Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | DRONE AVIATION HOLDING CORP. | ||
Entity Central Index Key | 1178727 | ||
Trading Symbol | drne | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $12,924,476 | ||
Entity Common Stock, Shares Outstanding | 45,708,121 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
CURRENT ASSETS: | |||
Cash | $1,369,896 | $109,826 | |
Accounts receivable - trade | 30,170 | 8,085 | [1] |
Inventory | 39,404 | 75,311 | [1] |
Prepaid expenses | 50,169 | 1,186 | [1] |
Total current assets | 1,489,639 | 194,408 | [1] |
PROPERTY AND EQUIPMENT, at cost: | 34,064 | 6,561 | [1] |
Less - accumulated depreciation and amortization | -7,040 | -4,563 | [1] |
Net property and equipment | 27,024 | 1,998 | [1] |
OTHER ASSETS: | |||
Goodwill | 99,799 | 807,824 | [1] |
Intangible asset, net | 103,609 | [1] | |
Total other assets | 203,408 | 807,824 | [1] |
TOTAL ASSETS | 1,720,071 | 1,004,230 | [1] |
CURRENT LIABILITIES: | |||
Due to parent | 206,874 | [1] | |
Accounts payable - trade and accrued liabilities | 64,383 | 90,911 | [1] |
Accounts payable due to related party | 2,181 | 50,691 | [1] |
Unearned revenue | 1,650 | [1] | |
Note Payable - Oklahoma Technology Commercialization Center- Current | 110,000 | [1] | |
Total current liabilities | 176,564 | 350,126 | [1] |
TOTAL LIABILITIES | 176,564 | 350,126 | [1] |
COMMITMENTS AND CONTINGENCIES | [1] | ||
STOCKHOLDERS' EQUITY (DEFICIT): | |||
Common stock, $.0001 par value; authorized 300,000,000 shares; 37,078,114 and 0 shares issued and outstanding, at December 31, 2014 and December 31, 2013, respectively | 3,708 | [1] | |
Additional paid-in capital | 3,699,108 | 921,500 | [1] |
Retained Earnings (Deficit) | -2,163,408 | -268,396 | [1] |
Total stockholders' equity | 1,543,507 | 654,104 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,720,071 | 1,004,230 | [1] |
Series A Preferred Stock [Member] | |||
STOCKHOLDERS' EQUITY (DEFICIT): | |||
Preferred stock value | 40 | [1] | |
Total stockholders' equity | 40 | ||
Series B Preferred Stock [Member] | |||
STOCKHOLDERS' EQUITY (DEFICIT): | |||
Preferred stock value | 32 | [1] | |
Total stockholders' equity | 32 | ||
Series B-1 Preferred Stock [Member] | |||
STOCKHOLDERS' EQUITY (DEFICIT): | |||
Preferred stock value | 7 | [1] | |
Series C Preferred Stock [Member] | |||
STOCKHOLDERS' EQUITY (DEFICIT): | |||
Preferred stock value | 35 | [1] | |
Total stockholders' equity | 35 | ||
Series D Preferred Stock [Member] | |||
STOCKHOLDERS' EQUITY (DEFICIT): | |||
Preferred stock value | 3,605 | 1,000 | [1] |
Total stockholders' equity | 3,605 | ||
Series E Preferred Stock [Member] | |||
STOCKHOLDERS' EQUITY (DEFICIT): | |||
Preferred stock value | 270 | [1] | |
Total stockholders' equity | 270 | ||
Series F Preferred Stock [Member] | |||
STOCKHOLDERS' EQUITY (DEFICIT): | |||
Preferred stock value | 110 | [1] | |
Total stockholders' equity | $110 | ||
[1] | Lighter Than Air Systems Corp. only |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 37,078,114 | 0 |
Common stock, shares outstanding | 37,078,114 | 0 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, authorized | 595,000 | 595,000 |
Preferred stock, shares issued | 396,750 | 0 |
Preferred stock, shares outstanding | 396,750 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, authorized | 324,671 | 324,671 |
Preferred stock, shares issued | 324,671 | 0 |
Preferred stock, shares outstanding | 324,671 | 0 |
Series B-1 Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, authorized | 156,231 | 156,231 |
Preferred stock, shares issued | 68,731 | 0 |
Preferred stock, shares outstanding | 68,731 | 0 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, authorized | 355,000 | 355,000 |
Preferred stock, shares issued | 345,400 | 0 |
Preferred stock, shares outstanding | 345,400 | 0 |
Series D Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, authorized | 36,050,000 | 36,050,000 |
Preferred stock, shares issued | 36,050,000 | 10,000,000 |
Preferred stock, shares outstanding | 36,050,000 | 10,000,000 |
Series E Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, authorized | 2,700,000 | 2,700,000 |
Preferred stock, shares issued | 2,700,000 | 0 |
Preferred stock, shares outstanding | 2,700,000 | 0 |
Series F Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 1,100,333 | 0 |
Preferred stock, shares outstanding | 1,100,333 | 0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Statement [Abstract] | |||
Revenues | $858,054 | $847,314 | [1] |
Cost of goods sold | 675,253 | 511,689 | [1] |
Gross profit | 182,801 | 335,625 | [1] |
General and administrative expense | 1,904,793 | 304,695 | [1] |
Income (loss) from operations | -1,721,992 | 30,930 | [1] |
Other income (expense) | |||
Loss on sale and impairment of securities held for resale | -42,821 | [1] | |
Loss on derivative liability | -350,969 | [1] | |
Income tax expense | -5,571 | [1] | |
Interest income | 235 | [1] | |
Interest expense | -2,372 | -811 | [1] |
Total other income (expense) | -401,498 | -811 | [1] |
NET INCOME (LOSS) | -2,123,490 | 30,119 | [1] |
Deemed dividend on Series F convertible preferred stock | -192,558 | [1] | |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | ($2,316,048) | $30,119 | [1] |
Weighted average number of common shares outstanding - basic and diluted | 15,787,305 | [1] | |
Basic and diluted net income (loss) per share | ($0.15) | [1] | |
[1] | Lighter Than Air Systems Corp. only |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | ||
OPERATING ACTIVITIES: | |||
Net (loss) income | ($2,123,490) | $30,119 | [1] |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||
Loss on disposal and impairment of available-for-sale securities | 42,821 | [1] | |
Loss on derivative liability | 350,969 | [1] | |
Depreciation | 2,477 | 1,915 | [1] |
Amortization expense | 31,941 | [1] | |
Net fair value adjustment for LTAS push down accounting | -143,126 | [1] | |
Shares issued for service - third party | 341,667 | [1] | |
Changes in current assets and liabilities: | |||
Accounts receivable | 104,880 | 169,365 | [1] |
Inventory | 70,177 | -59,985 | [1] |
Prepaid expenses and other current assets | -11,385 | 33,791 | [1] |
Accounts payable and accrued expense | -132,363 | -36,200 | [1] |
Due from related party | 20,027 | [1] | |
Deferred revenue | -48,350 | [1] | |
Net cash (used in) operating activities | -1,302,279 | -52,471 | [1] |
INVESTING ACTIVITIES: | |||
Purchase of furniture and equipment | -27,863 | [1] | |
Cash (paid) received on business combination, net | -304,639 | [1] | |
Advances (to) from Parent | [1] | ||
Cash from reverse merger | 1,692,896 | [1] | |
Cash from sales of available-for-sale securities | 168,704 | [1] | |
Net cash provided by investing activities | 1,529,098 | [1] | |
FINANCING ACTIVITIES: | |||
Proceeds from warrant exercises | 17,000 | [1] | |
Proceeds from Series F preferred stock issued for cash | 822,750 | [1] | |
Proceeds from common stock issued for cash | 653,327 | [1] | |
Redemption of Series B-1 preferred stock | -350,000 | [1] | |
Net cash provided by financing activities | 1,143,077 | [1] | |
NET INCREASE (DECREASE) IN CASH | 1,369,896 | -52,471 | [1] |
CASH, beginning of period | 109,826 | 162,297 | [1] |
CASH, end of period | 1,369,896 | 109,826 | |
Cash paid during the years ended December 31: | |||
Interest | 2,371 | 811 | [1] |
Income taxes | 5,571 | [1] | |
Noncash investing and financing activities for the years ended December 31: | |||
Cashless exercise of Series E preferred stock attached warrants | 37 | [1] | |
Derivative liability written off to APIC due to warrant exercise | 2,510,793 | [1] | |
Conversion of Series A preferred stock to common stock | 1,983 | [1] | |
Conversion of Series C preferred stock to common stock | 96 | ||
Reverse merger adjustment | -2,060,518 | [1] | |
Deemed dividend beneficial conversion feature on convertible preferred stock | 192,558 | [1] | |
Business combination adjustment | $79,000 | [1] | |
[1] | Lighter Than Air Systems Corp. only |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B-1 Preferred Stock [Member] | Series C Preferred Stock [Member] | Series D Preferred Stock [Member] | Series E Preferred Stock [Member] | Series F Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit | Accumulated Deficit | Accumulated Deficit |
Predecessor [Member] | Successor [Member] | Predecessor [Member] | Successor [Member] | Predecessor [Member] | Successor [Member] | ||||||||||||
Beginning balance at Dec. 31, 2012 | $161,675 | $1 | $181,148 | ($19,474) | |||||||||||||
Beginning balance, Shares at Dec. 31, 2012 | 100 | ||||||||||||||||
Sale of common stock | -161,675 | 1 | -181,148 | 19,474 | |||||||||||||
Sale of common stock, Shares | -100 | ||||||||||||||||
Ending balance at Mar. 28, 2013 | |||||||||||||||||
Ending balance, Shares at Mar. 28, 2013 | |||||||||||||||||
Net Loss | -268,396 | -268,396 | |||||||||||||||
Purchase of common stock | 922,500 | 1 | 922,499 | ||||||||||||||
Purchase of common stock, Shares | 100 | ||||||||||||||||
Ending balance at Dec. 31, 2013 | 654,104 | 1 | 922,499 | -268,396 | |||||||||||||
Ending balance, Shares at Dec. 31, 2013 | 100 | ||||||||||||||||
Net Loss | -2,123,490 | -2,123,490 | |||||||||||||||
Net loss from LTAS from 1/1/14 to 5/5/14 | -39,918 | -39,918 | |||||||||||||||
Common stock of Drone Aviation Corp issued for cash | 653,327 | 2,605 | 805 | 649,917 | |||||||||||||
Common stock of Drone Aviation Corp issued for cash, Shares | 26,050,000 | 8,050,000 | |||||||||||||||
Drone Aviation Corp stock issued to LTAS upon business combination | 79,000 | 1,000 | 78,000 | ||||||||||||||
Drone Aviation Corp stock issued to LTAS upon business combination, Shares | 10,000,000 | ||||||||||||||||
Reverse merger adjustment | -367,622 | 60 | 32 | 16 | 36 | 270 | 392 | -368,428 | |||||||||
Reverse merger adjustment, Shares | 595,000 | 324,671 | 156,231 | 355,000 | 2,700,000 | 3,920,700 | |||||||||||
Common stock issued for warrant exercises | 17,000 | 170 | 16,830 | ||||||||||||||
Common stock issued for warrant exercises, Shares | 1,700,000 | ||||||||||||||||
Proceeds from Series F preferred stock issued for cash | 822,750 | 110 | 822,640 | ||||||||||||||
Proceeds from Series F preferred stock issued for cash, Shares | 1,100,333 | ||||||||||||||||
Redemption of Series B-1 preferred stock, value | -350,000 | -9 | -349,991 | ||||||||||||||
Redemption of Series B-1 preferred stock | -87,500 | ||||||||||||||||
Shares issued for service -third party | -341,667 | 225 | 341,442 | ||||||||||||||
Shares issued for service - third party, Shares | 2,250,000 | ||||||||||||||||
Cashless exercise of Series E preferred stock attached warrants | 37 | -37 | |||||||||||||||
Cashless exercise of Series E preferred stock attached warrants, Shares | 372,414 | ||||||||||||||||
Derivative liability written off to APIC due to warrant exercise | 2,510,793 | 2,510,793 | |||||||||||||||
Beneficial conversion feature of Series F preferred stock | 192,558 | 192,558 | |||||||||||||||
Deemed dividend on Series F preferred stock | -192,558 | -192,558 | |||||||||||||||
Conversion of Series C preferred stock to common stock | 96 | -20 | 1,983 | -1,963 | |||||||||||||
Conversion of Series A preferred stock to common stock, Shares | -198,250 | 19,825,000 | |||||||||||||||
Conversion of Series C preferred stock to common stock | -1 | 96 | -95 | ||||||||||||||
Conversion of Series C preferred stock to common stock,Shares | -9,600 | 960,000 | |||||||||||||||
Ending balance at Dec. 31, 2014 | $1,543,507 | $40 | $32 | $7 | $35 | $3,605 | $270 | $110 | $3,708 | $3,699,108 | ($2,163,408) | ||||||
Ending balance, Shares at Dec. 31, 2014 | 396,750 | 324,671 | 68,731 | 345,400 | 36,050,000 | 2,700,000 | 1,100,333 | 37,078,114 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||
