Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 04, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | DRONE AVIATION HOLDING CORP. | ||
Entity Central Index Key | 1,178,727 | ||
Trading Symbol | drne | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
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 | $ 18,981.074 | ||
Entity Common Stock, Shares Outstanding | 5,461,553 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash | $ 2,659,734 | $ 1,369,896 |
Accounts receivable - trade | 83,288 | 30,170 |
Inventory | 118,795 | 39,404 |
Prepaid expenses and deposits | 55,624 | 50,169 |
Total current assets | 2,917,441 | 1,489,639 |
PROPERTY AND EQUIPMENT, at cost: | 163,291 | 34,064 |
Less - accumulated depreciation | (26,995) | (7,040) |
Net property and equipment | 136,296 | 27,024 |
OTHER ASSETS: | ||
Goodwill | 99,799 | 99,799 |
Intangible assets, net | 1,460,000 | 103,609 |
Total other assets | 1,559,799 | 203,408 |
TOTAL ASSETS | 4,613,536 | 1,720,071 |
CURRENT LIABILITIES: | ||
Accounts payable - trade and accrued liabilities | 242,257 | 64,383 |
Accounts payable due to related party | 6,000 | $ 2,181 |
Deferred revenue | 7,896 | |
Note Payable - Oklahoma Technology Commercialization Center- Current | 110,000 | $ 110,000 |
Total current liabilities | 366,153 | 176,564 |
TOTAL LIABILITIES | $ 366,153 | $ 176,564 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Common stock, $.0001 par value; authorized 300,000,000 shares; 5,125,585 and 926,953 shares issued and outstanding, at December 31, 2015 and December 31, 2014, respectively | $ 513 | $ 93 |
Additional paid-in capital | 15,385,523 | 3,702,233 |
Retained Earnings (Deficit) | (11,139,270) | (2,163,408) |
Total stockholders' equity | 4,247,383 | 1,543,507 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 4,613,536 | 1,720,071 |
Preferred stock, Series A | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock value | $ 10 | 40 |
Total stockholders' equity | 40 | |
Preferred stock, Series B | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock value | 32 | |
Total stockholders' equity | 32 | |
Preferred stock, Series B-1 | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock value | 7 | |
Preferred stock, Series C | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock value | $ 7 | 35 |
Total stockholders' equity | 35 | |
Preferred stock, Series D | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock value | $ 200 | 3,605 |
Total stockholders' equity | 3,605 | |
Preferred stock, Series E | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock value | 540 | |
Total stockholders' equity | 270 | |
Preferred stock, Series F | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock value | $ 200 | 330 |
Total stockholders' equity | $ 330 | |
Preferred stock, Series G | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock value | $ 200 | |
Total stockholders' equity |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 5,125,585 | 926,953 |
Common stock, shares outstanding | 5,125,585 | 926,953 |
Preferred stock, Series A | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 595,000 | 595,000 |
Preferred stock, shares issued | 101,100 | 396,750 |
Preferred stock, shares outstanding | 101,100 | 396,750 |
Preferred stock, Series B | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 324,671 | 324,671 |
Preferred stock, shares issued | 0 | 324,671 |
Preferred stock, shares outstanding | 0 | 324,671 |
Preferred stock, Series B-1 | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 156,231 | 156,231 |
Preferred stock, shares issued | 0 | 68,731 |
Preferred stock, shares outstanding | 0 | 68,731 |
Preferred stock, Series C | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 355,000 | 355,000 |
Preferred stock, shares issued | 73,387 | 345,400 |
Preferred stock, shares outstanding | 73,387 | 345,400 |
Preferred stock, Series D | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 36,050,000 | 36,050,000 |
Preferred stock, shares issued | 2,000,000 | 36,050,000 |
Preferred stock, shares outstanding | 2,000,000 | 36,050,000 |
Preferred stock, Series E | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 5,400,000 | 5,400,000 |
Preferred stock, shares issued | 0 | 5,400,000 |
Preferred stock, shares outstanding | 0 | 5,400,000 |
Preferred stock, Series F | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 3,300,999 | 3,300,999 |
Preferred stock, shares issued | 1,999,998 | 3,300,999 |
Preferred stock, shares outstanding | 1,999,998 | 3,300,999 |
Preferred stock, Series G | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 8,000,000 | 8,000,000 |
Preferred stock, shares issued | 2,000,000 | 0 |
Preferred stock, shares outstanding | 2,000,000 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||
Revenues | $ 472,159 | $ 858,054 |
Cost of good sold | 282,753 | 675,253 |
Gross profit | 189,406 | 182,801 |
General and administrative expense | 9,163,556 | 1,904,793 |
Loss from operations | $ (8,974,150) | (1,721,992) |
Other income (expense) | ||
Loss on sale and impairment of securities held for resale | (42,821) | |
Loss on derivative liability | (350,969) | |
Income tax expense | (5,571) | |
Interest income | $ 192 | 235 |
Interest expense | (1,904) | (2,372) |
Total other expense | (1,712) | (401,498) |
NET LOSS | (8,975,862) | $ (2,123,490) |
Deemed dividend on Series G convertible preferred stock | $ 80,000 | |
Deemed dividend on Series F convertible preferred stock | $ 192,558 | |
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (9,055,862) | $ (2,316,048) |
Weighted average number of common shares outstanding - basic and diluted | 2,034,421 | 394,683 |
Basic and diluted net loss per share | $ (4.45) | $ (5.87) |
Consolidated Statements of Stoc
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] | Series G Preferred Stock [Member] | Common Stock [Member] | Paid-in Capital [Member] | Accumulated Deficit [Member] |
Beginning balance (Predecessor [Member]) at Dec. 31, 2013 | ||||||||||||
Beginning balance at Dec. 31, 2013 | ||||||||||||
Beginning balance, Shares (Predecessor [Member]) at Dec. 31, 2013 | ||||||||||||
Beginning balance, Shares at Dec. 31, 2013 | ||||||||||||
Net Loss | Predecessor [Member] | $ (2,123,490) | |||||||||||
Net Loss | $ (2,123,490) | |||||||||||
Net loss from LTAS from 1/1/14 to 5/5/14 | Predecessor [Member] | (39,918) | |||||||||||
Net loss from LTAS from 1/1/14 to 5/5/14 | (39,918) | |||||||||||
Common stock of Drone Aviation Corp issued for cash | Predecessor [Member] | $ 20 | $ 650,702 | ||||||||||
Common stock of Drone Aviation Corp issued for cash | 653,327 | $ 2,605 | ||||||||||
Common stock of Drone Aviation Corp issued for cash, Shares | Predecessor [Member] | 201,250 | |||||||||||
Common stock of Drone Aviation Corp issued for cash, Shares | 26,050,000 | |||||||||||
Drone Aviation Corp stock issued to LTAS upon business combination | Predecessor [Member] | $ 78,000 | |||||||||||
Drone Aviation Corp stock issued to LTAS upon business combination | 79,000 | $ 1,000 | ||||||||||
Drone Aviation Corp stock issued to LTAS upon business combination, Shares | Predecessor [Member] | ||||||||||||
Drone Aviation Corp stock issued to LTAS upon business combination, Shares | 10,000,000 | |||||||||||
Reverse merger adjustment | Predecessor [Member] | $ 10 | $ (368,316) | ||||||||||
Reverse merger adjustment | (367,622) | $ 60 | $ 32 | $ 16 | $ 36 | $ 540 | ||||||
Common stock issued due to reverse split rounding | Predecessor [Member] | 98,018 | |||||||||||
Common stock issued due to reverse split rounding | 595,000 | 324,671 | 156,231 | 355,000 | 5,400,000 | |||||||
Common stock issued for warrant exercises | Predecessor [Member] | $ 4 | 16,996 | ||||||||||
Common stock issued for warrant exercises | 17,000 | |||||||||||
Common stock issued for warrant exercises, Shares | Predecessor [Member] | 42,500 | |||||||||||
Proceeds from Series F preferred stock issued for cash | Predecessor [Member] | 822,420 | |||||||||||
Proceeds from Series F preferred stock issued for cash | 822,750 | $ 330 | ||||||||||
Proceeds from Series F preferred stock issued for cash, Shares | Predecessor [Member] | ||||||||||||
Proceeds from Series F preferred stock issued for cash, Shares | 3,300,999 | |||||||||||
Redemption of Series B-1 preferred stock | Predecessor [Member] | (349,991) | |||||||||||
Redemption of Series B-1 preferred stock | (350,000) | $ (9) | ||||||||||
Redemption of Series B-1 preferred stock, shares | Predecessor [Member] | ||||||||||||
Redemption of Series B-1 preferred stock, shares | (87,500) | |||||||||||
Shares issued for service - third party | Predecessor [Member] | $ 6 | 341,661 | ||||||||||
Shares issued for service - third party | $ 341,667 | |||||||||||
Shares issued for service - third party, Shares | Predecessor [Member] | 56,250 | |||||||||||
Shares issued for service - third party, Shares | ||||||||||||
Cashless exercise of Series E preferred stock attached warrants | Predecessor [Member] | $ 1 | (1) | ||||||||||
Cashless exercise of Series E preferred stock attached warrants | ||||||||||||
Cashless exercise of Series E preferred stock attached warrants, Shares | Predecessor [Member] | 9,310 | |||||||||||
Cashless exercise of Series E preferred stock attached warrants, Shares | ||||||||||||
Derivative liability written off to APIC due to warrant exercise | Predecessor [Member] | 2,510,793 | |||||||||||
Derivative liability written off to APIC due to warrant exercise | $ 2,510,793 | |||||||||||
Derivative liability written off to APIC due to warrant exercise, Shares | Predecessor [Member] | ||||||||||||
Derivative liability written off to APIC due to warrant exercise, Shares | ||||||||||||
Beneficial conversion feature of Series F preferred stock | Predecessor [Member] | 192,558 | |||||||||||
Beneficial conversion feature of Series F preferred stock | 192,558 | |||||||||||
Deemed dividend on Series F preferred stock | Predecessor [Member] | (192,558) | |||||||||||
Deemed dividend on Series F preferred stock | $ (192,558) | |||||||||||
Conversion of Series A preferred stock to common stock | Predecessor [Member] | $ 50 | (30) | ||||||||||
Conversion of Series A preferred stock to common stock | $ (20) | |||||||||||
Conversion of Series A preferred stock to common stock, Shares | Predecessor [Member] | 495,625 | |||||||||||
Conversion of Series A preferred stock to common stock, Shares | (198,250) | |||||||||||
Conversion of Series C preferred stock to common stock | Predecessor [Member] | $ 2 | (1) | ||||||||||
Conversion of Series C preferred stock to common stock | $ (1) | |||||||||||
Conversion of Series C preferred stock to common stock,Shares | Predecessor [Member] | 24,000 | |||||||||||
Conversion of Series C preferred stock to common stock,Shares | (9,600) | |||||||||||
Proceeds from Series G preferred stock issued for cash | ||||||||||||
Ending balance (Predecessor [Member]) at Dec. 31, 2014 | $ 40 | $ 32 | $ 7 | $ 35 | $ 3,605 | $ 540 | $ 330 | $ 93 | 3,702,233 | $ (2,163,408) | ||
Ending balance at Dec. 31, 2014 | $ 1,543,507 | $ 40 | $ 32 | $ 35 | $ 3,605 | $ 270 | $ 330 | $ 3,708 | ||||
Ending balance, Shares (Predecessor [Member]) at Dec. 31, 2014 | 396,750 | 324,671 | 68,731 | 345,400 | 36,050,000 | 5,400,000 | 3,300,999 | 926,953 | ||||
Ending balance, Shares at Dec. 31, 2014 | 68,731 | 396,750 | 324,671 | 345,400 | 36,050,000 | 2,700,000 | 3,300,999 | 37,078,114 | ||||
Net Loss | Predecessor [Member] | (8,975,862) | |||||||||||
Net Loss | $ (8,975,862) | |||||||||||
Shares issued for service - third party | Predecessor [Member] | $ 25 | (25) | ||||||||||
Shares issued for service - third party, Shares | Predecessor [Member] | 252,525 | |||||||||||
Conversion of Series A preferred stock to common stock | Predecessor [Member] | $ 74 | (44) | ||||||||||
Conversion of Series A preferred stock to common stock | $ (30) | |||||||||||
Conversion of Series A preferred stock to common stock, Shares | Predecessor [Member] | 739,125 | |||||||||||
Conversion of Series A preferred stock to common stock, Shares | (295,650) | |||||||||||
Conversion of Series C preferred stock to common stock | Predecessor [Member] | $ 68 | (40) | ||||||||||
Conversion of Series C preferred stock to common stock | $ (28) | |||||||||||
Conversion of Series C preferred stock to common stock,Shares | Predecessor [Member] | 680,033 | |||||||||||
Conversion of Series C preferred stock to common stock,Shares | (272,013) | |||||||||||
Conversion of Series B preferred stock to common stock | Predecessor [Member] | 31 | |||||||||||
Conversion of Series B preferred stock to common stock | $ (32) | $ 1 | ||||||||||
Conversion of Series B preferred stock to common stock, Shares | (324,671) | 8,117 | ||||||||||
Conversion of Series B1 preferred stock to common stock | Predecessor [Member] | $ 5 | 2 | ||||||||||
Conversion of Series B1 preferred stock to common stock | $ (7) | |||||||||||
