Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 06, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Andalay Solar, Inc. | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 103,044,402 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001347452 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets | ' | ' |
Cash | $379,476 | $127,385 |
Accounts receivable, net | 33,779 | 365,845 |
Other receivables | 42 | 121,990 |
Inventory, net | 1,056,941 | 995,713 |
Prepaid expenses and other current assets | 223,352 | 420,108 |
Assets of discontinued operations | ' | 10,896 |
Total current assets | 1,693,590 | 2,041,937 |
Property and equipment, net | 19,094 | 46,877 |
Patents, net | 1,273,813 | 1,329,046 |
Other assets, net | 156,067 | 183,258 |
Assets of discontinued operations – long-term | 200,000 | 200,000 |
Total assets | 3,342,564 | 3,801,118 |
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ (Deficit) | ' | ' |
Accounts payable | 4,305,865 | 3,329,537 |
Accrued liabilities | 67,853 | 488,956 |
Accrued warranty | 331,390 | 329,680 |
Common stock warrant liability | 0 | 9 |
Credit facility | 350,000 | ' |
Capital lease obligations – current portion | 1,288 | 4,385 |
Liabilities of discontinued operations | 990,933 | 1,052,819 |
Total current liabilities | 6,047,329 | 5,205,386 |
Capital lease obligations, less current portion | ' | 328 |
Convertible note – long term | 201,363 | ' |
Total liabilities | 6,248,692 | 5,205,714 |
Commitments and contingencies (Note 17) | 0 | 0 |
Common stock, $0.001 par value; 500,000,000 shares authorized; 91,931,852 and 26,924,643 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively (Note 1) | 91,932 | 26,925 |
Additional paid-in capital | 78,298,140 | 76,455,054 |
Accumulated deficit | -82,766,982 | -79,611,493 |
Total stockholders’ deficit | -4,111,548 | -2,388,343 |
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit | 3,342,564 | 3,801,118 |
Redeemable Convertible Preferred Stock [Member] | Series C Preferred Stock [Member] | ' | ' |
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ (Deficit) | ' | ' |
Convertible redeemable preferred stock | 180,468 | 983,747 |
Redeemable Convertible Preferred Stock [Member] | Series D Preferred Stock [Member] | ' | ' |
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ (Deficit) | ' | ' |
Convertible redeemable preferred stock | 1,024,952 | ' |
Redeemable Convertible Preferred Stock [Member] | Series B Preferred Stock [Member] | ' | ' |
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ (Deficit) | ' | ' |
Series B convertible redeemable preferred stock, $0.001 par value; 823 and 2,243 shares issued and outstanding on September 30, 2013 and December 31, 2012, respectively | 265,362 | 741,171 |
Series D Preferred Stock [Member] | ' | ' |
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ (Deficit) | ' | ' |
Credit facility | $350,000 | ' |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Redeemable Convertible Preferred Stock [Member] | Redeemable Convertible Preferred Stock [Member] | Redeemable Convertible Preferred Stock [Member] | Redeemable Convertible Preferred Stock [Member] | Redeemable Convertible Preferred Stock [Member] | Redeemable Convertible Preferred Stock [Member] | |||
Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | |||
Convertible redeemable preferred stock, par value (in Dollars per share) | ' | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' |
Convertible redeemable preferred stock, shares issued (in Shares) | ' | ' | 97 | 800 | 950 | 0 | ' | ' |
Convertible redeemable preferred stock, shares outstanding (in Shares) | ' | ' | 97 | 800 | 950 | 0 | ' | ' |
Series B convertible redeemable preferred stock par value (in Dollars per share) | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 |
Series B convertible redeemable preferred stock shares issued (in Shares) | ' | ' | ' | ' | ' | ' | 823 | 2,243 |
Series B convertible redeemable preferred stock shares outstanding (in Shares) | ' | ' | ' | ' | ' | ' | 823 | 2,243 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized (in Shares) | 500,000,000 | 500,000,000 | ' | ' | ' | ' | ' | ' |
Common stock, shares issued (in Shares) | 91,931,852 | 26,924,643 | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding (in Shares) | 91,931,852 | 26,924,643 | ' | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net revenue | $156,630 | $838,446 | $367,870 | $4,469,997 |
Cost of goods sold | 167,891 | 1,063,538 | 407,359 | 4,486,541 |
Gross loss | -11,261 | -225,092 | -39,489 | -16,544 |
Operating expenses | ' | ' | ' | ' |
Sales and marketing | 201,590 | 536,463 | 804,048 | 1,627,166 |
General and administrative | 595,241 | 1,458,468 | 1,816,338 | 5,185,762 |
Total operating expenses | 796,831 | 1,994,931 | 2,620,386 | 6,812,928 |
Loss from continuing operations | -808,092 | -2,220,023 | -2,659,875 | -6,829,472 |
Other income (expense) | ' | ' | ' | ' |
Interest income (expense), net | -1,367 | -36,433 | -6,730 | -71,219 |
Adjustment to the fair value of common stock warrants | ' | 8,972 | 9 | -417,668 |
Other income | ' | ' | 420,000 | ' |
Total other income (expense), net | -1,367 | -27,461 | 413,279 | -488,887 |
Loss before provision for income taxes and discontinued operations | -809,459 | -2,247,484 | -2,246,596 | -7,318,359 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss from continuing operations | -809,459 | -2,247,484 | -2,246,596 | -7,318,359 |
Net income from discontinued operations, net of tax (Note 3) | 3,200 | 8,932 | 10,797 | 31,905 |
Net loss | -806,259 | -2,238,552 | -2,235,799 | -7,286,454 |
Preferred stock dividend | -28,980 | -75,331 | -124,509 | -117,618 |
Preferred deemed dividend | -501,304 | 0 | -875,304 | 0 |
Net loss attributable to common stockholders | ($1,336,543) | ($2,313,883) | ($3,235,612) | ($7,404,072) |
Net loss attributable to common stockholders per common and common equivalent share (basic and diluted) (in Dollars per share) | ($0.02) | ($0.11) | ($0.06) | ($0.40) |
Weighted average shares used in computing loss per common share: (basic and diluted) (in Shares) | 81,746,372 | 19,883,887 | 56,695,767 | 18,163,851 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity (Unaudited) (USD $) | Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Series C Convertible Redeemable Preferred Stock [Member] | Series D Convertible Redeemable Preferred Stock [Member] | Total |
Series C Convertible Redeemable Preferred Stock [Member] | Series D Convertible Redeemable Preferred Stock [Member] | Series B Convertible Redeemable Preferred Stock [Member] | Series C Convertible Redeemable Preferred Stock [Member] | Series D Convertible Redeemable Preferred Stock [Member] | Series B Convertible Redeemable Preferred Stock [Member] | Series C Convertible Redeemable Preferred Stock [Member] | Series D Convertible Redeemable Preferred Stock [Member] | Series B Convertible Redeemable Preferred Stock [Member] | ||||||||||
Balance at January 1, 2013 at Dec. 31, 2012 | ' | $983,747 | ' | ' | ' | $741,171 | ' | ' | ' | $26,925 | ' | ' | ' | $76,455,054 | ($79,611,493) | ' | ' | ($2,388,343) |
Balance at January 1, 2013 (in Shares) at Dec. 31, 2012 | ' | 800 | ' | ' | ' | 2,243 | ' | ' | ' | 26,924,643 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of convertible redeemable preferred stock for cash | 75,000 | ' | 475,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of convertible redeemable preferred stock for cash (in Shares) | 75 | ' | 950 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Return of Series D convertible redeemable preferred stock | ' | ' | ' | -80,123 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,123 | ' | ' | 80,123 |
Return of Series D convertible redeemable preferred stock (in Shares) | ' | ' | ' | -200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of Series D convertible redeemable preferred stock for payment of financial advisor fees | ' | ' | ' | 210,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of Series D convertible redeemable preferred stock for payment of financial advisor fees (in Shares) | ' | ' | ' | 230 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred deemed dividend | ' | 410,227 | ' | 465,077 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -875,304 | ' | ' | -875,304 |
Conversion of Convertible Redeemable preferred stock to common stock | -1,288,506 | ' | -45,002 | ' | -475,809 | ' | 17,978 | 1,500 | 42,278 | ' | 1,270,528 | 43,502 | 433,531 | ' | ' | 1,288,506 | 45,002 | ' |
Conversion of Convertible Redeemable preferred stock to common stock (in Shares) | -778 | ' | -30 | ' | -1,420 | ' | 17,977,766 | 1,500,000 | 42,277,814 | ' | ' | ' | ' | ' | ' | ' | ' | 43,430,415 |
Convertible Redeemable Preferred Stock dividends paid in common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,277 | ' | ' | ' | 121,232 | -124,509 | ' | ' | ' |
Convertible Redeemable Preferred Stock dividends paid in common stock (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,276,647 | ' | ' | ' | ' | ' | ' | ' | ' |
Placement agent and registration fees and other direct costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -55,919 | ' | ' | ' | -55,919 |
Grants of restricted stock, net of forfeitures and upon exercise or expiration of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | -26 | ' | ' | ' | -276 | ' | ' | ' | -302 |
Grants of restricted stock, net of forfeitures and upon exercise or expiration of warrants (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -25,018 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,488 | ' | ' | ' | 30,488 |
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,235,799 | ' | ' | -2,235,799 |
Balance at September 30, 2013 at Sep. 30, 2013 | ' | $180,468 | ' | $1,024,952 | ' | $265,362 | ' | ' | ' | $91,932 | ' | ' | ' | $78,298,140 | ($82,766,982) | ' | ' | ($4,111,548) |
Balance at September 30, 2013 (in Shares) at Sep. 30, 2013 | ' | 97 | ' | 950 | ' | 823 | ' | ' | ' | 91,931,852 | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities | ' | ' |
Net loss | ($2,235,799) | ($7,286,454) |
Depreciation | 27,784 | 120,345 |
Amortization | 83,969 | 39,844 |
Bad debt expense | 89,325 | 476,258 |
Inventory impairment | ' | 271,269 |
Unrealized (gain) loss on fair value adjustment of common stock warrants | -9 | 417,668 |
Non-cash stock-based compensation expense | 30,488 | 570,402 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 242,741 | 710,603 |
Other receivables | 121,948 | 1,816 |
Inventory | -61,228 | 2,335,640 |
Prepaid expenses and other current assets | 196,756 | 482,851 |
Assets of discontinued operations b short term | 10,895 | 76,203 |
Assets held for sale | ' | 2,723 |
Other assets | -1,546 | -637,054 |
Assets of discontinued operations b long-term | ' | 9,913 |
Accounts payable | 1,186,329 | 452,710 |
Accrued liabilities and accrued warranty | -419,393 | 544,003 |
Liabilities of discontinued operations | -61,886 | -233,061 |
Net cash used in operating activities | -789,626 | -1,644,321 |
Cash flows from financing activities | ' | ' |
Borrowing on convertible note payable | 201,363 | ' |
Repayment notes payable | ' | -283,252 |
Borrowing (repayment) on line of credit | 350,000 | ' |
Repayment on line of credit, net | ' | -39,473 |
Repayments on capital lease obligations | -3,425 | -3,502 |
Proceeds from redeemable preferred stock offering | 550,000 | ' |
Proceeds from securities purchase agreement | ' | 500,000 |
Proceeds from exercise of warrants | ' | 283,334 |
Payment of placement agent and registration fees and other direct costs | -55,919 | -90,754 |
Employee taxes paid for vesting of restricted stock | -302 | -12,535 |
Net cash provided by financing activities | 1,041,717 | 353,818 |
Net increase (decrease) in cash | 252,091 | -1,290,503 |
Cash | ' | ' |
Beginning of period | 127,385 | 1,346,777 |
End of period | 379,476 | 56,274 |
Supplemental cash flows disclosures: | ' | ' |
Cash paid during the period for interest | 6,759 | 20,812 |
Supplemental disclosure of non-cash financing activity: | ' | ' |
Conversion of preferred stock to common stock | 1,809,317 | ' |
Conversion of common stock warrant liability upon exercise of warrants | ' | 252,765 |
Return of Series D Convertible Prefered Stock | 80,123 | ' |
Reclassification of common stock liability upon modification of warrants | ' | 481,242 |
Preferred deemed dividend | 875,304 | 0 |
Preferred stock dividends paid in common stock | 124,509 | 117,618 |
Preferred stock issued for payment of financial advisor fees | 210,000 | ' |
Satisfaction of Accounts Payable [Member] | ' | ' |
Supplemental disclosure of non-cash financing activity: | ' | ' |
Stock issued | ' | 1,045,000 |
Inventory Procurement [Member] | ' | ' |
Supplemental disclosure of non-cash financing activity: | ' | ' |
Stock issued | ' | $97,800 |
Note_1_Basis_of_Presentation_a
Note 1 - Basis of Presentation and Description of Business | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Business Description and Basis of Presentation [Text Block] | ' |
1. Basis of Presentation and Description of Business | |
Basis of Presentation — Interim Financial Information | |
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with generally accepted accounting principles for interim financial information. They should be read in conjunction with the financial statements and related notes to the financial statements of Andalay Solar, Inc. (“we”, “us”, “our” or the “Company”), formerly Westinghouse Solar, Inc. and Akeena Solar, Inc., for the years ended December 31, 2012 and 2011 appearing in our Form 10-K. The September 30, 2013 unaudited interim consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements filed with our Annual Report on Form 10-K have been condensed or omitted as permitted by those rules and regulations. In the opinion of management, all adjustments, consisting of normal recurring accruals, necessary for a fair statement of the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. | |
Description of Business | |
We are a designer and manufacturer of solar power systems and solar panels with integrated microinverters (which we call AC solar panels). We design, market and sell these solar power systems to solar installers and do-it-yourself customers through distribution partnerships, our dealer network and retail outlets. Our products are designed for use in solar power systems for residential and commercial rooftop customers. Prior to September 2010, we were also in the solar power installation business. | |
We were incorporated in February 2001 as Akeena Solar, Inc. in the State of California and elected at that time to be taxed as an S corporation. During June 2006, we reincorporated in the State of Delaware and became a C corporation. On August 11, 2006, we entered into a reverse merger transaction with Fairview Energy Corporation, Inc. (“Fairview”). Pursuant to the Merger, the stockholders of the Company received one share of Fairview common stock for each issued and outstanding share of The Company’s common stock. The Company’s common shares were also adjusted from $0.01 par value to $0.001 par value at the time of the Merger. On May 17, 2010, we entered into an exclusive worldwide license agreement with Westinghouse, Inc, which permitted us to manufacture, distribute and market solar panels under the Westinghouse name and in connection therewith, on April 6, 2011, we changed our name to Westinghouse Solar, Inc. On August 23, 2013, the license agreement with Westinghouse, Inc. was terminated and on September 19, 2013, we changed our name to our current name, Andalay Solar, Inc. | |
On May 7, 2012, we entered into a merger agreement with CBD Energy Limited, an Australian corporation ("CBD"). We had originally targeted completion of the merger during the third quarter of 2012, however the target date for completion had been repeatedly delayed, and the necessary registration statement had yet to be completed and filed. The uncertainty resulted in a disruption in our supply relationships, leading to a significant decline in our revenue and the implementation of significant cost reductions including the layoff of employees during the time we pursued the merger. Given the continued delays and uncertainty of whether and when the closing conditions for the merger as set for in the merger agreement will be satisfied, we terminated the merger agreement with CBD effective July 18, 2013. We are now committed to focus our attention on rebuilding our core business, expanding our current product offerings and exploring strategic opportunities. | |
Our Corporate headquarters is located at 1475 S. Bascom Ave., Campbell, CA 95008. Our telephone number is (408) 402-9400. Additional information about Andalay Solar is available on our website at http://www.Andalaysolar.com. The information on our web site is not incorporated herein by reference. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||
2. Significant Accounting Policies | |||||||||
Liquidity and Financial Position | |||||||||