Description of Business: | ||||||||||||||||||
Drone Aviation Holding Corp. f/k/a MacroSolve, Inc. (the “Company”), through its wholly owned subsidiary Lighter Than Air Systems Corp. (LTAS), provides critical aerial and land-based surveillance and communications solutions to government and commercial customers. LTAS systems are designed and developed in-house utilizing proprietary technologies and processes that result in compact, rapidly deployable aerostat solutions and mast-based ISR systems. The LTAS systems are able to fulfill critical requirements of the military and law enforcement in the U.S. and internationally. | ||||||||||||||||||
Basis of Presentation: | ||||||||||||||||||
The accompanying financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | ||||||||||||||||||
Principal of Consolidation: | ||||||||||||||||||
Our consolidated financial statements as of December 31, 2014 include the accounts of Drone Aviation Holding Corp. and its subsidiaries: Drone Aviation Corp. and Lighter Than Air Systems Corp. As of December 31, 2013, the financial statements include only Lighter Than Air Systems Corp. as a stand-alone entity. | ||||||||||||||||||
Reclassifications: | ||||||||||||||||||
On March 28, 2013, World Surveillance Group, Inc. (WSGI) consummated a Stock Purchase Agreement as amended between WSGI, LTAS, Felicia Hess and Kevin Hess pursuant to which WSGI acquired 100% of the outstanding shares of capital stock of LTAS, which was 100 shares with a par value of $1.00, thereby making LTAS a wholly-owned subsidiary of WSGI. | ||||||||||||||||||
The following table summarizes the WSGI purchase price of LTAS which had been accounted at the fair values of the assets acquired and liabilities assumed under the acquisition method of accounting adjusted pursuant to the First Amendment to the Agreement: | ||||||||||||||||||
Amended Allocation | ||||||||||||||||||
Current assets | $ | 710,415 | ||||||||||||||||
Property and equipment | 3,913 | |||||||||||||||||
Goodwill | 807,824 | |||||||||||||||||
Due to selling shareholder | (350,000 | ) | ||||||||||||||||
Current liabilities assumed | (249,652 | ) | ||||||||||||||||
Total purchase price | $ | 922,500 | ||||||||||||||||
The net fair value adjustments in the carrying amount of the assets and liabilities of LTAS that were pushed down to LTAS as a result of the acquisition on March 28, 2013, did not have an impact on the results of LTAS’s operations for the year ended December 31, 2013. The net fair value adjustment for LTAS push down accounting was $143,126. | ||||||||||||||||||
As further described in Footnote 3, on May 5, 2014, the Company’s subsidiary, Drone Aviation Corp. (DAC), entered into a securities exchange agreement with WSGI to acquire 100% of WSGI’s interest in LTAS. Certain prior year amounts have been combined and reclassified to conform to the current year presentation. | ||||||||||||||||||
Use of Estimates: | ||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||||||
Concentration of Credit Risk: | ||||||||||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and trade receivables. The Company places its cash with high credit quality financial institutions. At times such cash may be in excess of the FDIC limit. With respect to trade receivables, the Company routinely assesses the financial strength of its customers and, as a consequence, believes that the receivable credit risk exposure is limited. | ||||||||||||||||||
Cash Equivalents: | ||||||||||||||||||
Cash equivalents are represented by operating accounts or money market accounts maintained with insured financial institutions, including all highly-liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company had no cash equivalents as of December 31, 2014 and 2013. | ||||||||||||||||||
Accounts Receivable and Credit Policies: | ||||||||||||||||||
Trade accounts receivable consist of amounts due from the sale of tethered aerostats, accessories, spare parts and delivery and installation of aerostats. Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment within 30 days of receipt of the invoice. The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts based on historical collection experience and a review of the current status of trade accounts receivable. At December 31, 2014 and 2013, the Company characterized $0 and $0 as uncollectible, respectively. | ||||||||||||||||||
Marketable Securities: | ||||||||||||||||||
All marketable securities are classified as available-for-sale securities. Available-for-sale securities are carried at fair value with resulting unrealized gains and losses, reported as a component of accumulated other comprehensive loss. The Company did not have any available-for-sale securities at December 31, 2014. | ||||||||||||||||||
Inventories | ||||||||||||||||||
Inventories are stated at the lower of cost or market, using the first-in first-out method. Cost includes materials, labor and manufacturing overhead related to the purchase and production of inventories. We regularly review inventory quantities on hand, future purchase commitments with our supplies, and the estimated utility of our inventory. If the review indicates a reduction in utility below carrying value, we reduce our inventory to a new cost basis through a charge to cost of goods sold. | ||||||||||||||||||
Property and Equipment: | ||||||||||||||||||
Property and equipment is recorded at cost when acquired. Depreciation is provided principally on the straight-line method over the estimated useful lives of the related assets, which is 3-7 years for equipment, furniture and fixtures, hardware and software. Property and equipment consists of the following at December 31, 2014 and 2013: | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Machinery and equipment | $ | 19,954 | $ | 1,100 | ||||||||||||||
Office furniture and fixtures | 14,110 | 5,461 | ||||||||||||||||
Less - accumulated depreciation | (7,040 | ) | (4,563 | ) | ||||||||||||||
$ | 27,024 | $ | 1,998 | |||||||||||||||
Expenditures for maintenance and repairs are charged to expense as incurred, whereas expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. | ||||||||||||||||||
During the year ended December 31, 2014, the Company purchased $27,863 of furniture and equipment. | ||||||||||||||||||
The Company recognized $2,477 and $2,394 of depreciation expense for the year ended December 31, 2014 and 2013, respectively, | ||||||||||||||||||
Long-Lived Assets & Goodwill: | ||||||||||||||||||
The Company accounts for long-lived assets in accordance with the provisions of ASC 360-10-35, “Impairment or Disposal of Long-lived Assets”. This Statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment charges were incurred during the periods ended December 31, 2014 and 2013. | ||||||||||||||||||
The Company accounts for goodwill and intangible assets in accordance with ASC 350 "Intangibles Goodwill and Other". ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. | ||||||||||||||||||
Derivative Financial Instruments: | ||||||||||||||||||
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a Black-Scholes option pricing model, in accordance with ASC 815-15 “Derivative and Hedging” to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. | ||||||||||||||||||
Beneficial Conversion Features: | ||||||||||||||||||
The intrinsic value of a beneficial conversion feature inherent to a convertible note payable, which is not bifurcated and accounted for separately from the convertible note payable and may not be settled in cash upon conversion, is treated as a discount to the convertible note payable. This discount is amortized over the period from the date of issuance to the date the note is due using the effective interest method. If the note payable is retired prior to the end of its contractual term, the unamortized discount is expensed in the period of retirement to interest expense. In general, the beneficial conversion feature is measured by comparing the effective conversion price, after considering the relative fair value of detachable instruments included in the financing transaction, if any, to the fair value of the common shares at the commitment date to be received upon conversion. | ||||||||||||||||||
Fair Value of Financial Instruments: | ||||||||||||||||||
The Company measures its financial assets and liabilities in accordance with the requirements of FASB ASC 820, “Fair Value Measurements and Disclosures”. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: | ||||||||||||||||||
Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities. | ||||||||||||||||||
Level 2 - Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars. | ||||||||||||||||||
Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | ||||||||||||||||||
The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as of December 31, 2014 and 2013: | ||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
31-Dec-14 | ||||||||||||||||||
Derivative liability | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Available-for-sale securities | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
31-Dec-13 | ||||||||||||||||||
Derivative liability | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Available-for-sale securities | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Revenue Recognition and Unearned Revenue: | ||||||||||||||||||
The Company recognizes revenue when all four of the following criteria are met: 1) persuasive evidence of an arrangement exists; 2) delivery has occurred and title has transferred or services have been rendered; 3) our price to the buyer is fixed or determinable; and 4) collectability is reasonably assured. We record unearned revenue as a liability and their associated costs of sales as work in process inventory. In 2014, the Company recognized $1,650 in revenue from a 2013 sale that was delivered in 2014. There is a balance of $30,170 in accounts receivable at December 31, 2014 for sales on account. | ||||||||||||||||||
Income Taxes: | ||||||||||||||||||
The Company accounts for income taxes utilizing ASC 740, “Income Taxes” (SFAS No. 109). ASC 740 requires the measurement of deferred tax assets for deductible temporary differences and operating loss carry forwards, and of deferred tax liabilities for taxable temporary differences. Measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. The effects of future changes in tax laws or rates are not included in the measurement. The Company recognizes the amount of taxes payable or refundable for the current year and recognizes deferred tax liabilities and assets for the expected future tax consequences of events and transactions that have been recognized in the Company’s financial statements or tax returns. The Company has recorded a 100% valuation allowance against net deferred tax assets due to uncertainty of their ultimate realization. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. | ||||||||||||||||||
Employee Stock-Based Compensation: | ||||||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation-Stock Compensation”. ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the grant-date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. | ||||||||||||||||||
Non-Employee Stock-Based Compensation: | ||||||||||||||||||
The Company accounts for stock-based compensation in accordance with the provision of ASC 505, “Equity Based Payments to Non-Employees” (“ASC 505”), which requires that such equity instruments are recorded at their fair value on the measurement date. The measurement of stock-based compensation is subject to periodic adjustment as the underlying equity instruments vest. | ||||||||||||||||||
Related Parties: | ||||||||||||||||||
A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. | ||||||||||||||||||
