Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 30, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | AUDIOEYE INC | ||
Entity Central Index Key | 1,362,190 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 8,756,678 | ||
Trading Symbol | AEYE | ||
Entity Common Stock, Shares Outstanding | 81,717,154 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash | $ 1,687,257 | $ 1,672,901 |
Accounts receivable, net | 22,741 | 261,676 |
Related party receivables | 0 | 10,000 |
Marketable securities held in related party | 3,600 | 13,800 |
Non-marketable securities held in related party | 50,000 | 50,000 |
Subscription receivable | 0 | 1,175,000 |
Prepaid expenses and other current assets | 41,388 | 90,688 |
Total Current Assets | 1,804,986 | 3,274,065 |
Property and equipment, net | 0 | 651 |
Intangible assets, net | 2,840,856 | 3,097,293 |
Goodwill | 700,528 | 700,528 |
Total Assets | 5,346,370 | 7,072,537 |
Current Liabilities | ||
Accounts payable and accrued expenses | 213,620 | 779,891 |
Billings in excess of revenues | 0 | 123,908 |
Notes and loans payable-current | 24,000 | 24,000 |
Related party payables | 153,474 | 228,983 |
Derivative liabilities | 439,361 | 0 |
Deferred revenue | 60,790 | 0 |
Total Current Liabilities | 891,245 | 1,156,782 |
Long Term Liabilities | ||
Convertible notes and loans payable-long term, net | 1,923,499 | 51,800 |
Related party loans | 0 | 0 |
Total Long Term Liabilities | 1,923,499 | 51,800 |
Total Liabilities | 2,814,744 | 1,208,582 |
STOCKHOLDERS' EQUITY | ||
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized, 175,000 and none issued and outstanding as of December 31, 2015 and 2014, respectively | 2 | 0 |
Common stock, $0.00001 par value, 250,000,000 shares authorized, 81,717,154 and 77,817,861 issued and outstanding, as of December 31, 2015 and 2014, respectively | 817 | 778 |
Treasury stock | (623,000) | (623,000) |
Additional paid-in capital | 27,393,238 | 23,516,463 |
Accumulated deficit | (24,239,431) | (17,030,286) |
Total Stockholders' Equity | 2,531,626 | 5,863,955 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 5,346,370 | $ 7,072,537 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Preferred Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 175,000 | 175,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 |
Common Stock, Shares, Issued | 81,717,154 | 77,817,861 |
Common Stock, Shares, Outstanding | 81,717,154 | 77,817,861 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | $ 338,863 | $ 516,807 |
Revenues from related parties | 0 | 6,500 |
Total revenues | 338,863 | 523,307 |
Cost of services | 1,224,652 | 1,197,936 |
Gross (Loss)/Profit | (885,789) | (674,629) |
Selling and marketing expenses | 884,440 | 1,537,732 |
Research and technology expenses | 375,817 | 610,329 |
General and administrative expenses | 4,633,702 | 6,455,327 |
Amortization and depreciation | 534,220 | 416,009 |
Total operating expenses | 6,428,179 | 9,019,397 |
Operating loss | (7,313,968) | (9,694,026) |
Other income (expense) | 3,814 | 0 |
Unrealized loss on marketable securities | (10,200) | (10,200) |
Loss on conversion of accounts receivable to marketable securities | 0 | (36,000) |
Unrealized gain (loss) on derivative liabilities | 187,932 | 0 |
Interest expense | (72,443) | (10,587) |
Interest expense - related party | (4,280) | 0 |
Total other expense | 104,823 | (56,787) |
Net loss | (7,209,145) | (9,750,813) |
Deemed dividend on Series A Convertible preferred stock | (594,641) | 0 |
Dividend on Series A Convertible preferred stock | (58,733) | 0 |
Net loss attributable to common stockholders | $ (7,862,519) | $ (9,750,813) |
Net loss per common share basic and diluted | $ (0.10) | $ (0.16) |
Weighted average common shares outstanding basic and diluted | 80,445,509 | 61,962,359 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Noncontrolling Interest [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2013 | $ 5,329,271 | $ 532 | $ 13,231,212 | $ (623,000) | $ (7,279,473) | |
Balance (in shares) at Dec. 31, 2013 | 53,239,369 | |||||
Common stock issued for cash and subscription receivables, net | 3,857,689 | $ 108 | 3,857,581 | 0 | 0 | |
Common stock issued for cash and subscription receivables, net (in shares) | 10,820,834 | |||||
Common stock issued for exercise of warrants | 3,643,970 | $ 117 | 3,643,853 | 0 | 0 | |
Common stock issued for exercise of warrants (in shares) | 11,678,806 | |||||
Common stock issued for services | 918,315 | $ 20 | 918,295 | 0 | 0 | |
Common stock issued for services (in shares) | 1,963,537 | |||||
Cashless exercise of options and warrants | 0 | $ 1 | (1) | 0 | 0 | |
Cashless exercise of options and warrants (in shares) | 115,315 | |||||
Warrants, Options and PSU issued for services | 1,844,009 | $ 0 | 1,844,009 | 0 | 0 | |
Warrants issued for conversion of accrued salary | 21,514 | 0 | 21,514 | 0 | 0 | |
Net loss | (9,750,813) | 0 | 0 | 0 | (9,750,813) | |
Balance at Dec. 31, 2014 | 5,863,955 | $ 778 | 23,516,463 | (623,000) | (17,030,286) | |
Balance (in shares) at Dec. 31, 2014 | 77,817,861 | |||||
Preferred stock issued for cash | 1,750,000 | $ 2 | 1,749,998 | 0 | 0 | |
Preferred stock issued for cash (in shares) | 0 | 175,000 | ||||
Common stock issued for cash and subscription receivables, net | 325,000 | $ 8 | 324,992 | 0 | 0 | |
Common stock issued for cash and subscription receivables, net (in shares) | 812,500 | |||||
Common stock issued for exercise of warrants | 43,941 | $ 1 | 43,940 | 0 | 0 | |
Common stock issued for exercise of warrants (in shares) | 109,855 | |||||
Common stock issued for services | $ 682,126 | $ 31 | 682,095 | 0 | 0 | |
Common stock issued for services (in shares) | 2,300,000 | 3,101,936 | ||||
Warrants issued for cancellation of common stock | $ 0 | $ (1) | 1 | 0 | 0 | |
Warrants issued for cancellation of common stock (in shares) | (124,998) | |||||
Warrants, Options and PSU issued for services | 1,075,749 | $ 0 | 1,075,749 | 0 | 0 | |
Net loss | (7,209,145) | 0 | 0 | 0 | (7,209,145) | |
Balance at Dec. 31, 2015 | $ 2,531,626 | $ 817 | $ 2 | $ 27,393,238 | $ (623,000) | $ (24,239,431) |
Balance (in shares) at Dec. 31, 2015 | 81,717,154 | 175,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from operating activities: | ||
Net loss | $ (7,209,145) | $ (9,750,813) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 534,220 | 416,009 |
Option, warrant and PSU expense | 1,075,749 | 1,844,009 |
Amortization of debt discount | 26,992 | 1,155 |
Unrealized loss on marketable securities | 10,200 | 10,200 |
Stock issued for services | 682,126 | 918,315 |
Bad debt expense | 0 | 108,320 |
Loss on conversion of accounts receivable to marketable securities | 0 | 36,000 |
Gain on derivative liabilities | (187,932) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 238,935 | 139,301 |
Related party receivable | 10,000 | 72,250 |
Other current assets | 49,300 | (90,688) |
Accounts payable and accruals | (566,272) | 384,875 |
Billings in excess of revenues | (123,908) | 123,908 |
Deferred revenue | 60,790 | 0 |
Related party payables | (75,509) | (14,441) |
Net cash (used in) operating activities | (5,474,454) | (5,801,600) |
Cash Flows from investing activities: | ||
Cash (paid for) intellectual property | (43,689) | (48,037) |
Investment in non-marketable securities held in related party | 0 | (50,000) |
Software development costs | (233,442) | (388,125) |
Net cash (used in) investing activities | (277,131) | (486,162) |
Cash Flows from financing activities: | ||
Payments on related party loans | 0 | (35,000) |
Payments on debt | (28,000) | (178,000) |
Issuance of common stock for cash | 325,000 | 2,682,689 |
Collection of stock subscription receivable | 1,175,000 | 0 |
Issuance of preferred stock for cash | 1,750,000 | 0 |
Proceeds from exercise of options and warrants, net of issuance costs | 43,941 | 3,643,970 |
Borrowings on convertible debt | 2,500,000 | 0 |
Net cash provided by financing activities | 5,765,941 | 6,113,659 |
Net (decrease) increase in cash | 14,356 | (174,103) |
Cash - beginning of period | 1,672,901 | 1,847,004 |
Cash - end of period | 1,687,257 | 1,672,901 |
NON-CASH FINANCING ACTIVITIES | ||
Debt discount for warrants issued with debt | 627,293 | 0 |
Warrant issued for cancellation of common stock | 1 | 0 |
Deemed dividend on Series A Convertible preferred stock | 594,641 | 0 |
Warrants issued for accrued salary | 0 | 21,514 |
Common stock issued for subscription receivable | 0 | 1,175,000 |
Conversion of accounts receivable to marketable securities | 0 | 60,000 |
Common stock issued for cashless exercise of options and warrants | 0 | 1 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash interest paid | 4,567 | 11,301 |
Income taxes paid | $ 0 | $ 0 |
OVERVIEW AND GOING CONCERN
OVERVIEW AND GOING CONCERN | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1: OVERVIEW AND GOING CONCERN Organization and Business AudioEye, Inc. (the “Company”) was incorporated on May 20, 2005 in the state of Delaware. On March 31, 2010, the Company was acquired by CMG Holdings Group, Inc., a Nevada corporation (“CMG”). Effective August 17, 2012, AudioEye Acquisition Corporation, a Nevada corporation (“AEAC”), acquired 80 The Company has developed patented, Internet content publication and distribution software that enables conversion of any media into accessible formats and allows for real time distribution to end users on any Internet connected device. The Company’s focus is to create more comprehensive access to Internet, print, broadcast and other media to all people regardless of their network connection, device, location, or disabilities. The Company is focused on developing innovations in the field of networked and device embedded audio technology. The Company owns a unique patent portfolio comprised of six issued patents in the United States, a notice of allowance from the U.S. Patent and Trademark Office for a seventh patent, and two U.S. patents pending with additional patents being drafted for filing with the U.S. Patent and Trademark Office and internationally. On August 17, 2012, AEAC acquired 80 1. CMG would retain 15 2. CMG would distribute to its stockholders, in the form of a dividend, 5 3. The Company entered into a Royalty Agreement with CMG to pay to CMG 10 4. The Company entered into a Services Agreement with CMG whereby CMG will receive a commission of not less than 7.5 10 On March 22, 2013, the Company and AEAC entered into the Merger Agreement. Pursuant to the Merger Agreement, each share of AEAC common stock issued and outstanding immediately prior to the Merger effective date would be converted into .94134 share of the Company’s common stock and the outstanding convertible debentures of AEAC (the “AEAC Debentures”) in the aggregate principal amount of $ 1,400,200 67,732 24,004,143 5,871,752 On November 12, 2013, the Company and CMG terminated the Royalty Agreement. On December 30, 2013, the Company completed the repurchase of 2,184,583 573,022 50,000 Going Concern As of December 31, 2015, the Company had working capital of $ 913,741 5,474,454 In addition, the Company has incurred net losses since inception. While the Company has been successful in raising capital in the past, there is no assurance that it will be successful at raising additional capital in the future. Additionally, if the Company’s plans are not achieved and/or if significant unanticipated events occur, the Company may have to further modify its business plan. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of significant accounting policies is presented to assist in understanding the Company’s financial statements. These accounting policies conform to accounting principles, generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements. The consolidated financial statements include the accounts of the Company and its subsidiary, Empire Technologies, LLC (“Empire”). All significant inter-company accounts and transactions have been eliminated. In October 2010, the Company formed Empire as part of a joint venture with LVS Health Innovations, Inc. (“LVS”) whereby the Company owned 50 50 10 100 During the years ended December 31, 2015 and 2014, Empire had no activity. Empire had no assets or liabilities as of December 31, 2015 and December 31, 2014. The Company acquired 19.5 The Company expenses development costs for research and development until such time as the software became technologically feasible. The Company’s software became technologically feasible at the end of 2013. The software development was substantially completed by the end of August, 2014. The Company further determined that the life of the capitalized software development costs is three years. Further enhancements and Patentable improvements were developed in 2015 and are ongoing. New patents have been filed and are pending as discussed more fully in the Business Description. The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Research and technology expenses are expensed in the period costs are incurred. For the year ended December 31, 2015 and 2014 research and technology expenses totaled $ 375,817 610,329 Revenue is recognized when all applicable recognition criteria have been met, which generally include (a) persuasive evidence of an existing arrangement; (b) fixed or determinable price; (c) delivery has occurred or service has been rendered; and (d) collectability of the sales price is reasonably assured. For software and technology development contracts the Company recognizes revenues on a percentage of completion method based upon several factors including but not limited to (a) estimate of total hours and milestones to complete; (b) total hours completed; (c) delivery of services rendered; (d) change in estimates; and (e) collectability of the contract. The Company had two major customers including their affiliates which generated approximately 67.5 56.3 11.2 87 77 10 Certain Software as a Service (SaaS) and website hosting contracts are prepared and invoiced on an annual basis. Any funds received for hosting services not provided yet are held in deferred revenue, and are recorded as revenue is earned. The Company applies percentage of completion accounting to long term contracts. Revenue is recognized as a portion of the contract term as services are delivered, and differed revenue is recorded, only upon the receipt of cash. Timing and accounts affected by the respective journal entry are triggered when payment is received and applied to invoices in accounts receivable. There were no long-term contracts in process as of December 31, 2015. The Company has a fiscal year ending on December 31. The Company considers cash in savings accounts to be cash equivalents. The Company considers any short-term, highly liquid investments with maturities of three months or less as cash and cash equivalents. The Company has elected the fair value option under ASC 825 for its marketable securities. Marketable securities are classified as available for sale and consist of common stock holdings of publicly traded companies. These securities are marked to market at the end of each reporting period based on the closing price of the security at each balance sheet date. Changes in fair value are recorded as unrealized gains or losses in the consolidated statement of operations in accordance with ASC 320. From time to time, the Company invests in the securities of other entities where there exists no active market for the securities held. Non-marketable securities are recorded at the cost of the investment. The Company establishes an allowance for bad debts through a review of several factors including historical collection experience, current aging status of the customer accounts, and financial condition of the Company’s customers. The Company does not generally require collateral for its accounts receivable. There was an allowance for doubtful accounts of $ -0- 19,675 Property and equipment are carried at the cost of acquisition or construction and depreciated over the estimated useful lives of the assets. Costs associated with repairs and maintenance are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency of the Company’s property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are 5 7 Goodwill is carried at cost and is not amortized. The Company tests goodwill for impairment on an annual basis at the end of each fiscal year, relying on a number of factors including operating results, business plans, economic projections, anticipated future cash flows and marketplace data. Company management uses its judgment in assessing whether goodwill has become impaired between annual impairment tests according to specifications set forth in ASC 350. The Company completed an evaluation of goodwill at December 31, 2015 and 2014 and determined that there was no impairment. The fair value of the Company’s reporting unit is dependent upon the Company’s estimate of future cash flows and other factors. The Company’s estimates of future cash flows include assumptions concerning future operating performance and economic conditions and may differ from actual future cash flows. Estimated future cash flows are adjusted by an appropriate discount rate derived from the Company’s market capitalization plus a suitable control premium at date of the evaluation. The financial and credit market volatility directly impacts the Company’s fair value measurement through the Company’s weighted average cost of capital that the Company uses to determine its discount rate and through the Company’s stock price that the Company uses to determine its market capitalization. Therefore, changes in the stock price may also affect the amount of impairment recorded. The Company recognizes an acquired intangible asset apart from goodwill whenever the intangible asset arises from contractual or other legal rights, or when it can be separated or divided from the acquired entity and sold, transferred, licensed, rented or exchanged, either individually or in combination with a related contract, asset or liability. Such intangibles are amortized over their useful lives. Impairment losses are recognized if the carrying amount of an intangible asset subject to amortization is not recoverable from expected future cash flows and its carrying amount exceeds its fair value. The Company reviews its long-lived assets, including property and equipment, identifiable intangibles, and goodwill annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows will be less than the carrying amount of the assets. The Company’s long-lived assets, including intangibles, are reviewed for impairment whenever events or changes in circumstances indicate that the historical-cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the asset by comparing the undiscounted future net cash flows expected to result from the asset to its carrying value. If the carrying value exceeds the undiscounted future net cash flows of the asset, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Patents were evaluated for impairment and no impairment losses were incurred during the years ended December 31, 2015 and 2014, respectively. The Company accounts for equity instruments issued to non-employees in accordance with the provisions of ASC 505-50, “Equity-Based Payments to Non-Employees”, which requires that such equity instruments are recorded at their fair value on the measurement date, with the measurement of such compensation being subject to periodic adjustment as the underlying equity instruments vest. The Company account for equity instruments issued to employees in accordance with ASC 718 “Stock Compensation”. Under this guidance, stock compensation expense is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the estimated service period (generally the vesting period) on the straight-line attribute method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. These assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. The Company has net operating loss carryforwards available to reduce future taxable income. Future tax benefits for these net operating loss carryforwards are recognized to the extent that realization of these benefits is considered more likely than not. To the extent that the Company will not realize a future tax benefit, a valuation allowance is established. Basic earnings (loss) per share are computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share and basic earnings (loss) per share are not included in the net loss per share computation until the Company has Net Income. Diluted loss per share including the dilutive effects of common stock equivalents on an “as if converted” basis would reduce the loss per share and thereby be antidilutive. The carrying amount of the Company’s financial instruments, consisting of cash equivalents, short-term investments, account and notes receivable, accounts and notes payable, short-term borrowings and certain other liabilities, approximate their fair value due to their relatively short maturities. The carrying amount of the Company’s long-term debt approximates fair value since the stated rate of interest approximates a market rate of interest. Fair value is an estimate of the exit price, representing the amount that would be received to, sell an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price at the measurement date). Fair value measurements are not adjusted for transaction cost. Fair value measurement under generally accepted accounting principles provides for use of a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three levels: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the Company. Level 3: Unobservable inputs reflect the assumptions that the Company develops based on available information about what market participants would use in valuing the asset or liability. An asset or liability’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Availability of observable inputs can vary and is affected by a variety of factors. The Company uses judgment in determining fair value of assets and liabilities and Level 3 assets and liabilities involve greater judgment than Level 1 and Level 2 assets or liabilities. In October and November 2015, the Company issued warrants with an exercise price of $ 0.10 0.10 2.0 The Company estimated the fair value of these derivative warrants at initial issuance and again at each balance sheet date. The changes in fair value are recognized in earnings in the statement of operations under the caption “unrealized gain/(loss) – derivative liability” until such time as the derivative warrants are exercised or expire. The Company used the Black-Scholes Option Pricing model to estimate the fair value of the dates of issuance, the price of the Company stock ranged $ 0.031 0.058 102 1.14 1.75 5 0.0306 4.77 4.85 439,361 187,932 Fair Value Fair Value Hierarchy Assets Marketable securities, December 31, 2015 $ 3,600 Level 1 Marketable securities, December 31, 2014 $ 13,800 Level 1 Liabiilities Derivative Liability , At Issuance $ 627,293 Level 3 Derivative Liability , December 31, 2015 $ 439,361 Level 3 Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying financial statements other than noted. The FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. The update is effective for fiscal years beginning after December 15, 2015. The standard has been applied to our debt issuance from October and November 2015 and is reflected in our financial statements beginning with the period ending December 31, 2015 Effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, the FASB issued ASU 2016-01 amendments, which among other things: • Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. • Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). • Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The Company does not expect the adoption of this update will have a material impact on its consolidated financial statements. |
MARKETABLE AND NON-MARKETABLE S
MARKETABLE AND NON-MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2015 | |
Marketable Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 3: MARKETABLE AND NON-MARKETABLE SECURITIES During 2014, the Company converted $ 60,000 600,000 60,000 24,000 13,800 36,000 10,200 3,600 10,200 During 2014, the Company entered into a licensing transaction where it received 1,200,000 -0- During 2014, the Company invested $ 50,000 97,500 60,000 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4: PROPERTY, PLANT AND EQUIPMENT December 31, December 31, 2015 2014 Computers and peripherals $ 25,478 $ 25,478 Accumulated deprecation (25,478) (24,827) Property, plant and equipment, net $ - $ 651 Depreciation expense totaled $ 651 3,196 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | NOTE 5: INTANGIBLE ASSETS For the year ended December 31, 2015 and 2014, the Company invested in Patents in the amounts of $ 43,689 48,037 Prior to December 31, 2015, patents, technology and other intangibles with contractual terms were generally amortized over their estimated useful lives of ten years. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted. For the year ended December 31, 2015 and 2014, the Company invested in software development in the amounts of $ 233,442 388,125 Prior to any impairment adjustment, intangible assets consisted of the following: December 31, December 31, 2015 2014 Patents $ 3,655,070 $ 3,611,380 Capitalized software development 621,567 388,125 Accumulated amortization (1,435,781) (902,212) Intangible assets, net $ 2,840,856 $ 3,097,293 Amortization expense for patents totaled $ 361,133 346,690 172,436 66,123 Total amortization expense totaled $ 533,569 412,813 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 6: RELATED PARTY TRANSACTIONS Dr. Carr Bettis, Executive Chairman and Chairman of Board of Directors As of December 31, 2015, the Company owed Dr. Bettis $ 72,944 500 1,000 1,000 Sean Bradley, President, Chief Technology Officer, and Secretary As of December 31, 2015 and 2014, the Company owed Sean Bradley $ 6,250 0 David Moradi, a Material Shareholder, on a fully diluted basis As of December 31, 2015 the Company owed David Moradi $ 70,000 4,280 Former officer James Crawford, former Chief Operating Officer, Treasurer and Director During 2014, the Company awarded 53,036 21,514 Former Officer, Nathaniel Bradley, Founder, Former, CEO, Chief Innovation Officer, Treasurer and Director As of December 31, 2012, the Company had an outstanding related party loan to Nathaniel Bradley totaling $ 10,000 During the year ended December 31, 2013, the Company borrowed a total of $ 224,000 28,400 0.40 28,400 6,901 0.35 0.43 0.40 5 100 0 1.37 1.43 6,901 199,000 25,000 746,667 746,667 0.40 35,000 As of December 31, 2015 and 2014, the Company owed $- 0 0 Others The Company holds 60,000 60,000 Peartrack Security Systems is an entity whose Executive Chairman was former Company director, Edward Withrow III. 50,000 97,500 In summary, as of December 31, 2015 and 2014, the total balances of related party payable were $ 153,474 228,983 As of December 31, 2015 and 2014, there were outstanding receivables of $ -0- 10,000 For the year ended December 31, 2015 and 2014, there were revenues earned of $- 0 6,500 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2015 | |