We currently face challenges meeting the working capital needs of our business. Our primary requirements for working capital are to fund purchases for solar panels and microinverters, and to cover our payroll and lease expenses. For each quarter in 2013 and for each of the two years in the period ending December 31, 2012, we have incurred net losses and negative cash flows from operations. During the recent years, we have undertaken several equity and debt financing transactions to provide the capital needed to sustain our business. We have dramatically reduced our headcount and other variable expenses. In addition, we expect to incur a net loss from operations for the year ending December 31, 2013. As of September 30, 2013, we had approximately $379,000 in cash on hand. Based on current cash projections for the remainder of 2013, we intend to address ongoing working capital needs through liquidation of remaining inventory, along with raising additional debt and equity financing. In January 2013, our board of directors approved actions to dramatically reduce our variable operating costs, including a 12 person employee headcount reduction effective January 15, 2013, for the period through the anticipated merger closing with CBD, which merger was terminated in July 2013. No restructuring charges or severance payments were incurred. Our revenue levels remain difficult to predict, and we anticipate that we will continue to sustain losses in the near term, and we cannot assure investors that we will be successful in reaching break-even. | |||||||||
During 2012, because of our cash position and liquidity constraints, we were late in making payments to both of our former panel suppliers, Suntech and Lightway. We currently have no unshipped orders from these suppliers. In May 2013, we entered into a new supply agreement for assembly of our proprietary modules with Environmental Engineering Group Pty Ltd (“EEG”), an assembler of polycrystalline modules located in Australia. In August 2013, we began receiving product from EEG and began shipping product to customers during the third calendar quarter of this year. We anticipate increased shipments to customers during the fourth quarter of 2013. We have remaining panel inventory on hand as of September 30, 2013 and anticipate receiving a final shipment of product in November 2013, fulfilling our purchase order with EEG. In September 2013, we entered into a second supply agreement for assembly of our proprietary modules with Tianwei New Energy Co, Ltd., a panel supplier located in China. We anticipate beginning to receive product from this new supplier beginning in the first quarter of 2014. Although we believe we can find alternative suppliers for solar panels manufactured to our specifications, our operations would be disrupted unless we are able to rapidly secure alternative sources of supply, our inventory and revenue could diminish significantly, causing disruption to our operations. | |||||||||
On August 30, 2013, we entered into a securities purchase agreement with certain institutional accredited investors relating to the sale and issuance of a convertible note in the principal amount of $200,000 that matures August 29, 2015 (the "Convertible Note"). The Convertible Note bears interest at the rate of 8% per annum compounded annually, is payable at maturity and the principal and interest outstanding under the Convertible Note are convertible into shares of our common stock, at any time after issuance, at the option of the purchaser, at a conversion price equal to $.02, subject to adjustment upon the happening of certain events, including stock dividends, stock splits and the issuance of common stock equivalents at a price below the conversion price. Subject to our fulfilling certain conditions, including beneficial ownership limits, the Convertible Note is subject to a mandatory conversion if the closing price of our common stock for any 20 consecutive days commencing six months after the issue date of the Convertible Note equals or exceeds $0.04. Unless waived in writing by the purchaser, no conversion of the Convertible Note can be effected to the extent that as a result of such conversion the purchaser would beneficially own more than 9.99% in the aggregate of our issued and outstanding common stock immediately after giving effect to the issuance of common stock upon conversion. We have the option of repaying the outstanding principal amount of the Convertible Note, in whole or in part, by paying the purchaser a sum of money equal to one hundred and twenty percent (120%) of the principal together with accrued but unpaid interest upon 30 days notice, subject to certain beneficial ownership limits. For so long as we have any obligation under the Convertible Note, we have agreed to certain restrictions regarding, among other things, incurrence of additional debt, liens, amendments to charter documents, repurchase of stock, payment of cash dividends, affiliated transactions. We are also prohibited from entering into certain variable priced agreements until the Convertible Note is repaid in full. | |||||||||
On September 30, 2013, we entered into a loan and security agreement with Alpha Capital Anstalt and Collateral Services, LLC to provide financing, on a discretionary basis, for one year, against our accounts receivable and inventory. The maximum amount that can be borrowed under the Agreement is $500,000. We have the right to borrow up to 80% of our eligible accounts receivable, not in excess of $200,000, 50% of the value of our raw materials in inventory, 65% of our finished goods inventory and 95% of cash, but not in the aggregate amount in excess of $300,000. The advances are secured by a lien on all of our assets. All advances under the agreement bear interest at a per annum rate of 12% and monthly interest shall be a minimum of $500. At the time of initial funding we paid a loan fee of 50 shares of our Series D Preferred Shares to the lender, in addition to other payments for legal fees. In addition, we paid the collateral agent an initial fee of $5,000 and have agreed to pay an administrative fee to the collateral agent of 0.5% per month of the daily balance during the preceding month or $500 whichever is less. In the event of a prepayment, we are obligated to pay a prepayment fee in an amount equal to one-half of one percent (0.5%) of $500,000. On September 30, 2013, we requested and received an initial borrowing under the Agreement totaling $350,000. Subsequently, on October 21, 2013, we requested and received an additional $100,000. | |||||||||
The accompanying consolidated financial statements have been prepared assuming we will continue as a going concern. Our significant operating losses, negative cash flow from operations, and challenges in rapidly securing alternative sources of supply for solar panels, raise substantial uncertainty about our ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty, and contemplate the realization of assets and the settlement of liabilities and commitments in the normal course of business. There can be no assurance that we will be able to raise additional funds on commercially reasonable terms, if at all. The current economic downturn adds uncertainty to our anticipated revenue levels and to the timing of cash receipts, which are needed to support our operations. It also worsens the market conditions for seeking equity and debt financing. As a result of our delisting from the Nasdaq Capital Market in September 2012, we are no longer eligible to file new registration statements on Form S-3, which may make it more costly and more difficult for us to obtain additional equity financing. We currently anticipate that we will retain all of our earnings, if any, for development of our business and do not anticipate paying any cash dividends on common stock in the foreseeable future. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||
Revenue Recognition | |||||||||
Revenue from sales of products is recognized when: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the sale price is fixed or determinable, and (4) collection of the related receivable is reasonably assured. We recognize revenue when the solar power systems are shipped to the customer. | |||||||||
Cash and Cash Equivalents | |||||||||
We consider all highly liquid investments with maturities of three months or less, when purchased, to be cash equivalents. We maintain cash and cash equivalents which consist principally of demand deposits with high credit quality financial institutions. At certain times, such amounts exceed FDIC insurance limits. We have not experienced any losses on these investments and, as of September 30,2013 and December 31, 2012, there were no cash equivalents. | |||||||||
Accounts Receivable | |||||||||
Accounts receivable consist of trade receivables. We regularly evaluate the collectability of our accounts receivable. An allowance for doubtful accounts is maintained for estimated credit losses, and such losses have historically been minimal and within our expectations. We consider a number of factors when estimating credit losses, including the aging of a customer’s account, creditworthiness of specific customers, historical trends and other information. | |||||||||
Discontinued Operations | |||||||||
Discontinued operations are presented and accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC") ASC 360, “Impairment or Disposal of Long-Lived Assets,” (ASC 360). When a qualifying component of the Company is disposed of or has been classified as held for sale, the operating results of that component are removed from continuing operations for all periods presented and displayed as discontinued operations if: (a) elimination of the component’s operations and cash flows from the Company’s ongoing operations has occurred (or will occur) and (b) significant continuing involvement by the Company in the component’s operations does not exist after the disposal transaction. | |||||||||
On September 10, 2010, we announced that we were exiting the solar panel installation business. The exit from the installation business was essentially completed by the end of 2010, other than potential warranty payments related to past installations. (See “Manufacturer and Installation Warranties”). The exit from the installation business was therefore classified as discontinued operations for all periods presented under the requirements of ASC 360. | |||||||||
Manufacturer and Installation Warranties | |||||||||
The manufacturer directly warrants the solar panels and inverters for a range from 15 to 25 years. We warrant the balance of system components of our products against defects in material and workmanship for five years. We assist our customers in the event of a claim under the manufacturer warranty to replace a defective solar panel or inverter. The warranty liability for the material and the workmanship of the balance of system components of approximately $331,000 at September 30, 2013 and $330,000 at December 31, 2012, is included within “Accrued warranty” in the accompanying consolidated balance sheets. | |||||||||
The liability for our manufacturing warranty consists of the following: | |||||||||
September 30, 2013 (Unaudited) | 31-Dec-12 | ||||||||
Beginning accrued warranty balance | $ | 329,680 | $ | 217,812 | |||||
Reduction for labor payments and claims made under the warranty | (1,700 | ) | (1,723 | ) | |||||
Accruals related to warranties issued during the period | 3,410 | 113,591 | |||||||
Ending accrued warranty balance | $ | 331,390 | $ | 329,680 | |||||
We previously recorded a provision for warranty liability related to our discontinued installation operations. We provided for a 5-year or a 10-year warranty on the installation of a system and all equipment and incidental supplies other than solar panels and inverters that are covered under the manufacturer warranty. The liability for the installation warranty of approximately $991,000 at September 30, 2013 and $1 million at December 31, 2012 is included within "Liabilities of Discontinued Operations" in the accompanying condensed consolidated balance sheets. Defective solar panels or inverters are covered under the manufacturer warranty. In the event that a panel or inverter needs to be replaced, we will replace the defective item within the manufacturer's warranty period (between 5-25 years). | |||||||||
Patent Costs | |||||||||
We capitalize external legal costs and filing fees associated with obtaining or defending our patents. Upon issuance of new patents or successful defense of existing patents, we amortize these costs using the straight line method over the shorter of the legal life of the patent or its economic life. We believe the remaining useful life we assign to these patents, approximately 11.25 years as of September 30, 2013, are reasonable. We periodically review our patents to determine whether any such cost have been impaired and are no longer being used. To the extent we are no longer using certain patents, the associated costs will be written off at that time. | |||||||||
Significant Accounting Policies and Estimates | |||||||||
There have been no material developments or changes to the significant accounting policies discussed in our 2012 Annual Report on Form 10-K or accounting pronouncements issued or adopted, except as described below. | |||||||||
Recently Adopted Accounting Standards | |||||||||
In January 2013, the FASB issued Accounting Standards Update (ASU") ASU No. 2013-01, which is included in ASC 210, “Balance Sheet,” “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (ASU No. 2013-01). This update clarifies that the scope of ASU 2011-11: “Disclosures about Offsetting Assets and Liabilities” applies only to derivatives accounted for under ASC 815, “Derivatives and Hedging”, included bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities lending transactions that are either offset in accordance with ASC 210-20-45 or ASC 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. ASU No. 2013-01 is effective for fiscal years and interim periods within those years, beginning on or after January 1, 2013. Entities should provide the required disclosures retrospectively for all comparative periods presented. The adoption of this guidance impacts presentation disclosures only and did not have an impact on our consolidated financial position, results of operation or cash flows. | |||||||||
In February 2013, the FASB issued ASU No. 2013-02, which is included in ASC 220, “Comprehensive Income”, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU NO. 2013-02”). This update requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. Generally Accepted Accounting Principles (US GAAP) to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under US GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under US GAAP that provide additional detail about those amounts. The amendments of ASU No. 2013-02 do not change the current requirements for reporting net income or other comprehensive income in financial statements. ASU No. 2013-02 is effective for fiscal years and interim periods within those years, beginning on or after December 15, 2012. Early adoption is permitted. The adoption of this guidance impacts presentation disclosures only and did not have an impact on our consolidated financial position, results of operation or cash flows. | |||||||||
In February 2013, the FASB issued ASU No. 2013-04, which is included in ASC 405, “Liabilities”, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date”. This update provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation with the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in US GAAP. Examples of obligations within the scope to ASU No. 2013-04 include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. ASU No. 2013-04 is effective for fiscal years and interim periods within those years beginning after December 5, 2013. Entities should provide the required disclosures retrospectively for all comparative periods presented. The adoption of this guidance impacts presentation disclosures only and will not have an impact on our consolidated financial position, results of operation or cash flows. | |||||||||
In March 2013, the FASB issued ASU No. 2013-05, which is included in ASC 830, “Foreign Currency Matters”, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity” (“ASU 2013-05”). This update resolves the diversity in practice regarding the release into net income of the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. ASU No. 2013-05 is effective for fiscal years and interim periods within those years beginning after December 5, 2013. ASU No. 2013-05 is not expected to have a material impact on our consolidated financial position, results of operation or cash flows. |
Note_3_Discontinued_Operations
Note 3 - Discontinued Operations | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | ||||||||
3. Discontinued Operations | |||||||||
On September 10, 2010, we announced that we were exiting the solar panel installation business and we were expanding our distribution business to include sales of our Andalay Solar Power Systems directly to dealers in California. The exit from the installation business was essentially completed by the end of 2010. During the nine months ended September 30, 2013 and 2012, we recorded a gain from discontinued operations of approximately $11,000 and $32,000, respectively. The assets and liabilities of discontinued operations are presented separately under the captions “Assets of discontinued operations,” “Liabilities of discontinued operations” and “Long-term liabilities of discontinued operations,” respectively, in the accompanying condensed consolidated balance sheets at September 30, 2013 and December 31, 2012, and consist of the following: | |||||||||
