Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 13, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'Akers Biosciences Inc | ' |
Entity Central Index Key | '0001321834 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'AKER | ' |
Entity Common Stock, Shares Outstanding | ' | 4,954,837 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Current Assets | ' | ' |
Cash | $642,515 | $103,634 |
Marketable Securities | 10,206,992 | 0 |
Trade Receivables (net) | 1,076,530 | 118,404 |
Trade Receivables - Related Party | 1,475,767 | 1,209,388 |
Other Receivables | 60,117 | 748,962 |
Inventories (net) | 784,900 | 1,025,104 |
Other Current Assets | 66,128 | 163,890 |
Total Current Assets | 14,312,949 | 3,369,382 |
Non-Current Assets | ' | ' |
Property, plant and equipment, net | 224,715 | 267,321 |
Intangible assets, net | 2,240,707 | 2,434,637 |
Other Assets | 4,282 | 4,282 |
Total Non-Current Assets | 2,469,704 | 2,706,240 |
Total Assets | 16,782,653 | 6,075,622 |
Current Liabilities | ' | ' |
Trade and Other Payables | 666,055 | 1,000,413 |
Trade and Other Payables - Related Party | 0 | 6,586 |
Short-Term Notes Payable - Related Party | 0 | 307,500 |
Deferred Revenue - Related Party | 333,333 | 333,333 |
Total Current Liabilities | 999,388 | 1,647,832 |
Non-Current Liabilities | ' | ' |
Deferred Revenue - Related Party | 55,556 | 305,556 |
Total Non-Current Liabilities | 55,556 | 305,556 |
Total Liabilities | 1,054,944 | 1,953,388 |
EQUITY | ' | ' |
Convertible Preferred Stock, No par value, 50,000,000 shares authorized, no shares issued and outstanding as of September 30, 2014 and December 31, 2013 | 0 | 0 |
Common Stock, No par value, 500,000,000 shares authorized, 4,954,837 and 2,167,837 issued and outstanding as of September 30, 2014 and December 31, 2013 | 99,691,096 | 85,843,360 |
Accumulated Deficit | -83,951,834 | -81,721,126 |
Accumulated Comprehensive Gains/(Losses) | -11,553 | 0 |
Total Equity | 15,727,709 | 4,122,234 |
Total Liabilities and Equity | $16,782,653 | $6,075,622 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Preferred Stock, No Par Value | $0 | $0 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, No Par Value | $0 | $0 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 4,954,837 | 2,167,837 |
Common Stock, Shares, Outstanding | 4,954,837 | 2,167,837 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenues: | ' | ' | ' | ' |
Product Revenue | $359,980 | $261,376 | $1,954,010 | $1,005,037 |
Product Revenue - Related party | 0 | 0 | 766,379 | 1,551,340 |
License Revenue | 10,000 | 0 | 10,000 | 200,000 |
License Revenue - Related party | 83,333 | 83,333 | 250,000 | 250,000 |
Total Revenue | 453,313 | 344,709 | 2,980,389 | 3,006,377 |
Cost of Sales: | ' | ' | ' | ' |
Product Cost of Sales | -162,145 | -94,036 | -907,876 | -1,503,303 |
Gross Profit | 291,168 | 250,673 | 2,072,513 | 1,503,074 |
Administrative Expenses | 826,756 | 270,111 | 2,302,483 | 752,126 |
Administrative Expenses - Related parties | 0 | 100,626 | 195,002 | 294,300 |
Sales and Marketing Expenses | 358,650 | 126,624 | 966,357 | 536,631 |
Research and Development Expenses | 183,886 | 233,848 | 686,376 | 755,981 |
Amortization of Non-Current Assets | 64,643 | 64,643 | 193,929 | 193,929 |
Loss from Operations | -1,142,767 | -545,179 | -2,271,634 | -1,029,893 |
Other (Income)/Expenses | ' | ' | ' | ' |
Gain on sale of equity investment - Related party | 0 | 0 | 0 | -99,710 |
Foreign Currency Transaction (Income)/Expense | 1,022 | -809 | -2,874 | -723 |
Gain from demutualization of insurance carrier | 0 | 0 | -4,669 | -91,286 |
Interest and Dividend Income | -19,469 | 0 | -49,176 | -1,054 |
Other Income | 0 | 0 | 0 | -91,905 |
Total Other Income | -18,447 | -809 | -56,719 | -284,678 |
Loss Before Income Taxes | -1,124,320 | -544,370 | -2,214,915 | -745,215 |
Income Tax Benefit | 0 | 0 | 0 | 0 |
Preferred Stock Dividend | 0 | 0 | -15,793 | 0 |
Net Loss Attributable to Common Stockholders | -1,124,320 | -544,370 | -2,230,708 | -745,215 |
Other Comprehensive Income/(Loss) | ' | ' | ' | ' |
Unrealized Gains/(Losses) on Marketable Securities | -8,004 | 0 | -11,553 | 0 |
Total Other Comprehensive Income/(Loss) | -8,004 | 0 | -11,553 | 0 |
Comprehensive Loss | ($1,132,324) | ($544,370) | ($2,242,261) | ($745,215) |
Basic & diluted loss per common share | ($0.23) | ($0.30) | ($0.48) | ($0.50) |
Weighted average basic & diluted common shares outstanding | 4,924,837 | 1,791,768 | 4,675,200 | 1,481,822 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Changes in Stockholder's Equity (USD $) | Total | Common Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance Beginning at Dec. 31, 2013 | $4,122,234 | $85,843,360 | ($81,721,126) | $0 |
Balance Beginning (shares) at Dec. 31, 2013 | ' | 2,167,837 | ' | ' |
Net loss for the period | -2,214,915 | 0 | -2,214,915 | 0 |
Dividends paid on Series A Convertible Preferred Stock | -15,793 | 0 | -15,793 | 0 |
Initial public offering, net of offering costs of $1,897,164 | 13,101,336 | 13,101,336 | 0 | 0 |
Initial public offering, net of offering costs of $1,897,164 (shares) | ' | 2,727,000 | ' | ' |
Issuance of Non-Qualified Stock Options for Directors & Officers | 357,276 | 357,276 | 0 | 0 |
Issuance of Non-Qualified Stock Options for Key Employees | 192,324 | 192,324 | 0 | 0 |
Issuance of Restricted Common Shares for Services | 196,800 | 196,800 | 0 | 0 |
Issuance of Restricted Common Shares for Services(shares) | ' | 60,000 | ' | ' |
Unrealized Gains/(Losses) on Marketable Securities | -11,553 | 0 | 0 | -11,553 |
Balance Ending at Sep. 30, 2014 | $15,727,709 | $99,691,096 | ($83,951,834) | ($11,553) |
Balance Ending (shares) at Sep. 30, 2014 | ' | 4,954,837 | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Changes in Stockholder's Equity (Parenthetical) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Offering costs | $1,897,164 |
Condensed_Consolidated_Cash_Fl
Condensed Consolidated Cash Flow Statements (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities | ' | ' |
Net loss for the period | ($2,214,915) | ($745,215) |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' |
Accrued interest and dividends on marketable securities | -11,935 | 0 |
Depreciation and amortization | 261,523 | 265,799 |
Gain from demutualization of insurer | -4,669 | -91,286 |
Gain on sale of equity investment | 0 | -99,710 |
Non-cash share based compensation | 549,600 | 0 |
Non-cash share based payment for services | 196,800 | 0 |
Reversal of old trade payables | 0 | -91,905 |
Changes in assets and liabilities | ' | ' |
(Increase)/decrease in trade receivables | -958,126 | 27,880 |
Increase in trade receivables - related party | -266,379 | -1,031,375 |
Increase in other receivables | -56,179 | -21,916 |
Decrease in license fees receivable - related party | 0 | 450,000 |
(Increase)/Decrease in inventories | 240,204 | -97,179 |
(Increase)/Decrease in other assets | 97,762 | -45,278 |
Decrease in trade and other payables | -334,358 | -22,002 |
Decrease in other payables - related party | -6,586 | -9,234 |
Decrease in legal settlement liabilities | 0 | -106,924 |
Decrease in deferred revenue - related party | -250,000 | -250,000 |
Net cash used in operating activities | -2,757,258 | -1,868,345 |
Cash flows from investing activities | ' | ' |
Purchases of property, plant and equipment | -24,987 | -99,726 |
Purchases of marketable securities | -12,537,202 | 0 |
Proceeds from demutualization of insurance carrier | 4,669 | 91,286 |
Proceeds from sale of equity investment | 0 | 100,000 |
Proceeds from sale of marketable securities | 2,330,592 | 0 |
Net cash (used in)/provided by investing activities | -10,226,928 | 91,560 |
Cash flows from financing activities | ' | ' |
Proceeds from note receivable - related party for Series A Convertible Preferred Stock | 0 | 225,000 |
Payment of short-term note payable - related party | -307,500 | 0 |
Proceeds from other receivable for London Private Placement | 745,024 | 0 |
Proceeds from issuance of common shares | 0 | 1,600,000 |
Net proceeds from issuance of common stock in initial public offering | 13,101,336 | 0 |
Dividend distribution on Series A Convertible Preferred Stock | -15,793 | 0 |
Net cash provided by financing activities | 13,523,067 | 1,825,000 |
Net increase in cash | 538,881 | 48,215 |
Cash at beginning of period | 103,634 | 633,022 |
Cash at end of period | 642,515 | 681,237 |
Supplemental Schedule of Non-Cash Financing and Investing Activities | ' | ' |
Unrealized losses on marketable securities | ($11,553) | $0 |
Nature_of_Business
Nature of Business | 9 Months Ended | ||
Sep. 30, 2014 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||
Nature of Business | ' | ||
Note 1 – Nature of Business | |||
(a) | Reporting Entity | ||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all the information and disclosures required by GAAP for complete financial statements. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and notes for the year ended December 31, 2013 included in Form 10-K of Akers Biosciences, Inc. (“the Company”). | |||
The consolidated financial statements include two dormant subsidiaries, Akers Acquisition Sub, Inc. and Bout Time Marketing Corporation. All material intercompany balances have been eliminated upon consolidation. | |||
(b) | Nature of Business | ||
The Company commenced research and development operations in September 1989, and until 2005 had devoted substantially all its efforts to establishing the new business. | |||
The Company’s primary focus is the development and sale of disposable diagnostic testing devices that can be performed in minutes, to facilitate time sensitive therapeutic decisions. The Company’s main products are a disposable breathalyzer test that measures the blood alcohol content of the user, a rapid test detecting the antibody causing an allergic reaction to Heparin and a disposable breathalyzer test that measures Free Radical activity in the human body. When the Company enters into an agreement with a new distributor it requires an upfront licensing fee to be paid for the right to sell the Company’s products in specific markets. | |||
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 9 Months Ended | ||
Sep. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Basis of Presentation and Significant Accounting Policies | ' | ||
Note 2 - Basis of Presentation and Significant Accounting Policies | |||
(a) | Basis of Presentation | ||
The consolidated financial statements of the Company are prepared in U.S. Dollars and in accordance with accounting principles generally accepted in the United States of America (US GAAP). | |||
The Company is an emerging growth company as the term is used in The Jumpstart Our Business Startups Act enacted on April 5, 2012 and has elected to comply with certain reduced public company reporting requirements. | |||
(b) | Use of Estimates | ||
The preparation of financial statements in conformity with US GAAP requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the following notes for revenue recognition, allowances for doubtful accounts, inventory write-downs, impairment of intangible assets and valuation of share based payments. | |||
(c) | Foreign Currency | ||
These consolidated financial statements are presented in U.S. Dollars, which is the Company’s functional currency. All financial information presented in U.S. Dollars has been rounded to the nearest dollar. Foreign Currency Transaction Gains or Losses, resulting from loans and cash balances denominated in Foreign Currencies, are recorded in the statement of operations. | |||
(d) | Comprehensive Income/(Loss) | ||
The Company follows Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) 220 in reporting comprehensive income (loss). Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. | |||
(e) | Cash and Cash Equivalents | ||
Cash and cash equivalents comprise cash balances. The Company considers all highly liquid investments, which include short-term bank deposits (up to 3 months from date of deposit) that are not restricted as to withdrawal date or use, to be cash equivalents. Bank overdrafts are shown as part of trade and other payables in the balance sheet. | |||
(f) | Fair Value of Financial Instruments | ||
The Company’s financial instruments consist of cash, receivables and trade and other payables. The carrying value of cash, trade receivables and trade and other payables approximate their fair value because of their short maturities. | |||
(g) | Fair Value Measurement | ||
