Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 11-May-15 | |
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-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheet (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash | $2,393,968 | $4,046,599 |
Accounts receivable, net | 2,097,513 | 1,814,143 |
Prepaid expenses and other current assets | 535,549 | 410,188 |
Total current assets | 5,027,030 | 6,270,930 |
Patents, net | 1,166,284 | 1,211,770 |
Property and equipment, net | 337,174 | 330,873 |
Other Assets | 8,486 | 10,661 |
Total assets | 6,538,974 | 7,824,234 |
Current liabilities | ||
Accounts payable and accrued expenses | 1,015,871 | 1,289,099 |
Accrued payroll | 414,966 | 681,964 |
Unearned revenue | 475,299 | 670,332 |
Dividends payable | 335,333 | 335,333 |
Total current liabilities | 2,241,469 | 2,976,728 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock, $0.001 par value; 20,000,000 shares authorized; issued and outstanding, 2,994,928 shares at March 31, 2015 and December 31, 2014 | 2,995 | 2,995 |
Additional paid-in capital | 21,977,738 | 21,975,069 |
Accumulated deficit | -17,683,234 | -17,130,564 |
Total stockholders' equity | 4,297,505 | 4,847,506 |
Total liabilities and stockholders' equity | 6,538,974 | 7,824,234 |
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 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheet [Parenthetical] (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Convertible preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 2,994,928 | 2,994,928 |
Common stock, shares outstanding | 2,994,928 | 2,994,928 |
Convertible Preferred Stock Series A [Member] | ||
Convertible preferred stock, shares authorized | 8,400 | 8,400 |
Convertible preferred stock, shares issued | 2,165 | 2,165 |
Convertible preferred stock, shares outstanding | 2,165 | 2,165 |
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 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statement of Operations (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues | $2,641,221 | $2,246,954 |
Reimbursement revenues | 173,221 | 106,032 |
Total revenues | 2,814,442 | 2,352,986 |
Cost of services | 1,666,644 | 1,489,079 |
Cost of reimbursement revenues | 173,221 | 106,032 |
Total cost of services | 1,839,865 | 1,595,111 |
Gross profit | 974,577 | 757,875 |
Operating expenses | ||
Research and development | 349,837 | 285,896 |
Sales and marketing | 280,397 | 345,077 |
General and administrative | 799,386 | 687,002 |
Depreciation and amortization | 96,972 | 86,502 |
Total operating expenses | 1,526,592 | 1,404,477 |
Operating loss | -552,015 | -646,602 |
Other income (expense) | ||
Other income | 259 | 1,037 |
Other expense | -914 | -808 |
Total other (expense) income | -655 | 229 |
Net loss | -552,670 | -646,373 |
Preferred stock dividends | 42,000 | 42,000 |
Net loss available to common stockholders | ($594,670) | ($688,373) |
Weighted average basic and diluted shares outstanding (in shares) | 2,994,928 | 2,991,990 |
Basic and diluted loss per share (in dollars per share) | ($0.20) | ($0.23) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities | ||
Net loss | ($552,670) | ($646,373) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 96,972 | 86,502 |
Stock-based compensation | 44,669 | 41,388 |
Changes in operating assets and liabilities | ||
Accounts receivable | -283,370 | 82,278 |
Prepaid expenses and other assets | -123,186 | -34,768 |
Accounts payable and accrued expenses | -273,228 | 112,182 |
Accrued payroll | -266,998 | -341,639 |
Unearned revenue | -195,033 | 283,959 |
Total adjustments | -1,000,174 | 229,902 |
Net cash used in operating activities | -1,552,844 | -416,471 |
Cash flows from investing activities | ||
Purchases of property and equipment | -52,882 | -28,563 |
Patent applications and maintenance | -4,905 | -6,024 |
Net cash used in investing activities | -57,787 | -34,587 |
Cash flows from financing activities | ||
Cash dividends on series B preferred stock | -42,000 | -42,000 |
Net cash used in financing activities | -42,000 | -42,000 |
Net decrease in cash | -1,652,631 | -493,058 |
Cash | ||
Beginning of period | 4,046,599 | 7,330,630 |
End of period | $2,393,968 | $6,837,572 |
Nature_of_Business_and_Basis_o
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization and Basis Of Presentation [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 - Nature of Business and Basis of Presentation |
Nature of Business | |