The accounts payable due to related party at December 31, 2014 and 2013, includes allocated rent and utility charges, aerostat envelopes, truck expenses and labor charges due Aerial Products Corp (“APC”) of $2,181 and $50,691, respectively. APC is a related party, controlled by a current employee of the Company. APC shares the manufacturing facilities with LTAS and provided aerostat envelopes and manufacturing labor to LTAS until June 30, 2014 when the APC labor pool transitioned to the Company. Total charges from APC to LTAS during the years ended December 31, 2014 and 2013 were $19,242 and $28,589, respectively. | ||||||||||||||||||
Due to Parent: | ||||||||||||||||||
The due to parent liability at December 31, 2013 of $206,874 consists of $96,874 in accrued salary to Felicia Hess which was converted to options in World Surveillance Group, Inc. (WSGI) and $110,000 related to a re-allocation of a portion of the original purchase price paid to Felicia Hess. The entire balance of $206,784 was written off effective May 5, 2014 when WSGI sold LTAS to the Company. | ||||||||||||||||||
Earnings or Loss per Share: | ||||||||||||||||||
The Company accounts for earnings per share pursuant to ASC 260, Earnings per Share, which requires disclosure on the financial statements of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each year. As there was a net loss for the year ended December 31, 2014, basic and diluted losses per share are the same for the year ended December 31, 2014. For the year ended December 31, 2013, after the outstanding stock was retrospectively adjusted for reverse merger, there was no outstanding common stock as of December 31, 2013, and thus basic and diluted earnings per share are not calculated. | ||||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||||
Management does not believe that any recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company's financial statements. |
Merger_between_Macrosolve_inc_
Merger between Macrosolve, inc. and Drone Aviation Holding Corp | 12 Months Ended | ||
Dec. 31, 2014 | |||
Merger between Macrosolve, inc. and Drone Aviation Holding Corp / Drone Aviation Corp Aquisition of Lighter than Air Systems [Abstract] | |||
MERGER BETWEEN MACROSOLVE, INC. AND DRONE AVIATION HOLDING CORP | 2 | MERGER BETWEEN MACROSOLVE, INC. AND DRONE AVIATION HOLDING CORP | |
On April 14, 2014, a majority of shareholders of MacroSolve, Inc. (“MacroSolve) common stock approved a plan of merger whereby MacroSolve would merge with Drone Aviation Holding Corp., its newly created wholly-owned Nevada subsidiary, for the purpose of changing the Company’s state of domicile from Oklahoma to Nevada (the “Redomestication”). Pursuant to the Redomestication, each of MacroSolve’s shareholders received one share of common stock, par value $0.0001 per share of Drone Aviation Holding Corp. for every 50.56186 shares of MacroSolve’s common stock held by them (the Merger Exchange Rate). The Redomestication was effective on April 30, 2014. All per share amounts referenced herein give effect to the Merger Exchange Rate. | |||
Prior to the Redomestication, MacroSolve had 198,219,132 shares of common stock issued and outstanding. Subsequent to the Redomestication, as a result of the Merger Exchange Ratio described above, the Company had approximately 3,920,700 shares of common stock issued and outstanding on April 30, 2014. | |||
On April 30, 2014 as a result of the Redomestication, MacroSolve’s outstanding shares of Series C, D and D-1 preferred stock were exchange for shares of the post-Redomestication Company’s shares of Series A, B and B-1 preferred stock, with 595,000 shares, 324,671 shares and 156,231 shares issued respectively. |
Corp_Aquisition_of_Lighter_tha
Corp Aquisition of Lighter than Air Systems | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Merger between Macrosolve, inc. and Drone Aviation Holding Corp / Drone Aviation Corp Aquisition of Lighter than Air Systems [Abstract] | ||||||
CORP AQUISITION OF LIGHTER THAN AIR SYSTEMS | 3 | CORP AQUISITION OF LIGHTER THAN AIR SYSTEMS | ||||
On March 31, 2014, DAC was incorporated in the state of Nevada. During April and May 2014, investors purchased 34,100,000 shares of DAC common stock for an aggregate purchase price of $653,327. On May 5, 2014, DAC entered into a securities exchange agreement with World Surveillance Group, Inc. (WSGI) to acquire 100% of WSGI’s interest in its subsidiary, Lighter Than Air Systems (LTAS). LTAS provides critical aerial and land-based surveillance and communications solutions to government and commercial customers. DAC paid $335,000 and issued 10,000,000 shares of its common stock valued at the market price on the date of issuance, and the fair value of the shares was determined to be $79,000, or a total of $414,000, to WSGI as consideration for LTAS. Since DAC acquired cash of $30,361 from LTAS, as shown in the following table, the net cash amount DAC paid is $304,639. | ||||||
In accordance with ASC 805-10 Business Combination and purchase acquisition accounting, DAC initially allocated the consideration to the net tangible and identifiable intangible assets, based on their estimated fair values as of the date of acquisition. Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. | ||||||
Property and equipment | $ | 1,638 | ||||
Accounts receivable | 135,050 | |||||
Cash in bank | 30,361 | |||||
Due from related party | 20,650 | |||||
Prepaid expenses | 1,381 | |||||
Inventory | 109,581 | |||||
Intangible asset | 135,550 | |||||
Current liabilities | (120,010 | ) | ||||
Goodwill | 99,799 | |||||
Total purchase price | $ | 414,000 | ||||
Intangible asset is in relation to the acquired customer list with a useful life of five years. The fair value of the customer list was determined by using a discounted cash flow model and $135,550 was recorded on the date of business combination. The Company recorded $31,941 of amortization expense for the year ended December 31, 2014. | ||||||
The consolidated financial statements included herein are presented for the fiscal year ended December 31, 2013 and the period from January 1, 2014 to May 5, 2014 since LTAS is considered DAC’s predecessor. LTAS has a net loss of $39,918 during the period from January 1, 2014 to May 5, 2014. |
Drone_Aviation_Holding_Corp_an
Drone Aviation Holding Corp and Drone Aviation Corp Securities Exchange, Reverse Merger and Recapitalization | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Drone Aviation Holding Corp and Drone Aviation Corp Securities Exchange, Reverse Merger and Recapitalization [Abstract] | ||||||
DRONE AVIATION HOLDING CORP. AND DRONE AVIATION CORP. SECURITIES EXCHANGE, REVERSE MERGER AND RECAPITALIZATION | 4 | DRONE AVIATION HOLDING CORP. AND DRONE AVIATION CORP. SECURITIES EXCHANGE, REVERSE MERGER AND RECAPITALIZATION | ||||
On June 3, 2014, the Company entered into a Securities Exchange Agreement with DAC. Upon closing of the transaction, the holders of 100% of DAC’s outstanding common stock transferred such 44,100,000 outstanding shares to the Company in exchange for an aggregate of 8,050,000 shares of the Company’s common stock and 36,050,000 shares of the Company’s Series D Preferred Stock, or a total of 44,100,000 shares of common stock and common stock equivalents of the Company. Pursuant to the terms of the Securities Exchange Agreement, certain shareholders of DAC who, as a result of receiving the shares of common stock would hold in excess of 3.33% of the Company’s issued and outstanding common stock on a post-closing basis, elected to receive shares of the Company’s Series D Preferred Stock. At the closing of the transaction, the Company had 3,920,700 shares of common stock outstanding, 595,000 shares of Series A Preferred Stock outstanding, 324,671 shares of Series B Preferred Stock outstanding, 156,231 shares of Series B-1 Preferred Stock outstanding and 355,000 shares of Series C Preferred Stock outstanding. | ||||||
As a result of the Securities Exchange described above, DAC and its subsidiary, LTAS, became our wholly owned subsidiaries. | ||||||
For accounting purposes, this transaction is being accounted for as a reverse merger and has been treated as a recapitalization of Drone Aviation Holding Corp. with Drone Aviation Corp. considered the accounting acquirer, and the financial statements of the accounting acquirer became the financial statements of the registrant. The 44,100,000 shares issued to shareholders of DAC and its designees in conjunction with the securities exchange transaction have been presented as outstanding for all periods. The historical consolidated financial statements include the operations of the accounting acquirer for all periods presented. | ||||||
On June 3, 2014, the assets and liabilities of Drone Aviation Holding Corp. carried onto the books were: | ||||||
Cash in bank | $ | 1,692,896 | ||||
Available-for-sale securities | 211,525 | |||||
Prepaid expenses | 37,403 | |||||
Current liabilities | (39,622 | ) | ||||
Derivative liabilities | (2,159,824 | ) | ||||
Note payable | (110,000 | ) | ||||
Total | $ | 367,622 | ||||
On March 26, 2015 Drone Aviation Corp. merged into Drone Aviation Holding Corp., leaving Lighter Than Air Systems Corp. as the only wholly owned subsidiary of the Company. | ||||||
Series E Preferred Private Placement | ||||||
On June 3, 2014, prior to the reverse merger the Company sold an aggregate of 2,700,000 units in a private placement of its securities to certain investors at a purchase price of $0.50 per unit pursuant to subscription for an aggregate purchase price of $1,350,000. Each unit consists of one share of the Company’s Series E Convertible Preferred Stock, par value $0.0001 per share, each of which is convertible into one share of Common Stock, with such rights and designations as set forth in the Certificate of Designation; and a three year warrant to purchase one share of Common Stock at an exercise price of $1.00 per share. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |
Dec. 31, 2014 | ||
Shareholders' Equity [Abstract] | ||
SHAREHOLDERS' EQUITY | 5 | SHAREHOLDERS’ EQUITY |
Following the April 30, 2014 Redomestication, the Company had approximately 3,920,700 shares of common stock issued and outstanding. On June 3, 2014, the Company entered into a Securities Exchange Agreement with DAC and issued 8,050,000 shares of common stock and 36,050,000 shares of Series D Preferred Stock to DAC’s shareholders, to exchange for the 34,100,000 shares of DAC common stock outstanding, which were originally issued for cash amount of $653,327. The Company issued a total of 25,107,414 shares of common stock in the period from June 3, 2014 to December 31, 2014, described further as follows: | ||
The Company issued 3,810,000 shares of common stock between June 3 and June 30, 2014 pursuant to conversions of 38,100 shares of Series A Preferred Stock. | ||
The Company issued 9,865,000 shares of common stock during the third quarter pursuant to conversions of 98,650 shares of Series A Preferred Stock. | ||
The Company issued 6,150,000 shares of common stock during the fourth quarter pursuant to conversions of 61,500 shares of Series A Preferred Stock. | ||
On July 1, 2014, the Company entered into a twelve-month consulting agreement for investor relations, marketing and public relations services. Pursuant to such agreement, the Company is obligated to pay the consultant for his services stock compensation of 250,000 shares of common stock immediately deliverable and an additional 250,000 shares of common stock deliverable after six months if the agreement is still in force. The 250,000 shares delivered in July were valued at $215,000. The agreement was terminated in December 2014 prior to the six month anniversary and, as a result, the Company is not obligated to deliver the remaining 250,000 shares of common stock. | ||