Assets of discontinued operations: | September 30, | December 31, | |||||||
2013 (unaudited) | 2012 | ||||||||
Accounts receivable and other receivables | $ | — | $ | 1,340 | |||||
Prepaid expenses and other current assets | — | — | |||||||
Other assets | — | 9,556 | |||||||
Total current assets of discontinued operations | — | 10,896 | |||||||
Security deposit – escrow account for installation jobs | 200,000 | 200,000 | |||||||
Total assets of discontinued operations | $ | 200,000 | $ | 210,896 | |||||
Liabilities of discontinued operations: | September 30, | December 31, | |||||||
2013 (unaudited) | 2012 | ||||||||
Accrued liabilities | $ | — | $ | 8,656 | |||||
Accrued warranty | 990,933 | 1,042,663 | |||||||
Deferred revenue | — | 1,500 | |||||||
Total current liabilities | $ | 990,933 | $ | 1,052,819 | |||||
We entered into a Supply and Warranty Agreement and Master Assignment Agreement with Real Goods Solar, Inc. (Real Goods), pursuant to which Real Goods has agreed to perform certain warranty work. The terms of the agreement provide that an escrow account be established as a source of funds from which to satisfy our obligation to pay Real Goods for its fees and reimburse it for its expenses for this warranty work. In March 2011, we entered into an Escrow Agreement with Real Goods and deposited $200,000 into an escrow account. The amount is reflected in long-term assets of discontinued operations in the balance sheet. The escrow deposit will be released to us in the amount of $40,000, or one-fifth of the remaining escrow funds, per year after each of the fifth through the ninth anniversary of the escrow agreement. |
Note_4_Accounts_Receivable
Note 4 - Accounts Receivable | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ||||||||||||||||
4. Accounts Receivable | |||||||||||||||||
Accounts receivable consists of the following: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 (Unaudited) | 2012 | ||||||||||||||||
Trade accounts | $ | 178,070 | $ | 490,401 | |||||||||||||
Less: Allowance for bad debts | (142,000 | ) | (108,750 | ) | |||||||||||||
Less: Allowance for returns | (2,291 | ) | (15,806 | ) | |||||||||||||
$ | 33,779 | $ | 365,845 | ||||||||||||||
The following table summarizes the allowance for doubtful accounts as of September 30, 2013 and December 31, 2012: | |||||||||||||||||
Balance at Beginning of Period | Provisions, net | Write-Off/ | Balance at End of Period | ||||||||||||||
Recovery | |||||||||||||||||
Nine months ended September 30, 2013 | $ | 108,750 | $ | 89,325 | $ | (56,075 | ) | $ | 142,000 | ||||||||
Year ended December 31, 2012 | $ | 39,000 | $ | 485,072 | $ | (415,322 | ) | $ | 108,750 | ||||||||
Note_5_Inventory
Note 5 - Inventory | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
5. Inventory | |||||||||
Inventory consists of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Finished goods | $ | 950,831 | $ | 755,643 | |||||
Work in process | 106,110 | 240,070 | |||||||
$ | 1,056,941 | $ | 995,713 | ||||||
Included in inventory at September 30, 2013 is a $5,000 credit related to a pricing adjustment from a supply agreement. Included in inventory at December 31, 2012, is an $11,000 credit related to a pricing adjustment from a supply agreement. | |||||||||
Inventory is stated at the lower of cost (on an average basis) or market value. We determine cost based on our weighted-average purchase price and include both the costs of acquisition and the shipping costs in our inventory. We regularly review the cost of inventory against its estimated market value and record a lower of cost or market write-down to cost of goods sold, if any inventory has a cost in excess of estimated market value. During the year ended December 31, 2012, we recorded a $206,000 non-cash inventory write-down, a $65,000 write-off of accumulated inventory overhead costs and a $112,000 non-cash inventory write-off. The $206,000 write-down was an adjustment to the carrying value of our older, smaller-format solar panels and older microinverter inventory to reflect the decline in market prices compared to our original cost and the $112,000 was an inventory write-off of obsolete inventory. |
Note_6_Property_and_Equipment_
Note 6 - Property and Equipment, Net | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
6. Property and Equipment, Net | |||||||||
Property and equipment, net consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 (Unaudited) | 2012 | ||||||||
Office equipment | $ | 522,745 | $ | 522,745 | |||||
Leasehold improvements | 148,759 | 148,759 | |||||||
Vehicles | 17,992 | 17,992 | |||||||
689,496 | 689,496 | ||||||||
Less: Accumulated depreciation and amortization | (670,402 | ) | (642,619 | ) | |||||
$ | 19,094 | $ | 46,877 | ||||||
Depreciation expense for the three months ended September 30, 2013 and 2012 was approximately $8,000 and $40,000, respectively. Depreciation expense for the nine months ended September 30, 2013 and 2012 was approximately $28,000 and $120,000, respectively. |
Note_7_Accrued_Liabilities
Note 7 - Accrued Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
7. Accrued Liabilities | |||||||||
Accrued liabilities consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 (Unaudited) | 2012 | ||||||||
Accrued salaries, wages, benefits and bonus | $ | 35,293 | $ | 65,581 | |||||
Sales tax payable | — | 877 | |||||||
Accrued accounting and legal fees | 16,500 | 5,160 | |||||||
Customer deposit payable | — | 36,540 | |||||||
Accrued interest | — | 76,438 | |||||||
Royalty payable | — | 262,500 | |||||||
Other accrued liabilities | 16,060 | 41,860 | |||||||
$ | 67,853 | $ | 488,956 | ||||||
Note_8_Credit_Facility
Note 8 - Credit Facility | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
8. Note Payable and Credit Facility | |
Note payable | |
On August 30, 2013, we entered into a securities purchase agreement with certain institutional accredited investors relating to the sale and issuance of a convertible note in the principal amount of $200,000 that matures August 29, 2015 (the "Convertible Note"). The Convertible Note bears interest at the rate of 8% per annum compounded annually, is payable at maturity and the principal and interest outstanding under the Convertible Note are convertible into shares of our common stock, at any time after issuance, at the option of the purchaser, at a conversion price equal to $.02, subject to adjustment upon the happening of certain events, including stock dividends, stock splits and the issuance of common stock equivalents at a price below the conversion price. Subject to our fulfilling certain conditions, including beneficial ownership limits, the Convertible Note is subject to a mandatory conversion if the closing price of our common stock for any 20 consecutive days commencing six months after the issue date of the Convertible Note equals or exceeds $0.04. Unless waived in writing by the purchaser, no conversion of the Convertible Note can be effected to the extent that as a result of such conversion the purchaser would beneficially own more than 9.99% in the aggregate of our issued and outstanding common stock immediately after giving effect to the issuance of common stock upon conversion. | |
We have the option of repaying the outstanding principal amount of the Convertible Note, in whole or in part, by paying the purchaser a sum of money equal to one hundred and twenty percent (120%) of the principal together with accrued but unpaid interest upon 30 days notice, subject to certain beneficial ownership limits. For so long as we have any obligation under the Convertible Note, we have agreed to certain restrictions regarding, among other things, incurrence of additional debt, liens, amendments to charter documents, repurchase of stock, payment of cash dividends, affiliated transactions. We are also prohibited from entering into certain variable priced agreements until the Convertible Note is repaid in full. | |
Line of credit | |
On September 30, 2013, we entered into a loan and security agreement with Alpha Capital Anstalt and Collateral Services, LLC to provide financing, on a discretionary basis, for one year, against our accounts receivable and inventory. The maximum amount that can be borrowed under the Agreement is $500,000. We have the right to borrow up to 80% of our eligible accounts receivable, not in excess of $200,000, 50% of the value of our raw materials in inventory, 65% of our finished goods inventory and 95% of cash, but not in the aggregate amount in excess of $300,000. The advances are secured by a lien on all of our assets. All advances under the agreement bear interest at a per annum rate of 12% and monthly interest shall be a minimum of $500. At the time of initial funding we paid a loan fee of 50 shares of our Series D Preferred Shares to the lender, in addition to other payments for legal fees. In addition, we paid the collateral agent an initial fee of $5,000 and have agreed to pay an administrative fee to the collateral agent of 0.5% per month of the daily balance during the preceding month or $500 whichever is less. In the event that of a prepayment, we are obligated to pay a prepayment fee in an amount equal to one-half of one percent (0.5%) of $500,000. On September 30, 2013, we requested and received an initial borrowing under the Agreement totaling $350,000. Subsequently, on October 21, 2013, we requested and received an additional $100,000. The terms of the convertible note meet the criteria for bifurcation of an embedded derivative, however, the amount of such embedded derivative was deemed to have de minimis value. | |
On February 15, 2011, we entered into a Business Financing Agreement (the "2011 Credit Facility") with Bridge Bank, National Association (“Bridge Bank”) to finance our accounts receivables. The 2011 Credit Facility provided for a credit limit of $750,000, representing the maximum amount of advances based on up to 50% of $1.5 million of gross eligible accounts receivables. The 2011 Credit Facility was terminated on August 16, 2013. |
Note_9_Stockholders_Equity
Note 9 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
9. Stockholders’ Equity | |
We have 501,000,000 shares of capital stock authorized under our certificate of incorporation, consisting of 500,000,000 shares of common stock and 1,000,000 shares of preferred stock. As of September 30, 2013, we have authorized (i) 2,000 shares of Series A Convertible Preferred Stock, par value $0.001, all of which have been converted or cancelled and none of which remain outstanding, (ii) 4,000 shares of Series B 4% Convertible Preferred Stock, par value $0.001, of which 823 shares remain outstanding, (iii) 1,175 shares of our Series C 8% Convertible Preferred Stock, par value $0.001, of which 97 shares remain outstanding, and (iv) 1,150 shares of our Series D 8% Convertible Preferred Stock, par value $0.001, of which 950 shares remain outstanding. | |
On March 30, 2012, we entered into an amendment to the outstanding Series K warrants which removed the provision for any future price adjustment to the exercise price. See Note 12 for a discussion on the accounting treatment of these warrants. | |
Pursuant to the Lightway Supply Agreement, on March 30, 2012, we issued 1,900,000 shares of our common stock to Lightway. The shares were issued at $0.55 per share based on the latest closing sale price on the date of issuance. The issuance of the common stock, valued at $1,045,000, increased equity and reduced accounts payable by an equal amount. |
Note_10_Convertible_Redeemable
Note 10 - Convertible Redeemable Preferred Stock and Preferred Deemed Dividend | 9 Months Ended |
Sep. 30, 2013 | |
Convertible Redeemable Preferred Stock And Preferred Deemed Dividend [Abstract] | ' |
Convertible Redeemable Preferred Stock And Preferred Deemed Dividend [Text Block] | ' |
10. Convertible Redeemable Preferred Stock and Preferred Deemed Dividend | |
On February 17, 2011, we entered into a securities purchase agreement with certain institutional accredited investors relating to the sale of 4,000 units at a price of $900 per unit (the “Securities Purchase Agreement”). The aggregate purchase price for the Securities was $3,600,000, less $532,000 in issuance costs. As of September 30, 2013, 3,177 shares of Series B Preferred stock had been converted into 43,430,415 shares of common stock. | |
The Certificate of Designation to create the Series B Preferred includes certain negative covenants regarding indebtedness and other matters, and includes provisions under which the holders of the Series B Preferred are entitled to demand redemption for cash upon specified triggering events. The Series B Preferred bears dividends at the rate 4% per year for the first year, and 8% per year thereafter, payable in stock or in cash at our election, subject to certain restrictions. | |
On October 18, 2012, we filed with the Secretary of State of the State of Delaware a Certificate of Designation creating and specifying the rights of our Series C Preferred Stock. The number of shares designated Series C Preferred Stock is 1,750 (which shall not be subject to increase without the written consent of the holders of a majority of such series of preferred stock). Each share of Series C Preferred has a par value of $0.001 per share and a stated value equal to $1,000, subject to increase under certain circumstances. Each share of Series C Preferred is convertible, at any time at the option of the holder thereof, into shares of our common stock determined by dividing the stated value per share of our Series C Preferred by the closing price per share of our common stock as reported on the OTCQB Marketplace (OTCQB) on October 18, 2012, which was $0.155. The conversion price is subject to further adjustments as set forth in the Series C Certificate of Designation. | |
The holders of our Series C Preferred are entitled to receive, and we are obligated to pay, cumulative dividends at the rate per share (as a percentage of the stated value per share) of 8% per annum, payable quarterly on March 31, June 30, September 30 and December 31. Dividends are payable in cash or in shares of newly issued common stock, depending on whether we have cash available for lawful payment of dividends and whether we satisfy certain conditions for the alternative to pay the dividends in shares. | |
Our Series C Preferred generally is non-voting, provided that our holders of Series C Preferred have rights of approval with regard to amendments to our Certificate of Incorporation or to the Certificate of Designation that would adversely affect the rights of our Series C Preferred. Our Series C Preferred provides for a number of negative covenants applicable to us, including restrictions on the amount of our indebtedness (generally, to an amount not to exceed $5 million) and related liens, and restrictions on our use of cash to redeem or to pay dividends with respect to our common stock or other junior securities. In various “triggering event” circumstances set forth in the Series C Certificate of Designation, the holders of our Series C Preferred have rights to demand the redemption of their shares, for cash or for shares of our common stock, depending on the nature of the triggering event. | |
On October 18, 2012, we entered into a securities purchase agreement with certain institutional accredited investors relating to the sale and issuance of up to 1,245 shares of our newly created Series C Preferred Stock, for aggregate proceeds of up to $1,245,000. At the initial closing, we sold and issued 750 shares of Series C Preferred, for initial aggregate proceeds of $750,000. On November 2, 2012, we provided to the purchasers of our Series C Preferred Stock a draw down notice under the Purchase Agreement. As a result of the draw down, we sold an aggregate of 350 additional shares of our Series C Preferred to the purchasers for aggregate proceeds of $350,000. Based on the closing price of our common stock as reported on the OTCQB Marketplace (OTCQB) on November 2, 2012 (which was $0.08 per share), the 350 shares of Series C Preferred issued pursuant to the draw down was convertible into 4,375,000 shares of our common stock. As a result of the contingent conversion feature on the Series C Preferred, which reduced the conversion price from $0.155 to $0.08 per share on the total 750 shares of Series C Preferred Stock issued and outstanding at November 2, 2012, and which resulted in an increase in the number of common shares issuable, we recognized a preferred deemed dividend of $363,000. | |
Effective October 18, 2012, we amended our Series B Certificate of Designation to reduce the “Floor Price” limitation related to the conversion rights of the Series B Preferred Stock from $0.10 to $0.01 per share. | |
On January 24, 2013, we provided to the purchasers of our Series C Preferred Stock a draw down notice under the purchase agreement. The purchasers agreed to accept the new draw down notice and thereby extend our right to exercise a “put” to sell additional Series C Preferred beyond the securities purchase agreement’s prior expiration date of December 31, 2012. As a result of the draw down, we sold an aggregate of 75 additional shares of Series C Preferred to the purchasers for aggregate proceeds of $75,000. Based on the closing price of our common stock as reported on the OTCQB Marketplace on January 24, 2013 (which was $0.05 per share), the 75 shares of Series C Preferred to be issued pursuant to the draw down would be convertible into 1,500,000 shares of our common stock. As a result of the contingent conversion feature on the Series C Preferred, which reduced the conversion price from $0.08 to $0.05 per share on the total 720 shares of Series C Preferred Stock issued and outstanding at January 24, 2013, and which resulted in an increase in the number of common shares issuable, we recognized additional preferred deemed dividends of $270,000. | |