The headquarters of VirtualScopics. Inc. and its wholly-owned subsidiary, VirtualScopics, LLC (the “Subsidiary” and, together, the “Company”) 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 measuring specific anatomical structures and metabolic activity using medical images. The Company’s developed proprietary software provides measurement capabilities designed to improve pharmaceutical and medical device research and development and improve clinical medical image analysis. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information pursuant to article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for condensed financial statements and should be read in conjunction with the audited consolidated financial statements and notes related thereto contained in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2014. In the opinion of management, these financial statements contain all adjustments necessary for a fair presentation for and as of the end of the interim period, all of which were normal recurring adjustments. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year ending December 31, 2015. | |
Liquidity_and_Financial_Condit
Liquidity and Financial Condition | 3 Months Ended |
Mar. 31, 2015 | |
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 $552,670 for the three months ended March 31, 2015. At March 31, 2015, the Company’s accumulated deficit amounted to $17,683,234 and the Company had working capital of $2,785,561. 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 in 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 in reducing costs to conserve its cash. | |
Summary_of_Certain_Significant
Summary of Certain Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 3 - Summary of Certain Significant Accounting Policies |
Principles of Consolidation | |
The accompanying condensed consolidated financial statements include the accounts of the Company and the Subsidiary. 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. | |
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 and products have been performed or delivered, as the case may be, 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 at an hourly rate. | |
Reimbursements received and related costs incurred for out-of-pocket expenses are separately reported as revenue and cost of services, respectively, in the financial statements. | |
Income Taxes | |
In its interim financial statements, the Company follows the guidance of Accounting Standards Codification (“ASC”) 270 “Interim Reporting” and ASC 740 “Income Taxes” whereby it uses the expected annual effective tax rate in determining its interim tax provisions. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized based upon 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 and enhancements to existing software applications. These costs are expensed as incurred. | |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 4 - Stock-Based Compensation | ||||||||||
For the three months ended March 31, 2015 and 2014, the Company’s condensed consolidated statements of operations reflect stock-based compensation expense for stock options granted and restricted stock awards under its long-term incentive plans and allocated as follows: | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
Cost of service revenues | $ | 9,096 | $ | 11,041 | |||||||
Research and development | 9,053 | 9,573 | |||||||||
Sales and marketing | 3,179 | 2,691 | |||||||||
General and administrative | 23,341 | 18,083 | |||||||||
Total stock-based compensation | $ | 44,669 | $ | 41,388 | |||||||
Stock options issued under the Company’s long-term incentive plans are granted with an exercise price equal to but 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 from the date of grant. As of March 31, 2015, there was $355,403 of total unrecognized compensation cost related to non-vested share-based compensation arrangements. This cost is expected to be recognized over a remaining weighted-average vesting period of 3.08 years. | |||||||||||
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 assumption is determined using the weighted average midpoint between the vesting and expiration term for all individuals within the grant. The Company estimated its expected volatility using 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 following assumptions were used to estimate the fair value of options granted for the three months ended March 31, 2015 and 2014 using the Black-Scholes option-pricing model: | |||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
Risk free interest rate | 1.8 | % | 1.9 | % | |||||||
Expected term (years) | 6 | 5.9 | |||||||||
Expected volatility | 63.5 | % | 64.5 | % | |||||||
Expected dividend yield | - | - | |||||||||