Notes Payable [Abstract] | |
Debt Disclosure [Text Block] | NOTE 7: NOTES PAYABLE 24,000 1,923,499 24,000 51,800 Notes and loans payable December 31, December 31, Short Term Maryland TEDCO $ 24,000 $ 24,000 Total $ 24,000 $ 24,000 Long Term Convertible Secured Note (net of unamortized discounts of $600,301 and $0) 1,899,699 - Maryland TEDCO $ 23,800 $ 51,800 Total $ 1,923,499 $ 51,800 As of December 31, 2012, the Company had an outstanding loan to a third party in the amount of $ 74,900 25 74,900 149,800 2,000 47,800 75,800 24,000 24,000 23,800 51,800 28,000 28,000 On August 3, 2013, the Company borrowed $ 150,000 10 20,000 0.50 6,930 0.47 5 100 0 1.36 143,070 2,384 5,755 148,845 1,155 0 On October 9, 2015 (the “Initial Closing Date”), AudioEye, Inc. (the “Company”) entered into a Note and Warrant Purchase Agreement (the “Purchase Agreement”) with certain investors (the “Investors”) for the issuance and sale of convertible promissory notes in an aggregate principal amount of up to $ 3,750,000 37,500,000 Notes representing up to $2,500,000 in aggregate principal, and Warrants exercisable for up to 25,000,000 shares of Common Stock in the aggregate, may be issued and sold at one or more closings during the 30-day period immediately following the Initial Closing Date. 2,500,000 10 If the Company sells Equity Securities in a single transaction or series of related transactions for cash of at least $ 2,000,000 60 0.10 During 2015, the Company issued notes under this offering totaling $ 2,500,000 627,293 26,992 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 8: COMMITMENTS AND CONTINGENCIES Our principal executive offices are located at 5210 E. Williams Circle, Suite 750, Tucson, Arizona 85711, consisting of approximately 2,362 4,724 2,763 314,485 302,230 21,135 1,280 7,146 500 On August 7, 2013, the Company entered into agreements with the following five executive officers. Of these only Sean Bradley was employed by the Company on December 31, 2015: Nathaniel Bradley three years 200,000 In April 2015, two shareholder class action lawsuits were filed against us and our former officer Nathaniel Bradley and former officer Edward O’Donnell in the U.S. District Court for the District of Arizona. The plaintiffs allege various causes of action against the defendants arising from our announcement that our previously issued financial results for the first three quarters of 2014 and the guidance for the fourth quarter of 2014 and the full year of 2014 could no longer be relied upon. The complaints seek, among other relief, compensatory damages and plaintiff’s counsel’s fees and experts’ fees. The Court has appointed a lead plaintiff and lead counsel. We have responded to the complaints and also filed a motion to dismiss. We believe that the lawsuits have no merit and intend to mount a vigorous defense. Given the current stage of the proceedings in this case, our management currently cannot assess the probability of losses, or reasonably estimate the range of losses, related to these matters. As of December 31, 2015, we have paid the deductible pursuant to the D&O insurance policy, in the amount of $ 100,000 Effective April 24, 2015, Nathaniel Bradley resigned as Chief Executive Officer and President of the Company. Effective with his resignation as Chief Executive Officer and President, the Company’s board of directors appointed Mr. Bradley to serve as Founder and Chief Innovation Officer as well as Treasurer of the Company. Effective May 1, 2015, Mr. Bradley agreed to reduce his annual base salary to $ 125,000 Effective August 27, 2015 Mr. Bradley resigned from his position as Chief Innovation Officer and member of the board of directors. Sean Bradley three years 195,000 Effective April 24, 2015, the Company’s board of directors appointed Sean Bradley to serve as President of the Company as well as continuing as Chief Technology Officer and Secretary. Effective May 1, 2015, Mr. Bradley agreed to reduce his annual base salary to $ 150,000 6,250 1,500,000 (a) satisfaction of a share price condition described below; and (b) 100% achievement of the performance goals by the company and Mr. Bradley, as applicable. Subject to the share price condition, 50% of the target award will be earned by Mr. Bradley at the 85% achievement level, and he can earn up to 150% of the target award at the 125% achievement level. Vesting shall be determined based upon performance measures at the end of each calendar year of 2016 and 2017, with 50% of each target award and performance increase subject to vesting during each performance period. 100 (a) Targeted cash contract bookings (as to 33.33%); (b) Targeted net operating cash flow (as to 33.33%); (c) Board defined operations goals (as to 33.33%) for a performance period. And, vesting shall only occur if the closing share price of the company’s common stock on each of the 20 trading days before and including the end of a performance period is not less than $0.20 per share (as adjusted for stock splits, combinations, recapitalization and the like). James Crawford three years 185,000 Effective April 24, 2015, James Crawford resigned as Chief Operating Officer and Treasurer of the Company. Also on April 24, 2015, the Company and Crawdad, LLC. (“Crawdad”), a limited liability company wholly owned by Mr. Crawford, entered into a Consulting Agreement pursuant to which Crawdad, through Mr. Crawford, is to provide certain consulting services to the Company for a period of 12 months for a consulting fee of $ 5,000 The consulting agreement with Crawdad was terminated by mutual agreement on December 31, 2015. Edward O’Donnell two years 165,000 Effective March 29, 2015, Edward O’Donnell resigned from his position as our Chief Financial Officer. Constantine Potamianos two years 150,000 On August 7, 2015 Constantine Potamianos employment contract expired. Paul Arena 275,000 35,000 50,000 five year 250,000 0.40 1,500,000 0.40 3,000,000 1,500,000 35 35 30 75 1,000,000 3,000,000 125 On March 5, 2015, the Company and Paul Arena entered into a Separation and Release Agreement (the “Separation Agreement”) pursuant to which Mr. Arena resigned as Executive Chairman/Chairman of the Board and a member of the Board of Directors. Under the Separation Agreement, the Company and Mr. Arena agreed that, pursuant to his Stock Option Agreement with the Company, options to purchase 500,000 common shares have been vested, options to purchase an additional 500,000 500,000 500,000 250,000 50,000 Also on March 5, 2015, the Company and AIM Group, Inc. (“AIM”), a corporation wholly owned by Mr. Arena, entered into a Consulting Agreement (the “Consulting Agreement”) pursuant to which AIM, through Mr. Arena, is to provide certain consulting services to the Company for a period of one year. Under the Consulting Agreement, AIM was to receive a one-time net payment of $ 267,000 425,000 54,892 479,892 250,909 0 228,983 Dr. Carr Bettis . one 175,000 750,000 2,000,000 (a) satisfaction of a share price condition described below; and (b) 100% achievement of the performance goals by the company and Dr. Bettis, as applicable. Subject to the share price condition, 50% of the target award will be earned by Dr. Bettis at the 85% achievement level, and he can earn up to 150% of the target award at the 125% achievement level. Vesting shall be determined based upon performance measures at the end of each calendar year of 2016 and 2017, with 50% of each target award and performance increase subject to vesting during each performance period. 100 (a) Targeted cash contract bookings (as to 33.33%); (b) Targeted net operating cash flow (as to 33.33%); (c) Board defined operations goals (as to 33.33%) for a performance period. And, vesting shall only occur if the closing share price of the company’s common stock on each of the 20 trading days before and including the end of a performance period is not less than $0.20 per share (as adjusted for stock splits, combinations, recapitalization and the like). Todd Bankofier one 125,000 2,000,000 (a) satisfaction of a share price condition described below; and (b) 100% achievement of the performance goals by the company and Mr. Bankofier, as applicable. Subject to the share price condition, 50% of the target award will be earned by Mr. Bankofier at the 85% achievement level, and he can earn up to 150% of the target award at the 125% achievement level. Vesting shall be determined based upon performance measures at the end of each calendar year of 2016 and 2017, with 50% of each target award and performance increase subject to vesting during each performance period. 100 (a) Targeted cash contract bookings (as to 33.33%); (b) Targeted net operating cash flow (as to 33.33%); (c) Board defined operations goals (as to 33.33%) for a performance period. And, vesting shall only occur if the closing share price of the company’s common stock on each of the 20 trading days before and including the end of a performance period is not less than $0.20 per share (as adjusted for stock splits, combinations, recapitalization and the like). |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Sale Leaseback Transaction Disclosure [Text Block] | NOTE 9: STOCKHOLDERS’ EQUITY As of December 31, 2015 and December 31, 2014, the Company had 81,717,154 77,817,861 175,000 10 5 0.1754 On January 30, 2014, the Company sold an aggregate of 666,667 200,000 18,463 181,537 666,667 666,667 0.40 On February 3, 2014, the Company issued 44,307 13,292 44,307 0.40 100 1.44 8,186 On March 27, 2014, the Company filed a Certificate of Amendment to the Certificate of Incorporation increasing the authorized number of shares of Company common stock to 250,000,000 100,000,000 On March 28, 2014, the Company issued 49,496 100,000 From January 1, 2014 through March 31, 2014, the Company also issued 100,000 28,500 1,300,000 13,000 On June 30, 2014, the Company sold an aggregate of 2,766,667 830,000 55,848 774,152 2,766,667 2,766,667 0.40 From April 1, 2014 through June 30, 2014, the Company also issued 1,071,916 354,835 17,870 50,000 In July 2014, the Company offered holders of a series of its warrants, including the warrants issued in the Second Private Placement and the Third Private Placement, the opportunity to exercise their warrants for a 10 10,027,002 3,632,801 3,501,521 131,280 On July 17, 2014, the Company issued 34,459 75,000 From July 1, 2014 through September 30, 2014, the Company also issued 515,000 382,300 In September 2014, the Company issued 20,000 20,000 0.50 10,000 On September 30, 2014, the Company sold an aggregate of 700,000 350,000 700,000 175,000 0.60 On October 10, 2014, November 12, 2014 and December 11, 2014 the Company issued an aggregate of 195,000 119,500 On November 25, 2014, 9,115 30,000 On November 18, 2014, 4,375 20,000 On December 15, 2014, 37,314 19,888 On December 15, 2014, 331,804 119,449 On December 31, 2014, the Company sold an aggregate of 6,687,500 2,675,000 123,000 2,552,000 1,175,000 6,687,500 37.5 2,507,813 0.60 On January 15, 2015, the Company sold an additional 812,500 325,000 304,688 0.60 On March 5, 2015, Paul Arena resigned as Chairman of the Board of Directors and Executive Chairman and was designated by AIM Group, Inc. as a consultant to the Company for the term of one year. The consulting agreement includes a fee of $ 425,000 158,000 267,000 48,000 6,250 12,500 20,000 1,500,000 500,000 500,000 500,000 500,000 3,000,000 250,000 (valued at $ 117,500 250,000 50 Commencing on May 1, 2015, the Company sold an aggregate of 175,000 10.00 1,750,000 0.1754 12.50 5 The Company evaluated the convertible preferred stock under FASB ASC 470-20-30 and determined it contained a beneficial conversion feature. The intrinsic value of the beneficial conversion feature was determined to be $ 594,641 58,733 On June 2, 2015, the Company granted 1,250,000 200,000 2,000,000 0.16 On June 2, 2015, the Company granted 800,000 128,000 1,000,000 0.16 On October 26, 2015, the Company agreed with its consultant to issue 41,667 41,667 Total of 208,332 warrants were issued as of December 31, 2015 of which 124,998 were issued for the return and cancellation of 124,998 previously issued common shares. In addition to the 2,300,000 801,936 236,626 109,855 43,941 On October 9, 2015 the Company entered into a Note and Warrant Purchase Agreement with accredited investors for the sale of convertible promissory notes in an aggregate principal amount of up to $ 3.75 37.50 2.5 25.0 50 10 The notes plus accrued interest will be automatically converted into equity securities if the Company sells equity securities in a single transaction or series of related transactions for cash of at least $ 2.0 60 0.10 During the years ended December 31, 2015 and 2014, $ 1,075,749 1,844,009 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 10: INCOME TAXES The Company accounts for income taxes under ASC 740, “Income Taxes”. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is recorded when the ultimate realization of a deferred tax as December 31, December 31, Deferred tax assets: 2015 2014 Net operating loss carry forwards $ 6,373,434 $ 4,983,000 Less valuation allowance (6,373,434) (4,983,000) Net deferred tax asset $ 0 $ 0 At this time, the Company is unable to determine if it will be able to benefit from its deferred tax asset. There are limitations on the utilization of net operating loss carry forwards, including a requirement that losses be offset against future taxable income, if any. In addition, there are limitations imposed by certain transactions, which are deemed to be ownership changes. Accordingly, a valuation allowance has been established for the entire deferred tax asset. The approximate net operating loss carry forward was $ 18,745,343 14,657,000 |