Conversion of Series B1 preferred stock to common stock, Shares | Predecessor [Member] | 55,000 | |||||||||||
Conversion of Series B1 preferred stock to common stock, Shares | (68,731) | |||||||||||
Conversion of Series D preferred stock to common stock | Predecessor [Member] | $ 85 | 3,320 | ||||||||||
Conversion of Series D preferred stock to common stock | $ (3,405) | |||||||||||
Conversion of Series D preferred stock to common stock, Shares | Predecessor [Member] | 851,250 | |||||||||||
Conversion of Series D preferred stock to common stock, Shares | (34,050,000) | |||||||||||
Conversion of Series E preferred stock to common stock | Predecessor [Member] | $ 14 | 526 | ||||||||||
Conversion of Series E preferred stock to common stock | $ (540) | |||||||||||
Conversion of Series E preferred stock to common stock, Shares | Predecessor [Member] | 135,000 | |||||||||||
Conversion of Series E preferred stock to common stock, Shares | (5,400,000) | |||||||||||
Conversion of Series F preferred stock to common stock | Predecessor [Member] | $ 3 | 127 | ||||||||||
Conversion of Series F preferred stock to common stock | $ (130) | |||||||||||
Conversion of Series F preferred stock to common stock, Shares | Predecessor [Member] | 32,525 | |||||||||||
Conversion of Series F preferred stock to common stock, Shares | (1,301,001) | |||||||||||
Conversion of Series G preferred stock to common stock | Predecessor [Member] | $ 5 | 195 | ||||||||||
Conversion of Series G preferred stock to common stock | $ (200) | |||||||||||
Conversion of Series G preferred stock to common stock, Shares | Predecessor [Member] | 50,000 | |||||||||||
Conversion of Series G preferred stock to common stock, Shares | (2,000,000) | |||||||||||
Proceeds from Series G preferred stock issued for cash | Predecessor [Member] | 999,600 | |||||||||||
Proceeds from Series G preferred stock issued for cash | $ 1,000,000 | $ 400 | ||||||||||
Proceeds from Series G preferred stock issued for cash, Shares | 4,000,000 | |||||||||||
Beneficial conversion feature on preferred stock Series G | Predecessor [Member] | 80,000 | |||||||||||
Beneficial conversion feature on preferred stock Series G | 80,000 | |||||||||||
Deemed dividend on Series G preferred stock | Predecessor [Member] | (80,000) | |||||||||||
Deemed dividend on Series G preferred stock | (80,000) | |||||||||||
Proceeds from common stock issued for cash, Value | Predecessor [Member] | $ 75 | 3,484,675 | ||||||||||
Proceeds from common stock issued for cash, Value | $ 3,484,750 | |||||||||||
Proceeds from common stock issued for cash, Shares | Predecessor [Member] | 745,000 | |||||||||||
Common stock issued to Series E, F and G holders, Value | Predecessor [Member] | $ 25 | (25) | ||||||||||
Common stock issued to Series E, F and G holders, Value | ||||||||||||
Common stock issued to Series E, F and G holders, Shares | Predecessor [Member] | 252,525 | |||||||||||
Stock Based Compensation - ASC 505 Adj for 2014 share issuance | Predecessor [Member] | 213,333 | |||||||||||
Stock Based Compensation - ASC 505 Adj for 2014 share issuance | $ 213,333 | |||||||||||
Stock Based Compensation - Shares Issuance to Employee | Predecessor [Member] | $ 50 | 2,575,210 | ||||||||||
Stock Based Compensation - Shares Issuance to Employee | 2,575,260 | |||||||||||
Stock Based Compensation - Shares Issuance to Employee, Shares | Predecessor [Member] | 500,000 | |||||||||||
Stock Based Compensation - options and warrants | Predecessor [Member] | 3,146,395 | |||||||||||
Stock Based Compensation - options and warrants | 3,146,395 | |||||||||||
Common stock issued for asset acquisition | Predecessor [Member] | $ 15 | 1,259,985 | ||||||||||
Common stock issued for asset acquisition | 1,260,000 | |||||||||||
Common stock issued for asset acquisition, Shares | Predecessor [Member] | 150,000 | |||||||||||
Ending balance (Predecessor [Member]) at Dec. 31, 2015 | $ 40 | $ 35 | $ 3,605 | $ 330 | $ 200 | $ 513 | $ 15,385,523 | $ (11,139,270) | ||||
Ending balance at Dec. 31, 2015 | $ 4,247,383 | |||||||||||
Ending balance, Shares (Predecessor [Member]) at Dec. 31, 2015 | 396,750 | 345,400 | 36,050,000 | 3,300,999 | 2,000,000 | 5,125,585 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (8,975,862) | $ (2,123,490) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Loss on disposal and impairment of available-for-sale securities | 42,821 | |
Loss on derivative liability | $ 350,969 | |
Allowance for inventory obsolescence | $ 18,589 | |
Depreciation | 19,955 | $ 2,477 |
Amortization | 37,935 | 31,941 |
Impairment of intangible assets | 65,674 | |
Stock based compensation | 5,934,988 | 341,667 |
Changes in current assets and liabilities: | ||
Accounts receivable | (53,118) | 104,880 |
Inventory | (97,980) | 70,177 |
Prepaid expenses and other current assets | (5,455) | (11,385) |
Accounts payable and accrued expense | 177,874 | (132,363) |
Due from related party | 3,819 | $ 20,027 |
Deferred revenue | 7,896 | |
Net cash used in operating activities | $ (2,865,685) | $ (1,302,279) |
INVESTING ACTIVITIES: | ||
Cash paid on business combination, net | (304,639) | |
Cash from reverse merger | 1,692,896 | |
Cash from sales of available-for-sale securities | $ 168,704 | |
Cash paid on intangible asset acquisition | $ (200,000) | |
Cash paid on furniture and equipment | (129,227) | $ (27,863) |
Net cash (used in) provided by investing activities | (329,227) | 1,529,098 |
FINANCING ACTIVITIES: | ||
Proceeds from common stock issued for cash | 3,484,750 | $ 653,327 |
Proceeds from Series G preferred stock issued for cash | $ 1,000,000 | |
Proceeds from warrant exercises | $ 17,000 | |
Proceeds from Series F preferred stock issued for cash | 822,750 | |
Redemption of Series B-1 preferred stock | (350,000) | |
Net cash provided by financing activities | $ 4,484,750 | 1,143,077 |
NET (DECREASE) INCREASE IN CASH | 1,289,838 | $ 1,369,896 |
CASH, beginning of period | 1,369,896 | |
CASH, end of period | 2,659,734 | $ 1,369,896 |
Cash paid during the years ended December 31: | ||
Interest | 1,904 | 2,371 |
Income taxes | 159 | $ 5,571 |
Noncash investing and financing activities for the years ended December 31: | ||
Common stock issued for asset acquisition | 1,260,000 | |
Conversion of Series A preferred stock to common stock | 74 | $ 50 |
Conversion of Series B preferred stock to common stock | 1 | |
Conversion of Series B-1 preferred stock to common stock | 5 | |
Conversion of Series C preferred stock to common stock | 68 | $ 2 |
Conversion of Series D preferred stock to common stock | 85 | |
Conversion of Series E preferred stock to common stock | 14 | |
Conversion of Series F preferred stock to common stock | 3 | |
Conversion of Series G preferred stock to common stock | 5 | |
Common stock issued to Series E, F and G holders | $ 25 | |
Cashless exercise of Series E preferred stock attached warrants | $ 1 | |
Derivative liability written off to APIC due to warrant exercise | 2,510,793 | |
Reverse merger adjustment | (2,060,518) | |
Deemed dividend beneficial conversion feature on convertible preferred stock | $ 80,000 | 192,558 |
Business combination adjustment | $ 79,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business: Drone Aviation Holding Corp. (“Drone” or “Company”) develops and manufactures cost-effective, compact and rapidly deployable aerial platforms including lighter-than-air aerostats and electric-powered drones designed to provide government and commercial customers with enhanced surveillance and communication capabilities. Utilizing a proprietary tether system, the Company's products are designed to provide prolonged operational duration capabilities combined with improved reliability, uniquely fulfilling critical requirements in military, law enforcement and commercial and industrial applications. 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, 2015 include the accounts of Drone Aviation Holding Corp. and its subsidiaries: Drone AFS Corp. and Lighter Than Air Systems Corp. 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. Reclassifications: 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, 2015 and 2014. 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, 2015 and 2014, 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, 2015. 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, 2015 and 2014: 2015 2014 Shop Machinery and equipment $ 80,889 $ 19,954 Computers and electronics 28,911 12,075 Office furniture and fixtures 33,977 2,035 Leasehold improvements 19,514 - 163,291 34,064 Less - accumulated depreciation (26,995 ) (7,040 ) $ 136,296 $ 27,024 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, 2015 and 2014, the Company purchased $129,227 and $27,863 of furniture and equipment, respectively. The Company recognized $19,955 and $2,477 of depreciation expense for the year ended December 31, 2015 and 2014, 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. The Company acquired the LTAS customer list in 2014. 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 leaving a remaining carrying amount of $103,609. The Company recorded another $37,935 amortization expense for the year ended December 31, 2015. After comparing the acquired customer list to the actual customers who placed orders following the acquisition of LTAS, the Company determined that the customer list was impaired at December 31, 2015 and amortized the remaining balance of $65,674 in 2015. 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. The Company performed impairment analysis using the qualitative analysis under ASC 350-20 and noted no impairment issues for 2015. 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 Company evaluates the embedded conversion feature within its convertible debt instruments under ASC 815-15 and ASC 815-40 to determine if the conversion feature meets the definition of a liability and therefore need to bifurcate the conversion feature and account for it as a separate derivative liability. 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. 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 2015, the Company deferred recognizing $7,896 in revenue from a 2015 sale that was delivered in January 2016. There is a balance of $83,288 in accounts receivable at December 31, 2015 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, 2015 was comprised of $6,000 director fees which were paid in January 2016. The accounts payable due to related party at December 31, 2014, includes allocated rent and utility charges, aerostat envelopes, truck expenses and labor charges due Aerial Products Corp (“APC”) was $2,181. APC is a related party, controlled by a current employee of the Company. APC shared 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, 2015 and 2014 were $7,549 and $19,242 respectively. Additionally, the Company purchased used fixed assets from APC for $6,500 during the year ended December 31, 2015. 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 years ended December 31, 2015 and 2014, basic and diluted losses per share are the same for both years. 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, 2015 | |
Merger between Macrosolve, inc. and Drone Aviation Holding Corp / Drone Aviation Corp Aquisition of Lighter than Air Systems / Drone Aviation Holding Corp Asset Acquisition of Adaptive, Flight, Inc. [Abstract] | |
MERGER BETWEEN MACROSOLVE, INC. AND DRONE AVIATION HOLDING CORP | 2. MERGER BETWEEN MACROSOLVE, INC. AND DRONE AVIATION HOLDING CORP On April 14, 2014, holders of the majority 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 [98,017 on a post-reverse basis] 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 exchanged 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. |
Drone Aviation Corp Aquisition
Drone Aviation Corp Aquisition of Lighter than Air Systems | 12 Months Ended |
Dec. 31, 2015 | |
Merger between Macrosolve, inc. and Drone Aviation Holding Corp / Drone Aviation Corp Aquisition of Lighter than Air Systems / Drone Aviation Holding Corp Asset Acquisition of Adaptive, Flight, Inc. [Abstract] | |
DRONE AVIATION CORP AQUISITION OF LIGHTER THAN AIR SYSTEMS | 3. DRONE AVIATION 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 Company recorded another $37,935 amortization expense for the year ended December 31, 2015. After comparing the acquired customer list to the actual customers who placed orders following the acquisition of LTAS, the Company determined that the customer list was impaired at December 31, 2015 and amortized the remaining balance of $65,674 in 2015. The consolidated financial statements included herein are presented for the period from January 1, 2014 to May 5, 2014 since LTAS is considered Drone’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 and
Drone Aviation Holding Corp and Drone Aviation Corp Securities Exchange, Reverse Merger and Recapitalization | 12 Months Ended |
Dec. 31, 2015 | |
