Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 26, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | VirtualScopics, Inc. | ||
Entity Central Index Key | 1307752 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Trading Symbol | VSCP | ||
Entity Common Stock, Shares Outstanding | 2,994,928 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $10,079,691 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets | ||
Cash | $4,046,599 | $7,330,630 |
Accounts receivable, net of allowance for doubtful accounts of $0 and $15,000 at December 31, 2014 and 2013, respectively | 1,814,143 | 1,725,070 |
Prepaid expenses and other current assets | 410,188 | 397,699 |
Total current assets | 6,270,930 | 9,453,399 |
Patents, net | 1,211,770 | 1,334,420 |
Property and equipment, net | 330,873 | 221,700 |
Other assets | 10,661 | 0 |
Total assets | 7,824,234 | 11,009,519 |
Current liabilities | ||
Accounts payable and accrued expenses | 1,289,099 | 846,071 |
Accrued payroll | 681,964 | 837,611 |
Unearned revenue | 670,332 | 745,028 |
Dividends payable | 335,333 | 293,333 |
Total current liabilities | 2,976,728 | 2,722,043 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock, $0.001 par value; 20,000,000 and 85,000,000 shares authorized at December 31, 2014 and 2013, respectively; issued 2,994,928 and 2,992,853 shares at December 31, 2014 and December 31, 2013, respectively; outstanding, 2,994,928 shares at December 31, 2014 and 2,991,869 shares at December 31, 2013, respectively | 2,995 | 2,992 |
Additional paid-in capital | 21,975,069 | 21,992,619 |
Accumulated deficit | -17,130,564 | -13,708,141 |
Total stockholders' equity | 4,847,506 | 8,287,476 |
Total liabilities and stockholders' equity | 7,824,234 | 11,009,519 |
Convertible Preferred Stock Series A [Member] | ||
Stockholders' Equity | ||
Convertible preferred stock | 2 | 2 |
Convertible Preferred Stock Series B [Member] | ||
Stockholders' Equity | ||
Convertible preferred stock | 1 | 1 |
Convertible Preferred Stock Series C - 1 [Member] | ||
Stockholders' Equity | ||
Convertible preferred stock | 3 | 3 |
Convertible Preferred Stock Series C - 2 [Member] | ||
Stockholders' Equity | ||
Convertible preferred stock | $0 | $0 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets [Parenthetical] (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for Doubtful Accounts Receivable | $0 | $15,000 |
Convertible preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Convertible preferred stock, shares authorized | 1,000,000 | 15,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 20,000,000 | 85,000,000 |
Common stock, shares issued | 2,994,928 | 2,992,853 |
Common stock, shares outstanding | 2,994,928 | 2,991,869 |
Convertible Preferred Stock Series A [Member] | ||
Convertible preferred stock, shares authorized | 8,400 | 8,400 |
Convertible preferred stock, shares issued | 2,165 | 2,190 |
Convertible preferred stock, shares outstanding | 2,165 | 2,190 |
Convertible preferred stock, liquidation preference (in dollars per share) | $1,000 | $1,000 |
Convertible Preferred Stock Series B [Member] | ||
Convertible preferred stock, shares authorized | 6,000 | 6,000 |
Convertible preferred stock, shares issued | 600 | 600 |
Convertible preferred stock, shares outstanding | 600 | 600 |
Convertible preferred stock, liquidation preference (in dollars per share) | $1,000 | $1,000 |
Convertible Preferred Stock Series C - 1 [Member] | ||
Convertible preferred stock, shares authorized | 3,000 | 3,000 |
Convertible preferred stock, shares issued | 3,000 | 3,000 |
Convertible preferred stock, shares outstanding | 3,000 | 3,000 |
Convertible preferred stock, liquidation preference (in dollars per share) | $1,000 | $1,000 |
Convertible Preferred Stock Series C - 2 [Member] | ||
Convertible preferred stock, shares authorized | 3,000 | 3,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Convertible preferred stock, liquidation preference (in dollars per share) | $1,000 | $1,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | $9,832,300 | $10,466,348 |
Reimbursement revenues | 620,184 | 707,703 |
Total revenues | 10,452,484 | 11,174,051 |
Cost of services | 6,470,430 | 6,047,444 |
Cost of reimbursement revenues | 620,184 | 707,703 |
Total cost of services | 7,090,614 | 6,755,147 |
Gross profit | 3,361,870 | 4,418,904 |
Operating expenses | ||
Research and development | 1,245,264 | 1,510,721 |
Sales and marketing | 1,876,041 | 1,556,257 |
General and administrative | 3,349,879 | 3,749,130 |
Depreciation and amortization | 314,249 | 366,527 |
Total operating expenses | 6,785,433 | 7,182,635 |
Operating loss | -3,423,563 | -2,763,731 |
Other income (expense) | ||
Interest income | 4,237 | 22,287 |
Other expense | -3,097 | -3,097 |
Total other income | 1,140 | 19,190 |
Net Loss | -3,422,423 | -2,744,541 |
Preferred stock dividends | 168,000 | 168,000 |
Net loss attributable to common stockholders | ($3,590,423) | ($2,912,541) |
Basic and diluted loss per common share (in dollars per share) | ($1.20) | ($0.98) |
Weighted average number of common shares outstanding Basic and diluted (in shares) | 2,993,601 | 2,981,732 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series C1 Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2012 | $10,847,290 | $2 | $1 | $3 | $2,980 | $21,807,904 | ($10,963,600) |
Balance (in shares) at Dec. 31, 2012 | 2,190 | 600 | 3,000 | 2,979,877 | |||
Amortization of stock option expense | 257,263 | 257,263 | |||||
Amortization of restricted stock units | 6,723 | 6,723 | |||||
Restricted stock units issuance | 88,741 | 12 | 88,729 | ||||
Restricted stock units issuance (in shares) | 11,992 | ||||||
Accrual of Series B preferred stock dividends based on 8% annual rate | -48,000 | -48,000 | |||||
Accrual of Series C-1 preferred stock dividends based on 4% annual rate | -120,000 | -120,000 | |||||
Net loss | -2,744,541 | -2,744,541 | |||||
Balance at Dec. 31, 2013 | 8,287,476 | 2 | 1 | 3 | 2,992 | 21,992,619 | -13,708,141 |
Balance (in shares) at Dec. 31, 2013 | 2,190 | 600 | 3,000 | 2,991,869 | |||
Amortization of stock option expense | 149,894 | 149,894 | |||||
Amortization of restricted stock units | 559 | 559 | |||||
Conversion of Series A Preferred Stock to Common Stock | 2 | -2 | |||||
Conversion of Series A Preferred Stock to Common Stock (in shares) | -25 | 2,075 | |||||
Restricted stock units issuance | 0 | 1 | -1 | ||||
Restricted stock units issuance (in shares) | 984 | ||||||
Accrual of Series B preferred stock dividends based on 8% annual rate | -48,000 | -48,000 | |||||
Accrual of Series C-1 preferred stock dividends based on 4% annual rate | -120,000 | -120,000 | |||||
Net loss | -3,422,423 | -3,422,423 | |||||
Balance at Dec. 31, 2014 | $4,847,506 | $2 | $1 | $3 | $2,995 | $21,975,069 | ($17,130,564) |
Balance (in shares) at Dec. 31, 2014 | 2,165 | 600 | 3,000 | 2,994,928 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity [Parenthetical] | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Series C-1 Preferred Stock [Member] | ||
Preferred Stock, Dividend Rate, Percentage | 4.00% | 4.00% |
Series B Preferred Stock [Member] | ||
Preferred Stock, Dividend Rate, Percentage | 8.00% | 8.00% |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | ||
Net loss | ($3,422,423) | ($2,744,541) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 314,249 | 366,527 |
Loss on the disposal of long lived assets | 0 | 16,761 |
Gain on the disposal of property and equipment | 0 | -2,089 |
Stock-based compensation | 150,453 | 352,727 |
Changes in operating assets and liabilities | ||
Accounts receivable | -89,073 | 37,437 |
Prepaid expenses and other assets | -23,150 | 45,427 |
Unearned revenue | -74,696 | 472,519 |
Accounts payable and accrued expenses | 443,028 | -26,581 |
Accrued payroll | -155,647 | 355,950 |
Total adjustments | 565,164 | 1,618,678 |
Net cash used in operating activities | -2,857,259 | -1,125,863 |
Cash flows from investing activities | ||
Purchases of property and equipment | -285,542 | -78,207 |
Proceeds from the sale of equipment | 0 | 28,441 |
Patent applications and maintenance | -15,230 | -17,548 |
Net cash used in investing activities | -300,772 | -67,314 |
Cash flows from financing activities | ||
Cash dividends on series B preferred stock | -126,000 | 0 |
Net cash used in financing activities | -126,000 | 0 |
Net decrease in cash | -3,284,031 | -1,193,177 |
Cash | ||
Beginning of year | 7,330,630 | 8,523,807 |
End of year | 4,046,599 | 7,330,630 |
Non-cash financing activities: | ||
Accrual of dividends on Series B and C-1 preferred stock | 42,000 | 168,000 |
Series A Preferred Stock [Member] | ||
Non-cash financing activities: | ||
Conversion of Series A preferred stock into common stock | $2 | $0 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Organization and Basis Of Presentation [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 - Organization and Basis of Presentation |
Nature of Business | |
The Company’s headquarters are located in Rochester, New York. The Company has created a suite of image analysis software tools and applications which are used in detecting and analyzing specific structures in medical images. The Company’s developed software provides measurement and visualization capabilities designed to improve clinical research and development. | |
Basis of Presentation | |
A Certificate of Amendment to effect a reverse stock split was approved by the Company's stockholders at its Annual Meeting of Stockholders held on August 13, 2013. The Company's stockholders granted the Board authority to effectuate a reverse stock split at a ratio of between 1-for-2 to 1-for-10. The Company’s Board of Directors subsequently approved a 1-for-10 reverse stock split of the Company’s outstanding common stock that was effected on August 21, 2013. Corresponding adjustments were made to the number of shares of common stock underlying the Company’s outstanding options, warrants, and preferred stock exercisable for or convertible into common stock and the related long-term incentive plans for such options. All share and related option information presented in these financial statements and accompanying footnotes have been retroactively adjusted to reflect the reduced number of shares resulting from this action. | |
A Certificate of Amendment to decrease the Company’s number of authorized common stock from 85,000,000 shares to 20,000,000 shares and to decrease the number of authorized and undesignated preferred stock from 15,000,000 shares to 1,000,000 shares was approved by the Company's stockholders at its Annual Meeting of Stockholders on June 17, 2014. The authorized share information presented in these consolidated financial statements and accompanying footnotes reflects such change. | |
Liquidity_and_Financial_Condit
Liquidity and Financial Condition | 12 Months Ended |
Dec. 31, 2014 | |
Liquidity and Financial Condition [Abstract] | |
Liquidity and Financial Condition [Text Block] | NOTE 2 – Liquidity and Financial Condition |