The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the FASB has established three levels of inputs that may be used to measure fair value: | |||
Level 1 – Quoted prices in active markets for identical assets or liabilities. | |||
Level 2 – Observable inputs other Level 1 inputs in active markets that are observable either directly or indirectly. | |||
Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. | |||
The Company’s valuation techniques used to measure the fair value of money market funds and certain marketable equity securities were derived from quoted prices in active markets for identical assets or liabilities. | |||
In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has not elected the fair value option for any eligible financial instruments. | |||
(h) | Trade Receivables, Trade Receivables – Related Party and Allowance for Doubtful Accounts | ||
The carrying amounts of current trade receivables is stated at cost, net of allowance for doubtful accounts and approximate their fair value given their short term nature. | |||
The normal credit terms extended to customers ranges between 30 and 90 days. The Company reviews all receivables that exceed terms and establishes an allowance for doubtful accounts based on management’s assessment of the collectability of trade and other receivables. A considerable amount of judgment is required in assessing the amount of allowance. The Company considers the historical level of credit losses, makes judgments about the credit worthiness of each customer based on ongoing credit evaluations and monitors current economic trends that might impact the level of credit losses in the future. | |||
As of September 30, 2014 and December 31, 2013, allowances for doubtful accounts were $- and $-. Allowances charged for doubtful accounts amounted to $- for the three and nine months ended September 30, 2014 and 2013. | |||
(i) | Concentration of Credit Risk | ||
The Company is exposed to credit risk in the normal course of business primarily related to trade receivables and cash and cash equivalents. | |||
Substantially all of the Company’s cash are maintained with Fulton Bank of New Jersey and Bank of America. The funds are insured by the Federal Deposit Insurance Corporation up to a maximum of $250,000 per account or instrument, but are otherwise unprotected. The Company placed $606,988 with Fulton Bank of New Jersey, $31,487 with Bank of America and $4,040 PayPal as of September 30, 2014. The Company placed $855 with Fulton Bank of New Jersey, $98,563 with Bank of America and $4,216 with PayPal as of December 31, 2013. | |||
Concentration of credit risk with respect to trade receivables exists as approximately 82% of its revenue was generated by three customers for the nine months ended September 30, 2014. These customers accounted for 96% of trade receivables as of September 30, 2014. | |||
Concentration of credit risk with respect to trade receivables exists as approximately 85% of its revenue was generated by three customers for the year ended December 31, 2013, respectively. These customers accounted for 97% of trade receivables as of December 31, 2013. In order to limit such risks, the Company performs ongoing credit evaluations of its customers’ financial condition. | |||
(j) | Inventories | ||
Inventories are measured at the lower of cost or market. The cost of inventories is based on the weighted-average principle, and includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, costs include an appropriate share of production overheads based on normal operating capacity. | |||
(k) | Property, Plant and Equipment | ||
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Costs include expenditures that are directly attributable to the acquisition of the asset. | |||
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized within “other income” in the statement of operations. | |||
Depreciation is recognized in the statement of operations on the accelerated basis over the estimated useful lives of the property, plant and equipment. Leased assets are depreciated over the shorter of the lease term or their useful lives. | |||
The estimated useful lives for the current and comparative periods are as follows: | |||
Useful Life | |||
(in years) | |||
Plant and equipment | 12-May | ||
Furniture and fixtures | 10-May | ||
Computer equipment & software | 5-Mar | ||
Depreciation methods, useful lives and residual values are reviewed at each reporting date. | |||
(l) | Intangible Assets | ||
(i) | Patents and Trade Secrets | ||
The Company has developed or acquired several diagnostic tests that can detect the presence of various substances in a person’s breath, blood, urine and saliva. Propriety protection for the Company’s products, technology and process is important to its competitive position. As of September 30, 2014, the Company has eleven patents from the United States Patent Office in effect (7,896,167, 8,097,171, 7,285,246, 7,837,936, 8,003,061, 8,425,859, 5,565,366, 5,827,749, D691,056, D691,057 and D691,058). Other patents are in effect in Australia through the Design Registry (348,310, 348,311 and 348,312), the Community Trade Mark in the European Union ((OHIM) 002216895-0001, 002216895-0002 and 002216895-0003) and in Japan (4,885,134 and 4,931,821). Patents are in the national phase of prosecution in many Patent Cooperation Treaty participating countries. Additional proprietary technology consists of numerous different inventions. The Company intends to file additional patent applications, where appropriate, relating to new products, technologies and their use in the U.S., European and Asian markets. Management intends to protect all other intellectual property (e.g. copyrights, trademarks and trade secrets) using all legal remedies available to the Company. | |||
(ii) | Patent Costs | ||
Costs associated with applying for patents are capitalized as patent costs. Once the patents are approved, the respective costs are amortized over their estimated useful lives (maximum of 17 years) on a straight-line basis. Patent pending costs for patents that are not approved are charged to operations the year the patent is rejected. | |||
(iii) | In addition, patents may be purchased from third parties. The costs of acquiring the patent are capitalized as patent costs if it represents a future economic benefit to the Company. Once a patent is acquired it is amortized over its remaining useful life. | ||
(iv) | Other Intangible Assets | ||
Other intangible assets that are acquired by the Company, which have definite useful lives, are measured at cost less accumulated amortization and accumulated impairment losses. | |||
(v) | |||
Amortization | |||
Amortization is recognized on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. The estimated useful lives for the current and comparative periods are as follows: | |||
Useful Life | |||
(in years) | |||
Patents and trademarks | 17-Dec | ||
Customer lists | 5 | ||
(m) | Recoverability of Long-lived Assets | ||
In accordance with FASB ASC 360-10-35 “Impairment or Disposal of Long-lived Assets”, long-lived assets to be held and used are analyzed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable or that the useful lives of those assets are no longer appropriate. The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible impairment. No such events and circumstances have occurred during the nine months ended September 30, 2014 and 2013. | |||
The Company determines the existence of such impairment by measuring the expected future cash flows (undiscounted and without interest charges) and comparing such amount to the carrying amount of the assets. An impairment loss, if one exists, is then measured as the amount by which the carrying amount of the asset exceeds the discounted estimated future cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value of such assets less costs to sell. Asset impairment charges are recorded to reduce the carrying amount of the long-lived asset that will be sold or disposed of to their estimated fair values. Charges for the asset impairment reduce the carrying amount of the long-lived assets to their estimated salvage value in connection with the decision to dispose of such assets. | |||
(n) | Revenue Recognition | ||
In accordance with FASB ASC 605, the Company recognizes revenue when (i) persuasive evidence of a customer or distributor arrangement exists, (ii) a retailer, distributor or wholesaler receives the goods and acceptance occurs, (iii) the price is fixed or determinable, and (iv) the collectability of the revenue is reasonably assured. Subject to these criteria, the Company recognizes revenue from product sales when title passes to the customer based on shipping terms. The Company typically does not accept returns nor offer charge backs or rebates except for certain distributors. Revenue recorded is net of any discount, rebate or sales return. No accrual for estimated sales returns and rebate incentives are necessary as of September 30, 2014 and December 31, 2013. | |||
The Company’s new distributor in Australia, Singapore, Oman and the United Arab Emirates, Thirty Six Strategies General Trading LLC (“36S”), placed their first order for one of the Company’s REA based products during the three months ended June 30, 2014. The Company with the assistance of 36S, has submitted the product to Australia’s Therapeutic Goods Administration (“TGA”) and is awaiting final government approval for 36S to begin marketing the product. Although 36S has the right to return this product should the TGA deny government approval, the Company believes the likelihood of rejection is minimal and therefore recognized the entire sales transaction of $864,000 in revenue during the three months ended June 30, 2014. The product carries a United States Food and Drug Administration (“FDA”) Over-the-Counter approval (FDA K880723), three Conformité Européenne (“CE”) Marks (DE/CA09/0170/IVD/1428; DE/CA09/0170/IVD/1429; DE/CA09/0170/IVD/1430) for the European Economic Area and a Health Canada approval (73007) for Canada. The Company has never been denied a foreign government approval for any of its products that carries an FDA approval. | |||
The sole condition under which the product can be returned is the failure of the Company to attain TGA approval for the test. Given the existing approvals attained by the Company for the product and the Company’s history with attaining foreign government approvals, the Company has determined that the risk of a product return is insignificant. | |||
The Company granted 36S extended terms for this specific sale, as allowed in the distribution agreement, to allow Australia’s Therapeutic Goods Administration time to issue the government approval required for them to begin actively marketing the product. The Company believes that the receivable is fully collectable and therefore no allowance for doubtful accounts is deemed necessary. | |||
Based on the above, the Company determined that the revenue recognition for this transaction is in accordance with the FASB ASC 605-15-25-1 and 605-15-25-3. | |||
License fee revenue is recognized on a straight-line basis over the term of the license agreement. | |||
When the Company enters into arrangements that contain more than one deliverable, the Company allocates revenue to the separate elements under the arrangement based on their relative selling prices in accordance with FASB ASC 605-25. | |||
(o) | Income Taxes | ||
The Company follows FASB ASC 740 when accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense or benefit is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. | |||
(p) | Shipping and Handling Fees and Costs | ||
The Company charges actual shipping plus a handling fee to customers, which amounted to $8,440 and $ $25,677 for the three and nine months ended September 30, 2014 and $9,574 and $32,158 for the three and nine months ended September 30, 2013. These fees are classified as part of product revenue in the statement of operations. Shipping and other related delivery costs, including those for incoming raw materials are classified as part of the cost of net revenue, which amounted to $18,031 and $47,238 for the three and nine months ended September 30, 2014 and $16,615 and $75,337 for the three and nine months ended September 30, 2013. | |||
(q) | Research and Development Costs | ||
In accordance with FASB ASC 730, research and development costs are expensed when incurred. | |||
(r) | Stock-based Payments | ||