As a result of the January 24, 2013 draw down notice, pursuant to the terms of the outstanding Series B Preferred Stock, the conversion price of the Series B Preferred was reduced from $0.08 per share of common stock to become equal to $0.05, and the conversion price of the Series C Preferred issued under the initial closing was reduced from $0.08 per share of common stock to become equal to $0.05. As a result of the May 13, 2013 draw down notice, the price of the Series B Preferred was further reduced from $0.05 per share of common stock to become equal to $0.03, and the conversion price of the Series C Preferred was also further reduced from $0.05 per share of common stock to $0.03. As of September 30, 2013, there were 823 shares of Series B Preferred that remain outstanding. With the May 13, 2013 draw down, and after recent conversions of our Series C Preferred, there are 97 shares of Series C Preferred that remain outstanding. As a result of our August 30, 2013 financing, the conversion price of the Series B Preferred was further reduced from $0.03 per share of common stock to $0.02 and the conversion price of the Series C Preferred was also further reduced from $0.03 per share of common stock to $0.02. After adjustment to the conversion prices as a result of the August 30, 2013 financing, the outstanding Series B Preferred and Series C Preferred would be convertible into 37,020,234 shares and 4,833,350 shares, respectively, of our common stock. | |
On February 15, 2013, we entered into a securities purchase agreement with an institutional accredited investor relating to the sale and issuance of up to 1,150 shares of our newly created Series D Preferred Stock at a price per share equal to the stated value, which is $1,000 per share, for aggregate proceeds of up to $1,000,000. At the initial closing, concurrent with entering the agreement, we issued 150 shares of Series D Preferred, for initial aggregate proceeds of $150,000. After the initial closing, the securities purchase agreement permits the purchaser to exercise a “call” right to purchase additional Series D Preferred in multiple draw downs from time to time until December 31, 2013, subject to certain limits, terms and conditions. In March 2013, the Company and investors entered into a letter agreement to the securities purchase agreement dated as of February 15, 2013, modifying the number of shares of Series D Preferred Stock to be issued upon settlement of any purchaser draw downs made on or after March 18, 2013, equal to the purchaser investment amount divided by the stated value multiplied by a number agreed upon by the Company and the purchaser, which shall not be higher than 1.67. Subsequently, on March 21, 2013, we issued 167 shares of Series D Preferred for aggregate proceeds of $100,000. On May 13, 2013, the Company and investors entered into a letter agreement amendment to the securities purchase agreement dated as of February 15, 2013, modifying the number of shares of Series D Preferred Stock that may be issued upon draw downs made on or after May 13, 2013, equal to the purchaser investment amount divided by the stated value multiplied by a number agreed upon by the Company and the purchaser, which shall not be higher than 3.34. The corresponding conversion price into underlying shares of our common stock is $0.03 per share. On May 13, 2013, we issued 583 shares of Series D Preferred to an investor for aggregate proceeds of $175,000. As a result of the contingent conversion feature on the Series C Preferred, which reduced the conversion price from $0.05 to $0.03 per share on the total 260 shares of Series C Preferred Stock issued and outstanding at May 13, 2013, and which resulted in an increase in the number of common shares issuable, we recognized additional preferred deemed dividends of $104,000. On August 30, 2013, we entered into an agreement to sell $200,000 in convertible notes. As a result of the sale of these convertible notes and as a result of the contingent conversion feature on the Series C Preferred and Series D Preferred, which reduced the conversion price from $0.03 to $0.02 per share on the Series C and from $0.10 to $0.02 per share on the Series D on the total 147 shares and 930 shares, respectively, of Series C Preferred Stock and Series D Preferred Stock issued and outstanding at August 30, 2013, and which resulted in an increase in the number of common shares issuable, we recognized additional preferred deemed dividends of $36,000 on the Series C Preferred Stock and $465,000 on the Series D Preferred Stock. The net loss attributable to common shareholders reflects both the net loss and the deemed dividend. As a result of the $500,000 loan and security agreement entered into on September 30, 2013, we issued to the lender 50 shares of our Series D Preferred stock for the $50,000 loan origination fee. | |
See Note 12 for a discussion of the accounting treatment of the stock warrant transactions described above. |
Note_11_Stock_Option_Plan_and_
Note 11 - Stock Option Plan and Stock Incentive Plan | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
11. Stock Option Plan and Stock Incentive Plan | |||||||||||||||||
On August 8, 2006, we adopted the Akeena Solar, Inc. 2006 Stock Incentive Plan (the “Stock Plan”) pursuant to which shares of common stock are available for issuance to employees, directors and consultants under the Stock Plan as restricted stock and/or options to purchase common stock. The Stock Plan allows for issuance of up to 50,000,000 shares and there were 48,102,924 shares available for issuance under the Stock Plan as of September 30, 2013. | |||||||||||||||||
Restricted stock and options to purchase common stock may be issued under the Stock Plan. The restriction period on restricted stock grants generally expires at a rate of 25% per year over four years, unless decided otherwise by our Compensation Committee. Options to purchase common stock generally vest and become exercisable as to one-third of the total amount of shares subject to the option on each of the first, second and third anniversaries from the date of grant. Options to purchase common stock generally have a 5-year term. | |||||||||||||||||
We use the Black-Scholes-Merton Options Pricing Model (Black-Scholes) to estimate fair value of our employee and our non-employee director stock-based awards. Black-Scholes requires various judgmental assumptions, including estimating stock price volatility, expected option life and forfeiture rates. If we had made different assumptions, the amount of our deferred stock-based compensation, stock-based compensation expense, gross margin, net loss and net loss per share amounts could have been significantly different. We believe that we have used reasonable methodologies, approaches and assumptions to determine the fair value of our common stock, and that our deferred stock-based compensation and related amortization were recorded properly for accounting purposes. If any of the assumptions we used change significantly, stock-based compensation expense may differ materially in the future from that recorded in the current period. | |||||||||||||||||
We measure compensation expense for non-employee stock-based compensation under Accounting Standards Codification (ASC) 505-50, “Equity-Based Payments to Non-Employees.” The fair value of the option issued is used to measure the transaction, as this is more reliable than the fair value of the services received. The estimated fair value is measured utilizing Black-Scholes using the value of our common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance is complete (generally the vesting date). The fair value of the equity instrument is charged directly to expense and additional paid-in capital. | |||||||||||||||||
We recognized stock-based compensation expense of approximately $107,000 and $130,000 during the three months ended September 30, 2013 and 2012, respectively, and $240,000 and $570,000 during the nine months ended September 30, 2013, respectively, relating to compensation expense calculated based on the fair value at the time of grant for restricted stock and based on Black-Scholes for stock options granted under the Stock Plan. | |||||||||||||||||
The following table sets forth a summary of restricted stock activity for the nine months ended September 30, 2013: | |||||||||||||||||
Number of Restricted Shares | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Outstanding and not vested beginning balance at January 1, 2013 | 48,073 | $ | 2.5 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Forfeited/cancelled | (21,798 | ) | $ | 2.46 | |||||||||||||
Released/vested | (9,386 | ) | $ | 2.74 | |||||||||||||
Outstanding and not vested at September 30, 2013 | 16,889 | $ | 2.43 | ||||||||||||||
Restricted stock is valued at the grant date fair value of the common stock and expensed over the requisite service period or vesting period. We estimate forfeitures when recognizing stock-based compensation expense for restricted stock, and the estimate of forfeitures is adjusted over the requisite service period should actual forfeitures differ from such estimates. At September 30, 2013 and December 31, 2012, there was approximately $32,000 and $96,000, respectively, of unrecognized stock-based compensation expense associated with the granted but unvested restricted stock. Stock-based compensation expense relating to these restricted shares is being recognized over a weighted-average period of 1.2 years. The total fair value of shares vested during the nine months ended September 30, 2013 and 2012, was approximately $700 and $229,000, respectively. Tax benefits resulting from tax deductions in excess of the compensation cost recognized (excess tax benefits) are classified as financing cash flows on our consolidated statements of cash flows. During the three and nine months ended September 30, 2013 and 2012, there were no excess tax benefits relating to restricted stock and therefore there is no impact on the accompanying consolidated statements of cash flows. | |||||||||||||||||
The following table sets forth a summary of stock option activity for the nine months ended September 30, 2013: | |||||||||||||||||
Number of Shares Subject to Option | Weighted-Average Exercise Price | ||||||||||||||||
Outstanding at January 1, 2013 | 679,744 | $ | 2.75 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Forfeited/cancelled/expired | (411,040 | ) | $ | 3 | |||||||||||||
Exercised | — | $ | — | ||||||||||||||
Outstanding at March 31, 2013 | 268,704 | $ | 2.38 | ||||||||||||||
Exercisable at March 31, 2013 | 247,871 | $ | 2.4 | ||||||||||||||
Stock options are valued at the estimated fair value grant date or the measurement date and expensed over the requisite service period or vesting period. The weighted-average volatility was based upon the historical volatility of our common stock price. There were no stock options issued during the nine month period ended September 30, 2013. The fair value of stock option grants during the three and nine months ended September 30, 2012 was estimated using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted-average volatility | — | — | — | 105.5 | |||||||||||||
Expected dividends | — | — | — | 0 | % | ||||||||||||
Expected life (years) | — | — | — | 2.6 | |||||||||||||
Weighted-average risk-free interest rate | — | — | — | 0.4 | % | ||||||||||||
The weighted-average remaining contractual term for the stock options outstanding (vested and expected to vest) and exercisable as of September 30 2013 and December 31, 2012, was 2.4 years and 3.1 years, respectively. The total estimated fair value of stock options vested during the nine months ended September 30, 2013 and 2012 was approximately $45,000 and $41,000, respectively. The aggregate intrinsic value of stock options outstanding as of September 30, 2013 was zero. | |||||||||||||||||
We estimate forfeitures when recognizing stock-based compensation expense for stock options and the estimate of forfeitures is adjusted over the requisite service period should actual forfeitures differ from such estimates. At September 30, 2013 and December 31, 2012, there was approximately $17,000 and $127,000, respectively, of unrecognized stock-based compensation expense associated with stock options granted. Stock-based compensation expense relating to these stock options is being recognized over a weighted-average period of 0.4 years. Tax benefits resulting from tax deductions in excess of the compensation cost recognized (excess tax benefits) is classified as financing cash flows on our consolidated statements of cash flows. During the three and nine months ended September 30, 2013, there were no excess tax benefits relating to stock options and therefore there is no impact on the accompanying consolidated statements of cash flows. |
Note_12_Stock_Warrants_and_War
Note 12 - Stock Warrants and Warrant Liability | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Derivatives and Fair Value [Text Block] | ' |
12. Stock Warrants and Warrant Liability | |
During March 2009, in connection with an equity financing, we issued Series E Warrants to purchase 334,822 shares of common stock at an exercise price of $5.36 per share. The fair value of the warrants was estimated using Black-Scholes with the following weighted average assumptions: risk-free interest rate of 2.69%, an expected life of five years; an expected volatility factor of 112% and a dividend yield of 0.0%. The value assigned to these warrants was approximately $1.0 million, of which $1.0 million was reflected as common stock warrant liability with an offset to additional paid-in capital as of the offering close date. As of March 31, 2013, the fair value of the warrants was estimated using Black-Scholes with the following weighted average assumptions: risk-free interest rate of 0.7%, an expected life of 0.9 years; an expected volatility factor of 127.5% and a dividend yield of 0.0%. The fair value of the warrants decreased to zero as of September 30, 2013 and we recognized a $9 favorable non-cash adjustment from the change in fair value of these warrants for the nine months ended September 30, 2013. | |
On February 17, 2011, we entered into a securities purchase agreement and issued Series K Warrants to purchase up to 1,700,002 shares of common stock at an exercise price of $2.40 per share, which warrants are not exercisable until six months after issuance and have a term of five and one-half years. The fair value of the warrants was estimated using Black-Scholes with the following weighted-average assumptions: risk-free interest rate of 1.4%, an expected life of 4.1 years; an expected volatility factor of 103.2% and a dividend yield of 0.0%. The estimated value of these warrants was approximately $2.6 million, of which $2.6 million was reflected as common stock warrant liability with an offset to preferred stock as of the offering close date. During the quarter ended March 31, 2012, 472,222 Series K Warrants were exercised at a price of $0.60 and total proceeds of approximately $283,000. As a result of the exercise, we recognized approximately $253,000 in the change in the estimated value assigned to the warrants as an increase to equity and a decrease to the warrant liability. On March 30, 2012, we entered into an Amendment to Securities Purchase Agreement with the holders of the remaining Series K warrants (Series K Amendment) reducing the exercise price to $0.40 and removing provisions for any future price adjustment to the exercise price. On March 30, 2012, the fair value of the warrants was estimated using Black-Scholes with the following weighted average assumptions: risk-free interest rate of 0.5%, an expected life of 3.0 years; an expected volatility factor of 109.3% and a dividend yield of 0.0%. The fair value of the warrants increased to approximately $481,000 as of March 30, 2012 and we recognized a $425,000 unfavorable non-cash adjustment from the change in fair value of these warrants for the three months ended March 31, 2012. As a result of the Series K Amendment, the fair value of the warrants of approximately $481,000 was reclassified from warrant liability to equity. | |
As of September 30, 2013, we have 3,398,045 warrants outstanding at a weighted-average exercise price of $1.36. During the nine months ended September 30, 2013, there was no activity in our outstanding warrants. |
Note_13_Earnings_Per_Share
Note 13 - Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
13. Earnings Per Share | |||||||||||||||||
On January 1, 2009, we adopted ASC 260 (formerly Financial Accounting Standards Board Staff Position (FSP) Emerging Issues Task Force (EITF) 03-6-1) (ASC 260), Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (the “Staff Position”), which states that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and shall be included in the computation of net income (loss) per share pursuant to the two-class method described in ASC 260 (formerly Statement of Financial Accounting Standards (SFAS) No. 128), Earnings Per Share. | |||||||||||||||||