The Company had a net loss attributable to common stockholders of $3,590,423 for the year ended December 31, 2014. At December 31, 2014, the Company’s accumulated deficit amounted to $17,130,564 and the Company had working capital of $3,294,202. The Company’s future plans and growth are dependent on its ability to increase revenues and continue its business development efforts surrounding its contract award backlog. If the Company continues to incur losses and revenues do not generate from the backlog as expected, the Company may need to raise additional capital to expand its business and continue as a going concern. The Company currently anticipates that its cash and cash equivalents will be sufficient to meet its working capital requirements to continue its sales and marketing and research and development efforts for at least 12 months. If in the future our plans or assumptions change or prove to be inaccurate, the Company may need to raise additional funds through public or private debt or equity offerings financings, corporate collaborations or other means. The Company may also be required to reduce operating expenditures or investments to its infrastructure. The Company has not secured any commitment for new financing at this time, nor can it provide any assurance that other new financings will be available on commercially acceptable terms, if needed. If the Company is unable to secure additional capital, it may be required to curtail its research and development activities and take additional measures to reduce costs in order to conserve its cash. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Significant Accounting Policies [Text Block] | NOTE 3 - Summary of Significant Accounting Policies | |||||||
Principles of Consolidation | ||||||||
The accompanying consolidated financial statements include the accounts of VirtualScopics, Inc. and its wholly-owned subsidiary, VirtualScopics, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. | ||||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. Estimates included in these consolidated financial statements relate to assessing the collectability of accounts receivable, the valuation of securities underlying share-based compensation, realization of deferred tax assets, tax contingencies and any related valuation allowance, and the useful lives and potential impairment of the Company’s property and equipment and intangible assets. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the period that they are determined to be necessary. | ||||||||
Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid investments when purchased with a maturity of three months or less to be cash equivalents. At December 31, 2014 and 2013, the Company had no cash equivalents. | ||||||||
Concentration of Credit Risk | ||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash. At times, our cash may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. | ||||||||
Accounts Receivable | ||||||||
Accounts receivable are stated at estimated net realizable value. Accounts receivable are comprised of balances due from customers net of estimated allowances for uncollectible accounts, if any. In determining collectability, historical trends are evaluated and specific customer issues are reviewed to arrive at appropriate allowances, if any. | ||||||||
Patents | ||||||||
Costs incurred to acquire and file for patents, including legal costs, are capitalized as long-lived assets and amortized on a straight-line basis over the lower of the estimated useful life or legal life of the patent, which is 20 years. | ||||||||
Property and Equipment | ||||||||
Property and equipment are carried at cost less accumulated depreciation. When retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any resulting gain or loss is recognized and included in the consolidated statement of operations. | ||||||||
Expenditures for maintenance and repairs, which do not generally extend the useful life of the assets, are charged to expense as incurred. Gains or losses on disposal of property and equipment are reflected in other expense in the consolidated statement of operations in the period of disposal. | ||||||||
Depreciation is computed using the straight-line method over the following useful lives: | ||||||||
Years | ||||||||
Office/computer equipment | 5-Mar | |||||||
Furniture and fixtures | 7-May | |||||||
Software | 3 | |||||||
Leasehold improvements, which are included in property and equipment, are recorded at cost less accumulated depreciation. Depreciation on leasehold improvements is computed using the straight-line method over the shorter of their estimated useful lives or the lease term, whichever is shorter. | ||||||||
Impairment of Long-Lived Assets | ||||||||
The Company reviews long-lived assets, including intangible assets other than goodwill, for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. In connection with this review, the Company also re-evaluates the periods of depreciation and amortization for these assets. The Company assesses recoverability by determining whether the net book value of the related asset will be recovered through the projected undiscounted future cash flows of the asset. If the Company determines that the carrying value of the asset may not be recoverable, it measures any impairment based on the projected future discounted cash flows as compared to the asset’s carrying value. Through December 31, 2014, the Company has not recorded any impairment charges on its long-lived assets. | ||||||||
Revenue Recognition | ||||||||
The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when an agreement exists, services are performed, prices are fixed or determinable, and collectability is reasonably assured. Revenues are reduced for estimated discounts and other allowances, if any. | ||||||||
The Company provides advanced medical image analysis on a per analysis basis, and recognizes revenue when the image analysis is completed. Revenue related to project, data, and site management services is recognized as the services are rendered and in accordance with the terms of the contract. Consulting revenue is recognized once the services are rendered and typically charged as an hourly rate. | ||||||||
Reimbursements received and related costs incurred for out-of-pocket expenses are separately reported as reimbursement revenues and cost of reimbursement revenues, respectively, in the consolidated financial statements. | ||||||||
Income Taxes | ||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. The benefit of tax positions taken or expected to be taken in the Company’s income tax returns are recognized in the consolidated financial statements if such positions are more likely than not of being sustained. | ||||||||
Research and Development | ||||||||
Research and development expense relates to the development of new applications and processes, including improvements to existing applications. These costs are expensed as incurred. | ||||||||
Preferred Stock | ||||||||
The Company applies the accounting standards for distinguishing liabilities from equity when determining the classification and measurement of its preferred stock. Preferred shares subject to mandatory redemption are classified as liability instruments and are measured at fair value. Conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, preferred shares are classified as stockholders’ equity. | ||||||||
Convertible Instruments | ||||||||
The Company applies the accounting standards for derivatives and hedging and for distinguishing liabilities from equity when accounting for hybrid contracts that feature conversion options. The accounting standards require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria includes circumstances in which (i) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (ii) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (iii) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The derivative is subsequently marked to market at each reporting date based on current fair value, with the changes in fair value reported in results of operations. | ||||||||
Conversion options that contain variable settlement features such as provisions to adjust the conversion price upon subsequent issuances of equity or equity linked securities at exercise prices more favorable than that featured in the hybrid contract generally result in their bifurcation from the host instrument. | ||||||||
The Company accounts for convertible debt instruments when the Company has determined that the embedded conversion options should not be bifurcated from their host instruments in accordance with Accounting Standards Codification (“ASC”) 470-20 “Debt with Conversion and Other Options”. The Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt. The Company also records, when necessary, deemed dividends for the intrinsic value of the conversion options embedded in preferred stock based upon the difference between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in the preferred stock. | ||||||||
Common Stock Purchase Warrants and Other Derivative Financial Instruments | ||||||||
The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) provides a choice of net-cash settlement or settlement in the Company’s own shares (physical settlement or net-share settlement) providing that such contracts are indexed to the Company's own stock as defined in ASC 815-40 "Contracts in Entity's Own Equity" (“ASC 815-40”). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses classification of common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities or equity is required. | ||||||||
Recently Issued and Adopted Accounting Pronouncements | ||||||||
The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | ||||||||
The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | ||||||||
The FASB has issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The guidance, which is effective for annual reporting periods ending after December 15, 2016, extends the responsibility for performing the going-concern assessment to management and contains guidance on how to perform a going-concern assessment and when going-concern disclosures would be required under U.S. GAAP. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | ||||||||
Stock-Based Compensation | ||||||||
The Company accounts for share-based awards exchanged for employee services at the estimated grant date fair value of the award. The Company estimates the fair value of employee stock awards using the Black-Scholes option pricing model. The Company amortizes the fair value of employee stock options on a straight-line basis over the requisite service period of the awards. Compensation expense includes the impact of an estimate for forfeitures for all stock options. | ||||||||
The Company accounts for equity instruments issued to non-employees at their fair value on the measurement date. The measurement of stock-based compensation is subject to periodic adjustment as the underlying equity instrument vests or becomes non-forfeitable. Non-employee stock-based compensation charges are amortized over the vesting period or as earned. | ||||||||
Loss Per Share | ||||||||
Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options (using the treasury stock method) and the conversion of the Company’s convertible preferred stock and warrants (using the if-converted method). Diluted loss per share excludes the shares issuable upon the conversion of preferred stock, the exercise of stock options and warrants from the calculation of net loss per share as their effect would be antidilutive. | ||||||||
Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share consist of the following numbers of shares into which preferred stock could have been converted and shares for which outstanding options and warrants could have been exercised during the years ending December 31, 2014 and 2013: | ||||||||
2014 | 2013 | |||||||
Convertible preferred stock | 478,701 | 480,777 | ||||||
Warrants to purchase common stock | 136,132 | 233,753 | ||||||
Non-vested restricted stock awards | - | 984 | ||||||
Options to purchase common stock | 404,612 | 425,995 | ||||||
Total | 1,019,445 | 1,141,509 | ||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4 - Property and Equipment | |||||||
Property and equipment consisted of the following as of December 31: | ||||||||
2014 | 2013 | |||||||
Office/computer equipment | $ | 967,791 | $ | 876,393 | ||||
Furniture and fixtures | 293,318 | 267,939 | ||||||
Software | 629,342 | 468,226 | ||||||