On July 21, 2014, the Company issued a total of 1,700,000 shares of common stock to two consulting firms which held warrants issued on May 19, 2014 for services which were exercised at a $.01 strike price or a total of $17,000. | ||
The Company issued 960,000 shares of common stock on August 25, 2014 pursuant to the conversion of 9,600 shares of Series C Preferred Stock. | ||
On August 26, 2014, the Company issued an aggregate of 372,414 shares of restricted common stock to seven investors pursuant to the exercise of 100% of the warrants associated with Series E Preferred Stock. | ||
On August 27, 2014, the Company issued 2,000,000 shares of restricted common stock with monthly vesting provisions to two members of its newly-formed Strategic Advisory Board for twelve months of service. The advisors can earn a pro rata portion of the shares, calculated based on the twelve-month vesting period, in the event the service agreements are terminated prior to the expiration date as described in the agreements. The Company recognized a total of $126,667 expense for the pro rata portion of shares earned by the two advisors during the year ended December 31, 2014. |
Preferred_Stock
Preferred Stock | 12 Months Ended | |
Dec. 31, 2014 | ||
Preferred Stock [Abstract] | ||
PREFERRED STOCK | 6 | PREFERRED STOCK |
All of the preferred stock of the Company is convertible into common stock. The Series A and Series C Preferred Stock conversion ratio is 100 to 1. The Series B, B-1, D, E and F Preferred Stock conversion ratio is 1 to 1. The conversion price of Series B stock may be adjusted if a ‘dilutive triggering event’ occurs which could happen if the Company were to sell or issue common stock, warrants or convertible securities without consideration or for a consideration per share less than the conversion price in effect immediately prior to such sale or issue (dilutive triggering price). In such case, the Series B conversion price would be reduced to a price equal to the dilutive triggering price. All preferred stock has voting rights equal to the number of shares it would have on an ‘as if converted’ basis, subject to any applicable beneficial ownership blockers governing such preferred stock. All preferred stock is entitled to dividends rights equal to the number of shares it would have on an ‘as if converted’ basis. None of the preferred stock is redeemable, participating or callable. | ||
The Company analyzed the embedded conversion option for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the conversion option should be classified as equity. | ||
The Company analyzed the conversion option for beneficial conversion features consideration under ASC 470-20 “Convertible Securities with Beneficial Conversion Features” and noted Series F Preferred Stock contained a beneficial conversion feature. See discussion below. | ||
Between June 4 and June 30, 2014, seven holders of Series A Preferred Stock converted a total of 38,100 shares of Series A Preferred Stock for 3,810,000 shares of common stock in accordance with their conversion rights which includes a blocker with respect to individual ownership percentages. | ||
Between July 1 and September 30, 2014, seven holders of Series A Preferred Stock converted a total of 98,650 shares for 9,865,000 shares of common stock in accordance with their conversion rights which includes a blocker with respect to individual ownership percentages. | ||
Between October 1 and December 31, 2014, five holders of Series A Preferred Stock converted a total of 61,500 shares for 6,150,000 shares of common stock in accordance with their conversion rights which includes a blocker with respect to individual ownership percentages. | ||
The Series B-1 Preferred Stock contains a liquidation provision whereas in the event of a fundamental transaction (such as the merger which occurred on June 3, 2014), the shareholder has the option to receive a preferential amount of cash equal to 400% of the stated value per share. On June 6, 2014, the sole holder of Series B-1 stock liquidated 87,500 shares for $350,000 leaving a remaining balance of 68,731 shares of Series B-1 preferred outstanding. | ||
Series F Preferred Private Placement | ||
On August 27, 2014, the Company sold an aggregate of 1,100,333 units in a private placement of its securities to certain investors at a purchase price of $0.75 per unit pursuant to subscription for an aggregate purchase price of $822,750, net of $2,500 financing fees. Each unit consists of one share of the Company’s Series F Convertible Preferred Stock, par value $0.0001 per share, each of which is convertible into one share of Common Stock, with such rights and designations as set forth in the Certificate of Designation. The Company evaluated the convertible preferred stock under FASB ASC 470-20-30 and determined it contained a beneficial conversion feature. The intrinsic value of the beneficial conversion feature was determined to be $192,558. The beneficial conversion feature was fully amortized and recorded as a deemed dividend. |
Options_and_Warrants
Options and Warrants | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Options and Warrants [Abstract] | ||||||||||||||||||
OPTIONS AND WARRANTS | 7 | OPTIONS AND WARRANTS | ||||||||||||||||
On April 30, 2014, the effective date of the Redomestication and effective date of the Merger Exchange Ratio, there were a total of 36,814 vested and 24,723 unvested options carried over to the reverse merger with DAC on June 3, 2014 with strike prices ranging from $1.67 to $126.40. During September 2014, the holders of these options voluntarily agreed to terminate their options. At December 31, 2014 there are no outstanding options. | ||||||||||||||||||
On April 30, 2014, the effective date of the Redomestication and effective date of the Merger Exchange Ratio, there were a total of 673,683 warrants carried over to the reverse merger with DAC on June 3, 2014 with strike prices ranging from $2.53 to $16.57. A total of 188,676 of these warrants with strike prices of $5.06 expired between July and September 2014 leaving a total of 485,007 outstanding warrants. | ||||||||||||||||||
During May 2014, the Company issued a total of 1,700,000 warrants for services. The warrants have a term of three years, and exercise price of $0.01. The 1,700,000 warrants were exercised in July 2014 for a total of $17,000. As further described above in Note 4, on June 3, 2014, the Company issued 2,700,000 warrants to purchase one share of common stock at an exercise price of $1.00 per warrant share to investors who purchased Series E Preferred Stock. The exercise price of $1.00 per warrant may be adjusted any time during the first twenty-four months from issuance under the terms of a Favored Nations Provision contained in the warrant. If at any time during that twenty-four month period the Company should issue common stock or convertible securities at a price lower than $1.00 per share, unless the warrant holder consents to such lower price issuance, then the exercise price of the warrant shall be automatically reduced to reflect such other lower price and the number of warrant securities shall be adjusted to reflect such lower price. The warrants expire on June 3, 2017. In August 2014, all seven investors holding the warrants attached to Series E Preferred Stock executed cashless exercises of their warrants resulting in the issuance of 372,414 shares of restricted common stock. | ||||||||||||||||||
Because the 2,700,000 warrants issued on June 3, 2014 have full reset adjustments tied to future issuances of equity securities by the Company, they are subject to derivative liability treatment under ASC 815-40-15 “Determining whether an Instrument (or Embedded feature) is Indexed to an Entity’s Own Stock.” ASC 815-40-15 requires as of the date the warrant is issued, the derivative liability to be measured at fair value and re-evaluated at the end of each reporting period. | ||||||||||||||||||
As of June 3, 2014, the fair value of the warrants derivative liability was $2,159,824 – see Note #4. On August 26, 2014, when the warrants were exercised, the Company determined the fair value of the derivative liability to be $2,510,793, and upon warrant exercise, the derivative liability was written off to additional paid in capital. | ||||||||||||||||||
As a result of the warrant exercises, as of December 31, 2014, the fair value of the warrants derivative liability is $0, and the Company recognized a loss on derivative liability of $350,969 for the year ended December 31, 2014. The fair value of the derivative liability was estimated at the date of grant and the date of warrant exercised using a Black-Scholes option pricing model. | ||||||||||||||||||
The following table summarizes information about outstanding warrants at December 31, 2014: | ||||||||||||||||||
Year Issued | Number | Remaining | Number | Weighted | ||||||||||||||
Outstanding | Contractual Life in Years | Currently Exercisable | Average Exercise | |||||||||||||||
Price | ||||||||||||||||||
2010 | 16,780 | 0.6 | 16,780 | $ | 6.26 | |||||||||||||
2011 | 418,780 | 2 | 418,780 | $ | 4.84 | |||||||||||||
2012 | 49,447 | 3 | 49,447 | $ | 7.58 | |||||||||||||
Total | 485,007 | 2 | 485,007 | $ | 5.17 | |||||||||||||
Inventories
Inventories | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Inventories [Abstract] | ||||||||||
INVENTORIES | 8 | INVENTORIES | ||||||||
Inventories consisted of the following: | ||||||||||
2014 | 2013 | |||||||||
Raw Materials | $ | 18,944 | $ | 12,775 | ||||||
Work in progress | 1,369 | 51,000 | ||||||||
Finished Goods | 19,091 | 11,536 | ||||||||
$ | 39,404 | $ | 75,311 |
Prepaid_Expenses
Prepaid Expenses | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Prepaid Expenses [Abstract] | ||||||||||
PREPAID EXPENSES | 9 | PREPAID EXPENSES | ||||||||
Prepaid expenses consisted of the following: | ||||||||||
2014 | 2013 | |||||||||
Prepaid insurance | $ | 23,114 | $ | 1,186 | ||||||
Prepaid services | 15,225 | 0 | ||||||||
Prepaid rent and security deposit | 11,830 | 0 | ||||||||
$ | 50,169 | $ | 1,186 | |||||||
Investment_in_Securities_Held_
Investment in Securities Held for Resale | 12 Months Ended | |
Dec. 31, 2014 | ||
Investment in Securities Held for Resale [Abstract] | ||
INVESTMENT IN SECURITIES HELD FOR RESALE | 10 | INVESTMENT IN SECURITIES HELD FOR RESALE |
The Company owned common stock in DecisionPoint Systems, Inc. (DPSI), MEDL Mobile Holdings, Inc. (MEDL) and Endexx Corporation (EDXC) as a result of certain 2012 and 2013 business transactions of MacroSolve. These securities were revalued at fair market value on June 3, 2014 as part of the reverse merger accounting. During the second quarter, the Company sold 607,284 shares of DPSI and 147,692 shares of MEDL, representing all of its holdings in those securities, with losses of $21,635 and $3,686 recorded respectively. The Company received a total of $168,704 net cash proceeds from the sales. The Company holds 125,000 shares of EDXC, but has been unable to liquidate the shares due to issues with Endexx Corporation not being a fully-reporting company. The Company has determined that the EDXC shares are impaired and has charged off the $17,500 carrying value. A total of $42,821 was recorded as loss on sale of securities for the year ended December 31, 2014. |
Oklahoma_Technology_Commercial
Oklahoma Technology Commercialization Center | 12 Months Ended | |
Dec. 31, 2014 | ||
Oklahoma Technology Commercialization Center [Abstract] | ||
OKLAHOMA TECHNOLOGY COMMERCIALIZATION CENTER | 11 | OKLAHOMA TECHNOLOGY COMMERCIALIZATION CENTER |