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 Drone Aviation Corp. (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 [201,250 post-reverse] 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 [1,102,500 post-reverse] 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 [98,017 post-reverse] 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 [1,102,500 post-reverse] 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. 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-fortieth share, on a post-reverse split basis, 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 $40.00 per share. All the warrants were exercised on August 26, 2014. On June 2, 2015, the holders of Series E received an additional 2,700,000 units due to the Most Favored Nations provision associated with their initial investment. |
Drone Aviation Holding Corp Ass
Drone Aviation Holding Corp Asset Acquisition of Adaptive, Flight, Inc. | 12 Months Ended |
Dec. 31, 2015 | |
Merger between Macrosolve, inc. and Drone Aviation Holding Corp / Drone Aviation Corp Aquisition of Lighter than Air Systems / Drone Aviation Holding Corp Asset Acquisition of Adaptive, Flight, Inc. [Abstract] | |
DRONE AVIATION HOLDING CORP ASSET ACQUISITION OF ADAPTIVE, FLIGHT, INC. | 5. DRONE AVIATION HOLDING CORP ASSET ACQUISITION OF ADAPTIVE, FLIGHT, INC. On July 20, 2015, the Company, through its wholly-owned subsidiary Drone AFS Corp., purchased substantially all the assets of Adaptive Flight, Inc. (AFI), a Georgia corporation. The Company purchased assets including but not limited to intellectual property and licenses and permits, including commercial software licenses for the “GUST” (Georgia Tech UAV Simulation Tool) autopilot system, and other transferable licenses which include flight simulation and fault tolerant flight control algorithms. The Company paid $100,000 in immediately available funds and $100,000 to be held in escrow. In addition, the Company issued 150,000 shares of unregistered common stock valued at $8.40 per share, on a post-reverse split basis, on the date of agreement, to be held in escrow. The Company has a milestone of twelve months to complete a technology Integration Plan, the non-completion of which may result in the return of the purchased assets and termination of the Company’s obligations to release the escrow cash and shares. Additional milestones include exclusive, no-cost and perpetual licenses to all contributing intellectual property included or related to the purchased assets. As such time as all milestones are met, one-half of the escrow shares will be released to AFI. Upon termination of the escrow agreement, anticipated to be twelve months from the closing of the asset purchase, if all milestones have been met, the remaining escrow shares will be released to AFI; but if all milestones have not been met, the escrow cash and escrow shares will be released to the Company and the purchased assets will be returned to AFI. According to the terms of the Escrow Agreement, if the escrow share value is less than $1,400,000, the Company must issue an additional number of unregistered shares, not to exceed 50,000 shares. At December 31, 2015, the value of the 150,000 shares was $3.23 per share, or $484,500. The Company recorded $161,500 as an additional liability and expense at December 31, 2015 for the cost of 50,000 shares at $3.23 per share. The liability will be reevaluated at the end of each quarter and adjusted through the profit and loss statement as necessary. The asset acquisition did not qualify as a business combination under ASC 805-10 and has been accounted for as a regular asset purchase. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity [Abstract] | |
SHAREHOLDERS' EQUITY | 6. SHAREHOLDERS’ EQUITY On October 29, 2015 a 1:40 the Company effected a 1-for-40 reverse split of its common stock. The reverse split has been applied retroactively for disclosure purposes. For the year ended December 31, 2015 The Company issued a total of 4,198,632 common shares during the 2015, adjusted for the October 29, 2015 1:40 reverse split, described further as follows: The Company issued 215,750 shares of common stock between January 1 and March 31, 2015 pursuant to conversions of an aggregate of 86,300 shares of Series A preferred stock. The Company issued 200,573 shares of common stock between April 1 and June 30, 2015 pursuant to conversions of an aggregate of 80,229 shares of Series A preferred stock. The Company issued 25,500 shares of common stock between July 1 and September 30, 2015 pursuant to conversions of an aggregate of 10,200 shares of Series A preferred stock. The Company issued 297,302 shares of common stock between October 1 and December 31, 2015 pursuant to conversions of an aggregate of 118,921 shares of Series A preferred stock. The Company issued 1 share of common stock between July 1 and September 30, 2015 pursuant to conversions of an aggregate of 20 shares of Series B preferred stock. The Company issued 8,116 shares of common stock between October 1 and December 31, 2015 pursuant to conversions of an aggregate of 324,651 shares of Series B preferred stock. The Company issued 50,000 shares of common stock between April 1 and June 30, 2015 pursuant to conversions of an aggregate of 20,000 shares of Series C preferred stock. The Company issued 25,000 shares of common stock between July 1 and September 30, 2015 pursuant to conversions of an aggregate of 10,000 shares of Series C preferred stock. The Company issued 605,033 shares of common stock between October 1 and December 31, 2015 pursuant to conversions of an aggregate of 242,013 shares of Series C preferred stock. The Company issued 210,000 shares of common stock between April 1 and June 30, 2015 pursuant to conversions of an aggregate of 8,400,000 shares of Series D preferred stock. The Company issued 140,000 shares of common stock between July 1 and September 30, 2015 pursuant to conversions of an aggregate of 5,600,000 shares of Series D preferred stock. The Company issued 501,250 shares of common stock between October 1 and December 31, 2015 pursuant to conversions of an aggregate of 20,050,000 shares of Series D preferred stock. The Company issued 50,000 shares of common stock between July 1 and September 30, 2015 pursuant to conversions of an aggregate of 2,000,000 shares of Series E preferred stock. The Company issued 85,000 shares of common stock between October 1 and December 31, 2015 pursuant to conversions of an aggregate of 3,400,000 shares of Series E preferred stock. The Company issued 32,525 shares of common stock between October 1 and December 31, 2015 pursuant to conversions of an aggregate of 1,301,000 shares of Series F preferred stock The Company issued 50,000 shares of common stock between October 1 and December 31, 2015 pursuant to conversions of an aggregate of 2,000,000 shares of Series G preferred stock On June 1, 2015, the Company issued 50,000 shares of restricted common stock with monthly vesting provisions to the Chairman of the Board for twenty-four months services pursuant to a Director Agreement. The Chairman can earn a pro rata portion of the shares, calculated on a twenty-four month vesting period, in the event the Chairman relinquishes his position and board seat prior to the expiration date of the Director Agreement. The Company recognized a total of $157,500 expense for the pro rata portion of shares earned by the Chairman during 2015. On August 27, 2014, the Company issued 50,000 shares of restricted common stock with monthly vesting provisions to two members of its Strategic Advisory Board for twelve months services. 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 $213,333 expense for the pro rata portion of shares earned by the two advisors during 2015 and has recognized a total of $340,000 since August 27, 2014. The shares became fully vested on August 27, 2015. On July 20, 2015, the Company issued 150,000 shares of restricted common stock valued at $1,260,000 to acquire assets from Adaptive Flight, Inc. as described above. On September 4, 2015, the Company issued 450,000 shares of restricted common stock to four management employees and one director pursuant to stock award agreements. The shares will vest upon consummation of a $4,000,000 equity or debt financing provided that the holder remains engaged by the Company through the vesting date. Stock based compensation of $2,417,760 was recognized in 2015 based on management’s estimate that the shares will be fully vested by February 4, 2016 when the Board deemed vesting occurred with the issuance of $4,000,000 in common stock on November 20, 2015. On November 17 and 19, 2015, the Company sold an aggregate of 745,000 shares of restricted common stock for a purchase price of $5.00 per share in a Private Placement for cash proceeds of $3,484,750 net of $240,250 financing fees. In connection with this sale, the Company issued an aggregate of 70,000 additional shares of common stock to holders of Series E preferred stock pursuant to the ‘most favored nations’ provisions governing the Series E preferred stock. Additionally, pursuant to the terms of the Series F preferred stock and Series G preferred stock, the Company was required to obtain consent to issue securities at a per share purchase price less than the purchase price of the Series F and Series G. In consideration for the consents, the company issued an aggregate of 182,525 shares of restricted common stock to the holders of Series F and Series G preferred stock. On November 20, 2015, the Company entered into an Exchange Agreement with the holder of its outstanding shares of Series B-1 preferred stock pursuant to which the holder exchanged 68,731 shares of Series B-1 preferred stock for 55,000 shares of restricted common stock. On October 29, 2015, the Company issued an aggregate of 57 restricted shares to various investors due to round factors associated with implementing the 1:40 reverse split. For the year ended December 31, 2014 The Company issued 95,250 shares of common stock between June 3 and June 30, 2014, on a post-reverse split basis, pursuant to conversions of 38,100 shares of Series A Preferred Stock. The Company issued 246,625 shares of common stock between July 1 and September 30, 2014, on a post-reverse split basis, pursuant to conversions of 98,650 shares of Series A Preferred Stock. The Company issued 153,750 shares of common stock between October 1 and December 31, 2014, on a post-reverse split basis, 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 6,250 shares of common stock, on a post-reverse split basis, immediately deliverable and an additional 6,250 shares of common stock deliverable after six months if the agreement is still in force. The 6,250 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 6,250 shares of common stock. On July 21, 2014, the Company issued a total of 42,500 shares of common stock, on a post-reverse split basis, to two consulting firms which held warrants issued on May 19, 2014 for services which were exercised at a $.40 strike price, on a post-reverse split basis, or a total of $17,000. The Company issued 24,000 shares of common stock, on a post-reverse split basis, 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 9,310 shares of restricted common stock, on a post-reverse split basis, 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 50,000 shares of restricted common stock, on a post-reverse split basis, 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, 2015 | |
Preferred Stock [Abstract] | |