OPTIONS
OPTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 11: OPTIONS 14,759,914 11,434,350 Shares Exercise Price Outstanding at December 31, 2013 4,485,250 $ 0.38 Granted 7,549,100 0.52 Exercised 205,000 0.34 Forfeited 395,000 0.50 Outstanding at December 31, 2014 11,434,350 $ 0.47 Granted 8,278,880 0.16 Exercised - 0.00 Forfeited 4,953,316 0.44 Outstanding at December 31, 2015 14,759,914 $ 0.30 As of December 31, 2015 and 2014, the outstanding options had a weighted average remaining term and intrinsic value of 3.61 4.30 0 283,408 Outstanding and Exercisable Options - 2015 Average Number of Remaining Exercise Weighted Intrinsic $ 0.42 8,374,294 0.91 $ 2,854,392 $ 0.34 $ 235,330 Outstanding and Exercisable Options - 2014 Average Number of Remaining Exercise Weighted Intrinsic $ 0.40 5,635,250 3.79 $ 2,246,313 $ 0.47 $ 460,941 The options were valued using the Black-Scholes pricing model. Significant assumptions used in the valuation include expected term of 1.42 3.26 100 250 0.39 1.83 0 823,478 and 1,445,992 The outstanding unamortized stock compensation expense related to options was $ 406,157 1,220,410 respectively |
WARRANTS
WARRANTS | 12 Months Ended |
Dec. 31, 2015 | |
Warrants [Abstract] | |
Warrants [Text Block] | NOTE 12: WARRANTS Below is a table summarizing the Company’s outstanding warrants as of December 31, 2014 and December 31, 2015: Number of Wtd Avg. Wtd Avg. Intrinsic Shares Exercise Price Remaining Value Outstanding at December 31, 2013 18,770,591 0.35 4.62 $ 416,000 Granted 9,506,205 0.51 - - Exercised 11,748,807 0.36 - - Outstanding at December 31, 2014 16,527,989 0.46 3.69 $ 309,821 Granted 28,913,020 0.11 - - Exercised 109,855 0.40 - - Forfeited 3,054,545 0.43 - - Outstanding at December 31, 2015 42,276,609 0.22 4.15 $ 1,167 The warrants were valued using the Black-Scholes pricing model. Significant assumptions used in the valuation include expected term of 1.5 5.0 100 102 0.29 1.71 0 For the years ended December 31, 2015 and 2014, the Company has incurred warrants based expense of $ 510,436 131,517 106,852 207,190 |
PERFORMANCE SHARE UNITS
PERFORMANCE SHARE UNITS | 12 Months Ended |
Dec. 31, 2015 | |
Performance Share Units Disclosure [Abstract] | |
Performance Share Units Disclosure [Text Block] | NOTE 13: PERFORMANCE SHARE UNITS On April 1, 2013, the Company entered into a Performance Share Unit Agreement under the AudioEye, Inc. 2013 Incentive Compensation Plan with Nathaniel Bradley, the Company’s CEO; Mr. Sean Bradley, the Company’s Chief Technology Officer; and Mr. James Crawford, the Company’s Chief Operating Officer. Mr. Nathaniel Bradley was granted an award of up to an aggregate of 400,000 300,000 300,000 On January 27, 2014, the Company entered into a Performance Share Unit Agreement under the AudioEye, Inc. 2013 Incentive Compensation Plan with Paul Arena, the Company’s Executive Chairman. Mr. Arena was granted an award of up to an aggregate of 3,000,000 500,000 3,000,000 In September, 2014 three members of the management team were awarded a total of 500,000 Number of Wtd Avg. Remaining PSUs Grant Price Term Outstanding at December 31, 2014 4,500,000 $ 0.40 2.00 Forfeited 4,500,000 0.33 - Outstanding at September 30, 2015 0 $ 0 0 For the years ended December 31, 2015 and 2014, the Company has incurred performance share unit-based (recovery) expense of $ (258,165) 266,500 513,003 |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 14: CONCENTRATIONS The Company had two major customers including their affiliates which generated approximately 58 56.3 1.7 87 77 10 Both customer terminated the contracts with the Company as of December 31, 2015. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 15: SUBSEQUENT EVENTS On February 12, 2016, the Company awarded 500,000 On March 18, 2016, the company successfully filed a patent application with the U.S. Patent and Trademark Office (PTO): No. I.D. Status Title 10 US25245897 Pending Modular Systems For Selectively Enabling Cloud-Based Assistive Technologies |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the Company’s financial statements. These accounting policies conform to accounting principles, generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation and Non-Controlling Interest The consolidated financial statements include the accounts of the Company and its subsidiary, Empire Technologies, LLC (“Empire”). All significant inter-company accounts and transactions have been eliminated. In October 2010, the Company formed Empire as part of a joint venture with LVS Health Innovations, Inc. (“LVS”) whereby the Company owned 50 50 10 100 During the years ended December 31, 2015 and 2014, Empire had no activity. Empire had no assets or liabilities as of December 31, 2015 and December 31, 2014. The Company acquired 19.5 |
Research, Development, and Computer Software, Policy [Policy Text Block] | Capitalization of Software Development Costs The Company expenses development costs for research and development until such time as the software became technologically feasible. The Company’s software became technologically feasible at the end of 2013. The software development was substantially completed by the end of August, 2014. The Company further determined that the life of the capitalized software development costs is three years. Further enhancements and Patentable improvements were developed in 2015 and are ongoing. New patents have been filed and are pending as discussed more fully in the Business Description. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Research and Development Expense, Policy [Policy Text Block] | Research and Technology Expenses Research and technology expenses are expensed in the period costs are incurred. For the year ended December 31, 2015 and 2014 research and technology expenses totaled $ 375,817 610,329 |
Revenue Recognition, Policy [Policy Text Block] | Revenue is recognized when all applicable recognition criteria have been met, which generally include (a) persuasive evidence of an existing arrangement; (b) fixed or determinable price; (c) delivery has occurred or service has been rendered; and (d) collectability of the sales price is reasonably assured. For software and technology development contracts the Company recognizes revenues on a percentage of completion method based upon several factors including but not limited to (a) estimate of total hours and milestones to complete; (b) total hours completed; (c) delivery of services rendered; (d) change in estimates; and (e) collectability of the contract. The Company had two major customers including their affiliates which generated approximately 67.5 56.3 11.2 87 77 10 Certain Software as a Service (SaaS) and website hosting contracts are prepared and invoiced on an annual basis. Any funds received for hosting services not provided yet are held in deferred revenue, and are recorded as revenue is earned. |
Revenue Recognition, Long-term Contracts [Policy Text Block] | The Company applies percentage of completion accounting to long term contracts. Revenue is recognized as a portion of the contract term as services are delivered, and differed revenue is recorded, only upon the receipt of cash. Timing and accounts affected by the respective journal entry are triggered when payment is received and applied to invoices in accounts receivable. There were no long-term contracts in process as of December 31, 2015. |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year End The Company has a fiscal year ending on December 31. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers cash in savings accounts to be cash equivalents. The Company considers any short-term, highly liquid investments with maturities of three months or less as cash and cash equivalents. |
Marketable Securities, Policy [Policy Text Block] | Marketable Securities The Company has elected the fair value option under ASC 825 for its marketable securities. Marketable securities are classified as available for sale and consist of common stock holdings of publicly traded companies. These securities are marked to market at the end of each reporting period based on the closing price of the security at each balance sheet date. Changes in fair value are recorded as unrealized gains or losses in the consolidated statement of operations in accordance with ASC 320. |
Cost Method Investments, Policy [Policy Text Block] | Non-marketable Securities From time to time, the Company invests in the securities of other entities where there exists no active market for the securities held. Non-marketable securities are recorded at the cost of the investment. |
Receivables, Policy [Policy Text Block] | Allowance for Doubtful Accounts The Company establishes an allowance for bad debts through a review of several factors including historical collection experience, current aging status of the customer accounts, and financial condition of the Company’s customers. The Company does not generally require collateral for its accounts receivable. There was an allowance for doubtful accounts of $ -0- 19,675 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property and equipment are carried at the cost of acquisition or construction and depreciated over the estimated useful lives of the assets. Costs associated with repairs and maintenance are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency of the Company’s property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are 5 7 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill, Intangible Assets, and Long-Lived Assets Goodwill is carried at cost and is not amortized. The Company tests goodwill for impairment on an annual basis at the end of each fiscal year, relying on a number of factors including operating results, business plans, economic projections, anticipated future cash flows and marketplace data. Company management uses its judgment in assessing whether goodwill has become impaired between annual impairment tests according to specifications set forth in ASC 350. The Company completed an evaluation of goodwill at December 31, 2015 and 2014 and determined that there was no impairment. The fair value of the Company’s reporting unit is dependent upon the Company’s estimate of future cash flows and other factors. The Company’s estimates of future cash flows include assumptions concerning future operating performance and economic conditions and may differ from actual future cash flows. Estimated future cash flows are adjusted by an appropriate discount rate derived from the Company’s market capitalization plus a suitable control premium at date of the evaluation. The financial and credit market volatility directly impacts the Company’s fair value measurement through the Company’s weighted average cost of capital that the Company uses to determine its discount rate and through the Company’s stock price that the Company uses to determine its market capitalization. Therefore, changes in the stock price may also affect the amount of impairment recorded. The Company recognizes an acquired intangible asset apart from goodwill whenever the intangible asset arises from contractual or other legal rights, or when it can be separated or divided from the acquired entity and sold, transferred, licensed, rented or exchanged, either individually or in combination with a related contract, asset or liability. Such intangibles are amortized over their useful lives. Impairment losses are recognized if the carrying amount of an intangible asset subject to amortization is not recoverable from expected future cash flows and its carrying amount exceeds its fair value. The Company reviews its long-lived assets, including property and equipment, identifiable intangibles, and goodwill annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows will be less than the carrying amount of the assets. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company’s long-lived assets, including intangibles, are reviewed for impairment whenever events or changes in circumstances indicate that the historical-cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the asset by comparing the undiscounted future net cash flows expected to result from the asset to its carrying value. If the carrying value exceeds the undiscounted future net cash flows of the asset, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Patents were evaluated for impairment and no impairment losses were incurred during the years ended December 31, 2015 and 2014, respectively. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Equity-Based Payments The Company accounts for equity instruments issued to non-employees in accordance with the provisions of ASC 505-50, “Equity-Based Payments to Non-Employees”, which requires that such equity instruments are recorded at their fair value on the measurement date, with the measurement of such compensation being subject to periodic adjustment as the underlying equity instruments vest. The Company account for equity instruments issued to employees in accordance with ASC 718 “Stock Compensation”. Under this guidance, stock compensation expense is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the estimated service period (generally the vesting period) on the straight-line attribute method. |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. These assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. The Company has net operating loss carryforwards available to reduce future taxable income. Future tax benefits for these net operating loss carryforwards are recognized to the extent that realization of these benefits is considered more likely than not. To the extent that the Company will not realize a future tax benefit, a valuation allowance is established. |