At the time of the April 30, 2014 Redomestication, MacroSolve had an $110,000 past-due balance on its refundable award from the State of Oklahoma Technology Business Finance Program which includes accrued interest (imputed at 14.27%) through September 2007 after which interest no longer accrued. The parties are currently discussing a release from the debt that is unrelated to the current operations. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes [Abstract] | ||||||||||
INCOME TAXES | 12 | INCOME TAXES | ||||||||
The Company uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes. | ||||||||||
During the post-reverse merger period of June 4, 2014 through December 31, 2014, the Company incurred a net loss, and, therefore, had no tax liability. Lighter Than Air Systems paid $5,571 in income taxes during 2014 for two short period returns, including the periods of March 29, 2013 through December 31, 2013 and January 1, 2014 through June 3, 2014 when it was a subsidiary of WSGI. The net deferred asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $1,463,239 for 2014 and will begin expiring in 2034. Section 382 of the Internal Revenue Code generally imposes an annual limitation on the amount of net operating loss carryforwards that may be used to offset taxable income when a corporation has undergone significant changes in its stock ownership. The $1,463,239 estimate of net operating loss carry-forward is calculated after we consider the effect of Section 382. | ||||||||||
Deferred tax assets consist of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizability. Deferred tax assets consist of the following: | ||||||||||
December 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Net operating loss carry-forwards | $ | 497,501 | $ | 0 | ||||||
Valuation allowance | (497,501 | ) | (0 | ) | ||||||
$ | -0- | $ | -0- | |||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||
Dec. 31, 2014 | |||
Commitments and Contingencies [Abstract] | |||
COMMITMENTS AND CONTINGENCIES | 13 | COMMITMENTS AND CONTINGENCIES | |
On November 17, 2014, the Company entered into a 60 month lease for 5,533 square feet of office and manufacturing space at 11651 Central Parkway Suite 118, Jacksonville Florida, with an anticipated lease commencement date of February 1, 2015. The monthly rent, including operating expenses and sales tax, for each year of the initial lease term is estimated to be $5,915. Anticipated total rent during the term of the lease is as follows: | |||
Year 1 - $ 70,985 | |||
Year 2 - $ 72,723 | |||
Year 3 - $ 74,514 | |||
Year 4 - $ 76,359 | |||
Year 5 - $ 78,259 | |||
Rent expense in 2014 and 2013 were $37,557, and $22,470, respectively, and consisted of reimbursements made to a related party which leases the Company’s current shared office and manufacturing space. | |||
As of December 31, 2014, the Company is a party in a pending motion by Newegg Inc. for recovery of defendant legal fees of approximately $400,000 from the Company in the matter of MacroSolve, Inc. v Newegg Inc. (U.S.D.C.E.D. TX) case No 6:12-cv-46-MSS-KNM. Should the company not prevail in that matter, the judgment would be borne by the former MacroSolve directors who sold their loans on April 17,2014. Other than that matter, there are no material claims, actions, suits, proceedings inquiries, labor disputes or investigations pending. |
Concentrations
Concentrations | 12 Months Ended | ||
Dec. 31, 2014 | |||
Concentrations [Abstract] | |||
CONCENTRATIONS | 14 | CONCENTRATIONS | |
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of trade receivables. The Company performs ongoing credit evaluations of its customers and generally does not require collateral related to its receivables. At December 31, 2014, accounts receivable from one customer comprised 100% of the company’s total accounts receivable-trade. Revenues from ten customers approximated 100% of total revenues for 2014. At December 31, 2013, accounts receivable from one customer comprised approximately 100% of the Company’s total accounts receivable-trade. Revenues from eight customers approximated 100% of total revenues for 2013. |
Subsequent_Event
Subsequent Event | 12 Months Ended | |
Dec. 31, 2014 | ||
Subsequent Event [Abstract] | ||
SUBSEQUENT EVENT | 15 | SUBSEQUENT EVENT |
On January 1, 2015, the Company entered into an agreement to lease executive office space for its COO in Aventura, Florida. The monthly cost is expected to be $1,437 per month on a month-to-month basis with a sixty-day notice to cancel the agreement. | ||
Between January 1 and March 26, 2015, five holders of Series A Preferred Stock converted a total of 86,300 shares for 8,630,000 shares of common stock in accordance with their conversion rights which includes a blocker with respect to individual ownership percentages. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||
Description of Business: | Description of Business: | |||||||||||||||||
Drone Aviation Holding Corp. f/k/a MacroSolve, Inc. (the “Company”), through its wholly owned subsidiary Lighter Than Air Systems Corp. (LTAS), provides critical aerial and land-based surveillance and communications solutions to government and commercial customers. LTAS systems are designed and developed in-house utilizing proprietary technologies and processes that result in compact, rapidly deployable aerostat solutions and mast-based ISR systems. The LTAS systems are able to fulfill critical requirements of the military and law enforcement in the U.S. and internationally. | ||||||||||||||||||
Basis of Presentation: | Basis of Presentation: | |||||||||||||||||
The accompanying financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | ||||||||||||||||||
Principal of Consolidation: | Principal of Consolidation: | |||||||||||||||||
Our consolidated financial statements as of December 31, 2014 include the accounts of Drone Aviation Holding Corp. and its subsidiaries: Drone Aviation Corp. and Lighter Than Air Systems Corp. As of December 31, 2013, the financial statements include only Lighter Than Air Systems Corp. as a stand-alone entity. | ||||||||||||||||||
Reclassifications: | Reclassifications: | |||||||||||||||||
On March 28, 2013, World Surveillance Group, Inc. (WSGI) consummated a Stock Purchase Agreement as amended between WSGI, LTAS, Felicia Hess and Kevin Hess pursuant to which WSGI acquired 100% of the outstanding shares of capital stock of LTAS, which was 100 shares with a par value of $1.00, thereby making LTAS a wholly-owned subsidiary of WSGI. | ||||||||||||||||||
The following table summarizes the WSGI purchase price of LTAS which had been accounted at the fair values of the assets acquired and liabilities assumed under the acquisition method of accounting adjusted pursuant to the First Amendment to the Agreement: | ||||||||||||||||||
Amended Allocation | ||||||||||||||||||
Current assets | $ | 710,415 | ||||||||||||||||
Property and equipment | 3,913 | |||||||||||||||||
Goodwill | 807,824 | |||||||||||||||||
Due to selling shareholder | (350,000 | ) | ||||||||||||||||
Current liabilities assumed | (249,652 | ) | ||||||||||||||||
Total purchase price | $ | 922,500 | ||||||||||||||||
The net fair value adjustments in the carrying amount of the assets and liabilities of LTAS that were pushed down to LTAS as a result of the acquisition on March 28, 2013, did not have an impact on the results of LTAS’s operations for the year ended December 31, 2013. The net fair value adjustment for LTAS push down accounting was $143,126. | ||||||||||||||||||
As further described in Footnote 3, on May 5, 2014, the Company’s subsidiary, Drone Aviation Corp. (DAC), entered into a securities exchange agreement with WSGI to acquire 100% of WSGI’s interest in LTAS. Certain prior year amounts have been combined and reclassified to conform to the current year presentation. | ||||||||||||||||||
Use of Estimates: | Use of Estimates: | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||||||
Concentration of Credit Risk: | Concentration of Credit Risk: | |||||||||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and trade receivables. The Company places its cash with high credit quality financial institutions. At times such cash may be in excess of the FDIC limit. With respect to trade receivables, the Company routinely assesses the financial strength of its customers and, as a consequence, believes that the receivable credit risk exposure is limited. | ||||||||||||||||||
Cash Equivalents: | Cash Equivalents: | |||||||||||||||||
Cash equivalents are represented by operating accounts or money market accounts maintained with insured financial institutions, including all highly-liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company had no cash equivalents as of December 31, 2014 and 2013. | ||||||||||||||||||
Accounts Receivable and Credit Policies: | Accounts Receivable and Credit Policies: | |||||||||||||||||
Trade accounts receivable consist of amounts due from the sale of tethered aerostats, accessories, spare parts and delivery and installation of aerostats. Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment within 30 days of receipt of the invoice. The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts based on historical collection experience and a review of the current status of trade accounts receivable. At December 31, 2014 and 2013, the Company characterized $0 and $0 as uncollectible, respectively. | ||||||||||||||||||
Marketable Securities: | Marketable Securities: | |||||||||||||||||
All marketable securities are classified as available-for-sale securities. Available-for-sale securities are carried at fair value with resulting unrealized gains and losses, reported as a component of accumulated other comprehensive loss. The Company did not have any available-for-sale securities at December 31, 2014. | ||||||||||||||||||
Inventories | Inventories | |||||||||||||||||
Inventories are stated at the lower of cost or market, using the first-in first-out method. Cost includes materials, labor and manufacturing overhead related to the purchase and production of inventories. We regularly review inventory quantities on hand, future purchase commitments with our supplies, and the estimated utility of our inventory. If the review indicates a reduction in utility below carrying value, we reduce our inventory to a new cost basis through a charge to cost of goods sold. | ||||||||||||||||||
Property and Equipment: | Property and Equipment: | |||||||||||||||||
Property and equipment is recorded at cost when acquired. Depreciation is provided principally on the straight-line method over the estimated useful lives of the related assets, which is 3-7 years for equipment, furniture and fixtures, hardware and software. Property and equipment consists of the following at December 31, 2014 and 2013: | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Machinery and equipment | $ | 19,954 | $ | 1,100 | ||||||||||||||
Office furniture and fixtures | 14,110 | 5,461 | ||||||||||||||||
Less - accumulated depreciation | (7,040 | ) | (4,563 | ) | ||||||||||||||
$ | 27,024 | $ | 1,998 | |||||||||||||||
Expenditures for maintenance and repairs are charged to expense as incurred, whereas expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. | ||||||||||||||||||
During the year ended December 31, 2014, the Company purchased $27,863 of furniture and equipment. | ||||||||||||||||||
The Company recognized $2,477 and $2,394 of depreciation expense for the year ended December 31, 2014 and 2013, respectively, | ||||||||||||||||||
Long-Lived Assets & Goodwill: | Long-Lived Assets & Goodwill: | |||||||||||||||||
The Company accounts for long-lived assets in accordance with the provisions of ASC 360-10-35, “Impairment or Disposal of Long-lived Assets”. This Statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment charges were incurred during the periods ended December 31, 2014 and 2013. | ||||||||||||||||||