The Company accounts for stock-based compensation under the provisions of FASB ASC 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the shorter of the period over which services are to be received or the vesting period. | |||
The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC 505-50, Equity-Based Payments to Non-Employees. Under FASB ASC 505-50, the Company determines the fair value of the stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. | |||
The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the period which services are to be received. | |||
(s) | Basic and Diluted Earnings per Share of Common Stock | ||
Basic earnings per common share are based on the weighted average number of shares outstanding during the periods presented. Diluted earnings per share are computed using the weighted average number of common shares plus dilutive common share equivalents outstanding during the period. | |||
The calculation of basic and diluted loss per share for the nine months ended September 30, 2014 and 2013 was based on a loss of $2,230,708 and $745,215 attributable to common shareholders and for the three months ended September 30, 2014 and 2013 was based on a loss of $1,124,320 and $544,370 attributable to commons stockholders, respectively. | |||
Potential common shares consist of options and warrants. Diluted net loss per common share was the same as basic loss per common share for the three and nine months ended September 30, 2014 and 2013 since the effect of options and warrants would be anti-dilutive due to the net loss attributable to the common shareholders for the periods. Instruments excluded from dilutive earnings per share, because their inclusion would be anti-dilutive, were 175,000 units of options and 1,989 units of warrants. | |||
(t) | Recently Adopted Accounting Pronouncements | ||
As of September 30, 2014 and for the nine months then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company’s financial statements. | |||
(u) | Recently Issued Accounting Pronouncements not Yet Adopted | ||
As of September 30, 2014, there are no recently issued standards not yet adopted which would have a material effect on the Company’s financial statements. | |||
Marketable_Securities
Marketable Securities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Marketable Securities | ' | ||||||||||||||||
Note 3 – Marketable Securities | |||||||||||||||||
The following table shows the Company’s available-for-sale securities cost, accrued income, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as marketable securities as of September 30, 2014. The Company had no marketable securities as of December 31, 2013. | |||||||||||||||||
2014 | |||||||||||||||||
Accrued | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Income | Gains | Losses | Value | |||||||||||||
Level 1: | |||||||||||||||||
Money market funds | $ | 15,301 | $ | 3 | $ | - | $ | - | $ | 15,303 | |||||||
Mutual funds | 498,425 | 1,401 | 117 | - | 499,944 | ||||||||||||
US agency securities | 597,699 | 1,438 | -828 | 598,309 | |||||||||||||
Certificates of deposits | 3,430,000 | 3,440 | - | -5,934 | 3,427,506 | ||||||||||||
Corporate securities | 1,528,308 | 2,800 | - | -8,111 | 1,522,996 | ||||||||||||
Municipal securities | 4,136,877 | 2,854 | 3,202 | - | 4,142,933 | ||||||||||||
Total Level 1: | 10,206,610 | 11,935 | 3,320 | -14,873 | 10,206,992 | ||||||||||||
Total: | $ | 10,206,610 | $ | 11,935 | $ | 3,320 | $ | -14,873 | $ | 10,206,992 | |||||||
During the three and nine months ended September 30, 2014 the net realized gains recognized by the Company were not significant. The maturities of the Company’s long-term marketable securities generally range from one to three years. | |||||||||||||||||
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Note 4 - Inventories | ||||||||
Inventories at September 30, 2014 and December 31, 2013 consists of the following categories: | ||||||||
2014 | 2013 | |||||||
Raw Materials | $ | 331,943 | $ | 299,464 | ||||
Sub-Assemblies | 417,858 | 335,229 | ||||||
Finished Goods | 67,099 | 422,411 | ||||||
Reserve for Obsolescence | -32,000 | -32,000 | ||||||
$ | 784,900 | $ | 1,025,104 | |||||
For the three and nine months ended September 30, 2014 and 2013, no charges were made to cost of goods sold for obsolete inventory. | ||||||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment | ' | |||||||
Note 5 - Property, Plant and Equipment | ||||||||
Property, plant and equipment as of September 30, 2014 and December 31, 2013 are as follows: | ||||||||
2014 | 2013 | |||||||
Computer Equipment | $ | 100,405 | $ | 100,405 | ||||
Computer Software | 30,736 | 22,930 | ||||||
Office Equipment | 50,049 | 50,049 | ||||||
Furniture & Fixtures | 29,939 | 29,939 | ||||||
Machinery & Equipment | 1,111,004 | 1,098,503 | ||||||
Molds & Dies | 654,327 | 649,647 | ||||||
Leasehold Improvements | 222,594 | 222,594 | ||||||
2,199,054 | 2,174,067 | |||||||
Less | ||||||||
Accumulated Depreciation | 1,974,339 | 1,906,746 | ||||||
$ | 224,715 | $ | 267,321 | |||||
Depreciation expense was $23,233 and $67,593 for the three and nine months ended September 30, 2014 and $24,870 and $71,869 for the three and nine months ended September 30, 2013. | ||||||||
Intangible_Assets
Intangible Assets | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||
Intangible Assets | ' | ||||||||||
Note 6 - Intangible Assets | |||||||||||
Intangible assets as of September 30, 2014 and December 31, 2013 and the movements for the three months then ended are as follows: | |||||||||||
Distributor & | |||||||||||
Patents & | Customer | ||||||||||
Trademarks | Relationships | Totals | |||||||||
Cost or Deemed Cost | |||||||||||
At December 31, 2013 | 3,851,494 | 1,270,639 | 5,122,133 | ||||||||
Additions | - | - | - | ||||||||
Disposals | - | - | - | ||||||||
At September 30, 2014 | 3,851,494 | 1,270,639 | 5,122,133 | ||||||||
Accumulated Amortization | |||||||||||
At December 31, 2013 | 1,416,857 | 1,270,639 | 2,687,496 | ||||||||
Amortization Charge | 193,930 | - | 193,930 | ||||||||
Disposals | - | - | - | ||||||||
At September 30, 2014 | 1,610,787 | 1,270,639 | 2,881,426 | ||||||||
Net Book Value | |||||||||||
At December 31, 2013 | 2,434,637 | - | 2,434,637 | ||||||||
At September 30, 2014 | $ | 2,240,707 | $ | - | $ | 2,240,707 | |||||
Amortization expense was $64,643 and $193,930 for the three and nine months ended September 30, 2014 and $64,643 and $193,929 for the three and nine months ended September 30, 2013. | |||||||||||
Trade_and_Other_Payables
Trade and Other Payables | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Trade and Other Payables | ' | |||||||
Note 7 - Trade and Other Payables | ||||||||
Trade and other payables as of September 30, 2014 and December 31, 2013 are as follows: | ||||||||
2014 | 2013 | |||||||
Trade Payables | $ | 251,724 | $ | 623,157 | ||||
Other Payables | 414,331 | 377,256 | ||||||
$ | 666,055 | $ | 1,000,413 | |||||
Trade and other payables are non-interest bearing and are normally settled on 30 day terms. | ||||||||
Deferred_Revenue_Related_Party
Deferred Revenue - Related Party | 9 Months Ended |
Sep. 30, 2014 | |
Deferred Revenue Disclosure [Abstract] | ' |
Deferred Revenue - Related Party | ' |
Note 8 - Deferred Revenue – Related Party | |
Deferred revenue represents the unearned revenue from the 3-year exclusive License and Supply Agreement with Chubeworkx Guernsey Limited (Note 12) for the purchase and distribution of the Company’s proprietary breathalyzer that was signed in June 2012. The first order for the proprietary breathalyzers was received in December 2012 for 3,500,000 units and additional orders were received in 2013 totaling 4,620,000 units. As of September 30, 2014, 8,120,000 units have been shipped. The license revenue is being recognized monthly on a straight line basis over the 3-year term of the agreement. | |
Sharebased_Payments
Share-based Payments | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||
Share-based Payments | ' | ||||||||||||||||||||||
Note 9 - Share-based Payments | |||||||||||||||||||||||
(a) | Stock Warrants | ||||||||||||||||||||||
The Company has issued warrants to various employees, consultants and members of the Board of Directors of the Company for their services either in connection with the Company’s ongoing efforts to raise capital or the development of the Company’s products. In addition, the Company has granted warrants to lenders in connection with the issuance of debt. Each warrant granted may be exchanged for a prescribed number of shares of common stock. The warrants expire March 18, 2015. | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Warrants | Exercise Price | Warrants | Exercise Price | ||||||||||||||||||||
Outstanding at January 1 | 1,989 | $ | 71.76 | 47,211 | $ | 48.54 | |||||||||||||||||
Cancelled during period | - | - | - | - | |||||||||||||||||||
Expired during period | - | - | - | - | |||||||||||||||||||
Outstanding at September 30 | 1,989 | $ | 71.76 | 47,211 | $ | 48.54 | |||||||||||||||||
On January 23, 2014, upon effectiveness of the registration statement filed with the SEC, the Company adopted the 2013 Stock Incentive Plan (the “Plan”) which will provide for the issuance of up to 400,000 shares. The purpose of the Plan is to provide additional incentive to those officers, employees, consultants and non-employee directors of the Company and its parents, subsidiaries and affiliates whose contributions are essential to the growth and success of the Company’s business. | |||||||||||||||||||||||
The 2013 Plan may be administered by the board or a board-appointed committee. Eligible recipients of option awards are employees, officers, consultants or directors (including non-employee directors) of the Company or of any parent, subsidiary or affiliate of the Company. The board has the authority to grant to any eligible recipient any options, restricted stock or other awards valued in whole or in part by reference to, or otherwise based on, our common stock. | |||||||||||||||||||||||
(b) | Stock options | ||||||||||||||||||||||
Qualified option holders may exercise their options at their discretion. Each option granted may be exchanged for a prescribed number of shares of common stock. | |||||||||||||||||||||||
Employee's Plan | 2014 | 2013 | |||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Options | Exercise Price | Options | Exercise Price | ||||||||||||||||||||
Outstanding at January 1 | - | $ | - | 1,579 | $ | 42.12 | |||||||||||||||||
Forfeited during period | - | - | - | - | |||||||||||||||||||
Expired during period | - | - | -1,579 | 42.12 | |||||||||||||||||||
Outstanding at September 30 | - | $ | - | - | $ | - | |||||||||||||||||
Director's Plan | 2014 | 2013 | |||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Options | Exercise Price | Options | Exercise Price | ||||||||||||||||||||
Outstanding at January 1 | - | $ | - | 352 | $ | 312 | |||||||||||||||||
Cancelled during period | - | - | - | - | |||||||||||||||||||
Expired during period | - | - | - | - | |||||||||||||||||||
Outstanding at September 30 | - | $ | - | 352 | $ | 312 | |||||||||||||||||
2013 Incentive Stock & | 2014 | 2013 | |||||||||||||||||||||
Award Plan | Weighted | Weighted | |||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Options | Exercise Price | Options | Exercise Price | ||||||||||||||||||||
Outstanding at January 1 | - | $ | - | - | $ | - | |||||||||||||||||
Granted during period | 175,000 | 4.98 | - | - | |||||||||||||||||||
Cancelled during period | - | - | - | - | |||||||||||||||||||
Expired during period | - | - | - | - | |||||||||||||||||||
Outstanding at September 30 | 175,000 | $ | 4.98 | - | $ | - | |||||||||||||||||
On June 10, 2014 the Company approved issuance of 115,000 options to purchase common shares to Directors and Officers at an exercise price of $5.50 per common share and 60,000 options to purchase common shares to key employees at an exercise price of $3.98 per common share. These options were issued under the 2013 Incentive Stock and Award Plan, in which an aggregate of up to 400,000 shares of the Company’s common shares are reserved for issuance. All options are immediately exercisable and carry a five year expiration. | |||||||||||||||||||||||
The calculated fair value of these options was distributed to the following categories on the Statement of Operations: | |||||||||||||||||||||||
Fair | |||||||||||||||||||||||
Expense Category | Value | ||||||||||||||||||||||