Leasehold improvements | 122,318 | 114,669 | ||||||
2,012,769 | 1,727,227 | |||||||
Less: accumulated depreciation | -1,681,896 | -1,505,527 | ||||||
$ | 330,873 | $ | 221,700 | |||||
Depreciation expense amounted to $176,369 and $229,724 for the years ended December 31, 2014 and 2013, respectively. The Company disposed of and wrote-off property and equipment with an original cost of $126,277 and accumulated depreciation of $99,925 during the year ended December 31, 2013, which resulted in a net gain of $2,089 and cash proceeds of $28,441. | ||||||||
Patents
Patents | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Patents [Abstract] | |||||
Patents [Text Block] | NOTE 5 - Patents | ||||
On May 24, 2002, the Company purchased from the University of Rochester, a related party, certain patents developed by the Company’s founders and previously licensed by the Company under an Exclusive Right Agreement. The Company paid $1,500,000 and issued warrants to acquire 357,075 shares of common stock to the University of Rochester for the full right and title to the patents. The warrants were recorded at fair value which totaled $157,000. Since May 24, 2002, the Company has invested an additional $1,071,863 in connection with improving and expanding its patent portfolio. These costs consist predominately of legal and filing fees and historically been capitalized as long-lived assets. | |||||
For the years ended December 31, 2014 and 2013, the Company capitalized $15,230 and $17,548, respectively, of legal expenses and filing fees associated with the maintenance of its patents. During 2013, the Company wrote off $16,761 in legal expenses associated with pending patent applications. In addition, during the year ended December 31, 2014, the Company reviewed the remaining estimated useful lives of its patent portfolio and determined that the remaining useful lives of four of its patents held should be reduced due to the Company’s future planned use of this intellectual property. At December 31, 2014 and 2013, these four patents had a weighted average remaining useful life of 4.12 and 9.9 years, respectively, when considering the Company’s change in estimate. | |||||
Accumulated amortization on the patents amounted to $1,517,093 and $1,379,213 as of December 31, 2014 and 2013, respectively. Amortization expense for the years ended December 31, 2014 and 2013 amounted to $137,880 and $136,803, respectively. The weighted-average remaining amortization period of the Company’s complete patent portfolio is approximately 7.5 years as of December 31, 2014. The estimated future amortization of the patents is as follows: | |||||
For the Years Ending | |||||
December 31, | Amount | ||||
2015 | $ | 201,524 | |||
2016 | 171,242 | ||||
2017 | 171,242 | ||||
2018 | 158,532 | ||||
2019 | 131,485 | ||||
Thereafter | 377,745 | ||||
Total | $ | 1,211,770 | |||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Stockholders Equity Note [Abstract] | ||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | NOTE 6 – Stockholders’ Equity | |||||||||||||
Common Stock | ||||||||||||||
The Company has authorized 20,000,000 shares of common stock, par value $0.001. Each share of common stock entitles the holder to one vote. | ||||||||||||||
Preferred Stock | ||||||||||||||
The Company has authorized 1,000,000 shares of preferred stock, par value $0.001 per share, of which 8,400 are designated as Series A Convertible Preferred Stock (“Series A”), 6,000 are designated as Series B Convertible Preferred Stock (“Series B”), 3,000 are designated as Series C-1 Convertible Preferred Stock (“Series C-1”), and 3,000 are designated as Series C-2 Convertible Preferred Stock (“Series C-2”) as specified in the Certificate of Designation (the “Certificate”). | ||||||||||||||
Each share of Series A is convertible into 83.036 shares of the Company’s common stock and is senior in liquidation preference in comparison to shares of the Company’s common stock. During the year ended December 31, 2014, 25 shares of Series A Preferred Stock were converted to 2,075 shares of common stock. There were no conversions of the Company’s Series A Preferred Stock during the year ended December 31, 2013. | ||||||||||||||
Each share of Series B is convertible into 83.036 shares of the Company’s common stock and has a liquidation preference that is pari passu with the Company’s Series A and senior to the Company’s common stock. Cumulative dividends on the Series B accrue on the stated value of $1,000 per share at an annual rate of 8%, payable monthly in cash and/or shares of the Company’s common stock at the option of the Company. During the years ended December 31, 2014 and 2013, the Company accrued $48,000 of Series B dividends per year and paid cash dividends of $36,000 and $0, respectively. As of December 31, 2014 and 2013, $96,000 and $84,000 of dividends were accrued to the holders of Series B were included in accrued dividends on the consolidated balance sheet. | ||||||||||||||
Each share of Series C-1 is convertible into shares of the Company’s common stock at a conversion rate, which is determined by dividing (i) the stated value per share of $1,000, plus, if consented to by the Company, all accrued and unpaid dividends, by (ii) the conversion price of $12.043. The conversion price of the Series C Preferred Stock and exercise price of the Series C Warrants is subject to customary anti-dilution provisions. The Series C-1 Preferred Stock has a 4% cumulative dividend and is senior in liquidation preference to the existing preferred stock and common stock. The Series C-1 holders elected to receive cash dividends during 2014 and to accrue the dividends during 2013 making these dividends payable on the earlier of the liquidation of the corporation according to the Series C Certificate of Designation or upon the conversion of the Series C-1 into common stock. Subject to certain exceptions, the Series B holders are only entitled to be paid dividends, if full dividends are first paid or concurrently paid to the holders of the Series C-1 Preferred Stock. During the years ended December 31, 2014 and 2013, the Company accrued $120,000 of Series C-1 dividends per year and paid cash dividends of $90,000 and $0, respectively. As of December 31, 2014 and 2013, $239,333 and $209,333 of dividends were accrued to the holders of Series B were included in accrued dividends on the consolidated balance sheet. | ||||||||||||||
Warrants | ||||||||||||||
A summary of the warrant activity for the years ended December 31, 2014 is as follows: | ||||||||||||||
Number of | Weighted | Weighted- | Aggregate | |||||||||||
Warrants | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
Warrants outstanding at January 1, 2014 | 233,753 | 12.04 | 3.34 | $ | - | |||||||||
Expired | -97,621 | -12.04 | ||||||||||||
Warrants outstanding at December 31, 2014 | 136,132 | 12.04 | 4.25 | $ | - | |||||||||
During the year ended December 31, 2014, 97,621 of the Series B warrants expired leaving 136,132 of the Series C-1 warrants outstanding. | ||||||||||||||
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 7 – Share-Based Compensation | ||||||||||||||||
Long-Term Incentive Plans | |||||||||||||||||
As of December 31, 2014, the Company had reserved 6,542 shares of common stock for issuance under its 2005 long-term incentive plan and 690,000 shares for its 2006 long-term incentive plan. An additional 35,000 options to purchase common stock were issued to a previous CEO outside of one of the Company’s long-term incentive plans. As of December 31, 2014, the Company’s 2005 Long-Term Incentive Plan and 2006 Long-Term Incentive Plan had a total of 404,612 in stock option grants outstanding. The 2005 Long-Term Incentive Plan have been closed for additional grants. | |||||||||||||||||
In May 2007, the stockholders of the Company approved the adoption of the Company’s 2006 Stock Plan (the “Plan”). The Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to employees and for the grant of non-statutory stock options, restricted stock, and stock appreciation rights to employees, directors, and consultants. The Compensation Committee of the Company’s board of directors administers the Plan and has the authority to make awards under the Plan and establish vesting and other terms, but cannot grant stock options at less than the fair value of the Company’s common stock on the date of grant or re-price stock options previously granted. As of December 31, 2014, 272,222 stock options remained eligible for grant under the 2006 Long-Term Incentive Plan. | |||||||||||||||||
Stock options issued under the Plan are granted with an exercise price equal to no less than the market price of the Company’s stock at the date of grant and expire up to ten years from the date of grant. These options generally vest over a three or four year period. | |||||||||||||||||
Stock Options | |||||||||||||||||
The fair value of stock options granted was determined on the grant date using assumptions for risk free interest rate, the expected term, expected volatility, and expected dividend yield. The risk free interest rate is based on U.S. Treasury zero-coupon yield curve over the expected term of the option. The expected term of stock options represents the average period the stock options are expected to remain outstanding and is based on the expected term calculated using the approach prescribed by the Securities and Exchange Commission's Staff Accounting Bulletin No. 110 for “plain vanilla” options. The Company estimates its expected volatility using the trading volume of its own historical stock prices. The Company’s model includes a zero dividend yield assumption, as the Company has not historically paid nor does it anticipate paying dividends on its common stock. The Company’s model does not include a discount for post-vesting restrictions, as the Company has not issued awards with such restrictions. The periodic expense is then determined based on the valuation of the options, and at that time an estimated forfeiture rate is used to reduce the expense recorded. The Company’s estimate of pre-vesting forfeitures is primarily based on the Company’s historical experience and is adjusted to reflect actual forfeitures as the options vest. The estimated forfeiture rates used during the years ended December 31, 2014 and 2013 ranged from 12.2% to 7.1%. | |||||||||||||||||
The following assumptions were used to estimate the fair value of options granted for the years ended December 31, 2014 and 2013 using the Black-Scholes option-pricing model: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk free interest rate | 1.84 | % | 1.97 | % | |||||||||||||
Expected term (in years) | 5.93 | 6.7 | |||||||||||||||
Expected volatility | 64.45 | % | 68.22 | % | |||||||||||||
Expected dividend yield | - | - | |||||||||||||||
During the years ended December 31, 2014 and 2013, the Company granted options to employees to purchase 185,267 and 6,850 shares of common stock, respectively. Of the total amount of options granted in 2014, 112,017 were granted to executive officers of the Company. These options generally vest ratably during the first four years following their issuance and have a ten-year life. No options were exercised in 2014 and 2013. | |||||||||||||||||
A summary of the employee stock option activity for the year ended December 31, 2014 are as follows: | |||||||||||||||||
Weighted- | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Shares | Price | Term | Value | ||||||||||||||
Options outstanding at January 1, 2014 | 425,875 | 12.72 | 4.34 | $ | - | ||||||||||||
Granted | 185,267 | 4.13 | |||||||||||||||
Exercised | - | ||||||||||||||||
Forfeited | -201,668 | -10.23 | $ | 1,965 | |||||||||||||