A summary of the employee stock option activity for the three months ended March 31, 2015 is as follows: | |||||||||||
Number of | Weighted | Weighted | |||||||||
Shares | Average | Average | |||||||||
Exercise | Remaining | ||||||||||
Price | Contractual | ||||||||||
Term | |||||||||||
Options outstanding at January 1, 2015 | 404,612 | $ | 10.03 | ||||||||
Granted | 13,000 | 3.78 | |||||||||
Exercised | - | ||||||||||
Cancelled/Forfeited | -1,748 | -11.28 | |||||||||
Expired | -11,167 | -10.1 | |||||||||
Options outstanding at March 31, 2015 | 404,697 | 9.82 | 6.36 | ||||||||
Options exercisable at March 31, 2015 | 199,320 | 15.41 | 3.47 | ||||||||
The weighted-average grant-date fair value of options granted during the three months ended March 31, 2015 and 2014 was $28,924 and $2,511, respectively. | |||||||||||
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2015 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 5 - Stockholders’ Equity |
As of March 31, 2015, 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”). There were no conversions of the Company’s convertible Series A, B and C-1 preferred stock during the three months ended March 31, 2015 and 2014. | |
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. | |
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. 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. As of March 31, 2015 and December 31, 2014, there was $96,000 of accrued dividends payable to Series B stockholders. During the three months ended March 31, 2015 and 2014, cash dividends paid to Series B stockholders aggregated to $12,000. | |
Each share of Series C-1 is convertible into shares of the Company’s common stock at a conversion rate 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 Series C-1 is senior in liquidation preference in comparison to shares of the Company’s common stock and the Series A and Series B preferred stock. Cumulative dividends on the Series C accrue on the stated value of $1,000 per share at an annual rate of 4%. As of March 31, 2015 and December 31, 2014, there was $239,333 of accrued dividends payable to Series C-1 stockholders. During the three months ended March 31, 2015 and 2014, cash dividends paid to Series C-1 stockholders aggregated to $30,000. | |
Loss_Per_Share
Loss Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share [Text Block] | NOTE 5 – Loss Per Share | |||||||
Basic earnings and loss per share are computed by dividing the net income or loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings 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 earnings 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 three months ending March 31, 2015 and 2014: | ||||||||
2015 | 2014 | |||||||
Convertible preferred stock | 478,701 | 480,777 | ||||||
Warrants to purchase common stock | 136,132 | 233,753 | ||||||
Options to purchase common stock | 404,697 | 247,002 | ||||||
Total | 1,019,530 | 961,532 | ||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 6 - Income Taxes |
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. 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 does not believe it has encountered ownership changes which could significantly limit the possible utilization of such carryovers. It is not anticipated that limitations, if any, would have a material impact on the condensed consolidated balance sheet as a result of offsetting changes in the deferred tax valuation allowance. Based on all available evidence, the Company believes that its deferred tax assets should be fully reserved as of March 31, 2015 because it is still currently more likely than not that the benefits of the Company’s deferred tax assets will not be realized in future periods. 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 will recognize interest and penalties accrued related to unrecognized tax benefits as components of its income tax provision. As of March 31, 2015, the Company does not have any interest and penalties accrued related to unrecognized tax benefits. | |
Concentration_of_Credit_Risk
Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 7 - Concentration of Credit Risk |
The Company’s top three customers accounted for approximately 21%, 20%, and 18% of total revenue for the three months ended March 31, 2015. Three customers accounted for 32%, 23%, and 14% of total revenue for the three months ended March 31, 2014. | |
Five customers accounted for approximately 23%, 19%, 16%, 14%, and 11% of accounts receivable as of March 31, 2015. Three customers accounted for approximately 27%, 19%, and 18% of accounts receivable as of December 31, 2014. | |
Related_Party
Related Party | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 8 – Related Party |