Cost of Goods | $ | 24,040 | |||||||||||||||||||||
General & Administrative | 357,276 | ||||||||||||||||||||||
Sales & Marketing | 48,081 | ||||||||||||||||||||||
Research & Development | 120,203 | ||||||||||||||||||||||
$ | 549,600 | ||||||||||||||||||||||
The options and warrants issued under the above four plans were valued using a Black Scholes option pricing model. The assumptions utilized in calculating the value of the issued options under Black Scholes are as follows: | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
Expected option term | 5 yrs | ||||||||||||||||||||||
Expected volatility | 127.32% | ||||||||||||||||||||||
Expected divident yeild | 0.00% | ||||||||||||||||||||||
Risk free interest rate | 1.71% | ||||||||||||||||||||||
A summary of warrants and stock options outstanding and exercisable as of September 30, 2014 follows: | |||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||
Wgtd Avg | Wgtd Avg | Wtgt Avg | |||||||||||||||||||||
Life | Exercise | Exercise | |||||||||||||||||||||
Low | High | Shares | Remaining | Price | Shares | Price | |||||||||||||||||
2013 Stock Incentive Plan | $ | 3.98 | $ | 5.5 | 175,000 | 4.75 | $ | 4.98 | 175,000 | $ | 4.98 | ||||||||||||
Warrants | 71.76 | 71.76 | 1,989 | 0.46 | 71.76 | 1,989 | 71.76 | ||||||||||||||||
Equity
Equity | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
Equity [Abstract] | ' | |||||
Equity | ' | |||||
Note 10 - Equity | ||||||
The holders of common shares are entitled to one vote per share at meetings of the Company. Holders of Series A convertible preferred shares are entitled to five votes per share at meetings of the Company. | ||||||
At December 31, 2013, the Company had an undeclared dividend due to Series A Convertible Preferred shareholders in the amount of $15,793. The dividend was declared by the Board on May 12, 2014 and paid to shareholders on June 25, 2014. | ||||||
On January 23, 2014, the Company issued 2,727,000 common shares in an initial public offering on the NASDAQ stock exchange. The transaction was recorded at the value of the net proceeds. The expenses related to this public offering are as follows: | ||||||
$ | $ | |||||
Gross Proceeds: | 14,998,500 | |||||
Underwriter/Aegis Expenses | ||||||
Underwriter Commission | 1,049,895 | |||||
Underwriter Expenses | 149,985 | |||||
Aegis Legal Fees | 80,000 | |||||
Aegis Registration Expenses | 7,500 | |||||
Aegis Miscellaneous Expenses | 36,675 | |||||
Aegis Road Show Expenses | 20,000 | |||||
Total | 1,344,055 | |||||
Akers Biosciences Expenses | ||||||
Legal & Accounting Expenses | 393,298 | |||||
Printing & Document Prep | 62,101 | |||||
Registration Expenses | 55,946 | |||||
Road Show Expenses | 41,764 | |||||
Total | 553,109 | |||||
Net Procceds: | 13,101,336 | |||||
On August 15, 2014, the Company issued 60,000 common shares in exchange for legal services rendered. The fair value of these shares was $196,800 which was reported as Administrative Expenses on the Condensed Consolidated Statement of Operations and Comprehensive Loss for the three and nine months ended September 30, 2014. | ||||||
As of September 30, 2014 the Company has 176,989 reserved shares of its common stock for outstanding warrants and options. At December 31, 2013 the Company had 1,989 reserved shares of its common stock for outstanding warrants. | ||||||
Income_Tax_Expense
Income Tax Expense | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Expense | ' |
Note 11 - Income Tax Expense | |
There is no income tax benefit for the losses for the three and nine months ended September 30, 2014 and 2013 since management has determined that the realization of the net deferred tax asset is not assured and has created a valuation allowance for the entire amount of such benefits. | |
The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. As of January 1, 2014, the Company had no unrecognized tax benefits, or any tax related interest or penalties. There were no changes in the Company’s unrecognized tax benefits during the three and nine months ended September 30, 2014 related to unrecognized tax benefits. With few exceptions, the U.S. and state income tax returns filed for the tax years ending on December 31, 2010 and thereafter are subject to examination by the relevant taxing authorities. | |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Note 12 - Related Party Transactions | |
On January 12, 2011, the Company entered into a consulting agreement with Nicolette Consulting Group Limited (NCG) for a period of three years under which the Company must pay NCG $27,917 per month in fees and up to $10,000 in reimbursement for monthly expenses ($30,000 and $30,000 for nine months ended September 30, 2014 and 2013) for the services of Mr. Thomas A. Nicolette as President and Chief Executive Officer of the Company. The consulting agreement was extended through February 11, 2014 on December 23, 2013 and extended through March 31, 2014 on March 15, 2014. Mr. Nicolette decided to step down from the Board and resigned from the Company effective March 28, 2014. | |
On March 17, 2010, in exchange for an exclusive licensing agreement, ABI received a 20 percent equity stake in BreathScan International Ltd (BIL). During 2012, BreathScan International Limited changed its name to en(10) Guernsey Limited (“en(10)”). Mr. Nicolette, the then President and Chief Executive Officer of the Company, was also appointed to en(10)’s Board of Directors. The equity stake is accounted for using the equity method of accounting in accordance with the Financial Accounting Standards Board Accounting Standards Codification. The equity investment was initially recorded at cost, which was nil. During the nine months ended September 30, 2013 no profit or loss is recorded for en(10)’s results as en(10) recorded a net loss and the Company is not required to equity account any losses in excess of its carrying value on the books. On June 13, 2013 the Company sold its interest in en(10) to ChubeWorkx for $100,000 and Mr. Nicolette resigned from en(10)’s Board of Directors. | |
On June 19, 2012, the Company entered into a 3 year exclusive License & Supply Agreement with Chubeworkx Guernsey Limited (as successor to SONO International Limited) (“Chubeworkx”) for the purchase and distribution of ABI’s proprietary breathalyzers outside North America. Chubeworkx paid a licensing fee of $1,000,000 which is being recognized over the remaining term of the agreement (Note 8). | |
On June 13, 2013, the Company announced an expansion of the License and Supply Agreement with Chubeworkx to include worldwide marketing and distribution of the “Be CHUBE” program using the Company’s breathalyzer. | |
On August 5, 2013, the Board of Directors appointed Gary M Rauch, the principle of DataSys Solutions, LLC (DS), as the Corporate Treasurer. The Company entered into a consulting agreement with DS on January 1, 2011, with a term of three years, under which the Company agreed to pay $5,625 per month for Mr. Rauch’s services as Controller of the Company. The total amount of fees accrued for DS as of September 30, 2014 and December 31, 2013 was $- and $6,586 and is shown as Trade and Other Payables – Related Party in the Consolidated Balance Sheet. On March 18, 2014, the Board of Directors approved the appointment of Mr. Rauch as Vice President of Finance, retroactive to February 2, 2014, and he became an employee of the Company. | |
On December 23, 2013, the Company entered into a short-term bridge loan with Nicolette Consulting Group for $307,500, payable on January 15, 2014 with a 5% per annum interest rate. The transaction was recorded as a Short-Term Notes Payable – Related Party. The loan, with interest amounting to $969, was paid in full on January 15, 2014. | |
Trade receivables – related party as of September 30, 2014 and December 31, 2013 were amounts due from Chubeworkx, a major shareholder of the Company, of $1,475,767 and $1,209,388. The amount due is non-interest bearing, unsecured and has a term of 90 days generally. The Company and Chubeworkx have entered into discussions to modify the terms and conditions of these receivables. | |
Product revenue – related parties for the three and nine months ended September 30, 2014 were $- and $766,369 and for the three and nine months ended September 30, 2013 were $- and $1,551,340 from Chubeworkx Guernsey Limited, a major shareholder of the Company. | |
Administrative expenses – related parties for the three and nine months ended September 30, 2014 were $- and $183,752 for Nicolette Consulting Group and $- and $11,250 for DataSys Solutions. For the three and nine months ended September 30, 2013 these expenses were $83,751 and $277,425 for Nicolette Consulting Group and $16,875 and $16,875 for DataSys Solutions. | |
Commitments
Commitments | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Commitments Disclosures [Abstract] | ' | ||||||||||
Commitments | ' | ||||||||||
Note 13 - Commitments | |||||||||||
The Company leases its facility in West Deptford, New Jersey under an operating lease with annual rentals of $130,200 plus common area maintenance (CAM) charges. The lease, which took effect on January 1, 2008, reduced the CAM charges allowing the Company to reach their own agreements with utilities and other maintenance providers. | |||||||||||
On January 7, 2013, the Company extended its lease agreement for a term of 7 years, expiring December 31, 2019. Under the terms of the lease, The Company will pay $132,000 per year. | |||||||||||
Rent expense, including related CAM charges, were $40,290 and $120,955 for the three and nine months ended September 30, 2014 and $36,855 and $111,738 for the three and nine months ended September 30, 2013. | |||||||||||
The Company entered into a 60 month operating lease for equipment with annual rentals of $6,156 on September 29, 2014. The lease commenced on October 21, 2014 upon the delivery of the equipment. | |||||||||||
The schedule of lease commitments is as follows: | |||||||||||
Building | Equipment | ||||||||||
Lease | Lease | Total | |||||||||
Next 12 Months | $ | 132,000 | $ | 5,643 | $ | 137,643 | |||||
Next 13-24 Months | 132,000 | 6,156 | 138,156 | ||||||||
Next 25-36 Months | 132,000 | 6,156 | 138,156 | ||||||||
Next 37-48 Months | 132,000 | 6,156 | 138,156 | ||||||||
Next 49-60 Months | 132,000 | 6,156 | 138,156 | ||||||||
Thereafter | 33,000 | 513 | 33,513 | ||||||||
Major_Customers
Major Customers | 9 Months Ended |
Sep. 30, 2014 | |
Major Customers [Abstract] | ' |
Major Customers | ' |
Note 14 – Major Customers | |
For the three months ended September 30, 2014, two customers and for nine months ended September 30, 2014, three customers each generated more than 10% of the Company’s product revenue. In aggregate, sales to these customers accounted for 70% and 82% of the Company’s product revenue. As of September 30, 2014, the amount due from these three customers was $2,461,017. This concentration makes the Company vulnerable to a near-term severe impact should the relationships be terminated. | |
For the three and nine months ended September 30, 2013, two customers each generated more than 10% of the Company’s product revenue. Sales to these customers accounted for 73% and 81% of the Company’s product revenue. As of September 30, 2013, the amount due from these customers was $1,073,631. | |
Major_Suppliers
Major Suppliers | 9 Months Ended |
Sep. 30, 2014 | |
Major Suppliers [Abstract] | ' |
Major Suppliers | ' |
Note 15 – Major Suppliers | |
For the three months ended September 30, 2014, four suppliers each accounted for more than 10% of the Company’s purchases. In aggregate, these suppliers accounted for 53% of the Company’s total purchases. No suppliers accounted for more than 10% of the Company’s purchases for the nine months ended September 30, 2014 | |
For the three and nine months ended September 30, 2013, two suppliers each accounted for more than 10% of the Company’s purchases. These suppliers accounted for 37% and 52% of the Company’s total purchases. As of September 30, 2013, the amount due to the suppliers was $111,734. | |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Note 16 – Contingencies | |