Expired | -4,862 | -12.75 | |||||||||||||||
Options outstanding at December 31, 2014 | 404,612 | 10.03 | 6.31 | $ | - | ||||||||||||
Options exercisable at December 31, 2014 | 202,506 | 15.1 | 3.4 | $ | - | ||||||||||||
Additional information with respect to the outstanding employee stock options as of December 31, 2014 is as follows | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Weighted | Number | ||||||||||||||||
Number | Average | Weighted | Exercisable | Weighted | |||||||||||||
Outstanding at | Remaining | Average | at | Average | |||||||||||||
December 31, | Life | Exercise | December | Exercise | |||||||||||||
Exercise Prices | 2014 | (Years) | Price | 31, 2014 | Price | ||||||||||||
$ 3.88 – 4.15 | 109,017 | 9.34 | 4.07 | - | - | ||||||||||||
$ 4.16 – 4.95 | 74,400 | 9.18 | 4.25 | 5,900 | 4.8 | ||||||||||||
$ 4.96 – 11.25 | 73,739 | 4.3 | 9.11 | 63,768 | 9.54 | ||||||||||||
$ 11.26 – 13.40 | 75,924 | 4.68 | 12.24 | 66,629 | 12.31 | ||||||||||||
$ 13.41 – 41.50 | 71,532 | 2.51 | 23.74 | 66,209 | 24.16 | ||||||||||||
404,612 | 6.31 | 10.03 | 202,506 | 15.1 | |||||||||||||
The weighted-average grant-date fair value of options granted during the years ended December 31, 2014 and 2013 was $451,884 and $25,081, respectively. | |||||||||||||||||
For the years ended December 31, 2014 and 2013, the Company’s consolidated statements of operations reflect $149,894 and $257,263, respectively, of stock-based compensation expense relating to the amortization of stock options granted under its long-term incentive plans, which is allocated as follows: | |||||||||||||||||
For Years Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cost of service revenues | $ | 40,766 | $ | 50,466 | |||||||||||||
Research and development | 36,178 | 64,917 | |||||||||||||||
Sales and marketing | 10,140 | 11,101 | |||||||||||||||
General and administrative | 62,810 | 130,779 | |||||||||||||||
Total stock-based compensation | $ | 149,894 | $ | 257,263 | |||||||||||||
As of December 31, 2014, there was $366,416 of total unrecognized compensation cost related to non-vested share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 3.15 years. | |||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
A restricted stock award entitles the recipient to receive shares of unrestricted common stock upon vesting of the award and expiration of the restrictions. The fair value of each restricted stock award is determined upon granting of the shares and the related compensation expense is recognized ratably over the vesting period and charged to the operations as non-cash compensation expense. Shares contained in the unvested portion of restricted stock awards are forfeited upon termination of employment, unless otherwise agreed. The fair value of restricted stock issued under the Plan is determined based on the closing price of the Company’s common stock on the grant date. Under the provisions of the 2006 Long Term Incentive Plan, the Company may grant restricted stock to its employees, board members and consultants. During 2006, the Board of Directors Compensation Committee approved an equity based compensation structure for non-employee Board members. | |||||||||||||||||
A summary of the restricted stock award activity for the year ended December 31, 2014 is as follows: | |||||||||||||||||
Weighted | |||||||||||||||||
Number of | Average Grant | ||||||||||||||||
Units | Date Fair Value | ||||||||||||||||
Non-vested at January 1, 2014 | 984 | 7.4 | |||||||||||||||
Granted | - | - | |||||||||||||||
Vested | -984 | -7.4 | |||||||||||||||
Cancelled/Forfeited | - | - | |||||||||||||||
Non-vested at December 31, 2014 | - | $ | - | ||||||||||||||
The Company incurred $558 and $95,464 in compensation expense during the year ended December 31, 2014 and 2013, respectively, related to the restricted stock awards granted to Board members and former officers of the Company. During the year ended December 31, 2014, 984 restricted stock units vested as part of the former CFO’s consulting agreement. During 2013, the Company issued an aggregate 15,927 stock awards to the former CEO and CFO, which had a grant date fair value of $117,861 ($7.40 per share) and vest over a four year period. On August 31, 2013, 2,951 restricted stock awards were forfeited as the result of the resignation of the former CFO. On October 25, 2013, as part of the separation agreement with the former CEO, the vesting was accelerated for 11,992 shares underlying restricted stock units to the date of termination. | |||||||||||||||||
Benefit_Plan
Benefit Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 8 - Benefit Plan |
The Company has a defined contribution plan which covers all of its full-time employees. The employees’ annual contributions are limited to the maximum allowed under the Internal Revenue Code. During 2012, the Company discontinued the matching contribution and reinstated the program in 2014. The matching contribution to participants 401k plans equal to 50% of the participants’ contributions up to a maximum 3% of annual wages. The Company contributed $59,040 and $0 in 2014 and 2013 to participants accounts representing the employer contribution amount. | |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Disclosure [Text Block] | NOTE 9 - Income Taxes | |||||||
The Company has identified its federal tax return and state tax returns for New York and Pennsylvania as “major” tax jurisdictions, as defined. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s consolidated financial statements. The Company’s evaluation was performed for the tax years ended 2012 through 2014, the only periods subject to examination. The Company believes that its income tax positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. The Company does not expect its unrecognized tax benefit to change during the next 12 months. As of December 31, 2014, all of the Company’s deferred tax assets were fully reserved by a valuation allowance equal to 100% of the net deferred tax assets. The Company will continue to assess the likelihood of recognizing a portion of its deferred tax assets and will make an assessment of whether it should reduce the valuation allowance. | ||||||||
The Company has significant net operating loss and business credit carryovers which are subject to a valuation allowance due to the uncertain nature of the realization of the losses. Section 382 of the Internal Revenue Code imposes certain limitations on the utilization of net operating loss carryovers and other tax attributes after a change in control. The Company has completed a study to assess whether a change in control occurred from November 4, 2005 through December 31, 2014, in order to determine whether an “ownership change” as defined in Section 382 occurred as a result of equity transactions. The Company, after considering all available evidence, concluded that an ownership change has not occurred. An ownership change does not occur until the 5% shareholders have a cumulative ownership shift of greater than 50%. | ||||||||
The Company will recognize interest and penalties accrued related to unrecognized tax benefits as components of its income tax provision. The Company does not have any interest and penalties accrued related to unrecognized tax benefits. | ||||||||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes. Under ASC 740, deferred income taxes and liabilities are recognized based on temporary differences between the financial statement and tax basis of assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. ASC 740 requires recognition of net deferred tax assets to the extent it is more likely than not that such net assets will be realized. To the extent that the Company believes that its net deferred tax assets will not be realized, a valuation allowance must be recorded against those assets. | ||||||||
The income tax provision consists of the following: | ||||||||
2014 | 2013 | |||||||
Current | ||||||||
Federal | $ | - | $ | - | ||||
State | - | - | ||||||
- | - | |||||||
Deferred | ||||||||
Federal | -735,191 | -846,095 | ||||||
State | -89,118 | -99,926 | ||||||
Change in valuation allowance | 824,309 | 946,021 | ||||||
Total income tax provision | $ | - | $ | - | ||||
The Company has net operating loss carryforwards (“NOLs”) of approximately $15,046,000 as of December 31, 2014 that will be available to offset future taxable income. Approximately $677,000 of the NOL carryforward, if realized, will result in a benefit to be recorded in APIC. The NOLs are due to expire in 2021 through 2034. The Company has concluded that a full valuation allowance was appropriate for the NOLs at December 31, 2014 and 2013 as it is more likely than not that they will be utilized prior to their expiration. | ||||||||
The total net deferred tax asset and liabilities as of December 31, 2014 and 2013 consists of the following: | ||||||||
2014 | 2013 | |||||||
Net operating loss carryforwards | $ | 5,501,926 | $ | 4,095,519 | ||||
Property and equipment | 17,283 | - | ||||||
Intangible assets | 532,716 | 658,055 | ||||||
Accrued expenses | 140,691 | 146,249 | ||||||
Credit carryforwards | 316,651 | 287,756 | ||||||
Stock-based compensation | 461,985 | 958,607 | ||||||
Total deferred tax asset | 6,971,252 | 6,146,186 | ||||||
Deferred tax liability: | ||||||||
Property and equipment | - | -11,526 | ||||||
Subtotal | 6,971,252 | 6,134,660 | ||||||
Less: valuation allowance | -6,971,252 | -6,134,660 | ||||||
Total net deferred tax asset | $ | - | $ | - | ||||
The difference between the federal statutory and effective income tax rates for the years ended December 31, 2014 and 2013 is as follows: | ||||||||
2014 | 2013 | |||||||
Federal statutory tax rate | -34 | % | -34 | % | ||||
State and local income taxes, net of federal benefit | -2.6 | % | -3.64 | % | ||||
Stock-based compensation | 14.12 | % | 7.56 | % | ||||
Research and development credit | -0.84 | % | -4.41 | % | ||||
Other | -0.77 | % | -0.37 | % | ||||
-24.09 | % | -34.86 | % | |||||
Less: valuation allowance | 24.09 | % | 34.86 | % | ||||
Provision for income taxes | -% | -% | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | NOTE 10 - Commitments and Contingencies | ||||
Operating Leases | |||||
In July, 2007 the Company began leasing approximately 19,500 square feet of office space at our corporate headquarters in Rochester, New York. In June 2012, the Company renewed its lease for approximately 19,500 square feet of office space at the corporate headquarters in Rochester, New York. The lease term is for five years and commenced on July 1, 2012. The base annual rent under the lease is $309,075, and increases two percent (2%) per year over the term of the lease. | |||||
In May 2014, the Company entered into a lease for approximately 2,190 square feet of office space in New Hope, Pennsylvania. The lease term is for three years with a lease commencement date of June 1, 2014. The base annual rent under the lease is $54,000, and increases three percent (3%) per year over the term of the lease. | |||||
In August 2014, the Company entered into a lease agreement for certain equipment. The lease was for 36 months and expires in August 2017. The base annual rent under the lease was $5,221, with $2,176 being recognized in 2014. | |||||
Total rent expense for the years ended December 31, 2014 and 2013 was $356,320 and $322,993, respectively. | |||||
Future minimum rental commitments under non-cancelable operating leases are as follows: | |||||
For the Years Ending | |||||
December 31, | Amount | ||||
2015 | 384,950 | ||||
2016 | 393,092 | ||||
2017 | 194,192 | ||||
Total | $ | 972,234 | |||
Employment Agreements | |||||