PREFERRED STOCK | 7. PREFERRED STOCK For the year ended December 31, 2015 All of the preferred stock of the Company is convertible into common shares. The Series A and Series C stock conversion ratio is 1 to 2.5 common shares on a post-split basis. The Series B, B-1, D, E, F and G stock conversion ratio is 1 to 0.025 common shares on a post-split basis. 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 ownership limitations governing such preferred shares. 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 nor 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 stock 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 during the year ended December 31, 2014. The Series G stock issued during current quarter also contained a beneficial conversion feature. The intrinsic value of the beneficial conversion feature was determined to be $80,000. The beneficial conversion feature was fully amortized and recorded as a deemed dividend during the year ended December 31, 2015. On October 29, 2015 a 1:40 reverse split of the Company stock occurred and the effect has been applied retroactively for disclosure purposes. During 2015, eight investors in Series A preferred stock converted a total of 295,650 shares of Series A for an aggregate of 739,126 shares of restricted common stock in accordance with their conversion rights which includes a blocker with respect to individual ownership percentages. During the same period, both investors in Series B preferred stock converted a total of 324,671 shares of Series B for 8,117 shares of restricted common stock, six investors in Series C preferred stock converted a total of 272,013 shares of Series C for an aggregate of 680,033 shares of restricted common stock, thirteen investors in Series D preferred stock converted a total of 34,050,000 shares of Series D for an aggregate of 851,250 shares of restricted common stock, seven investors in Series E preferred stock converted a total of 5,400,000 shares of Series E for an aggregate of 135,000 shares of restricted common stock, three investors in Series F preferred stock converted a total of 1,301,001 shares of Series F for an aggregate of 32,525 shares of restricted common stock, and six investors in Series G preferred stock converted a total of 2,000,000 shares of Series G for an aggregate of 50,000 shares of restricted common stock, all in accordance with their conversion rights which includes a blocker with respect to individual ownership percentages. On November 20, 2015, the Company entered into an Exchange Agreement with the holder of its outstanding shares of Series B-1 preferred stock pursuant to which the holder exchanged 68,731 shares of Series B-1 preferred stock for 55,000 shares of restricted common stock. Series G Preferred Private Placement On June 2, 2015, the Company sold an aggregate of 4,000,000 units in a private placement of its securities to certain investors at a purchase price of $0.25 per unit pursuant to subscription for an aggregate purchase price of $985,725, net of $14,275 financing fees. Each unit consists of one share of the Company’s Series G Convertible Preferred Stock, par value $0.0001 per share, each of which is convertible into 0.025 shares of Common Stock on a post-split basis. On June 2, 2015, as a result of the sale of the Series G Preferred Stock, the Company issued 2,700,000 shares of Series E Convertible Preferred Stock, which are convertible into an aggregate of 67,500 shares of Common Stock on a post-split basis, to existing holders of Series E Preferred Stock, in connection with certain anti-dilution rights associated with their purchase of such shares. The additional share issuance was treated as a ‘stock split’ and was retrospectively reflected as of December 31, 2014. On June 2, 2015, the Company received the consent of the holders of a majority of its Series F Convertible Preferred Stock to consummate the Series G Private Placement, as required under the terms of that investment. In consideration for the foregoing consent, the Company issued all holders of its Series F Preferred Stock an aggregate of an additional 2,200,666 shares of Series F Preferred Stock, which are convertible into an aggregate of 55,017 shares of common stock on a post-split basis. The additional share issuance was treated as a ‘stock split’ and was retrospectively reflected as of December 31, 2014. Common Stock Private Placement On November 17 and 19, 2015, the Company sold an aggregate of 745,000 shares of restricted common stock for a purchase price of $5.00 per share in a Private Placement. In connection with this sale, the Company issued an aggregate of 70,000 additional shares of common stock to holders of Series E preferred stock pursuant to the ‘most favored nations’ provisions governing the Series E preferred stock. Additionally, pursuant to the terms of the Series F preferred stock and Series G preferred stock, the Company was required to obtain consent to issue securities at a per share purchase price less than the purchase price of the Series F and Series G. In consideration for the consents, the company issued an aggregate of 182,525 shares of restricted common stock to the holders of Series F and Series G preferred stock. For the year ended December 31, 2014 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 95,250 shares of common stock, on a post-reverse split basis, 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 246,625 shares of common stock, on a post-reverse split basis, 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 153,750 shares of common stock, on a post-reverse split basis, 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. The Company issued 24,000 shares of common stock, on a post-reverse split basis, on August 25, 2014 pursuant to the conversion of 9,600 shares of Series C Preferred Stock. 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-fortieth share of Common Stock, on a post-reverse split basis, 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. |
Employee Stock Options
Employee Stock Options | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EMPLOYEE STOCK OPTIONS | 8. EMPLOYEE STOCK OPTIONS For the year ended December 31, 2015 On October 29, 2015 a 1:40 reverse split of the Company stock occurred and the effect has been applied retroactively for disclosure purposes. During 2015, the Company granted 842,500 common stock options to employees and a director for service provided. Of these, 250,000 options were immediately vested and were granted with an exercise price of $6.00 and the expiration date is May 18, 2018. Another 105,000 options were immediately vested and were granted with an exercise price of $5.00 and the expiration date of December 10, 2018. Another 250,000 options vest over two years or upon the up listing of the Company’s common stock and were granted with an exercise price of $6.00 and the expiration date is June 1, 2018. These 250,000 options were surrendered and cancelled on September 4, 2015. A director received two options. The first was for 75,000 shares vesting over two years and was granted with an exercise price of $10.00 and the expiration date is June 1, 2018. The second was for 125,000 shares with vesting tied to performance and was granted with an exercise price of $10.00 and the expiration date is June 1, 2018. These two director options were surrendered and cancelled on September 4, 2015. The Company uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards on the date of grant. The following table summarizes the assumptions used to estimate the fair value of stock options granted during 2015: 2015 Expected dividend yield 0 % Expected volatility 116% – 131 % Risk-free interest rate 0.79% – 1.25 % Expected life of options 2.43 – 3.00 years Under the Black-Scholes option price model, fair value of the options granted is estimated at $3,013,531. During 2015, $2,822,132 compensation expense was recognized and the remaining $191,399 will be recognized over the next three years. The following table represents stock option activity as of and for the period ended December 31, 2015: Number of Options Weighted Average Exercise Price Contractual Life in Years Intrinsic Value Outstanding – December 31, 2014 - $ 0.00 Exercisable – December 31, 2014 - $ 0.00 $ 0.00 Granted 842,500 $ 7.04 Exercised or Vested - $ 0.00 Cancelled or Expired 450,000 $ 7.78 Outstanding – December 31, 2015 392,500 $ 6.19 2.62 Exercisable – December 31, 2015 355,000 $ 5.70 2.55 $ 0.00 For the year ended December 31, 2014 On April 30, 2014, the effective date of the Redomestication and effective date of the Merger Exchange Ratio, there were a total of 920 vested and 618 unvested options, on a post-reverse split basis, carried over to the reverse merger with DAC on June 3, 2014 with strike prices ranging from $66.80 to $5,056. During September 2014, the holders of these options voluntarily agreed to terminate their options. At December 31, 2014 there are no outstanding options. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2015 | |
Warrants [Abstract] | |
WARRANTS | 9. WARRANTS For the year ended December 31, 2015 On October 29, 2015 a 1:40 reverse split of the Company stock occurred and the effect has been applied retroactively for disclosure purposes. For the year 2015, 52,500 common stock purchase warrants were granted to two consultants and a vendor for service provided. One consultant was granted 25,000 warrants with exercise price of $10.00, vesting over two years and the expiration date is June 16, 2018. The other consultant was granted 12,500 warrants with exercise price of $10.00, vesting over one year and the expiration date is June 25, 2018. These same two consultants and the vendor each received 5,000 warrants with exercise price of $5.00, immediately vested and an expiration date of December 10, 2018. On November 20, 2015, the Company issued 70,000 warrants with exercise price of $5.00, immediately vested and the expiration date of November 20, 2020 to the placement agent in the common stock private placement. The Company uses the Black-Scholes warrant pricing model to estimate the fair value of warrants as of December 31, 2015. The following table summarizes the assumptions used to estimate the fair value of warrants granted during 2015: 2015 Expected dividend yield 0 % Expected volatility 116% – 121 % Risk-free interest rate .87% – 1.70 % Expected life of warrants 2.4 – 5 years Under the Black-Scholes warrant price model, fair value of the warrants granted is estimated at $347,201. During 2015, $324,263 compensation expense was recognized. For the year ended December 31, 2014 On April 30, 2014, the effective date of the Redomestication and effective date of the Merger Exchange Ratio, there were a total of 16,842 warrants, on a post-reverse split basis, carried over to the reverse merger with DAC on June 3, 2014 with strike prices ranging from $101.2 to $662.8. A total of 4,717 of these warrants with strike prices of $202.4 expired between July and September 2014 leaving a total of 12,125 outstanding warrants. During May 2014, the Company issued a total of 42,500 warrants on a post-reverse split basis for services. The warrants have a term of three years, and exercise price of $0.40. The 42,500 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 67,500 warrants on a post-reverse split basis to purchase one share of common stock at an exercise price of $40.00 per warrant share to investors who purchased Series E Preferred Stock. The exercise price of $40.00 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 $40.00 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 9,310 shares of restricted common stock on a post-reverse split basis. Because the 42,500 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 represents warrant activity as of and for the period ended December 31, 2015 and 2014: Number of Warrants Weighted Average Exercise Price Contractual Life in Years Intrinsic Value Outstanding – December 31, 2014 12,129 $ 206.86 2.04 Exercisable – December 31, 2014 12,129 $ 206.86 2.04 $ 0.00 Granted 122,500 $ 6.53 Forfeited or Expired (420 ) $ 250.35 Outstanding – December 31, 2015 134,209 $ 23.87 3.66 Exercisable – December 31, 2015 104,209 $ 27.87 4.01 $ 0.00 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
INVENTORIES | 10. INVENTORIES Inventories consisted of the following: 2015 2013 Raw Materials $ 26,358 $ 18,944 Work in progress 3,817 1,369 Finished Goods 107,209 19,091 Less valuation allowance (18,589 ) - $ 118,795 $ 39,404 |
Prepaid Expenses
Prepaid Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expenses [Abstract] | |
PREPAID EXPENSES | 11. PREPAID EXPENSES Prepaid expenses consisted of the following: 2015 2014 Prepaid insurance $ 25,517 $ 23,114 Prepaid services 24,192 15,225 Prepaid rent and security deposit 5,915 11,830 $ 55,624 $ 50,169 |
Investment in Securities Held f
Investment in Securities Held for Resale | 12 Months Ended |
Dec. 31, 2015 | |
Investment in Securities Held for Resale [Abstract] | |
INVESTMENT IN SECURITIES HELD FOR RESALE | 12. 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 Commerciali
Oklahoma Technology Commercialization Center | 12 Months Ended |
Dec. 31, 2015 | |
Oklahoma Technology Commercialization Center [Abstract] | |
OKLAHOMA TECHNOLOGY COMMERCIALIZATION CENTER | 13. 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 Company has not made any reductions in the award so it is in default. The Company has proposed a settlement to be released from the debt that is unrelated to the current operations and is awaiting a response. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
INCOME TAXES | 14. 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 $4,220,577 for 2015 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 $4,220,577 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, 2015 December 31, 2014 Net operating loss carry-forwards $ 1,434,996 $ 497,501 Valuation allowance (1,434,996 ) (497,501 ) $ -0- $ -0- |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. 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 actual commencement date was July 1, 2015 and the lease was amended to 61 months expiring July 31, 2020. 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 2016 - $ 71,854 Year 2017 - $ 73,619 Year 2018 - $ 75,437 Year 2019 - $ 77,309 Year 2020 - $ 45,651 On January 1, 2015, the Company entered into an agreement to lease executive office space for its President 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. Rent expense in 2015 and 2014 were $76,492, and $37,557, respectively, and consisted of reimbursements for home offices and reimbursements made in 2014 to a related party which leased the Company’s former shared office and manufacturing space. As of December 31, 2015, 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, 2015 | |