The Company accounts for goodwill and intangible assets in accordance with ASC 350 "Intangibles Goodwill and Other". ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. | ||||||||||||||||||
Derivative Financial Instruments: | Derivative Financial Instruments: | |||||||||||||||||
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a Black-Scholes option pricing model, in accordance with ASC 815-15 “Derivative and Hedging” to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. | ||||||||||||||||||
Beneficial Conversion Features: | Beneficial Conversion Features: | |||||||||||||||||
The intrinsic value of a beneficial conversion feature inherent to a convertible note payable, which is not bifurcated and accounted for separately from the convertible note payable and may not be settled in cash upon conversion, is treated as a discount to the convertible note payable. This discount is amortized over the period from the date of issuance to the date the note is due using the effective interest method. If the note payable is retired prior to the end of its contractual term, the unamortized discount is expensed in the period of retirement to interest expense. In general, the beneficial conversion feature is measured by comparing the effective conversion price, after considering the relative fair value of detachable instruments included in the financing transaction, if any, to the fair value of the common shares at the commitment date to be received upon conversion. | ||||||||||||||||||
Fair Value of Financial Instruments: | Fair Value of Financial Instruments: | |||||||||||||||||
The Company measures its financial assets and liabilities in accordance with the requirements of FASB ASC 820, “Fair Value Measurements and Disclosures”. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: | ||||||||||||||||||
Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities. | ||||||||||||||||||
Level 2 - Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars. | ||||||||||||||||||
Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | ||||||||||||||||||
The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as of December 31, 2014 and 2013: | ||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
31-Dec-14 | ||||||||||||||||||
Derivative liability | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Available-for-sale securities | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
31-Dec-13 | ||||||||||||||||||
Derivative liability | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Available-for-sale securities | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Revenue Recognition and Unearned Revenue: | Revenue Recognition and Unearned Revenue: | |||||||||||||||||
The Company recognizes revenue when all four of the following criteria are met: 1) persuasive evidence of an arrangement exists; 2) delivery has occurred and title has transferred or services have been rendered; 3) our price to the buyer is fixed or determinable; and 4) collectability is reasonably assured. We record unearned revenue as a liability and their associated costs of sales as work in process inventory. In 2014, the Company recognized $1,650 in revenue from a 2013 sale that was delivered in 2014. There is a balance of $30,170 in accounts receivable at December 31, 2014 for sales on account. | ||||||||||||||||||
Income Taxes: | Income Taxes: | |||||||||||||||||
The Company accounts for income taxes utilizing ASC 740, “Income Taxes” (SFAS No. 109). ASC 740 requires the measurement of deferred tax assets for deductible temporary differences and operating loss carry forwards, and of deferred tax liabilities for taxable temporary differences. Measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. The effects of future changes in tax laws or rates are not included in the measurement. The Company recognizes the amount of taxes payable or refundable for the current year and recognizes deferred tax liabilities and assets for the expected future tax consequences of events and transactions that have been recognized in the Company’s financial statements or tax returns. The Company has recorded a 100% valuation allowance against net deferred tax assets due to uncertainty of their ultimate realization. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. | ||||||||||||||||||
Employee Stock-Based Compensation: | Employee Stock-Based Compensation: | |||||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation-Stock Compensation”. ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the grant-date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. | ||||||||||||||||||
Non-Employee Stock-Based Compensation: | Non-Employee Stock-Based Compensation: | |||||||||||||||||
The Company accounts for stock-based compensation in accordance with the provision of ASC 505, “Equity Based Payments to Non-Employees” (“ASC 505”), which requires that such equity instruments are recorded at their fair value on the measurement date. The measurement of stock-based compensation is subject to periodic adjustment as the underlying equity instruments vest. | ||||||||||||||||||
Related Parties: | Related Parties: | |||||||||||||||||
A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. | ||||||||||||||||||
The accounts payable due to related party at December 31, 2014 and 2013, includes allocated rent and utility charges, aerostat envelopes, truck expenses and labor charges due Aerial Products Corp (“APC”) of $2,181 and $50,691, respectively. APC is a related party, controlled by a current employee of the Company. APC shares the manufacturing facilities with LTAS and provided aerostat envelopes and manufacturing labor to LTAS until June 30, 2014 when the APC labor pool transitioned to the Company. Total charges from APC to LTAS during the years ended December 31, 2014 and 2013 were $19,242 and $28,589, respectively. | ||||||||||||||||||
Due to Parent: | Due to Parent: | |||||||||||||||||
The due to parent liability at December 31, 2013 of $206,874 consists of $96,874 in accrued salary to Felicia Hess which was converted to options in World Surveillance Group, Inc. (WSGI) and $110,000 related to a re-allocation of a portion of the original purchase price paid to Felicia Hess. The entire balance of $206,784 was written off effective May 5, 2014 when WSGI sold LTAS to the Company. | ||||||||||||||||||
Earnings or Loss per Share: | Earnings or Loss per Share: | |||||||||||||||||
The Company accounts for earnings per share pursuant to ASC 260, Earnings per Share, which requires disclosure on the financial statements of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each year. As there was a net loss for the year ended December 31, 2014, basic and diluted losses per share are the same for the year ended December 31, 2014. For the year ended December 31, 2013, after the outstanding stock was retrospectively adjusted for reverse merger, there was no outstanding common stock as of December 31, 2013, and thus basic and diluted earnings per share are not calculated. | ||||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |||||||||||||||||
Management does not believe that any recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company's financial statements. | ||||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||
Schedulr of fair values of the assets acquired and liabilities assumed | Amended Allocation | |||||||||||||||||
Current assets | $ | 710,415 | ||||||||||||||||
Property and equipment | 3,913 | |||||||||||||||||
Goodwill | 807,824 | |||||||||||||||||
Due to selling shareholder | (350,000 | ) | ||||||||||||||||
Current liabilities assumed | (249,652 | ) | ||||||||||||||||
Total purchase price | ||||||||||||||||||
Schedule of property and equipment | 2014 | 2013 | ||||||||||||||||
Machinery and equipment | $ | 19,954 | $ | 1,100 | ||||||||||||||
Office furniture and fixtures | 14,110 | 5,461 | ||||||||||||||||
Less - accumulated depreciation | (7,040 | ) | (4,563 | ) | ||||||||||||||
$ | 27,024 | $ | 1,998 | |||||||||||||||
Schedule of fair value, assets and liabilities | Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
31-Dec-14 | ||||||||||||||||||
Derivative liability | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Available-for-sale securities | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
31-Dec-13 | ||||||||||||||||||
Derivative liability | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Available-for-sale securities | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Corp_Aquisition_of_Lighter_tha1
Corp Aquisition of Lighter than Air Systems (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Merger between Macrosolve, inc. and Drone Aviation Holding Corp / Drone Aviation Corp Aquisition of Lighter than Air Systems [Abstract] | ||||||
DRONE AVIATION CORP AQUISITION OF LIGHTER THAN AIR SYSTEMS | Property and equipment | $ | 1,638 | |||
Accounts receivable | 135,050 | |||||
Cash in bank | 30,361 | |||||
Due from related party | 20,650 | |||||
Prepaid expenses | 1,381 | |||||
Inventory | 109,581 | |||||
Intangible asset | 135,550 | |||||
Current liabilities | (120,010 | ) | ||||
Goodwill | 99,799 | |||||
Total purchase price | $ | 414,000 |
Drone_Aviation_Holding_Corp_an1
Drone Aviation Holding Corp and Drone Aviation Corp Securities Exchange, Reverse Merger and Recapitalization (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Drone Aviation Holding Corp and Drone Aviation Corp Securities Exchange, Reverse Merger and Recapitalization [Abstract] | ||||||
Schedule of assets and liabilities of Drone Aviation Holding Corp. | Cash in bank | $ | 1,692,896 | |||
Available-for-sale securities | 211,525 | |||||
Prepaid expenses | 37,403 | |||||
Current liabilities | (39,622 | ) | ||||
Derivative liabilities | (2,159,824 | ) | ||||
Note payable | (110,000 | ) | ||||
Total | $ | 367,622 |
Options_and_Warrants_Tables
Options and Warrants (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Options and Warrants [Abstract] | ||||||||||||||||||
Summary of outstanding warrants | Year Issued | Number | Remaining | Number | Weighted | |||||||||||||
Outstanding | Contractual Life in Years | Currently Exercisable | Average Exercise | |||||||||||||||
Price | ||||||||||||||||||
2010 | 16,780 | 0.5 | 16,780 | $ | 6.26 | |||||||||||||
2011 | 418,780 | 2 | 418,780 | $ | 4.84 | |||||||||||||
2012 | 49,447 | 3 | 49,447 | $ | 7.58 | |||||||||||||
Total | 485,007 | 1.5 | 485,007 | $ | 5.17 | |||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Inventories [Abstract] | ||||||||||
Summary of inventories | 2014 | 2013 | ||||||||
Raw Materials | $ | 18,944 | $ | 12,775 | ||||||
Work in progress | 1,369 | 51,000 | ||||||||
Finished Goods | 19,091 | 11,536 | ||||||||
$ | 39,404 | $ | 75,311 | |||||||
Prepaid_Expenses_Tables
Prepaid Expenses (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Prepaid Expenses [Abstract] | ||||||||||
Schedule of prepaid expenses | 2014 | 2013 | ||||||||
Prepaid insurance | $ | 23,114 | $ | 1,186 | ||||||
Prepaid services | 15,225 | 0 | ||||||||
Prepaid rent and security deposit | 11,830 | 0 | ||||||||
$ | 50,169 | $ | 1,186 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes [Abstract] | ||||||||||
Schedule of deferred tax assets | December 31, | December 31, | ||||||||
2014 | 2013 | |||||||||
Net operating loss carry-forwards | $ | 497,501 | $ | 0 | ||||||
Valuation allowance | (497,501 | ) | (0 | ) | ||||||
$ | -0- | $ | -0- | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Commitments and Contingencies [Abstract] | |||
Schedule of operating lease | Year 1 - $ 70,985 | ||
Year 2 - $ 72,723 | |||
Year 3 - $ 74,514 | |||
Year 4 - $ 76,359 | |||
Year 5 - $ 78,259 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (Lighter Than Air Systems [Member], USD $) | Dec. 31, 2014 |