On July 23, 2014, (the “Effective Date”), the Company entered into an employment agreement with Eric T. Converse who was appointed President and Chief Executive Officer (the “CEO Employment Agreement”). The CEO Employment Agreement begins as of the Effective Date, has an initial term of one year and will be extended automatically for one-year periods so long as Mr. Converse remains fully employed by the Company. Mr. Converse will receive an annual salary of $325,000 during the term of the CEO Employment Agreement. Mr. Converse is also eligible to receive an annual incentive bonus tied to the achievement of Company goals approved by the Compensation Committee of the Company’s Board of Directors. The Company accrued $74,202 toward the annual incentive bonus during 2014. On the Effective Date, Mr. Converse was also granted an option to purchase 87,017 shares of the Company’s common stock with a $4.22 exercise price, four year vesting period, and ten year term. If Mr. Converse remains employed by the Company on the date that is twelve months after the Effective Date, the Company will award an option to purchase an additional 87,017 shares, and if employed twenty-four months after the Effective Date, then the Company will also award an option to purchase an additional 43,510 shares. Each award is subject to the terms of the Company’s Amended and Restated 2006 Long-Term Incentive Plan. The options will vest at the rate of 25% on each anniversary of each award while Mr. Converse is employed by the Company. | |||||
The CEO Employment Agreement provides that if the Company terminates Mr. Converse’s employment without cause, then the Company is required to pay his annual salary and benefits for a period of six months. If a change in control (as defined in the CEO Employment Agreement) occurs on or before the third anniversary of the Effective Date, then the Company is required to pay Mr. Converse an amount equal to 75% of his annual salary for the year in which the change in control occurs. | |||||
On August 19, 2014 (the “Second Effective Date”), the Company entered into an employment agreement with James A. Groff, pursuant to which Mr. Groff agreed to serve as the Company’s Chief Financial Officer (the “CFO Employment Agreement”). The term of the CFO Employment Agreement begins as of the Second Effective Date, and will be extended automatically for one-year periods so long as Mr. Groff remains fully employed by the Company. Mr. Groff will receive an annual salary of $150,000 during the term of the CFO Employment Agreement. Mr. Groff is also eligible to receive an annual incentive bonus tied to the achievement of Company goals approved by the Compensation Committee of the Company’s Board of Directors. The Company accrued $25,842 toward the annual incentive bonus during 2014. On the Second Effective Date, Mr. Groff was granted an option to purchase 25,000 shares of the Company’s common stock. If Mr. Groff remains employed by the Company on the date that is twelve months after the Second Effective Date, the Company will award an option to purchase an additional 25,000 shares, and if employed twenty-four months after the Second Effective Date, then the Company will also award an option to purchase an additional 25,000 shares. Each award is subject to the terms of the Company’s Amended and Restated 2006 Long-Term Incentive Plan. The options will vest at the rate of 25% on each anniversary of each award while Mr. Groff is employed by the Company. | |||||
The CFO Employment Agreement provides that if the Company terminates Mr. Groff’s employment without cause, then the Company is required to pay his annual salary and benefits for a period of six months. If a change in control (as defined in the CFO Employment Agreement) occurs on or before the third anniversary of the Second Effective Date, then the Company is required to pay Mr. Groff an amount equal to 50% of his annual salary for the year in which the change in control occurs. | |||||
Separation Agreement | |||||
On October 25, 2013, the Company entered into a Separation, Waiver and Release Agreement (the “Separation Agreement”) with its former Chief Executive Officer, L. Jeffrey Markin. Under the terms of the Separation Agreement, Mr. Markin received monthly separation payments in the amount of $25,310 commencing on the date of the Separation Agreement and continuing until May 31, 2014, In addition, Mr. Markin received $8,213 in benefits through May 31, 2014, on terms comparable to the benefits provided for under his existing Employment Agreement with the Company dated February 24, 2009, as amended by the Amendment to Employment Agreement, dated December 28, 2012 (as amended, the “Employment Agreement”). The Employment Agreement was terminated and superseded by the Separation Agreement. Mr. Markin received a $98,136 bonus earned under the Company’s 2013 Bonus Plan. Unvested stock options, stock awards and restricted stock units granted to Mr. Markin were forfeited as of the effective date of the Separation Agreement, other than 11,992 shares underlying restricted stock units for which vesting was accelerated to the date of termination. As of December 31, 2013, there was a $20,867 receivable for the employee payroll taxes resulting from the issuance of the 11,992 shares to Mr. Markin which was reported as part of prepaid expenses and other current assets in the Company’s consolidated balance sheet. Also under the Separation Agreement, Mr. Markin provided a general release in favor of the Company and its affiliates. As of December 31, 2014 and 2013, there remained approximately $ 0 and $133,897, respectively, of severance payable which was reported as part of accrued payroll in the Company’s consolidated balance sheet. | |||||
Other Agreements | |||||
On June 26, 2014, the Company entered into an Alliance Framework Agreement (the "Framework Agreement") and Master Subcontract Agreement with IXICO Technologies Limited (“IXICO”) as part of a strategic alliance between the two companies. The Framework Agreement provides a framework under which the parties will work to provide imaging contract research services related to clinical trials of drugs and medical devices across a range of therapeutic areas and modalities. For projects awarded under the alliance, one party will generally be the lead and the other will provide imaging services as a subcontractor. This will depend upon, among other things, existing contacts and the therapeutic area of the project. Generally, VirtualScopics will be the service provider for oncology projects and IXICO will be the service provider for neuroscience projects. As part of the alliance, IXICO will use space at VirtualScopics’ new office in New Hope, Pennsylvania. | |||||
The Framework Agreement has a one-year term with automatic one year renewals. Either party may terminate the Agreement for any reason on at least 30 days’ notice. Either may also terminate for cause due to a material breach not cured within 30 days. The Framework Agreement may also be terminated immediately if an insolvency event occurs. In the event of termination, each party agrees for 120 days not to solicit any opportunities the other party brought to the alliance. Upon notice of termination, existing work orders shall continue and the parties shall generally continue to pursue any awards and proposals received prior to notice of termination. | |||||
On December 11, 2014, the Company signed a multi-year software license and support agreement with alliance partner, IXICO plc, for their proprietary imaging data and query management digital platform, TrialTracker™. Under the terms of the agreement, VirtualScopics will pay IXICO to implement and support the use of TrialTracker™ in its clinical trial business both as part of and separate to the Alliance. The terms of the agreement included a set up fee of approximately $200,000 that was incurred during 2014. Starting in 2015, there is a yearly license fee of $40,000 and a minimum support fee of $90,000 in each of the first two service years and thereafter reduced to a minimum of $25,000. | |||||
Related_Parties
Related Parties | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 11 - Related Parties |
In April 2012, the Company issued Merck Global Health Innovation Fund, LLC (a wholly-owned subsidiary of Merck & Co, Inc. (“Merck”)) 3,000 shares of Series C-1 Preferred Stock which are initially convertible into 249,107 shares of common stock and Series C-1 Warrants which are exercisable to purchase 136,132 shares of common stock. Revenues generated from Merck were $204,688 and $368,977 for the years ended December 31, 2014 and 2013, respectively. The accounts receivable balance due from Merck was $95,985 and $87,200 as of December 31, 2014 and 2013, respectively. | |
Concentration_of_Credit_Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 12 – Concentrations of Credit Risk |
The Company’s top four customers accounted for approximately 26%, 21%, 20%, and 10% of total revenue for the year ended December 31, 2014. The Company’s top three customers accounted for approximately 42%, 12%, and 11% of total revenue for the year ended December 31, 2013. | |
Three customers accounted for approximately 27%, 19%, and 18% of accounts receivable as of December 31, 2014 as compared to four customers accounted for approximately 34%, 13%, 13%, and 11% of accounts receivable as of December 31, 2013. | |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 13 – Subsequent Events |
The Company evaluates events that have occurred after the balance sheet date through date the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the consolidated financial statements. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Consolidation, Policy [Policy Text Block] | Principles of Consolidation | |||||||
The accompanying consolidated financial statements include the accounts of VirtualScopics, Inc. and its wholly-owned subsidiary, VirtualScopics, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. | ||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | |||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. Estimates included in these consolidated financial statements relate to assessing the collectability of accounts receivable, the valuation of securities underlying share-based compensation, realization of deferred tax assets, tax contingencies and any related valuation allowance, and the useful lives and potential impairment of the Company’s property and equipment and intangible assets. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the period that they are determined to be necessary. | ||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | |||||||
The Company considers all highly liquid investments when purchased with a maturity of three months or less to be cash equivalents. At December 31, 2014 and 2013, the Company had no cash equivalents. | ||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk | |||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash. At times, our cash may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. | ||||||||
Accounts Receivable [Policy Text Block] | Accounts Receivable | |||||||
Accounts receivable are stated at estimated net realizable value. Accounts receivable are comprised of balances due from customers net of estimated allowances for uncollectible accounts, if any. In determining collectability, historical trends are evaluated and specific customer issues are reviewed to arrive at appropriate allowances, if any. | ||||||||
Patents [Policy Text Block] | Patents | |||||||
Costs incurred to acquire and file for patents, including legal costs, are capitalized as long-lived assets and amortized on a straight-line basis over the lower of the estimated useful life or legal life of the patent, which is 20 years. | ||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment | |||||||