Concentrations [Abstract] | |
CONCENTRATIONS | 16. 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, 2015, accounts receivable from two customers comprised 100% of the company’s total accounts receivable-trade. Revenues from two customers approximated 71% of total revenues for 2015. At December 31, 2014, accounts receivable from one customer comprised approximately 100% of the Company’s total accounts receivable-trade. Revenues from four customers approximated 92% of total revenues for 2014. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS The Company issued a total of 335,968 shares of common stock between January 1- March 4, 2016, described further as follows: The Company issued 2,500 shares of common stock between January 1- March 4, 2016 pursuant to conversions of an aggregate of 1,000 shares of Series A preferred stock. The Company issued 183,468 shares of common stock between January 1- March 4, 2016 pursuant to conversions of an aggregate of 73,387 shares of Series C preferred stock. The Company issued 50,000 shares of common stock between January 1- March 4, 2016 pursuant to conversions of an aggregate of 2,000,000 shares of Series D preferred stock. The Company issued 50,000 shares of common stock between January 1- March 4, 2016 pursuant to conversions of an aggregate of 1,999,998 shares of Series F preferred stock. The Company issued 50,000 shares of common stock between January 1- March 4, 2016 pursuant to conversions of an aggregate of 2,000,000 shares of Series F preferred stock. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Description of Business: | Description of Business: Drone Aviation Holding Corp. (“Drone” or “Company”) develops and manufactures cost-effective, compact and rapidly deployable aerial platforms including lighter-than-air aerostats and electric-powered drones designed to provide government and commercial customers with enhanced surveillance and communication capabilities. Utilizing a proprietary tether system, the Company's products are designed to provide prolonged operational duration capabilities combined with improved reliability, uniquely fulfilling critical requirements in military, law enforcement and commercial and industrial applications. |
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, 2015 include the accounts of Drone Aviation Holding Corp. and its subsidiaries: Drone AFS Corp. and Lighter Than Air Systems Corp. 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. |
Reclassifications: | Reclassifications: 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, 2015 and 2014. |
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, 2015 and 2014, 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, 2015. |
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, 2015 and 2014: 2015 2014 Shop Machinery and equipment $ 80,889 $ 19,954 Computers and electronics 28,911 12,075 Office furniture and fixtures 33,977 2,035 Leasehold improvements 19,514 - 163,291 34,064 Less - accumulated depreciation (26,995 ) (7,040 ) $ 136,296 $ 27,024 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, 2015 and 2014, the Company purchased $129,227 and $27,863 of furniture and equipment, respectively. The Company recognized $19,955 and $2,477 of depreciation expense for the year ended December 31, 2015 and 2014, 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. The Company acquired the LTAS customer list in 2014. 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 leaving a remaining carrying amount of $103,609. The Company recorded another $37,935 amortization expense for the year ended December 31, 2015. After comparing the acquired customer list to the actual customers who placed orders following the acquisition of LTAS, the Company determined that the customer list was impaired at December 31, 2015 and amortized the remaining balance of $65,674 in 2015. 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. The Company performed impairment analysis using the qualitative analysis under ASC 350-20 and noted no impairment issues for 2015. |
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 Company evaluates the embedded conversion feature within its convertible debt instruments under ASC 815-15 and ASC 815-40 to determine if the conversion feature meets the definition of a liability and therefore need to bifurcate the conversion feature and account for it as a separate derivative liability. 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. |
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 2015, the Company deferred recognizing $7,896 in revenue from a 2015 sale that was delivered in January 2016. There is a balance of $83,288 in accounts receivable at December 31, 2015 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, 2015 was comprised of $6,000 director fees which were paid in January 2016. The accounts payable due to related party at December 31, 2014, includes allocated rent and utility charges, aerostat envelopes, truck expenses and labor charges due Aerial Products Corp (“APC”) was $2,181. APC is a related party, controlled by a current employee of the Company. APC shared 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, 2015 and 2014 were $7,549 and $19,242 respectively. Additionally, the Company purchased used fixed assets from APC for $6,500 during the year ended December 31, 2015. |
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 years ended December 31, 2015 and 2014, basic and diluted losses per share are the same for both years. |
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 Accoun25
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of property and equipment | 2015 2014 Shop Machinery and equipment $ 80,889 $ 19,954 Computers and electronics 28,911 12,075 Office furniture and fixtures 33,977 2,035 Leasehold improvements 19,514 - 163,291 34,064 Less - accumulated depreciation (26,995 ) (7,040 ) $ 136,296 $ 27,024 |
Drone Aviation Corp Aquisitio26
Drone Aviation Corp Aquisition of Lighter than Air Systems (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Merger between Macrosolve, inc. and Drone Aviation Holding Corp / Drone Aviation Corp Aquisition of Lighter than Air Systems / Drone Aviation Holding Corp Asset Acquisition of Adaptive, Flight, Inc. [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 a27
Drone Aviation Holding Corp and Drone Aviation Corp Securities Exchange, Reverse Merger and Recapitalization (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 | 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 |
Employee Stock Options (Tables)
Employee Stock Options (Tables) - Employee Stock Option [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Summarizes the assumptions of estimate the fair value stock options granted | 2015 Expected dividend yield 0 % Expected volatility 116% – 131 % Risk-free interest rate 0.79% – 1.25 % Expected life of options 2.43 – 3.00 years |
Summarizes the assumptions of stock option activity | Number of Options Weighted Average Exercise Price Contractual Life in Years Intrinsic Value Outstanding – December 31, 2014 - $ 0.00 Exercisable – December 31, 2014 - $ 0.00 $ 0.00 Granted 842,500 $ 7.04 Exercised or Vested - $ 0.00 Cancelled or Expired 450,000 $ 7.78 Outstanding – December 31, 2015 392,500 $ 6.19 2.62 Exercisable – December 31, 2015 355,000 $ 5.70 2.55 $ 0.00 |
Warrants (Tables)
Warrants (Tables) - Warrant [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Class of Warrant or Right [Line Items] | |
Summarizes of the assumptions of estimate the fair value warrants granted | 2015 Expected dividend yield 0 % Expected volatility 116% – 121 % Risk-free interest rate .87% – 1.70 % Expected life of warrants 2.4 – 5 years |
Schedule of warrant activity | Number of Warrants Weighted Average Exercise Price Contractual Life in Years Intrinsic Value Outstanding – December 31, 2014 12,129 $ 206.86 2.04 Exercisable – December 31, 2014 12,129 $ 206.86 2.04 $ 0.00 Granted 122,500 $ 6.53 Forfeited or Expired (420 ) $ 250.35 Outstanding – December 31, 2015 134,209 $ 23.87 3.66 Exercisable – December 31, 2015 104,209 $ 27.87 4.01 $ 0.00 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Schedule of Inventory | 2015 2013 Raw Materials $ 26,358 $ 18,944 Work in progress 3,817 1,369 Finished Goods 107,209 19,091 Less valuation allowance (18,589 ) - $ 118,795 $ 39,404 |
Prepaid Expenses (Tables)
Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expenses [Abstract] | |
Schedule of prepaid expenses | 2015 2014 Prepaid insurance $ 25,517 $ 23,114 Prepaid services 24,192 15,225 Prepaid rent and security deposit 5,915 11,830 $ 55,624 $ 50,169 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule of deferred tax assets | December 31, 2015 December 31, 2014 Net operating loss carry-forwards $ 1,434,996 $ 497,501 Valuation allowance (1,434,996 ) (497,501 ) $ -0- $ -0- |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Schedule of operating lease | Year 2016 - $ 71,854 Year 2017 - $ 73,619 Year 2018 - $ 75,437 Year 2019 - $ 77,309 Year 2020 - $ 45,651 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of Significant Accounting Policies [Abstract] | ||
Shop Machinery and equipment | $ 80,889 | $ 19,954 |
Computers and electronics | 28,911 | 12,075 |
Office furniture and fixtures | 33,977 | $ 2,035 |
Leasehold improvements | 19,514 | |
Property and equipment,gross | 163,291 | $ 34,064 |
Less - accumulated depreciation | (26,995) | (7,040) |
Net property and equipment | $ 136,296 | $ 27,024 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Uncollectible receivables | $ 0 | $ 0 |
Deferred revenue | 7,896 | |
Accounts receivable prepayment | $ 83,288 | |
Valuation allowance against net deferred tax assets | 100.00% | |
Accounts receivable, payment period | 30 days | |
Accounts payable due to related party | $ 6,000 | $ 2,181 |
Total charges | 7,549 | 19,242 |
Depreciation expense | 19,955 | 2,477 |
Cash paid on furniture and equipment | 129,227 | 27,863 |
Amortization expenses | 37,935 | $ 31,941 |
Purchase of fixed asstes | 6,500 | |
Impairment of intangible assets | 65,674 | |
Customer Lists [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Amortization of discounted cash flow model | 135,550 | |
Amortization expenses | $ 103,609 | |
Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
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 |
Merger between Macrosolve, in36
Merger between Macrosolve, inc. and Drone Aviation Holding Corp (Details) - shares | Apr. 14, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2014 |
Merger between macrosolve inc and drone aviation holding corp (Textual) | ||||
Common stock, shares issued | 5,125,585 | 926,953 | 3,920,700 | |
Common stock, shares outstanding | 5,125,585 | 926,953 | 3,920,700 | |
Series A Preferred Stock [Member] | ||||
Merger between macrosolve inc and drone aviation holding corp (Textual) | ||||
Preferred stock, shares issued | 101,100 | 396,750 | 595,000 | |
Series B Preferred Stock [Member] | ||||
Merger between macrosolve inc and drone aviation holding corp (Textual) | ||||
Preferred stock, shares issued | 0 | 324,671 | 324,671 | |
Series B-1 Preferred Stock [Member] | ||||
Merger between macrosolve inc and drone aviation holding corp (Textual) | ||||
Preferred stock, shares issued | 0 | 68,731 | 156,231 | |
Macrosolve, Inc [Member] | ||||
Merger between macrosolve inc and drone aviation holding corp (Textual) | ||||
Common stock, shares issued | 98,017 | 198,219,132 | ||
Common stock, shares outstanding | 98,017 | 198,219,132 | ||
Description of share consolidation | Pursuant to the Redomestication, each of MacroSolve's shareholders received one share of common stock, par value $0.0001 per share of Drone Aviation Holding Corp. for every 50.56186 shares of MacroSolve's common stock |
Drone Aviation Corp Aquisitio37
Drone Aviation Corp Aquisition of Lighter than Air Systems (Details) - Lighter Than Air Systems [Member] - USD ($) | Dec. 31, 2015 | May. 05, 2014 |
Business Acquisition [Line Items] | ||
Property and equipment | $ 1,638 | |
Accounts receivable | 135,050 | |
Cash in bank | 30,361 | $ 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 Corp Aquisitio38
Drone Aviation Corp Aquisition of Lighter than Air Systems (Details Textual) - USD ($) | 1 Months Ended | 4 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | May. 05, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||||
