Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 11, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Akers Biosciences Inc | |
Entity Central Index Key | 1,321,834 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,425,045 | |
Trading symbol | AKER | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash | $ 180,390 | $ 402,059 |
Marketable Securities | 2,442,467 | 4,025,104 |
Trade Receivables, net | 781,698 | 609,195 |
Trade Receivables - Related Party, net | 31,522 | 31,512 |
Deposits and other receivables | 49,522 | 95,577 |
Inventories net | 1,212,158 | 1,131,654 |
Prepaid expenses | 138,306 | 185,967 |
Total Current Assets | 4,836,063 | 6,481,068 |
Non-Current Assets | ||
Property, Plant and Equipment, net | 321,215 | 251,145 |
Intangible Assets, net | 1,430,106 | 1,472,883 |
Other Assets | 66,813 | 66,813 |
Total Non-Current Assets | 1,818,134 | 1,790,841 |
Total Assets | 6,654,197 | 8,271,909 |
Current Liabilities | ||
Trade and Other Payables | 1,543,173 | 1,668,731 |
Total Current Liabilities | 1,543,173 | 1,668,731 |
Total Liabilities | $ 1,543,173 | $ 1,668,731 |
STOCKHOLDERS' EQUITY | ||
Convertible Preferred Stock, No par value, 50,000,000 shares authorized, no shares issued and outstanding as of March 31, 2016 and December 31, 2015 | ||
Common Stock, No par value, 500,000,000 shares authorized, 5,425,045 and 5,425,045 issued and outstanding as of March 31, 2016 and December 31, 2015 | $ 100,793,649 | $ 100,785,408 |
Accumulated Deficit | (95,684,928) | (94,175,999) |
Accumulated Other Comprehensive Income/(Loss) | 2,303 | (6,231) |
Total Stockholders' Equity | 5,111,024 | 6,603,178 |
Total Liabilities and Stockholders' Equity | $ 6,654,197 | $ 8,271,909 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Convertible Preferred Stock, No Par Value | ||
Convertible Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Convertible Preferred Stock, Shares Issued | ||
Convertible Preferred Stock, Shares Outstanding | ||
Common Stock, No Par Value | ||
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 5,425,045 | 5,425,045 |
Common Stock, Shares, Outstanding | 5,425,045 | 5,425,045 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Product Revenue | $ 738,023 | $ 411,714 |
License Revenue | 15,000 | |
License Revenue - Related party | 83,333 | |
Total Revenues | $ 738,023 | 510,047 |
Cost of Sales: | ||
Product Cost of Sales | (200,028) | (226,341) |
Gross Profit | 537,995 | 283,706 |
Administrative Expenses | 923,560 | 698,434 |
Sales and Marketing Expenses | 725,324 | 575,252 |
Research and Development Expenses | 363,292 | 305,574 |
Amortization of Non-Current Assets | 42,777 | 64,643 |
Loss from Operations | (1,516,958) | (1,360,197) |
Other (Income)/Expenses | ||
Foreign Currency Transaction (Gain)/Loss | 2,256 | (995) |
Interest and Dividend Income | $ (10,285) | (32,048) |
Other Income | (5,355) | |
Total Other Income | $ (8,029) | (38,398) |
Loss Before Income Taxes | $ (1,508,929) | $ (1,321,799) |
Income Tax Benefit | ||
Net Loss Attributable to Common Stockholders | $ (1,508,929) | $ (1,321,799) |
Other Comprehensive Income | ||
Net Unrealized Gains on Marketable Securities | 8,534 | 26,713 |
Total Other Comprehensive Income | 8,534 | 26,713 |
Comprehensive Loss | $ (1,500,395) | $ (1,295,086) |
Basic & diluted loss per common share | $ (0.28) | $ (0.26) |
Weighted average basic & diluted common shares outstanding | 5,425,045 | 5,125,837 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Changes in Stockholder's Equity (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($) | Common Shares Issued and Outstanding [Member] | Common Stock [Member] | Accumulated Deficit [Member] | Accumulated Comprehensive Income/(Loss) [Member] | Total |
Balance at Dec. 31, 2015 | $ 5,425,045 | $ 100,785,408 | $ (94,175,999) | $ (6,231) | $ 6,603,178 |
Net loss for the period | $ (1,508,929) | (1,508,929) | |||
Options issued for services | $ 8,241 | (8,241) | |||
Net unrealized gain on marketable securities | $ 8,534 | 8,534 | |||
Balance at Mar. 31, 2016 | $ 5,425,045 | $ 100,793,649 | $ (95,684,928) | $ 2,303 | $ 5,111,024 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities | ||
Net loss for the period | $ (1,508,929) | $ (1,321,799) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Accrued interest and dividends on marketable securities | 9,213 | 7,156 |
Depreciation and amortization | $ 56,479 | 80,349 |
Gain from other non-operating activities | $ (5,355) | |
Options issued for services | $ 8,241 | |
Changes in assets and liabilities | ||
(Increase)/decrease in trade receivables | $ (172,513) | $ 20,041 |
Decrease in notes receivables - related party | 43,491 | |
Decrease in deposits and other receivables | $ 46,055 | 14,985 |
Increase in inventories | (80,504) | (64,786) |
(Increase)/decrease in prepaid expenses | 47,661 | (20,470) |
Increase/(decrease) in trade and other payables | $ (125,558) | 87,745 |
Decrease in deferred revenue - related party | (83,333) | |
Net cash used in operating activities | $ (1,719,855) | (1,241,976) |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (83,772) | (44,510) |
Purchases of maketable securities | $ (19,498) | (27,228) |
Investment in Hainan Savy Akers Biosciences, Ltd. joint venture | (64,675) | |
Proceeds from other non-operating activities | 5,355 | |
Proceeds from sale of marketable securities | $ 1,601,456 | 1,253,436 |
Net cash provided by investing activities | 1,498,186 | 1,122,378 |
Net decrease in cash | (221,669) | (119,598) |
Cash at beginning of period | 402,059 | 455,841 |
Cash at end of period | 180,390 | 336,243 |
Supplemental Schedule of Non-Cash Financing and Investing Activities | ||
Net unrealized gains on marketable securities | $ 8,534 | 26,713 |
Issuance of restricted common share grants to directors and officers accrued in 2014 | $ 697,300 |
Nature of Business
Nature of Business | 3 Months Ended |
Mar. 31, 2016 | |
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 accounting principles generally accepted in the United States (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 months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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, 2015 included in Form 10-K of Akers Biosciences, Inc. and Subsidiaries (the Company). The condensed 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 Companys 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 Companys 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. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Note 2 Basis of Presentation and Significant Accounting Policies (a) Basis of Presentation The condensed consolidated financial statements of the Company are prepared in U.S. Dollars and in accordance with 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 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) Functional and Presentation Currency These condensed consolidated financial statements are presented in U.S. Dollars, which is the Companys 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 condensed consolidated 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 condensed consolidated balance sheet. (f) Fair Value of Financial Instruments The Companys financial instruments consist of cash and cash equivalents, marketable securities, receivables and trade and other payables. The carrying value of cash and cash equivalents, receivables and trade and other payables approximate their fair value because of their short maturities. The fair value of marketable securities is described in Note 2(g). (g) Fair Value Measurement Marketable Securities The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 Inputs to the valuation methodology include ● quoted prices for similar assets or liabilities in active markets; ● quoted prices for identical or similar assets or liabilities in inactive markets; ● inputs other than quoted prices that are observable for the asset or liability; ● inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liabilitys fair value measurement level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. (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 managements 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 March 31, 2016 and December 31, 2015, allowances for doubtful accounts were $864,000. Allowances charged for doubtful accounts amounted to $- for the three months ended March 31, 2016 and March 31, 2015. (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 Companys cash is 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 $161,429 and $369,525 with Fulton Bank of New Jersey, $14,921 and $28,494 with Bank of America and $4,040 with PayPal as of March 31, 2016 and December 31, 2015. Concentration of credit risk with respect to trade receivables exists as approximately 74% of its revenue was generated by two customers for the three months ended March 31, 2016. These customers accounted for 30% of gross trade receivables (including related parties) as of March 31, 2016. 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 condensed consolidated statement of operations. Depreciation is recognized in the condensed consolidated 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 5-12 Furniture and fixtures 5-10 Computer equipment & software 3-5 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 persons breath, blood, urine and saliva. Propriety protection for the Companys products, technology and process is important to its competitive position. As of March 31, 2016, the Company has eleven patents from the United States Patent Office in effect (7,896,167; 8,097,171; 8,003,061; 8,425,859; 8,871,521; 8,808,639; 7,285,246; 7,837,936; 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 (1,515,170; 4,885,134; 4,931,821 and 5,775,790). 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 the statement of operations the year the patent is rejected. 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. (iii) 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. (iv) 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 12-17 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. 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) Investments In accordance with FASB ASC 323, the Company recognizes investments in joint ventures based upon the Companys ability to significantly influence the operational or financial policies of the joint venture. An objective judgment of the level of influence is made at the time of the investment based upon several factors including, but not limited to the following: a) Representation on the Board of Directors b) Participation in policy-making processes c) Material intra-entity transactions d) Interchange of management personnel e) Technological dependencies f) Extent of ownership and the ability to influence decision making based upon the makeup of other owners when the shareholder group is small. The Company follows the equity method for valuating investments in joint ventures when the existence of significant influence over operational and financial policy has been established, as determined by management; otherwise, the Company will valuate these investments using the cost method. Investments recorded using the cost method will be assessed for any decrease in value that has occurred that is other than temporary and the other than temporary decrease in value shall be recognized. As and when circumstances and facts change, the Company will evaluate the Companys ability to significantly influence operational and financial policy to establish a basis for converting the investment accounted for using the cost method to the equity method of valuation. On March 9, 2015, the Company contributed capital of $64,675 in Hainan Savy Akers Biosciences, Ltd., a company incorporated in the Peoples Republic of China, resulting in a 19.9% ownership interest. The contribution was adjusted downward to $64,091 on April 8, 2015; the net effect of the currency conversion when the contribution was processed in Hainan. This is included in other assets in the condensed consolidated balance sheet as of March 31, 2016 and is accounted for using the cost method. (o) 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 are necessary as of March 31, 2016 and December 31, 2015. The Company instituted a significant price increase for certain PIFA products effective May 1, 2015. In an effort to phase in the increase for existing customers, the Company is providing a rebate to its distributors for the price increase through March 31, 2016 for their existing customer base as of April 30, 2015. The Company has recorded rebates of $99,968, which is a reduction of revenue, for the three months ended March 31, 2016 for this program. Accounts receivable will be reduced when the rebates are applied by the customer. 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. (p) 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. (q) Shipping and Handling Fees and Costs The Company charges actual shipping plus a handling fee to customers, which amounted to $16,045 for the three months ended March 31, 2016 and $18,941 for the three months ended March 31, 2015. These fees are classified as part of product revenue in the condensed consolidated statements 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 $21,714 for the three months ended March 31, 2016 and $44,690 for the three months ended March 31, 2015. (r) Research and Development Costs In accordance with FASB ASC 730, research and development costs are expensed when incurred. (s) Stock-based Payments The Company accounts for stock-based compensation under the provisions of FASB ASC 718, CompensationStock 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. At the end of each financial reporting period, prior to vesting or prior to the completion of services, the fair value of equity based payments will be re-measured and the non-cash expense recognized during the period will be adjusted accordingly. Since the fair value of equity based payments granted to non-employees is subject to change in the future, the amount of the future expense will include fair value re-measurements until the equity based payments are fully vested or the service is completed. (t) 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 the basic and diluted loss per share for the three months ended March 31, 2016 and 2015 was based on a loss attributable to common stockholders of $1,508,929 and $1,321,799. 