Lighter Than Air Systems [Member] | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Current assets | $710,415 |
Property and equipment | 3,913 |
Goodwill | 807,824 |
Due to selling shareholder | -350,000 |
Current liabilities assumed | -249,652 |
Total purchase price | $922,500 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Significant Accounting Policies [Abstract] | |||
Machinery and equipment | $19,954 | $1,100 | |
Office furniture and fixtures | 14,110 | 5,461 | |
Less - accumulated depreciation | -7,040 | -4,563 | [1] |
Net property and equipment | $27,024 | $1,998 | [1] |
[1] | Lighter Than Air Systems Corp. only |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Derivative liability | $0 | $0 |
Available-for-sale securities | 0 | 0 |
Level 1 [Member] | ||
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Level 2 [Member] | ||
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Level 3 [Member] | ||
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Available-for-sale securities | $0 | $0 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | 5-May-14 | Mar. 18, 2013 | ||
Property, Plant and Equipment [Line Items] | |||||
Uncollectible receivables | $0 | $0 | |||
Deferred revenue | 1,650 | [1] | |||
Accounts receivable prepayment | 30,170 | ||||
Valuation allowance against net deferred tax assets | 100.00% | ||||
Accounts receivable, payment period | 30 days | ||||
Due to parent | 206,874 | [1] | |||
Accrued salaries | 96,874 | ||||
Note Payable | 110,000 | [1] | |||
Accounts payable due to related party | 2,181 | 50,691 | [1] | ||
Total Charges | 19,242 | 28,589 | |||
Depreciation expense | 2,477 | 1,915 | [1] | ||
Purchase of furniture and equipment | 27,863 | [1] | |||
Net fair value adjustment for LTAS push down accounting | $143,126 | [1] | |||
Lighter Than Air Systems [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Outstanding shares of capital stock | 100 | ||||
Price per share | $1 | ||||
Percentage of shares acquired while acquisition | 100.00% | ||||
Office Equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 7 years | ||||
Office Equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 3 years | ||||
Furniture and Fixtures [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 7 years | ||||
Furniture and Fixtures [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 3 years | ||||
Hardware And Software [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 7 years | ||||
Hardware And Software [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 3 years | ||||
[1] | Lighter Than Air Systems Corp. only |
Merger_between_Macrosolve_inc_1
Merger between Macrosolve, inc. and Drone Aviation Holding Corp (Details) | 0 Months Ended | ||||
Apr. 14, 2014 | Dec. 31, 2014 | Jun. 03, 2014 | Apr. 30, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||||
Common stock, shares issued | 37,078,114 | 3,920,700 | 0 | ||
Common stock, shares outstanding | 37,078,114 | 34,100,000 | 3,920,700 | 0 | |
Series A Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, shares issued | 396,750 | 0 | |||
Series B Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, shares issued | 324,671 | 0 | |||
Series B-1 Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, shares issued | 68,731 | 0 | |||
Macrosolve, Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Common stock, shares issued | 198,219,132 | ||||
Common stock, shares outstanding | 198,219,132 | ||||
Description of share consolidation | Pursuant to the Redomestication, each of MacroSolve's shareholders received one share of common stock, par value $0.0001 per share of Drone Aviation Holding Corp. for every 50.56186 shares of MacroSolve's common stock |
Corp_Aquisition_of_Lighter_tha2
Corp Aquisition of Lighter than Air Systems (Details) (Lighter Than Air Systems [Member], USD $) | Dec. 31, 2014 |
Lighter Than Air Systems [Member] | |
Business Acquisition [Line Items] | |
Property and equipment | $1,638 |
Accounts receivable | 135,050 |
Cash in bank | 30,361 |
Due from related party | 20,650 |
Prepaid expenses | 1,381 |
Inventory | 109,581 |
Intangible asset | 135,550 |
Current liabilities | -120,010 |
Goodwill | 99,799 |
Total purchase price | $414,000 |
Corp_Aquisition_of_Lighter_tha3
Corp Aquisition of Lighter than Air Systems (Details Textual) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 4 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | 5-May-14 | ||
Business Acquisition [Line Items] | ||||||
Stock issued during period for investors | $653,327 | $653,327 | ||||
Stock issued during period acquisition | 79,000 | |||||
Cash paid on business combination, net | 304,639 | [1] | ||||
Amortization expense | 31,941 | [1] | ||||
Net loss | -268,396 | -2,123,490 | 30,119 | [1] | ||
Customer Lists [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets useful life | 5 years | |||||
Amortization expense | 31,941 | |||||
Amortization of discounted cash flow model | 135,550 | |||||
Lighter Than Air Systems [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of shares acquired while acquisition | 100.00% | |||||
Acquired cash from LTAS | 30,361 | |||||
Net loss | 39,918 | |||||
Common Stock [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Stock issued during period for investors, shares | 34,100,000 | |||||
Common Stock [Member] | Lighter Than Air Systems [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Stock issued during period acquisition | 335,000 | |||||
Stock issued during period acquisition, shares | 10,000,000 | |||||
Fair value of shares at the date of issuance | 79,000 | |||||
Shares issued for acquisition, total consideration transferred | $414,000 | |||||
[1] | Lighter Than Air Systems Corp. only |
Drone_Aviation_Holding_Corp_an2
Drone Aviation Holding Corp and Drone Aviation Corp Securities Exchange, Reverse Merger and Recapitalization (Details) (Drone Aviation Holding Corp [Member], USD $) | Jun. 03, 2014 |
Drone Aviation Holding Corp [Member] | |
Business Acquisition [Line Items] | |
Cash in bank | $1,692,896 |
Available-for-sale securities | 211,525 |
Prepaid expenses | 37,403 |
Current liabilities | -39,622 |
Derivative liabilities | -2,159,824 |
Note payable | -110,000 |
Total | $367,622 |
Drone_Aviation_Holding_Corp_an3
Drone Aviation Holding Corp and Drone Aviation Corp Securities Exchange, Reverse Merger and Recapitalization (Details Textual) (USD $) | 3 Months Ended | 0 Months Ended | |||
Mar. 28, 2013 | Jun. 03, 2014 | Dec. 31, 2014 | Apr. 30, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||||
Common stock, shares issued | 37,078,114 | 3,920,700 | 0 | ||
Common stock, shares outstanding | 34,100,000 | 37,078,114 | 3,920,700 | 0 | |
Securities sold to investors | ($161,675) | ||||
Series D Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, shares issued | 36,050,000 | 10,000,000 | |||
Preferred stock, shares outstanding | 36,050,000 | 10,000,000 | |||
Preferred stock, par value (in dollars per share) | 0.0001 | 0.0001 | |||
Series A Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, shares issued | 396,750 | 0 | |||
Preferred stock, shares outstanding | 396,750 | 0 | |||
Preferred stock, par value (in dollars per share) | 0.0001 | 0.0001 | |||
Series B Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, shares issued | 324,671 | 0 | |||
Preferred stock, shares outstanding | 324,671 | 0 | |||
Preferred stock, par value (in dollars per share) | 0.0001 | 0.0001 | |||
Series C Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, shares issued | 345,400 | 0 | |||
Preferred stock, shares outstanding | 345,400 | 0 | |||
Preferred stock, par value (in dollars per share) | 0.0001 | 0.0001 | |||
Series E Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, shares issued | 2,700,000 | 0 | |||
Preferred stock, shares outstanding | 2,700,000 | 0 | |||
Preferred stock, par value (in dollars per share) | 0.0001 | 0.0001 | |||
Series B-1 Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, shares issued | 68,731 | 0 | |||
Preferred stock, shares outstanding | 68,731 | 0 | |||
Preferred stock, par value (in dollars per share) | 0.0001 | 0.0001 | |||
Private Placement [Member] | |||||
Business Acquisition [Line Items] | |||||
Securities sold to investors, shares | 2,700,000 | ||||
Securities sold to investors price per share | $0.50 | ||||
Securities sold to investors | $1,350,000 | ||||
Securities sold to investors description | Each unit consists of one share of the Company's Series E Convertible Preferred Stock, par value $0.0001 per share, each of which is convertible into one share of Common Stock, with such rights and designations as set forth in the Certificate of Designation; and a three year warrant to purchase one share of Common Stock at an exercise price of $1.00 per share. | ||||
Private Placement [Member] | Series E Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, par value (in dollars per share) | $0.00 | ||||
Warrant [Member] | |||||
Business Acquisition [Line Items] | |||||
Securities sold to investors price per share | $1 | ||||
Common Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Common stock, shares outstanding | 3,920,700 | ||||
Preferred Stock [Member] | Series A Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, shares outstanding | 595,000 | ||||
Preferred Stock [Member] | Series B Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, shares outstanding | 324,671 | ||||
Preferred Stock [Member] | Series C Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, shares outstanding | 355,000 | ||||
Preferred Stock [Member] | Series B-1 Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, shares outstanding | 156,231 | ||||
Drone Aviation Corp [Member] | |||||
Business Acquisition [Line Items] | |||||
Common stock, shares issued | 44,100,000 | ||||
Common stock, shares outstanding | 44,100,000 | ||||
Percentage of excess stocks held | 3.33% | ||||
Percentage of common stock outstanding | 100.00% | ||||
Drone Aviation Corp [Member] | Series D Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Shares issued under share exchange agreement, shares | 36,050,000 | ||||
Drone Aviation Corp [Member] | Common Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Shares issued under share exchange agreement, shares | 8,050,000 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | |||||
Jul. 21, 2014 | Aug. 27, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 01, 2014 | Jun. 03, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Aug. 25, 2014 | Aug. 26, 2014 | Apr. 30, 2014 | ||
Firms | Holders | Investor | |||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||
Common stock, shares issued | 37,078,114 | 0 | 37,078,114 | 3,920,700 | |||||||||
Exercise price of warrants | $0.01 | ||||||||||||
Common stock, shares outstanding | 37,078,114 | 0 | 34,100,000 | 37,078,114 | 3,920,700 | ||||||||
Common stock issue for cash | $653,327 | [1] | |||||||||||
Shares issued to services, Shares | 1,700,000 | ||||||||||||
Shares issued for service | 17,000 | -341,667 | [1] | ||||||||||
Number of consulting firms | 2 | ||||||||||||
Shares of restricted common stock issued | 2,000,000 | ||||||||||||
Restricted common stock vesting description | Shares of restricted common stock with monthly vesting provisions to two members of its newly-formed Strategic Advisory Board for twelve months of service. The advisors can earn a pro rata portion of the shares, calculated based on the twelve-month vesting period, in the event the service agreements are terminated prior to the expiration date as described in the agreements. | ||||||||||||
Expense for the pro rata portion of shares | 126,667 | ||||||||||||
Consulting Agreement [Member] | |||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||
Shares issued to services, Shares | 250,000 | ||||||||||||
Shares issued for service | $215,000 | ||||||||||||