Earnings Per Share, Policy [Policy Text Block] | Earnings (Loss) Per Share Basic earnings (loss) per share are computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share and basic earnings (loss) per share are not included in the net loss per share computation until the Company has Net Income. Diluted loss per share including the dilutive effects of common stock equivalents on an “as if converted” basis would reduce the loss per share and thereby be antidilutive. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments The carrying amount of the Company’s financial instruments, consisting of cash equivalents, short-term investments, account and notes receivable, accounts and notes payable, short-term borrowings and certain other liabilities, approximate their fair value due to their relatively short maturities. The carrying amount of the Company’s long-term debt approximates fair value since the stated rate of interest approximates a market rate of interest. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements Fair value is an estimate of the exit price, representing the amount that would be received to, sell an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price at the measurement date). Fair value measurements are not adjusted for transaction cost. Fair value measurement under generally accepted accounting principles provides for use of a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three levels: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the Company. Level 3: Unobservable inputs reflect the assumptions that the Company develops based on available information about what market participants would use in valuing the asset or liability. An asset or liability’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Availability of observable inputs can vary and is affected by a variety of factors. The Company uses judgment in determining fair value of assets and liabilities and Level 3 assets and liabilities involve greater judgment than Level 1 and Level 2 assets or liabilities. In October and November 2015, the Company issued warrants with an exercise price of $ 0.10 0.10 2.0 The Company estimated the fair value of these derivative warrants at initial issuance and again at each balance sheet date. The changes in fair value are recognized in earnings in the statement of operations under the caption “unrealized gain/(loss) – derivative liability” until such time as the derivative warrants are exercised or expire. The Company used the Black-Scholes Option Pricing model to estimate the fair value of the dates of issuance, the price of the Company stock ranged $ 0.031 0.058 102 1.14 1.75 5 0.0306 4.77 4.85 439,361 187,932 Fair Value Fair Value Hierarchy Assets Marketable securities, December 31, 2015 $ 3,600 Level 1 Marketable securities, December 31, 2014 $ 13,800 Level 1 Liabiilities Derivative Liability , At Issuance $ 627,293 Level 3 Derivative Liability , December 31, 2015 $ 439,361 Level 3 |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Standards Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying financial statements other than noted. The FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. The update is effective for fiscal years beginning after December 15, 2015. The standard has been applied to our debt issuance from October and November 2015 and is reflected in our financial statements beginning with the period ending December 31, 2015 Effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, the FASB issued ASU 2016-01 amendments, which among other things: • Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. • Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). • Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The Company does not expect the adoption of this update will have a material impact on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following are the Company’s assets and liabilities, measured at fair value on a recurring basis, as of December 31, 2015 and 2014: Fair Value Fair Value Hierarchy Assets Marketable securities, December 31, 2015 $ 3,600 Level 1 Marketable securities, December 31, 2014 $ 13,800 Level 1 Liabiilities Derivative Liability , At Issuance $ 627,293 Level 3 Derivative Liability , December 31, 2015 $ 439,361 Level 3 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment consist of the following: December 31, December 31, 2015 2014 Computers and peripherals $ 25,478 $ 25,478 Accumulated deprecation (25,478) (24,827) Property, plant and equipment, net $ - $ 651 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Prior to any impairment adjustment, intangible assets consisted of the following: December 31, December 31, 2015 2014 Patents $ 3,655,070 $ 3,611,380 Capitalized software development 621,567 388,125 Accumulated amortization (1,435,781) (902,212) Intangible assets, net $ 2,840,856 $ 3,097,293 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Payable [Abstract] | |
Schedule of Debt [Table Text Block] | As at December 31, 2015 and 2014, the Company has current and long term notes payable of $ 24,000 1,923,499 24,000 51,800 Notes and loans payable December 31, December 31, Short Term Maryland TEDCO $ 24,000 $ 24,000 Total $ 24,000 $ 24,000 Long Term Convertible Secured Note (net of unamortized discounts of $600,301 and $0) 1,899,699 - Maryland TEDCO $ 23,800 $ 51,800 Total $ 1,923,499 $ 51,800 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: December 31, December 31, Deferred tax assets: 2015 2014 Net operating loss carry forwards $ 6,373,434 $ 4,983,000 Less valuation allowance (6,373,434) (4,983,000) Net deferred tax asset $ 0 $ 0 |
OPTIONS (Tables)
OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Options Roll Forward [Table Text Block] | As at December 31, 2015 and 2014, the Company has 14,759,914 11,434,350 Shares Exercise Price Outstanding at December 31, 2013 4,485,250 $ 0.38 Granted 7,549,100 0.52 Exercised 205,000 0.34 Forfeited 395,000 0.50 Outstanding at December 31, 2014 11,434,350 $ 0.47 Granted 8,278,880 0.16 Exercised - 0.00 Forfeited 4,953,316 0.44 Outstanding at December 31, 2015 14,759,914 $ 0.30 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Outstanding and Exercisable Options - 2015 Average Number of Remaining Exercise Weighted Intrinsic $ 0.42 8,374,294 0.91 $ 2,854,392 $ 0.34 $ 235,330 Outstanding and Exercisable Options - 2014 Average Number of Remaining Exercise Weighted Intrinsic $ 0.40 5,635,250 3.79 $ 2,246,313 $ 0.47 $ 460,941 |
WARRANTS (Tables)
WARRANTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Warrants [Abstract] | |
Schedule of Other Share-based Compensation, Activity [Table Text Block] | Below is a table summarizing the Company’s outstanding warrants as of December 31, 2014 and December 31, 2015: Number of Wtd Avg. Wtd Avg. Intrinsic Shares Exercise Price Remaining Value Outstanding at December 31, 2013 18,770,591 0.35 4.62 $ 416,000 Granted 9,506,205 0.51 - - Exercised 11,748,807 0.36 - - Outstanding at December 31, 2014 16,527,989 0.46 3.69 $ 309,821 Granted 28,913,020 0.11 - - Exercised 109,855 0.40 - - Forfeited 3,054,545 0.43 - - Outstanding at December 31, 2015 42,276,609 0.22 4.15 $ 1,167 |
PERFORMANCE SHARE UNITS (Tables
PERFORMANCE SHARE UNITS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Performance Share Units Disclosure [Abstract] | |
Share-based Compensation, Performance Shares Award Outstanding Activity [Table Text Block] | Below is a table summarizing the Company’s outstanding performance share units as of December 31, 2015 and December 31, 2014: Number of Wtd Avg. Remaining PSUs Grant Price Term Outstanding at December 31, 2014 4,500,000 $ 0.40 2.00 Forfeited 4,500,000 0.33 - Outstanding at September 30, 2015 0 $ 0 0 |
OVERVIEW AND GOING CONCERN (Det
OVERVIEW AND GOING CONCERN (Details Textual) | 1 Months Ended | 12 Months Ended | |||
Dec. 30, 2013USD ($)shares | Mar. 22, 2013USD ($)shares | Aug. 17, 2012 | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||||
Number Of Patents Issued | item | 6 | ||||
Number Of Pending Patents | item | 2 | ||||
Working Capital | $ 913,741 | ||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations, Total | $ (5,474,454) | $ (5,801,600) | |||
Affiliate Of C M G Holdings Groups Inc [Member] | |||||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||||
Debt Instrument, Decrease, Forgiveness | $ 50,000 | ||||
Audio Eye Acquisition Corporation [Member] | |||||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||||
Sale of Stock, Percentage of Ownership after Transaction | 80.00% | ||||
Debt Conversion Accrued Interest On Debt Amount1 | $ 67,732 | ||||
Business Acquisition Equity Interests Issued Or Issuable Number Of Shares Issued To Debenture Holders | shares | 5,871,752 | ||||
Debt Conversion, Original Debt, Amount | $ 1,400,200 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 24,004,143 | ||||
Merger With Aeac Conversion Rate Of Stock | 0.94134 | ||||
C M G Holdings Group Inc [Member] | |||||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||||
Spin Off Stock holders Dividend | 5.00% | ||||
Royalty Percentage Separation And Spin Off | 10.00% | ||||
Commission Percentage Separation And Spin Off | 7.50% | ||||
Commission Percentage Separation And Spin Off Specified | 10.00% | ||||
Sale of Stock, Percentage of Ownership after Transaction | 80.00% | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 15.00% | ||||
Stock Repurchased and Retired During Period, Shares | shares | 2,184,583 | ||||
Stock Repurchased During Period, Value | $ 573,022 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities held in related party | $ 3,600 | $ 13,800 |
Derivative Liability, Fair Value, Gross Liability | 627,293 | |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities held in related party | 3,600 | $ 13,800 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Notional Amount | 627,293 | |
Derivative Liability, Fair Value, Gross Liability | $ 439,361 |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2012 | Oct. 31, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | May. 01, 2015 | Sep. 30, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Assets, Total | $ 5,346,370 | $ 7,072,537 | |||||
Liabilities, Total | 2,814,744 | 1,208,582 | |||||
Net Income (Loss) Attributable to Parent, Total | (7,209,145) | (9,750,813) | |||||
Research and Development Expense, Total | 375,817 | 610,329 | |||||
Allowance for Doubtful Accounts Receivable | $ 0 | 19,675 | |||||
Common Stock Issuance Price Per Share | $ 0.10 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.10 | $ 0.50 | |||||
Convertible Notes Payable | $ 1,899,699 | $ 0 | |||||
Share Price | $ 0.0306 | $ 10 | |||||
Fair Value Assumptions, Weighted Average Volatility Rate | 102.00% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||||
Fair Value Adjustment of Warrants | $ 439,361 | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ 187,932 | ||||||
Warrant [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||||
Minimum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||
Share Price | $ 0.031 | ||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.14% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 4 years 9 months 7 days | ||||||
Maximum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 7 years | ||||||
Share Price | $ 0.058 | ||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.75% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 4 years 10 months 6 days | ||||||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration Risk, Percentage | 67.50% | 87.00% | |||||
Number Of Major Customers | 2 | 2 | |||||
Major Customer Number One [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration Risk, Percentage | 56.30% | 77.00% | |||||