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 months ended March 31, 2016 and 2015 since the effect of options and warrants would be anti-dilutive due to the net loss attributable to the common stockholders for the periods. Instruments excluded from dilutive earnings per share, because their inclusion would be anti-dilutive, were 220,500 units of options for the three months ended March 31, 2016 and 175,000 units of options for the three months ended March 31, 2015. (u) Recently Adopted Accounting Pronouncements As of March 31, 2016 and for the three months then ended, there were no recently adopted accounting pronouncements that had a material effect on the Companys financial statements. (v) Recently Issued Accounting Pronouncements not Yet Adopted As of March 31, 2016, there are no recently issued accounting standards not yet adopted which would have a material effect on the Companys financial statements through 2017. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Note 3 Marketable Securities Following is a description of the valuation methodologies used for assets measured at fair value as of March 31, 2016 and December 31, 2015. Money market funds, U.S. Agency Securities, Corporate and Municipal Securities and Certificates of Deposits: 2016 Accrued Unrealized Unrealized Fair Cost Income Gains Losses Value Level 2: Money market funds $ 1,837 $ 17 $ - $ - $ 1,854 US agency securities 40,307 66 - - 40,373 Certificates of deposits 1,070,000 1,193 2,712 - 1,073,905 Corporate securities 1,028,308 2,294 - (707 ) 1,029,895 Municipal securities 294,651 1,491 298 - 296,440 Total Level 2: 2,435,103 5,061 3,010 (707 ) 2,442,467 Total: $ 2,435,103 $ 5,061 $ 3,010 $ (707 ) $ 2,442,467 The above securities are classified as available for sale. The securities are valued at fair market value. Maturities of the securities range from one to two years. Unrealized gains and losses relating to the available for sale investment securities were recorded in the condensed consolidated statement of changes in stockholders equity as comprehensive income. The net unrealized gains were $8,534 and $26,713 for the three months ended March 31, 2016 and 2015. As of March 31, 2016, investments in money market funds, U.S. agency securities, certificates of deposit, corporate securities and municipal securities classified as available for sale mature as follows: Within After 1 Year 1 - 5 Years 5 - 10 Years 10 Years $ 1,030,868 $ 1,411,599 $ - $ - Proceeds from the sale of marketable securities for the three months ended March 31, 2016 and 2015 were $1,601,456 and $1,253,436, respectively. For the three months ended March 31, 2016 and 2015 the gross gain was $308 and $448 as a result of these sales. |
Trade Receivables - Related Par
Trade Receivables - Related Party | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Trade Receivables - Related Party | Note 4 - Trade Receivables Related Party Trade receivables related party are made up of amounts due from Hainan Savy Akers Biosciences, a joint venture partner located in the Peoples Republic of China. The amount due is non-interest bearing, unsecured and generally has a term of 90 days. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 - Inventories Inventories at March 31, 2016 and December 31, 2015 consists of the following categories: 2016 2015 Raw Materials $ 387,269 $ 348,216 Sub-Assemblies 831,069 786,656 Finished Goods 22,759 25,721 Reserve for Obsolescence (28,939 ) (28,939 ) $ 1,212,158 $ 1,131,654 For the three months ended March 31, 2016 and 2015, $2,968 and $- were expensed to cost of goods sold for obsolete inventory. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 6 - Property, Plant and Equipment Property, plant and equipment as of March 31, 2016 and December 31, 2015 are as follows: 2016 2015 Computer Equipment $ 110,649 $ 100,405 Computer Software 40,681 40,681 Office Equipment 39,959 50,049 Furniture & Fixtures 29,939 29,939 Machinery & Equipment 1,126,005 1,112,060 Molds & Dies 799,202 756,279 Leasehold Improvements 222,593 222,593 2,369,028 2,312,006 Less Accumulated Depreciation 2,047,813 2,060,861 $ 321,215 $ 251,145 Depreciation expense was $13,702 and $15,706 for the three months ended March 31, 2016 and 2015. The Company disposed of a fully depreciated telephone system with no salvage value during the three months ended March 31, 2016. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | N ote 7 - Intangible Assets Intangible assets as of March 31, 2016 and December 31, 2015 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, 2015 $ 2,626,996 $ 1,270,639 $ 3,897,635 Additions - - - Disposals - - - At March 31, 2016 $ 2,626,996 $ 1,270,639 $ 3,897,635 Accumulated Amortization At December 31, 2015 $ 1,154,113 $ 1,270,639 $ 2,424,752 Amortization Charge 42,777 - 42,777 Disposals - - - At March 31, 2016 $ 1,196,890 $ 1,270,639 $ 2,467,529 Net Book Value At December 31, 2015 $ 1,472,883 $ - $ 1,472,883 At March 31, 2016 $ 1,430,106 $ - $ 1,430,106 Amortization expense was $42,777 and $64,643 for the three months ended March 31, 2016 and 2014. |
Trade and Other Payables
Trade and Other Payables | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Trade and Other Payables | Note 8 - Trade and Other Payables Trade and other payables as of March 31, 2016 and December 31, 2015 are as follows: 2016 2015 Trade Payables $ 694,900 $ 538,449 Accrued Expenses 753,523 1,020,532 Legal Settlements Payable 35,000 50,000 Deferred Compensation 59,750 59,750 $ 1,543,173 $ 1,668,731 Trade and other payables are non-interest bearing and are normally settled on 30 day terms. |
Share-based Payments
Share-based Payments | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Payments | Note 9 - Share-based Payments 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 Companys business. On January 9, 2015, the Board of Directors of the Company approved, upon recommendation from the Compensation Committee of the Board, by unanimous written consent the Amended and Restated 2013 Incentive Stock and Award Plan (the Plan), which increases the number of authorized shares of common stock subject to the Plan to 800,000 shares. 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. 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. The following table summarizes the option activities for the three months ended March 31, 2016: Weighted Average Weighted Remaining Aggregate Number of Average Contractual Intrinsic Shares Exercise Price Term (years) Value Balance at December 31, 2015 220,500 $ 4.38 Granted - - Exercised - - Forfeited - - Canceled/Expired - - Balance at March 31, 2016 220,500 $ 4.38 Exercisable as of March 31, 2016 220,500 $ 4.38 3.56 $ 13,500 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $1.68 for the Companys common shares on March 31, 2016. The above intrinsic value represents that of awards with an exercise price below $1.68. The total grant date fair value of stock options vested for the three months ended March 31, 2016 and 2015 was $-. As of March 31, 2016, there was $- of unrecognized compensation cost related to outstanding employee stock options. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2016 | |