In accordance with the Staff Position, basic net income (loss) per share is computed by dividing net income (loss), excluding net income (loss) attributable to participating securities, by the weighted average number of shares outstanding less the weighted average unvested restricted shares outstanding. Diluted net income (loss) per share is computed by dividing net income (loss), excluding net income (loss) attributable to participating securities, by the denominator for basic net income (loss) per share and any dilutive effects of stock options, restricted stock, convertible notes and warrants. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic: | |||||||||||||||||
Numerator: | |||||||||||||||||
Net loss | $ | (806,259 | ) | $ | (2,238,552 | ) | $ | (2,235,799 | ) | $ | (7,286,454 | ) | |||||
Less: Net loss allocated to participating securities | 169 | 32,415 | 801 | 144,349 | |||||||||||||
Net loss attributable to stockholders | (806,090 | ) | (2,206,137 | ) | (2,234,998 | ) | (7,142,105 | ) | |||||||||
Preferred stock dividend | (28,980 | ) | (75,331 | ) | (124,509 | ) | (117,618 | ) | |||||||||
Preferred deemed dividend | (501,304 | ) | — | (875,304 | ) | — | |||||||||||
$ | (1,336,374 | ) | $ | (2,281,468 | ) | $ | (3,234,811 | ) | $ | (7,259,723 | ) | ||||||
Denominator: | |||||||||||||||||
Weighted-average shares outstanding | 81,763,478 | 20,176,051 | 56,716,084 | 18,536,062 | |||||||||||||
Weighted-average unvested restricted shares outstanding | (17,106 | ) | (292,164 | ) | (20,317 | ) | (367,211 | ) | |||||||||
Denominator for basic net loss per share | 81,746,372 | 19,883,887 | 56,695,767 | 18,168,851 | |||||||||||||
Basic net loss per share attributable to common stockholders | $ | (0.02 | ) | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.40 | ) | |||||
Diluted: | |||||||||||||||||
Numerator: | |||||||||||||||||
Net loss | $ | (806,259 | ) | $ | (2,238,552 | ) | $ | (2,235,799 | ) | $ | (7,286,454 | ) | |||||
Less: Net loss allocated to participating securities | 169 | 32,415 | 801 | 144,349 | |||||||||||||
Net loss attributable to stockholders | (806,090 | ) | (2,206,137 | ) | (2,234,998 | ) | (7,142,105 | ) | |||||||||
Preferred stock dividend | (28,980 | ) | (75,331 | ) | (124,509 | ) | (117,618 | ) | |||||||||
Preferred deemed dividend | (501,304 | ) | — | (875,304 | ) | — | |||||||||||
$ | (1,336,374 | ) | $ | (2,281,468 | ) | $ | (3,234,811 | ) | $ | (7,259,723 | ) | ||||||
Denominator: | |||||||||||||||||
Denominator for basic calculation | 81,746,372 | 19,883,887 | 56,695,767 | 18,168,851 | |||||||||||||
Weighted-average effect of dilutive stock options | — | — | — | — | |||||||||||||
Denominator for diluted net loss per share | 81,746,372 | 19,883,887 | 56,695,767 | 18,168,851 | |||||||||||||
Diluted net loss per share attributable to common stockholders | $ | (0.02 | ) | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.40 | ) | |||||
The following table sets forth potential shares of common stock at the end of each period presented that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Stock options outstanding | 268,704 | 679,744 | |||||||||||||||
Unvested restricted stock | 16,889 | 48,073 | |||||||||||||||
Warrants to purchase common stock | 3,398,045 | 3,398,045 | |||||||||||||||
Preferred stock convertible into common stock | 89,353,584 | 35,230,263 | |||||||||||||||
Note_14_Concentration_of_Risk
Note 14 - Concentration of Risk | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||
Concentration Risk Disclosure [Text Block] | ' | ||||||||
14. Concentration of Risk | |||||||||
Supplier Relationships | |||||||||
Historically, we obtained virtually all of our solar panels from Suntech and Lightway. During 2012, because of our cash position and liquidity constraints, we were late in making payments to both of these suppliers. On March 30, 2012, pursuant to our Supply Agreement with Lightway, we issued 1,900,000 shares of our common stock to Lightway in partial payment of our past due account payable to them. At the time of issuance, the shares were valued at $1,045,000. On May 1, 2012, Suntech filed a complaint for breach of contract, goods sold and delivered, account stated and open account against us in the Superior Court of the State of California, County of San Francisco. Suntech alleged that it delivered products and did not receive full payment from us. On July 31, 2012, we and Suntech entered into a settlement of this dispute. Because of our inability to make scheduled settlement payments, on March 15, 2013, Suntech entered a judgment against us in the amount of $946,438. As of September 30, 2013, Suntech has not sought to enforce its judgment. As of September 30, 2013, we have included in our Condensed Consolidated Balance Sheets a balance due to Suntech America of $946,438. We currently have no unshipped orders from Suntech or Lightway. | |||||||||
In May 2013, we entered into a new supply agreement for assembly of our proprietary modules with Environmental Engineering Group Pty Ltd (“EEG”), an assembler of polycrystalline modules located in Australia. In August 2013, we began receiving product from EEG and began shipping product to customers during the third calendar quarter of this year. We anticipate increased shipments to customers during the fourth quarter of 2013. We have remaining panel inventory on hand as of September 30, 2013 and anticipate receiving a final shipment of product in November 2013, fulfilling our purchase order with EEG. In September 2013, we entered into a second supply agreement for assembly of our proprietary modules with Tianwei New Energy Co, Ltd., a panel supplier located in China. We anticipate beginning to receive product from this new supplier beginning in the first quarter of 2014. Although we believe we can find alternative suppliers for solar panels manufactured to our specifications, our operations would be disrupted unless we are able to rapidly secure alternative sources of supply, our inventory and revenue could diminish significantly, causing disruption to our operations. | |||||||||
Customer Relationships | |||||||||
The relative magnitude and the mix of revenue from our largest customers have varied significantly quarter to quarter. During the nine months ended September 30, 2013 and 2012, three customers have accounted for significant revenues, varying by period, to our company: Lennar Corporation (Lennar), a leading national homebuilder, Lennox International Inc. (Lennox), a global leader in the heating and air conditioning markets, and Lowe’s Companies, Inc. (Lowe’s), a nationwide home improvement retail chain. For the nine months ended September 30, 2013 and 2012, the percentages of sales to Lennar, Lennox and Lowe’s are as follows: | |||||||||
Nine Months Ended | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Lennox International Inc. | 7.7 | % | 33.3 | % | |||||
Lowe’s Companies, Inc. | 7.1 | % | 8 | % | |||||
Lennar Corporation | 0 | % | 10.3 | % | |||||
We had no receivable balance from Lennar as of September 30, 2013 or December 31, 2012. Lennox accounted for 0.7% and 5.9% of our gross accounts receivable as of September 30, 2013 and December 31, 2012, respectively. Lowe’s accounted for 8.8% and 4.0% of our gross accounts receivable as of September 30, 2013 and December 31, 2012, respectively. | |||||||||
We maintain reserves for potential credit losses and such losses, in the aggregate, have generally not exceeded management’s estimates. Our top three vendors accounted for approximately 25% and 36% of accounts payable as of September 30, 2013, and December 31, 2012, respectively. At September 30, 2013 and December 31, 2012, accounts payable included amounts owed to our top three vendors of approximately $1.1 million and $960,000, respectively. |
Note_15_Fair_Value_Measurement
Note 15 - Fair Value Measurement | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||
15. Fair Value Measurement | |||||||||||||||||
We use a fair-value approach to value certain assets and liabilities. Fair value is the price that would be received to sell 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. We use a fair value hierarchy, which distinguishes between assumptions based on market data (observable inputs) and an entity’s own assumptions (unobservable inputs). The hierarchy consists of three levels: | |||||||||||||||||
• | Level one — Quoted market prices in active markets for identical assets or liabilities; | ||||||||||||||||
• | Level two — Inputs other than level one inputs that are either directly or indirectly observable; and | ||||||||||||||||
• | Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. | ||||||||||||||||
Determining which category an asset or liability falls within the hierarchy requires significant judgment. We evaluate our hierarchy disclosures each quarter. Assets and liabilities measured at fair value on a recurring basis are summarized as follows: | |||||||||||||||||
Liabilities | Level 1 | Level 2 | Level 3 | September 30, | |||||||||||||
2013 | |||||||||||||||||
Fair value of common stock warrant liability | $ | — | $ | — | $ | — | $ | — | |||||||||
Accrued rent related to office closures | — | — | — | — | |||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | |||||||||
Liabilities | Level 1 | Level 2 | Level 3 | December 31, | |||||||||||||
2012 | |||||||||||||||||
Fair value of common stock warrant liability | $ | — | $ | — | $ | 9 | $ | 9 | |||||||||
Accrued rent related to office closures | — | — | 8,656 | 8,656 | |||||||||||||
Total | $ | — | $ | — | $ | 8,665 | $ | 8,665 | |||||||||
A discussion of the valuation techniques used to measure fair value for the common stock warrants is in Note 12. The accrued rent relates to a non-cash charge for the closure of our Anaheim, California location, calculated by discounting the future lease payments to their present value using a risk-free discount rate from 0.6%. The accrued rent is included within liabilities of discontinued operations and long-term liabilities of discontinued operations in our consolidated balance sheets. | |||||||||||||||||
The following table shows the changes in Level 3 liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2013: | |||||||||||||||||
Other Liabilities* | Common Stock Warrant Liability | Total Level 3 | |||||||||||||||
Beginning balance – January 1, 2013 | $ | 8,656 | $ | 9 | $ | 8,665 | |||||||||||
Total realized and unrealized gains or losses | 44 | (9 | ) | 35 | |||||||||||||
Repayments | (8,700 | ) | — | (8,700 | ) | ||||||||||||
Transfers out of level 3 upon exercise or conversion | — | — | — | ||||||||||||||
Ending balance – September 30, 2013 | $ | — | $ | — | $ | — | |||||||||||
* Represents the estimated fair value of the office closures included in accrued and other long-term liabilities. |
Note_16_Income_Taxes
Note 16 - Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
16. Income Taxes | |
Deferred income taxes arise from timing differences resulting from income and expense items reported for financial account and tax purposes in different periods. A deferred tax asset valuation allowance is recorded when it is more likely than not that deferred tax assets will not be realized. During the three months ended September 30, 2013, there was no income tax expense or benefit for federal and state income taxes in the accompanying condensed consolidated statements of operations due to our net loss and a valuation allowance on the resulting deferred tax asset. Our deferred tax asset has a 100% valuation allowance. |
Note_17_Commitments_and_Contin
Note 17 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
17. Commitments and Contingencies | |
Litigation | |
On May 1, 2012, Suntech America, Inc., a Delaware corporation (Suntech America), filed a complaint for breach of contract, goods sold and delivered, account stated and open account against us in the Superior Court of the State of California, County of San Francisco. Suntech America alleged that it delivered products and did not receive full payment from us. On July 31, 2012, we and Suntech entered into a settlement of this dispute. Because of our inability to make scheduled settlement payments, on March 15, 2013, Suntech entered a judgment against us in the amount of $946,438. As of September 30, 2013, Suntech has not sought to enforce its judgment. As of September 30, 2013, we have included in our Condensed Consolidated Balance Sheets a balance due to Suntech America of $946,438. | |
We are also involved in other litigation from time to time in the ordinary course of business. In the opinion of management, the outcome of such proceedings will not materially affect our financial position, results of operations or cash flows. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | ||||||||
Basis of Presentation — Interim Financial Information | |||||||||
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with generally accepted accounting principles for interim financial information. They should be read in conjunction with the financial statements and related notes to the financial statements of Andalay Solar, Inc. (“we”, “us”, “our” or the “Company”), formerly Westinghouse Solar, Inc. and Akeena Solar, Inc., for the years ended December 31, 2012 and 2011 appearing in our Form 10-K. The September 30, 2013 unaudited interim consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements filed with our Annual Report on Form 10-K have been condensed or omitted as permitted by those rules and regulations. In the opinion of management, all adjustments, consisting of normal recurring accruals, necessary for a fair statement of the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. | |||||||||
Liquidity Disclosure [Policy Text Block] | ' | ||||||||
Liquidity and Financial Position | |||||||||
We currently face challenges meeting the working capital needs of our business. Our primary requirements for working capital are to fund purchases for solar panels and microinverters, and to cover our payroll and lease expenses. For each quarter in 2013 and for each of the two years in the period ending December 31, 2012, we have incurred net losses and negative cash flows from operations. During the recent years, we have undertaken several equity and debt financing transactions to provide the capital needed to sustain our business. We have dramatically reduced our headcount and other variable expenses. In addition, we expect to incur a net loss from operations for the year ending December 31, 2013. As of September 30, 2013, we had approximately $379,000 in cash on hand. Based on current cash projections for the remainder of 2013, we intend to address ongoing working capital needs through liquidation of remaining inventory, along with raising additional debt and equity financing. In January 2013, our board of directors approved actions to dramatically reduce our variable operating costs, including a 12 person employee headcount reduction effective January 15, 2013, for the period through the anticipated merger closing with CBD, which merger was terminated in July 2013. No restructuring charges or severance payments were incurred. Our revenue levels remain difficult to predict, and we anticipate that we will continue to sustain losses in the near term, and we cannot assure investors that we will be successful in reaching break-even. | |||||||||
During 2012, because of our cash position and liquidity constraints, we were late in making payments to both of our former panel suppliers, Suntech and Lightway. We currently have no unshipped orders from these suppliers. In May 2013, we entered into a new supply agreement for assembly of our proprietary modules with Environmental Engineering Group Pty Ltd (“EEG”), an assembler of polycrystalline modules located in Australia. In August 2013, we began receiving product from EEG and began shipping product to customers during the third calendar quarter of this year. We anticipate increased shipments to customers during the fourth quarter of 2013. We have remaining panel inventory on hand as of September 30, 2013 and anticipate receiving a final shipment of product in November 2013, fulfilling our purchase order with EEG. In September 2013, we entered into a second supply agreement for assembly of our proprietary modules with Tianwei New Energy Co, Ltd., a panel supplier located in China. We anticipate beginning to receive product from this new supplier beginning in the first quarter of 2014. Although we believe we can find alternative suppliers for solar panels manufactured to our specifications, our operations would be disrupted unless we are able to rapidly secure alternative sources of supply, our inventory and revenue could diminish significantly, causing disruption to our operations. | |||||||||
