options in excess of $100,000 during any calendar year, the options in excess of $100,000 shall be deemed to be Non-Statutory Stock Options, including prices, duration, transferability and limitations on exercise. | |||
Stock Options | Stock Option 2003 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized to grant options | 18,000,000 | |||
Number of options available to be issued | 15,274,004 | |||
Number of option issued | 22,725,996 | |||
Stock Options | Stock Option 2000 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized to grant options | 1,500,000 |
Stock_Options_NonEmployee_Stoc
Stock Options - Non-Employee Stock Option/Warrant Activity (Detail) (Stock Options And Warrants, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Option/Warrant Shares | ||
Outstanding, beginning balance | 121,165,874 | |
Granted | 0 | |
Exercised | 0 | |
Expired | 0 | |
Outstanding, ending balance | 121,165,874 | |
Exercisable, March 31, 2015 | 121,165,874 | |
Weighted Average Remaining Life, Exercisable, March 31, 2015 (years) | 5 years 6 months | |
Exercise Price | ||
Granted | $0 | |
Exercised | $0 | |
Expired | $0 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance | $0.10 | |
Granted | $0 | |
Exercised | $0 | |
Expired | $0 | |
Outstanding, ending balance | $0.10 | |
Exercisable, March 31, 2015 | $0.10 | |
Minimum | ||
Exercise Price | ||
Outstanding, beginning balance | $0.01 | |
Outstanding, ending balance | $0.01 | $0.01 |
Exercisable, March 31, 2015 | $0.01 | |
Maximum | ||
Exercise Price | ||
Outstanding, beginning balance | $0.20 | |
Outstanding, ending balance | $0.20 | $0.20 |
Exercisable, March 31, 2015 | $0.20 |
Stock_Options_Incentive_Stock_
Stock Options - Incentive Stock Option Transactions (Detail) (Incentive Stock Options [Member], USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Option/Warrant Shares | ||
Outstanding, beginning balance | 53,866,667 | |
Granted | 0 | |
Exercised | 0 | |
Expired/Returned | -1,000,000 | |
Outstanding, ending balance | 52,866,667 | |
Exercisable, March 31, 2015 | 52,866,667 | |
Weighted Average Remaining Life, Exercisable, March 31, 2015 (years) | 9 years | |
Exercise Price | ||
Granted | $0 | |
Exercised | $0 | |
Expired/Returned | $0.15 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance | $0.05 | |
Granted | $0 | |
Exercised | $0 | |
Expired/Returned | $0 | |
Outstanding, ending balance | $0.05 | |
Exercisable, March 31, 2015 | $0.06 | |
Minimum | ||
Exercise Price | ||
Outstanding, beginning balance | $0.05 | |
Outstanding, ending balance | $0.05 | $0.05 |
Exercisable, March 31, 2015 | $0.05 | |
Maximum | ||
Exercise Price | ||
Outstanding, beginning balance | $0.15 | |
Outstanding, ending balance | $0.15 | $0.15 |
Exercisable, March 31, 2015 | $0.15 |
Operating_Leases_Additional_In
Operating Leases - Additional Information (Detail) (General and Administrative Expense, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
General and Administrative Expense | ||
Operating Leased Assets [Line Items] | ||
Total rent expense under leases | $19,369 | $17,727 |
Operating_Leases_Schedule_of_N
Operating Leases - Schedule of Non-cancelable Operating Lease Arrangements for Property (Detail) (USD $) | Mar. 31, 2015 |
Leases, Operating [Abstract] | |
2015 | $56,403 |
2016 | 31,605 |
Total | $88,008 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Shareholder | |||
Related Party Transaction [Line Items] | |||
Convertible notes payable | $114,000 | $114,000 | |
Senior Secured Convertible Promissory Notes | |||
Related Party Transaction [Line Items] | |||
Number of shareholders | 5 | ||
Convertible notes payable | 330,249 | ||
Amount of accrued interest owed by shareholders | 328,251 | ||
Senior Secured Convertible Promissory Notes | 2 Shareholders | |||
Related Party Transaction [Line Items] | |||
Number of shareholders | 2 | ||
Convertible notes payable | 114,000 | ||
Amount of accrued interest owed by shareholders | $115,925 |