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. On December 29, 2015, the Company issued 227,708 common shares to directors and officers for services rendered to the Company through December 31, 2015. The fair value of these shares was $280,081 which was expensed in 2015. On December 29, 2015, the Company issued 22,500 common shares to key employees for services rendered to the Company through December 31, 2015. The fair value of these shares was $27,675 which was expensed in 2015. On December 29, 2015, the Company issued 30,000 common shares in exchange for legal services rendered. The fair value of these shares was $36,900 which was expensed in 2015. As of March 31, 2016 and December 31, 2015 the Company has 220,500 reserved shares of its common stock for outstanding options. |
Income Tax Expense
Income Tax Expense | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Note 11 - Income Tax Expense There is no income tax benefit for the losses for the three months ended March 31, 2016 and 2015 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 Companys 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, 2016, the Company had no unrecognized tax benefits, or any tax related interest or penalties. There were no changes in the Companys unrecognized tax benefits during the three months ended March 31, 2016 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, 2012 and thereafter are subject to examination by the relevant taxing authorities. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12 - Related Party Transactions 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 ABIs proprietary breathalyzers outside North America. Chubeworkx paid a licensing fee of $1,000,000 which was recognized over the term of the agreement through June 30, 2015. 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 Companys breathalyzer. On February 12, 2016, the Company purchased several manufacturing molds through Hainan Savy Akers Biosciences, Ltd., our joint venture partner in the Peoples Republic of China. The total cost of the molds and sample components during the three months ended March 31, 2016 was $42,093. The cost of the sample components, totaling $1,020, was included in research and development expenses in the condensed consolidated statement of operations and comprehensive income. The cost of the molds, totaling $41,073, is included in property, plant and equipment in the condensed consolidated balance sheet. Trade receivables related party as of March 31, 2016 and December 31, 2015 are $31,522 and $31,512. The amounts due is non-interest bearing, unsecured and generally have a term of 30 to 90 (Note 4). This receivable is past due and management deemed it fully collectable. Product revenue related party for the three months ended March 31, 2016 and 2015 were $- and $14,343. The revenue was the result of sales to Hainan Savy Akers Biosciences, a joint venture partner. |
Commitments
Commitments | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [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, was $40,290 for the three months ended March 31, 2016 and 2015. 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 $ 6,156 $ 138,156 Next 13-24 Months 132,000 6,156 138,156 Next 25-36 Months 132,000 6,156 138,156 Next 37-48 Months 99,000 3,591 102,591 |
Major Customers
Major Customers | 3 Months Ended |
Mar. 31, 2016 | |
Major Customers [Abstract] | |
Major Customers | Note 14 Major Customers For the three months ended March 31, 2016, two customers each generated more than 10% of the Companys product revenue. In aggregate, sales to these customers accounted for 74% of the Companys product revenue. As of March 31, 2016, the amount due from these two customers was $500,742. This concentration makes the Company vulnerable to a near-term severe impact should the relationships be terminated. For the three months ended March 31, 2015, two customers each generated more than 10% of the Companys product revenue. Sales to these customers accounted for 66% of the Companys product revenue. |
Major Suppliers
Major Suppliers | 3 Months Ended |
Mar. 31, 2016 | |
Major Suppliers [Abstract] | |
Major Suppliers | Note 15 Major Suppliers For the three months ended March 31, 2016, two suppliers each accounted for more than 10% of the Companys purchases. In aggregate, these suppliers accounted for 23% of the Companys total purchases. As of March 31, 2016, the amount due to the suppliers was $-. This concentration makes the Company vulnerable to a near-term severe impact should the relationships be terminated. For the three months ended March 31, 2015, two suppliers each accounted for more than 10% of the Companys purchases. These suppliers accounted for 45% of the Companys total purchases. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 16 Contingencies On April 23, 2015, a complaint was filed by the Company in federal district court (District of New Jersey) against ChubeWorkx Guernsey Limited (ChubeWorkx) for breach of contract (the Breach of Contract Claim) for failure of timely interest payments by ChubeWorkx under a promissory note (the Chube Note) entered into by the Company and ChubeWorkx in December 2014. As part of this action, the Company also filed a preliminary injunction which sought to bar ChubeWorkx from disposing of the Companys common stock owned by ChubeWorkx for which the Company retained a right of sale in the event of a default by ChubeWorkx under the Chube Note. A consent decree has been finalized and entered by the court to resolve the issues of the preliminary injunction which requires ChubeWorkx to escrow a certain of number of shares of the Companys common stock currently held by ChubeWorkx until the Breach of Contract Claim has been fully adjudicated. The Breach of Contract Claim is currently in the discovery phase and while the parties have communicated in good faith to resolve this dispute all discussions to date have not yielded any results. This case was closed by the court pursuant to an order entered on December 22, 2015 as requested by Akers in light of near final settlement discussions with Chubeworks regarding the settlement and release of all claims between the parties. The settlement discussions were terminated on March 24, 2016 after substantial good faith efforts by the Company to bring this dispute to a resolution. Under the Federal Rules of Civil Procedure the Company will seek to reopen the case under Fed. R. Civ P. 60(b)(1) and prosecute this case with full vigor to retrieve the monies owed to the Company. On August 21, 2015, Chubeworkx filed a lawsuit against the Company in The High Court of Justice, Queens Bench Division Commercial Court, Royal Courts of Justice, United Kingdom, alleging a breach of contract under the exclusive license agreement entered into by Chubeworkx with Company in June 2012 and damages resulting from said alleged breach. The lawsuit is in the preliminary stage and was suspended by mutual agreement of the parties pursuant to ongoing global settlement discussions which were focused on settling all outstanding claims between the parties. The Company and ChubeWorkx have agreed in principal to all of the material terms of a global settlement for all existing claims and pending law suits. The parties are working with their counsel to finalize and execute the settlement agreements. After reviewing the terms of the agreement in principal the Company has determined that no accrual for losses was necessary as of March 31, 2016. Legal fees were expensed in the period in which they were incurred. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17 Subsequent Events On April 25, 2016, Mr. Thomas Knox, previously the Companys Non-Executive Co-Chairman, became the Companys sole Chairman. Raymond F. Akers, Jr. PhD, formally the Companys Executive Chairman, became the Chief Scientific Director. Dr. Akers will continue to lead the scientific developments of the Companys product pipeline and the enhancements of the Companys commercialized products. Dr. Akers remains an Executive Director on the Board and, as Co-Founder, will continue to be the primary interface with shareholders. On April 29, 2016, the Company received a payment of $250,000, in accordance with the terms of sale, from NovoTek Pharmaceuticals Limited (NovoTek), for the initial release of PIFA Heparin PF/4 products against the $2,500,000 order received February 29, 2016. The revenue from this initial lot of goods totaling $500,000, will be recognized when the criteria for the recognition of revenue are met. Management believes that these criteria will be met in the second quarter of 2016. NovoTek is the Companys exclusive distributor in the Peoples Republic of China for the Companys PIFA Heparin products. |
Basis of Presentation and Sig24
Basis of Presentation and Significant Accounting Policies (Polices) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation The condensed consolidated financial statements of the Company are prepared in U.S. Dollars and in accordance with 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 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. |
Functional and Presentation Currency | (c) Functional and Presentation Currency These condensed consolidated financial statements are presented in U.S. Dollars, which is the Companys 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 condensed consolidated 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 condensed consolidated balance sheet. |
Fair Value of Financial Instruments | (f) Fair Value of Financial Instruments The Companys financial instruments consist of cash and cash equivalents, marketable securities, receivables and trade and other payables. The carrying value of cash and cash equivalents, receivables and trade and other payables approximate their fair value because of their short maturities. The fair value of marketable securities is described in Note 2(g). |
Fair Value Measurement - Marketable Securities | (g) Fair Value Measurement Marketable Securities The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 Inputs to the valuation methodology include ● quoted prices for similar assets or liabilities in active markets; ● quoted prices for identical or similar assets or liabilities in inactive markets; ● inputs other than quoted prices that are observable for the asset or liability; ● inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liabilitys fair value measurement level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. |
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 managements 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 March 31, 2016 and December 31, 2015, allowances for doubtful accounts were $864,000. Allowances charged for doubtful accounts amounted to $- for the three months ended March 31, 2016 and March 31, 2015. |
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 Companys cash is 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 $161,429 and $369,525 with Fulton Bank of New Jersey, $14,921 and $28,494 with Bank of America and $4,040 with PayPal as of March 31, 2016 and December 31, 2015. Concentration of credit risk with respect to trade receivables exists as approximately 74% of its revenue was generated by two customers for the three months ended March 31, 2016. These customers accounted for 30% of gross trade receivables (including related parties) as of March 31, 2016. 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 condensed consolidated statement of operations. Depreciation is recognized in the condensed consolidated 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 5-12 Furniture and fixtures 5-10 Computer equipment & software 3-5 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 persons breath, blood, urine and saliva. Propriety protection for the Companys products, technology and process is important to its competitive position. As of March 31, 2016, the Company has eleven patents from the United States Patent Office in effect (7,896,167; 8,097,171; 8,003,061; 8,425,859; 8,871,521; 8,808,639; 7,285,246; 7,837,936; 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 (1,515,170; 4,885,134; 4,931,821 and 5,775,790). 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 the statement of operations the year the patent is rejected. 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. (iii) 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. (iv) 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 12-17 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. 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. |
Investments | (n) Investments In accordance with FASB ASC 323, the Company recognizes investments in joint ventures based upon the Companys ability to significantly influence the operational or financial policies of the joint venture. An objective judgment of the level of influence is made at the time of the investment based upon several factors including, but not limited to the following: a) Representation on the Board of Directors b) Participation in policy-making processes c) Material intra-entity transactions d) Interchange of management personnel e) Technological dependencies f) Extent of ownership and the ability to influence decision making based upon the makeup of other owners when the shareholder group is small. The Company follows the equity method for valuating investments in joint ventures when the existence of significant influence over operational and financial policy has been established, as determined by management; otherwise, the Company will valuate these investments using the cost method. Investments recorded using the cost method will be assessed for any decrease in value that has occurred that is other than temporary and the other than temporary decrease in value shall be recognized. As and when circumstances and facts change, the Company will evaluate the Companys ability to significantly influence operational and financial policy to establish a basis for converting the investment accounted for using the cost method to the equity method of valuation. On March 9, 2015, the Company contributed capital of $64,675 in Hainan Savy Akers Biosciences, Ltd., a company incorporated in the Peoples Republic of China, resulting in a 19.9% ownership interest. The contribution was adjusted downward to $64,091 on April 8, 2015; the net effect of the currency conversion when the contribution was processed in Hainan. This is included in other assets in the condensed consolidated balance sheet as of March 31, 2016 and is accounted for using the cost method. |