Property and equipment are carried at cost less accumulated depreciation. When retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any resulting gain or loss is recognized and included in the consolidated statement of operations. | ||||||||
Expenditures for maintenance and repairs, which do not generally extend the useful life of the assets, are charged to expense as incurred. Gains or losses on disposal of property and equipment are reflected in other expense in the consolidated statement of operations in the period of disposal. | ||||||||
Depreciation is computed using the straight-line method over the following useful lives: | ||||||||
Years | ||||||||
Office/computer equipment | 5-Mar | |||||||
Furniture and fixtures | 7-May | |||||||
Software | 3 | |||||||
Leasehold improvements, which are included in property and equipment, are recorded at cost less accumulated depreciation. Depreciation on leasehold improvements is computed using the straight-line method over the shorter of their estimated useful lives or the lease term, whichever is shorter. | ||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets | |||||||
The Company reviews long-lived assets, including intangible assets other than goodwill, for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. In connection with this review, the Company also re-evaluates the periods of depreciation and amortization for these assets. The Company assesses recoverability by determining whether the net book value of the related asset will be recovered through the projected undiscounted future cash flows of the asset. If the Company determines that the carrying value of the asset may not be recoverable, it measures any impairment based on the projected future discounted cash flows as compared to the asset’s carrying value. Through December 31, 2014, the Company has not recorded any impairment charges on its long-lived assets. | ||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | |||||||
The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when an agreement exists, services are performed, prices are fixed or determinable, and collectability is reasonably assured. Revenues are reduced for estimated discounts and other allowances, if any. | ||||||||
The Company provides advanced medical image analysis on a per analysis basis, and recognizes revenue when the image analysis is completed. Revenue related to project, data, and site management services is recognized as the services are rendered and in accordance with the terms of the contract. Consulting revenue is recognized once the services are rendered and typically charged as an hourly rate. | ||||||||
Reimbursements received and related costs incurred for out-of-pocket expenses are separately reported as reimbursement revenues and cost of reimbursement revenues, respectively, in the consolidated financial statements. | ||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes | |||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. The benefit of tax positions taken or expected to be taken in the Company’s income tax returns are recognized in the consolidated financial statements if such positions are more likely than not of being sustained. | ||||||||
Research and Development Expense, Policy [Policy Text Block] | Research and Development | |||||||
Research and development expense relates to the development of new applications and processes, including improvements to existing applications. These costs are expensed as incurred. | ||||||||
Preferred Stock Policy [Policy Text Block] | Preferred Stock | |||||||
The Company applies the accounting standards for distinguishing liabilities from equity when determining the classification and measurement of its preferred stock. Preferred shares subject to mandatory redemption are classified as liability instruments and are measured at fair value. Conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, preferred shares are classified as stockholders’ equity. | ||||||||
Convertible Instruments Policy [Policy Text Block] | Convertible Instruments | |||||||
The Company applies the accounting standards for derivatives and hedging and for distinguishing liabilities from equity when accounting for hybrid contracts that feature conversion options. The accounting standards require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria includes circumstances in which (i) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (ii) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (iii) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The derivative is subsequently marked to market at each reporting date based on current fair value, with the changes in fair value reported in results of operations. | ||||||||
Conversion options that contain variable settlement features such as provisions to adjust the conversion price upon subsequent issuances of equity or equity linked securities at exercise prices more favorable than that featured in the hybrid contract generally result in their bifurcation from the host instrument. | ||||||||
The Company accounts for convertible debt instruments when the Company has determined that the embedded conversion options should not be bifurcated from their host instruments in accordance with Accounting Standards Codification (“ASC”) 470-20 “Debt with Conversion and Other Options”. The Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt. The Company also records, when necessary, deemed dividends for the intrinsic value of the conversion options embedded in preferred stock based upon the difference between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in the preferred stock. | ||||||||
Common Stock Purchase Warrants And Other Derivative Financial Instruments Policy [Policy Text Block] | Common Stock Purchase Warrants and Other Derivative Financial Instruments | |||||||
The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) provides a choice of net-cash settlement or settlement in the Company’s own shares (physical settlement or net-share settlement) providing that such contracts are indexed to the Company's own stock as defined in ASC 815-40 "Contracts in Entity's Own Equity" (“ASC 815-40”). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses classification of common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities or equity is required. | ||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued and Adopted Accounting Pronouncements | |||||||
The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | ||||||||
The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | ||||||||
The FASB has issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The guidance, which is effective for annual reporting periods ending after December 15, 2016, extends the responsibility for performing the going-concern assessment to management and contains guidance on how to perform a going-concern assessment and when going-concern disclosures would be required under U.S. GAAP. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | ||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation | |||||||
The Company accounts for share-based awards exchanged for employee services at the estimated grant date fair value of the award. The Company estimates the fair value of employee stock awards using the Black-Scholes option pricing model. The Company amortizes the fair value of employee stock options on a straight-line basis over the requisite service period of the awards. Compensation expense includes the impact of an estimate for forfeitures for all stock options. | ||||||||
The Company accounts for equity instruments issued to non-employees at their fair value on the measurement date. The measurement of stock-based compensation is subject to periodic adjustment as the underlying equity instrument vests or becomes non-forfeitable. Non-employee stock-based compensation charges are amortized over the vesting period or as earned. | ||||||||
Earnings Per Share, Policy [Policy Text Block] | ||||||||
Loss Per Share | ||||||||
Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options (using the treasury stock method) and the conversion of the Company’s convertible preferred stock and warrants (using the if-converted method). Diluted loss per share excludes the shares issuable upon the conversion of preferred stock, the exercise of stock options and warrants from the calculation of net loss per share as their effect would be antidilutive. | ||||||||
Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share consist of the following numbers of shares into which preferred stock could have been converted and shares for which outstanding options and warrants could have been exercised during the years ending December 31, 2014 and 2013: | ||||||||
2014 | 2013 | |||||||
Convertible preferred stock | 478,701 | 480,777 | ||||||
Warrants to purchase common stock | 136,132 | 233,753 | ||||||
Non-vested restricted stock awards | - | 984 | ||||||
Options to purchase common stock | 404,612 | 425,995 | ||||||
Total | 1,019,445 | 1,141,509 | ||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share consist of the following numbers of shares into which preferred stock could have been converted and shares for which outstanding options and warrants could have been exercised during the years ending December 31, 2014 and 2013: | |||||||
2014 | 2013 | |||||||
Convertible preferred stock | 478,701 | 480,777 | ||||||
Warrants to purchase common stock | 136,132 | 233,753 | ||||||
Non-vested restricted stock awards | - | 984 | ||||||
Options to purchase common stock | 404,612 | 425,995 | ||||||
Total | 1,019,445 | 1,141,509 | ||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following as of December 31: | |||||||
2014 | 2013 | |||||||
Office/computer equipment | $ | 967,791 | $ | 876,393 | ||||
Furniture and fixtures | 293,318 | 267,939 | ||||||
Software | 629,342 | 468,226 | ||||||
Leasehold improvements | 122,318 | 114,669 | ||||||
2,012,769 | 1,727,227 | |||||||
Less: accumulated depreciation | -1,681,896 | -1,505,527 | ||||||
$ | 330,873 | $ | 221,700 | |||||
Patents_Tables
Patents (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Patents [Abstract] | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated future amortization of the patents is as follows: | ||||
For the Years Ending | |||||
December 31, | Amount | ||||
2015 | $ | 201,524 | |||
2016 | 171,242 | ||||
2017 | 171,242 | ||||
2018 | 158,532 | ||||
2019 | 131,485 | ||||
Thereafter | 377,745 | ||||
Total | $ | 1,211,770 | |||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ||||||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | A summary of the warrant activity for the years ended December 31, 2014 is as follows: | |||||||||||||
Number of | Weighted | Weighted- | Aggregate | |||||||||||
Warrants | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
Warrants outstanding at January 1, 2014 | 233,753 | 12.04 | 3.34 | $ | - | |||||||||
Expired | -97,621 | -12.04 | ||||||||||||
Warrants outstanding at December 31, 2014 | 136,132 | 12.04 | 4.25 | $ | - | |||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | The following assumptions were used to estimate the fair value of options granted for the years ended December 31, 2014 and 2013 using the Black-Scholes option-pricing model: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk free interest rate | 1.84 | % | 1.97 | % | |||||||||||||
Expected term (in years) | 5.93 | 6.7 | |||||||||||||||
Expected volatility | 64.45 | % | 68.22 | % | |||||||||||||
Expected dividend yield | - | - | |||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | A summary of the employee stock option activity for the year ended December 31, 2014 are as follows: | ||||||||||||||||
Weighted- | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Shares | Price | Term | Value | ||||||||||||||