On November 7, 2013, the Company received a letter from the counsel of Rapid Breath Diagnostics, LLC (“RBD”) alleging, among other things, the Company entered into a purported Authorized Distributor and License Agreement with RBD which was materially altered without RBD’s consent. Additionally, RBD claims that the Company has violated certain intellectual property rights of RBD with respect to its Ketone Check and Metron products. RBD is alleging that it has suffered $250,000 in damages and that it has development and ownership of the market use of Ketone Check for the management of neurological diseases as well as intellectual property rights to the name Metron. The Company informed RBD that the alleged agreement was not fully executed, and that the Company’s offer to enter into the agreement was void. | |
On January 9, 2014, the Company commenced a lawsuit in the United States Federal Court, District of New Jersey, against Rapid Breath Diagnostics, LLC and David A. Urman (collectively, “the RBD Parties”). The Complaint requests that the Court declare the rights of the parties with respect to an alleged Distributor and License Agreement and to preliminary enjoin the RBD Parties from continuing to prosecute an arbitration filed with the American Arbitration Association with respect to the same subject matter (“the Arbitration”). Pursuant to stipulation of the parties, the Arbitration has since been discontinued in anticipation of the RBD Parties’ agreement to litigate the dispute in the court action. The Company is not able to assess its position in the court action in terms of favorable or unfavorable position and intends to vigorously defend against any counterclaims, if asserted. | |
This lawsuit was settled on July 22, 2014 for a one-time nominal payment which was paid on July 23, 2014. | |
Subsequent_events
Subsequent events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 17 - Subsequent events | |
On October 15, 2014 a complaint was filed by Akers Biosciences, Inc. in federal district court (Southern District of New York) seeking a declaratory judgment of non-breach of a contract with Mr. Lawrence Martin. This complaint was filed in response to various threats of litigation proffered by Mr. Martin’s counsel in connection with the alleged breach of a purchase agreement entered into by the Company and Mr. Martin on January 23, 2007 (“2007 Purchase Agreement”). Prior to filing the complaint the Company, in good faith, attempted to ascertain the basis for the breach allegations with an eye to resolve any possible claims outside of court but such discussions ultimately were rendered fruitless. Responsive to the Company’s filing, Mr. Martin has filed a complimentary suit in the sixth judicial circuit court (Pinellas County, FL) alleging, among other counts, breach of the 2007 Purchase Agreement for failure to pay certain royalties allegedly owed to Mr. Martin. The Company seeks to most effectively handle Mr. Martin’s claims without prejudicing any of its rights. | |
On October 23, 2014 the Company signed a joint venture agreement with Hainan Savy Investment Management Ltd and Mr. Thomas Knox, a related party, to research, develop, produce and sell certain of the Company’s rapid diagnostic screening and testing products in China. The joint venture company will be located in Haikou, the capital city of the province of Hainan, China and is incorporated as Hainan Savy Akers Biosciences, Ltd. The Company will invest cash of ¥398,000 ($64,794), to hold a 19.9% equity position and Dr. Raymond F. Akers, Jr. and Mr. Thomas Knox will serve on the Board of Directors of the joint venture. | |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Basis of Presentation | ' | ||
(a) | Basis of Presentation | ||
The consolidated financial statements of the Company are prepared in U.S. Dollars and in accordance with accounting principles generally accepted in the United States of America (US GAAP). | |||
The Company is an emerging growth company as the term is used in The Jumpstart Our Business Startups Act enacted on April 5, 2012 and has elected to comply with certain reduced public company reporting requirements. | |||
Use of Estimates | ' | ||
(b) | Use of Estimates | ||
The preparation of financial statements in conformity with US GAAP requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the following notes for revenue recognition, allowances for doubtful accounts, inventory write-downs, impairment of intangible assets and valuation of share based payments. | |||
Foreign Currency | ' | ||
(c) | Foreign Currency | ||
These consolidated financial statements are presented in U.S. Dollars, which is the Company’s functional currency. All financial information presented in U.S. Dollars has been rounded to the nearest dollar. Foreign Currency Transaction Gains or Losses, resulting from loans and cash balances denominated in Foreign Currencies, are recorded in the statement of operations. | |||
Comprehensive Income/(Loss) | ' | ||
(d) | Comprehensive Income/(Loss) | ||
The Company follows Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) 220 in reporting comprehensive income (loss). Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. | |||
Cash and Cash Equivalents | ' | ||
(e) | Cash and Cash Equivalents | ||
Cash and cash equivalents comprise cash balances. The Company considers all highly liquid investments, which include short-term bank deposits (up to 3 months from date of deposit) that are not restricted as to withdrawal date or use, to be cash equivalents. Bank overdrafts are shown as part of trade and other payables in the balance sheet. | |||
Fair Value of Financial Instruments | ' | ||
(f) | Fair Value of Financial Instruments | ||
The Company’s financial instruments consist of cash, receivables and trade and other payables. The carrying value of cash, trade receivables and trade and other payables approximate their fair value because of their short maturities. | |||
Fair Value Measurement | ' | ||
(g) | Fair Value Measurement | ||
The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the FASB has established three levels of inputs that may be used to measure fair value: | |||
Level 1 – Quoted prices in active markets for identical assets or liabilities. | |||
Level 2 – Observable inputs other Level 1 inputs in active markets that are observable either directly or indirectly. | |||
Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. | |||
The Company’s valuation techniques used to measure the fair value of money market funds and certain marketable equity securities were derived from quoted prices in active markets for identical assets or liabilities. | |||
In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has not elected the fair value option for any eligible financial instruments. | |||
Trade Receivables, Trade Receivables - Related Party and Allowance for Doubtful Accounts | ' | ||
(h) | Trade Receivables, Trade Receivables – Related Party and Allowance for Doubtful Accounts | ||
The carrying amounts of current trade receivables is stated at cost, net of allowance for doubtful accounts and approximate their fair value given their short term nature. | |||
The normal credit terms extended to customers ranges between 30 and 90 days. The Company reviews all receivables that exceed terms and establishes an allowance for doubtful accounts based on management’s assessment of the collectability of trade and other receivables. A considerable amount of judgment is required in assessing the amount of allowance. The Company considers the historical level of credit losses, makes judgments about the credit worthiness of each customer based on ongoing credit evaluations and monitors current economic trends that might impact the level of credit losses in the future. | |||
As of September 30, 2014 and December 31, 2013, allowances for doubtful accounts were $- and $-. Allowances charged for doubtful accounts amounted to $- for the three and nine months ended September 30, 2014 and 2013. | |||
Concentration of Credit Risk | ' | ||
(i) | Concentration of Credit Risk | ||
The Company is exposed to credit risk in the normal course of business primarily related to trade receivables and cash and cash equivalents. | |||
Substantially all of the Company’s cash are maintained with Fulton Bank of New Jersey and Bank of America. The funds are insured by the Federal Deposit Insurance Corporation up to a maximum of $250,000 per account or instrument, but are otherwise unprotected. The Company placed $606,988 with Fulton Bank of New Jersey, $31,487 with Bank of America and $4,040 PayPal as of September 30, 2014. The Company placed $855 with Fulton Bank of New Jersey, $98,563 with Bank of America and $4,216 with PayPal as of December 31, 2013. | |||
Concentration of credit risk with respect to trade receivables exists as approximately 82% of its revenue was generated by three customers for the nine months ended September 30, 2014. These customers accounted for 96% of trade receivables as of September 30, 2014. | |||
Concentration of credit risk with respect to trade receivables exists as approximately 85% of its revenue was generated by three customers for the year ended December 31, 2013, respectively. These customers accounted for 97% of trade receivables as of December 31, 2013. In order to limit such risks, the Company performs ongoing credit evaluations of its customers’ financial condition. | |||
Inventories | ' | ||
(j) | Inventories | ||
Inventories are measured at the lower of cost or market. The cost of inventories is based on the weighted-average principle, and includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, costs include an appropriate share of production overheads based on normal operating capacity. | |||
Property, Plant and Equipment | ' | ||
(k) | Property, Plant and Equipment | ||
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Costs include expenditures that are directly attributable to the acquisition of the asset. | |||
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized within “other income” in the statement of operations. | |||
Depreciation is recognized in the statement of operations on the accelerated basis over the estimated useful lives of the property, plant and equipment. Leased assets are depreciated over the shorter of the lease term or their useful lives. | |||
The estimated useful lives for the current and comparative periods are as follows: | |||
Useful Life | |||
(in years) | |||
Plant and equipment | 12-May | ||
Furniture and fixtures | 10-May | ||
Computer equipment & software | 5-Mar | ||
Depreciation methods, useful lives and residual values are reviewed at each reporting date. | |||
Intangible Assets | ' | ||
(l) | Intangible Assets | ||
(i) | Patents and Trade Secrets | ||
The Company has developed or acquired several diagnostic tests that can detect the presence of various substances in a person’s breath, blood, urine and saliva. Propriety protection for the Company’s products, technology and process is important to its competitive position. As of September 30, 2014, the Company has eleven patents from the United States Patent Office in effect (7,896,167, 8,097,171, 7,285,246, 7,837,936, 8,003,061, 8,425,859, 5,565,366, 5,827,749, D691,056, D691,057 and D691,058). Other patents are in effect in Australia through the Design Registry (348,310, 348,311 and 348,312), the Community Trade Mark in the European Union ((OHIM) 002216895-0001, 002216895-0002 and 002216895-0003) and in Japan (4,885,134 and 4,931,821). Patents are in the national phase of prosecution in many Patent Cooperation Treaty participating countries. Additional proprietary technology consists of numerous different inventions. The Company intends to file additional patent applications, where appropriate, relating to new products, technologies and their use in the U.S., European and Asian markets. Management intends to protect all other intellectual property (e.g. copyrights, trademarks and trade secrets) using all legal remedies available to the Company. | |||
(ii) | Patent Costs | ||
Costs associated with applying for patents are capitalized as patent costs. Once the patents are approved, the respective costs are amortized over their estimated useful lives (maximum of 17 years) on a straight-line basis. Patent pending costs for patents that are not approved are charged to operations the year the patent is rejected. | |||
(iii) | In addition, patents may be purchased from third parties. The costs of acquiring the patent are capitalized as patent costs if it represents a future economic benefit to the Company. Once a patent is acquired it is amortized over its remaining useful life. | ||
(iv) | Other Intangible Assets | ||
Other intangible assets that are acquired by the Company, which have definite useful lives, are measured at cost less accumulated amortization and accumulated impairment losses. | |||