Revenue Recognition | (o) 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 are necessary as of March 31, 2016 and December 31, 2015. The Company instituted a significant price increase for certain PIFA products effective May 1, 2015. In an effort to phase in the increase for existing customers, the Company is providing a rebate to its distributors for the price increase through March 31, 2016 for their existing customer base as of April 30, 2015. The Company has recorded rebates of $99,968, which is a reduction of revenue, for the three months ended March 31, 2016 for this program. Accounts receivable will be reduced when the rebates are applied by the customer. 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 | (p) 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 | (q) Shipping and Handling Fees and Costs The Company charges actual shipping plus a handling fee to customers, which amounted to $16,045 for the three months ended March 31, 2016 and $18,941 for the three months ended March 31, 2015. These fees are classified as part of product revenue in the condensed consolidated statements 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 $21,714 for the three months ended March 31, 2016 and $44,690 for the three months ended March 31, 2015. |
Research and Development Costs | (r) Research and Development Costs In accordance with FASB ASC 730, research and development costs are expensed when incurred. |
Stock-based Payments | (s) Stock-based Payments The Company accounts for stock-based compensation under the provisions of FASB ASC 718, CompensationStock 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. At the end of each financial reporting period, prior to vesting or prior to the completion of services, the fair value of equity based payments will be re-measured and the non-cash expense recognized during the period will be adjusted accordingly. Since the fair value of equity based payments granted to non-employees is subject to change in the future, the amount of the future expense will include fair value re-measurements until the equity based payments are fully vested or the service is completed. |
Basic and Diluted Earnings per Share of Common Stock | (t) 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 the basic and diluted loss per share for the three months ended March 31, 2016 and 2015 was based on a loss attributable to common stockholders of $1,508,929 and $1,321,799. 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 months ended March 31, 2016 and 2015 since the effect of options and warrants would be anti-dilutive due to the net loss attributable to the common stockholders for the periods. Instruments excluded from dilutive earnings per share, because their inclusion would be anti-dilutive, were 220,500 units of options for the three months ended March 31, 2016 and 175,000 units of options for the three months ended March 31, 2015. |
Recently Adopted Accounting Pronouncements | (u) Recently Adopted Accounting Pronouncements As of March 31, 2016 and for the three months then ended, there were no recently adopted accounting pronouncements that had a material effect on the Companys financial statements. |
Recently Issued Accounting Pronouncements not Yet Adopted | (v) Recently Issued Accounting Pronouncements not Yet Adopted As of March 31, 2016, there are no recently issued accounting standards not yet adopted which would have a material effect on the Companys financial statements through 2017. |
Significant Accounting Policies
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life of Property Plant and Equipment | The estimated useful lives for the current and comparative periods are as follows: Useful Life (in years) Plant and equipment 5-12 Furniture and fixtures 5-10 Computer equipment & software 3-5 |
Schedule of Estimated Useful Lives for Current and Comparative Period | The estimated useful lives for the current and comparative periods are as follows: Useful Life (in years) Patents and trademarks 12-17 Customer lists 5 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | This includes basing value on yields currently available on comparable securities of issuers with similar credit ratings. 2016 Accrued Unrealized Unrealized Fair Cost Income Gains Losses Value Level 2: Money market funds $ 1,837 $ 17 $ - $ - $ 1,854 US agency securities 40,307 66 - - 40,373 Certificates of deposits 1,070,000 1,193 2,712 - 1,073,905 Corporate securities 1,028,308 2,294 - (707 ) 1,029,895 Municipal securities 294,651 1,491 298 - 296,440 Total Level 2: 2,435,103 5,061 3,010 (707 ) 2,442,467 Total: $ 2,435,103 $ 5,061 $ 3,010 $ (707 ) $ 2,442,467 |
Schedule of Available Sale Securities Maturity | As of March 31, 2016, investments in money market funds, U.S. agency securities, certificates of deposit, corporate securities and municipal securities classified as available for sale mature as follows: Within After 1 Year 1 - 5 Years 5 - 10 Years 10 Years $ 1,030,868 $ 1,411,599 $ - $ - |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories at March 31, 2016 and December 31, 2015 consists of the following categories: 2016 2015 Raw Materials $ 387,269 $ 348,216 Sub-Assemblies 831,069 786,656 Finished Goods 22,759 25,721 Reserve for Obsolescence (28,939 ) (28,939 ) $ 1,212,158 $ 1,131,654 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment as of March 31, 2016 and December 31, 2015 are as follows: 2016 2015 Computer Equipment $ 110,649 $ 100,405 Computer Software 40,681 40,681 Office Equipment 39,959 50,049 Furniture & Fixtures 29,939 29,939 Machinery & Equipment 1,126,005 1,112,060 Molds & Dies 799,202 756,279 Leasehold Improvements 222,593 222,593 2,369,028 2,312,006 Less Accumulated Depreciation 2,047,813 2,060,861 $ 321,215 $ 251,145 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets as of March 31, 2016 and December 31, 2015 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, 2015 $ 2,626,996 $ 1,270,639 $ 3,897,635 Additions - - - Disposals - - - At March 31, 2016 $ 2,626,996 $ 1,270,639 $ 3,897,635 Accumulated Amortization At December 31, 2015 $ 1,154,113 $ 1,270,639 $ 2,424,752 Amortization Charge 42,777 - 42,777 Disposals - - - At March 31, 2016 $ 1,196,890 $ 1,270,639 $ 2,467,529 Net Book Value At December 31, 2015 $ 1,472,883 $ - $ 1,472,883 At March 31, 2016 $ 1,430,106 $ - $ 1,430,106 |
Trade and Other Payables (Table
Trade and Other Payables (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Trade and Other Payable | Trade and other payables as of March 31, 2016 and December 31, 2015 are as follows: 2016 2015 Trade Payables $ 694,900 $ 538,449 Accrued Expenses 753,523 1,020,532 Legal Settlements Payable 35,000 50,000 Deferred Compensation 59,750 59,750 $ 1,543,173 $ 1,668,731 |
Share-based Payments (Tables)