Additional shares issued for service | 250,000 | ||||||||||||
Drone Aviation Corp [Member] | |||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||
Common stock, shares issued | 44,100,000 | ||||||||||||
Common stock, shares outstanding | 44,100,000 | ||||||||||||
Common Stock [Member] | Drone Aviation Corp [Member] | |||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||
Common stock, shares issued | 25,107,414 | 25,107,414 | |||||||||||
Shares issued under share exchange agreement, shares | 8,050,000 | ||||||||||||
Series D Preferred Stock [Member] | Drone Aviation Corp [Member] | |||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||
Shares issued under share exchange agreement, shares | 36,050,000 | ||||||||||||
Series A Preferred Stock [Member] | |||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||
Shares of series preferred stock converted | 38,100 | 61,500 | 98,650 | ||||||||||
Number of common stock shares issued upon conversion | 6,150,000 | 3,810,000 | 6,150,000 | 9,865,000 | |||||||||
Number of investors | 5 | ||||||||||||
Series C Preferred Stock [Member] | |||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||
Shares of series preferred stock converted | 9,600 | ||||||||||||
Number of common stock shares issued upon conversion | 960,000 | ||||||||||||
Series E Preferred Stock [Member] | |||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||
Restricted common stock issued pursuant to exercise of warrants | 372,414 | ||||||||||||
Number of investors | 7 | ||||||||||||
Exercise of warrants, percentage | 100.00% | ||||||||||||
[1] | Lighter Than Air Systems Corp. only |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Aug. 27, 2014 | Jun. 03, 2014 | Jun. 06, 2014 | ||
Holders | |||||||||
Preferred Stock (Textual) | |||||||||
Proceeds from Series F preferred stock issued for cash | $822,750 | [1] | |||||||
Deemed dividend beneficial conversion feature on convertible preferred stock | 192,558 | [1] | |||||||
Series A Preferred Stock [Member] | |||||||||
Preferred Stock (Textual) | |||||||||
Shares of series preferred stock converted | 38,100 | 61,500 | 98,650 | ||||||
Number of restricted common stock shares issued upon conversion | 6,150,000 | 3,810,000 | 6,150,000 | 9,865,000 | |||||
Number Of Investors | 5 | ||||||||
Note Warrant [Member] | |||||||||
Preferred Stock (Textual) | |||||||||
Securities sold to investors price per share | $1 | ||||||||
Private Placement [Member] | |||||||||
Preferred Stock (Textual) | |||||||||
Stock conversion description | Series A and Series C Preferred Stock conversion ratio is 100 to 1. The Series B, B-1, D, E and F Preferred Stock conversion ratio is 1 to 1. | ||||||||
Securities sold to investors price per share | $0.50 | ||||||||
Series B-1 Preferred Stock [Member] | |||||||||
Preferred Stock (Textual) | |||||||||
Sole holder of Series B-1 stock liquidated, Value | 350,000 | ||||||||
Preferred stock, shares outstanding | 68,731 | 0 | 68,731 | ||||||
Preferred stock liquidation | The shareholder has the option to receive a preferential amount of cash equal to 400% of the stated value per share. | ||||||||
Sole holder of Series B-1 stock liquidated | 87,500 | ||||||||
Preferred stock, shares issued | 68,731 | 0 | 68,731 | ||||||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | 0.0001 | ||||||
Series F Preferred Stock [Member] | |||||||||
Preferred Stock (Textual) | |||||||||
Preferred stock, shares outstanding | 1,100,333 | 0 | 1,100,333 | ||||||
Preferred stock, shares issued | 1,100,333 | 0 | 1,100,333 | ||||||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | 0.0001 | ||||||
Proceeds from Series F preferred stock issued for cash | 110 | ||||||||
Series F Preferred Stock [Member] | Private Placement [Member] | |||||||||
Preferred Stock (Textual) | |||||||||
Preferred stock, shares issued | 1,100,333 | ||||||||
Securities sold to investors price per share | $0.75 | ||||||||
Preferred stock, par value (in dollars per share) | $0.00 | ||||||||
Proceeds from Series F preferred stock issued for cash | 822,750 | ||||||||
Deemed dividend beneficial conversion feature on convertible preferred stock | 192,558 | ||||||||
Financing fees | $2,500 | ||||||||
[1] | Lighter Than Air Systems Corp. only |
Options_and_Warrants_Details
Options and Warrants (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Class of Warrant or Right [Line Items] | |
Number Outstanding | 485,007 |
Remaining Contractual Life in Years | 1 year 6 months |
Number Currently Exercisable | 485,007 |
Weighted average exercise price | $5.17 |
Warrant Issued In 2010 [Member] | |
Class of Warrant or Right [Line Items] | |
Number Outstanding | 16,780 |
Remaining Contractual Life in Years | 6 months |
Number Currently Exercisable | 16,780 |
Weighted average exercise price | $6.26 |
Warrant Issued In 2011 [Member] | |
Class of Warrant or Right [Line Items] | |
Number Outstanding | 418,780 |
Remaining Contractual Life in Years | 2 years |
Number Currently Exercisable | 418,780 |
Weighted average exercise price | $4.84 |
Warrant Issued In 2012 [Member] | |
Class of Warrant or Right [Line Items] | |
Number Outstanding | 49,447 |
Remaining Contractual Life in Years | 3 years |
Number Currently Exercisable | 49,447 |
Weighted average exercise price | $7.58 |
Options_and_Warrants_Details_T
Options and Warrants (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||
Jul. 21, 2014 | Aug. 27, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 26, 2014 | Apr. 30, 2014 | 31-May-14 | Jun. 03, 2014 | ||
Investor | |||||||||
Options And Warrants [Line Items] | |||||||||
Total warrants carried over reverse merger | 485,007 | ||||||||
Exercise price of warrants | $0.01 | ||||||||
Loss on derivative liability | $350,969 | [1] | |||||||
Derivative liabilities | 0 | 0 | |||||||
Number of shares of restricted common stock granted | 2,000,000 | ||||||||
Warrants issued for services, shares | 1,700,000 | ||||||||
Warrants issued for services, value | 17,000 | -341,667 | [1] | ||||||
Derivative liability written off to APIC due to warrant exercise | 2,510,793 | [1] | |||||||
Drone Aviation Corp [Member] | |||||||||
Options And Warrants [Line Items] | |||||||||
Fair value of warrants derivative liability | 2,159,824 | ||||||||
Series E Preferred Stock [Member] | |||||||||
Options And Warrants [Line Items] | |||||||||
Number of shares of restricted common stock granted | 372,414 | ||||||||
Number of investors | 7 | ||||||||
Options [Member] | |||||||||
Options And Warrants [Line Items] | |||||||||
Vested options | 36,814 | ||||||||
Unvested options | 24,723 | ||||||||
Warrant [Member] | |||||||||
Options And Warrants [Line Items] | |||||||||
Strike prices | 5.06 | ||||||||
Total warrants carried over reverse merger | 673,683 | ||||||||
Warrants, Term | 3 years | ||||||||
Exercise price of warrants | $0.01 | ||||||||
Warrants expiration date | 3-Jun-17 | ||||||||
Number of warrants expired | 188,676 | ||||||||
Warrants issued for services, shares | 1,700,000 | ||||||||
Warrants issued for services, value | 17,000 | ||||||||
Derivative liability written off to APIC due to warrant exercise | 2,510,793 | ||||||||
Warrant [Member] | Series E Preferred Stock [Member] | |||||||||
Options And Warrants [Line Items] | |||||||||
Exercise price of warrants | $1 | ||||||||
Warrants issued to purchase common stock | 2,700,000 | ||||||||
Maximum [Member] | Options [Member] | |||||||||
Options And Warrants [Line Items] | |||||||||
Strike prices | 126.4 | ||||||||
Maximum [Member] | Warrant [Member] | |||||||||
Options And Warrants [Line Items] | |||||||||
Strike prices | 16.57 | ||||||||
Minimum [Member] | Options [Member] | |||||||||
Options And Warrants [Line Items] | |||||||||
Strike prices | 1.67 | ||||||||
Minimum [Member] | Warrant [Member] | |||||||||
Options And Warrants [Line Items] | |||||||||
Strike prices | 2.53 | ||||||||
[1] | Lighter Than Air Systems Corp. only |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventories [Abstract] | |||
Raw Materials | $18,944 | $12,775 | |
Work in progress | 1,369 | 51,000 | |
Finished Goods | 19,091 | 11,536 | |
Inventory, Net | $39,404 | $75,311 | [1] |
[1] | Lighter Than Air Systems Corp. only |
Prepaid_Expenses_Details
Prepaid Expenses (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
Prepaid Expenses [Abstract] | |||
Prepaid insurance | $23,114 | $1,186 | |
Prepaid services | 15,225 | 0 | |
Prepaid rent and security deposit | 11,830 | 0 | |
Prepaid expenses, Net | $50,169 | $1,186 | [1] |
[1] | Lighter Than Air Systems Corp. only |
Investment_in_Securities_Held_1
Investment in Securities Held for Resale (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | ||
Investment [Line Items] | |||
Loss on disposal and impairment of available-for-sale securities | $42,821 | [1] | |
Net cash proceeds | 168,704 | [1] | |
Decision Point Systems [Member] | |||
Investment [Line Items] | |||
Investment owned, shares sold | 607,284 | ||
Loss on disposal and impairment of available-for-sale securities | 21,635 | ||
Medl Mobile Holdings Inc [Member] | |||
Investment [Line Items] | |||
Investment owned, shares sold | 147,692 | ||
Loss on disposal and impairment of available-for-sale securities | 3,686 | ||
Endexx Corporation [Member] | |||
Investment [Line Items] | |||
Impairment charge on sale of shares | $17,500 | ||
Number of shares, contingently issuable | 125,000 | ||
[1] | Lighter Than Air Systems Corp. only |
Oklahoma_Technology_Commercial1
Oklahoma Technology Commercialization Center (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Apr. 30, 2014 | |
Oklahoma Technology Commercialization Center [Abstract] | ||
Refundable award | $110,000 | |
Accrued interest, perecentage | 14.27% | |
Period of imputed accrued interest | Through September 2007 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Abstract] | ||
Net operating loss carry-forwards | $497,501 | $0 |
Valuation allowance | -497,501 | 0 |
Deferred tax assets, Net | $0 | $0 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Taxes [Abstract] | |||
Net operating loss carryforwards | $1,463,239 | ||
Net operating loss carryforwards, Expiration date | 31-Dec-34 | ||
Income taxes | $5,571 | [1] | |
[1] | Lighter Than Air Systems Corp. only |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2014 |
Commitments and Contingencies [Abstract] | |
Year 1 | $70,985 |
Year 2 | 72,723 |
Year 3 | 74,514 |
Year 4 | 76,359 |
Year 5 | $78,259 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
squareFeet | ||
Commitments and Contingencies [Abstract] | ||
Rent expense | $37,557 | $22,470 |
Term of lease | 60 months | |
Area of office and manufacturing space | 5,533 | |
Recovery of defendant legal fees | 400,000 | |
Operating expenses and sales tax | $5,915 |
Concentrations_Details
Concentrations (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Customers | Customers | |
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Number of customers | 1 | 1 |
Percentage of concentrations of credit risk | 100.00% | 100.00% |
Revenues [Member] | ||
Concentration Risk [Line Items] | ||
Number of customers | 4 | 8 |
Percentage of concentrations of credit risk | 92.00% | 100.00% |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event [Member], USD $) | 0 Months Ended | |
Mar. 26, 2015 | Jan. 01, 2015 | |
Holders | ||
Subsequent Event [Line Items] | ||
Number of investors | 5 | |
Cost of leasing agreement | $1,437 | |
Lease agreement, Description | A month-to-month basis with a sixty-day notice to cancel the agreement. | |
Common Stock [Member] | ||
Subsequent Event [Line Items] | ||
Shares of series preferred stock converted | 8,630,000 | |
Series A Preferred Stock [Member] | Common Stock [Member] | ||
Subsequent Event [Line Items] | ||
Shares of series preferred stock converted | 86,000 |