In April 2012, the Company issued Merck Global Health Innovation Fund, LLC (“Merck”) 3,000 shares of Series C-1 which are 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 $98,664 and $23,115 for the three months ended March 31, 2015 and 2014, respectively. The accounts receivable balance due from Merck was $65,488 and $95,985 as of March 31, 2015 and December 31, 2014, respectively. | |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 9 - Subsequent Events |
The Company evaluates events that have occurred after the balance sheet date but before 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 condensed consolidated financial statements. | |
Summary_of_Certain_Significant1
Summary of Certain Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation |
The accompanying condensed consolidated financial statements include the accounts of the Company and the Subsidiary. 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. | |
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 and products have been performed or delivered, as the case may be, 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 at an hourly rate. | |
Reimbursements received and related costs incurred for out-of-pocket expenses are separately reported as revenue and cost of services, respectively, in the financial statements. | |
Income Tax, Policy [Policy Text Block] | Income Taxes |
In its interim financial statements, the Company follows the guidance of Accounting Standards Codification (“ASC”) 270 “Interim Reporting” and ASC 740 “Income Taxes” whereby it uses the expected annual effective tax rate in determining its interim tax provisions. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized based upon 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 and enhancements to existing software applications. These costs are expensed as incurred. | |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | For the three months ended March 31, 2015 and 2014, the Company’s condensed consolidated statements of operations reflect stock-based compensation expense for stock options granted and restricted stock awards under its long-term incentive plans and allocated as follows: | ||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
Cost of service revenues | $ | 9,096 | $ | 11,041 | |||||||
Research and development | 9,053 | 9,573 | |||||||||
Sales and marketing | 3,179 | 2,691 | |||||||||
General and administrative | 23,341 | 18,083 | |||||||||
Total stock-based compensation | $ | 44,669 | $ | 41,388 | |||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | The following assumptions were used to estimate the fair value of options granted for the three months ended March 31, 2015 and 2014 using the Black-Scholes option-pricing model: | ||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
Risk free interest rate | 1.8 | % | 1.9 | % | |||||||
Expected term (years) | 6 | 5.9 | |||||||||
Expected volatility | 63.5 | % | 64.5 | % | |||||||
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 three months ended March 31, 2015 is as follows: | ||||||||||
Number of | Weighted | Weighted | |||||||||
Shares | Average | Average | |||||||||
Exercise | Remaining | ||||||||||
Price | Contractual | ||||||||||
Term | |||||||||||
Options outstanding at January 1, 2015 | 404,612 | $ | 10.03 | ||||||||
Granted | 13,000 | 3.78 | |||||||||
Exercised | - | ||||||||||
Cancelled/Forfeited | -1,748 | -11.28 | |||||||||
Expired | -11,167 | -10.1 | |||||||||
Options outstanding at March 31, 2015 | 404,697 | 9.82 | 6.36 | ||||||||
Options exercisable at March 31, 2015 | 199,320 | 15.41 | 3.47 | ||||||||
Loss_Per_Share_Tables
Loss Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Securities that could potentially dilute earnings 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 three months ending March 31, 2015 and 2014: | |||||||
2015 | 2014 | |||||||
Convertible preferred stock | 478,701 | 480,777 | ||||||
Warrants to purchase common stock | 136,132 | 233,753 | ||||||
Options to purchase common stock | 404,697 | 247,002 | ||||||
Total | 1,019,530 | 961,532 | ||||||
Liquidity_and_Financial_Condit1
Liquidity and Financial Condition (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Working Capital | $2,785,561 | ||
Retained Earnings (Accumulated Deficit) | -17,683,234 | -17,130,564 | |
Net Income (Loss) Attributable To Parent | ($552,670) | ($646,373) |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock-based compensation | $44,669 | $41,388 |
Cost of service revenues [Member] | ||
Stock-based compensation | 9,096 | 11,041 |