Stock issued during period for investors | $ 653,327 | |||
Stock issued during period acquisition | 79,000 | |||
Cash paid on business combination, net | 304,639 | |||
Amortization | $ 37,935 | 31,941 | ||
Net loss | (8,975,862) | $ (2,123,490) | ||
Impairment of intangible assets | $ 65,674 | |||
Customer Lists [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash paid on business combination, net | ||||
Intangible assets useful life | 5 years | |||
Amortization | $ 103,609 | |||
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 | $ 30,361 | ||
Net loss | $ 39,918 | |||
Common Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Stock issued during period acquisition, 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 |
Drone Aviation Holding Corp a39
Drone Aviation Holding Corp and Drone Aviation Corp Securities Exchange, Reverse Merger and Recapitalization (Details) - Drone Aviation Holding Corp [Member] | Jun. 03, 2014USD ($) |
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 a40
Drone Aviation Holding Corp and Drone Aviation Corp Securities Exchange, Reverse Merger and Recapitalization (Details Textual) - USD ($) | Jun. 02, 2015 | Jun. 03, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2014 |
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Common stock, shares issued | 5,125,585 | 926,953 | 3,920,700 | ||
Common stock, shares outstanding | 5,125,585 | 926,953 | 3,920,700 | ||
Series D Preferred Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Preferred stock, shares issued | 2,000,000 | 36,050,000 | |||
Preferred stock, shares outstanding | 2,000,000 | 36,050,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |||
Series A Preferred Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Preferred stock, shares issued | 101,100 | 396,750 | 595,000 | ||
Preferred stock, shares outstanding | 101,100 | 396,750 | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |||
Series B Preferred Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Preferred stock, shares issued | 0 | 324,671 | 324,671 | ||
Preferred stock, shares outstanding | 0 | 324,671 | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |||
Series C Preferred Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Preferred stock, shares issued | 73,387 | 345,400 | |||
Preferred stock, shares outstanding | 73,387 | 345,400 | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |||
Series E Preferred Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Preferred stock, shares issued | 0 | 5,400,000 | |||
Preferred stock, shares outstanding | 0 | 5,400,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |||
Series B One Preferred Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Preferred stock, shares issued | 0 | 68,731 | 156,231 | ||
Preferred stock, shares outstanding | 0 | 68,731 | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |||
Private Placement [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
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-fortieth share, on a post-reverse split basis, 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 $40.00 per share. | ||||
Private Placement [Member] | Series E Preferred Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Securities sold to investors, shares | 2,700,000 | ||||
Preferred stock, par value (in dollars per share) | $ 0.0001 | ||||
Warrant [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Securities sold to investors price per share | $ 40 | ||||
Common Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Common stock, shares outstanding | 3,920,700 | 98,017 | |||
Preferred Stock [Member] | Series A Preferred Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Preferred stock, shares outstanding | 595,000 | ||||
Preferred Stock [Member] | Series B Preferred Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Preferred stock, shares outstanding | 324,671 | ||||
Preferred Stock [Member] | Series C Preferred Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Preferred stock, shares outstanding | 355,000 | ||||
Preferred Stock [Member] | Series B One Preferred Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Preferred stock, shares outstanding | 156,231 | ||||
Drone Aviation Corp [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Common stock, shares issued | 44,100,000 | 1,102,500 | |||
Common stock, shares outstanding | 44,100,000 | 1,102,500 | |||
Percentage of excess stocks held | 3.33% | ||||
Percentage of common stock outstanding | 100.00% | ||||
Drone Aviation Corp [Member] | Series D Preferred Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Shares issued under share exchange agreement, shares | 36,050,000 | ||||
Drone Aviation Corp [Member] | Common Stock [Member] | |||||
Drone Aviation Holding Corp And Drone Aviation Corp Securities Exchange Reverse Merger And Recapitalization (Textual) | |||||
Shares issued under share exchange agreement, shares | 8,050,000 | 201,250 |
Drone Aviation Holding Corp A41
Drone Aviation Holding Corp Asset Acquisition of Adaptive, Flight, Inc. (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Jul. 20, 2015 | Dec. 31, 2015 | |
Drone Aviation Holding Corp Asset Acquisition of Adaptive Flight Inc (Textual) | ||
Share price per share | $ 3.23 | |
Georgia Tech UAV Simulation Tool [Member] | ||
Drone Aviation Holding Corp Asset Acquisition of Adaptive Flight Inc (Textual) | ||
Payments made to AFI | $ 100,000 | |
Escrow deposit | $ 100,000 | |
Unregistered common stock, Value | $ 484,500 | |
Unregistered common stock, Shares | 150,000 | 150,000 |
Share price per share | $ 8.40 | $ 3.23 |
Terms of escrow agreement, Description | The terms of the Escrow Agreement, if the escrow share value is less than $1,400,000, the Company must issue an additional number of unregistered shares, not to exceed 50,000 shares. | |
Additional liability and expense, Value | $ 161,500 | |
Additional liability and expense, Shares | 50,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | Nov. 19, 2015USD ($)$ / sharesshares | Nov. 17, 2015USD ($)$ / sharesshares | Oct. 29, 2015shares | Oct. 29, 2015 | Sep. 04, 2015USD ($)shares | Jul. 20, 2015USD ($)shares | Jun. 01, 2015USD ($)shares | Aug. 26, 2014Firmsshares | Jul. 21, 2014USD ($)Firmsshares | Jul. 01, 2014USD ($)shares | Aug. 27, 2014USD ($)shares | Aug. 25, 2014shares | Jun. 30, 2014shares | Dec. 31, 2015shares | Sep. 30, 2015shares | Jun. 30, 2015shares | Mar. 31, 2015shares | Dec. 31, 2014Firmsshares | Sep. 30, 2014shares | Dec. 31, 2015USD ($)Firmsshares | Dec. 31, 2014USD ($)shares | Apr. 30, 2014shares |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Common stock, shares issued | 5,125,585 | 926,953 | 5,125,585 | 926,953 | 3,920,700 | |||||||||||||||||
Common stock reverse stock split | 1:40 reverse split | |||||||||||||||||||||
Common stock issued, value | $ | $ 3,484,750 | $ 653,327 | ||||||||||||||||||||
Shares of series preferred stock converted | 2,000,000 | |||||||||||||||||||||
Shares issued to services, Shares | 42,500 | |||||||||||||||||||||
Shares issued for service | $ | $ 17,000 | 341,667 | ||||||||||||||||||||
Number of consulting firms | Firms | 2 | |||||||||||||||||||||
Shares of restricted common stock issued | 57 | |||||||||||||||||||||
Restricted common stock vesting description | Shares of restricted common stock, on a post-reverse split basis, 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. | |||||||||||||||||||||
Stock based compensation | $ | $ 5,934,988 | $ 341,667 | ||||||||||||||||||||
Series B-1 Preferred Stock [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares issued to services, Shares | ||||||||||||||||||||||
Shares issued for service | $ | ||||||||||||||||||||||
Shares of restricted common stock issued | 55,000 | |||||||||||||||||||||
Common stock of Drone Aviation Corp issued for cash, Shares | ||||||||||||||||||||||
Preferred stock, shares outstanding | 0 | 68,731 | 0 | 68,731 | ||||||||||||||||||
Private Placement [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Common stock of Drone Aviation Corp issued for cash, Shares | 745,000 | 745,000 | ||||||||||||||||||||
Financing fees | $ | $ 240,250 | $ 240,250 | ||||||||||||||||||||
Purchase price of restricted common stock | $ / shares | $ 5 | $ 5 | ||||||||||||||||||||
Proceeds from issuance of private placement | $ | $ 3,484,750 | $ 3,484,750 | ||||||||||||||||||||
Adaptive Flight, Inc [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares of restricted common stock issued | 150,000 | |||||||||||||||||||||
Shares of restricted common stock issued, value | $ | $ 1,260,000 | |||||||||||||||||||||
Members of advisory board [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares of restricted common stock issued | 50,000 | |||||||||||||||||||||
Restricted common stock vesting description | The Company issued 50,000 shares of restricted common stock, on a post-reverse split basis, with monthly vesting provisions to two members of its newly-formed Strategic Advisory Board for twelve months of service. | |||||||||||||||||||||
Expense for the pro rata portion of shares | $ | $ 340,000 | $ 213,333 | $ 126,667 | |||||||||||||||||||
Consulting Agreement [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares issued to services, Shares | 6,250 | |||||||||||||||||||||
Shares issued for service | $ | $ 215,000 | |||||||||||||||||||||
Additional shares issued | 6,250 | |||||||||||||||||||||
Director Agreement [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares of restricted common stock issued | 50,000 | |||||||||||||||||||||
Restricted common stock vesting description | The Company issued 50,000 shares of restricted common stock with monthly vesting provisions to the Chairman of the Board for twenty-four months services pursuant to a Director Agreement. | |||||||||||||||||||||
Expense for the pro rata portion of shares | $ | $ 157,500 | |||||||||||||||||||||
Stock Award Agreements [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares of restricted common stock issued | 450,000 | |||||||||||||||||||||
Shares of restricted common stock issued, value | $ | $ 4,000,000 | |||||||||||||||||||||
Stock based compensation | $ | $ 2,417,760 | |||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Common stock, shares issued | 4,198,632 | 4,198,632 | ||||||||||||||||||||
Common stock reverse stock split | 1:40 the Company effected a 1-for-40 reverse split of its common stock. | |||||||||||||||||||||
Series A Preferred Stock [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares of series preferred stock converted | 38,100 | 118,921 | 10,200 | 80,229 | 86,300 | 61,500 | 98,650 | 295,650 | ||||||||||||||
Number of common stock shares issued upon conversion | 95,250 | 297,302 | 25,500 | 200,573 | 215,750 | 153,750 | 246,625 | 297,302 | 153,750 | |||||||||||||
Number of investors | Firms | 5 | 8 | ||||||||||||||||||||
Shares of restricted common stock issued | 739,126 | |||||||||||||||||||||
Series B Preferred Stock [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares of series preferred stock converted | 324,651 | 20 | ||||||||||||||||||||
Number of common stock shares issued upon conversion | 8,116 | 1 | 8,116 | |||||||||||||||||||
Series C Preferred Stock [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares of series preferred stock converted | 9,600 | 242,013 | 10,000 | 20,000 | ||||||||||||||||||
Number of common stock shares issued upon conversion | 24,000 | 605,033 | 25,000 | 50,000 | 605,033 | |||||||||||||||||
Series D Preferred Stock [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares of series preferred stock converted | 20,050,000 | 5,600,000 | 8,400,000 | |||||||||||||||||||
Number of common stock shares issued upon conversion | 501,250 | 140,000 | 210,000 | 501,250 | ||||||||||||||||||
Series E Preferred Stock [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares of series preferred stock converted | 3,400,000 | 2,000,000 | ||||||||||||||||||||
Number of common stock shares issued upon conversion | 85,000 | 50,000 | 85,000 | |||||||||||||||||||
Restricted common stock issued pursuant to exercise of warrants | 9,310 | |||||||||||||||||||||
Number of investors | Firms | 7 | |||||||||||||||||||||
Exercise of warrants, percentage | 100.00% | |||||||||||||||||||||
Series E Preferred Stock [Member] | Private Placement [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Additional shares issued | 70,000 | |||||||||||||||||||||
Series F Preferred Stock [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares of series preferred stock converted | 1,301,000 | |||||||||||||||||||||
Number of common stock shares issued upon conversion | 32,525 | 32,525 | ||||||||||||||||||||
Series F Preferred Stock [Member] | Private Placement [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares of restricted common stock issued | 182,525 | |||||||||||||||||||||
Series G Preferred Stock [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares of series preferred stock converted | 2,000,000 | |||||||||||||||||||||