On August 30, 2013, we entered into a securities purchase agreement with certain institutional accredited investors relating to the sale and issuance of a convertible note in the principal amount of $200,000 that matures August 29, 2015 (the "Convertible Note"). The Convertible Note bears interest at the rate of 8% per annum compounded annually, is payable at maturity and the principal and interest outstanding under the Convertible Note are convertible into shares of our common stock, at any time after issuance, at the option of the purchaser, at a conversion price equal to $.02, subject to adjustment upon the happening of certain events, including stock dividends, stock splits and the issuance of common stock equivalents at a price below the conversion price. Subject to our fulfilling certain conditions, including beneficial ownership limits, the Convertible Note is subject to a mandatory conversion if the closing price of our common stock for any 20 consecutive days commencing six months after the issue date of the Convertible Note equals or exceeds $0.04. Unless waived in writing by the purchaser, no conversion of the Convertible Note can be effected to the extent that as a result of such conversion the purchaser would beneficially own more than 9.99% in the aggregate of our issued and outstanding common stock immediately after giving effect to the issuance of common stock upon conversion. We have the option of repaying the outstanding principal amount of the Convertible Note, in whole or in part, by paying the purchaser a sum of money equal to one hundred and twenty percent (120%) of the principal together with accrued but unpaid interest upon 30 days notice, subject to certain beneficial ownership limits. For so long as we have any obligation under the Convertible Note, we have agreed to certain restrictions regarding, among other things, incurrence of additional debt, liens, amendments to charter documents, repurchase of stock, payment of cash dividends, affiliated transactions. We are also prohibited from entering into certain variable priced agreements until the Convertible Note is repaid in full. | |||||||||
On September 30, 2013, we entered into a loan and security agreement with Alpha Capital Anstalt and Collateral Services, LLC to provide financing, on a discretionary basis, for one year, against our accounts receivable and inventory. The maximum amount that can be borrowed under the Agreement is $500,000. We have the right to borrow up to 80% of our eligible accounts receivable, not in excess of $200,000, 50% of the value of our raw materials in inventory, 65% of our finished goods inventory and 95% of cash, but not in the aggregate amount in excess of $300,000. The advances are secured by a lien on all of our assets. All advances under the agreement bear interest at a per annum rate of 12% and monthly interest shall be a minimum of $500. At the time of initial funding we paid a loan fee of 50 shares of our Series D Preferred Shares to the lender, in addition to other payments for legal fees. In addition, we paid the collateral agent an initial fee of $5,000 and have agreed to pay an administrative fee to the collateral agent of 0.5% per month of the daily balance during the preceding month or $500 whichever is less. In the event of a prepayment, we are obligated to pay a prepayment fee in an amount equal to one-half of one percent (0.5%) of $500,000. On September 30, 2013, we requested and received an initial borrowing under the Agreement totaling $350,000. Subsequently, on October 21, 2013, we requested and received an additional $100,000. | |||||||||
The accompanying consolidated financial statements have been prepared assuming we will continue as a going concern. Our significant operating losses, negative cash flow from operations, and challenges in rapidly securing alternative sources of supply for solar panels, raise substantial uncertainty about our ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty, and contemplate the realization of assets and the settlement of liabilities and commitments in the normal course of business. There can be no assurance that we will be able to raise additional funds on commercially reasonable terms, if at all. The current economic downturn adds uncertainty to our anticipated revenue levels and to the timing of cash receipts, which are needed to support our operations. It also worsens the market conditions for seeking equity and debt financing. As a result of our delisting from the Nasdaq Capital Market in September 2012, we are no longer eligible to file new registration statements on Form S-3, which may make it more costly and more difficult for us to obtain additional equity financing. We currently anticipate that we will retain all of our earnings, if any, for development of our business and do not anticipate paying any cash dividends on common stock in the foreseeable future. | |||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||
Revenue Recognition | |||||||||
Revenue from sales of products is recognized when: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the sale price is fixed or determinable, and (4) collection of the related receivable is reasonably assured. We recognize revenue when the solar power systems are shipped to the customer. | |||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||
Cash and Cash Equivalents | |||||||||
We consider all highly liquid investments with maturities of three months or less, when purchased, to be cash equivalents. We maintain cash and cash equivalents which consist principally of demand deposits with high credit quality financial institutions. At certain times, such amounts exceed FDIC insurance limits. We have not experienced any losses on these investments and, as of September 30,2013 and December 31, 2012, there were no cash equivalents. | |||||||||
Receivables, Policy [Policy Text Block] | ' | ||||||||
Accounts Receivable | |||||||||
Accounts receivable consist of trade receivables. We regularly evaluate the collectability of our accounts receivable. An allowance for doubtful accounts is maintained for estimated credit losses, and such losses have historically been minimal and within our expectations. We consider a number of factors when estimating credit losses, including the aging of a customer’s account, creditworthiness of specific customers, historical trends and other information. | |||||||||
Discontinued Operations, Policy [Policy Text Block] | ' | ||||||||
Discontinued Operations | |||||||||
Discontinued operations are presented and accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC") ASC 360, “Impairment or Disposal of Long-Lived Assets,” (ASC 360). When a qualifying component of the Company is disposed of or has been classified as held for sale, the operating results of that component are removed from continuing operations for all periods presented and displayed as discontinued operations if: (a) elimination of the component’s operations and cash flows from the Company’s ongoing operations has occurred (or will occur) and (b) significant continuing involvement by the Company in the component’s operations does not exist after the disposal transaction. | |||||||||
On September 10, 2010, we announced that we were exiting the solar panel installation business. The exit from the installation business was essentially completed by the end of 2010, other than potential warranty payments related to past installations. (See “Manufacturer and Installation Warranties”). The exit from the installation business was therefore classified as discontinued operations for all periods presented under the requirements of ASC 360. | |||||||||
Standard Product Warranty, Policy [Policy Text Block] | ' | ||||||||
Manufacturer and Installation Warranties | |||||||||
The manufacturer directly warrants the solar panels and inverters for a range from 15 to 25 years. We warrant the balance of system components of our products against defects in material and workmanship for five years. We assist our customers in the event of a claim under the manufacturer warranty to replace a defective solar panel or inverter. The warranty liability for the material and the workmanship of the balance of system components of approximately $331,000 at September 30, 2013 and $330,000 at December 31, 2012, is included within “Accrued warranty” in the accompanying consolidated balance sheets. | |||||||||
The liability for our manufacturing warranty consists of the following: | |||||||||
September 30, 2013 (Unaudited) | 31-Dec-12 | ||||||||
Beginning accrued warranty balance | $ | 329,680 | $ | 217,812 | |||||
Reduction for labor payments and claims made under the warranty | (1,700 | ) | (1,723 | ) | |||||
Accruals related to warranties issued during the period | 3,410 | 113,591 | |||||||
Ending accrued warranty balance | $ | 331,390 | $ | 329,680 | |||||
We previously recorded a provision for warranty liability related to our discontinued installation operations. We provided for a 5-year or a 10-year warranty on the installation of a system and all equipment and incidental supplies other than solar panels and inverters that are covered under the manufacturer warranty. The liability for the installation warranty of approximately $991,000 at September 30, 2013 and $1 million at December 31, 2012 is included within "Liabilities of Discontinued Operations" in the accompanying condensed consolidated balance sheets. Defective solar panels or inverters are covered under the manufacturer warranty. In the event that a panel or inverter needs to be replaced, we will replace the defective item within the manufacturer's warranty period (between 5-25 years). | |||||||||
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | ' | ||||||||
Patent Costs | |||||||||
We capitalize external legal costs and filing fees associated with obtaining or defending our patents. Upon issuance of new patents or successful defense of existing patents, we amortize these costs using the straight line method over the shorter of the legal life of the patent or its economic life. We believe the remaining useful life we assign to these patents, approximately 11.25 years as of September 30, 2013, are reasonable. We periodically review our patents to determine whether any such cost have been impaired and are no longer being used. To the extent we are no longer using certain patents, the associated costs will be written off at that time. | |||||||||
Significant Accounting Policies and Estimates [Policy Text Block] | ' | ||||||||
Significant Accounting Policies and Estimates | |||||||||
There have been no material developments or changes to the significant accounting policies discussed in our 2012 Annual Report on Form 10-K or accounting pronouncements issued or adopted, except as described below. | |||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||
Recently Adopted Accounting Standards | |||||||||
In January 2013, the FASB issued Accounting Standards Update (ASU") ASU No. 2013-01, which is included in ASC 210, “Balance Sheet,” “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (ASU No. 2013-01). This update clarifies that the scope of ASU 2011-11: “Disclosures about Offsetting Assets and Liabilities” applies only to derivatives accounted for under ASC 815, “Derivatives and Hedging”, included bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities lending transactions that are either offset in accordance with ASC 210-20-45 or ASC 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. ASU No. 2013-01 is effective for fiscal years and interim periods within those years, beginning on or after January 1, 2013. Entities should provide the required disclosures retrospectively for all comparative periods presented. The adoption of this guidance impacts presentation disclosures only and did not have an impact on our consolidated financial position, results of operation or cash flows. | |||||||||
In February 2013, the FASB issued ASU No. 2013-02, which is included in ASC 220, “Comprehensive Income”, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU NO. 2013-02”). This update requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. Generally Accepted Accounting Principles (US GAAP) to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under US GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under US GAAP that provide additional detail about those amounts. The amendments of ASU No. 2013-02 do not change the current requirements for reporting net income or other comprehensive income in financial statements. ASU No. 2013-02 is effective for fiscal years and interim periods within those years, beginning on or after December 15, 2012. Early adoption is permitted. The adoption of this guidance impacts presentation disclosures only and did not have an impact on our consolidated financial position, results of operation or cash flows. | |||||||||
In February 2013, the FASB issued ASU No. 2013-04, which is included in ASC 405, “Liabilities”, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date”. This update provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation with the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in US GAAP. Examples of obligations within the scope to ASU No. 2013-04 include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. ASU No. 2013-04 is effective for fiscal years and interim periods within those years beginning after December 5, 2013. Entities should provide the required disclosures retrospectively for all comparative periods presented. The adoption of this guidance impacts presentation disclosures only and will not have an impact on our consolidated financial position, results of operation or cash flows. | |||||||||
In March 2013, the FASB issued ASU No. 2013-05, which is included in ASC 830, “Foreign Currency Matters”, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity” (“ASU 2013-05”). This update resolves the diversity in practice regarding the release into net income of the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. ASU No. 2013-05 is effective for fiscal years and interim periods within those years beginning after December 5, 2013. ASU No. 2013-05 is not expected to have a material impact on our consolidated financial position, results of operation or cash flows. |
Note_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Product Warranty Liability [Table Text Block] | ' | ||||||||
September 30, 2013 (Unaudited) | 31-Dec-12 | ||||||||
Beginning accrued warranty balance | $ | 329,680 | $ | 217,812 | |||||
Reduction for labor payments and claims made under the warranty | (1,700 | ) | (1,723 | ) | |||||
Accruals related to warranties issued during the period | 3,410 | 113,591 | |||||||
Ending accrued warranty balance | $ | 331,390 | $ | 329,680 |
Note_3_Discontinued_Operations1
Note 3 - Discontinued Operations (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | ||||||||
Assets of discontinued operations: | September 30, | December 31, | |||||||
2013 (unaudited) | 2012 | ||||||||
Accounts receivable and other receivables | $ | — | $ | 1,340 | |||||
Prepaid expenses and other current assets | — | — | |||||||
Other assets | — | 9,556 | |||||||
Total current assets of discontinued operations | — | 10,896 | |||||||
Security deposit – escrow account for installation jobs | 200,000 | 200,000 | |||||||
Total assets of discontinued operations | $ | 200,000 | $ | 210,896 | |||||
Liabilities of discontinued operations: | September 30, | December 31, | |||||||
2013 (unaudited) | 2012 | ||||||||
Accrued liabilities | $ | — | $ | 8,656 | |||||
Accrued warranty | 990,933 | 1,042,663 | |||||||
Deferred revenue | — | 1,500 | |||||||
Total current liabilities | $ | 990,933 | $ | 1,052,819 |
Note_4_Accounts_Receivable_Tab
Note 4 - Accounts Receivable (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 (Unaudited) | 2012 | ||||||||||||||||
Trade accounts | $ | 178,070 | $ | 490,401 | |||||||||||||
Less: Allowance for bad debts | (142,000 | ) | (108,750 | ) | |||||||||||||
Less: Allowance for returns | (2,291 | ) | (15,806 | ) | |||||||||||||
$ | 33,779 | $ | 365,845 | ||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||||||||||
Balance at Beginning of Period | Provisions, net | Write-Off/ | Balance at End of Period | ||||||||||||||
Recovery | |||||||||||||||||
Nine months ended September 30, 2013 | $ | 108,750 | $ | 89,325 | $ | (56,075 | ) | $ | 142,000 | ||||||||
Year ended December 31, 2012 | $ | 39,000 | $ | 485,072 | $ | (415,322 | ) | $ | 108,750 |
Note_5_Inventory_Tables
Note 5 - Inventory (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Finished goods | $ | 950,831 | $ | 755,643 | |||||
Work in process | 106,110 | 240,070 | |||||||
$ | 1,056,941 | $ | 995,713 |
Note_6_Property_and_Equipment_1
Note 6 - Property and Equipment, Net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 (Unaudited) | 2012 | ||||||||
Office equipment | $ | 522,745 | $ | 522,745 | |||||
Leasehold improvements | 148,759 | 148,759 | |||||||
Vehicles | 17,992 | 17,992 | |||||||
689,496 | 689,496 | ||||||||
Less: Accumulated depreciation and amortization | (670,402 | ) | (642,619 | ) | |||||
$ | 19,094 | $ | 46,877 |
Note_7_Accrued_Liabilities_Tab
Note 7 - Accrued Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 (Unaudited) | 2012 | ||||||||
Accrued salaries, wages, benefits and bonus | $ | 35,293 | $ | 65,581 | |||||
Sales tax payable | — | 877 | |||||||
Accrued accounting and legal fees | 16,500 | 5,160 | |||||||
Customer deposit payable | — | 36,540 | |||||||
Accrued interest | — | 76,438 | |||||||
Royalty payable | — | 262,500 | |||||||
Other accrued liabilities | 16,060 | 41,860 | |||||||
$ | 67,853 | $ | 488,956 |
Note_11_Stock_Option_Plan_and_1
Note 11 - Stock Option Plan and Stock Incentive Plan (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | ' | ||||||||||||||||