Options outstanding at January 1, 2014 | 425,875 | 12.72 | 4.34 | $ | - | ||||||||||||
Granted | 185,267 | 4.13 | |||||||||||||||
Exercised | - | ||||||||||||||||
Forfeited | -201,668 | -10.23 | $ | 1,965 | |||||||||||||
Expired | -4,862 | -12.75 | |||||||||||||||
Options outstanding at December 31, 2014 | 404,612 | 10.03 | 6.31 | $ | - | ||||||||||||
Options exercisable at December 31, 2014 | 202,506 | 15.1 | 3.4 | $ | - | ||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Additional information with respect to the outstanding employee stock options as of December 31, 2014 is as follows | ||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Weighted | Number | ||||||||||||||||
Number | Average | Weighted | Exercisable | Weighted | |||||||||||||
Outstanding at | Remaining | Average | at | Average | |||||||||||||
December 31, | Life | Exercise | December | Exercise | |||||||||||||
Exercise Prices | 2014 | (Years) | Price | 31, 2014 | Price | ||||||||||||
$ 3.88 – 4.15 | 109,017 | 9.34 | 4.07 | - | - | ||||||||||||
$ 4.16 – 4.95 | 74,400 | 9.18 | 4.25 | 5,900 | 4.8 | ||||||||||||
$ 4.96 – 11.25 | 73,739 | 4.3 | 9.11 | 63,768 | 9.54 | ||||||||||||
$ 11.26 – 13.40 | 75,924 | 4.68 | 12.24 | 66,629 | 12.31 | ||||||||||||
$ 13.41 – 41.50 | 71,532 | 2.51 | 23.74 | 66,209 | 24.16 | ||||||||||||
404,612 | 6.31 | 10.03 | 202,506 | 15.1 | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | For the years ended December 31, 2014 and 2013, the Company’s consolidated statements of operations reflect $149,894 and $257,263, respectively, of stock-based compensation expense relating to the amortization of stock options granted under its long-term incentive plans, which is allocated as follows: | ||||||||||||||||
For Years Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cost of service revenues | $ | 40,766 | $ | 50,466 | |||||||||||||
Research and development | 36,178 | 64,917 | |||||||||||||||
Sales and marketing | 10,140 | 11,101 | |||||||||||||||
General and administrative | 62,810 | 130,779 | |||||||||||||||
Total stock-based compensation | $ | 149,894 | $ | 257,263 | |||||||||||||
Restricted Stock [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | A summary of the restricted stock award activity for the year ended December 31, 2014 is as follows: | ||||||||||||||||
Weighted | |||||||||||||||||
Number of | Average Grant | ||||||||||||||||
Units | Date Fair Value | ||||||||||||||||
Non-vested at January 1, 2014 | 984 | 7.4 | |||||||||||||||
Granted | - | - | |||||||||||||||
Vested | -984 | -7.4 | |||||||||||||||
Cancelled/Forfeited | - | - | |||||||||||||||
Non-vested at December 31, 2014 | - | $ | - | ||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax provision consists of the following: | |||||||
2014 | 2013 | |||||||
Current | ||||||||
Federal | $ | - | $ | - | ||||
State | - | - | ||||||
- | - | |||||||
Deferred | ||||||||
Federal | -735,191 | -846,095 | ||||||
State | -89,118 | -99,926 | ||||||
Change in valuation allowance | 824,309 | 946,021 | ||||||
Total income tax provision | $ | - | $ | - | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The total net deferred tax asset and liabilities as of December 31, 2014 and 2013 consists of the following: | |||||||
2014 | 2013 | |||||||
Net operating loss carryforwards | $ | 5,501,926 | $ | 4,095,519 | ||||
Property and equipment | 17,283 | - | ||||||
Intangible assets | 532,716 | 658,055 | ||||||
Accrued expenses | 140,691 | 146,249 | ||||||
Credit carryforwards | 316,651 | 287,756 | ||||||
Stock-based compensation | 461,985 | 958,607 | ||||||
Total deferred tax asset | 6,971,252 | 6,146,186 | ||||||
Deferred tax liability: | ||||||||
Property and equipment | - | -11,526 | ||||||
Subtotal | 6,971,252 | 6,134,660 | ||||||
Less: valuation allowance | -6,971,252 | -6,134,660 | ||||||
Total net deferred tax asset | $ | - | $ | - | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The difference between the federal statutory and effective income tax rates for the years ended December 31, 2014 and 2013 is as follows: | |||||||
2014 | 2013 | |||||||
Federal statutory tax rate | -34 | % | -34 | % | ||||
State and local income taxes, net of federal benefit | -2.6 | % | -3.64 | % | ||||
Stock-based compensation | 14.12 | % | 7.56 | % | ||||
Research and development credit | -0.84 | % | -4.41 | % | ||||
Other | -0.77 | % | -0.37 | % | ||||
-24.09 | % | -34.86 | % | |||||
Less: valuation allowance | 24.09 | % | 34.86 | % | ||||
Provision for income taxes | -% | -% | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum rental commitments under non-cancelable operating leases are as follows: | ||||
For the Years Ending | |||||
December 31, | Amount | ||||
2015 | 384,950 | ||||
2016 | 393,092 | ||||
2017 | 194,192 | ||||
Total | $ | 972,234 | |||
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Details Textual) | 1 Months Ended | ||
Aug. 21, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders Equity, Reverse Stock Split | 1-for-10 | ||
Common Stock, Shares Authorized | 20,000,000 | 85,000,000 | |
Preferred Stock, Shares Authorized | 1,000,000 | 15,000,000 |
Liquidity_and_Financial_Condit1
Liquidity and Financial Condition (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Working Capital | $3,294,202 | ||
Stockholders' Equity Attributable To Parent | 4,847,506 | 8,287,476 | 10,847,290 |
Retained Earnings (Accumulated Deficit) | ($17,130,564) | ($13,708,141) |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,019,445 | 1,141,509 |
Options To Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 404,612 | 425,995 |
Non-Vested Restricted Stock Awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 984 |
Warrants To Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 136,132 | 233,753 |
Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 478,701 | 480,777 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended |
Dec. 31, 2014 | |
Office/Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office/Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 7 years |
Patents [Member] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Software [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment, Gross, Total | $2,012,769 | $1,727,227 |
Less: accumulated depreciation | -1,681,896 | -1,505,527 |
Property, Plant and Equipment, Net, Total | 330,873 | 221,700 |
Software [Member] | ||
Property, Plant and Equipment, Gross, Total | 629,342 | 468,226 |
Office/Computer Equipment [Member] | ||
Property, Plant and Equipment, Gross, Total | 967,791 | 876,393 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment, Gross, Total | 293,318 | 267,939 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment, Gross, Total | $122,318 | $114,669 |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation | $176,369 | $229,724 |
Impairment of Long-Lived Assets Held-for-use | 99,925 | |
Gain (Loss) on Disposition of Assets | 0 | 2,089 |
Proceeds from Sale of Property, Plant, and Equipment | 28,441 | |
Property Plant And Equipment Cost Of Dispositions | $126,277 |
Patents_Details
Patents (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
2015 | $201,524 | |
2016 | 171,242 | |
2017 | 171,242 | |
2018 | 158,532 | |
2019 | 131,485 | |
Thereafter | 377,745 | |
Total | $1,211,770 | $1,334,420 |
Patents_Details_Textual
Patents (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | 24-May-02 | |
Payments To Acquire Intangible Assets | $15,230 | $17,548 | |
Fair Value Of Warrants | 157,000 | ||
Loss on the disposal of long lived assets | 0 | 16,761 | |
Amortization of Intangible Assets | 137,880 | 136,803 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 7 years 6 months | ||
University Of Rochester [Member] | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 357,075 | ||
Patents [Member] | |||
Payments To Acquire Intangible Assets | 1,500,000 | ||
Additional Investment | 1,071,863 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $1,517,093 | $1,379,213 | |
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Four Patents [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 4 years 1 month 13 days | 9 years 10 months 24 days |
Stockholders_Equity_Details
Stockholders' Equity (Details) (Warrant [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Warrant [Member] | ||
Outstanding, Number of Warrants - Beginning | 233,753 | |
Expired ,Number of Warrants | -97,621 | |
Outstanding, Number of Warrants - Ending | 136,132 | 233,753 |
Outstanding, Weighted Average Exercise Price - Beginning | $12.04 | |
Expired, Weighted Average Exercise Price | ($12.04) | |
Outstanding, Weighted Average Exercise Price - Ending | $12.04 | $12.04 |
Outstanding , Aggregate Intrinsic Value -Beginning | $0 | |
Outstanding, Aggregate Intrinsic Value -Ending | $0 | $0 |
Outstanding,Weighted- Average Remaining Contractual Term (in years) | 4 years 3 months | 3 years 4 months 2 days |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Convertible preferred stock, shares authorized | 1,000,000 | 15,000,000 |
Preferred Stock, Par or Stated Value Per Share | $0.00 | $0.00 |
Cash dividends on preferred stock | $126,000 | $0 |
Common Stock, Shares Authorized | 20,000,000 | 85,000,000 |
Common Stock, Par Or Stated Value Per Share | $0.00 | $0.00 |
Adjustments To Additional Paid In Capital Dividends For Series B Preferred Stock In Excess Of Retained Earnings | 48,000 | 48,000 |
Adjustments To Additional Paid In Capital Dividends For Series C One Preferred Stock In Excess Of Retained Earnings | 120,000 | 120,000 |
Series A Preferred Stock [Member] | ||
Convertible Preferred Stock, Shares Issued upon Conversion | 2,075 | |
Conversion of Stock, Shares Converted | 25 | |
Series A Convertible Preferred Stock [Member] | ||
Preferred Stock Designated During Period Shares | 8,400 | |
Stock Conversion Ratio | 83.036 | |
Series B Preferred Stock [Member] | ||
Preferred Stock Designated During Period Shares | 6,000 | |
Preferred Stock, Dividend Rate, Percentage | 8.00% | 8.00% |
Series C-1 Convertible Preferred Stock [Member] | ||
Preferred Stock Designated During Period Shares | 3,000 | |
Preferred Stock Conversion Price Per Share | $12.04 | |
Interest and Dividends Payable, Total | 239,333 | 209,333 |
Cash dividends on preferred stock | 90,000 | 0 |
Preferred Stock, Dividend Rate, Percentage | 4.00% | |
Series C-2 Convertible Preferred Stock [Member] | ||
Convertible preferred stock, shares authorized | 3,000 | 3,000 |
Preferred Stock Designated During Period Shares | 3,000 | |
Preferred Stock, Liquidation Preference Per Share | $1,000 | $1,000 |
Series B Convertible Preferred Stock [Member] | ||
Preferred Stock, Liquidation Preference Per Share | $1,000 | |
Interest and Dividends Payable, Total | 96,000 | 84,000 |
Stock Conversion Ratio | 83.036 | |
Annual Dividend Rate | 8.00% | |
Cash dividends on preferred stock | $36,000 | $0 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Risk free interest rate | 1.84% | 1.97% |
Expected term (years) | 5 years 11 months 5 days | 6 years 8 months 12 days |
Expected volatility | 64.45% | 68.22% |
Expected dividend yield | 0.00% | 0.00% |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Options outstanding - Number of Shares at January 1, 2014 | 425,875 | |
Granted - Number of Shares | 185,267 | |
Exercised - Number of Shares | 0 | |
Cancelled/Forfeited - Number of Shares | -201,668 | |
Expired - Number of Shares | -4,862 | |
Options outstanding - Number of Shares at December 31, 2014 | 404,612 | 425,875 |
Options exercisable - Number of Shares at December 31, 2014 | 202,506 | |
Beginning balance, Options outstanding - Weighted Average Exercise Price | $12.72 | |
Granted - Weighted Average Exercise Price | $4.13 | |
Cancelled/Forfeited - Weighted Average Exercise Price | ($10.23) | |