Number of common stock shares issued upon conversion | 50,000 | 50,000 | ||||||||||||||||||||
Series G Preferred Stock [Member] | Private Placement [Member] | ||||||||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||||||||||||
Shares of restricted common stock issued | 182,525 |
Preferred Stock (Details)
Preferred Stock (Details) | Nov. 19, 2015USD ($)$ / sharesshares | Nov. 17, 2015USD ($)$ / sharesshares | Oct. 29, 2015shares | Oct. 29, 2015 | Jun. 02, 2015USD ($)$ / sharesshares | Aug. 26, 2014Firmsshares | Jun. 03, 2014$ / sharesshares | Aug. 27, 2014USD ($)$ / sharesshares | Jun. 30, 2014shares | Dec. 31, 2015$ / sharesshares | Sep. 30, 2015shares | Jun. 30, 2015shares | Mar. 31, 2015shares | Dec. 31, 2014Firms$ / sharesshares | Sep. 30, 2014shares | Dec. 31, 2015USD ($)Firms$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Jun. 06, 2014USD ($)shares | Apr. 30, 2014shares |
Preferred Stock (Textual) | |||||||||||||||||||
Shares of series preferred stock converted | 2,000,000 | ||||||||||||||||||
Shares of restricted common stock issued | 57 | ||||||||||||||||||
Deemed dividend beneficial conversion feature on convertible preferred stock | $ | $ (80,000) | ||||||||||||||||||
Common stock reverse stock split | 1:40 reverse split | ||||||||||||||||||
Proceeds from Series F preferred stock issued for cash | $ | $ 822,750 | ||||||||||||||||||
Restricted common stock vesting description | Shares of restricted common stock, on a post-reverse split basis, 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. | ||||||||||||||||||
Common Stock [Member] | Predecessor [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Proceeds from Series F preferred stock issued for cash | $ | |||||||||||||||||||
Proceeds from common stock issued for cash, Shares | 745,000 | ||||||||||||||||||
Conversion of Series C preferred stock to common stock,Shares | 680,033 | 24,000 | |||||||||||||||||
Conversion of Series G preferred stock to common stock, Shares | 50,000 | ||||||||||||||||||
Conversion of Series B1 preferred stock to common stock, Shares | 55,000 | ||||||||||||||||||
Common stock of Drone Aviation Corp issued for cash, Shares | 201,250 | ||||||||||||||||||
Series A Preferred Stock [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Shares of series preferred stock converted | 38,100 | 118,921 | 10,200 | 80,229 | 86,300 | 61,500 | 98,650 | 295,650 | |||||||||||
Shares of restricted common stock issued | 739,126 | ||||||||||||||||||
Number of restricted common stock shares issued upon conversion | 95,250 | 297,302 | 25,500 | 200,573 | 215,750 | 153,750 | 246,625 | 297,302 | 153,750 | ||||||||||
Number Of Investors | Firms | 5 | 8 | |||||||||||||||||
Note Warrant [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Securities sold to investors price per share | $ / shares | $ 40 | ||||||||||||||||||
Private Placement [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Stock conversion description | Series A and Series C stock conversion ratio is 1 to 2.5 common shares on a post-split basis. The Series B, B-1, D, E, F and G stock conversion ratio is 1 to 0.025 | ||||||||||||||||||
Securities sold to investors price per share | $ / shares | $ 0.50 | ||||||||||||||||||
Financing fees | $ | $ 240,250 | $ 240,250 | |||||||||||||||||
Securities sold to investors, shares | 2,700,000 | ||||||||||||||||||
Common stock of Drone Aviation Corp issued for cash, Shares | 745,000 | 745,000 | |||||||||||||||||
Purchase price of restricted common stock | $ / shares | $ 5 | $ 5 | |||||||||||||||||
Series B One Preferred Stock [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Shares of restricted common stock issued | 55,000 | ||||||||||||||||||
Sole holder of Series B-1 stock liquidated, Value | $ | $ 350,000 | ||||||||||||||||||
Preferred stock, shares outstanding | 0 | 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 | 0 | 68,731 | 0 | 68,731 | 156,231 | ||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||
Proceeds from Series F preferred stock issued for cash | $ | |||||||||||||||||||
Conversion of Series C preferred stock to common stock,Shares | |||||||||||||||||||
Conversion of Series B1 preferred stock to common stock, Shares | (68,731) | ||||||||||||||||||
Common stock of Drone Aviation Corp issued for cash, Shares | |||||||||||||||||||
Series B Preferred Stock [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Shares of series preferred stock converted | 324,671 | ||||||||||||||||||
Shares of restricted common stock issued | 8,117 | ||||||||||||||||||
Preferred stock, shares outstanding | 0 | 324,671 | 0 | 324,671 | |||||||||||||||
Preferred stock, shares issued | 0 | 324,671 | 0 | 324,671 | 324,671 | ||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||
Proceeds from Series F preferred stock issued for cash | $ | |||||||||||||||||||
Conversion of Series C preferred stock to common stock,Shares | |||||||||||||||||||
Common stock of Drone Aviation Corp issued for cash, Shares | |||||||||||||||||||
Series C Preferred Stock [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Shares of restricted common stock issued | 680,033 | ||||||||||||||||||
Preferred stock, shares outstanding | 73,387 | 345,400 | 73,387 | 345,400 | |||||||||||||||
Number Of Investors | Firms | 6 | ||||||||||||||||||
Preferred stock, shares issued | 73,387 | 345,400 | 73,387 | 345,400 | |||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||
Proceeds from Series F preferred stock issued for cash | $ | |||||||||||||||||||
Conversion of Series C preferred stock to common stock,Shares | (272,013) | (9,600) | |||||||||||||||||
Common stock of Drone Aviation Corp issued for cash, Shares | |||||||||||||||||||
Series D Preferred Stock [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Shares of restricted common stock issued | 851,250 | ||||||||||||||||||
Preferred stock, shares outstanding | 2,000,000 | 36,050,000 | 2,000,000 | 36,050,000 | |||||||||||||||
Number Of Investors | Firms | 13 | ||||||||||||||||||
Preferred stock, shares issued | 2,000,000 | 36,050,000 | 2,000,000 | 36,050,000 | |||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||
Proceeds from Series F preferred stock issued for cash | $ | |||||||||||||||||||
Common stock of Drone Aviation Corp issued for cash, Shares | 26,050,000 | ||||||||||||||||||
Series E Preferred Stock [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Shares of series preferred stock converted | 5,400,000 | ||||||||||||||||||
Shares of restricted common stock issued | 9,310 | 135,000 | |||||||||||||||||
Preferred stock, shares outstanding | 0 | 5,400,000 | 0 | 5,400,000 | |||||||||||||||
Number Of Investors | Firms | 7 | ||||||||||||||||||
Preferred stock, shares issued | 0 | 5,400,000 | 0 | 5,400,000 | |||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||
Proceeds from Series F preferred stock issued for cash | $ | |||||||||||||||||||
Exercise of warrants, percentage | 100.00% | ||||||||||||||||||
Series E Preferred Stock [Member] | Private Placement [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||||||||||||||||
Securities sold to investors, shares | 2,700,000 | ||||||||||||||||||
Additional shares issued | 70,000 | 70,000 | |||||||||||||||||
Series E Preferred Stock [Member] | Private Placement [Member] | Restricted Stock [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Securities sold to investors, shares | 182,525 | ||||||||||||||||||
Preferred stock, Series F | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Shares of restricted common stock issued | 32,525 | ||||||||||||||||||
Deemed dividend beneficial conversion feature on convertible preferred stock | $ | $ 192,558 | ||||||||||||||||||
Number of restricted common stock shares issued upon conversion | 55,017 | ||||||||||||||||||
Preferred stock, shares outstanding | 1,999,998 | 3,300,999 | 1,999,998 | 3,300,999 | |||||||||||||||
Number Of Investors | Firms | 3 | ||||||||||||||||||
Preferred stock, shares issued | 2,200,666 | 1,999,998 | 3,300,999 | 1,999,998 | 3,300,999 | ||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||
Proceeds from Series F preferred stock issued for cash | $ | $ 330 | ||||||||||||||||||
Preferred stock, Series F | Private Placement [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Shares of restricted common stock issued | 182,525 | 182,525 | |||||||||||||||||
Deemed dividend beneficial conversion feature on convertible preferred stock | $ | $ 192,558 | ||||||||||||||||||
Preferred stock, shares issued | 1,100,333 | ||||||||||||||||||
Securities sold to investors price per share | $ / shares | $ 0.75 | ||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||||||||||||||||
Proceeds from Series F preferred stock issued for cash | $ | $ 822,750 | ||||||||||||||||||
Financing fees | $ | $ 2,500 | ||||||||||||||||||
Series G Preferred Stock [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Deemed dividend beneficial conversion feature on convertible preferred stock | $ | $ 80,000 | ||||||||||||||||||
Preferred stock, shares outstanding | 2,000,000 | 0 | 2,000,000 | 0 | |||||||||||||||
Preferred stock, shares issued | 2,000,000 | 0 | 2,000,000 | 0 | |||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||
Proceeds from Series G preferred stock issued for cash, Shares | 4,000,000 | ||||||||||||||||||
Conversion of Series G preferred stock to common stock, Shares | (2,000,000) | ||||||||||||||||||
Series G Preferred Stock [Member] | Private Placement [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Shares of restricted common stock issued | 182,525 | 182,525 | |||||||||||||||||
Securities sold to investors price per share | $ / shares | $ 0.25 | ||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||||||||||||||||
Financing fees | $ | $ 14,275 | ||||||||||||||||||
Purchase price of stock | $ | $ 985,725 | ||||||||||||||||||
Common stock conversion price | $ / shares | $ 0.025 | ||||||||||||||||||
Series E Convertible Preferred Stock [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Number of restricted common stock shares issued upon conversion | 67,500 | ||||||||||||||||||
Securities sold to investors, shares | 2,700,000 | ||||||||||||||||||
Members of advisory board [Member] | |||||||||||||||||||
Preferred Stock (Textual) | |||||||||||||||||||
Shares of restricted common stock issued | 50,000 | ||||||||||||||||||
Restricted common stock vesting description | The Company issued 50,000 shares of restricted common stock, on a post-reverse split basis, with monthly vesting provisions to two members of its newly-formed Strategic Advisory Board for twelve months of service. | ||||||||||||||||||
Expense for the pro rata portion of shares | $ | $ 340,000 | $ 213,333 | $ 126,667 |
Employee Stock Options (Details
Employee Stock Options (Details) - Employee Stock Option [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Summary of assumptions used to estimate the fair value of stock options granted | |
Expected dividend yield | 0.00% |
Minimum [Member] | |
Summary of assumptions used to estimate the fair value of stock options granted | |
Expected volatility | 116.00% |
Risk-free interest rate | 0.79% |
Expected life of options | 2 years 5 months 5 days |
Maximum [Member] | |
Summary of assumptions used to estimate the fair value of stock options granted | |
Expected volatility | 131.00% |
Risk-free interest rate | 1.25% |
Expected life of options | 3 years |
Employee Stock Options (Detai45
Employee Stock Options (Details 1) - Employee Stock Option [Member] | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Number of Options | |
Outstanding - December 31, 2014 | shares | |
Exercisable - December 31, 2014 | shares | |
Granted | shares | 842,500 |
Exercised or Vested | shares | |
Cancelled or Expired | shares | 450,000 |
Outstanding - December 31, 2015 | shares | 392,500 |
Exercisable - December 31, 2015 | shares | 355,000 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, Outstanding - December 31, 2014 | $ / shares | $ 0 |
Weighted Average Exercise Price, Exercisable - December 31, 2014 | $ / shares | 0 |
Weighted Average Exercise Price, Granted | $ / shares | 7.04 |
Weighted Average Exercise Price, Exercised or Vested | $ / shares | 0 |
Weighted Average Exercise Price, Cancelled or Expired | $ / shares | 7.78 |
Weighted Average Exercise Price, Outstanding - December 31, 2015 | $ / shares | 6.19 |
Weighted Average Exercise Price, Exercisable - December 31, 2015 | $ / shares | $ 5.70 |
Contractual Life in Years, Outstanding - December 31, 2015 | 2 years 7 months 13 days |
Contractual Life in Years, Exercisable - December 31, 2015 | 2 years 6 months 18 days |
Intrinsic Value Exercisable - December 31, 2014 | $ | $ 0 |
Intrinsic Value Exercisable - December 31, 2015 | $ | $ 0 |
Employee Stock Options (Detai46