Major Customer Number Two [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration Risk, Percentage | 11.20% | 10.00% | |||||
Empire Technologies LLC [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Variable Interest Entity Ownership Percentage Sold | 50.00% | ||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 50.00% | ||||||
Payments to Acquire Businesses and Interest in Affiliates, Total | $ 10 | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||||||
Assets, Total | $ 0 | $ 0 | |||||
Liabilities, Total | 0 | $ 0 | |||||
Couponicate [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Assets, Total | 0 | ||||||
Liabilities, Total | 0 | ||||||
Sale of Stock, Percentage of Ownership after Transaction | 19.50% | ||||||
Net Income (Loss) Attributable to Parent, Total | $ 0 |
MARKETABLE AND NON-MARKETABLE34
MARKETABLE AND NON-MARKETABLE SECURITIES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Marketable Securities, Current, Total | $ 3,600 | $ 13,800 |
Loss On Conversion Of Accounts Receivable To Marketable Securities | 0 | 36,000 |
Marketable Securities, Unrealized Gain (Loss), Total | (10,200) | (10,200) |
Investment Owned, at Cost | 50,000 | $ 50,000 |
Ecologic Transportation [Member] | ||
Number Of Shares Note Is Convertible Of Company | 600,000 | |
Investment Amount From Conversion Of Accounts Receivable | $ 60,000 | |
Peartrack Security Systems Inc [Member] | ||
Investment Owned, Balance, Shares | 60,000 | |
Investment Owned, at Fair Value | $ 24,000 | |
Marketable Securities, Current, Total | 13,800 | |
Loss On Conversion Of Accounts Receivable To Marketable Securities | 3,600 | 36,000 |
Marketable Securities, Unrealized Gain (Loss), Total | 10,200 | $ 10,200 |
Cannonball Red [Member] | ||
Investment Owned, Balance, Shares | 97,500 | |
Investment Owned, at Cost | $ 97,500 | $ 50,000 |
Repurchase Amount Of Cost Method Investment | $ 60,000 | |
Beta Music Group [Member] | ||
Investment Owned, Balance, Shares | 1,200,000 | |
Investment Owned, at Cost | $ 0 |
PROPERTY, PLANT AND EQUIPMENT35
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Accumulated deprecation | $ (25,478) | $ (24,827) |
Property, plant and equipment, net | 0 | 651 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Computers and peripherals | $ 25,478 | $ 25,478 |
PROPERTY, PLANT AND EQUIPMENT36
PROPERTY, PLANT AND EQUIPMENT (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 651 | $ 3,196 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible Assets | ||
Accumulated amortization | $ (1,435,781) | $ (902,212) |
Intangible Assets, Net | 2,840,856 | 3,097,293 |
Patents | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 3,655,070 | 3,611,380 |
Capitalized software development | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | $ 621,567 | $ 388,125 |
INTANGIBLE ASSETS (Details Text
INTANGIBLE ASSETS (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Software Development Costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 533,569 | $ 412,813 |
Amortization of Intangible Assets | 172,436 | 66,123 |
Finite-lived Intangible Assets Acquired | 233,442 | 388,125 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 3,655,070 | 3,611,380 |
Amortization of Intangible Assets | 361,133 | 346,690 |
Finite-lived Intangible Assets Acquired | $ 43,689 | $ 48,037 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Dec. 15, 2014 | Nov. 25, 2014 | Nov. 18, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 01, 2015 | |
Revenue from Related Parties | $ 0 | $ 6,500 | |||||||||
Cost method investment | $ 50,000 | 50,000 | 50,000 | ||||||||
Related party payables | 153,474 | 153,474 | 228,983 | ||||||||
Related party receivables | 0 | 0 | 10,000 | ||||||||
Due to Related Parties | 0 | 0 | 0 | ||||||||
Due to Related Parties, Noncurrent | $ 0 | $ 0 | $ 0 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.10 | $ 0.50 | $ 0.50 | $ 0.10 | |||||||
Share Price | $ 0.0306 | $ 0.0306 | $ 10 | ||||||||
Stock Issued During Period, Shares, New Issues | 331,804 | 9,115 | 4,375 | 20,000 | 515,000 | 1,071,916 | |||||
Accounts Payable and Accrued Liabilities [Member] | |||||||||||
Accrued Rent, Current | $ 1,000 | $ 1,000 | |||||||||
Warrant [Member] | |||||||||||
Stock Issued During Period, Shares, New Issues | 53,036 | ||||||||||
Stock Issued During Period, Value, New Issues | $ 21,514 | ||||||||||
Minimum [Member] | |||||||||||
Share Price | $ 0.031 | $ 0.031 | |||||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.14% | ||||||||||
Maximum [Member] | |||||||||||
Share Price | $ 0.058 | $ 0.058 | |||||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.75% | ||||||||||
Executive Officer [Member] | |||||||||||
Due to Related Parties | $ 72,944 | $ 72,944 | |||||||||
Nathaniel Bradley | |||||||||||
Due to Related Parties, Noncurrent | $ 10,000 | ||||||||||
Operating Leases, Rent Expense, Net, Total | 500 | 1,000 | |||||||||
Nathaniel Bradley | Demand Notes [Member] | |||||||||||
Debt Instrument, Face Amount | 224,000 | ||||||||||
Debt Conversion, Original Debt, Amount | $ 199,000 | ||||||||||
Due to Related Parties | 35,000 | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 28,400 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.40 | ||||||||||
Debt Instrument, Unamortized Discount | $ 6,901 | ||||||||||
Fair Value Assumptions, Expected Term | 5 years | ||||||||||
Accrued Salary Conversion Amount | $ 25,000 | ||||||||||
Accrued Salary Converted To Common Stock | 746,667 | ||||||||||
Fair Value Assumptions, Expected Volatility Rate | 100.00% | ||||||||||
Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||||||||
Nathaniel Bradley | Demand Notes [Member] | Minimum [Member] | |||||||||||
Share Price | $ 0.35 | ||||||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.37% | ||||||||||
Nathaniel Bradley | Demand Notes [Member] | Maximum [Member] | |||||||||||
Share Price | $ 0.43 | ||||||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.43% | ||||||||||
Peartrack Security Systems | |||||||||||
Related party payables | 153,474 | 153,474 | $ 228,983 | ||||||||
Shares owned | 60,000 | ||||||||||
Ecologic Transportation | |||||||||||
Conversion of accounts receivable | $ 60,000 | ||||||||||
Cannonball Red | |||||||||||
Cost method investment | $ 50,000 | ||||||||||
Shares owned | 97,500 | ||||||||||
Sean Bradley | |||||||||||
Due to Related Parties | 6,250 | 6,250 | $ 0 | ||||||||
David Moradi | |||||||||||
Due to Related Parties | 70,000 | 70,000 | |||||||||
Interest Receivable | $ 4,280 | $ 4,280 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Notes Payable | ||
Short Term | $ 24,000 | $ 24,000 |
Long Term | 1,923,499 | 51,800 |
Convertible Secured Note (net of discount) | 1,899,699 | 0 |
Maryland TEDCO Note | ||
Notes Payable | ||
Short Term | 24,000 | 24,000 |
Long Term | $ 23,800 | $ 51,800 |
NOTES PAYABLE (Details Textual)
NOTES PAYABLE (Details Textual) - USD ($) | Oct. 09, 2015 | Aug. 03, 2013 | Oct. 24, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 09, 2015 | May. 01, 2015 | Sep. 30, 2014 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ||||||||||
Notes and Loans Payable, Current, Total | $ 24,000 | $ 24,000 | ||||||||
Long-term Debt, Total | 1,923,499 | 51,800 | ||||||||
Repayments of Long-term Debt, Total | $ 28,000 | 178,000 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.10 | $ 0.50 | ||||||||
Share Price | $ 0.0306 | $ 10 | ||||||||
Proceeds from Notes Payable | $ 2,500,000 | |||||||||
Derivative Liability, Fair Value, Gross Liability | 627,293 | |||||||||
Amortization of Debt Discount (Premium) | 26,992 | 1,155 | ||||||||
Note and Warrant Purchase Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 2,500,000 | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 37,500,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 10.00% | |||||||||
Notes and Warrants Exercisable Description | Notes representing up to $2,500,000 in aggregate principal, and Warrants exercisable for up to 25,000,000 shares of Common Stock in the aggregate, may be issued and sold at one or more closings during the 30-day period immediately following the Initial Closing Date. | |||||||||
Loans Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Gross | $ 74,900 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 25.00% | |||||||||
Interest Payable, Current | $ 74,900 | |||||||||
Maryland TEDCO Note | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Periodic Payment, Total | $ 2,000 | |||||||||
Long-term Debt, Gross | 47,800 | 75,800 | ||||||||
Debt Instrument, Face Amount | $ 149,800 | |||||||||
Notes and Loans Payable, Current, Total | 24,000 | 24,000 | ||||||||
Long-term Debt, Total | 23,800 | 51,800 | ||||||||
Repayments of Long-term Debt, Total | $ 28,000 | 28,000 | ||||||||
Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Gross | $ 143,070 | $ 0 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||||||
Interest Payable, Current | $ 2,384 | |||||||||
Debt Instrument, Face Amount | $ 3,750,000 | $ 150,000 | ||||||||
Notes and Loans Payable, Current, Total | 148,845 | |||||||||
Debt Conversion Total Issued And Outstanding Common Shares Percent | 60.00% | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 20,000 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.10 | $ 0.50 | ||||||||
Debt Instrument, Unamortized Discount | $ 6,930 | 1,155 | ||||||||
Share Price | $ 0.47 | |||||||||
Fair Value Assumptions, Expected Term | 5 years | |||||||||
Fair Value Assumptions, Expected Volatility Rate | 100.00% | |||||||||
Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.36% | |||||||||
Amortization of Intangible Assets | $ 5,755 | |||||||||
Proceeds from Sale of Available-for-sale Securities, Equity | $ 2,000,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Textual) | Nov. 10, 2015USD ($)shares | Oct. 01, 2015USD ($) | Jul. 01, 2015USD ($) | May. 01, 2015USD ($) | Mar. 05, 2015USD ($)shares | Dec. 22, 2015shares | Oct. 26, 2015shares | Apr. 24, 2015USD ($) | Jan. 27, 2014USD ($)$ / sharesshares | Aug. 07, 2013USD ($) | Dec. 31, 2015USD ($)ft²$ / sharesshares | Dec. 31, 2014USD ($) | Sep. 30, 2014$ / shares |
Commitments And Contingencies [Line Items] | |||||||||||||
Area Of Principal Executive Offices | ft² | 2,362 | ||||||||||||
Operating Leases, Rent Expense | $ 314,485 | $ 302,230 | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.10 | $ 0.50 | |||||||||||
Escrow Shares | shares | 250,000 | ||||||||||||
Due to Related Parties, Current | $ 153,474 | 228,983 | |||||||||||
Lease Rent Per Month | 4,724 | ||||||||||||
Loss Contingency, Undiscounted Amount of Insurance-related Assessment Liability | 100,000 | ||||||||||||
Share-based Compensation Award, Tranche One [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 500,000 | ||||||||||||
Share-based Compensation Award, Tranche Two [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 50,000 | ||||||||||||
Performance Target | PSUs | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | shares | 1,500,000 | ||||||||||||
Employee Stock Option [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 1,500,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 0.40 | ||||||||||||
Sublease in Atlanta [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Operating Leases, Rent Expense | 2,763 | ||||||||||||
Sublease in Washington D C [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Reduction in Monthly Rent | 7,146 | ||||||||||||
Gain (Loss) on Disposition of Business | 1,280 | ||||||||||||
Sublease in New York [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Operating Leases, Rent Expense, Sublease Rentals | 21,135 | ||||||||||||
Sublease in Scottsdale, AZ [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Operating Leases, Rent Expense, Sublease Rentals | $ 500 | ||||||||||||
Warrant [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 41,667 | ||||||||||||
Nathaniel Bradley | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Base Salary | $ 125,000 | $ 200,000 | |||||||||||
Executive Employment Agreement Period | 3 years | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period | shares | 2,000,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% | ||||||||||||
Sean Bradley | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Base Salary | $ 195,000 | ||||||||||||
Officers' Compensation | $ 150,000 | ||||||||||||
Executive Employment Agreement Period | 3 years | ||||||||||||
Share Price Condition | (a) satisfaction of a share price condition described below; and (b) 100% achievement of the performance goals by the company and Mr. Bradley, as applicable. Subject to the share price condition, 50% of the target award will be earned by Mr. Bradley at the 85% achievement level, and he can earn up to 150% of the target award at the 125% achievement level. Vesting shall be determined based upon performance measures at the end of each calendar year of 2016 and 2017, with 50% of each target award and performance increase subject to vesting during each performance period. | ||||||||||||
Performace Objective Description | (a) Targeted cash contract bookings (as to 33.33%); (b) Targeted net operating cash flow (as to 33.33%); (c) Board defined operations goals (as to 33.33%) for a performance period. And, vesting shall only occur if the closing share price of the companys common stock on each of the 20 trading days before and including the end of a performance period is not less than $0.20 per share (as adjusted for stock splits, combinations, recapitalization and the like). | ||||||||||||