Expired - Weighted Average Exercise Price | ($12.75) | |
Ending balance, Options outstanding - Weighted Average Exercise Price | $10.03 | $12.72 |
Options exercisable - Weighted Average Exercise Price | $15.10 | |
Options outstanding - Weighted Average Remaining Contractual Term (in years) | 6 years 3 months 22 days | 4 years 4 months 2 days |
Options exercisable - Weighted Average Remaining Contractual Term (in years) | 3 years 4 months 24 days | |
Aggregate Outstanding, Intrinsic Value | $0 | $0 |
Aggregate Forfeited, Intrinsic Value | 1,965 | |
Aggregate Exercisable, Intrinsic Value | $0 |
ShareBased_Compensation_Detail2
Share-Based Compensation (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Number of Options Outstanding | 404,612 |
Options Outstanding, Weighted Average Remaining Life (Years) | 6 years 3 months 22 days |
Options Outstanding, Weighted Average Exercise Price | $10.03 |
Number of Options Exercisable | 202,506 |
Options Exercisable, Weighted Average Exercise Price | $15.10 |
Option One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Exercise Prices, Lower Range Limit | $3.88 |
Exercise Prices,Upper Range Limit | $4.15 |
Number of Options Outstanding | 109,017 |
Options Outstanding, Weighted Average Remaining Life (Years) | 9 years 4 months 2 days |
Options Outstanding, Weighted Average Exercise Price | $4.07 |
Number of Options Exercisable | 0 |
Options Exercisable, Weighted Average Exercise Price | $0 |
Option Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Exercise Prices, Lower Range Limit | $4.16 |
Exercise Prices,Upper Range Limit | $4.95 |
Number of Options Outstanding | 74,400 |
Options Outstanding, Weighted Average Remaining Life (Years) | 9 years 2 months 5 days |
Options Outstanding, Weighted Average Exercise Price | $4.25 |
Number of Options Exercisable | 5,900 |
Options Exercisable, Weighted Average Exercise Price | $4.80 |
Option Three [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Exercise Prices, Lower Range Limit | $4.96 |
Exercise Prices,Upper Range Limit | $11.25 |
Number of Options Outstanding | 73,739 |
Options Outstanding, Weighted Average Remaining Life (Years) | 4 years 3 months 18 days |
Options Outstanding, Weighted Average Exercise Price | $9.11 |
Number of Options Exercisable | 63,768 |
Options Exercisable, Weighted Average Exercise Price | $9.54 |
Option Four [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Exercise Prices, Lower Range Limit | $11.26 |
Exercise Prices,Upper Range Limit | $13.40 |
Number of Options Outstanding | 75,924 |
Options Outstanding, Weighted Average Remaining Life (Years) | 4 years 8 months 5 days |
Options Outstanding, Weighted Average Exercise Price | $12.24 |
Number of Options Exercisable | 66,629 |
Options Exercisable, Weighted Average Exercise Price | $12.31 |
Option Five [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Exercise Prices, Lower Range Limit | $13.41 |
Exercise Prices,Upper Range Limit | $41.50 |
Number of Options Outstanding | 71,532 |
Options Outstanding, Weighted Average Remaining Life (Years) | 2 years 6 months 4 days |
Options Outstanding, Weighted Average Exercise Price | $23.74 |
Number of Options Exercisable | 66,209 |
Options Exercisable, Weighted Average Exercise Price | $24.16 |
ShareBased_Compensation_Detail3
Share-Based Compensation (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based compensation | $149,894 | $257,263 |
Cost of service revenues [Member] | ||
Stock-based compensation | 40,766 | 50,466 |
Research and development [Member] | ||
Stock-based compensation | 36,178 | 64,917 |
Sales and marketing [Member] | ||
Stock-based compensation | 10,140 | 11,101 |
General and administrative [Member] | ||
Stock-based compensation | $62,810 | $130,779 |
ShareBased_Compensation_Detail4
Share-Based Compensation (Details 4) (Restricted Stock [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Number of Warrants - Beginning | 984 |
Granted | 0 |
Vested | -984 |
Cancelled Grants | 0 |
Outstanding, Number of Warrants - Ending | 0 |
Outstanding, Weighted Average Exercise Price - Beginning | $7.40 |
Granted, Weighted-Average Grant-Date Fair Value Per Share | $0 |
Vested, Weighted-Average Grant-Date Fair Value Per Share | ($7.40) |
Cancelled Grants, Weighted-Average Grant-Date Fair Value Per Share | $0 |
Outstanding, Weighted Average Exercise Price - Ending | $0 |
ShareBased_Compensation_Detail5
Share-Based Compensation (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||
Oct. 25, 2013 | Aug. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $366,416 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 1 month 24 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 404,612 | 425,875 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $185,267 | $6,850 | ||
Share based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions Forfeiture Rate | 12.20% | 7.10% | ||
Share Based Compensation Options Grants In Period Weighted Average Grant Date Fair Value | 451,884 | 25,081 | ||
Share-Based Compensation | 150,453 | 352,727 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | 2,951 | 984 | ||
Stock Issued During Period, Shares, Issued for Services | 15,927 | |||
Stock Issued During Period, Value, Issued for Services | 117,861 | |||
Share Price | $7.40 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 11,992 | |||
Ex CEO [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 35,000 | |||
Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 112,017 | |||
Restricted Stock [Member] | ||||
Share-Based Compensation | $558 | $95,464 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 272,222 | |||
2005 Long-term Incentive Plan [Member] | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 6,542 | |||
2006 Long-term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 404,612 | |||
Common Stock, Capital Shares Reserved for Future Issuance | 690,000 |
Benefit_Plan_Details_Textual
Benefit Plan (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 50.00% | |
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 3.00% | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $59,040 | $0 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Current | ||
Federal | $0 | $0 |
State | 0 | 0 |
Current Income Tax Expense (Benefit), Total | 0 | 0 |
Deferred | ||
Federal | -735,191 | -846,095 |
State | -89,118 | -99,926 |
Change in valuation allowance | 824,309 | 946,021 |
Total income tax provision | $0 | $0 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Net operating loss carryforwards | $5,501,926 | $4,095,519 |
Property and equipment | 17,283 | 0 |
Intangible assets | 532,716 | 658,055 |
Accrued expenses | 140,691 | 146,249 |
Credit carryforwards | 316,651 | 287,756 |
Stock-based compensation | 461,985 | 958,607 |
Total deferred tax asset | 6,971,252 | 6,146,186 |
Deferred tax liability: | ||
Property and equipment | 0 | -11,526 |
Subtotal | 6,971,252 | 6,134,660 |
Less: valuation allowance | -6,971,252 | -6,134,660 |
Total net deferred tax asset | $0 | $0 |
Income_Taxes_Details_2
Income Taxes (Details 2) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Federal statutory tax rate | -34.00% | -34.00% |
State and local income taxes, net of federal benefit | -2.60% | -3.64% |
Stock-based compensation | 14.12% | 7.56% |
Research and development credit | -0.84% | -4.41% |
Other | -0.77% | -0.37% |
Effective Income Tax Rate Reconciliation, Percent, Total | -24.09% | -34.86% |
Less: valuation allowance | 24.09% | 34.86% |
Provision for income taxes | 0.00% | 0.00% |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Valuation Allowance Percentage | 100.00% |
Operating Loss Carryforwards | $15,046,000 |
Description Of Ownership Change | An ownership change does not occur until the 5% shareholders have a cumulative ownership shift of greater than 50%. |
Operating Loss Carryforwards Expiration Term | expire in 2021 through 2034. |
Additional Paid-in Capital [Member] | |
Operating Loss Carryforwards | $677,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2014 |
2015 | $384,950 |
2016 | 393,092 |
2017 | 194,192 |
Total | $972,234 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
Aug. 31, 2014 | 31-May-14 | Jun. 30, 2012 | Jul. 31, 2007 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 23, 2014 | Aug. 19, 2014 | Oct. 25, 2013 | |
Leasing Space Square Feet | 2,190 | 19,500 | 19,500 | ||||||
Base Annual Rent | $54,000 | $309,075 | $5,221 | ||||||
Rent Increased Percentage | 3.00% | 2.00% | |||||||
Lease Term | 36 months | 5 years | |||||||
Base Annual Rent Recognized | 2,176 | ||||||||
Operating Leases, Rent Expense | 356,320 | 322,993 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 10 years | ||||||||
License Agreement Set Up Fee | 200,000 | ||||||||
Anual License Fee | 40,000 | ||||||||
Anual License Support Fee | 90,000 | ||||||||
Anual License Fee After Two Years | 25,000 | ||||||||
Seperation Agreement [Member] | |||||||||
Seperation Payment | 25,310 | ||||||||
Benefits from Seperation Agreement | 8,213 | ||||||||
Bonus Earned | 98,136 | ||||||||
Employee Receivables | 20,867 | ||||||||
Severance Costs Payable | 0 | 133,897 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 11,992 | ||||||||
Chief Executive Officer [Member] | |||||||||
Officers' Compensation | 325,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $4.22 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | 87,017 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Percentage | 75.00% | ||||||||
Accrued Bonuses, Current | 74,202 | ||||||||
Chief Executive Officer [Member] | Twelve months after the Effective Date [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 87,017 | ||||||||
Chief Executive Officer [Member] | Twenty-four months after the Effective Date [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 43,510 | ||||||||
Chief Financial Officer [Member] | |||||||||
Officers' Compensation | 150,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | 25,000 | ||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Percentage | 50.00% | ||||||||
Accrued Bonuses, Current | $25,842 | ||||||||
Chief Financial Officer [Member] | Twelve months after the Effective Date [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 25,000 | ||||||||
Chief Financial Officer [Member] | Twenty-four months after the Effective Date [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 25,000 |
Related_Parties_Details_Textua
Related Parties (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2012 | |
Revenue from Related Parties | $204,688 | $368,977 | |
Accounts Receivable, Related Parties | $95,985 | $87,200 | |
Common Stock [Member] | |||
Common stock issuable upon conversion of preferred stock | 249,107 | ||
Series C-1 Preferred Stock [Member] | |||
Preferred Stock and Warrant Purchase Agreement Shares Issued | 3,000 | ||
Series C-1 Warrants [Member] | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 136,132 |
Concentration_of_Credit_Risk_D
Concentration of Credit Risk (Details Textual) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Customer 1 [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk, Percentage | 26.00% | 42.00% |
Customer 1 [Member] | Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 27.00% | 34.00% |
Customer 2 [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk, Percentage | 21.00% | 12.00% |
Customer 2 [Member] | Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 19.00% | 13.00% |
Customer 3 [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk, Percentage | 20.00% | 11.00% |
Customer 3 [Member] | Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 18.00% | 13.00% |
Customer 4 [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk, Percentage | 10.00% | |
Customer 4 [Member] | Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 11.00% |