Employee Stock Options (Details Textual) | Oct. 29, 2015 | Sep. 04, 2015shares | Apr. 30, 2014shares | Dec. 31, 2015USD ($)$ / sharesshares | Jun. 03, 2014$ / pure |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reverse stock split | 1:40 reverse split | ||||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted | 842,500 | ||||
Number of options vested | 920 | ||||
Unvested options | 618 | ||||
Exercise price, granted | $ / shares | $ 7.04 | ||||
Stock option, surrendered and cancelled | 450,000 | ||||
Fair value adjustment of stock option | $ | $ 3,013,531 | ||||
Compensation expense | $ | $ 2,822,132 | ||||
Stock option unvested, surrendered and cancelled | 450,000 | ||||
Share based compensation recognized next three years | $ | $ 191,399 | ||||
Reverse stock split | 1:40 | ||||
Employee Stock Option [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Strike prices | 66.80 | ||||
Employee Stock Option [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Strike prices | 5,056 | ||||
Employees and Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted | 842,500 | ||||
Stock option, surrendered and cancelled | 250,000 | ||||
Employees and Director [Member] | Vesting One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options vested | 250,000 | ||||
Exercise price, granted | $ / shares | $ 6 | ||||
Expiration date | May 18, 2018 | ||||
Employees and Director [Member] | Vesting Two [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options vested | 105,000 | ||||
Exercise price, granted | $ / shares | $ 5 | ||||
Expiration date | Dec. 10, 2018 | ||||
Employees and Director [Member] | Vesting Three [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options vested | 250,000 | ||||
Exercise price, granted | $ / shares | $ 6 | ||||
Expiration date | Jun. 1, 2018 | ||||
Vesting period | 2 years | ||||
Director [Member] | Vesting One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options vested | 75,000 | ||||
Exercise price, granted | $ / shares | $ 10 | ||||
Expiration date | Jun. 1, 2018 | ||||
Vesting period | 2 years | ||||
Director [Member] | Vesting Two [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options vested | 125,000 | ||||
Exercise price, granted | $ / shares | $ 10 | ||||
Expiration date | Jun. 1, 2018 | ||||
Director [Member] | Vesting Three [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options vested | 37,500 | ||||
Exercise price, granted | $ / shares | $ 10.80 | ||||
Expiration date | May 4, 2019 | ||||
Vesting period | 3 years |
Warrants (Details)
Warrants (Details) - Warrant [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Class of Warrant or Right [Line Items] | |
Expected dividend yield | 0.00% |
Maximum [Member] | |
Class of Warrant or Right [Line Items] | |
Expected volatility | 121.00% |
Risk-free interest rate | 1.70% |
Expected life of warrants | 5 years |
Minimum [Member] | |
Class of Warrant or Right [Line Items] | |
Expected volatility | 116.00% |
Risk-free interest rate | 0.87% |
Expected life of warrants | 2 years 4 months 24 days |
Warrants (Details 1)
Warrants (Details 1) - Warrant [Member] | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Number of Warrants | |
Outstanding - December 31, 2014 | shares | 12,129 |
Exercisable - December 31, 2014 | shares | 12,129 |
Granted | shares | 122,500 |
Forfeited or Expired | shares | (420) |
Outstanding - December 31, 2015 | shares | 134,209 |
Exercisable - December 31, 2015 | shares | 104,209 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, Outstanding - December 31, 2014 | $ / shares | $ 206.86 |
Weighted Average Exercise Price, Exercisable - December 31, 2014 | $ / shares | 206.86 |
Weighted Average Exercise Price, Granted | $ / shares | 6.53 |
Weighted Average Exercise Price, Forfeited or Expired | $ / shares | 250.35 |
Weighted Average Exercise Price, Outstanding - December 31, 2015 | $ / shares | 23.87 |
Weighted Average Exercise Price, Exercisable - December 31, 2015 | $ / shares | $ 27.87 |
Contractual Life in Years, Outstanding - December 31, 2014 | 2 years 15 days |
Contractual Life in Years, Exercisable - December 31, 2015 | 2 years 15 days |
Contractual Life in Years, Outstanding - December 31, 2015 | 3 years 7 months 28 days |
Contractual Life in Years, Exercisable - December 31, 2015 | 4 years 4 days |
Intrinsic Value Exercisable - December 31, 2014 | $ | $ 0 |
Intrinsic Value Exercisable - December 31, 2015 | $ | $ 0 |
Warrants (Details Textual)
Warrants (Details Textual) | Oct. 29, 2015shares | Oct. 29, 2015 | Aug. 26, 2014USD ($)Firmsshares | Jul. 21, 2014USD ($)shares | Jun. 03, 2014USD ($)$ / shares$ / pureshares | Nov. 20, 2015$ / sharesshares | Oct. 29, 2015 | May. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)shares | Apr. 30, 2014$ / pureshares |
Options And Warrants [Line Items] | |||||||||||
Total warrants carried over reverse merger | 12,125 | ||||||||||
Loss on derivative liability | $ | $ 350,969 | ||||||||||
Derivative liabilities | $ | $ 0 | 0 | |||||||||
Number of shares of restricted common stock granted | 57 | ||||||||||
Warrants issued for services, shares | 42,500 | ||||||||||
Warrants issued for services, value | $ | $ 17,000 | 341,667 | |||||||||
Derivative liability written off to APIC due to warrant exercise | $ | $ 2,510,793 | ||||||||||
Common stock reverse stock split | 1:40 reverse split | ||||||||||
Drone Aviation Holding 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 | 9,310 | 135,000 | |||||||||
Warrants issued for services, shares | |||||||||||
Warrants issued for services, value | $ | |||||||||||
Number of investors | Firms | 7 | ||||||||||
Warrant [Member] | |||||||||||
Options And Warrants [Line Items] | |||||||||||
Strike prices | 202.4 | ||||||||||
Total warrants carried over reverse merger | 70,000 | 16,842 | |||||||||
Warrants, Term | 3 years | ||||||||||
Exercise price of warrants | $ / shares | $ 5 | $ 0.40 | |||||||||
Warrants expiration date | Nov. 20, 2020 | Jun. 3, 2017 | |||||||||
Number of warrants expired | 4,717 | ||||||||||
Warrants issued to purchase common stock | 42,500 | 52,500 | |||||||||
Warrants issued for services, shares | 42,500 | ||||||||||
Warrants issued for services, value | $ | $ 17,000 | ||||||||||
Derivative liability written off to APIC due to warrant exercise | $ | $ 2,510,793 | ||||||||||
Common stock reverse stock split | 1:40 the Company effected a 1-for-40 reverse split of its common stock. | ||||||||||
Fair value of warrants granted | $ | $ 347,201 | ||||||||||
Compensation expense | $ | $ 324,263 | ||||||||||
Warrant [Member] | Consultant [Member] | |||||||||||
Options And Warrants [Line Items] | |||||||||||
Exercise price of warrants | $ / shares | $ 10 | ||||||||||
Warrants expiration date | Jun. 16, 2018 | ||||||||||
Warrants issued to purchase common stock | 25,000 | ||||||||||
Warrant [Member] | Consultant one [Member] | |||||||||||
Options And Warrants [Line Items] | |||||||||||
Exercise price of warrants | $ / shares | $ 10 | ||||||||||
Warrants expiration date | Jun. 25, 2018 | ||||||||||
Warrants issued to purchase common stock | 12,500 | ||||||||||
Warrant [Member] | Consultant two [Member] | |||||||||||
Options And Warrants [Line Items] | |||||||||||
Exercise price of warrants | $ / shares | $ 5 | ||||||||||
Warrants expiration date | Dec. 10, 2018 | ||||||||||
Warrants issued to purchase common stock | 5,000 | ||||||||||
Warrant [Member] | Vendor [Member] | |||||||||||
Options And Warrants [Line Items] | |||||||||||
Exercise price of warrants | $ / shares | $ 5 | ||||||||||
Warrants expiration date | Dec. 10, 2018 | ||||||||||
Warrants issued to purchase common stock | 5,000 | ||||||||||
Warrant [Member] | Series E Preferred Stock [Member] | |||||||||||
Options And Warrants [Line Items] | |||||||||||
Exercise price of warrants | $ / shares | $ 40 | ||||||||||
Warrants issued to purchase common stock | 67,500 | ||||||||||
Maximum [Member] | Warrant [Member] | |||||||||||
Options And Warrants [Line Items] | |||||||||||
Strike prices | 662.8 | ||||||||||
Minimum [Member] | Warrant [Member] | |||||||||||
Options And Warrants [Line Items] | |||||||||||
Strike prices | 101.2 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw Materials | $ 26,358 | $ 18,944 |
Work in progress | 3,817 | 1,369 |
Finished Goods | 107,209 | $ 19,091 |
Less valuation allowance | (18,589) | |
Inventory, Net | $ 118,795 | $ 39,404 |
Prepaid Expenses (Details)
Prepaid Expenses (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expenses [Abstract] | ||
Prepaid insurance | $ 25,517 | $ 23,114 |
Prepaid services | 24,192 | 15,225 |
Prepaid rent and security deposit | 5,915 | 11,830 |
Prepaid expenses, Net | $ 55,624 | $ 50,169 |
Investment in Securities Held52
Investment in Securities Held for Resale (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment [Line Items] | |||
Loss on disposal and impairment of available-for-sale securities | $ 42,821 | ||
Net cash proceeds | $ 168,704 | ||
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 |
Oklahoma Technology Commercia53
Oklahoma Technology Commercialization Center (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | 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, 2015 | Dec. 31, 2014 |
Income Taxes [Abstract] | ||
Net operating loss carry-forwards | $ 1,434,996 | $ 497,501 |
Valuation allowance | (1,434,996) | (497,501) |
Deferred tax assets, Net | $ 0 | $ 0 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | ||
Net operating loss carry-forward | $ 4,220,577 | |
Expiration date of net operating loss carry-forward | Dec. 31, 2034 | |
Income taxes | $ 159 | $ 5,571 |
Commitments and Contingencies56
Commitments and Contingencies (Details) | Dec. 31, 2015USD ($) |
Commitments and Contingencies [Abstract] | |
Year 2,016 | $ 71,854 |
Year 2,017 | 73,619 |
Year 2,018 | 75,437 |
Year 2,019 | 77,309 |
Year 2,020 | $ 45,651 |
Commitments and Contingencies57
Commitments and Contingencies (Details Textual) | 1 Months Ended | 12 Months Ended | |
Nov. 17, 2014USD ($)ft² | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Commitments and Contingencies [Abstract] | |||
Rent expense | $ 76,492 | $ 37,557 | |
Term of lease | 60 months | ||
Area of office and manufacturing | ft² | 5,533 | ||
Recovery of defendant legal fees | $ 400,000 | ||
Operating expenses and sales tax | $ 5,915 | ||
Operating lease description | The actual commencement date was July 1, 2015 and the lease was amended to 61 months expiring July 31, 2020. | ||
Lease Monthly Cost | $ 1,437 |
Concentrations (Details)
Concentrations (Details) - Firms | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Number of customers | 2 | 1 |
Percentage of concentrations of credit risk | 100.00% | 100.00% |
Revenues [Member] | ||
Concentration Risk [Line Items] | ||
Number of customers | 2 | 4 |
Percentage of concentrations of credit risk | 71.00% | 92.00% |
Subsequent Events (Details)
Subsequent Events (Details) - shares | 2 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 04, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Subsequent Event [Line Items] | ||||
Shares of series preferred stock converted | 2,000,000 | |||
Subsequent Event [Member] | Common Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock of Drone Aviation Corp issued for cash, Shares | 335,968 | |||
Series A Preferred Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock of Drone Aviation Corp issued for cash, Shares | ||||
Series A Preferred Stock [Member] | Subsequent Event [Member] | Common Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock of Drone Aviation Corp issued for cash, Shares | 2,500 | |||
Shares of series preferred stock converted | 1,000 | |||
Series C Preferred Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock of Drone Aviation Corp issued for cash, Shares | ||||
Series C Preferred Stock [Member] | Subsequent Event [Member] | Common Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock of Drone Aviation Corp issued for cash, Shares | 183,468 | |||
Shares of series preferred stock converted | 73,387 | |||
Series D Preferred Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock of Drone Aviation Corp issued for cash, Shares | 26,050,000 | |||
Series D Preferred Stock [Member] | Subsequent Event [Member] | Common Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock of Drone Aviation Corp issued for cash, Shares | 50,000 | |||
Shares of series preferred stock converted | 2,000,000 | |||
Series E Preferred Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Shares of series preferred stock converted | 5,400,000 | |||
Series F Preferred Stock [Member] | Subsequent Event [Member] | Common Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock of Drone Aviation Corp issued for cash, Shares | 50,000 | |||
Shares of series preferred stock converted | 1,999,998 | |||
Series F Preferred Stock [Member] | Subsequent Event [Member] | Common Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock of Drone Aviation Corp issued for cash, Shares | 50,000 | |||
Shares of series preferred stock converted | 2,000,000 |