Share-based Payments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Options Activity | The following table summarizes the option activities for the three months ended March 31, 2016: Weighted Average Weighted Remaining Aggregate Number of Average Contractual Intrinsic Shares Exercise Price Term (years) Value Balance at December 31, 2015 220,500 $ 4.38 Granted - - Exercised - - Forfeited - - Canceled/Expired - - Balance at March 31, 2016 220,500 $ 4.38 Exercisable as of March 31, 2016 220,500 $ 4.38 3.56 $ 13,500 |
Commitments (Tables)
Commitments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Commitments | The schedule of lease commitments is as follows: Building Equipment Lease Lease Total Next 12 Months $ 132,000 $ 6,156 $ 138,156 Next 13-24 Months 132,000 6,156 138,156 Next 25-36 Months 132,000 6,156 138,156 Next 37-48 Months 99,000 3,591 102,591 |
Basis of Presentation and Sig33
Basis of Presentation and Significant Accounting Policies (Details Narrative) | Apr. 08, 2015USD ($) | Mar. 09, 2015USD ($) | Mar. 31, 2016USD ($)Breathlyzersshares | Mar. 31, 2015USD ($)shares | Dec. 31, 2015USD ($) |
Allowance for doubtful accounts receivable | $ 864,000 | $ 864,000 | |||
Allowances charged for doubtful accounts | |||||
Concentration risk percentage | 10.00% | ||||
Investment in Hainan Savy Akers Biosciences, Ltd. joint venture | $ 64,091 | $ 64,675 | |||
Percentage of ownership in Hainan Savy Akers Biosciences, Ltd. joint venture | 19.90% | ||||
Deferred revenue | $ 99,968 | ||||
Shipping, handling and transportation costs | 16,045 | $ 18,941 | |||
Cost of net revenue | 21,714 | 44,690 | |||
Net Loss Attributable to Common Stockholders | $ 1,508,929 | $ 1,321,799 | |||
Options [Member] | |||||
Antidilutive securities excluded from computation of earnings per share | shares | 220,500 | 175,000 | |||
Trade Receivable [Member] | |||||
Concentration risk percentage | 74.00% | ||||
Concentration risk, number of customer | Breathlyzers | 2 | ||||
Percentage of customer accounted for trade receivables | 30.00% | ||||
Fulton Bank of New Jersey [Member] | |||||
Cash | $ 161,429 | 369,525 | |||
Bank of America [Member] | |||||
Cash | 14,921 | 28,494 | |||
PayPal [Member] | |||||
Cash | $ 4,040 | $ 4,040 | |||
Minimum [Member] | |||||
Normal credit terms extended to customers | 30 days | ||||
Maximum [Member] | |||||
Normal credit terms extended to customers | 90 days | ||||
Cash, FDIC insured amount | $ 250,000 | ||||
Maximum [Member] | Patents [Member] | |||||
Finite-lived intangible asset, useful life | 17 years |
Basis of Presentation and Sig34
Basis of Presentation and Significant Accounting Policies - Schedule of Estimated Useful Life of Property Plant and Equipment (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Plant and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Plant and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 12 years |
Furniture & Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture & Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Basis of Presentation and Sig35
Basis of Presentation and Significant Accounting Policies - Schedule of Estimated Useful Life of Intangible Assets (Details) | 3 Months Ended |
Mar. 31, 2016 | |
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 |
Marketable Securities (Details
Marketable Securities (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Unrealized Gains/(Losses) on Marketable Securities | $ 8,534 | $ 26,713 |
Proceeds from the sale of marketable securities | 1,601,456 | 1,253,436 |
Gross gain on securities | $ 308 | $ 448 |
Minimum [Member] | ||
Maturities of securities | 1 year | |
Maximum [Member] | ||
Maturities of securities | 2 years |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities (Details) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |
Cost | $ 2,435,103 |
Accrued Income | 5,061 |
Unrealized Gains | 3,010 |
Unrealized Losses | (707) |
Fair Value | 2,442,467 |
Fair Value, Inputs, Level 2 [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Cost | 2,435,103 |
Accrued Income | 5,061 |
Unrealized Gains | 3,010 |
Unrealized Losses | (707) |
Fair Value | 2,442,467 |
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Cost | 1,837 |
Accrued Income | $ 17 |
Unrealized Gains | |
Unrealized Losses | |
Fair Value | $ 1,854 |
Fair Value, Inputs, Level 2 [Member] | US Agency Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Cost | 40,307 |
Accrued Income | $ 66 |
Unrealized Gains | |
Unrealized Losses | |
Fair Value | $ 40,373 |
Fair Value, Inputs, Level 2 [Member] | Certificates of Deposits [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Cost | 1,070,000 |
Accrued Income | 1,193 |
Unrealized Gains | $ 2,712 |
Unrealized Losses | |
Fair Value | $ 1,073,905 |
Fair Value, Inputs, Level 2 [Member] | Corporate Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Cost | 1,028,308 |
Accrued Income | $ 2,294 |
Unrealized Gains | |
Unrealized Losses | $ (707) |
Fair Value | 1,029,895 |
Fair Value, Inputs, Level 2 [Member] | Municipal Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Cost | 294,651 |
Accrued Income | 1,491 |
Unrealized Gains | $ 298 |
Unrealized Losses | |
Fair Value | $ 296,440 |
Marketable Securities - Sched38
Marketable Securities - Schedule of Available Sale Securities Maturity (Details) | Mar. 31, 2016USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Within 1 Year | $ 1,030,868 |
1 - 5 Years | $ 1,411,599 |
5 - 10 Years | |
After 10 Years |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Inventory Disclosure [Abstract] | ||
Cost of goods sold for obsolete inventory | $ 2,968 |
Inventories - Schedule of Inve
Inventories - Schedule of Inventories (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 387,269 | $ 348,216 |
Sub-Assemblies | 831,069 | 786,656 |
Finished Goods | 22,759 | 25,721 |
Reserve for Obsolescence | (28,939) | (28,939) |
Inventory, Net, Total | $ 1,212,158 | $ 1,131,654 |
Property, Plant and Equipment41
Property, Plant and Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 13,702 | $ 15,706 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 2,369,028 | $ 2,312,006 |
Accumulated Depreciation | 2,047,813 | 2,060,861 |
Property, Plant and Equipment, Net | 321,215 | 251,145 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 110,649 | 100,405 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 40,681 | 40,681 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 39,959 | 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 | 1,126,005 | 1,112,060 |
Molds & Dies [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 799,202 | 756,279 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 222,593 | $ 222,593 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 42,777 | $ 64,643 |
Intangible Assets - Schedule o
Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost or Deemed Cost, Beginning Balance | $ 3,897,635 | |
Cost or Deemed Cost, Additions | ||
Cost or Deemed Cost, Disposals | ||
Cost or Deemed Cost, Ending Balance | $ 3,897,635 | |
Accumulated Amortization, Beginning Balance | 2,424,752 | |
Accumulated Amortization, Amortization Charge | $ 42,777 | $ 64,643 |
Accumulated Amortization, Disposals | ||