(v) | |||
Amortization | |||
Amortization is recognized on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. The estimated useful lives for the current and comparative periods are as follows: | |||
Useful Life | |||
(in years) | |||
Patents and trademarks | 17-Dec | ||
Customer lists | 5 | ||
Recoverability of Long-lived Assets | ' | ||
(m) | Recoverability of Long-lived Assets | ||
In accordance with FASB ASC 360-10-35 “Impairment or Disposal of Long-lived Assets”, long-lived assets to be held and used are analyzed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable or that the useful lives of those assets are no longer appropriate. The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible impairment. No such events and circumstances have occurred during the nine months ended September 30, 2014 and 2013. | |||
The Company determines the existence of such impairment by measuring the expected future cash flows (undiscounted and without interest charges) and comparing such amount to the carrying amount of the assets. An impairment loss, if one exists, is then measured as the amount by which the carrying amount of the asset exceeds the discounted estimated future cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value of such assets less costs to sell. Asset impairment charges are recorded to reduce the carrying amount of the long-lived asset that will be sold or disposed of to their estimated fair values. Charges for the asset impairment reduce the carrying amount of the long-lived assets to their estimated salvage value in connection with the decision to dispose of such assets. | |||
Revenue Recognition | ' | ||
(n) | Revenue Recognition | ||
In accordance with FASB ASC 605, the Company recognizes revenue when (i) persuasive evidence of a customer or distributor arrangement exists, (ii) a retailer, distributor or wholesaler receives the goods and acceptance occurs, (iii) the price is fixed or determinable, and (iv) the collectability of the revenue is reasonably assured. Subject to these criteria, the Company recognizes revenue from product sales when title passes to the customer based on shipping terms. The Company typically does not accept returns nor offer charge backs or rebates except for certain distributors. Revenue recorded is net of any discount, rebate or sales return. No accrual for estimated sales returns and rebate incentives are necessary as of September 30, 2014 and December 31, 2013. | |||
The Company’s new distributor in Australia, Singapore, Oman and the United Arab Emirates, Thirty Six Strategies General Trading LLC (“36S”), placed their first order for one of the Company’s REA based products during the three months ended June 30, 2014. The Company with the assistance of 36S, has submitted the product to Australia’s Therapeutic Goods Administration (“TGA”) and is awaiting final government approval for 36S to begin marketing the product. Although 36S has the right to return this product should the TGA deny government approval, the Company believes the likelihood of rejection is minimal and therefore recognized the entire sales transaction of $864,000 in revenue during the three months ended June 30, 2014. The product carries a United States Food and Drug Administration (“FDA”) Over-the-Counter approval (FDA K880723), three Conformité Européenne (“CE”) Marks (DE/CA09/0170/IVD/1428; DE/CA09/0170/IVD/1429; DE/CA09/0170/IVD/1430) for the European Economic Area and a Health Canada approval (73007) for Canada. The Company has never been denied a foreign government approval for any of its products that carries an FDA approval. | |||
The sole condition under which the product can be returned is the failure of the Company to attain TGA approval for the test. Given the existing approvals attained by the Company for the product and the Company’s history with attaining foreign government approvals, the Company has determined that the risk of a product return is insignificant. | |||
The Company granted 36S extended terms for this specific sale, as allowed in the distribution agreement, to allow Australia’s Therapeutic Goods Administration time to issue the government approval required for them to begin actively marketing the product. The Company believes that the receivable is fully collectable and therefore no allowance for doubtful accounts is deemed necessary. | |||
Based on the above, the Company determined that the revenue recognition for this transaction is in accordance with the FASB ASC 605-15-25-1 and 605-15-25-3. | |||
License fee revenue is recognized on a straight-line basis over the term of the license agreement. | |||
When the Company enters into arrangements that contain more than one deliverable, the Company allocates revenue to the separate elements under the arrangement based on their relative selling prices in accordance with FASB ASC 605-25. | |||
Income Taxes | ' | ||
(o) | Income Taxes | ||
The Company follows FASB ASC 740 when accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense or benefit is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. | |||
Shipping and Handling Fees and Costs | ' | ||
(p) | Shipping and Handling Fees and Costs | ||
The Company charges actual shipping plus a handling fee to customers, which amounted to $8,440 and $ $25,677 for the three and nine months ended September 30, 2014 and $9,574 and $32,158 for the three and nine months ended September 30, 2013. These fees are classified as part of product revenue in the statement of operations. Shipping and other related delivery costs, including those for incoming raw materials are classified as part of the cost of net revenue, which amounted to $18,031 and $47,238 for the three and nine months ended September 30, 2014 and $16,615 and $75,337 for the three and nine months ended September 30, 2013. | |||
Research and Development Costs | ' | ||
(q) | Research and Development Costs | ||
In accordance with FASB ASC 730, research and development costs are expensed when incurred. | |||
Stock-based Payments | ' | ||
(r) | Stock-based Payments | ||
The Company accounts for stock-based compensation under the provisions of FASB ASC 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the shorter of the period over which services are to be received or the vesting period. | |||
The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC 505-50, Equity-Based Payments to Non-Employees. Under FASB ASC 505-50, the Company determines the fair value of the stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. | |||
The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the period which services are to be received. | |||
Basic and Diluted Earnings per Share of Common Stock | ' | ||
(s) | Basic and Diluted Earnings per Share of Common Stock | ||
Basic earnings per common share are based on the weighted average number of shares outstanding during the periods presented. Diluted earnings per share are computed using the weighted average number of common shares plus dilutive common share equivalents outstanding during the period. | |||
The calculation of basic and diluted loss per share for the nine months ended September 30, 2014 and 2013 was based on a loss of $2,230,708 and $745,215 attributable to common shareholders and for the three months ended September 30, 2014 and 2013 was based on a loss of $1,124,320 and $544,370 attributable to commons stockholders, respectively. | |||
Potential common shares consist of options and warrants. Diluted net loss per common share was the same as basic loss per common share for the three and nine months ended September 30, 2014 and 2013 since the effect of options and warrants would be anti-dilutive due to the net loss attributable to the common shareholders for the periods. Instruments excluded from dilutive earnings per share, because their inclusion would be anti-dilutive, were 175,000 units of options and 1,989 units of warrants. | |||
Recently Adopted Accounting Pronouncements | ' | ||
(t) | Recently Adopted Accounting Pronouncements | ||
As of September 30, 2014 and for the nine months then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company’s financial statements. | |||
Recently Issued Accounting Pronouncements not Yet Adopted | ' | ||
(u) | Recently Issued Accounting Pronouncements not Yet Adopted | ||
As of September 30, 2014, there are no recently issued standards not yet adopted which would have a material effect on the Company’s financial statements. | |||
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Property, Plant and Equipment Useful Life | ' | ||
The estimated useful lives for the current and comparative periods are as follows: | |||
Useful Life | |||
(in years) | |||
Plant and equipment | 12-May | ||
Furniture and fixtures | 10-May | ||
Computer equipment & software | 5-Mar | ||
Schedule of Finite-Lived Intangible Assets Useful Life | ' | ||
The estimated useful lives for the current and comparative periods are as follows: | |||
Useful Life | |||
(in years) | |||
Patents and trademarks | 17-Dec | ||
Customer lists | 5 | ||
Marketable_Securities_Tables
Marketable Securities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Marketable Securities | ' | ||||||||||||||||
The Company had no marketable securities as of December 31, 2013. | |||||||||||||||||
2014 | |||||||||||||||||
Accrued | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Income | Gains | Losses | Value | |||||||||||||
Level 1: | |||||||||||||||||
Money market funds | $ | 15,301 | $ | 3 | $ | - | $ | - | $ | 15,303 | |||||||
Mutual funds | 498,425 | 1,401 | 117 | - | 499,944 | ||||||||||||
US agency securities | 597,699 | 1,438 | -828 | 598,309 | |||||||||||||
Certificates of deposits | 3,430,000 | 3,440 | - | -5,934 | 3,427,506 | ||||||||||||
Corporate securities | 1,528,308 | 2,800 | - | -8,111 | 1,522,996 | ||||||||||||
Municipal securities | 4,136,877 | 2,854 | 3,202 | - | 4,142,933 | ||||||||||||
Total Level 1: | 10,206,610 | 11,935 | 3,320 | -14,873 | 10,206,992 | ||||||||||||
Total: | $ | 10,206,610 | $ | 11,935 | $ | 3,320 | $ | -14,873 | $ | 10,206,992 | |||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current | ' | |||||||
Inventories at September 30, 2014 and December 31, 2013 consists of the following categories: | ||||||||
2014 | 2013 | |||||||
Raw Materials | $ | 331,943 | $ | 299,464 | ||||
Sub-Assemblies | 417,858 | 335,229 | ||||||
Finished Goods | 67,099 | 422,411 | ||||||
Reserve for Obsolescence | -32,000 | -32,000 | ||||||
$ | 784,900 | $ | 1,025,104 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment | ' | |||||||
Property, plant and equipment as of September 30, 2014 and December 31, 2013 are as follows: | ||||||||
2014 | 2013 | |||||||
Computer Equipment | $ | 100,405 | $ | 100,405 | ||||
Computer Software | 30,736 | 22,930 | ||||||
Office Equipment | 50,049 | 50,049 | ||||||
Furniture & Fixtures | 29,939 | 29,939 | ||||||
Machinery & Equipment | 1,111,004 | 1,098,503 | ||||||
Molds & Dies | 654,327 | 649,647 | ||||||
Leasehold Improvements | 222,594 | 222,594 | ||||||
2,199,054 | 2,174,067 | |||||||
Less | ||||||||
Accumulated Depreciation | 1,974,339 | 1,906,746 | ||||||
$ | 224,715 | $ | 267,321 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||
Schedule of Finite-Lived Intangible Assets | ' | ||||||||||
Intangible assets as of September 30, 2014 and December 31, 2013 and the movements for the three months then ended are as follows: | |||||||||||
Distributor & | |||||||||||
Patents & | Customer | ||||||||||
Trademarks | Relationships | Totals | |||||||||
Cost or Deemed Cost | |||||||||||
At December 31, 2013 | 3,851,494 | 1,270,639 | 5,122,133 | ||||||||
Additions | - | - | - | ||||||||
Disposals | - | - | - | ||||||||
At September 30, 2014 | 3,851,494 | 1,270,639 | 5,122,133 | ||||||||
Accumulated Amortization | |||||||||||
At December 31, 2013 | 1,416,857 | 1,270,639 | 2,687,496 | ||||||||
Amortization Charge | 193,930 | - | 193,930 | ||||||||
Disposals | - | - | - | ||||||||
At September 30, 2014 | 1,610,787 | 1,270,639 | 2,881,426 | ||||||||
Net Book Value | |||||||||||
At December 31, 2013 | 2,434,637 | - | 2,434,637 | ||||||||
At September 30, 2014 | $ | 2,240,707 | $ | - | $ | 2,240,707 | |||||
Trade_and_Other_Payables_Table
Trade and Other Payables (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Trade and Other Payables | ' | |||||||
Trade and other payables as of September 30, 2014 and December 31, 2013 are as follows: | ||||||||