Research and development [Member] | ||
Stock-based compensation | 9,053 | 9,573 |
Sales and marketing [Member] | ||
Stock-based compensation | 3,179 | 2,691 |
General and administrative [Member] | ||
Stock-based compensation | $23,341 | $18,083 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 1) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Risk free interest rate | 1.80% | 1.90% |
Expected term (years) | 6 years | 5 years 10 months 24 days |
Expected volatility | 63.50% | 64.50% |
Expected dividend yield | 0.00% | 0.00% |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Options outstanding - Number of Shares at January 1, 2015 | 404,612 |
Granted - Number of Shares | 13,000 |
Exercised - Number of Shares | 0 |
Cancelled/Forfeited - Number of Shares | -1,748 |
Expired - Number of Shares | -11,167 |
Options outstanding - Number of Shares at March 31, 2015 | 404,697 |
Options exercisable - Number of Shares at March 31, 2015 | 199,320 |
Beginning balance, Options outstanding - Weighted Average Exercise Price | $10.03 |
Granted - Weighted Average Exercise Price | $3.78 |
Cancelled/Forfeited - Weighted Average Exercise Price | ($11.28) |
Expired - Weighted Average Exercise Price | ($10.10) |
Ending balance, Options outstanding - Weighted Average Exercise Price | $9.82 |
Options exercisable - Weighted Average Exercise Price | $15.41 |
Options outstanding - Weighted Average Remaining Contractual Term (in years) | 6 years 4 months 10 days |
Options exercisable - Weighted Average Remaining Contractual Term (in years) | 3 years 5 months 19 days |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details Textual) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $355,403 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 29 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $28,924 | $2,511 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 | |
Preferred Stock, Par or Stated Value Per Share | $0.00 | $0.00 | |
Cash dividends on preferred stock | $42,000 | $42,000 | |
Series A Convertible Preferred Stock [Member] | |||
Preferred Stock Designated During Period Shares | 8,400 | ||
Stock Conversion Ratio | 83.036 | ||
Series C-1 Convertible Preferred Stock [Member] | |||
Preferred Stock Designated During Period Shares | 3,000 | ||
Preferred Stock, Liquidation Preference Per Share | $1,000 | ||
Preferred Stock Conversion Price Per Share | $12.04 | ||
Interest and Dividends Payable, Total | 239,333 | 239,333 | |
Cash dividends on preferred stock | 30,000 | 30,000 | |
Preferred Stock, Dividend Rate, Percentage | 4.00% | ||
Cumulative dividend per share | $1,000 | ||
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 Designated During Period Shares | 6,000 | ||
Preferred Stock, Liquidation Preference Per Share | $1,000 | ||
Interest and Dividends Payable, Total | 96,000 | 96,000 | |
Stock Conversion Ratio | 83.036 | ||
Annual Dividend Rate | 8.00% | ||
Cash dividends on preferred stock | $12,000 | $12,000 |
Loss_Per_Share_Details
Loss Per Share (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,019,530 | 961,532 |
Convertible preferred stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 478,701 | 480,777 |
Warrants To Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 136,132 | 233,753 |
Stock options to purchase common stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 404,697 | 247,002 |
Concentration_of_Credit_Risk_D
Concentration of Credit Risk (Details Textual) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Customer 1 [Member] | |||
Entity-Wide Accounts Receivable, Major Customer, Percentage | 23.00% | 27.00% | |
Concentration Risk, Percentage | 21.00% | 32.00% | |
Customer 2 [Member] | |||
Entity-Wide Accounts Receivable, Major Customer, Percentage | 19.00% | 19.00% | |
Concentration Risk, Percentage | 20.00% | 23.00% | |
Customer 3 [Member] | |||
Entity-Wide Accounts Receivable, Major Customer, Percentage | 16.00% | 18.00% | |
Concentration Risk, Percentage | 18.00% | 14.00% | |
Customer 4 [Member] | |||
Entity-Wide Accounts Receivable, Major Customer, Percentage | 14.00% | ||
Customer 5 [Member] | |||
Entity-Wide Accounts Receivable, Major Customer, Percentage | 11.00% |
Related_Party_Details_Textual
Related Party (Details Textual) (USD $) | 3 Months Ended | 1 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Apr. 30, 2012 | Dec. 31, 2014 | |
Revenue from Related Parties | $98,664 | $23,115 | ||
Accounts Receivable, Related Parties | $65,488 | $95,985 | ||
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] | ||||
Preferred Stock and Warrant Purchase Agreement, Warrants Issued To Acquire Common Stock Shares, Number | 136,132 |