Number of Restricted Shares | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Outstanding and not vested beginning balance at January 1, 2013 | 48,073 | $ | 2.5 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Forfeited/cancelled | (21,798 | ) | $ | 2.46 | |||||||||||||
Released/vested | (9,386 | ) | $ | 2.74 | |||||||||||||
Outstanding and not vested at September 30, 2013 | 16,889 | $ | 2.43 | ||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
Number of Shares Subject to Option | Weighted-Average Exercise Price | ||||||||||||||||
Outstanding at January 1, 2013 | 679,744 | $ | 2.75 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Forfeited/cancelled/expired | (411,040 | ) | $ | 3 | |||||||||||||
Exercised | — | $ | — | ||||||||||||||
Outstanding at March 31, 2013 | 268,704 | $ | 2.38 | ||||||||||||||
Exercisable at March 31, 2013 | 247,871 | $ | 2.4 | ||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted-average volatility | — | — | — | 105.5 | |||||||||||||
Expected dividends | — | — | — | 0 | % | ||||||||||||
Expected life (years) | — | — | — | 2.6 | |||||||||||||
Weighted-average risk-free interest rate | — | — | — | 0.4 | % |
Note_13_Earnings_Per_Share_Tab
Note 13 - Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic: | |||||||||||||||||
Numerator: | |||||||||||||||||
Net loss | $ | (806,259 | ) | $ | (2,238,552 | ) | $ | (2,235,799 | ) | $ | (7,286,454 | ) | |||||
Less: Net loss allocated to participating securities | 169 | 32,415 | 801 | 144,349 | |||||||||||||
Net loss attributable to stockholders | (806,090 | ) | (2,206,137 | ) | (2,234,998 | ) | (7,142,105 | ) | |||||||||
Preferred stock dividend | (28,980 | ) | (75,331 | ) | (124,509 | ) | (117,618 | ) | |||||||||
Preferred deemed dividend | (501,304 | ) | — | (875,304 | ) | — | |||||||||||
$ | (1,336,374 | ) | $ | (2,281,468 | ) | $ | (3,234,811 | ) | $ | (7,259,723 | ) | ||||||
Denominator: | |||||||||||||||||
Weighted-average shares outstanding | 81,763,478 | 20,176,051 | 56,716,084 | 18,536,062 | |||||||||||||
Weighted-average unvested restricted shares outstanding | (17,106 | ) | (292,164 | ) | (20,317 | ) | (367,211 | ) | |||||||||
Denominator for basic net loss per share | 81,746,372 | 19,883,887 | 56,695,767 | 18,168,851 | |||||||||||||
Basic net loss per share attributable to common stockholders | $ | (0.02 | ) | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.40 | ) | |||||
Diluted: | |||||||||||||||||
Numerator: | |||||||||||||||||
Net loss | $ | (806,259 | ) | $ | (2,238,552 | ) | $ | (2,235,799 | ) | $ | (7,286,454 | ) | |||||
Less: Net loss allocated to participating securities | 169 | 32,415 | 801 | 144,349 | |||||||||||||
Net loss attributable to stockholders | (806,090 | ) | (2,206,137 | ) | (2,234,998 | ) | (7,142,105 | ) | |||||||||
Preferred stock dividend | (28,980 | ) | (75,331 | ) | (124,509 | ) | (117,618 | ) | |||||||||
Preferred deemed dividend | (501,304 | ) | — | (875,304 | ) | — | |||||||||||
$ | (1,336,374 | ) | $ | (2,281,468 | ) | $ | (3,234,811 | ) | $ | (7,259,723 | ) | ||||||
Denominator: | |||||||||||||||||
Denominator for basic calculation | 81,746,372 | 19,883,887 | 56,695,767 | 18,168,851 | |||||||||||||
Weighted-average effect of dilutive stock options | — | — | — | — | |||||||||||||
Denominator for diluted net loss per share | 81,746,372 | 19,883,887 | 56,695,767 | 18,168,851 | |||||||||||||
Diluted net loss per share attributable to common stockholders | $ | (0.02 | ) | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.40 | ) | |||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Stock options outstanding | 268,704 | 679,744 | |||||||||||||||
Unvested restricted stock | 16,889 | 48,073 | |||||||||||||||
Warrants to purchase common stock | 3,398,045 | 3,398,045 | |||||||||||||||
Preferred stock convertible into common stock | 89,353,584 | 35,230,263 |
Note_14_Concentration_of_Risk_
Note 14 - Concentration of Risk (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | ' | ||||||||
Nine Months Ended | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Lennox International Inc. | 7.7 | % | 33.3 | % | |||||
Lowe’s Companies, Inc. | 7.1 | % | 8 | % | |||||
Lennar Corporation | 0 | % | 10.3 | % |
Note_15_Fair_Value_Measurement1
Note 15 - Fair Value Measurement (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||
Liabilities | Level 1 | Level 2 | Level 3 | September 30, | |||||||||||||
2013 | |||||||||||||||||
Fair value of common stock warrant liability | $ | — | $ | — | $ | — | $ | — | |||||||||
Accrued rent related to office closures | — | — | — | — | |||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | |||||||||
Liabilities | Level 1 | Level 2 | Level 3 | December 31, | |||||||||||||
2012 | |||||||||||||||||
Fair value of common stock warrant liability | $ | — | $ | — | $ | 9 | $ | 9 | |||||||||
Accrued rent related to office closures | — | — | 8,656 | 8,656 | |||||||||||||
Total | $ | — | $ | — | $ | 8,665 | $ | 8,665 | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||||||||||||||
Other Liabilities* | Common Stock Warrant Liability | Total Level 3 | |||||||||||||||
Beginning balance – January 1, 2013 | $ | 8,656 | $ | 9 | $ | 8,665 | |||||||||||
Total realized and unrealized gains or losses | 44 | (9 | ) | 35 | |||||||||||||
Repayments | (8,700 | ) | — | (8,700 | ) | ||||||||||||
Transfers out of level 3 upon exercise or conversion | — | — | — | ||||||||||||||
Ending balance – September 30, 2013 | $ | — | $ | — | $ | — |
Note_1_Basis_of_Presentation_a1
Note 1 - Basis of Presentation and Description of Business (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 11, 2006 | Aug. 10, 2006 |
Disclosure Text Block [Abstract] | ' | ' | ' | ' |
Number of Shares of Target Company that Each Share of Common Stock Receives in a Merger Transaction (in Shares) | ' | ' | ' | 1 |
Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 | $0.00 | $0.01 |
Note_2_Significant_Accounting_2
Note 2 - Significant Accounting Policies (Details) (USD $) | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||||||
Sep. 30, 2013 | Aug. 30, 2013 | Dec. 31, 2012 | Oct. 21, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Subsequent Event [Member] | Securities Pledged as Collateral [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Accounts Receivable [Member] | Finished Goods [Member] | Cash [Member] | Aggregate, Cash, Raw Material, and Finished Goods [Member] | Patents [Member] | Material and Workmanship [Member] | Installation [Member] | Installation [Member] | Advances [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | ||||
Series D Preferred Stock [Member] | Solar Panels and Inverters [Member] | Installation [Member] | Defective Products [Member] | Solar Panels and Inverters [Member] | Installation [Member] | Defective Products [Member] | Advances [Member] | ||||||||||||||||||
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | $379,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes Payable (in Dollars) | 201,363 | 200,000 | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Threshold Consecutive Trading Days | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Stock Price Trigger (in Dollars per share) | ' | $0.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.99% | ' | ' | ' | ' |
Line Of Credit Facility, Maximum Borrowing Capacity, Percentage | ' | 120.00% | ' | ' | ' | ' | ' | 80.00% | 65.00% | 95.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Expiration Period | '1 year | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Expense (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500 |
Preferred Stock, Shares Issued (in Shares) | ' | ' | ' | ' | 50 | ' | 930 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Collateral Fees, Amount (in Dollars) | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Administrative Fee, Percentage | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Administrative Fee, Amount (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500 | ' | ' | ' | ' | ' |
Prepayment Fee, Percent | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding (in Dollars) | 350,000 | ' | ' | ' | ' | 350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Lines of Credit (in Dollars) | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warranty Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | '25 years | '10 years | '25 years | ' | ' | '15 years | '5 years | '5 years | ' |
Product Warranty Accrual, Current | 331,390 | ' | 329,680 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Other Current Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $991,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '11 years 3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_2_Significant_Accounting_3
Note 2 - Significant Accounting Policies (Details) - Liability for Manufacturing Warranty (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Liability for Manufacturing Warranty [Abstract] | ' | ' |
Beginning accrued warranty balance | $329,680 | $217,812 |
Reduction for labor payments and claims made under the warranty | -1,700 | -1,723 |
Accruals related to warranties issued during the period | 3,410 | 113,591 |
Ending accrued warranty balance | $331,390 | $329,680 |
Note_3_Discontinued_Operations2
Note 3 - Discontinued Operations (Details) (USD $) | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' | ' |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | ' | $11,000 | $32,000 |
Escrow Deposit | 200,000 | ' | ' |
Escrow Deposit Disbursements | $40,000 | ' | ' |
Note_3_Discontinued_Operations3
Note 3 - Discontinued Operations (Details) - Assets and Liabilities Of Discontinued Operations (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets and Liabilities Of Discontinued Operations [Abstract] | ' | ' |
Accounts receivable and other receivables | ' | $1,340 |
Other assets | ' | 9,556 |
Total current assets of discontinued operations | ' | 10,896 |
Security deposit b escrow account for installation jobs | 200,000 | 200,000 |
Total assets of discontinued operations | 200,000 | 210,896 |
Accrued liabilities | ' | 8,656 |
Accrued warranty | 990,933 | 1,042,663 |
Deferred revenue | ' | 1,500 |
Total current liabilities | $990,933 | $1,052,819 |
Note_4_Accounts_Receivable_Det
Note 4 - Accounts Receivable (Details) - Accounts Receivable (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Accounts Receivable [Abstract] | ' | ' |
Trade accounts | $178,070 | $490,401 |
Less: Allowance for bad debts | -142,000 | -108,750 |
Less: Allowance for returns | -2,291 | -15,806 |
$33,779 | $365,845 |
Note_4_Accounts_Receivable_Det1
Note 4 - Accounts Receivable (Details) - Allowance for Doubtful Accounts (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Allowance for Doubtful Accounts [Abstract] | ' | ' | ' |
Balance at Beginning of Period | $108,750 | $39,000 | $39,000 |
Provisions, net | 89,325 | 476,258 | 485,072 |
Balance at End of Period | 142,000 | ' | 108,750 |
Write-Off/Recovery | ($56,075) | ' | ($415,322) |
Note_5_Inventory_Details
Note 5 - Inventory (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Sep. 30, 2013 | |
Inventory Disclosure [Abstract] | ' | ' |
Inventory Adjustments | ($11,000) | ($5,000) |
Inventory Write-down | 206,000 | ' |
Write-off of Accumulated Inventory Overhead Costs | 65,000 | ' |
Non-cash Inventory Write-off | $112,000 | ' |
Note_5_Inventory_Details_Inven
Note 5 - Inventory (Details) - Inventory Schedule (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventory Schedule [Abstract] | ' | ' |
Finished goods | $950,831 | $755,643 |
Work in process | 106,110 | 240,070 |
$1,056,941 | $995,713 |
Note_6_Property_and_Equipment_2
Note 6 - Property and Equipment, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' | ' | ' |
Depreciation | $8,000 | $40,000 | $28,000 | $120,000 | $27,784 | $120,345 |
Note_6_Property_and_Equipment_3
Note 6 - Property and Equipment, Net (Details) - Property and Equipment, Net (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $689,496 | $689,496 |
Less: Accumulated depreciation and amortization | -670,402 | -642,619 |
19,094 | 46,877 | |
Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 522,745 | 522,745 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 148,759 | 148,759 |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $17,992 | $17,992 |
Note_7_Accrued_Liabilities_Det
Note 7 - Accrued Liabilities (Details) - Accrued Liabilities (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Accrued Liabilities [Abstract] | ' | ' |
Accrued salaries, wages, benefits and bonus | $35,293 | $65,581 |
Sales tax payable | ' | 877 |
Accrued accounting and legal fees | 16,500 | 5,160 |
Customer deposit payable | ' | 36,540 |
Accrued interest | ' | 76,438 |
Royalty payable | ' | 262,500 |
Other accrued liabilities | 16,060 | 41,860 |
$67,853 | $488,956 |
Note_8_Credit_Facility_Details
Note 8 - Credit Facility (Details) (USD $) | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||
Sep. 30, 2013 | Aug. 30, 2013 | Oct. 21, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 15, 2011 | Sep. 30, 2013 | Aug. 30, 2013 | Sep. 30, 2013 | |
Subsequent Event [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Accounts Receivable [Member] | Finished Goods [Member] | Cash [Member] | Aggregate, Cash, Raw Material, and Finished Goods [Member] | Advances [Member] | The 2011 Credit Facility [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | |||
Securities Pledged as Collateral [Member] | Advances [Member] | ||||||||||||||
Note 8 - Credit Facility (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes Payable (in Dollars) | $201,363 | $200,000 | ' | ' | ' | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' |
Debt Instrument, Convertible, Stock Price Trigger (in Dollars per share) | ' | $0.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.99% | ' |
Line of Credit Facility, Repayment of Principle and Accrued Interest, Total, Percent | ' | 120.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Initiation Date | 30-Sep-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Expiration Period | '1 year | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | 750,000 | ' | ' | ' |
Line Of Credit Facility, Maximum Borrowing Capacity, Percentage | ' | 120.00% | ' | ' | ' | ' | 80.00% | 65.00% | 95.00% | ' | ' | ' | ' | ' | ' |
Interest Expense (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500 |
Preferred Stock, Shares Issued (in Shares) | ' | ' | ' | 50 | ' | 930 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Collateral Fees, Amount (in Dollars) | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Administrative Fee, Percentage | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Administrative Fee, Amount (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500 | ' | ' |
Prepayment Fee, Percent | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding (in Dollars) | 350,000 | ' | ' | ' | 350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Lines of Credit (in Dollars) | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Gross Eligible Account Receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' |
Gross Eligible Accounts Receivables (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,500,000 | ' | ' | ' |
Note_9_Stockholders_Equity_Det
Note 9 - Stockholders' Equity (Details) (USD $) | 1 Months Ended | 9 Months Ended | |||||||
Mar. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 11, 2006 | Mar. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Common Stock [Member] | Series A Convertible Redeemable Preferred Stock [Member] | Series B Convertible Redeemable Preferred Stock [Member] | Series C Convertible Redeemable Preferred Stock [Member] | Series D Convertible Redeemable Preferred Stock [Member] | |||||
Note 9 - Stockholders' Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of Capital Stock Authorized under Certificate of Incorporation | ' | ' | ' | 501,000,000 | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | ' | 500,000,000 | 500,000,000 | 500,000,000 | ' | ' | ' | ' | ' |
Preferred Stock, Shares Authorized | ' | ' | ' | 1,000,000 | ' | 2,000 | 4,000 | 1,175 | 1,150 |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | ' | ' | ' | ' | ' | $0.00 | $0.00 | ' | ' |
Preferred Stock, Dividend Rate, Percentage | ' | ' | ' | ' | ' | ' | 4.00% | 8.00% | 8.00% |
Preferred Stock, Shares Outstanding | ' | ' | ' | ' | ' | ' | 823 | ' | ' |
Temporary Equity, Par or Stated Value Per Share (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 |
Temporary Equity, Shares Outstanding | ' | ' | ' | ' | ' | ' | ' | 97 | 950 |
Stock Issued During Period, Shares, Purchase of Assets (in Shares) | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Share Price (in Dollars per share) | ' | ' | ' | ' | $0.55 | ' | ' | ' | ' |
Stock Issued During Period, Value, Purchase of Assets (in Dollars) | $1,045,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Note_10_Convertible_Redeemable1
Note 10 - Convertible Redeemable Preferred Stock and Preferred Deemed Dividend (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||||||||||||||||||
Feb. 17, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 30, 2013 | Dec. 31, 2012 | Aug. 30, 2013 | Oct. 18, 2012 | Aug. 30, 2013 | Jan. 24, 2013 | Nov. 02, 2012 | Aug. 30, 2013 | 13-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 30, 2013 | 13-May-13 | Oct. 18, 2012 | 13-May-13 | Jan. 24, 2013 | Nov. 02, 2012 | Oct. 18, 2012 | Aug. 30, 2013 | Jan. 24, 2013 | 13-May-13 | Mar. 21, 2013 | Feb. 15, 2013 | Aug. 30, 2013 | 13-May-13 | Feb. 15, 2013 | |