2014 | 2013 | |||||||
Trade Payables | $ | 251,724 | $ | 623,157 | ||||
Other Payables | 414,331 | 377,256 | ||||||
$ | 666,055 | $ | 1,000,413 | |||||
Sharebased_Payments_Tables
Share-based Payments (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||
Schedule of Share-based Compensation, Warrants, Activity | ' | ||||||||||||||||||||||
The warrants expire March 18, 2015. | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Warrants | Exercise Price | Warrants | Exercise Price | ||||||||||||||||||||
Outstanding at January 1 | 1,989 | $ | 71.76 | 47,211 | $ | 48.54 | |||||||||||||||||
Cancelled during period | - | - | - | - | |||||||||||||||||||
Expired during period | - | - | - | - | |||||||||||||||||||
Outstanding at September 30 | 1,989 | $ | 71.76 | 47,211 | $ | 48.54 | |||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||||||||||||||
Each option granted may be exchanged for a prescribed number of shares of common stock. | |||||||||||||||||||||||
Employee's Plan | 2014 | 2013 | |||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Options | Exercise Price | Options | Exercise Price | ||||||||||||||||||||
Outstanding at January 1 | - | $ | - | 1,579 | $ | 42.12 | |||||||||||||||||
Forfeited during period | - | - | - | - | |||||||||||||||||||
Expired during period | - | - | -1,579 | 42.12 | |||||||||||||||||||
Outstanding at September 30 | - | $ | - | - | $ | - | |||||||||||||||||
Director's Plan | 2014 | 2013 | |||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Options | Exercise Price | Options | Exercise Price | ||||||||||||||||||||
Outstanding at January 1 | - | $ | - | 352 | $ | 312 | |||||||||||||||||
Cancelled during period | - | - | - | - | |||||||||||||||||||
Expired during period | - | - | - | - | |||||||||||||||||||
Outstanding at September 30 | - | $ | - | 352 | $ | 312 | |||||||||||||||||
2013 Incentive Stock & | 2014 | 2013 | |||||||||||||||||||||
Award Plan | Weighted | Weighted | |||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Options | Exercise Price | Options | Exercise Price | ||||||||||||||||||||
Outstanding at January 1 | - | $ | - | - | $ | - | |||||||||||||||||
Granted during period | 175,000 | 4.98 | - | - | |||||||||||||||||||
Cancelled during period | - | - | - | - | |||||||||||||||||||
Expired during period | - | - | - | - | |||||||||||||||||||
Outstanding at September 30 | 175,000 | $ | 4.98 | - | $ | - | |||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ||||||||||||||||||||||
The calculated fair value of these options was distributed to the following categories on the Statement of Operations: | |||||||||||||||||||||||
Fair | |||||||||||||||||||||||
Expense Category | Value | ||||||||||||||||||||||
Cost of Goods | $ | 24,040 | |||||||||||||||||||||
General & Administrative | 357,276 | ||||||||||||||||||||||
Sales & Marketing | 48,081 | ||||||||||||||||||||||
Research & Development | 120,203 | ||||||||||||||||||||||
$ | 549,600 | ||||||||||||||||||||||
Schedule of Share Based Payment Award Stock Options And Warrants Valuation Assumptions | ' | ||||||||||||||||||||||
The assumptions utilized in calculating the value of the issued options under Black Scholes are as follows: | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
Expected option term | 5 yrs | ||||||||||||||||||||||
Expected volatility | 127.32% | ||||||||||||||||||||||
Expected divident yeild | 0.00% | ||||||||||||||||||||||
Risk free interest rate | 1.71% | ||||||||||||||||||||||
Summary of Warrants and Stock Options Outstanding and Exercisable | ' | ||||||||||||||||||||||
A summary of warrants and stock options outstanding and exercisable as of September 30, 2014 follows: | |||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||
Wgtd Avg | Wgtd Avg | Wtgt Avg | |||||||||||||||||||||
Life | Exercise | Exercise | |||||||||||||||||||||
Low | High | Shares | Remaining | Price | Shares | Price | |||||||||||||||||
2013 Stock Incentive Plan | $ | 3.98 | $ | 5.5 | 175,000 | 4.75 | $ | 4.98 | 175,000 | $ | 4.98 | ||||||||||||
Warrants | 71.76 | 71.76 | 1,989 | 0.46 | 71.76 | 1,989 | 71.76 | ||||||||||||||||
Equity_Tables
Equity (Tables) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
Equity [Abstract] | ' | |||||
Schedule Of Proceeds From Initial Public Offering | ' | |||||
The expenses related to this public offering are as follows: | ||||||
$ | $ | |||||
Gross Proceeds: | 14,998,500 | |||||
Underwriter/Aegis Expenses | ||||||
Underwriter Commission | 1,049,895 | |||||
Underwriter Expenses | 149,985 | |||||
Aegis Legal Fees | 80,000 | |||||
Aegis Registration Expenses | 7,500 | |||||
Aegis Miscellaneous Expenses | 36,675 | |||||
Aegis Road Show Expenses | 20,000 | |||||
Total | 1,344,055 | |||||
Akers Biosciences Expenses | ||||||
Legal & Accounting Expenses | 393,298 | |||||
Printing & Document Prep | 62,101 | |||||
Registration Expenses | 55,946 | |||||
Road Show Expenses | 41,764 | |||||
Total | 553,109 | |||||
Net Procceds: | 13,101,336 | |||||
Commitments_Tables
Commitments (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Commitments Disclosures [Abstract] | ' | ||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | ||||||||||
The schedule of lease commitments is as follows: | |||||||||||
Building | Equipment | ||||||||||
Lease | Lease | Total | |||||||||
Next 12 Months | $ | 132,000 | $ | 5,643 | $ | 137,643 | |||||
Next 13-24 Months | 132,000 | 6,156 | 138,156 | ||||||||
Next 25-36 Months | 132,000 | 6,156 | 138,156 | ||||||||
Next 37-48 Months | 132,000 | 6,156 | 138,156 | ||||||||
Next 49-60 Months | 132,000 | 6,156 | 138,156 | ||||||||
Thereafter | 33,000 | 513 | 33,513 | ||||||||
Basis_of_Presentation_and_Sign3
Basis of Presentation and Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Plant and Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '12 years |
Plant and Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Furniture and Fixtures [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '10 years |
Furniture and Fixtures [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Computer equipment & software [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Computer equipment & software [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '3 years |
Basis_of_Presentation_and_Sign4
Basis of Presentation and Significant Accounting Policies (Details 1) | 9 Months Ended |
Sep. 30, 2014 | |
Patents and Trademarks [Member] | Minimum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '12 years |
Patents and Trademarks [Member] | Maximum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '17 years |
Customer Lists [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '5 years |
Basis_of_Presentation_and_Sign5
Basis of Presentation and Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |
Cost of Sales [Member] | Cost of Sales [Member] | Cost of Sales [Member] | Cost of Sales [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Fulton Bank [Member] | Fulton Bank [Member] | Bank of America [Member] | Bank of America [Member] | Rapid Enzymatic Assay [Member] | Rapid Enzymatic Assay [Member] | Rapid Enzymatic Assay [Member] | Maximum [Member] | Maximum [Member] | |||||||
Patents [Member] | |||||||||||||||||||||||
Allowance for Doubtful Accounts Receivable | $0 | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash, FDIC Insured Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' |
Cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 606,988 | 855 | 31,487 | 98,563 | ' | 4,040 | 4,216 | ' | ' |
Concentration Risk, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82.00% | 85.00% | 96.00% | 97.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shipping, Handling and Transportation Costs | 8,440 | 9,574 | 25,677 | 32,158 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from Related Parties | 0 | 0 | 766,379 | 1,551,340 | ' | ' | 18,031 | 16,615 | 47,238 | 75,337 | ' | ' | ' | ' | ' | ' | ' | ' | 864,000 | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '17 years |
Net Income (Loss) Available to Common Stockholders, Basic | ($1,124,320) | ($544,370) | ($2,230,708) | ($745,215) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Arrangement by Share-basedAward, Options, Grants | ' | ' | 175,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Warrants Outstanding | 1,989 | 47,211 | 1,989 | 47,211 | 1,989 | 47,211 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable_Securities_Details
Marketable Securities (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost | $10,206,610 |
Accrued Income | 11,935 |
Unrealized Gains | 3,320 |
Unrealized Losses | -14,873 |
Fair Value | 10,206,992 |
Fair Value, Inputs, Level 1 [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost | 10,206,610 |
Accrued Income | 11,935 |
Unrealized Gains | 3,320 |
Unrealized Losses | -14,873 |
Fair Value | 10,206,992 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost | 15,301 |
Accrued Income | 3 |
Unrealized Gains | 0 |
Unrealized Losses | 0 |
Fair Value | 15,303 |
Fair Value, Inputs, Level 1 [Member] | Mutual Funds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost | 498,425 |
Accrued Income | 1,401 |
Unrealized Gains | 117 |
Unrealized Losses | 0 |
Fair Value | 499,944 |
Fair Value, Inputs, Level 1 [Member] | US Agency Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost | 597,699 |
Accrued Income | 1,438 |
Unrealized Losses | -828 |
Fair Value | 598,309 |
Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost | 3,430,000 |
Accrued Income | 3,440 |
Unrealized Gains | 0 |
Unrealized Losses | -5,934 |
Fair Value | 3,427,506 |
Fair Value, Inputs, Level 1 [Member] | Corporate Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost | 1,528,308 |
Accrued Income | 2,800 |
Unrealized Gains | 0 |
Unrealized Losses | -8,111 |
Fair Value | 1,522,996 |
Fair Value, Inputs, Level 1 [Member] | Municipal Notes [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost | 4,136,877 |
Accrued Income | 2,854 |
Unrealized Gains | 3,202 |
Unrealized Losses | 0 |
Fair Value | $4,142,933 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Raw Materials | $331,943 | $299,464 |
Sub-Assemblies | 417,858 | 335,229 |
Finished Goods | 67,099 | 422,411 |
Reserve for Obsolescence | -32,000 | -32,000 |
Inventory, Net, Total | $784,900 | $1,025,104 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment | $2,199,054 | $2,174,067 |
Accumulated Depreciation | 1,974,339 | 1,906,746 |
Property, Plant and Equipment, Net | 224,715 | 267,321 |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment | 100,405 | 100,405 |
Computer Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment | 30,736 | 22,930 |
Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment | 50,049 | 50,049 |
Furniture & Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment | 29,939 | 29,939 |
Machinery & Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment | 1,111,004 | 1,098,503 |
Molds & Dies [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment | 654,327 | 649,647 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment | $222,594 | $222,594 |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Depreciation | $23,233 | $24,870 | $67,593 | $71,869 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Cost or Deemed Cost | ' | ' | ' | ' |
Beginning Balance | ' | ' | $5,122,133 | ' |
Additions | ' | ' | 0 | ' |
Disposals | ' | ' | 0 | ' |
Ending Balance | 5,122,133 | ' | 5,122,133 | ' |
Accumulated Amortization | ' | ' | ' | ' |
Beginning Balance | ' | ' | 2,687,496 | ' |
Amortization Charge | 64,643 | 64,643 | 193,930 | 193,929 |
Disposals | ' | ' | 0 | ' |
Ending Balance | 2,881,426 | ' | 2,881,426 | ' |
Net Book Value | ' | ' | ' | ' |
Beginning Balance | ' | ' | 2,434,637 | ' |
Ending Balance | 2,240,707 | ' | 2,240,707 | ' |
Patents & Trademarks [Member] | ' | ' | ' | ' |
Cost or Deemed Cost | ' | ' | ' | ' |
Beginning Balance | ' | ' | 3,851,494 | ' |
Additions | ' | ' | 0 | ' |
Disposals | ' | ' | 0 | ' |
Ending Balance | 3,851,494 | ' | 3,851,494 | ' |
Accumulated Amortization | ' | ' | ' | ' |
Beginning Balance | ' | ' | 1,416,857 | ' |
Amortization Charge | ' | ' | 193,930 | ' |
Disposals | ' | ' | 0 | ' |
Ending Balance | 1,610,787 | ' | 1,610,787 | ' |
Net Book Value | ' | ' | ' | ' |
Beginning Balance | ' | ' | 2,434,637 | ' |
Ending Balance | 2,240,707 | ' | 2,240,707 | ' |
Distributor & Customer Relationships [Member] | ' | ' | ' | ' |
Cost or Deemed Cost | ' | ' | ' | ' |
Beginning Balance | ' | ' | 1,270,639 | ' |
Additions | ' | ' | 0 | ' |
Disposals | ' | ' | 0 | ' |
Ending Balance | 1,270,639 | ' | 1,270,639 | ' |