President [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Stock Granted, Value, Share-based Compensation, Gross | $ 6,250 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period | shares | 1,500,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% | ||||||||||||
James Crawford | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Base Salary | $ 185,000 | ||||||||||||
Executive Employment Agreement Period | 3 years | ||||||||||||
Consulting Agreement Monthly Fee Amount | $ 5,000 | ||||||||||||
Constantine Potamianos | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Base Salary | $ 150,000 | ||||||||||||
Executive Employment Agreement Period | 2 years | ||||||||||||
Edward O'Donnell | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Base Salary | $ 165,000 | ||||||||||||
Executive Employment Agreement Period | 2 years | ||||||||||||
Mr. Arena | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Base Salary | $ 275,000 | ||||||||||||
Signing Bonus | $ 35,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||||||||||
Other Consideration Value To Related Party | 54,892 | ||||||||||||
Related Party Total Consideration Amount | 479,892 | ||||||||||||
Related Party Consideration Already Advanced | 250,909 | ||||||||||||
Due to Related Parties, Current | $ 0 | $ 228,983 | |||||||||||
Mr. Arena | PSUs | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | shares | 3,000,000 | ||||||||||||
Mr. Arena | Performance Target | PSUs | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
PercentagePerformanceTargetsMet | 125.00% | ||||||||||||
Mr. Arena | Revenue goal | PSUs | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Percentage Psus Awards Granted | 35.00% | ||||||||||||
Mr. Arena | Cash flow goal | PSUs | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Percentage Psus Awards Granted | 35.00% | ||||||||||||
Mr. Arena | Discretionary Goal | PSUs | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Percentage Psus Awards Granted | 30.00% | ||||||||||||
Mr. Arena | AIM Group, Inc [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Consulting Agreement Fe eAmount Net | $ 267,000 | ||||||||||||
Consulting Agreement Fee Amount | 425,000 | ||||||||||||
Mr. Arena | Employee Stock Option [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Maximum Proceeds From Sale Of Stock Per Month | $ 500,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | shares | 500,000 | ||||||||||||
Mr. Arena | Warrant [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 250,000 | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.40 | ||||||||||||
Mr. Arena | Maximum [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Quarterly Bonus | $ 50,000 | ||||||||||||
Mr. Arena | Maximum [Member] | Performance Target | PSUs | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | shares | 3,000,000 | ||||||||||||
Mr. Arena | Minimum [Member] | Performance Target | PSUs | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | shares | 1,000,000 | ||||||||||||
PercentagePerformanceTargetsMet | 75.00% | ||||||||||||
Dr. Carr Bettis [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Officers' Compensation | $ 175,000 | ||||||||||||
Executive Employment Agreement Period | 1 year | ||||||||||||
Stock Granted, Value, Share-based Compensation, Gross | $ 750,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period | shares | 2,000,000 | ||||||||||||
Share Price Condition | (a) satisfaction of a share price condition described below; and (b) 100% achievement of the performance goals by the company and Dr. Bettis, as applicable. Subject to the share price condition, 50% of the target award will be earned by Dr. Bettis at the 85% achievement level, and he can earn up to 150% of the target award at the 125% achievement level. Vesting shall be determined based upon performance measures at the end of each calendar year of 2016 and 2017, with 50% of each target award and performance increase subject to vesting during each performance period. | ||||||||||||
Performace Objective Description | (a) Targeted cash contract bookings (as to 33.33%); (b) Targeted net operating cash flow (as to 33.33%); (c) Board defined operations goals (as to 33.33%) for a performance period. And, vesting shall only occur if the closing share price of the companys common stock on each of the 20 trading days before and including the end of a performance period is not less than $0.20 per share (as adjusted for stock splits, combinations, recapitalization and the like). | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% | ||||||||||||
Todd Bankofier [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Base Salary | $ 125,000 | ||||||||||||
Executive Employment Agreement Period | 1 year | ||||||||||||
Share Price Condition | (a) satisfaction of a share price condition described below; and (b) 100% achievement of the performance goals by the company and Mr. Bankofier, as applicable. Subject to the share price condition, 50% of the target award will be earned by Mr. Bankofier at the 85% achievement level, and he can earn up to 150% of the target award at the 125% achievement level. Vesting shall be determined based upon performance measures at the end of each calendar year of 2016 and 2017, with 50% of each target award and performance increase subject to vesting during each performance period. | ||||||||||||
Performace Objective Description | (a) Targeted cash contract bookings (as to 33.33%); (b) Targeted net operating cash flow (as to 33.33%); (c) Board defined operations goals (as to 33.33%) for a performance period. And, vesting shall only occur if the closing share price of the companys common stock on each of the 20 trading days before and including the end of a performance period is not less than $0.20 per share (as adjusted for stock splits, combinations, recapitalization and the like). |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - USD ($) | Oct. 09, 2015 | Jun. 02, 2015 | Jun. 02, 2015 | May. 01, 2015 | Mar. 12, 2015 | Mar. 05, 2015 | Feb. 02, 2015 | Jan. 15, 2015 | Oct. 26, 2015 | Jun. 15, 2015 | Mar. 16, 2015 | Feb. 23, 2015 | Jan. 29, 2015 | Dec. 31, 2014 | Dec. 15, 2014 | Nov. 25, 2014 | Nov. 18, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Jul. 17, 2014 | Jun. 30, 2014 | Mar. 28, 2014 | Feb. 03, 2014 | Jan. 30, 2014 | Jan. 27, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 27, 2014 |
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Subscription Receivable | $ 1,175,000 | $ 1,175,000 | $ 0 | $ 1,175,000 | ||||||||||||||||||||||||||||
Common Stock, Shares, Issued | 77,817,861 | 34,459 | 49,496 | 77,817,861 | 81,717,154 | 77,817,861 | ||||||||||||||||||||||||||
Common Stock, Shares, Outstanding | 77,817,861 | 77,817,861 | 81,717,154 | 77,817,861 | ||||||||||||||||||||||||||||
Proceeds from Issuance of Warrants | $ 119,449 | $ 10,000 | $ 13,000 | $ 43,941 | $ 3,643,970 | |||||||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 37,314 | 100,000 | 195,000 | 2,300,000 | ||||||||||||||||||||||||||||
Stock Issued During Period Value Warrants Exercised | 20,000 | 1,300,000 | 50,000 | |||||||||||||||||||||||||||||
Common Stock Issuance Costs | $ 28,500 | $ 682,126 | 918,315 | |||||||||||||||||||||||||||||
Shares, Issued | 175,000 | 175,000 | ||||||||||||||||||||||||||||||
Share price (in dollars per share) | $ 10 | $ 0.0306 | ||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ 0.1754 | $ 0.1754 | ||||||||||||||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 5.00% | |||||||||||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 19,888 | $ 119,500 | $ 382,300 | $ 354,835 | $ 682,126 | 918,315 | ||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 30,000 | 20,000 | 75,000 | 100,000 | ||||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 331,804 | 9,115 | 4,375 | 20,000 | 515,000 | 1,071,916 | ||||||||||||||||||||||||||
Adjustments to Additional Paid in Capital Warrant Options and PSU Issued for Services | $ 1,075,749 | $ 1,844,009 | ||||||||||||||||||||||||||||||
Proceeds From Units Sold To Accredited Investors | $ 325,000 | |||||||||||||||||||||||||||||||
Private Placement Cost For Units Sold To Accredited Investors | $ 1,750,000 | |||||||||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.50 | $ 0.50 | $ 0.10 | |||||||||||||||||||||||||||||
Common Stock Shares Authorized Before Amendment | 100,000,000 | |||||||||||||||||||||||||||||||
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 | 250,000,000 | 250,000,000 | 250,000,000 | |||||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercises In Period | 109,855 | 11,748,807 | ||||||||||||||||||||||||||||||
Common Stock, Value, Issued | $ 778 | $ 778 | $ 817 | $ 778 | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||||||||||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ 325,000 | 2,682,689 | ||||||||||||||||||||||||||||||
Cash | 1,672,901 | 1,672,901 | $ 1,687,257 | $ 1,672,901 | ||||||||||||||||||||||||||||
Dividend Declared [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Shares Issued, Price Per Share | $ 12.50 | |||||||||||||||||||||||||||||||
Private Placement [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 812,500 | |||||||||||||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.60 | |||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||||||||||||||||||||||||||||||
Proceeds from Issuance of Private Placement | $ 325,000 | |||||||||||||||||||||||||||||||
Class of Warrant or Right, Outstanding | 304,688 | |||||||||||||||||||||||||||||||
Consultant [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Proceeds from Issuance of Warrants | $ 43,941 | |||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 236,626 | |||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 801,936 | |||||||||||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ 109,855 | |||||||||||||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 3,101,936 | 1,963,537 | ||||||||||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 31 | $ 20 | ||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 17,870 | |||||||||||||||||||||||||||||||
Adjustments to Additional Paid in Capital Warrant Options and PSU Issued for Services | $ 0 | $ 0 | ||||||||||||||||||||||||||||||
Warrant [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Proceeds from Issuance of Warrants | $ 3,501,521 | |||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 53,036 | |||||||||||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $ 21,514 | |||||||||||||||||||||||||||||||
Private Placement Cost For Units Sold To Accredited Investors | 131,280 | |||||||||||||||||||||||||||||||
Proceeds From Issuance Of Warrants Gross | $ 3,632,801 | |||||||||||||||||||||||||||||||
Warrant Discount Percentage | 10.00% | |||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 41,667 | |||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||||||||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Vesting Monthly | 41,667 | |||||||||||||||||||||||||||||||
Warrant [Member] | Second Private Placement and Third Private Placement [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercises In Period | 10,027,002 | |||||||||||||||||||||||||||||||
Employee Stock Option Three [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 3 years | |||||||||||||||||||||||||||||||
Employee Stock Option Four [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Feb. 2, 2020 | |||||||||||||||||||||||||||||||
Employee Stock Option Five [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Feb. 23, 2020 | |||||||||||||||||||||||||||||||
Employee Stock Option Seven [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Mar. 12, 2020 | |||||||||||||||||||||||||||||||
Employee Stock Option Eight [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Mar. 16, 2020 | |||||||||||||||||||||||||||||||
Employee Stock Option Nine [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Jun. 2, 2018 | |||||||||||||||||||||||||||||||
Employee Stock Option Ten [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||||||||||||||||||||||||||||||
Employee Stock Option Eleven [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||||||||||||||||||||||||||||||
Employee Stock Option Twevel [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Jun. 15, 2020 | |||||||||||||||||||||||||||||||
Promissory Notes [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $ 2,500,000 | |||||||||||||||||||||||||||||||
Percentage Of Additional Principal Amount | 50.00% | |||||||||||||||||||||||||||||||
Paid In Kind Interest Percentage | 10.00% | |||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 3,750,000 | |||||||||||||||||||||||||||||||
Convertible Debt | $ 37,500,000 | |||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 25,000,000 | |||||||||||||||||||||||||||||||
Equity Securities Issued Percentage | 60.00% | |||||||||||||||||||||||||||||||
Cash | $ 2,000,000 | |||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 0.10 | |||||||||||||||||||||||||||||||
Warrants granted on February 3, 2014 [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 44,307 | |||||||||||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $ 13,292 | |||||||||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 44,307 | |||||||||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.40 | |||||||||||||||||||||||||||||||