Additional Financing [Member] | Additional Financing [Member] | Additional Financing [Member] | Additional Financing [Member] | Additional Financing [Member] | Additional Financing [Member] | Contingent Conversion Feature [Member] | Securities Pledged as Collateral [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | ||||||||
Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | First Year [Member] | Second Year and Thereafter [Member] | Maximum [Member] | Maximum [Member] | |||||||||||||||||||||
Note 10 - Convertible Redeemable Preferred Stock and Preferred Deemed Dividend (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Equity Units Sold During Period | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Units Sold During Period, Price Per Unit (in Dollars per share) | $900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance or Sale of Equity (in Dollars) | $3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Stock Issuance Costs (in Dollars) | 532,000 | ' | ' | 55,919 | 90,754 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Preferred Shares Converted | ' | ' | ' | 3,177 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Conversion of Convertible Securities | ' | ' | ' | 43,430,415 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Dividend Rate, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 8.00% | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Number of Shares Designated as Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,750 | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Stated Value (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | $1,000 | ' | ' | ' |
Share Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.05 | $0.08 | $0.16 | ' | $0.05 | ' | ' | ' | ' | ' | ' |
Debt Covenants, Maximum Indebtedness Amount (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Securities Purchase Agreement, Maximum Number of Shares Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,245 | ' | ' | ' | ' | 1,150 | ' | ' | ' |
Securities Purchase Agreement, Maximum Aggregate Proceeds from Issuance of Preferred Stock (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,245,000 | ' | ' | ' | ' | 1,000,000 | ' | ' | ' |
Preferred Stock, Number of Shares Issued During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75 | 350 | 750 | ' | ' | 583 | 167 | 150 | ' | ' | ' |
Proceeds from Issuance of Preferred Stock and Preference Stock (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | 350,000 | 750,000 | ' | ' | 175,000 | 100,000 | 150,000 | ' | ' | ' |
Convertible Preferred Stock, Shares Issued upon Conversion | ' | ' | ' | ' | ' | ' | ' | 37,020,234 | ' | 4,833,350 | ' | ' | 465,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 4,375,000 | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock, Conversion Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.02 | ' | $0.02 | $0.05 | $0.08 | $0.02 | $0.03 | ' | ' | ' | $0.03 | $0.03 | ' | $0.05 | $0.08 | $0.16 | ' | $0.03 | $0.08 | $0.03 | ' | ' | $0.10 | ' | ' |
Preferred Stock, Shares Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 823 | ' | 97 | 720 | 750 | ' | 147 | 720 | ' | ' | ' | 930 | ' | ' |
Preferred Stock, Shares Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 | ' | ' | ' | ' | ' | ' | 720 | 750 | ' | 147 | 720 | ' | ' | ' | 930 | ' | ' |
Redeemable Preferred Stock Dividends (in Dollars) | ' | 501,304 | 0 | 875,304 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 104,000 | ' | 363,000 | ' | 36,000 | 270,000 | ' | ' | ' | ' | ' | ' |
Preferred Stock, Convertible, Conversion Price Floor (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities Purchase Agreement, Maximum Multiplication Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.34 | 1.67 |
Common Stock, Shares, Issued | ' | 91,931,852 | ' | 91,931,852 | ' | ' | 26,924,643 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 260 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes Payable (in Dollars) | ' | 201,363 | ' | 201,363 | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | ' | 500,000 | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Collateral Fee (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_11_Stock_Option_Plan_and_2
Note 11 - Stock Option Plan and Stock Incentive Plan (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Aug. 08, 2006 | |
Note 11 - Stock Option Plan and Stock Incentive Plan (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | ' | ' | ' | ' | ' | 50,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 48,102,924 | ' | 48,102,924 | ' | ' | ' |
Expiration Rate Per Year of Restriction Period on Restricted Stock Grants | 25.00% | ' | 25.00% | ' | ' | ' |
Expiration Period of Restricted Stock Grants | ' | ' | '4 years | ' | ' | ' |
Term of Options | ' | ' | '5 years | ' | ' | ' |
Share-based Compensation | $107,000 | $130,000 | $30,488 | $570,402 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | ' | ' | '2 years 146 days | ' | '3 years 36 days | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | ' | ' | 45,000 | 41,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0 | ' | 0 | ' | ' | ' |
Restricted Stock [Member] | ' | ' | ' | ' | ' | ' |
Note 11 - Stock Option Plan and Stock Incentive Plan (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 32,000 | ' | 32,000 | ' | 96,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '1 year 73 days | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | ' | ' | 700 | 229,000 | ' | ' |
Employee Stock Option [Member] | ' | ' | ' | ' | ' | ' |
Note 11 - Stock Option Plan and Stock Incentive Plan (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $17,000 | ' | $17,000 | ' | 127,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '146 days | ' | ' | ' |
Note_11_Stock_Option_Plan_and_3
Note 11 - Stock Option Plan and Stock Incentive Plan (Details) - Summary of Restricted Stock Activity (Restricted Stock [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Restricted Stock [Member] | ' |
Note 11 - Stock Option Plan and Stock Incentive Plan (Details) - Summary of Restricted Stock Activity [Line Items] | ' |
Outstanding and not vested beginning balance at January 1, 2013 | 48,073 |
Outstanding and not vested beginning balance at January 1, 2013 (in Dollars per share) | $2.50 |
Granted | 0 |
Granted (in Dollars per share) | $0 |
Forfeited/cancelled | -21,798 |
Forfeited/cancelled (in Dollars per share) | $2.46 |
Released/vested | -9,386 |
Released/vested (in Dollars per share) | $2.74 |
Outstanding and not vested at September 30, 2013 | 16,889 |
Outstanding and not vested at September 30, 2013 (in Dollars per share) | $2.43 |
Note_11_Stock_Option_Plan_and_4
Note 11 - Stock Option Plan and Stock Incentive Plan (Details) - Summary of Stock Option Activity (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Stock Option Activity [Abstract] | ' |
Outstanding at January 1, 2013 | 679,744 |
Outstanding at January 1, 2013 (in Dollars per share) | $2.75 |
Granted | 0 |
Granted (in Dollars per share) | $0 |
Forfeited/cancelled/expired | -411,040 |
Forfeited/cancelled/expired (in Dollars per share) | $3 |
Exercised | 0 |
Exercised (in Dollars per share) | $0 |
Outstanding at March 31, 2013 | 268,704 |
Outstanding at March 31, 2013 (in Dollars per share) | $2.38 |
Exercisable at March 31, 2013 | 247,871 |
Exercisable at March 31, 2013 (in Dollars per share) | $2.40 |
Note_11_Stock_Option_Plan_and_5
Note 11 - Stock Option Plan and Stock Incentive Plan (Details) - Fair Value of Stock Option Grants | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Fair Value of Stock Option Grants [Abstract] | ' | ' | ' | ' |
Weighted-average volatility | 0.00% | 0.00% | 0.00% | 105.50% |
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Expected life (years) | '0 years | '0 years | '0 years | '2 years 219 days |
Weighted-average risk-free interest rate | 0.00% | 0.00% | 0.00% | 0.40% |
Note_12_Stock_Warrants_and_War1
Note 12 - Stock Warrants and Warrant Liability (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 31, 2009 | Mar. 31, 2013 | Sep. 30, 2013 | Feb. 17, 2011 | Mar. 30, 2012 | Mar. 31, 2012 | |
Series E Warrants [Member] | Series E Warrants [Member] | Series E Warrants [Member] | Series K Warrants [Member] | Series K Warrants [Member] | Series K Warrants [Member] | ||||||
Note 12 - Stock Warrants and Warrant Liability (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Warrants Issued During Period (in Shares) | ' | ' | ' | ' | ' | 334,822 | ' | ' | 1,700,002 | ' | ' |
Warrants Issued, Weighted Average Exercise Price (in Dollars per share) | ' | ' | ' | ' | ' | $5.36 | ' | ' | $2.40 | ' | ' |
Fair Value Assumptions, Risk Free Interest Rate | ' | ' | ' | ' | ' | 2.69% | 0.70% | ' | 1.40% | 0.50% | ' |
Fair Value Assumptions, Expected Term | ' | ' | ' | ' | ' | '5 years | '328 days | ' | '4 years 36 days | '3 years | ' |
Fair Value Assumptions, Expected Volatility Rate | ' | ' | ' | ' | ' | 112.00% | 127.50% | ' | 103.20% | 109.30% | ' |
Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% | 0.00% | ' | 0.00% | 0.00% | ' | 0.00% | 0.00% | ' |
Warrants Issued During Period, Value (in Dollars) | ' | ' | ' | ' | ' | $1,000,000 | ' | ' | $2,600,000 | ' | ' |
Derivative Liability (in Dollars) | 0 | ' | 0 | ' | 9 | 1,000,000 | 0 | ' | 2,600,000 | ' | ' |
Derivative, Gain (Loss) on Derivative, Net (in Dollars) | ' | 8,972 | 9 | -417,668 | ' | ' | ' | 9 | ' | ' | ' |
Period from which Warrants Become Exercisable | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' |
Term of Warrants | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' |
Number of Warrants Exercised During Period (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 472,222 |
Warrants Exercised, Weighted Average Exercise Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.60 |
Proceeds from Warrant Exercises (in Dollars) | ' | ' | ' | 283,334 | ' | ' | ' | ' | ' | ' | 283,000 |
Change in Estimated Value Assigned to Warrants Classified as Increase to Equity and Decrease to Warrant Liability (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 253,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | 1.36 | ' | 1.36 | ' | ' | ' | ' | ' | ' | 0.4 | ' |
Warrants and Rights Outstanding (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 481,000 | ' |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $425,000 |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 3,398,045 | ' | 3,398,045 | ' | ' | ' | ' | ' | ' | ' | ' |
Note_13_Earnings_Per_Share_Det
Note 13 - Earnings Per Share (Details) - Computation of Basic and Diluted Net Loss Per Share (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Computation of Basic and Diluted Net Loss Per Share [Abstract] | ' | ' | ' | ' |
Net loss | ($806,259) | ($2,238,552) | ($2,235,799) | ($7,286,454) |
Net loss allocated to participating securities | 169 | 32,415 | 801 | 144,349 |
Net loss attributable to stockholders | -806,090 | -2,206,137 | -2,234,998 | -7,142,105 |
Preferred stock dividend | -28,980 | -75,331 | -124,509 | -117,618 |
Preferred deemed dividend | -501,304 | 0 | -875,304 | 0 |
-1,336,374 | -2,281,468 | -3,234,811 | -7,259,723 | |
($1,336,374) | ($2,281,468) | ($3,234,811) | ($7,259,723) | |
Weighted-average shares outstanding (in Shares) | 81,763,478 | 20,176,051 | 56,716,084 | 18,536,062 |
Weighted-average unvested restricted shares outstanding (in Shares) | -17,106 | -292,164 | -20,317 | -367,211 |
Denominator for basic calculation (in Shares) | 81,746,372 | 19,883,887 | 56,695,767 | 18,168,851 |
Weighted-average effect of dilutive stock options (in Shares) | 0 | 0 | 0 | 0 |
Denominator for diluted net loss per share (in Shares) | 81,746,372 | 19,883,887 | 56,695,767 | 18,168,851 |
Diluted net loss per share attributable to common stockholders (in Dollars per share) | ($0.02) | ($0.11) | ($0.06) | ($0.40) |
Basic net loss per share attributable to common stockholders (in Dollars per share) | ($0.02) | ($0.11) | ($0.06) | ($0.40) |
Note_13_Earnings_Per_Share_Det1
Note 13 - Earnings Per Share (Details) - Anti-dilutive Securities Excluded from Computation of Diluted Net Loss Per Share | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Equity Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities | 268,704 | 679,744 |
Restricted Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities | 16,889 | 48,073 |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities | 3,398,045 | 3,398,045 |
Preferred Stock - Convertible [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities | 89,353,584 | 35,230,263 |
Note_14_Concentration_of_Risk_1
Note 14 - Concentration of Risk (Details) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Mar. 30, 2012 | 1-May-12 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Lennox International Inc. [Member] | Lennox International Inc. [Member] | Lowe's Companies, Inc. [Member] | Lowe's Companies, Inc. [Member] | Suntech America [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | |||
Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |||||||
Note 14 - Concentration of Risk (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Purchase of Assets (in Shares) | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Purchase of Assets (in Dollars) | $1,045,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accruing Interest Rate on Unpaid Account Payable Balance | ' | 946438.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts Payable, Other (in Dollars) | ' | ' | ' | ' | ' | ' | 946,438 | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | 0.70% | 5.90% | 8.80% | 4.00% | ' | ' | ' | ' |
Concentration Risk, Customer | ' | ' | ' | ' | ' | ' | ' | 'three | ' | 'three |
Concentration Risk, Percentage | ' | ' | ' | ' | ' | ' | ' | 25.00% | 36.00% | ' |
Accounts Payable (in Dollars) | ' | ' | ' | ' | ' | ' | ' | $1,100,000 | ' | $960,000 |
Note_14_Concentration_of_Risk_2
Note 14 - Concentration of Risk (Details) - Percentages of Sales to Largest Customers (Sales Revenue, Goods, Net [Member]) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Lennox International Inc. [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of sales | 7.70% | 33.30% |
Lowe's Companies, Inc. [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of sales | 7.10% | 8.00% |
Lennar Corporation [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of sales | 0.00% | 10.30% |
Note_15_Fair_Value_Measurement2
Note 15 - Fair Value Measurement (Details) (Minimum [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Minimum [Member] | ' |
Note 15 - Fair Value Measurement (Details) [Line Items] | ' |
Fair Value Inputs, Discount Rate | 0.60% |
Note_15_Fair_Value_Measurement3
Note 15 - Fair Value Measurement (Details) - Assets and Liabilities Measured at Fair Value (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Note 15 - Fair Value Measurement (Details) - Assets and Liabilities Measured at Fair Value [Line Items] | ' | ' |
Fair value of common stock warrant liability | $0 | $9 |
Accrued rent related to office closures | 0 | 8,656 |
Total | 0 | 8,665 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Note 15 - Fair Value Measurement (Details) - Assets and Liabilities Measured at Fair Value [Line Items] | ' | ' |
Fair value of common stock warrant liability | 0 | 0 |
Accrued rent related to office closures | 0 | 0 |
Total | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Note 15 - Fair Value Measurement (Details) - Assets and Liabilities Measured at Fair Value [Line Items] | ' | ' |
Fair value of common stock warrant liability | 0 | 0 |
Accrued rent related to office closures | 0 | 0 |
Total | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Note 15 - Fair Value Measurement (Details) - Assets and Liabilities Measured at Fair Value [Line Items] | ' | ' |
Fair value of common stock warrant liability | 0 | 9 |
Accrued rent related to office closures | 0 | 8,656 |
Total | $0 | $8,665 |
Note_15_Fair_Value_Measurement4
Note 15 - Fair Value Measurement (Details) - Changes in Level 3 Liabilities Measured at Fair Value on Recurring Basis (USD $) | 9 Months Ended | |
Sep. 30, 2013 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | |
Beginning balance b January 1, 2013 | $8,665 | |
Total realized and unrealized gains or losses | 35 | |
Repayments | -8,700 | |
Accrued and Other Long-term Liabilities [Member] | ' | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | |
Beginning balance b January 1, 2013 | 8,656 | [1] |
Total realized and unrealized gains or losses | 44 | [1] |
Repayments | -8,700 | [1] |
Ending balance b September 30, 2013 | ' | [1] |
Common Stock Warrant Liability [Member] | ' | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | |
Beginning balance b January 1, 2013 | 9 | |
Total realized and unrealized gains or losses | ($9) | |
[1] | Represents the estimated fair value of the office closures included in accrued and other long-term liabilities. |
Note_16_Income_Taxes_Details
Note 16 - Income Taxes (Details) | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' |
Valuation Allowance as Percentage of Deferred Tax Asset | 100.00% |
Note_17_Commitments_and_Contin1
Note 17 - Commitments and Contingencies (Details) (USD $) | Sep. 30, 2013 | Mar. 15, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Loss Contingency, Estimate of Possible Loss | ' | $946,438 |
Loss Contingency Accrual | $946,438 | ' |