Accumulated Amortization | ' | ' | ' | ' |
Beginning Balance | ' | ' | 1,270,639 | ' |
Amortization Charge | ' | ' | 0 | ' |
Disposals | ' | ' | 0 | ' |
Ending Balance | 1,270,639 | ' | 1,270,639 | ' |
Net Book Value | ' | ' | ' | ' |
Beginning Balance | ' | ' | 0 | ' |
Ending Balance | $0 | ' | $0 | ' |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Amortization of Intangible Assets | $64,643 | $64,643 | $193,930 | $193,929 |
Trade_and_Other_Payables_Detai
Trade and Other Payables (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Trade Payables | $251,724 | $623,157 |
Other Payables | 414,331 | 377,256 |
Accounts Payable and Other Accrued Liabilities | $666,055 | $1,000,413 |
Deferred_Revenue_Related_Party1
Deferred Revenue - Related Party (Details Textual) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Breathalyzers | 8,120,000 | 4,620,000 | 3,500,000 |
Revenue Recognition Period | '3 years | ' | ' |
Sharebased_Payments_Details
Share-based Payments (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Warrants Outstanding Beginning | 1,989 | 47,211 |
Cancelled during period | 0 | 0 |
Expired during period | 0 | 0 |
Warrants Outstanding Ending | 1,989 | 47,211 |
Warrants Weighted Average Exercise Price Beginning | $71.76 | $48.54 |
Warrants Cancelled Weighted Average Exercise Price | $0 | $0 |
Warrants Expired Weighted Average Exercise Price | $0 | $0 |
Warrants Weighted Average Exercise Price Ending | $71.76 | $48.54 |
Sharebased_Payments_Details1
Share-based Payments (Details1) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Granted during period | 175,000 | ' |
Employees Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Options Outstanding, Beginning Balance | 0 | 1,579 |
Forfeited/Cancelled during period | 0 | 0 |
Expired during period | 0 | -1,579 |
Options Outstanding, Ending Balance | 0 | 0 |
Options Outstanding, weighted Average Exercise Price Beginning Balance | $0 | $42.12 |
Forfeited/Cancelled, weighted Average Exercise Price | $0 | $0 |
Expired, Weighted Average Exercise Price | $0 | $42.12 |
Options Outstanding, weighted Average Exercise Price Ending Balance | $0 | $0 |
Directors Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Options Outstanding, Beginning Balance | 0 | 352 |
Forfeited/Cancelled during period | 0 | 0 |
Expired during period | 0 | 0 |
Options Outstanding, Ending Balance | 0 | 352 |
Options Outstanding, weighted Average Exercise Price Beginning Balance | $0 | $312 |
Forfeited/Cancelled, weighted Average Exercise Price | $0 | $0 |
Expired, Weighted Average Exercise Price | $0 | $0 |
Options Outstanding, weighted Average Exercise Price Ending Balance | $0 | $312 |
2013 Incentive Stock & Award Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Options Outstanding, Beginning Balance | 0 | 0 |
Granted during period | 175,000 | 0 |
Forfeited/Cancelled during period | 0 | 0 |
Expired during period | 0 | 0 |
Options Outstanding, Ending Balance | 175,000 | 0 |
Options Outstanding, weighted Average Exercise Price Beginning Balance | $0 | $0 |
Granted during year, Weighted Average Exercise Price | $4.98 | $0 |
Forfeited/Cancelled, weighted Average Exercise Price | $0 | $0 |
Expired, Weighted Average Exercise Price | $0 | $0 |
Options Outstanding, weighted Average Exercise Price Ending Balance | $4.98 | $0 |
Sharebased_Payments_Details_2
Share-based Payments (Details 2) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Stock or Unit Option Plan Expense | $196,800 | $0 |
Cost of Sales [Member] | ' | ' |
Stock or Unit Option Plan Expense | 24,040 | ' |
General and Administrative Expense [Member] | ' | ' |
Stock or Unit Option Plan Expense | 357,276 | ' |
Selling and Marketing Expense [Member] | ' | ' |
Stock or Unit Option Plan Expense | 48,081 | ' |
Research and Development Expense [Member] | ' | ' |
Stock or Unit Option Plan Expense | $120,203 | ' |
Sharebased_Payments_Details_3
Share-based Payments (Details 3) | 9 Months Ended |
Sep. 30, 2014 | |
Expected option term | '5 years |
Expected volatility | 127.32% |
Expected divident yeild | 0.00% |
Risk free interest rate | 1.71% |
Sharebased_Payments_Details_4
Share-based Payments (Details 4) (USD $) | 9 Months Ended | |||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Warrants Outstanding | 1,989 | ' | ' | ' |
Warrants Outstanding weighted average life remaining | '5 months 16 days | ' | ' | ' |
Warrants Outstanding weighted average Exercise Price | $71.76 | ' | ' | ' |
Warrants Outstanding Exercisable | 1,989 | ' | ' | ' |
Exercisable Weighted Average Exercise Price | $71.76 | ' | ' | ' |
2013 Incentive Stock & Award Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding Low | $3.98 | ' | ' | ' |
Options Outstanding High | $5.50 | ' | ' | ' |
Options Outstanding Shares | 175,000 | 0 | 0 | 0 |
Options Outstanding Weighted Average Remaining | '4 years 9 months | ' | ' | ' |
Options Outstanding Weighted Average Exercise Price | $4.98 | $0 | $0 | $0 |
Options Outstanding Exercisable | 175,000 | ' | ' | ' |
Options Exercisable Weighted Average Exercise Price | $4.98 | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Warrants Price Per Share | $71.76 | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Warrants Price Per Share | $71.76 | ' | ' | ' |
Sharebased_Payments_Details_Te
Share-based Payments (Details Textual) (USD $) | 9 Months Ended | 0 Months Ended | |||
Sep. 30, 2014 | Jun. 10, 2014 | Jun. 10, 2014 | Jun. 10, 2014 | Jan. 23, 2014 | |
Directors and Officers [Member] | Key Employees [Member] | Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | 400,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 175,000 | ' | 115,000 | 60,000 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | ' | ' | $5.50 | $3.98 | ' |
Common Stock, Capital Shares Reserved for Future Issuance | ' | 400,000 | ' | ' | ' |
Equity_Details
Equity (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Gross Proceeds: | $14,998,500 | ' |
Payments of Stock Issuance Costs | 1,897,164 | ' |
Net Proceeds: | 13,101,336 | 0 |
Underwriter And Aegis Expenses [Member] | ' | ' |
Payments of Stock Issuance Costs | 1,344,055 | ' |
Underwriter And Aegis Expenses [Member] | Underwriter Commission [Member] | ' | ' |
Payments of Stock Issuance Costs | 1,049,895 | ' |
Underwriter And Aegis Expenses [Member] | Underwriter Expenses [Member] | ' | ' |
Payments of Stock Issuance Costs | 149,985 | ' |
Underwriter And Aegis Expenses [Member] | Aegis Legal Fees [Member] | ' | ' |
Payments of Stock Issuance Costs | 80,000 | ' |
Underwriter And Aegis Expenses [Member] | Aegis Registration Expenses [Member] | ' | ' |
Payments of Stock Issuance Costs | 7,500 | ' |
Underwriter And Aegis Expenses [Member] | Aegis Miscellaneous Expenses [Member] | ' | ' |
Payments of Stock Issuance Costs | 36,675 | ' |
Underwriter And Aegis Expenses [Member] | Aegis Road Show Expenses [Member] | ' | ' |
Payments of Stock Issuance Costs | 20,000 | ' |
Akers Biosciences Expenses [Member] | ' | ' |
Payments of Stock Issuance Costs | 553,109 | ' |
Akers Biosciences Expenses [Member] | Legal Accounting Expenses [Member] | ' | ' |
Payments of Stock Issuance Costs | 393,298 | ' |
Akers Biosciences Expenses [Member] | Printing Document Prep [Member] | ' | ' |
Payments of Stock Issuance Costs | 62,101 | ' |
Akers Biosciences Expenses [Member] | Registration Expenses [Member] | ' | ' |
Payments of Stock Issuance Costs | 55,946 | ' |
Akers Biosciences Expenses [Member] | Road Show Expenses [Member] | ' | ' |
Payments of Stock Issuance Costs | $41,764 | ' |
Equity_Details_Textual
Equity (Details Textual) (USD $) | 9 Months Ended | 9 Months Ended | 1 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jan. 23, 2014 | Dec. 31, 2013 | |
Common Stock [Member] | IPO [Member] | Series A Convertible Preferred Stock [Member] | |||
Dividends Payable | ' | ' | ' | ' | $15,793 |
Stock Issued During Period, Shares, New Issues | ' | ' | 2,727,000 | 2,727,000 | ' |
Common Stock Reserved For Warrants | 176,989 | 1,989 | ' | ' | ' |
Issuance of Common Shares for Services | $196,800 | ' | $196,800 | ' | ' |
Issuance of Restricted Common Shares for Services | ' | ' | 60,000 | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Jan. 15, 2014 | Jun. 13, 2013 | Jun. 19, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 23, 2013 | Jan. 12, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 17, 2010 | Aug. 05, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Nicolette Consulting Group Limited [Member] | Nicolette Consulting Group Limited [Member] | Nicolette Consulting Group Limited [Member] | Nicolette Consulting Group Limited [Member] | Nicolette Consulting Group Limited [Member] | BreathScan International Ltd [Member] | Mr. Rauch's [Member] | DataSys Solutions, LLC [Member] | DataSys Solutions, LLC [Member] | DataSys Solutions, LLC [Member] | DataSys Solutions, LLC [Member] | DataSys Solutions, LLC [Member] | ||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consulting Fees Per Month | ' | ' | ' | ' | ' | ' | ' | ' | ' | $27,917 | ' | ' | ' | ' | ' | $5,625 | ' | ' | ' | ' | ' |
Maximum Reimbursement For Monthly Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursement Expenses In Consulting Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | 30,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Equity Stake | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' |
Sale Of Equity Interest | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exclusive License And Supply Agreement Term | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License Fees Received | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due to Related Parties, Current | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | 6,586 |
Short-term Debt, Total | ' | ' | ' | ' | ' | ' | ' | ' | 307,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Expense, Debt | 969 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts Receivable, Related Parties, Current | ' | ' | ' | 1,475,767 | ' | 1,475,767 | ' | 1,209,388 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured Loan Term | ' | ' | ' | ' | ' | '90 days | ' | '90 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from Related Parties | ' | ' | ' | 0 | 0 | 766,379 | 1,551,340 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | ' | ' | ' | $0 | $100,626 | $195,002 | $294,300 | ' | ' | ' | $0 | $83,751 | $183,752 | $277,425 | ' | ' | $0 | $16,875 | $11,250 | $16,875 | ' |
Commitments_Details
Commitments (Details) (USD $) | Sep. 30, 2014 |
Next 12 Months | $137,643 |
Next 13-24 Months | 138,156 |
Next 25-36 Months | 138,156 |
Next 37-48 Months | 138,156 |
Next 49-60 Months | 138,156 |
Thereafter | 33,513 |
Building Lease | ' |
Next 12 Months | 132,000 |
Next 13-24 Months | 132,000 |
Next 25-36 Months | 132,000 |
Next 37-48 Months | 132,000 |
Next 49-60 Months | 132,000 |
Thereafter | 33,000 |
Equiment Lease | ' |
Next 12 Months | 5,643 |
Next 13-24 Months | 6,156 |
Next 25-36 Months | 6,156 |
Next 37-48 Months | 6,156 |
Next 49-60 Months | 6,156 |
Thereafter | $513 |
Commitments_Details_Textual
Commitments (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 07, 2013 | Sep. 29, 2014 | Sep. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Operating Leases, Rent Expense, Net, Total | ' | $6,156 | ' | ' | $130,200 | ' |
Lease Agreement Term | '7 years | ' | ' | ' | ' | ' |
Lease Expiration Date | ' | ' | ' | ' | 31-Dec-19 | ' |
Operating Leases, Rent Expense | ' | ' | $40,290 | $36,855 | $120,955 | $111,738 |
Major_Customers_Details_Textua
Major Customers (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Due From Customers | 2,461,017 | 1,073,631 | 2,461,017 | 1,073,631 |
Sales [Member] | ' | ' | ' | ' |
Concentration Risk, Percentage | 70.00% | 73.00% | 82.00% | 81.00% |
Major_Suppliers_Details_Textua
Major Suppliers (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ' | ' | ' |
Due To Suppliers | ' | 111,734 | 111,734 |
Purchases [Member] | ' | ' | ' |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 53.00% | 37.00% | 52.00% |
Contingencies_Details_Textual
Contingencies (Details Textual) (USD $) | 0 Months Ended |
Nov. 07, 2013 | |
Loss Contingency, Damages Sought, Value | $250,000 |
Subsequent_events_Details_Text
Subsequent events (Details Textual) (Subsequent Event [Member]) | 1 Months Ended | |
Oct. 23, 2014 | Oct. 23, 2014 | |
CNY | USD ($) | |
Subsequent Event [Line Items] | ' | ' |
Litigation Settlement, Amount | 398,000 | ' |
Percentage Of Commission Payment | 19.90% | ' |
Payment Of Commission | ' | ($64,794) |