Accumulated Amortization, Ending Balance | $ 2,467,529 | |
Net Book Value, Beginning Balance | 1,472,883 | |
Net Book Value, Ending Balance | 1,430,106 | |
Patents & Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost or Deemed Cost, Beginning Balance | $ 2,626,996 | |
Cost or Deemed Cost, Additions | ||
Cost or Deemed Cost, Disposals | ||
Cost or Deemed Cost, Ending Balance | $ 2,626,996 | |
Accumulated Amortization, Beginning Balance | 1,154,113 | |
Accumulated Amortization, Amortization Charge | $ 42,777 | |
Accumulated Amortization, Disposals | ||
Accumulated Amortization, Ending Balance | $ 1,196,890 | |
Net Book Value, Beginning Balance | 1,472,883 | |
Net Book Value, Ending Balance | 1,430,106 | |
Distributor & Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost or Deemed Cost, Beginning Balance | $ 1,270,639 | |
Cost or Deemed Cost, Additions | ||
Cost or Deemed Cost, Disposals | ||
Cost or Deemed Cost, Ending Balance | $ 1,270,639 | |
Accumulated Amortization, Beginning Balance | $ 1,270,639 | |
Accumulated Amortization, Amortization Charge | ||
Accumulated Amortization, Disposals | ||
Accumulated Amortization, Ending Balance | $ 1,270,639 | |
Net Book Value, Beginning Balance | ||
Net Book Value, Ending Balance |
Trade and Other Payables (Detai
Trade and Other Payables (Details Narrative) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Trade and other payables are non-interest bearing, terms | 30 days |
Trade and Other Payables - Sche
Trade and Other Payables - Schedule of Trade and Other Payable (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Trade Payables | $ 694,900 | $ 538,449 |
Accrued Expenses | 753,523 | 1,020,532 |
Legal Settlements Payable | 35,000 | 50,000 |
Deferred Compensation | 59,750 | 59,750 |
Trade and Other Payables, Total | $ 1,543,173 | $ 1,668,731 |
Share-based Payments (Details N
Share-based Payments (Details Narrative) - USD ($) | Jan. 23, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Jan. 09, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock option issued | 175,000 | |||
Number of stock option exercise price per share | $ 1.68 | |||
Aggregate intrinsic value exercise price of options | $ 1.68 | |||
Fair value of stock options vested | ||||
Unrecognized compensation cost | ||||
2013 Stock Incentive Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock option issued | 400,000 | |||
Amended And Restated 2013 Incentive Stock And Award Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized during period | 800,000 |
Share-based Payments - Summary
Share-based Payments - Summary of Stock Options Activity (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number of Shares, Beginning | 220,500 | |
Number of Shares, Granted | 175,000 | |
Number of Shares, Exercised | ||
Number of Shares, Forfeited | ||
Number of Shares, Canceled/Expired | ||
Number of Shares, Ending | 220,500 | |
Number of Shares, Exercisable | 220,500 | |
Weighted Average Exercise Price, Beginning | $ 4.38 | |
Weighted Average Exercise Price, Granted | $ 1.68 | |
Weighted Average Exercise Price, Exercised | ||
Weighted Average Exercise Price, Forfeited | ||
Weighted Average Exercise Price, Canceled/Expired | ||
Weighted Average Exercise Price, Ending | $ 4.38 | |
Weighted Average Exercise Price, Exercisable | $ 4.38 | |
Options Exercisable Weighted Average Remaining | 3 years 6 months 22 days | |
Aggregate Intrinsic Value, Exercisable | $ 13,500 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | Dec. 29, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Issuance of Common Stock for Services, Value | $ (8,241) | |||
Common stock reserve | 220,500 | 220,500 | ||
Legal Services [Member] | ||||
Issuance of Common Stock for Services | 30,000 | |||
Issuance of Common Stock for Services, Value | $ 36,900 | |||
Directors and Officers [Member] | ||||
Issuance of Common Stock for Services | 227,708 | |||
Issuance of Common Stock for Services, Value | $ 280,081 | |||
Key Employees [Member] | ||||
Issuance of Common Stock for Services | 22,500 | |||
Issuance of Common Stock for Services, Value | $ 27,675 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Jun. 19, 2012 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Related Party Transactions [Abstract] | ||||
Exclusive license and supply agreement term | 3 years | |||
License fees received | $ 1,000,000 | |||
Cost of molds and sample components | $ 42,093 | |||
Cost of sample components included in research and development expenses | 1,020 | |||
Cost of molds included in property, plant and equipment | 41,073 | |||
Trade receivables related party | $ 31,522 | $ 31,512 | ||
Product revenue from related party | $ 14,343 |
Commitments (Details Narrative)
Commitments (Details Narrative) - USD ($) | Sep. 29, 2014 | Jan. 07, 2013 | Jan. 01, 2008 | Mar. 31, 2016 | Mar. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | |||||
Operating leases rent expense net | $ 6,156 | $ 132,000 | $ 130,200 | ||
Lease agreement term | 60 months | 7 years | |||
Lease expiration date | Dec. 31, 2019 | ||||
Rent expense, including related CAM charges | $ 40,290 | $ 40,290 |
Commitments - Schedule of Futur
Commitments - Schedule of Future Minimum Rental Payments for Operating Leases (Details) | Mar. 31, 2016USD ($) |
Next 12 Months | $ 138,156 |
Next 13-24 Months | 138,156 |
Next 25-36 Months | 138,156 |
Next 37-48 Months | 102,591 |
Building Lease [Member] | |
Next 12 Months | 132,000 |
Next 13-24 Months | 132,000 |
Next 25-36 Months | 132,000 |
Next 37-48 Months | 99,000 |
Equipment Lease [Member] | |
Next 12 Months | 6,156 |
Next 13-24 Months | 6,156 |
Next 25-36 Months | 6,156 |
Next 37-48 Months | $ 3,591 |
Major Customers (Details Narrat
Major Customers (Details Narrative) | 3 Months Ended | |
Mar. 31, 2016USD ($)Breathlyzers | Mar. 31, 2015Breathlyzers | |
Concentration risk, percentage | 10.00% | |
Customers Two [Member] | ||
Concentration risk, percentage | 10.00% | 10.00% |
Customers [Member] | ||
Concentration risk, percentage | 74.00% | 66.00% |
Concentration risk, number of customer | Breathlyzers | 2 | 2 |
Due from customers | $ | $ 500,742 | |
Customers One [Member] | ||
Concentration risk, percentage | 10.00% |
Major Suppliers (Details Narrat
Major Suppliers (Details Narrative) | 3 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015Breathlyzers | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Concentration risk percentage | 10.00% | |
Supplier One [Member] | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Concentration risk percentage | 10.00% | 10.00% |
Supplier Two [Member] | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Concentration risk percentage | 10.00% | 10.00% |
Suppliers [Member] | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Concentration risk percentage | 23.00% | 45.00% |
Concentration risk, number of suppliers | Breathlyzers | 2 | |
Due to suppliers | $ |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - NovoTek Pharmaceuticals Limited [Member] - USD ($) | Apr. 29, 2016 | Feb. 29, 2016 | Mar. 31, 2016 |
Proceeds from related party debt | $ 250,000 | ||
Order received amount | $ 2,500,000 | ||
June 30, 2016 [Member] | |||
Revenue from sale | $ 500,000 |