Fair Value Assumptions, Expected Volatility Rate | 100.00% | |||||||||||||||||||||||||||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.44% | |||||||||||||||||||||||||||||||
Class Of Warrant Or Right Grant Date Fair Value | $ 8,186 | |||||||||||||||||||||||||||||||
June 2015 Issue One [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Exercise Price Of Units | $ 0.16 | |||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 1,250,000 | |||||||||||||||||||||||||||||||
Term of warrants issued to accredited investor | 5 years | |||||||||||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 200,000 | |||||||||||||||||||||||||||||||
Units Sold To Accredited Investors Number Of Common Shares That Can Be Purchased Against Each Warrant | 2,000,000 | |||||||||||||||||||||||||||||||
June 2015 Issue Two [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Exercise Price Of Units | $ 0.16 | |||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 800,000 | |||||||||||||||||||||||||||||||
Term of warrants issued to accredited investor | 5 years | |||||||||||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 128,000 | |||||||||||||||||||||||||||||||
Units Sold To Accredited Investors Number Of Common Shares That Can Be Purchased Against Each Warrant | 1,000,000 | |||||||||||||||||||||||||||||||
Accredited investors | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Subscription Receivable | $ 1,175,000 | $ 1,175,000 | $ 1,175,000 | |||||||||||||||||||||||||||||
Exercise Price Of Units | $ 0.60 | $ 0.40 | $ 0.40 | |||||||||||||||||||||||||||||
Stock Issued During Period Value Warrants Exercised | 2,507,813 | 175,000 | ||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 6,687,500 | |||||||||||||||||||||||||||||||
Units sold to accredited investors, number of common shares | 2,766,667 | 666,667 | ||||||||||||||||||||||||||||||
Units Sold To Accredited Investors Warrants | 666,667 | 2,766,667 | ||||||||||||||||||||||||||||||
Units sold to accredited investors (in shares) | 6,687,500 | 700,000 | 2,766,667 | 666,667 | ||||||||||||||||||||||||||||
Units Sold To Accredited Investors Warrants Common Stock For Services | 700,000 | |||||||||||||||||||||||||||||||
Proceeds From Units Sold To Accredited Investors Net Of Placement Fees | $ 2,552,000 | $ 181,537 | $ 774,152 | |||||||||||||||||||||||||||||
Proceeds From Units Sold To Accredited Investors | 2,675,000 | $ 350,000 | $ 830,000 | 200,000 | ||||||||||||||||||||||||||||
Private Placement Cost For Units Sold To Accredited Investors | $ 123,000 | $ 18,463 | ||||||||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.60 | $ 0.60 | ||||||||||||||||||||||||||||||
Class Of Warrant Or Right Grant Date Fair Value | $ 55,848 | $ 55,848 | ||||||||||||||||||||||||||||||
Percent Of Common Shares Available To Purchase With Purchase Of Common Share Of Stock | 37.50% | 37.50% | 37.50% | |||||||||||||||||||||||||||||
Board of Directors Chairman [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Payments For Rent Half Hour | $ 12,500 | |||||||||||||||||||||||||||||||
Exeeded Fair Value Of Furniture | 20,000 | |||||||||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Provisions | $ 500,000 | |||||||||||||||||||||||||||||||
Share Price Held In Escrow | 50.00% | |||||||||||||||||||||||||||||||
Professional Fees | $ 425,000 | |||||||||||||||||||||||||||||||
Effect on Future Earnings, Offset Amount | 158,000 | |||||||||||||||||||||||||||||||
Effect on Future Earnings, Amount | 267,000 | |||||||||||||||||||||||||||||||
Security Deposit | 48,000 | |||||||||||||||||||||||||||||||
Payments for Rent | 6,250 | |||||||||||||||||||||||||||||||
Stock and Warrants Issued During Period, Value, Preferred Stock and Warrants | $ 1,500,000 | |||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 500,000 | |||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 500,000 | 500,000 | ||||||||||||||||||||||||||||||
Proceeds from Issuance Initial Public Offering | $ 3,000,000 | |||||||||||||||||||||||||||||||
Common Stock, Value, Issued | 250,000 | |||||||||||||||||||||||||||||||
Escrow Deposit | $ 250,000 | |||||||||||||||||||||||||||||||
Executive Employee [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 117,500 | |||||||||||||||||||||||||||||||
Executive Employee [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 250,000 | |||||||||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.40 | |||||||||||||||||||||||||||||||
Series A Preferred Stock [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ 0.1754 | |||||||||||||||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 5.00% | |||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 175,000 | |||||||||||||||||||||||||||||||
Shares Issued, Price Per Share | $ 10 | |||||||||||||||||||||||||||||||
Proceeds from Issuance of Private Placement | $ 1,750,000 | |||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Beneficial Conversion Feature | $ 594,641 | |||||||||||||||||||||||||||||||
Cumulative Dividends | $ 58,733 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Net operating loss carry forwards | $ 6,373,434 | $ 4,983,000 |
Less valuation allowance | (6,373,434) | (4,983,000) |
Net deferred tax asset | $ 0 | $ 0 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Operating Loss Carryforwards | $ 18,745,343 | $ 14,657,000 |
OPTIONS (Details)
OPTIONS (Details) - $ / shares | 1 Months Ended | 12 Months Ended | ||||
Nov. 25, 2014 | Nov. 18, 2014 | Jul. 17, 2014 | Mar. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | ||||||
Exercised (in shares) | 30,000 | 20,000 | 75,000 | 100,000 | ||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | ||||||
Outstanding at beginning of the period (in shares) | 11,434,350 | 4,485,250 | ||||
Granted (in shares) | 8,278,880 | 7,549,100 | ||||
Exercised (in shares) | 0 | 205,000 | ||||
Forfeited (in shares) | 4,953,316 | 395,000 | ||||
Outstanding at the end of the period (in shares) | 14,759,914 | 11,434,350 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | ||||||
Outstanding at beginning of the period (in dollars per share) | $ 0.47 | $ 0.38 | ||||
Granted (in dollars per share) | 0.16 | 0.52 | ||||
Exercised (in dollars per share) | 0 | 0.34 | ||||
Forfeited (in dollars per share) | 0.44 | 0.50 | ||||
Outstanding at end of the period (in dollars per share) | $ 0.30 | $ 0.47 |
OPTIONS (Details 1)
OPTIONS (Details 1) - Employee Stock Option [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Average Exercise Price | $ 0.42 | $ 0.40 | |
Number of Shares | 8,374,294 | 5,635,250 | |
Remaining Average Contractual Life (in years) | 10 months 28 days | 3 years 9 months 14 days | |
Exercise Price times number of Shares | $ 2,854,392 | $ 2,246,313 | |
Weighted Average Exercise Price | $ 0.30 | $ 0.47 | $ 0.38 |
Intrinsic Value | $ 235,330 | $ 460,941 |
OPTIONS (Details Textual)
OPTIONS (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Compensation Liability, Current and Noncurrent | $ 513,003 | ||
Options | |||
Expected dividend yield (as a percent) | 0.00% | ||
Share based compensation expense | $ 823,478 | $ 1,445,992 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 14,759,914 | 11,434,350 | 4,485,250 |
Weighted Average Remaining Term | 3 years 7 months 10 days | 4 years 3 months 18 days | |
Outstanding at end of the period, Intrinsic Value (in dollars) | $ 0 | $ 283,408 | |
Deferred Compensation Liability, Current and Noncurrent | $ 406,157 | $ 1,220,410 | |
Options | Maximum | |||
Expected term | 3 years 3 months 4 days | ||
Expected volatility (as a percent) | 250.00% | ||
Risk-free interest rate (as a percent) | 1.83% | ||
Options | Minimum | |||
Expected term | 1 year 5 months 1 day | ||
Expected volatility (as a percent) | 100.00% | ||
Risk-free interest rate (as a percent) | 0.39% |
WARRANTS (Details)
WARRANTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of warrants | |||
Number of shares, beginning | 16,527,989 | 18,770,591 | |
Number of shares, granted | 28,913,020 | 9,506,205 | |
Number of shares, exercised | 109,855 | 11,748,807 | |
Number of shares, Forfeited | 3,054,545 | ||
Number of shares, ending | 42,276,609 | 16,527,989 | 18,770,591 |
Weighted average exercise price | |||
Weighted average exercise price, beginning (in dollars per share) | $ 0.46 | $ 0.35 | |
Weighted average exercise price, granted (in dollars per share) | $ / shares | 0.11 | 0.51 | |
Weighted average exercise price, exercised (in dollars per share) | 0.40 | 0.36 | |
Weighted average exercise price, Forfeited (in dollars per share) | 0.43 | ||
Weighted average exercise price, ending (in dollars per share) | $ 0.22 | $ 0.46 | $ 0.35 |
Weighted Average Remaining Term | |||
Wtd Avg. Remaining Term | 4 years 1 month 24 days | 3 years 8 months 8 days | 4 years 7 months 13 days |
Intrinsic Value | |||
Outstanding at beginning of the period | $ 309,821 | $ 416,000 | |
Outstanding at ending of the period | $ 1,167 | $ 309,821 | $ 416,000 |
WARRANTS (Details Textual)
WARRANTS (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Number of warrants | ||
Deferred Compensation Liability, Current and Noncurrent | $ 513,003 | |
Warrants | ||
Number of warrants | ||
Share based compensation expense | $ 510,436 | $ 131,517 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 100.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 102.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.29% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 1.71% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |
Deferred Compensation Liability, Current and Noncurrent | $ 106,852 | $ 207,190 |
Warrants | Minimum | ||
Number of warrants | ||
Expected term | 1 year 6 months | |
Warrants | Maximum | ||
Number of warrants | ||
Expected term | 5 years |
PERFORMANCE SHARE UNITS (Detail
PERFORMANCE SHARE UNITS (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Number of PSUs | ||
Number of shares, beginning | 16,527,989 | 18,770,591 |
Number of shares, Forfeited | 3,054,545 | |
Number of shares, ending | 42,276,609 | 16,527,989 |
Weighted Average, Grant Price | ||
Weighted average exercise price, beginning (in dollars per share) | $ 0.46 | $ 0.35 |
Weighted average exercise price, Forfeited (in dollars per share) | 0.43 | |
Weighted average exercise price, ending (in dollars per share) | $ 0.22 | $ 0.46 |
Performance Shares [Member] | ||
Number of PSUs | ||
Number of shares, beginning | 4,500,000 | |
Number of shares, Forfeited | 4,500,000 | |
Number of shares, ending | 0 | 4,500,000 |
Weighted Average, Grant Price | ||
Weighted average exercise price, beginning (in dollars per share) | $ 0.40 | |
Weighted average exercise price, Forfeited (in dollars per share) | 0.33 | |
Weighted average exercise price, ending (in dollars per share) | $ 0 | $ 0.40 |
Weighted Average Remaining Term | ||
Weighted Average Remaining Term, Forfeited | 0 years | |
Weighted Average Remaining Term, Outstanding | 0 years | 2 years |
PERFORMANCE SHARE UNITS (Deta52
PERFORMANCE SHARE UNITS (Details Textual) - USD ($) | Mar. 05, 2015 | Apr. 02, 2013 | Sep. 30, 2014 | Jan. 27, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Wtd Avg. Remaining Term | ||||||
Performance share unit agreement granted (in shares) | 28,913,020 | 9,506,205 | ||||
Deferred Compensation Liability, Current and Noncurrent | $ 513,003 | |||||
PSUs [Member] | ||||||
Wtd Avg. Remaining Term | ||||||
Performance share unit agreement granted (in shares) | 500,000 | |||||
Stock compensation expense related to the options and warrants | $ 266,500 | |||||
Share Unit Based Recovery Expense | $ (258,165) | |||||
PSUs [Member] | AIM | Mr. Arena | ||||||
Wtd Avg. Remaining Term | ||||||
Performance share unit agreement granted (in shares) | 3,000,000 | |||||
PSUs [Member] | Chief Executive Officer | ||||||
Wtd Avg. Remaining Term | ||||||
Performance share unit agreement granted (in shares) | 400,000 | 3,000,000 | ||||
PSUs [Member] | Officer | ||||||
Wtd Avg. Remaining Term | ||||||
Performance share unit agreement granted (in shares) | 300,000 | |||||
PSUs [Member] | Chief Operating Officer | ||||||
Wtd Avg. Remaining Term | ||||||
Performance share unit agreement granted (in shares) | 300,000 | |||||
Restricted Stock [Member] | AIM | Mr. Arena | ||||||
Wtd Avg. Remaining Term | ||||||
Number of options awarded | 500,000 |
CONCENTRATIONS (Details Textual
CONCENTRATIONS (Details Textual) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 56.30% | 77.00% |
Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 1.70% | 10.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 67.50% | 87.00% |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - shares | Feb. 12, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 28,913,020 | 9,506,205 | |
Vice President [Member] | Sales Revenue, Net [Member] | |||
Subsequent Event [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Description | On February 12, 2016, the Company modified the employment agreement for Sean Bradley to limit the number of option awards he can receive in lieu of $6,250 cash per quarter to 150,000 options per quarter. | ||
Board of Directors Chairman [Member] | Warrant [Member] | |||
Subsequent Event [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 500,000 |